July 1999 Issue

Editor's Note: This is the first of a monthly column that features submissions from a different chapter president each month. Its purpose is to update Society members about each chapter's activities.

A Chapter in History and Innovation--Buffalo

By Raymond M. Nowicki, Buffalo Chapter president

Buffalo. The first images one gets are spicy chicken wings, mountains of snow, football and hockey teams--not CPAs. Yet Buffalo is a place where the trusted professional has strong, old roots. Buffalo also has been an innovator of new concepts and ideas dealing with the profession.

A Little History

The Buffalo Chapter of the NYSSCPA has been an important participant in the evolution of the accounting profession since its official charter on February 5, 1925. While the chapter is 75 years old, the origin of the CPA in America traces back to the colonial period. Men with the title of chartered accountant came to prerevolutionary America to perform independent audits on American businesses for their parent companies in England. Often these men would stay and open American offices, and by this method accounting was introduced to North America. After the Revolution, the royal charter, which regulated accountants, was voided and for approximately 100 years American accountants were on their own.

In 1873 the Buffalo business directory lists an accountant, James A. Hamilton of 30 North William Street. In 1880 he is joined in the directory by Francis Rowe, whose address is given as the Thomas Hotel. By 1893 approximately 25 individuals or firms are listed. The New York State Legislature passed the first certified public accounting law in 1896. The following year the Buffalo directory listed three men as CPAs--Walter C. Cowles, Hamilton, and William G. Mowatt. The passage of a federal income tax in 1913 and the expansion of both business and taxes during the First World War increased demand for CPAs. Responding to businesses' needs, 12 firms can be found in the directory between 1917 and 1925.

In 1923, 10 Buffalo members of the NYSSCPA began meeting informally to discuss mutual technical problems. Because of the great inconvenience of traveling to New York City for meetings and the increasing local demand for information, the members decided to request permission to form a Buffalo Chapter.

The Society had no provision in its charter to authorize the creation of chapters. At that time, however, the Society amended its charter and NYSSCPA Secretary James F. Ferrell notified Luther K. Watkins on June 30, 1924, that Buffalo was free to organize its own chapter. Formal application to the Society was made on January 6, 1925, and approved by that body on February 5.

From the beginning, the Buffalo Chapter has served as a model for other local chapters in the state such as Rochester, Syracuse, and Albany, which, following Buffalo's example, organized locally. The first of the annual regional chapter conferences in Skaneateles, N.Y., took place in 1934. The Buffalo Chapter grew in 1941 to include the counties of Cattaragus, Chautauqua, Erie, Genesee, Niagara, Orleans, and Wyoming. Many Buffalo area members were appointed to NYSSCPA committees or elected to the board of directors and other Society offices over the years. A particular honor was bestowed upon Warren B. Cutting, who was elected president of the Society for 1964­65, thereby becoming the first member from an upstate chapter elected to this office. Cutting, who is now 97, is believed to be the oldest (or second oldest, depending on who you ask) living past president of the NYSSCPA. His contributions to the profession are known throughout the state.

Membership steadily increased as the achievements of the chapter grew. From its 13 original members, the Buffalo Chapter grew to 137 by 1950, 293 by 1964, and 470 by 1974. It now stands at approximately 1,400.

The Innovation

For the past 75 years, through the Buffalo Chapter, CPAs have helped develop and further the accounting profession through quality CPE sessions and social events.

In today's world, "networking" is the buzzword to denote any activity that attracts members to meetings. We constantly strive to enlist professionals such as bankers and attorneys as a draw to strengthen attendance. In 1954, partly as a result of a major tax law overhaul, the Buffalo Chapter joined with the Erie County Bar Association and the State University of New York at Buffalo to present the nuances of the 1954 Tax Code. The program has continued for over 44 years, and draws 300 people or more. Its profits traditionally have been reinvested in the Society, as a win­win situation.

Buffalo became the home of "mobile CPE" in 1997, with the advent of dinner and study aboard the Niagara Clipper, a pleasure boat that sails along the Niagara River. The tradition then expanded in 1998 when a busload of CPAs studied the intricacies of management fraud while the vehicle rambled toward an afternoon of fun and games at Turning Stone Casino and Resort in Oneida, N.Y. If anything, the Buffalo Chapter knows how to have a good time.

True innovation sometimes requires us to abandon "traditions," to adjust to changing times. Such was the case when the chapter held its final annual officers dinner dance in February 1998. Another canceled long-term event was the annual joint meeting with the chartered accountants from Ontario, Canada. In both cases, the leadership recognized that dwindling attendance, fostered by "workload compression" and family duties, was sufficient cause to gently terminate these traditions.

On the political front Buffalo, along with the Westchester and Mid-Hudson chapters, lobbied the NYSSCPA board on certain issues under the UAA. Meetings recently took place in Albany and Vermont, and this was politically significant for two reasons. First, such a challenge to a board position had never been allowed in over 20 years. Yet, the persistence of the chapter leadership, coupled with an understanding and open board, led to a meaningful dialogue. Second, it was the first time the chapter presidents had worked together as a team, through use of the Internet, faxes, and conference calls. Speaking as the Buffalo Chapter president, I want to thank my fellow chapter presidents for working with us. We look forward to working together on other issues.

Where Do We Go from Here?

Initial discussions with Buffalo Chapter leaders tell me that Buffalo has a bright and promising future in support of the profession. Our Young CPAs Committee is rejuvenating the chapter with new ideas, such as community food drives during Thanksgiving and the old reliable "after-hours" networking party. The Technology Committee is looking to link members through the Internet, following suggestions by NYSSCPA past President George T. Foundotos. The Education and One-on-One committees are planning more "early intervention" with grade school and high school students to create more awareness of the profession. CPE Chair Bob Colson is working with Tax, A & A, Not-for-Profit, and other committees to develop more and cost-effective CPE, in cooperation with FAE.

Finally, combining the best of all of the above ideas, I would like to present a novel challenge to any chapter president (Rochester, Syracuse, Utica, Southern Tier) who is no farther than a three-hour drive from Corning, N.Y. Corning is the home of Corning Glass Works, and centrally located. I propose a Corning-bound CPE bus trip, culminating in three hours of shopping or an interchapter game of softball. As we say in Buffalo, "Are any of yooze guys interested?" *