February 2001

Industry Profile

Julie L. Floch is Eisner & Co.’s director of not-for-profit services and is the partner responsible for coordinating the planning and administration of engagements in the firm’s not-for-profit practice. Floch is experienced with the application of federal and state tax laws as they relate to not-for-profit entities, as well as with government auditing standards and the requirements of federal regulations relating to clients that receive government funding.

Floch’s background includes personal financial planning and a variety of commercial enterprises. She recently has written articles for the CPA Journal, BAC Talk, and Journal for Nonprofit Management and is participating in the most recent annual update of the not-for-profit chapter in the Attorney’s Handbook of Accounting, Auditing, and Financial Reporting.

Q: How long have you worked at Eisner & Company?

A: Eleven years.

Q: What industry is your company most closely associated with?

A: We are a full-service accounting and consulting firm and serve a wide range of industries.

Q: What are your primary functions and responsibilities?

A: I am responsible for the oversight of our not-for-profit practice.

Q: What are the biggest differences between your primary work-related concerns and the work-related concerns of CPAs who belong to other industries or public practices?

A: Obviously, my not-for-profit clients don’t have SEC or, for the most part, tax-related issues. But they still operate in a strong regulatory environment, particularly if they receive federal or state funds.

Q: What are the similarities?

A: As a practical matter, the day-to-day accounting and reporting issues don’t differ much among commercial and not-for-profit enterprises.

Q: With respect to your industry and the accounting work you conduct there, what are the most significant developments to take place over the last five years?

A: There have been some important FASB and AICPA pronouncements that have significantly changed some of the basic not-for-profit accounting and reporting concepts and procedures, and there continues to be government oversight on a variety of levels.

Q: Do you consider these developments to be reflective of broader developments that have occurred in the accounting profession?

A: Yes. While the specifics have to be adapted industry-by-industry and organization-by-organization, commercial and not-for-profit entities—and their independent accountants—share common goals and concerns.

Q: What are some of your core objectives for the coming year?

A: To continue to serve my clients, keep my practice growing, and develop my staff.

Q: For the long term, what are some of your biggest challenges?

A: To “grow the practice” and remain profitable within the context of the reduced fee structures that are standard in this segment of our society. And, of course, to attract and maintain staff.

Q: Do you expect accountants outside your industry to face similar sorts of challenges?

A: Yes, we’re all in the same boat.

Q: With respect to the entire profession, what are the advantages of working in your industry? Conversely, what are the disadvantages?

A: I don’t think of serving a not-for-profit client as being any different than assisting a commercial company. After all, our profession is about helping people and organizations reach a number of different goals. As for me, I am privileged to be associated first hand with people and organizations that are dedicated to addressing many of the important issues of our society—preserving the environment, curing disease, helping the disadvantaged, educating our children, tending to people’s spiritual needs. That’s a very rewarding aspect of our practice.

Q: How do the major issues currently surrounding the entire accounting profession affect your work? If they don’t affect you right now, will they in the future?

A: Ultimately, they affect all CPAs, regardless of where they work. I don’t think they are industry-focused.

Q: Do you believe public practice accountants have an accurate understanding of the work you perform? If not, why?

A: Not-for-profit accounting is just one of many specialty areas, and a CPA certainly has the ability to work in this discipline, if he or she has the interest and is willing to prepare for its unique challenges.

Q: Do you believe the Society adequately represents your interests? If not, what could be done to make sure you receive fair representation?

A: Yes. Being a not-for-profit organization itself, the Society certainly appreciates the not-for-profit section and dedicates substantial resources to it.

Q: Overall, have you enjoyed working for an industry? Why or why not?