The Trusted Professional

February 1999 Articles

Board Votes to Form PAC
The NYSSCPA board of directors voted unanimously on February 4 to form a political action committee, or PAC, to make financial contributions to state elected officials and candidates for office. (Article)

Board Finalizes UAA Provisions
The NYSSCPA board of directors voted on February 4 to adopt the experience licensure requirement as set forth in the Uniform Accountancy Act published jointly by the AICPA and National Association of State Boards of Accountancy. The board also voted not to include in the New York version of the UAA a provision that would permit "plain paper" statements, or financial statements that CPAs can provide for clients' use, that do not necessarily comply with technical professional standards. (Article)

Members to Vote on Bylaws
NYSSCPA members will soon receive a mail ballot on over 40 bylaws changes, as a result of a board of directors vote on February 4 that approved the changes. The proposals, the first revisions since 1992, address new membership categories, ethics rules, and various administrative issues. (Article)

President's Commentary
A leader is expected to lead. It is "Follow me," not "Follow me--you go first." I have been occupied with introducing our new executive director and shepherding the Uniform Accountancy Act along and have not the opportunity to think about the direction of my leadership. (Article)

Nominating Committee Proposes New Officers and Directors
The NYSSCPA Nominating Committee, chaired by Past President Andrew Capelli, recently announced its nominations for new Society officers and directors for the 19992000 term beginning June 1. (Article)

New Commissions Rule Proposed
The NYSSCPA board of directors approved on February 4 a membership ballot that proposes a new ethics Rule 503 on commissions and referral fees. The proposed rule makes clear that a Society member can accept commissions and referral fees so long as the member does not perform an audit, review, compilation, or an examination of prospective financial information for the client. The rule provides an exception for compilation clients if the report discloses a lack of independence. (Article)

Board Approves New Budget and Financial Model
The NYSSCPA board of directors approved at its February 4 meeting the budget for fiscal year 1999-2000, along with a new three-year financial model for the Society and FAE. The $9,162,700 budget contains the first membership dues increase in two years. (Article)

Views in the News With H. Carl McCall
(Article)

Pataki Unveils Budget Proposal Approval Process
Governor George E. Pataki presented his $72.66 billion state budget proposal for the 1999-2000 fiscal year on January 27, and requested that the state legislature submit its amendments promptly in order to enact a final budget by April 1. (Article)

Education Director Appointed
Frimette Kass-Shraibman has been appointed director of education services for the Foundation for Accounting Education. She will oversee the development and presentation of all continuing professional education courses including scheduling, planning and directing promotion, quality control, and financial and program administration. Kass-Shraibman comes to the FAE from the AICPA, where she was a manager in the professional development division. She worked with technical committees to identify membership needs for continuing education and to develop new courses. (Article)

Regulation of Public Accountancy in New York State
For more than 100 years, since 1896, the New York State Board of Regents has been responsible for the oversight of public accountancy in the state. Of the 38 professions regulated under Title VIII of education law, only medicine, dentistry, and veterinary medicine have a longer relationship with the Board of Regents. The statutory basis for the licensure of any of the "learned" professions is that the services the professional provides significantly affect the health, safety, or welfare of the public. There is no question that the public accountant, who has such a profound role in the state's economy and the financial well-being of its citizens, fits this description. (Article)

SEC Challenges ISB
In a January 7 letter from Lynn E. Turner, chief accountant of the Securities and Exchange Commission, to William T. Allen, chair of the Independence Standards Board, the SEC set forth its priorities and challenged the ISB to address a number of controversial issues. (Article)

Recommendations Proposed to Improve Audit Committees
The Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees released its report on February 8 that recommended ten steps for audit committees to improve the quality of financial reporting. The chairs of the New York Stock Exchange and the National Association of Securities Dealers formed the committee, which consists of executives from the business, financial, and accounting communities, at the request of the Securities and Exchange Commission. (Article)

Members Needed for Committee Service
Committee appointments for the 1999-2000 year beginning June 1 are now in the final stage though several committees still need additional active members. Participation on any one of the Society's many technical, administrative, or special industry committees offers members networking opportunities and the ability to share and exchange ideas among peers. (Article)

Who Should Be Teaching Our Future CPAs
Many CPAs reading this article were taught by the "giants" of the CPA profession: Stanley Tunick, Emanuel Saxe, H.A. Finney, Herbert Miller, to name just a few. These men practiced their profession, wrote articles and textbooks, taught, were active in their professional organizations, and conducted research. They were literate and articulate. They did it all. Each and every one were examples to us all. (Article)

New York Authorizes Charter Schools
New York became the thirty-third state to authorize the creation of charter schools when the legislature passed, and the governor approved, the New York Charter School Act of 1998 in December. (Article)

Events Calendar and Tax Forms Now on Society Website
The NYSSCPA's website, www.nysscpa.org, continues to evolve as helpful resources are added to make "surfing" a more productive and useful experience for the thousands of visitors (both members and nonmembers) the site receives each month. Recent additions include an online calendar of events and downloadable federal tax forms. (Article)

Presidents-Elect Communicate Common Concerns
The Big Nine--to some that phrase probably smacks of a football rivalry--but to certified public accountants, it represents the nine largest (by membership) CPA societies in the United States: California, Florida, Illinois, Michigan, New Jersey, New York (the largest of the group), Ohio, Pennsylvania, and Texas. The presidents-elect of the Big Nine had the opportunity to meet several times during the AICPA Council's fall meeting where it became obvious that the societies had similar concerns and goals, and the organizations could learn from one another. As a result, the presidents-elect agreed to continue the dialogue via conference calls throughout their current terms and their 1999-2000 terms as society presidents. (Article)

Accountant-Client Privilege: Opportunities and Limitations
The extension of confidentiality privilege to accountants, a provision included in the IRS Restructuring and Reform Act, protects communications between clients and their accountants, enrolled agents, and enrolled actuaries from disclosure in the same manner and with the same responsibilities as the attorney-client privilege. Accordingly, a refresher on those responsibilities is important for CPAs to understand what is and is not protected. (Article)

Ethics and Regulations Q&As
(Article)

Nursing Homes Face New Medicare Reimbursement Methods
Beginning January 1, most skilled nursing facilities (SNFs) in New York needed to alter their billing methods for services provided under Medicare Part A to address changes in Medicare's reimbursement policy. (Article)

Not-for-Profit Committee Addresses Endowment Appreciation
The NYSSCPA Not-for-Profit Organizations Committee, chaired by Michael L. McNee, recently formed a subcommittee to address the classification of appreciation on endowment funds. The committee acted in response to an article in the Association of the Bar of the City of New York's The Record that presented the bar's Nonprofit Organizations Committee's opinion that, based upon its interpretation of the Uniform Management of Institutional Funds Act (UMIFA) and New York state law, appreciation on endowment funds should always be reported as temporarily restricted. (Article)

Not-for-Profit Conference Attracts 500
Approximately 500 people attended the 21st annual NYSSCPA Not-for-Profit Conference, held on January 20 in Rochester and on January 27 in New York City, to hear updates on accounting standards, OMB A-133, fringe benefit and pension plans, technology, internet uses, taxes, and legal issues. (Article)

SEC Enforcement Chief Accountant Warns About Accounting Abuses
Walter P. Schuetze, CPA, chief accountant of the Securities and Exchange Commission's enforcement division, echoed the SEC's recent criticisms of controversial accounting methods in his speech to more than 150 attendees at the Foundation for Accounting Education's SEC/FASB Conference, held December 1 at the New York Sheraton Hotel and Towers. (Article)

Congratulations to All on November CPA Exam
The NYSSCPA congratulates individuals who were recently notified they passed the November CPA exam and encourages all new CPAs to become members. The Society's affiliate organization, the New York State Association of CPA Candidates, provides benefits to help those who did not yet pass the exam. The NYSSCPA welcomes to the CPA profession those who passed the exam and have met the two-year work experience requirement, and invites them to join the ranks of more than 32,000 Society members. Those who passed the exam but have not yet completed the experience requirement may join as associate members. (Article)

Society Expands Speakers Bureau
The NYSSCPA has expanded both its Excellence in Accounting Scholarship program and its speakers bureau in an effort to provide college students with more resources and information about entering the accounting profession. (Article)

Suffolk Young CPAs Collect Toys for Tots
The NYSSCPA Suffolk Chapter's Young CPAs Committee held its fourth annual "Toys for Tots" holiday toy drive in December and collected over 1,000 presents for needy children. (Article)

Nassau Young CPAs Network on Cruise
(Article)

Correction
(Article)

Candidates' Holiday Party Attracts Accounting Leaders
At the CPA Candidates Association's holiday party, held December 22 at the NYSSCPA office, Candidates members had the opportunity to meet former mentors, officers, and advisors of the Association, including Beverley Sibblies, Joseph Schachter (Nassau), Dena Williams, Marc Haynes, and Sandra Scope, as well as leaders of the CPA profession including Stuart Kessler (Westchester), immediate past chair of the AICPA and a former NYSSCPA president, and Louis Grumet, NYSSCPA executive director. (Article)

Buffalo Young CPAs and Candidates Host Charity Event
The NYSSCPA Buffalo Chapter's Young CPAs Committee and the local CPA Candidates Association chapter hosted a Thanksgiving Day Food Drive on November 21 to benefit the Salvation Army and Catholic Charities of Buffalo. Members of both groups also participated in a gift-wrapping event on December 17 to benefit Parents Anonymous. (Article)

Candidates Event to Spotlight Vision Project
(Article)

New Show Offers the Latest in Accounting and Technology
CPAs can learn about up-to-date developments in accounting, tax, finance, and technology trends from leading specialists in these fields at the new 1999 CPAs' Finance, Business and Technology Show & Conference. The NYSSCPA/FAE show, to take place on May 25-27 at the Jacob K. Javits Convention Center in New York City, also showcases the latest products from vendors in these areas. (Article)

COAP Holds Annual Holiday Party
Forty alumni of Career Opportunities in the Accounting Profession (COAP) attended the program's annual holiday party at PricewaterhouseCoopers LLP on December 28. COAP, sponsored by the NYSSCPA, FAE, academia, and the profession, is a college summer residency program that exposes high school minority students to accounting careers. (Article)

Community Affairs Committee Holds Seminar for Nonprofits
More than 25 nonprofit organizations attended the NYSSCPA Community Affairs Committee's annual educational seminar to hear specialists in accounting, tax, and technology offer tips on how to facilitate their operation. The event took place December 15 at the offices of American Express Tax and Business Services of New York. (Article)

Arbitration Association Updates Society Committee
Agnes J. Wilson, Esq., New York City regional vice president of the American Arbitration Association, was guest speaker at the December meeting of the NYSSCPA Arbitration and Mediation Committee. Since it is Society policy to recommend using the AAA in disputes involving CPAs and clients, the committee wanted to learn more about the association's procedures. (Article)

SOP Proposed on Accounting for Discounts Related to Credit Quality
The Accounting Standards Executive Committee recently issued a proposed SOP, Accounting for Discounts Related to Credit Quality, which presents accounting for purchase discounts on certain loans and securities. Comments on the exposure draft are due by April 29, 1999. (Article)

GEICO Offers Tips to Drive Down Insurance Costs
NYSSCPA members can realize significant savings on auto insurance by following a few tips from GEICO Direct, the Society-sponsored carrier. (Article)

GASB Rules on Nonexchange Transactions
The Governmental Accounting Standards Board recently issued Statement 33, which specifies the accounting and reporting for "nonexchange" transactions involving financial or capital resources, i.e., transactions where the government gives or receives value without directly receiving or giving equal value in exchange. This includes most taxes, grants, and donations. (Article)

GAO Report Shows Success of IRS Problem Solving Days
A November Government Accounting Office report, prepared at the request of Senate Finance Committee Chair William Roth, illustrates the success of the Internal Revenue Service's Problem Solving Days (PSDs), which the IRS instituted partly in response to the 1997 congressional oversight hearings. (Article)

Airborne Express Delivers for Members During Tax Season
As tax season moves into high gear, members can once again take advantage of Airborne Express, which provides discounted express delivery services at savings as high as 42 percent per shipment. Last tax season, members sent more than 17,000 packages with Airborne Express and collectively saved more than $170,000 in shipment costs. (Article)

FASB Issues Second Edition of Statement 125 Report
The Financial Accounting Standards Board recently published a second edition of a special report that addresses most frequently asked questions about Statement 125, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. (Article)

Tax Season Reminder on Alimony
(Article)

Exposure Drafts Outstanding as of January 1,1999
(Article)

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