March 2003

Executive Committee Approves Budget
‘Expenses Equal Revenues’ Marks Turning Point for Society

NEW YORK—The New York State Society of CPAs will likely be $200,000 “to the good” in the 2003-2004 fiscal year, marking a turning point in the Society’s financial health.

According to a proposed budget for the coming year, the Society will have $13.1 million in revenues that include a $200,000 profit.

Members of the NYSSCPA Finance Committee presented the proposed budget to the Executive Committee at its meeting in February.

Committee members who worked on the budget made careful predictions based on current conditions to forge what they said was a conservative estimate for the coming year’s budget.

“Over the last two years we’ve come up with a budget to sustain the Society for a long time,” Finance Committee Chair David A. Lifson said during his presentation to the Executive Committee. Lifson then provided a breakdown of the Society’s draft budget, illustrating the division of revenues among each of seven general areas, including education, member proficiency, governance, communications, networking and recruiting, and government relations.

Education programs will receive the largest bulk of the revenues next year, according to the Finance Committee’s report; they represent about 25 percent, or $4.3 million, of the entire budget. Almost $2 million is allocated for governance, $1.5 million for communications, $1.5 million for networking and recruiting, and the rest for government relations.

Lifson also provided a view of how member dues, which represent $7 million of total revenues, are divided up among various programs. Governance represents about 17 percent of member dues allocation, The CPA Journal 13 percent, committees 12 percent, chapters 10 percent.

Lifson praised the dedication of the small but “spirited” membership of the Finance Committee, which drew together the numbers, with NYSSCPA staff doing the “heavy lifting.”

In presentations to the committee, Lifson and staff members emphasized the conservative nature of their estimates. For example, the Foundation for Accounting Education went over costs line by line for 200 programs to determine expenses, making a cautious prediction based on average course attendance by location, Alan Schmelkin, director of FAE/Operations, reported. They projected revenues based on that number. FAE also predicted that attendance at conferences, which generate big revenue, would be similar to last year’s attendance. FAE predicts some revenue increase from its new in-house CPE program.

Executive committee members questioned what the chances of falling into deficit are.

“What are the cushions and what are the pitfalls?” committee member Raymond Nowicki asked.

The cushion, according to Executive Director Louis Grumet, took into account a conservative outlook for FAE growth, while a potential pitfall could be bringing in legal help in light of potential legislation brewing in Albany.

The budget presentation included plans from the Society department heads on program development for the 2004 fiscal year. Goals include expanding media contacts to position CPAs on substantial issues; efforts to increase advertising via the NYSSCPA website and The CPA Journal; providing CPE through the Journal; the possible expansion of the Society’s Career Opportunities in the Accounting Profession program, which reaches out to promising high school students; and increasing public relations, education and other programs at the chapter level.

The proposed budget will be presented to the board of directors for approval at its April meeting.