By Kim Patterson, Industry Member Relations Coordinator

The New York State Society of CPAs’ Executive Director Louis Grumet asked members of the Chief Financial Officers Committee to comment on proposed state legislation that is likely to apply certain parts of the Sarbanes-Oxley Act and could have a specific impact on members in industry.

Grumet posed the question as a guest speaker to the committee at its Jan. 29 meeting at the Society’s offices. The committee asked Grumet to give a legislative update on what is taking place in Albany in regard to policy for the CPA profession and its effects on industry members, especially in the not-for-profit sector.

During his update, Grumet referred to New York State Attorney General Eliot Spitzer’s keynote address at the annual NYSSCPA Nonprofit Conference in January. Spitzer said he believes certain parts of the Sarbanes-Oxley Act are important to ensure a system of checks and balances, and that he would like to see tougher governing rules.

Among other governance rules, Spitzer has proposed that not-for-profit entities be required to have financial statements certified by executive directors, and have independent audit committees.

Grumet asked members of the CFO Committee to comment on Spitzer’s suggestions and other proposed regulations coming out of Albany, specifically seeking comments about the estimated impact of such changes on the profession. This includes a proposal to require all CPAs in industry to take CPE. Grumet asked members of the committee to devise a list of courses or curriculum the Foundation for Accounting Education should offer to members in industry, considering that FAE is the largest CPE provider in the state.

Serious talks involving the Society and the legislature are likely to take place, according to Grumet, who asked that a representative from the committee knowledgeable in Yellow Book standards assist the Society in the coming months.