NYSSCPA Board Approves Office Relocation
Also Addresses Bylaws, FAE Expansion and AICPA Governance

By Joanne S. Barry, Director, Communications Division

NEW YORK—The board of directors of the New York State Society of CPAs voted unanimously on July 15 to approve the recommendation of the Real Estate Task Force to relocate the Society’s offices. The current lease expires in October 2004. The board also authorized the execution of defined financial and legal matters related to the move.

The board approved the site based on extensive work by the task force, including an analysis of current and future office space needs; an evaluation of partnering with colleges and universities as possible sites for Foundation for Accounting Education classrooms and conference space; and evaluation of 11 potential office sites. The board also received extensive financial data and the terms and conditions for the property recommended by the task force.

Chaired by past society president Steve Baum, the task force launched in 2001 when it began to evaluate the real estate market. Members include Robert Demmett, Neville Grusd, Alan Hoffman, NYSSCPA President Jeffrey Hoops, Don Kiamie, Elliot Lesser and Robert Reitman. The task force also advised the board on securing GVA Williams as the Society’s broker in June 2002.

“Since that time all real estate activities have occurred in the context of two key drivers: a market that until recently had not yet seemed ready to bottom out and the Society’s current lease that runs until Oct. 31, 2004,” Baum said. “These factors prompted us to aggressively undertake the project and seize any advantage that became available while also allowing enough time to evaluate, fully, all options offered by the market.”

Finding the Real (Estate) Deal

The first phase of the analysis began with a tour of 11 properties, all located between 26th Street and 45th Street in Manhattan. Concurrently, the Society submitted a Request for Proposal (RFP) to its current landlord. During the Society’s strategic planning process, the leadership had reinforced the importance of the headquarters’ office being accessible to members.

Next, the task force authorized a search for options in which the Society would unbundle its operations and relocate back office, reproduction and classrooms to a lower-cost environment within close proximity of the front office operations. Options explored included using university classroom space. Ultimately, this space could not be made available on an ongoing basis or within reasonable cost.

Space planning professionals analyzed current work tasks and interrelationships among the various departments to determine adjacency requirements as well as efficient layout possibilities. Following a recommendation of the task force, the board authorized retaining an architect to work with Williams and staff in identifying a best fit for the Society office layout.

“The space we have recommended and that the board has approved is being vacated by another professional society,” Baum said. “They carry out virtually the same types of programs and activities on behalf of their members as we do. In fact, one of the most attractive aspects of this entire transaction results from the Society’s ability to move in to one entire floor of the existing office space with only a trivial amount of construction.”

He added that space on an adjacent floor for FAE classrooms can be configured to accommodate groups of up to 150 registrants. This will allow almost 20 conferences a year to be brought in-house, saving hotel, meal and rental expenses.
The board authorized the negotiation of financial aspects of the deal, engaging a real estate attorney, entering into a lease (in consultation with the task force) and applying funds appropriately from the relocation reserve established by the board several years ago.

Governance at Home and Abroad

FAE President Jo Ann Golden reported that the Society trustees would be increasing their activities to address additional aspects of the FAE scope defined in its incorporation papers. These include engaging in accounting research, developing joint programs with other institutions and disciplines, establishing relations with educators, and encouraging and publishing accountancy books, among other things. She stated that since the FAE board is a small group, it will be reaching out to other Society membership to help in this expansion.

The board also addressed a motion that the Society communicate to the American Institute of CPAs’ Board of Directors the recommendation that Barry Melancon should be asked to resign his position as AICPA president. After much discussion, the motion was postponed until the September board meeting and it was agreed that President Hoops invite AICPA Chairman Bill Ezzell, along with his successor, to address the board in September to discuss AICPA governance issues.