By Anthony H. Sarmiento , CPA Journal Associate Editor

Participants in the annual publishing conference recently discussed the challenges facing media organizations in an uncertain business climate and amid regulations affecting all publicly traded companies after Enron.

Representatives of The New York Times, Barnes & Noble, AOL-TimeWarner and American Media addressed 145 attendees at the Nov. 13 conference, sponsored by the New York State Society of CPAs’ Publishing and Printing Committee.

Speakers discussed how the slumping economy, the recent wave of business scandals and war and terrorism have affected the publishing industry, as well as the ramifications of the Sarbanes-Oxley Act, and personal anecdotes about handling terrorist attacks.

Keynote speaker Janet L. Robinson, a senior vice president of The New York Times Company, decried the appalling lack of accountability among the leaders of some companies, and stressed the need for a culture of responsibility in any organization. According to Robinson, new regulation may be a step in the right direction if corporate leadership is to be held accountable for its financial practices.

Robinson said that now is an exciting time to be a CPA. She described the three pillars of financial success as revenue generation, expense control and financial reporting. Recent events have highlighted the importance of good financial reporting and the need to proactively monitor financial reporting at every level of an organization, she said.

“We believe in hiring financial experts who are courageous, in stepping up and speaking out,” Robinson said. Financial leaders should be strategic partners within any organization, she said, adding that this is the moment for accountants to really shine.

David J. Pecker, CEO and president of American Media Inc., discussed his company’s dubious distinction as the first to suffer a bioterrorist attack in the United States, when an employee was killed by anthrax last October, and the publisher’s corporate headquarters were rendered unusable.

Pecker told the attendees how the company worked through the crisis and managed to perform well over the past year, considering the attack’s impact and the poor marketplace. Although American Media never had planned for a terrorist attack, they had a contingency plan in place to deal with a hurricane disaster, which they were able to adapt to keep operations running.

All the terrorist events of last fall also underscored the importance of business continuity planning and the fragility of certain services that are taken for granted. Harold Ebbinghausen, president of Iron Mountain Off-Site Data Protection, noted the importance of quickly getting a business operational in order to have any chance to survive a disaster.

Last year’s anthrax scare exacerbated long-term problems that the U.S. Post Office is facing, such as a decline in the most profitable mail classes and an ever-expanding address network. Jim O’Brien, director of distribution and postal affairs for Time Inc., encouraged attendees to contact their local U.S. representative and actively support changes that will be necessary for postal reform.

Several speakers addressed the problems facing the publishing supply chain and retail environment.

“The industry is operating under a failed and unsustainable business model that must be replaced,” said Joel R. Anderson, chair of Anderson News Company, in making his point for greater efficiency and cost reductions.

Steve Burbridge, vice president of national accounts, Time Distribution Services, described the fierce competition between magazine publishers and beverage companies for the value space at the supermarket checkout.

The conference was topped by a debate over the requirements and implementation of the Sarbanes-Oxley Act during a panel discussion with committee members Joseph Graziano, Grant Thornton; Rudolph J. Santoro, Deloitte & Touche; John A. Rohan, Jr., Hearst Magazines; and Stuart P. Stoller, The New York Times Company. Conference attendees were split on the ultimate question of whether Sarbanes-Oxley would help prevent another Enron.

The conference was co-chaired by John F. Craven, Time Inc., and Steven Edelman, West Glen Communications. Any members interested in learning more about the Publishing and Printing Committee should contact Craven at jack_craven@timeinc.com.