Message from the 2001-2002 NYSSCPA President

The financial statements presented in this edition of The Trusted Professional reflect a mixed year for the Society and its consolidated entities. While the Society’s operations were positive, the Foundation for Accounting Education (FAE) continued to struggle, with a $1,437,481 loss for the year, resulting in a total change in consolidated net assets amounting to an $895,729 loss.

The organization has taken numerous steps to address the unrestricted net-asset deficit. Last year, during the budgeting process for the 2002-2003 fiscal year, the board of directors and the trustees increased membership dues and reduced staff compensation by eliminating eight positions and decreasing the monies available for temporary staff and overtime. Five additional positions also were eliminated during the year.

The organization also reduced allocations to the Society’s 17 chapters by the cost savings created by including 13 chapters’ newsletters within The Trusted Professional. It reduced committee expenses by eliminating breakfasts and by holding all committee meetings on-site. For educational programs, less popular courses were eliminated and a seminar schedule based on prior-year attendance figures was created. In addition, the organization negotiated with vendors to avoid any material price increase and instituted a no-refund policy for anyone who cancels within two weeks of a scheduled seminar.

Our staff prepares the consolidated financial statements, which are then audited by an independent CPA firm. These consolidated financial statements, plus the most current tax form 990 for both the Society and FAE, currently are posted on our website at www.nysscpa.org, and can be accessed by clicking the About Us hyperlink and scrolling down the lefthand side of the page.

Our Audit Committee, composed of members of the board of directors, worked closely with staff from the Society and the auditing firm, Eisner LLP. In addition, there was a joint meeting of the Audit Committee and the Executive Committee to review and discuss a draft of the financial statements and the management letter. Following some changes recommended at that meeting, there was an extensive review and discussion of the financial statements and management letter at the September 2002 meeting of the board of directors.