NYSSCPA Conflict of Interest Policy Approved

NYSSCPA Conflict of Interest Policy Approved
To Affect All Volunteers and Employees

To improve governance procedures and oversight, the New York State Society of CPAs Board of Directors and the Foundation for Accounting Education Board of Trustees have unanimously approved a uniform conflict of interest policy.

The policy requires NYSSCPA volunteers to agree to notify the chairpersons or presidents they report to of any actual or potential conflicts of interest that have arisen pertaining to the volunteer’s Society-related activities. Similarly, by signing the policy’s disclosure statement employees agree to notify the executive director or the NYSSCPA president of any actual or potential conflicts of interest that have arisen pertaining to the Society. A person refusing to comply with the policy will not be permitted to serve as a volunteer or remain an employee.

A policy task force drafted the three-part policy. Chaired by President-Elect John J. Kearney and including Vice President Vincent J. Love, board member Nancy Kirby and former Vice President Stephen F. Langowski, the task force built on a foundation created by an earlier task force formed by immediate past President Jo Ann Golden, chaired by Langowski, and including former President Nancy Newman-Limata, former Vice President Ian M. Nelson and Kirby.

The policy’s first part identifies the individuals who are covered and defines several terms, including “conflict of interest.” The second part comprises two disclosure statements. And the third illustrates examples of conflicts meriting disclosure.

Regarding the definition of a conflict, the policy states, “An actual or potential Conflict of Interest occurs when a person identified in Group I or Group II is in a position to influence a decision that may result in a personal gain for that person or for a Related Party or Affiliated Organization (other than the Society) as a result of business dealings with the Society.” (Related party and affiliated organization are terms defined in the policy.)

Individuals expected to comply with the conflict of interest policy are divided into two groups. Group I includes chairpersons of NYSSCPA committees (other than those included in Group II), chapter executive board members and any other assemblies or groups included in Group I by action of the NYSSCPA or FAE governing body. To qualify to serve as a member of Group I, individuals are, among other things, required to annually complete and sign the NYSSCPA-board approved Group I Conflict of Interest Disclosure Statement.

Group II comprises the NYSSCPA board; FAE board; Political Action Committee board; Benevolent Fund board; NYSSCPA Audit Committee; NYSSCPA and FAE Finance Committee; FAE Scholarship Committee; NYSSCPA and FAE Investment committees; volunteers authorized to sign NYSSCPA or FAE checks; employees; and any other assemblies or groups included in Group II by action of the NYSSCPA or FAE governing body. To qualify to serve as a member of Group II, individuals are, among other things, required to annually complete and sign the NYSSCPA-board-approved Group II Conflict of Interest Disclosure Statement.

The two disclosure statements vary in the amount of disclosure required, with the Group II disclosure statement being much more extensive. However, both require acknowledgements that the signor has read and understood the policy.

The policy will be available on the Society’s website in the Governance section under “About Us.” The staff contact regarding the policy is the author, James A. Woehlke, who can be reached at jwoehlke@nysscpa.org.