| Mr.
Bloom briefly summarized the process by which the Finance
Committee evaluated firms to conduct a review of NYSSCPA
and FAE internal controls.
Mr.
Bloom stated that in the first week of November, 2003, a
solicitation notice was posted on the website, e-mailed
to all statewide as well as chapter-based committee members,
e-mailed to all chapters’ leadership, and submitted
for publication in the December issue of The Trusted
Professional. In response, 28 firms requested a complete
copy of the solicitation and proposal requirements, and
six replied by the January 16, 2004 deadline.
Mr.
Bloom then noted that the Society’s Finance Committee
discussed the proposals and peer reviews at its January
21 meeting, and selected the following three firms for an
in-person interview: 1) Reminick & Aarons; 2) Loeb &
Troper; and 3) McGladrey & Pullen, LLP.
Mr.
Bloom reported that that after careful deliberation, the
Finance Committee recommended that the Executive Committee
approve the selection of the firm Loeb & Troper, which
specialized in non-profit organizations.
A discussion
ensued regarding the large disparity in bids for the engagement
and the Finance Committee’s due diligence investigation
of each firm. Mr. Bloom noted that the Finance Committee
reviewed such documentation as peer review reports and had
asked for clarifications with respect to each firm’s
proposals.
One
member asked if the Finance Committee were aware of any
potential conflicts-of-interest that existed in selecting
Loeb & Troper, and Mr. Bloom responded in the negative.
In response
to a question regarding payment of the fee, Mr. Grumet noted
that there was enough of a budget surplus that the fee could
be paid from general Society funds.
Another
member asked if the Executive Committee had directed the
Finance Committee to obtain approval of its recommendation
by the Audit Committee. The committee determined that they
had not so directed the Finance Committee.
Mr.
Riley moved to approve the recommendation of the Finance
Committee to engage the firm Loeb & Troper for a Society
and FAE internal controls engagement, and further, to authorize
and direct Treasurer Arthur Bloom to sign the engagement
letter. Ms. Napoleon-Hudson seconded the motion. The motion
passed unanimously.
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