The
meeting was called to order at 9:20 A.M. Attendees
introduced themselves, and discussed their work with
the Society.
Introduction
Mr.
Arthur Bloom discussed some important points concerning
the budget process and reviewed items that were undertaken
by the previous committee including the Internal Audit
review.
Review
of the Budget for Fiscal Year ending May 31, 2006
Mr.
Bloom asked Mr. Alan Schmelkin to begin discussion
regarding the formulation of the budget and to lead
the committee through the budget handout. Mr. Schmelkin
reviewed the organizations’ Strategic Plan,
and explained how the budget tied into the plan. Mr.
Louis Grumet also talked about the Strategic Plan
and the budget as well as other initiatives that the
organization was undertaking. Mr. Schmelkin also clarified
how the various parts of the organization were represented
in the combined budget, specifically the Foundation
for Accounting Education. Mr. Schmelkin also discussed
how the office move had affected the budget.
Mr.
Bloom began discussion of the budget by reflecting
on the major component of the budget which is membership
income. Mr. Schmelkin reviewed the changes in membership,
dues structures, and fees. Discussion turned to the
upcoming upgrade of the organizations’ Great
Plains accounting system, including Mr. Grumet’s
request for new reporting capabilities of the system.
Mr.
Schmelkin began to lead the committee through the
budget by first concentrating on the Revenue summary.
Mr. Steve Edelman questioned the attrition of membership
and the amount of the proposed dues increase. Discussion
of this matter ensued. Mr. William Pape of the NYSSCPA
was asked to provide the committee with membership
information. In the meantime, Mr. Schmelkin continued
to review each line of the revenue budget.
Mr.
Schmelkin moved to the DEPTSUM sheet which showed
the expense budget on a summary level of all departments.
This sheet was followed by separate detail sheets
for each department. Mr. Schmelkin began reviewing
each detail sheet. Mr. Michael Bronstein asked if
there was anything in the budget that was inconsistent
with prior years. Both Mr. Grumet and Mr. Schmelkin
noted that the FAE budget was different due to the
move, and the conference space that can now be used
by FAE. At this point, Mr. Pape joined the meeting
to discuss the earlier questions regarding membership
dues.
Upon
completion of the membership dues issue, discussion
of the budget continued with Mr. Grumet explaining
the need for three new staff positions and its inclusion
in the budget (Tax Manager, Policy Relations Manager,
and Industry CPE Reachout). As the budget continued,
a question on the remaining Security Deposit, observed
on the attached December 31, 2004 financial statements,
was raised by members as to its effect on the budget.
Questions were raised regarding the actual and budget
amounts of investment income, as well as proposed
dues increase. The Committee was informed that they
would receive answers on both of these subjects, including
the effects of a 5% dues increase versus a 10% dues
increase. Mr. Grumet also advised the Committee that
the Peer Review budget would be revised to a break-even
budget. Mr. Schmelkin then concluded the budget review
by discussing the FAE Unrestricted budget.
Mr.
Bloom reviewed the “Strategic Plans Goal Budget”
and asked members to decide whether they wanted to
approve the budget containing a net deficit. As discussion
began on this, Mr. Bronstein requested that the budget
be reviewed in detail to see if anything could be
reduced without eliminating some of the new investments
in the budget that Mr. Grumet requested. In summary,
the staff would return at the next Finance Committee
meeting (January 28, 2005) with answers to the various
questions raised throughout the meeting as well as
budget revisions.
Adjournment
There
being no further business, a motion was made to adjourn
the meeting that was unanimously approved at 12:00
PM.
Respectfully
submitted,
David Haar, NYSSCPA staff
