Finance
Committee Meeting Minutes
The
meeting was called to order at 9:10 AM. David A. Lifson expressed
his appreciation for the commitment demonstrated by the
members.
APPROVAL
OF MINUTES - The minutes of the January 9, 2002 Finance
Committee meeting were unanimously approved.
UPDATE
ON FINANCIAL ACTIVITIES - It was observed by Jo Ann
Golden that the Foundation for Accounting Education (FAE)
does not have a Finance Committee. Lou Grumet reiterated
the operational differences between FAE and the Society.
It was noted that the mission and strategic focus of both
entities are entwined, and should be coordinated in a logical
manner. The Committee agreed in principal to recommend Nancy
Newman-Limata's suggestion for the formation of a joint
Finance Committee to review financial activities on a consolidated
basis.
UPDATE
ON 2002 – 2003 BUDGET - The Committee noted that education
is a vital service to its members, and agreed that FAE must
find better tools to provide that service. Both the Society
and FAE need to identify new revenue streams in order to
meet member needs.
PRESENTATION
OF BUDGET ALTERNATIVES - During the Finance Committee
meeting on Wednesday, January 9, 2002, the Committee asked
Mr. Grumet to meet with department heads and ask them to
identify further budget savings. Mr. Grumet told the Committee
that six staff positions had been eliminated. The annual
savings will total $250,000 in the next budget year. The
Society has eliminated eleven positions since June 2001.
Mr. Grumet also stated there are discussions being held
with other societies to offer joint conferences and to sell
the CPA Journal to their members. In addition, the
Society will closely review the activities of all committees
and recommend the elimination of inactive committees.
REVIEW
OF FAE OPERATIONS - Gerard Sokolski stressed the need
to examine FAE without any preconceived conclusions. The
negative impact of switching from the POP to the VIP discount
plan last year was extensively discussed. After a lively
discussion concerning the appropriateness and potential
levels of Society support to FAE, the Committee informally
agreed to recommend that the Society fund the FAE budget
deficit by approximately $300,000, based on a contribution
of about $10 of each member’s annual dues. The Committee
also requested that Nancy Newman-Limata, Lynn Chambers,
Alan Schmelkin, and Gerard Sokolski be directly involved
in preparing the FAE budget.
DUES
ANALYSIS - The Committee observed that membership dues
were increased by $5 per dues class in 2001. The Committee
believes that the Society must increase membership dues
for next year, and approved the rates as presented. The
Committee reaffirmed Kevin McCoy's suggestion made on January
9th that a 6% reserve of total billings should
be set aside for nonpayment. The balance of the dues billed
will be recognized as revenue equally throughout the year,
and adjusted each quarter to reflect actual collections.
APPROVAL
OF THE 2002 BUDGET – After considerable discussion and
deliberation, Mr. Lifson called for the adoption of the
revised 2002 - 2003 budget, as presented by Staff to the
Committee for consideration, including the comments and
revisions agreed to on January 18. Howard Weiner made the
motion, which was seconded by John Kearney, and the budget
was unanimously approved.
There
being no further business, the meeting adjourned at 2:30
PM.
Respectfully
Submitted,
Mondy
S. Gold
Approved
March 30, 2002
