Minutes

The meeting was called to order at 9:10 AM.

INTRODUCTION OF MEMBERS - The chair of the Finance Committee, David A. Lifson, asked the attendees to introduce themselves, including their participation in Society activities over the years.

APPROVAL OF MINUTES - The minutes of the previous meeting held on March 20, 2001, were reviewed by members. After brief discussion, Nadine Lee made the motion to approve the minutes. Sandra Napoleon-Hudson seconded the motion, and the minutes were approved unanimously.

REVIEW OF FINANCIAL STATEMENTS - Mr. Lifson informed the committee that he has been working with Lynn Chambers to expand the notes that explain variances and operating results in order to present a monthly financial package that is more easily understood. The members then discussed the following items connected to the August 31, 2001 financial presentation:

Mr. Lifson said that the role of a finance committee is to provide financial oversight in terms of the reasonableness of the modalities used in preparing the annual budget and related financial statements. Ms. Chambers presented a cash flow history for the period of January 1999 through August 2001.

Ms. Newman-Limata asked about the SSNI investment, and Ms. Chambers said it was expensed in June of the current year.

Chapters: Ms. Napoleon-Hudson asked whether the chapters are financially viable. Ms. Chambers replied that two chapters have sufficient reserve funds, and will not receive any quarterly allocations this year, and Mr. Grumet also responded that the Manhattan Chapter appears to be successful.

Jo Ann Golden stated that the concept of strategic planning is a continuous process and therefore emphasized the need for the integration of ideas between the various committees. Mr. Grumet gave an overview of the major programs. After an extensive discussion, the committee once more came to the conclusion that funding of FAE programs is a fundamental concern.

Website: Kevin McCoy inquired about the nature of revenue generated through the Website. Mr. Grumet explained to the committee that the focus has been on CPA Journal advertising revenue in the last several months and promised to address the Website advertising revenue issue with staff.

Peer Review: Ms. Newman-Limata questioned the current method of billing annually. Ms. Chambers said that the Peer Review Committee had requested the monthly billing be discontinued, as members were confused by the change. This is an annual fee for membership in the peer review program, not a charge for the reviews themselves.

Annual Conference: Ms. Napoleon-Hudson expressed concern about the amount of money spent on the first annual leadership conference. Mr. Grumet informed the committee that the Society would be responsible for only committee chairs, chapter leadership, and past presidents. Ms. Newman-Limata indicated that management has moved the leadership conference to July in an effort to improve attendance.

INVESTMENT SUB-COMMITTEE - The investment committee is made of members from the Society's Finance Committee, and meets in conjunction with the FAE Trustee's appointees to their investment committee. Mr. Lifson asked the following to serve: Frank Aquilino, John Kearney, Nadine Lee, Sandra Napoleon-Hudson, and Ms. Newman-Limata. Ms. Chambers will schedule an investment committee meeting in October that will include representatives from Sanford Bernstein and Bank of New York.

CREDIT SUB-COMMITTEE - The credit committee consists of members from the Society's Finance Committee. Mr. Lifson asked the following to serve: Katharine Doran, Jo Ann Golden, Neville Grusd, Steve Langowski, Kevin McCoy, Gerry Sokolski, and Howard Weiner

FINANCE COMMITTEE - The committee's action plan has not been updated since the publication of the 1995/96 Scope Book. Mr. Lifson distributed copies of the plan to all members and asked them to review the duties of the committee and forward suggestions in writing to him within 10 days if possible, but not later than October 31. All comments will be considered and distributed prior to the next meeting, at which time the CAP needs to be finalized. Mr. Grumet reviewed the responsibilities of the Treasurer, noting that a finance committee usually reports to the Treasurer. He asked everyone to keep that standard in mind as they reviewed the action plan. Members expressed concern about the existing nature of the chain of command, and noted that the committee reports to the Board of Directors. Ms. Newman-Limata expressed the need to develop a unified approach to the management of the Society.

GENERAL - Mr. Lifson asked Ms. Chambers to send copies of the committee action plan to members who were unable to attend the meeting. Mr. Grumet informed the committee that meeting minutes would be posted on the NYSSCPA Website after they have been approved. The next meeting is scheduled for January 9, 2002.

There being no further business, the meeting adjourned at 10:30 AM.

Respectfully Submitted,

Mondy S. Gold Approved
1/9/02