The Year in Review: Hitting the Ground Running and Never Looking Back

By Jo Ann Golden

It’s hard to believe that my term as president of the New York State Society of CPAs is already coming to an end. Nearly 12 months ago, the board of directors and I hit the ground running.

We have sought to be aggressively proactive in all of our Society activities. We have taken the lead in reform. We have worked to make the Society even more responsive to the needs of its members. And we have tried to be a representative voice of our membership as we have actively participated in and attempted to steer inevitable dramatic legislative and regulatory change in the profession. After all, this is change that most likely will impact our profession in ways more far-reaching than the changes implemented in the 1930s with the establishment of the Securities and Exchange Commission. The Society has been ever-ready to respond and, together, we have been leaders in taking a “do-the-right-thing” approach.

We have looked inward. The board of directors has engaged in many deep and intense discussions of issues relevant to our profession and the Society. These discussions have led to meaningful action, including the appointment of the Ethics and Peer Review Task Force, headed by past President Brian Caswell, focusing on ethics and peer review requirements for our membership. A set of proposed changes in our own governance representing an equitable approach to member involvement has been developed under the Bylaws Revision Task Force, headed by Sharon Fierstein. These proposed changes, recommended by the board of directors, are described in the article on page 1. We have developed a sound budget under the guidance of Finance Committee Chair David A. Lifson—a budget that is objective-based and responds to the Society’s goals for the coming year. Indeed, it is projected that we will finish our year on budget.

We have reached out to give opportunities to those who are considering entrance to the profession through the expansion of our Career Opportunities in the Accounting Profession (COAP) program. Our 17 chapters have maintained a strong and vital role bringing an important grass-roots dimension to the Society. Statewide committee participation has increased, continuing to enhance our technical offerings. These are but a few of the changes this year that will improve our future programs and provide a basis for a strengthened member-driven Society.

As we all witnessed Enron and the myriad financial aftershocks, we were quick to recognize that crisis demands reform. And the Society has taken the lead on this matter. Our Legislative Task Force, under the chairmanship of Kevin McCoy, has worked diligently to promote a rational approach to the regulation of the profession by New York state. We have worked to promote changes in laws governing accountancy that have not been updated in nearly 50 years. And we continue to monitor proposed state legislation resulting from the cascading effect of recent new federal laws.

The task of responding to an array of proposed federal rules and regulatory requirements intended to be imposed upon our profession as a whole (with the obvious impact upon our clients’ businesses) has been daunting. As I leave my role as president, we are on the verge of great changes in the profession.

The Sarbanes-Oxley Act of 2002 and its complex implementation bring about changes in the structure of rule-making within our profession. The potential is far-reaching. For years the profession has been self-regulated. It has been the author, the initiator, if you will, of the rules governing the development of accounting and auditing guidance, rules, procedures and principles. Those rules have provided the basis upon which the hundreds of thousands of accountants in public and private practices present financial information and attest to its fairness. Those rules, largely developed by the profession in response to the needs of the public, have historically been accepted for use by the Securities and Exchange Commission (SEC) for public companies registered with the commission. These are the same rules accepted by all types of businesses, the concept being that a financial statement is a financial statement is a financial statement.

Under Sarbanes-Oxley, the responsibility of promulgating these rules will shift to the newly formed Public Company Accounting Oversight Board (PCAOB) and the SEC. All registrants filing with the board must follow the rules set by it. However, rules governing nonregistrants are not covered under the new federal laws.

Clearly, professional accounting societies are searching for their respective roles. Debates took place at breakout sessions at the spring 2003 American Institute of CPAs Council Meeting held in April in Washington—ironically, the very place where the new professional structure was legislated. Discussion focused on the AICPA’s and the profession’s role in determining rules for nonpublic companies.

My greatest fear is that we, as a profession, will try to promote two different sets of rules, further confusing an already perplexed public. The accounting crisis of the past two years emerged from accounting “practices” of certain companies that prevented the public from being able to see the true financial picture of these companies. Creating dual standards will only tend to confuse those for whom we are painting that financial picture. We must continue to look for the best ways to restore the public’s confidence in our profession, confidence that it had enjoyed for so many years, a confidence that seemingly has been whisked away in a moment.

As June 1 approaches, my sole regret is that my term as president of this society is coming to an end. This has been an incredible opportunity and experience for me. I have tried to provide the leadership that would guide the Society and the profession in the right direction. I have sought, along the way, continuous input from all of you, throughout the state, on the various issues that have confronted us. I have sought to make the Society more efficient and responsive to the needs and desires of its members. And I have encouraged New York to take the high road, to lead the way to reform in an era when reform is necessary if we are to maintain the public trust.

We have succeeded in these various goals, not so much as a result of my efforts, but through the work of a tremendously supportive, energetic and responsible Executive Committee and board, Society staff, and an interested membership. Our Executive Committee and board of directors have tirelessly worked through often controversial issues. They have demonstrated a true devotion to the profession and the NYSSCPA that could only have resulted in success.

None of our work, however, could have been accomplished without the support and assistance of a phenomenal staff. My year at the helm has provided me with a profound realization of the strength and depth, diversity and energy of the Society staff who work year-round at 530 Fifth Ave. and throughout the state, under the able and inspiring direction of Executive Director Lou Grumet. They, with the direction of the board, make it all happen. They are the constant, dedicated to the success of the Society. As the direction of the Society shifts course with the changes in administration, Lou and the staff provide the stability that keeps the ship afloat.

My partners and the staff at Dermody, Burke & Brown, CPA, PLLC, have graciously encouraged me to have this great opportunity. For that, I thank them.

Last, I want to express my gratitude to immediate past President Nancy Newman-Limata and President-Elect Jeff Hoops for their support, assistance and collaboration. Their willingness, indeed eagerness, to work with me to ensure the smooth transition between our respective terms as president has enabled the changes in leadership of the Society, with inevitable differences in style and views, to occur seamlessly, without interrupting the actions and activities of the board and the Society as a whole. This close working relationship lets me retire from this position with the confidence that Jeff will continue to steer us ably and enthusiastically in the right direction.

I am confident that the NYSSCPA will continue to be a strong force in leading our profession into its new future.

president@nysscpa.org