NYSSCPA Board Looks at Policies, Strategic Planning

By Simon Eskow

The New York State Society of CPAs Board of Directors took on several governance issues, calling for the creation of a task force to review proposed policies on conflicts of interest and communications, and passing a third policy covering antitrust concerns.

The board, at its meeting on Sept. 25, established a task force to review a conflict of interest policy proposed by NYSSCPA staff in response to a recommendation by the Society’s auditor. The board also passed an antitrust policy arising from general concerns that associations by nature are vulnerable to antitrust violations.

The task force will also consider the creation of a third policy stating the Society’s position on members communicating with the media regarding controversial or sensitive accounting issues. Accounting fiascoes and the post-Enron environment seemed to color the policy dialogue; members saw conflict of interest and antitrust policies as part of good governance, and the communications policy as a necessity given the Society’s role in speaking out for the accounting profession.

“Every auditor after Enron is looking at governance issues,” NYSSCPA board member Raymond M. Nowicki said, during discussion of the conflict of interest policy. The discussion followed a presentation by the NYSSCPA’s auditor, which recommended establishing such a policy.

The proposed policy generally sets out to prevent members and staff from using their positions or confidential information to their personal advantage, especially in business relationships where these would work to staff or members’ financial gain. According to the policy, it would be up to the officers, members and staff to disclose any conflicts of interest to the board.

Former president Nancy Newman-Limata suggested a task force review the policy, to allow greater feedback.
“I think this policy covers FAE (Foundation for Accounting Education) trustees as well, and I think it important to get their feedback and see a task force evaluate it,” FAE trustees President Newman-Limata said, giving the example of a board member who might also be compensated as an FAE instructor. “It’s a potential inherent conflict of interest,” she said.

President Jo Ann Golden said the board should also look to establish a communications policy in order to tighten the Society’s voice on issues crucial to the accounting profession.

Other Action

Board members discussed at length the Society’s strategic plan, which NYSSCPA leaders forged at the annual leadership conference in July and refined through comments added in the ensuing six weeks.

The strategic plan focuses on the direction the Society will take over the next 30 years, encompassing core objectives that collectively seek to serve the membership, advance the profession and maintain the public trust in the CPA brand.

NYSSCPA Vice President Carol C. Lapidus presented the draft strategic plan. Board members discussed altering the language in the document, with some members urging the board to adopt the strategic plan and avoid becoming embroiled in “wordsmithing.”

The board agreed to publish the draft document, invite comment from the Society membership at large and revisit the question at its next meeting.