MINUTES OF THE EXECUTIVE COMMITTEE MEETING OF THE AUDITING SECTION OF THE AMERICAN ACCOUNTING ASSOCIATION
MEETING DATE: January 25, 1996
MEETING LOCATION: San Antonio, Texas
IN ATTENDANCE: Executive Committee Members: Arnie Wright, Jane Mutchler, Tom Powell, Karl Hackenbrack, Ira Solomon, Robert Knechel. Guest: Jack Krogstadt (Chair, 1996 Mid-Year Meeting Steering Committee).
The meeting was called to order at 9:00 a.m.
Wright/Mutchler
Information/Action
The minutes of the August 13, 1995 Executive Committee meeting, the August 14, 1995 annual business meeting, and the August 15, 1995 Executive Committee meeting were discussed. Arnie Wright moved and Jane Mutchler seconded that: The minutes of the August 13, 1995 Executive Committee meeting, the August 14, 1995 annual business meeting, and the August 15, 1995 Executive Committee meeting be approved. The motion passed unanimously.
Krogstadt/Wright/Hackenbrack
Information/Action
Jack Krogstadt led a discussion on the preparation for the 1996 Mid-Year Meeting. Issues discussed included the breadth of involvement of Section members in the program, the integrity and quality of the review process, budget related issues (travel reimbursement, the Chair's perceived leeway in committing Section funds, reimbursement of host school), and timing of mid-year meetings.
Arnie Wright agreed to ask Urton Anderson (chair, 1997 Mid-Year Meeting Steering Committee) for a budget with expenditures prioritized. The proposed budget will be discussed at an August Executive Committee meeting.
The Executive Committee agreed that the Section should cover mid-year meeting host school expenses, estimated at $1000. Reimbursement mechanisms (e.g., stipend, designated credit card) were discussed. Karl Hackenbrack agreed to determine American Accounting Association policies.
Mutchler
Information
Jane Mutchler reviewed her list of appointments for the 1996-97 fiscal year.
Solomon
Action
Ira Solomon presented the Auditing Journal Editor Nomination Committee report. Ira led a detailed discussion of the process the committee followed. After considerable deliberation, Jane Mutchler moved and Ira Solomon seconded that: William L. Felix be offered a three year term as editor of Auditing: A Journal of Practice and Theory with a $15,000 per year financial support package. The motion passed unanimously.
Arnie Wright called Bill Felix and offered him the position. Bill accepted.
Wright
Information/Action
Arnie Wright led a discussion of the By-Law Committee report. The report proposes four by-law changes: (1) split the existing Secretary/Treasurer position, (2) change the title of Chairperson and Vice-Chairperson to President and Vice-President, (3) change the Section's fiscal year-end to August 31st, and (4) move the Section's business meeting from the annual meeting to the mid-year meeting.
Issues raised included method of balloting (annual business meeting or mail ballot) and terms of officers during the transition period should proposal 4 be enacted.
The Executive Committee endorsed the By-Law Committee recommendation and favored a mail ballot via The Auditor's Report. The Executive Committee will seek input from members at the January 27th town meeting and revisit the issue during the January 28th Executive Committee meeting to consider input received at the town meeting.
Mutchler
Information/Action
Jane Mutchler updated the Committee on the 1996 Auditing Section Outstanding Dissertation Award selection process. Jane also led a discussion of revisions to the guidelines to provide greater recognition and promote more submissions, including the timing, eligibility, cash award for author, and recognition of author's Ph.D. program/dissertation committee chairperson. Jane agreed to draft revised guidelines to be mailed to Executive Committee members for their review and subsequent approval at the August Executive Committee meeting.
Wright/Hackenbrack
Information/Action
Arnie Wright led a discussion on the appropriateness of cash awards for Outstanding Dissertation Award recipients and/or their Ph.D. granting institutions. Arnie agreed to raise the issue at the January 27th town meeting.
Karl Hackenbrack agreed to determine American Accounting Association policies for cash awards.
Wright
Information/Action
The next Executive Committee meeting will be January 28, 1996 from 8:00 to 11:00 a.m.
The meeting adjourned at noon.
Minutes submitted by: Karl Hackenbrack, Secretary/Treasurer
MINUTES OF THE EXECUTIVE COMMITTEE MEETING OF THE AUDITING SECTION OF THE AMERICAN ACCOUNTING ASSOCIATION
MEETING DATE: January 28, 1996
MEETING LOCATION: San Antonio, Texas
IN ATTENDANCE: Executive Committee Members: Arnie Wright, Jane Mutchler, Tom Powell, Karl Hackenbrack, Ira Solomon, Robert Knechel.
The meeting was called to order at 8:10 a.m.
Wright/Powell/Solomon/Hackenbrack/Mutchler
Information/Action
Arnie Wright led a discussion of the January 27th town meeting membership reaction to the four proposed by-law changes [(1) split the existing Secretary/Treasurer position, (2) change the title of Chairperson and Vice-Chairperson to President and Vice-President, (3) change the Section's fiscal year-end to August 31st, and (4) move the Section's business meeting from the annual meeting to the mid-year meeting]. Tom Powell moved and Ira Solomon seconded that: Except for proposal 4, the Executive Committee accept the recommendation of the By-Law Change Committee. The motion passed unanimously. The rationale for not forwarding proposal 4 to the membership is the current by-laws place no constraints on when the annual business meeting is to be held; the Committee feels it is not necessary to constrain the existing by-laws.
Proposal 4 is tabled and the Executive Committee will re-visit it at a later date when deemed appropriate.
Arnie will forward the necessary materials to the editor of The Auditor's Report so ballots for items 1, 2, and 3 can be distributed in The Auditor's Report.
Concerns were raised about the balloting process at the annual meeting since ineligible individuals may be able to vote. Tom Powell moved and Jane Mutchler seconded that: A formalized election process (including sign-in sheets, serially numbered ballots, monitoring of ballot distribution) be instituted at the annual meeting. The motion passed unanimously.
Hackenbrack/Wright
Information/Action
Karl Hackenbrack reviewed the Section's financial activity for the period July through November 1995 (analysis attached). Concern was expressed about the rising cost of the newsletter. Arnie agreed to appoint a committee to study the implications of electronically distributing the newsletter. Arnie also agreed to ask the newsletter editor to submit a budget to the Executive Committee for consideration at our next meeting.
Karl also led a discussion of the Section's minimum cash balance requirement. It was decided that the Treasurer will alert the Executive Committee when the Section's cash balance reaches the threshold "annual membership dues plus $10,000" and recommend action when the Section's cash balance reaches the threshold "annual membership dues plus $5000." Accordingly, the Treasurer's job description is updated.
Wright
Information/Action
Arnie Wright led a discussion of a letter from Eric Hirst, Chair of the Membership Committee, regarding a "new member package." The Executive Committee is pleased with the progress to date, but not able to support implementation of the Committee's suggestion until a more complete proposal is developed. Arnie agreed to ask the Membership Committee to (1) produce a sample new member packet, (2) suggest distribution channels, and (3) submit a budget.
Wright
Information
Arnie Wright reviewed progress made and initiatives yet to be taken to improve communication among research, practice, and university education. It was agreed that Arnie direct the Education Committee to work towards developing an instructional supplement to accompany the Section's recent monograph. The purpose of this supplement is to facilitate use of the monograph by instructors in the classroom (e.g., discussion exercises and questions). Questions were raised about possible overlapping responsibilities and the ad hoc versus permanent nature of the Professional Liaison Committee, Practice Advisory Committee, Research Committee, and Education Committee.
Powell/Hackenbrack
Information/Action
Tom Powell led a discussion of the charge and composition of the Practice Advisory Committee. Tom proposed that the Practice Advisory Committee meet later this Spring to explore issues and refine its charge. The meeting would be open to Executive Committee members. Tom moved and Karl Hackenbrack seconded that: A budget of $1000 be approved to cover the cost of a meeting room and refreshments (but not personal expenses of committee members) and otherwise non-reimbursed travel expenses of Tom Powell should the meeting be held outside Central Florida. The motion passed unanimously.
The Executive Committee discussed whether there should be a systematic policy of what types of activities should receive financial support from the Section. It was decided that the Executive Committee was elected to make financial decisions; a specific policy statement was not considered necessary.
Knechel
Information/Action
Robert Knechel reviewed current efforts to update the operating manual and strategies to make aspects of the manual available in electronic format. It was agreed that Robert develop a proposal on what aspects of the manual to make available in electronic format, drop date policies, and procedures to assess member demand for specific items (e.g., hit rates for materials on the Section's homepage).
Solomon/Wright
Information
Ira Solomon provided an update of the process of the Future Audit, Attest, and Assurance Services Task Force. Ira reported that good albeit slow progress is being made.
Arnie Wright agreed to communicate with the Committee and reinforce the notion that its charge is to be proactive not reactive.
All Executive Committee members
Information/Action
Jane Mutchler led a discussion of possible policy changes regarding the Outstanding Dissertation Award. The discussion focused primarily on submissions of dissertations to multiple section competitions and the appropriateness of monetary awards. Jane agreed to draft necessary policy changes and recommend cost and funding options for monetary awards.
Tom Powell reported that no nominations for the Distinguished Service Award have yet been received. Executive Committee members agreed to make nominations by February 15th.
Ira Solomon reported that no nominations for the Educator Award have yet been received. Executive Committee members agreed to make nominations by February 15th.
Arnie Wright agreed to consult the AAA to determine how to publish pictures of Section award winners in the annual meeting program.
Wright
Information
Arnie Wright reviewed the results of the international member survey. Arnie made it clear that the Section must continue to be cognizant of the needs of its international members. Communications with international members will be greatly enhanced by the new Web site. The Section might consider co-sponsoring a conference held outside of North America.
Wright
Information/Action
Arnie Wright reported on the current status of the Section's homepage. A critical issue at this point is how to maintain the web site. It was agreed that Arnie form an ad hoc committee to address what is involved in maintaining the web site, pros and cons of distributing the Section's newsletter via the homepage, and other issues the Committee deems important. Also, it was agreed that Mike Groomer would be an excellent chairperson.
Wright/Mutchler
Information
Arnie Wright reported on the progress to date planning the 1997 Mid-Year Meeting. It was evident that the success of the 1996 Mid-Year Meeting was due in large part to Jack Krogstadt's attention to detail. It was decided that the Executive Committee should select the Mid-Year Meeting sites. Jane Mutchler agreed to begin the search for a site for the 1998 Mid-Year Meeting (and a reasonable number of subsequent meetings) this spring.
The meeting adjourned at 11:25 a.m.
Minutes submitted by: Karl Hackenbrack, Secretary/Treasurer
American Accounting Association Auditing Section
Statement of Cash Receipts, Disbursements and Cash Balance (Note 1)
| JULY-NOV 1995 | JULY-NOV 1994 | Actual, FY95: 7/1/94 - 6/30/95 | Budget, FY96: 7/1/95 - 6/30/96 | |
| RECEIPTS: | ||||
| Membership Dues | $6,926.00 | $7,540.00 | $24,195.37 | $25,000 |
| Journal Subscriptions/Sales | 4,870.00 | 4,459.50 | 11,577.30 | 16,000 |
| Sales of Publications | 351.00 | 399.02 | 845.06 | |
| Journal Submission Fees | 2,550.00 | 1,600.00 | 3,600.00 | |
| CPE (net) | 921.88 | (375.00) | 1,110.64 | 1,500 |
| Contributions/Reimbursements | 6,098.71 | 4,500.00 | 15,523.91 | 25,000 |
| Conf/Meeting Registration | none | 200.00 | 14,740.00 | 15,000 |
| Miscellaneous Receipts | none | (25.00) | (25.00) | none |
| TOTAL RECEIPTS | $21,717.59 | $18,298.52 | $71,567.28 | $82,500 |
| DISBURSEMENTS: | ||||
| Awards | $402.00 | $438.71 | $438.71 | $500 |
| A:JP&T--Printing/Distribution | 11,284.03 | 9,422.53 | 20,513.51 | 30,000 |
| --Editorial Support | 7,500.00 | 7,500.00 | 15,000.00 | 22,500 |
| Newsletter: The Auditor's Report | 6,028.49 | 3,821.30 | 6,208.56 | 6,500 |
| Conventions/Meetings | 774.75 | 1078.87 | 21,096.58 | 25,000 |
| Miscellaneous | 26.44 | 720.37 | 5,474.31 | 1,000 |
| TOTAL DISBURSEMENTS | $26,015.71 | $22,981.78 | $68,731.67 | $85,500 |
| Increase (Decrease) | $(4,298.12) | $(4,683.26) | $2,835.61 | $(3,000) |
| Beginning Cash Balance | $66,457.11 | $63,621.50 | $63,621.50 | $66,457 |
| Ending Cash Balance | $62,158.99 | $58,938.24 | $66,457.11 | $63,457 |
NOTE 1: The Statement of Cash Receipts, Disbursements and Cash
Balance was compiled from monthly financial reports received from the American
Accounting Association national office.
October 21, 1998
