2011 Annual Meeting of Members Board of Directors

DRAFT MINUTES
ANNUAL MEETING OF MEMBERS AND 2011-2012 BOARD OF DIRECTORS
MEETING
FRIDAY, JUNE 24 AND SATURDAY, JUNE 25, 2011
OMNI FORT WORTH HOTEL; FORT WORTH, TX
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IX. TREASURER’S REPORT. Immediate past Treasurer, Rick Baumeister,
provided a year-end financial report. He recognized the members of the
Finance Committee and explained the committee’s role and
responsibilities.
Mr. Baumeister reported that the Society ended the year with a net
revenue of $418,463, as compared to a net deficit of ($319,054) budgeted.
The excess fund balance for the Society was $3,977,989, which is 71% of
net operating expenses.
The CPE Foundation ended the year with a net revenue of $119,452, as
compared to a net deficit of ($151,711) budgeted. The excess fund
balance was $2,495,051, which is 66% of net operating expenses.
Mr. Baumeister praised and acknowledged TSCPA CEO/Executive
Director, John Sharbaugh, CPE Director, Kay Crider, and Controller,
Steve Phillips and their respective staff for doing an outstanding job.
X. APPROVAL OF THE 2011-2012 BUDGETS. Tracy Stewart, Treasurer,
explained the budget process and presented the Society budget for 2011-
2012. She prepared a pie chart showing how members’ dues are
allocated. The total net deficit budgeted for 2012 is ($399,455), as
compared to a net revenue of $418,463 in 2010. The large variance
included $711,820, of unrealized investment income in 2010. The
Society’s unrestricted fund balance is projected at $3,579,000, in the
budget, still within the requirement of 50% of net operating expenses.
Ms. Stewart stated that the CPE Foundation budget is based primarily on
the programs offered and there is a decrease from the prior year reflected
in the budget. A deficit of ($182,000), is budgeted for the 2011-2012 year
for the CPE Foundation as compared to a net revenue of $120,000 in
2010. The CPE Foundation unrestricted fund balance at year-end 2012,
is budgeted at $2,313,000, within the requirement of 50% of net operating
expenses.
Ms. Stewart reviewed the capital budget which includes the purchase of
two servers at $18,000, and new AMS software at $600,000.
Ms. Stewart made the following motion, which was seconded: