The NYSSCPA’s Board of Directors has approved a series of proposed changes to the organization’s bylaws that, among other things, clarify the Society’s role in ethics investigations and expand its communication channels with members.

The vote, taken during the board’s quarterly meeting on March 19, paved the way for the proposed amendments to be included in the proxy ballot mailed to all CPA members of the Society. Because revisions to the bylaws require a general membership vote, a ballot that features the changes and the slate of 2015–2016 board and officer nominees is included with the April issue of The Trusted Professional.  

The first spate of revisions, located in Articles I, III, IV, X and XV, would permit certain member communication initiatives—including proxy balloting and general notification requirements—to be conducted electronically. This change complies with recently approved updates to the New York State Not-for-Profit Corporation Law (NPCL) that make allowances for organizations to utilize electronic communications for official business.

Another set of revisions, located in Article XII, are meant to make a three-year-old change to the NYSSCPA’s role in ethics investigations even more explicit.  

In 2012, the NYSSCPA became an Option 2 state under the AICPA’s Joint Ethics Enforcement Program (JEEP). The institute established JEEP in order to avoid duplicate investigations of potential violations by CPAs who belong to both the AICPA and one or more state societies. 

As an Option 2 state, the NYSSCPA agrees to let the AICPA conduct all investigations into potential disciplinary matters concerning NYSSCPA members. Following the AICPA’s investigation, the Society’s Professional Ethics Committee (PEC) reviews the results and either concurs with the decision or sends it back for further review.

The proposed amendments would delete any references in the bylaws that indicate that the PEC is still an investigating committee. In addition, the amendments would change references from “defendant” to “member” in ethics cases and would clarify that a “timely written petition” would need to be filed in 30 days. The board also approved a proposed bylaws change that would codify the practice of reimbursing a terminated member his or her dues on a prorated basis.

On a final note, the proposed changes would update the bylaws to reflect the Society’s adoption of the AICPA Code of Professional Conduct in 2013. 

Bylaws changes approved by the membership will go into effect following the 118th Annual Election Meeting and Dinner, which will be held in New York City on May 14.

rbusweiler@nysscpa.org