July 1, 2017 – June 30, 2018
Together as one FEI there is a great deal of success to celebrate! Through your efforts, FEI is a thriving association, and when reflecting on the past fiscal year, you can be proud of the many initiatives we have set in motion. Together we produced the following:
- 267 Chapter meetings/local events
- 100 Webinars presented
- 34 In-person and virtual Chapter Leadership events
- 21 Technical Committee meetings
- 15 Comment letters filed
- 14 In-person conferences/courses/events
- 6 Research reports published by FERF
FEI’s Technical Commitee members led the association’s advocacy efforts during fiscal year 2018, offering technical advice, commentary and policy recommendations on legislation, regulatory proposals and accounting standard updates.
FEI’s Committee on Corporate Reporting (CCR) met with the U.S. Securities and Exchange Commission (SEC) twice during the past fiscal year; once at their quarterly CCR meeting and once at the SEC Offices in Washington D.C. The timing of these meetings was critical, as CCR was able to provide preparer insights during the disruption associated with tax reform and the anticipated effects on financial reporting. Other topics discussed during these meetings included accounting change, proposed rules and regulations and best practices for working together to continue to improve financial reporting.
Members of CCR also met with the Public Company Accounting Oversight Board (PCAOB) three times during the past fiscal year; once at their quarterly CCR meeting and twice at the PCAOB Offices in Washington D.C. At their most recent meeting at the PCAOB offices, CCR met with the new Board members and provided input on their strategic agenda and other topics. Other topics of discussion included recent PCAOB proposals, inspection trends to date, internal control over financial reporting, the new Auditors’ Reporting Model, emerging technologies, and other new standard implementation. CCR also participated in various calls with the PCAOB staff at their request in order to provide input on specific projects of the PCAOB.
FEI’s Committee on Private Company Policy (CPC-P) undertook an extensive advocacy campaign to communicate policy recommendations and concerns to lawmakers on Capitol Hill as the first major reform of the tax code made its way through Congress. CPC-P members traveled to Washington, DC for face-to-face meetings with key members and staff of the House Ways & Means and Senate Finance Committee on four separate occasions to provide recommendations and insight on the treatment of private businesses and pass-through entities in the tax reform proposals considered by both the House and Senate. CPC-P provide additional feedback to lawmakers by submitting policy papers to the tax writing committees and House-Senate conferees at key points in the legislative process. The final version of the law, enacted in December, include a number of provisions advocated by CPC-P that provide for a more equitable tax treatment of pass-through businesses.
In February 2018, CPC-P members again traveled to Washington, DC for the committee’s annual Washington Fly-in. Meetings were held with officials from the Department of the Treasury to discuss the need for clarification of certain provisions of the new tax law, The Tax Cuts and Jobs Act (TCJA) as the Treasury Department works with the IRS to produce guidance and regulations to implement the new law. CPC-P members also held a series of meetings with key members and staff of the House Ways & Means and Senate Finance Committees, including a 30-minute discussion with Ways & Means ranking minority member Richard Neal (D-MA).
CPC-P members took their message for the need for clarification and guidance with the staff of Congress’ Joint Committee on Taxation (JCT) in a June meeting on Capitol Hill. CPC-P members discussed a number of TCJA provisions related to the law’s new deduction for pass-through business income and asked for JCT to provide some guidance in its annual Blue Book that will summarize the intent of the TCJA’s various provisions.
In response to a July 2017 request from Chairman Orrin Hatch (R-UT), the Committee on Taxation (COT) submitted a letter to the Senate Finance Committee calling for the adoption of pro-growth tax reform that would provide competitive corporate tax rates, adopt competitive international tax rules, provide an incentive to repatriate foreign earnings, foster technological innovation and provide transition relief.
In August 2017, COT joined the National Association of Manufacturers (NAM) and fifty other trade associations in a letter to Treasury Secretary Steven Mnuchin calling on the adoption of a split rate approach to taxation of foreign earnings, with one rate for offshore cash and a separate rate for non-cash offshore assets.
When the White House and Congressional leadership released a tax reform framework to serve as the basis for tax reform legislation in the fall of 2017, COT submitted a letter to the Chairs of the House Ways & Means and Senate Finance Committees, Speaker of the House, Senate Majority Leader, Secretary of the Treasury and Director of the White House’s National Economic Council urging for the adoption of sensible, pro-growth tax principles that will make U.S. companies more competitive domestically and abroad.
After the Tax Cuts and Jobs Act was signed into law in December, members of COT met with staff of the Financial Accounting Standards Board (FASB) to discuss the impact changes to the tax code included in the new law would have on companies’ ability to comply with existing some accounting standards.
In September 2018, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) released their updated Enterprise Management (ERM) Framework: Enterprise Risk Management – Integrating with Strategy and Performance. The Committee on Governance, Risk & Compliance (CGRC) published a three-part series of FEI Daily articles around the update and sponsored a webinar featuring then COSO Chairman, Bob Hirth as well as three COSO members - James Davenport, Deon Minnaar and Paul Sobel COSO ERM Framework in December.
FEI’s Committee on Finance and IT (CFIT) collaborated in planning content for the 2018 Technology for Finance Leaders Conference held on May 8 in Boston. Key topics included blockchain, robotics and the future of finance talent.
In April 2018 the Coalition for Efficient and Effective Tax Administration (CEETA), an FEI-administered coalition of organizations working to improve IRS exams and audits, worked with the offices of Representative Jason Smith (R-MO) and Representative Terri Sewell (D-AL) on the introduction of legislation to address the coalition’s concerns about IRS exam and audit processes. The bill, The Taxpayer First Act (HR 3220), was introduced in the House in July 2017 with bipartisan support. In April 2018, key provisions of HR 3220 were included in a wide-ranging IRS reform bill that was approved by the House of Representatives with broad bipartisan support. CEETA members then focused on generating support for adoption of these provisions in the Senate version of the legislation that is expected to be considered in the fall of 2018.
Click on the tabs below to learn more about highights from the past year.
INFORMATION
In response to the request from Chapter Leaders and the membership at-large to review the dues pricing structure, FEI's Board of Directors met in May and approved to implement a dues reduction for the Executive category of membership, effective July 1, 2018 for fiscal year 2019. This reduction will provide new members and current Executive members the opportunity to join and renew at a fee of $499, as a reduction from $525.
FEI senior staff met in Toronto with the new President and CEO, Pete Pigott, and other staff members of FEI Canada in February to discuss ways to strengthen the bond between the organizations and build upon the ‘One FEI’ mindset. Staff members reciprocally attended each other’s annual Leadership conferences – FEI’s Financial Leadership Summit, held in May in Houston and FEI Canada’s Oceans of Innovation Annual Conference, held in Halifax in June. Both organizations will be working together to develop sessions for next year’s conferences, as well as other programs that will serve both U.S. and Canadian members.
Efforts to strengthen local support of FEI is paramount. FEI Staff partnered with local Chapter Leadership and sponsors to work through revitalization needs in several key areas – Charlotte, Philadelphia and Washington, DC. Several events were held in each of these areas to assist with engagement of current members, as well as the acquisition of future members and sponsors.
With the redesign of the Corporate Membership Program in fiscal year 2017, company participation in the program has grown from 17 to 38 companies, adding 154 new members to FEI and local Chapter engagement. The tiered pricing, discount structure and ability for organizations to offer membership and engagement opportunities to ‘pre-eligible’ staff members has helped to make the program a success.
In September we launched FEI Forward, an extension of FEI Daily. This weekly e-communication, distributed every Sunday evening, allows for members to plan for the week by reviewing what’s upcoming and important as determined by FEI’s Editorial Staff.
We responded to requests for additional on demand learning opportunities and through our partnership with the Committee of Sponsoring Organizations (COSO) we launched two certification programs, COSO Internal Control Certificate, which offers the unique opportunity to develop an expertise in designing, implementing and monitoring a system of internal control, and COSO Enterprise Risk Management Certificate, which offers the unique opportunity to learn the concepts and principles of the newly updated ERM framework and be prepared to integrate the framework into your organization’s strategy-setting process to drive business performance.
INTEGRITY
In celebration of the profession FEI hosted its 2nd Annual Financial Executive of the Year Awards Ceremony, in conjunction with our annual Financial Leadership Summit. This nation-wide awards program recognized four peer-nominated individuals who made considerable impact within their companies or organizations.
- Private Company: Stephan Carnesi, CFO, G&J Pepsi-Cola Bottlers, Inc.
- Public Company – Small/Med-Size: Anup Singh, former CFO, Nimble Storage, Inc.
- Public Company – Large: Chuck Serianni, EVP and CFO, Republic Services, Inc.
- Non-Profit Organization: Paul Velaski, CFO and COO, Silicon Valley Community Foundation
In a video segment called “Leaders Speak: The Changing Role of the Financial Executive” this year’s award recipients discussed how the role of the senior-level financial executive has changed over their career.
The consolidation of the FEI/FERF governance structures was approved by the FEI Board of Directors, as well as the FERF Board of Trustees at their February 2018 meetings. This will allow the organization to reduce costs, enhance the value proposition of the foundation and more closely align the mission of both organizations. Bylaws amendments were reviewed and approved by the membership at-large during the annual proxy vote in April and finalized during the Annual Business Meeting of Members in May, held in conjunction with FEI’s Financial Leadership Summit.
In addition to the consolidation of governance structures, FERF’s name has formally been changed from Financial Executives Research Foundation to Financial Education & Research Foundation to align more closely with FERF’s mission.
FEI partnered with The Financial Executives Networking Group (FENG) on a special initiative to work together to bring the best of our respective career management, education and networking resources to each other’s members.
We also continued to grow our partnership with the SEC Professionals Group in an effort to broaden exchanges around financial reporting processes.
INFLUENCE
FEI’s Committee on Corporate Reporting (CCR) commented on FASB’s Proposed ASU Addressing the Accounting for Collaborative Arrangements. The letter was submitted on June 11, 2018. Read complete letter »
Comments were shared on FASB’s Proposed ASU Addressing Cloud Computing Implementation Costs by CCR via comment letter on April 30, 2018. Read complete letter »
Responds to FASB's Technical Improvements ED on Topic 842 provided by CCR on January 29, 2018. Read complete letter »
Comments were shared by CCR on Proposed Accounting Standards Update – Income Statement-Reporting Comprehensive Income (Topic 220) via letter submitted January 29, 2018. Read complete letter »
CCR provided comments on EITF Issue No. 17-A, Customer’s Accounting for Implementation, Setup, and Other Upfront Costs (Implementation Costs) Incurred in a Cloud Computing Arrangement That is Considered a Service Contract on January 2, 2018. Read complete letter »
On December 11, 2017 CCR commented on File No. S7-08-17 - Proposed Rule: FAST Act Modernization and Simplification of Regulation S-K. Read complete letter »
On December 8, 2017 a letter was sent to Chairman Brady by FEI’s Committee on Private Company Policy (CPC-P) applauding the House and Senate for their work on The Tax Cuts and Jobs Act (HR 1). Read complete letter »
CPC-P sent letter to Chairman Hatch on November 28, 2017 applauding efforts to draft comprehensive tax reform legislation that fosters growth and increases competitiveness among all U.S. businesses. Read complete letter »
Reasonable “Guardrails” for Proposed Pass-Through Tax Rate recommended by CPC-P on November 3, 2017. Read complete letter »
On October 19, 2017 FEI’s Committee on Taxation (COT) expressed its support of the Unified Tax Reform Framework released in September. Read complete letter »
CPC-P provided guidance to Congressional Tax Writers on tax reform framework on October 19, 2017. Read complete letter »
COT submitted a letter on August 10, 2017 with other Associations to Treasury Secretary on a two-rate solution to accumulated foreign earnings. Read complete letter »
On July 17, 2017 COT provided the Senate Finance Committee tax reform recommendations.Read complete letter »
Tax Reform Recommendations for Private Companies offered to the Senate Finance Committee by (CPC-P) on July 17, 2017. Read complete letter »
CPC-P provided feedback to House Ways & Means Committee on July 7, 2017 on pass-through taxation, international taxation and tax reform transition rules. Read complete letter »
INTERACTION
Anti-Fraud Skills for Financial Leaders
October 12, 2017 | Iselin, NJ
This one-day course, sponsored by EY, was created for financial professionals in private and public companies and firms responsible for fraud management, risk management and internal controls from line managers to CFOs and the Board of Directors. Learning outcomes for attendees included recognizing the “fraud problem”, identifying red flags, understanding how to report fraud and estimating areas of greatest risk.
Developing SEC Reporting and Filing Expertise
October 16-17, 2017 | Atlanta, GA
November 7-8, 2017 | Chicago, IL
November 16-17, 2017 | Houston, TX
January 16-17, 2018 | Los Angeles, CA
This two-day course, was developed for practicing professionals who are directly or indirectly responsible for SEC reporting within an organization. Whether an audit committee member, CFO, controller, assistant controller, SEC reporting manager, auditor, legal counsel or other professional wanting to learn more about SEC reporting, this course, sponsored by Deloitte, was intended to provide attendees with the foundation need to succeed.
Topics of interest included an overview of SEC Reporting requirements, drafting and understanding the Financial Statements Component of a 10-K, MD&A through the eyes of management, quarterly filings, Form 8-K, Non-GAAP reporting and liability considerations.
Current Financial Reporting Issues (CFRI) Conference
November 13-14, 2017 | New York, NY
FEI’s 36th annual CFRI conference shed light on the impact disruptive forces can have on companies and how finance organizations can respond effectively. During this two-day event, attendees learned from the shared experiences of other controllers, regulators, auditors and standards- setters as they address the top issues impacting the financial reporting community.
The Committee on Corporate Reporting (CCR) was instrumental in the development and executing the agenda of the conference. The assisted with the speaker selection and invites, include members of the U.S. Securities and Exchange Commission (SEC), including Wes Bricker, Chief Accountant, Financial Accounting Standards Board (FASB) and Public Company Accounting Oversight Board (PCAOB). Additional keynote addresses where shared by Mark Bertolini, Chairman and Chief Executive Officer of Aetna and Alex Gorsky, Chairman and Chief Executive Officer of Johnson & Johnson. Attendees also hear from other industry experts on innovative technology, deregulation, new accounting standards, changing dynamics of talent development and digitization of the finance function. HIGHLIGHTS »
New Lease Accounting Standard – Implementation Challenges and Best Practices
March 20, 2018 | New York, NY
Participants of this one-day interactive course gained a deeper understanding of the logic and implications of the new standard and learned about emerging technical accounting issues that are being identified and addressed as companies proceed with implementation. The course, sponsored by EY, also explored the financial reporting and system challenges associated with implementing the new guidance.
2018 Technology for Finance Leaders Conference
May 7-8, 2018 | Boston, MA
This conference addressed top technology trends and issues CFOs and financial professionals needed to consider, including the future of finance talent, big data, robotics, cybersecurity, cloud, blockchain and technology integration.
HIGHLIGHTS »
Financial Leadership Summit
May 20-22, 2018 | Houston, TX
FEI’s annual Financial Leadership Summit offered financial executives extensive personal and professional networking opportunities, professional development and practical solutions to current challenges, leadership development through a variety of concurrent session tracks, as well as time to explore and learn about the latest products and services needed to succeed.
This year’s keynote speakers taught us many things, including The 5 Second Rule, presented by Mel Robbins, award-winning CNN contributor and life coach, retired U.S. Astronaut, Scott Parazynski shared lessons on how to leadership under adversity from his own experiences and Seth Mattison, Co-Founder and Chief Movement Officer of Laminate Labs helped attendees to better understand navigating uncertainty in the connected age while introducing the super trends shaping the future of work. HIGHLIGHTS »
Virtual Technology Training Series
Accounting for Income Taxes | June 1, 2018 | 2 hours
This program presented the latest guidance on implementation of the ASC 740 - Income Taxes standard, including examples and includes the effects of the 2017 Tax Act.
Dangers of Improper Revenue Recognition | June 8, 2018 | 2 hours
Through lecture and interaction, this program provided attendees the ability to identify improper revenue recognition techniques and addressed quality of earnings.
CyberSecurity Awareness and Assurance | June 15, 2018 | 2 hours
Attendees of this session learned the basics of cybersecurity awareness and safeguarding sensitive data, as well as how to address cybersecurity threats within your firm.
FASB Update | June 22, 2018 | 2 hours
This session provided an overview of changes made by accounting standard updates. Only pronouncements with broad application were covered in detail.
2018 Accounting Change for Finance Leaders Conference
June 18-19, 2017 | Chicago, IL
The conference addressed the latest accounting and financial reporting updates and provided technical and practical insights on recent pronouncements, regulations and on efforts to implement new accounting standards. HIGHLIGHTS »