IMA April 2014-Many new features!

LONG ISLAND CHAPTER
Monthly Dinner Meeting - Tuesday, April 8, 2014
The Milleridge Cottage - Jericho, NY - Cocktail Hour begins at 6:00 pm
Family Business - Managing Growth,
Change & Ownership Transition
SPECIAL GUEST SPEAKERS:
Beth Bunster
Whitsons Culinary Group
Ellen Cooperperson
Corporate Performance Consultants, Inc.
Charles S. Lachman
Corporate Fuel
Moderated by Steven Kuperschmid, Esq., Silverman Acampora Attorneys at Law
*Don't Miss the Value of Team Building*
Special Presentation from 5pm - 6 pm prior to our April Dinner meeting
Team Building Seminar offered at no charge
See more information on our website
Advanced Pricing and
Payment for the Meeting:
$70 *New price
(IMA Members receive $10 discount)
Pre-register online at http://longisland.imanet.org/
(*Please note there will be a $10 surcharge for
registration & payment at the door)
Thank You To Our April Sponsors
Bank of America
Gallagher Benefits Services, Inc.
Gourmet Caffe • Mendels & Associates
April 2014
INSTITUTE OF MANAGEMENT ACCOUNTANTS
Page 2
BETH BUNSTER, CFO - Whitsons Culinary Group
Beth Bunster is the CFO and a shareholder in Whitsons, responsible for developing and implementing the company’s longrange financial strategy and growth plan. Beth’s other responsibilities include overseeing Information Technology, Human
Resources, Accounting, financial statement preparation and analysis, budgeting and forecasting, internal auditing, long-range
system design and implementation and cash flow analysis. In addition to her day-to-day responsibilities, Beth plays a key
role in creating and implementing the company’s strategic plan.
ELLEN COOPERPERSON, President & CEO - Corporate Performance Consultants, Inc.
Ellen Cooperperson, a seasoned business advisor, has for nearly three decades led Corporate Performance Consultants, Inc.
to address the challenges that organizations face at all stages of growth. From small entrepreneurial companies to large
enterprises, Ellen helps owners, CEO’s and management teams translate complex challenges into sound strategies, gain the
confidence to take action and get the results they desire. Combining advising, facilitation and coaching skills, her work has
been widely recognized to bring about a transformation in business thinking and to create a greater capacity for growth.
With academic degrees and extensive experience in Organizational Behavior and Neuro-Linguistic Programming, she helps
family-owned businesses face additional challenges of maintaining harmony among stakeholders and a balance between
business and personal/family needs without compromising business success.
A media personality, Ellen’s achievements have been covered by the New York Times, Wall Street Journal, Business Week,
Newsday, Long Island Business News and CNBC.
Bringing extensive experience from her career at the Hershey Foods Corporation she has worked with businesses of all sizes,
including Cablevision, BNYMellon, Henry Schein, L’Oreal and many other raving fans who describe the positive impact of
her team’s work in their organization.
CHARLES S. LACHMAN, Founding Partner - Corporate Fuel
Charles S. Lachman is a founding partner of Corporate Fuel, an investment banking firm providing advice and capital to
small and medium sized businesses. Corporate Fuel Partners provides equity capital, and its affiliates, Corporate Fuel
Advisors and Corporate Fuel Securities, provide advice to, and help companies source equity and debt capital to grow
their businesses. Corporate Fuel Advisors also helps clients find the human capital necessary to manage their business and
succeed. Corporate Fuel has completed over 400 clients assignments since its founding in January, 2005.
Charles was formerly the founding partner of Corporate Investment Partners, a middle market financial advisory firm
that merged with Corporate Fuel at its inception in 2005. He was also a partner and managing director of an international
consulting firm; an operating executive with two manufacturing companies and a specialty retail chain; a senior executive
with American Can Company; and a lending officer at J.P. Morgan.
Charles serves on the board of Genisphere, LLC, a life sciences business offering molecular diagnostics tools and drug delivery
technologies, and American Hygiene Industries, a manufacturer of cleaning products.
Charles has a bachelor’s degree in History from Amherst College, and attended Oxford University following his graduation,
on a fellowship in history.
Thank You To Our March 11th Sponsors
Cook Maran • Deloitte • The LISS Group • TriNet Partners
April 2014
INSTITUTE OF MANAGEMENT ACCOUNTANTS
Last Month's Meeting
Page 3
by John P. Fodera, CPA,
Partner EisnerAmper
On March 11, 2014 our Long Island Chapter was delighted to have Gerard McCaffery, Joseph Seviroli, Neil Zola,
three top executives discuss strategies to create growth, motivate employees and manage the business. Our
monthly dinner meeting expert panel of CEO/Presidents educated the audience regarding various aspects of
business operations.
Gerard McCaffery, the President/CEO of MercyFirst, opened the CPE presentation discussing what skills CFO’s
need to make the transition to the President’s office. He also highlighted the importance of first impressions on
an interview and putting your best foot forward.
Joseph Seviroli, CEO of Seviroli Foods, located in Garden City, Long Island discussed the challenges of creating
new products for the consumers to increase growth at the company. He has set up periodic meeting with his
executive team to prioritize the objectives and keep everyone informed.
Neil Zora, President of the Garden City Group gave great insights on the importance of finding for information
to make key decisions. The IMA dinner meeting was one of the largest attended so far. Its success was mainly
attributed to the outstanding panelist. Our speakers answered numerous questions from the audience, and
welcomed further inquiries following their presentation, making for a very inspiring and informative evening.
Moderator, President and Palelists
Bob Arnold Sr., Jim Smith and Students
College Students at Dinner
Panelist Discussion
April 2014
INSTITUTE OF MANAGEMENT ACCOUNTANTS
Page 4
Membership Privileges
Your connection to the global accounting and finance community
IMA® helps members connect, build a network, share knowledge, access career opportunities, and make
business contacts to last a lifetime.
The online professional network created exclusively for IMA members allows you to participate in groups
related to topic areas or industries, IMA regional chapters and councils, subject matter, and CMA® study
groups. You can post announcements and events, utilize shared workspaces, find jobs, and more.
Visit http://linkup.imanet.org/ to get started!
Welcome New Members
Christopher Murray
Christina Doherty
Thomas Fazio
Nadine Calles
James Day
Alyssa Sciarratta
Long Island Chapter of the IMA
Member News & Announcements:
Upcoming Webinars in April
IMA Members have access to a number of free webinars through the Global
site. Earn CPE credits when you attend a live webinar. Advance registration
is recommended.
April 3, 2014 at 1:00pm
Top 7 Trends in Management Accounting
April 9, 2014 at 1:00pm
Financial Applications in the Cloud: Building a Business Case
Visit http://www.imanet.org/programs_events/webinars.aspx for more
information
Press Release
IMA Releases First International Salary Survey
Global Report Finds Accountants’ Salaries Increase with Certification
Montvale, NJ - Reflecting the significance of the global marketplace, IMA®
(Institute of Management Accountants) has released its first ever International
Salary Survey. In every region the global accounting association surveyed,
professionals holding the CMA® (Certified Management Accountant) credential
had greater earning power than non-CMAs. With responses from nearly 2,500
individuals, IMA’s survey is an accurate representation of its member base
and a true measure of the management accounting community. To view the
survey,visit: http://bit.ly/1hlPZ1z.
The CMA’s earning power is universally consistent, with its impact seen even
at the earliest career stages (ages 19 to 29). The average total compensation
for CMA-certified young professionals was 30 percent higher than their
noncertified peers.
In mid-2013, IMA released its Annual Salary Survey of the U.S., which reveals
similar benefits of certification. To view the highlights visit:
http://bit.ly/1lju6e8.
This Month's Member Spotlight:
Member: Alyssa Sciarratta
Company: LIU Post, Coherence
Capital Partners LLC
Position: Accounting Intern
Why I joined the IMA:
During my time as an accounting student at LIU Post and working
part time for a small hedge fund in Manhattan, I have learned the
importance of connecting with other professionals and the value
of attending networking events. This allows myself, as well as
my peers, to have the opportunity to speak with those who have
at one time or another been in the position that we are currently
in now. Their knowledge and experience offers us guidance in
decisions that we need to make and it has become one of the
greatest tools that a student could ask for.
Having the honor of being the President of LIU Post’s Accounting
Society and Kappa Omicron Chapter of Beta Alpha Psi, I have the
chance of bring professionals to our campus to come and speak
with our students. I believe that by having these presentations
and discussions, it helps our members to become more wellrounded candidates for future employment opportunities. By
surrounding ourselves with successful individuals, this allows
us to experience real world examples of where hard work and
dedication can take you.
As a college student, it is vital to have organizations that can
support and allow myself, as well as other students, to connect
with professionals. By having the opportunity to work with the
IMA, it gives students another resource to develop and strengthen
their communication skills and allows for self-growth through
attending these events. I personally have enjoyed meeting with
different people through the IMA and having recently joined, I
am excited to see where this new organization can take me.
Are you a Member with news to share? Whether it's a birthday, anniversary, special event or promotion,
please contact Karen Goldberg at [email protected] for inclusion in a future newsletter.
April 2014
INSTITUTE OF MANAGEMENT ACCOUNTANTS
Page 5
CFO Insight
Jerry Tucciarone
Hauppauge Digital Inc.
1. Tell me a little about Hauppauge Digital Inc.?
Hauppauge Digital Inc. is a public company that designs,
develops, manufactures and markets a variety of
consumer electronic hardware and software products that
link TV and other video delivery technologies to personal
computers and mobile devices, thereby facilitating and
enhancing home and mobile entertainment systems.
Hauppauge Digital Inc. is a multi-national company with
Administrative offices in Hauppauge, New York, Dublin
Ireland and Singapore and Sales offices all over the world.
2. How did you get to be the CFO at Hauppauge Digital
Inc. and how long have you been there?
I had previously worked at Walker Telecommunications
Inc., a Hauppauge, New York public company that
developed, manufactured and marketed phone systems
for small to medium size companies, as their Controller
and Treasurer. In early 199 Walker Telecommunications
sold their telephone system division to a Nissho Iwai,
a large Japanese trading company, and I was named
VP of Finance for this newly acquired subsidiary of
Nissho Iwai. At the start of 1995 Hauppauge Digital
Inc. was about to go public and needed to hire a CFO.
My experience at Walker Telecommunications and my
background in holding senior financial management
positions in small to midsize companies was a fit for
the CFO role at Hauppauge Digital Inc. This led to my
hiring as the CFO at Hauppauge Digital Inc. on January
16, 1995. I am the first and only CFO Hauppauge
Digital Inc. has had.
3. Do you feel it is different being a CFO of a Public
Company vs. a Private Company?
In my opinion there are differences being a CFO of
a public company versus a private company. With a
public company you need to be proficient in creating
and understanding the external reports that are
required by the SEC. You also need to understand the
rules of the stock exchange that your company is listed
on. There are strict filing deadlines that have to be met.
Your accounting and financial reporting procedures,
processes, internal controls and personnel activities
need to be geared to meet these strict deadlines. Dealing
with outside investors, banks, vendors, and customers
can be a challenge when all the warts and pimples of
your financial position are available for viewing on
the internet. You have to deal with the management
of the annual stockholders’ meeting and the creation
of your proxy statement. In addition, there are many
costs associated with being a public company that a
private company does not incur. It is also important
to be cognizant of your fiduciary responsibility to the
stockholders and the liability that is associated with
this fiduciary responsibility.
4. What are the challenges your Company faces and
how are you dealing with them?
Since 2008 the Company has experienced a downturn
in business. This had led to a string of poor financial
results which have stressed out the Company’s cash
resources. In response to this downturn, the Company
has initiated a cost reduction program. We closed nonprofitable offices and executed personnel reductions.
We also changed our product shipping and receiving
process by outsourcing the shipping and inventory
storage function to third party logistic centers in
California and Dublin, Ireland. Under this shipping and
receiving method, we pay a fee only when the product
is received and shipped to our customers. Aside from
reducing our shipping and receiving costs, this change
has enabled us to re-charaterize our shipping and
receiving expenses from a fixed cost to a variable cost
which rises and falls based on our corresponding sales
levels. We have been proactive in negotiating extended
payment terms with our vendors and rent reductions
on our leased properties. We have also been pushing
to get new products to the market and have been
evaluating entry into new geographic markets.
5. What are your other accomplishments?
At Hauppage Digital Inc. the Finance, Administrative,
MIS, Purchasing and Operations departments report
to me. As I look back on my almost twenty years as
CFO at Hauppauge Digital Inc., I have been extremely
fortunate in maintaining this dedicated staff. A large
part of my long tenure at Hauppauge Digital Inc. can
be attributed to the hard work of this smart, focused
and loyal staff. The ability to retain these dedicated
and loyal employees who have followed me through
the many challanges the Company has faced over my
tenure as CFO rates as one of my most valued other
accomplishments.
April 2014
INSTITUTE OF MANAGEMENT ACCOUNTANTS
Safe Harbor Provision For
Transactions With Success-Based Fees
Success-based fees paid to investment bankers and other financial
advisors can be the single biggest vendor expenditure in any major
acquisition or reorganization. Their treatment has caused friction
between taxpayers and the IRS for years, particularly with regard
to the type and extent of documentation required to support the
deductible portion of the success-based fee.
On April 8, 2011, the IRS released an advance copy of Rev. Proc. 201129, which provides a taxpayer-favorable safe harbor election for the
tax treatment of success-based fees paid contingent to the successful
closing of certain “covered” transactions. In lieu of documentation
required under the existing regulations, Rev. Proc. 2011-29 provides
a safe harbor that, when elected, permits taxpayers to treat 70 percent
of the success-based fee as an amount that does not facilitate the
transaction (generally deductible). In most cases a non-facilitative cost
may be deducted under normal tax accounting principles, but in some
cases it must be deferred through capitalization and amortization as
a start-up expenditure. The remaining 30 percent must be capitalized
as an amount that facilitates the transaction for federal income tax
purposes. This safe harbor election is intended to eliminate much of
the success-based fee controversy on IRS audit examinations.
Recent Guidance
To take advantage of the benefits of Rev. Proc. 2011-29, taxpayers must
attach a statement to their original federeal income tax returns for the
tax year in which the success-based fee is paid or incurred, affirming
they are electing the safe harbor method, identifying the transaction,
and stating the success-based fee amounts that are deducted and
capitalized. An election under Rev. Proc. 2011-29 is irrevocable and
applies only with respect to all success-based fees paid or incurred
by the taxpayer in the transaction for which the election is made.
The safe harbor election is effective for success-based fees paid or
incurred in taxable years ending on or after April 8, 2011. In the case
of a calendar-year taxpayer, this revenue procedure applies to the
taxable year ending Dec. 31, 2011, and future taxable years.
Background
Taxpayers must capitalized amounts paid to facilitate transactions
including acquisitions of assets that constitute a trade or business, stock
acquisitions, stock issuances and any restructuring, recapitalization
or reorganization of the capital structure of a business entity. This
capitalizaiton requirement generally applies to both taxable and taxfree reorganizations. But Treas. Reg. section 1.263(a)-5(e) provides an
exception to this general rule, through an exclusion for transactions
considered “covered,” which include taxable acquisitions of assets that
constitute a trade or business, taxable acquisitions of an ownership
interest i which the acquirer and target are related immediately
afterward (through attribution as specifically defined by statute) and
for certain tax-free reorganizations, including statutory mergers, and
stock-for-stock or stoc-for-asset transactions.
Under this regulation, success-based fees are presumed to facilitate
a transaction and, therefore, must be capitalized rather than
deducted immediately or treated as start-up expenditures. Yet, this
presumption can be challenged for certain “covered” transactions if the
taxpayer maintains sufficient and contemporaneous documentation
establishing that a portion of the success-based fee is allocated to
activities that do not facilitate the transaction. Documentation consists
of time records, itemized invoices and “other records” that identify
the activities performed, the fee allocated to those activities, the date
of performance and the service provider’s contact information.
Page 6
by Randy A. Schwartzman, CPA, MST
The tax benefit of securing a deduction for transaction costs generally
inures to the benefit of the party responsible for the expenditure.
When target costs are reclassified from captialized costs to ordinary
and necessary expenditures, the benefit is a direct offset to taxable
income of the target entity. This is especially true if the target company
pays the deal expenses directly, or otherwise agrees to reimburse the
transacting parties for their expenditures. If the costs are borne by
the sellers in the transaction and are not reimbursed, the capitalized
costs would offset the sales proceeds. When the costs of the target
shareholders are capitalized in a stock acquisition, they are added
to the shareholders’ respective tax basis in the stock. And in the
acquisition, they are added to the basis of the acquired assets. The
period of amortization or depreciation would follow the respective
depreciable or amortizable lives of the capitalized assets.
Using the Election
Although this revenue procedure is expected to eliminate much
of the conflict between taxpayers and the IRS with its safe harbor
for deducting success-based fees, there are several factors that can
influence a taxpayer’s ability to take advantage of it. Taxpayers
currently undertaking or considering merger and acquisition
transactions that will incur significant service provider costs, which
includes many private equity and venture capital firms, should
strongly consider having a qualified public accounting firm perform
a transaction cost study of both success-based and non-success-based
fees to determine the most favorable position.
Immediate Deduction or Start-Up Cost
If the purchasing entity acquires the corporate stock of a target entity
(or the assets that constitute the trade or business of that target entity
in a covered transaction), and the purchaser is currently in the same
line of trade or business as the target, the portion of expenses that
do not facilitate the transaction is immediately deductible by the
purchaser under IRC section 162 as an ordinary business expense.
Accordingly, a safe harbor election under Rev. Proc. 2011-29 can result
in an immediate deduction for 70 percent of the success-based fees
paid by the purchaser. If the purchaser is not in the same trade or
business as the target, the costs incurred that are not facilitative of
the transaction, including 70 percent of the success-based fee must be
capitalized. These costs would generally be amortizable over 15 years
under IRC section 195, which is often the case when a financial buyer
is considered to have entered a new industry or trade or business as
a result of a new stock or asset acquisition.
In business acquisitions by financial buyers such as private equity firms
or venture capitalists, new burrowings and capital from the financial
buyer often fund Newco’s purchase of the target’s stock or assets. A
portion of the financial buyer’s success-based fee should be allocated
away from the equity transaction and over to the financing, based
on the percentage of time spent putting the deal together relative to
the percentage of time spent on the financing. An amount paid to
facilitate a burrowing is not facilitative of another transaction, so the
financial buyer has two separate transactions.
While the success-based fee allocated to the equity transaction is
covered under Rev. Proc. 2011-29, the debt issuance costs are covered
under Treas. Reg. section 1.446-5. While taxpayers should be able to
recover those costs through ratable amortization deductions over the
life of the loan, they must obtain proper documentation to substantiate
the allocation of success-based fees to the debt origination and the
covered transaction.
April 2014
INSTITUTE OF MANAGEMENT ACCOUNTANTS
Page 7
Tips & Tricks Scanning & Storing Business Cards in Outlook 2010
Save time and get organized by storing your business contacts online. If
you have Microsoft Outlook 2010 and a printer, you have the capability to
do just that!
From your Outlook Inbox, select “New Items”, then from the drop-down list
click “Contact.” (See Figure 1)
Click anywhere in the “Notes” section of the new Contact form, then on the
“Insert Tab” in the “Illustrations” group, select “Picture”. Navigate to the
location on your hard drive where you have saved a scanned business card
(you can scan both sides of the business card if there is additional information
on the reverse), and click “Insert”. (See Figure 2)
Figure 1: Creating a
New Contact
Outlook imports the business card into the “Notes” section of the New Contact form.
Figure 2: Locating and Inserting a Business Card
Figure 3: Business Card Located in Notes Section
For sponsorship opportunities contact Lori Catapano, VP of Sponsorship
at [email protected] or call 631-719-3221
Gail L. Trugman-Nikol
(516) 935-5641 | [email protected]
Cell: (516) 713-6325 | Fax: (516) 935-4101
P.O. Box 7777 | Hicksville, NY 11802
www.UBSassociates.com
Joseph A. Giacinto
unique
Chief Executive Officer
(516) 338-5454 Ext 23
Fax (516) 338-4479
[email protected]
www.pbipayroll.com
business solutions
Your Process. Staff Knowledge. | IDENTIFY • DOCUMENT • PROTECT
Peter Papagianakis
Steven J. Kuperschmid
c 516.672.3143
[email protected]
marvin rosen
516.479.6329 • [email protected]
100 Jericho Quadrangle, Suite 300, Jericho, NY 11753
1983 marcus aVENuE suitE c130 lakE succEss, Ny 11042
t 516.390.3666 F 516.390.3667 c 516.526.3764
[email protected]
www.rampartiNsuraNcE.com
Peter Papagianakis
22 Jericho Turnpike; Suite 100-East
Mineola, NY 11501
office: 516-280-8600
fax: 516-740-0761
1375 Broadway (37 St.); Suite 300
New York, NY 10018
office: 646-862-1210
fax: 646-292-5121
April 2014
INSTITUTE OF MANAGEMENT ACCOUNTANTS
IMA Student Activities
Page 8
by Marvin Rosen, The Rampart Insurance Group
Post University - A New Chapter Opens?
Jim Smith and I had the pleasure of attending LIU Post Alpha Beta Si/Accounting Clubs February meeting where we met
with Ed Valenski facility advisor, and Ilene Persoff, Professor of Accounting as well as Alyssa Sciarratta, President of LIU
Post Accounting Society/Beta Alpha Psi and Christina Principato Vice President. The 30 student attendees were all very
enthusiastic and professional in their questions to us and answers to our questions.
Our goal was to educate the students to all of the possibilities that an Accounting and Business Major can lead to in
both public and private accounting and open their eyes to a world of
opportunities that they might not otherwise see for many years. This
is where the IMA can open both eyes and doors for our local students.
The benefits of an IMA student membership are many: networking,
publications, educational resources, internships and job opportunities. We
like to say that Alpha Beta Si and Accounting Clubs give the Students their
entry into the professional world while the IMA provides the students with
the roadmap and the tools to excel and grow in the Business Community
throughout their entire careers.
Jim Smith and I both felt very gratified to receive an email the very next
day from Alyssa Sciarratta, president of LIU Post Accounting Society/
Beta Alpha Psi asking for information about opening an IMA Student
chapter at LIU Post and that several of the students were looking forward
to attending our next IMA meeting.
To the Facility and Students at LIU Post, the IMA Long Island Chapter
would like to say “Thank You” for the opportunity to participate this
exciting event!
The 95th IMA’s Annual
Conference & Exposition
June 21 – 25, 2014 | Hilton Minneapolis, Minnesota
Discover your future in accounting and finance by enhancing
your knowledge, networking with business colleagues, and becoming
a top liner in the latest professional standards and trends.
Enjoy IMA’s rich history, dynamic speakers,
and destination just waiting to be explored.
Read more at www.imaconference.org
April 2014
INSTITUTE OF MANAGEMENT ACCOUNTANTS
Page 9
2013-2014 Dinner Meeting Schedule
May 13th, 2014
FINANCIAL EXECUTIVE OF THE YEAR AWARD DINNER
June 10th, 2014
IMA <> AANG <> TMA Joint Meeting
Quarterly Breakfast Series
April 29th, 2014
PCI Compliance & Data Privacy
July, 2014
To be Decided
New Members:
Send or bring a friend or business associate to an IMA meeting!
Your help is needed to keep our Chapter growing. Please submit the name of a prospective
candidate who might be interested in IMA membership to our Vice President of Membership:
Karen Goldberg
WeiserMazars LLP
60 Crossways Park Drive West, Suite 301 • Woodbury, NY 11797
Phone (516) 488-1200 • Direct: (516) 620-8760
Email: [email protected] • [email protected]
Your Newsletter Editor
Your newsletter editor is always looking for information about you and other chapter
members, as well as significant issues concerning our Long Island community relative
to accounting and business matters. Please forward all personal notes for possible
inclusion in the newsletter to the editor:
Gail L. Trugman-Nikol
Unique Business Solutions, Inc.
P.O. Box 7777 • Hicksville, NY 11802-7777
P (516) 935-5641 • F (516) 935-4101 • C (516) 713-6325
Email: [email protected] • [email protected]
Visit our website at
http://longisland.imanet.org