Phyllis Bernstein, CPA: inadequate financial disclosure at AICPA is raising members' concern. We all want transparency.

In today's financial environment in which the PCAOB and other oversight organizations are bearing down, it is critical that financial statement information is transparent.

The six accountants who formed the organization, CPAs Reforming Our Profession (CROP), believe the accounting profession should be concerned when the financial statements of the world's preeminent accounting association, AICPA, lack transparency forcing them to ask myriad questions of management, causing mistrust all around.

CROP's founders, Andrew Blackman, Mitchell Freedman, Harold Katz, John Levy, Stan Mills and Kendall Wheeler, are frustrated in their attempts to understand the business practices, financing and reporting of the AICPA and its consolidated entities. To that extent, CROP has questioned data they found unclear and requested information which, in their opinion, was dribbled to them in small batches without enough "meat on the bones" to answer their questions. Their work is shocking those of us in the profession taking time to look at their exhaustive work.

CROP's concern is that financial statements issued by the Institute (http://www.aicpa.org/about/annrpt/2003-2004/index.html) and management reports presented at various council meetings have not included enough information to explain clearly how the AICPA operates.

One CROP leader, Mitchell Freedman, says the AICPA's financial position appears to be in ruin despite increases in dues approaching 50 percent over the past five years. He believes the financial statements obfuscate this fact.

CROP feels that the financial statements and notes are just not transparent. The AICPA has blown millions of dollars in members' reserves on failed, management-led initiatives, none of which have panned out as originally trumpeted by management. At the recent council meeting in Washington, D.C., which Freedman attended at his own expense, AICPA management reported huge additional capitalization of deferred costs for the CPA exam this year even though the computerized exam was introduced with four months remaining in the last fiscal year. Stan Mills says, "There are now 11 holes in the dike, and the AICPA just ran out of fingers; now it's just a matter of time."

Frustration has caused CROP to go public with its concerns after years of analysis and large amounts of time and money. Additionally its members have endured the politics which, typical to most large organizations, inures to "troublemakers." CROP perhaps is perceived as trampling on sacred ground or invading the turf of others who appear to be reacting defensively. AICPA Chairman Bunting distributed a letter saying, "AICPA staff is working to assemble certain working schedules and other information which will be delivered to CROP in the near future."

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Because I care about the AICPA, my interest is in getting you to click on the CROP report so you can arrive at your own conclusions. After you click on the CROP report, http://www.cpas4reform.com/aicpareports.htm and become concerned, consider contacting your council members with your thoughts, so if CROP is correct, the next set of financial statements may be an example of the best practices of the accounting profession. You can click on to https://volunteers.aicpa.org/Default.aspx#null to find the name of your state's representatives.

In my opinion, a not-for-profit organization should issue financial statements in which the numbers "get up and dance" and tell the story of what's happening. Perhaps future financial statements could include footnotes with clear explanations or could offer expanded Management Discussion and Analysis. The day of the "white shoe board" is over. Some states have required PCAOB types of oversight in the not-for-profit sector. In fact, boards of many organizations are now assuming responsibilities similar to that of the for-profit organization. Boards should be aware that their members are watching.

As proud CPAs, we should be ashamed that the financial information provided by our Institute was so insufficient it prevented a group of concerned CPAs to understand their own organization's statements. It is not unusual to ask for supplemental information, but this situation has gone too far. It should never have happened in the first place. Financial reporting clarity is the answer. This should be fixed.