Subject: [repost] CPA recommendation by HQ

From: dong (D.C.)
Date: Tue, 18 Jan 94 18:24:35 CST

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**** Subject: Recommendation on CPA Bidding

DATE:     January 10, 1994
TO:       IFCSS Council and SVC
FROM:     IFCSS HQ
SUBJECT:  Recommendation On the CPA Bidding To Professionalize
          the IFCSS Accounting System

Since forwarding the four CPA proposals for the bid to
professionalize the IFCSS accounting system, we have received
many responses and enquiries from members of the Council and SVC.

Based upon the following three criteria:

1.   The professional reputation and experience;
2.   That the firm's proposed service and business profile
closely fit the need of IFCSS as a non-profit organization within
the CSS community;
3.   The cost;

the IFCSS HQ recommends that Jeff W.S. Lin proceed to take up the
task of helping professionalizing the IFCSS accounting system,
which includes (though not limited to):

1.   Compiling all IFCSS financial transactions and records since
and including last term (the fourth term) in accordance with
Statements on Standards for Accounting and Review Services
regarding non-profit organizations issued by the American
Institute of Certified Public Accountants;

2.   Providing Evaluation Report on the general conditions of the
IFCSS accounting system, and on any possible material errors,
irregularities or illegal acts;

3.   Making policy suggestions on IFCSS accounting format,
control and management to promote professionalization.

Here are some of the considerations that lead to our
recommendation:

Mr. Jeff W.S. Lin is a well-established CPA in the DC area. His
company has an efficient staff and a business profile that
closely fit the need of the IFCSS. This is clearly reflected in
his proposal, which we think is the best among the four. Not only
his clients are mostly non-profit organizations like IFCSS, the
National Endowment For Democracy (NED) has hired his company to
conduct external auditings to organizations receiving NED funds.
The quality of his company's professional service is well
recognized in the community here. The company will charge a flat
fee of $2,600 (in two installments) for the service.

Myint & Buntua and Cohen Rutherford Blum & Schott, PC are also
well recognized CPA firms in the DC area. Both of them have
strong background in non-profit organizations. However, their
charged fees may be higher than we can afford. Both companies
declined to give a flat fee for the service, but provided
estimated fees ($2,720 by Myint & Buntua and $2,325 by Cohen
Rutherford Blum & Schott, PC). If they need to work beyond the
estimated hours, additional fees will be billed at a hourly rate
($80 per additional hour by Myint $ Buntua and $105-200 per
additional hour by Cohen Rutherford Blum & Schott, PC). Some of
the service (for instance, making control and policy suggestions,
setting formatting procedures) may not be included in the
estimate, and therefore may incur unpredictable hourly fees to
complete.

Terry T. Fang, a CPA entrepreneur, asked a flat fee of $800 for
the service proposed, which is the most economical among the
four. However, his business profile, experience, background and
supporting staff are not as strong as the other three firms.
During the interview with the HQ, he asked far fewer questions
than the other three CPAs regarding the IFCSS accounting. We are
not sure that he fully appreciates the complexity of the IFCSS's
multi-aspects of financial activities. And he is unable to
impress us with the kind of quality service that will satisfy the
IFCSS needs.

The above is our opinion, and you are encouraged to make further
inquiries either to the HQ or to the CPAs directly. As we expect
the designated CPA to complete the aforementioned three tasks
before the Feb 5-6 Working Meeting in DC, we urge the Council to
adopt a resolution of designation as soon as possible. However,
if the Council is unable to reach a vote or verdict by January
14th, the HQ will proceed as this memo has recommended while
continuing to seek the Council's endorsement.

We will arrange to have the designated CPA to meet with each of
you when you come to DC, and to present to the Council and SVC
the re-compiled IFCSS accounts along with evaluation report and
policy suggestions over IFCSS accounting control, format and
management. The HQ is confident that together we may further
reform and refine our accounting system towards greater
professionalization and accountability.

Again, we have attached the four CPAs' original proposals for
your reference. Thank you.