PRSA’s 2016 audit showed revenues of $11,363,861, a decline from $11,600,526 in 2015, and from $11,426,867 in 2006. Operating loss was $185,226.

PRSA

The Society, posting the results in the members-only area of its website seven months after the close of the year, continued its policy of booking dues immediately as cash instead of over the course of the year, as required by Rule 958-605-2-1 of the Financial Accounting Standards Board.

Since dues were $5,145,227 in 2016, this boosted net assets by about $2.5M to $5,650,683.

Steve Pisinski, treasurer in 1998 and 2000 chair, wrote the membership that he was fed up with “dime store” accounting that misled members and would start boosting DD to the required level.

It went from $198,746 to $813,116 in 2000. PRSA had DD of $904,767 on dues of $2.1M in 1991but this was drawn down to $169,530 by 1995 to inflate the net assets figure.

Steve PisinskiSteve Pisinski

Pisinski told auditor Deloitte & Touche to start counting dues the correct way and the DD for 1999 was restated as $425,309 (from $198,746). The 2000 DD account soared to $813,116. PRS was on the road to honesty. With dues income of $3.1M in 2000, the DD should have been closer to $1.5M.

The reforms of Pisinski, who died suddenly in 2002 at the age of 52, did not last long.

“Big Four” CPA Firm Was Fired

Deloitte & Touche, the “Big Four” CPA firm of the Society that was carrying out Pisinski’s directive, was canned the next year, replaced by Sobel & Co., Livingston, N.J.

Instead of going up, the DD headed down again, to $566,459 in 2001 and $389,941 in 2002.

The 2016 audit by PKF shows a DD of $338,220.

Pisinski Challenged APRs

The Strategic Planning Committee of 1999, headed by Pisinski, unanimously urged that APR be removed throughout the bylaws including as a condition for the Assembly or committee service.

The 1999 board, headed by Sam Waltz, rejected the recommendation and fought attempts to remove the rule.

Pisinski was a renegade chair to the press-hostile national leaders. Disregarding the rule that reporters could not enter the “sacred” Assembly area, he let this reporter sit in the first row of the 2000 Assembly. We had not sat among the delegates since 1994 when COO Ray Gaulke came down from the stage, took us by the arm as we sat, as usual, with the New York delegation, and marched us to the back of the room with orders never, ever to set foot in Assembly area.

The strain of fighting the national leaders from 1998-2000 may have affected Pisinki’s health.

He had a heart attack while sleeping May 14, 2002, and died at California Pacific Medical Center. He left his wife, Patrice, and two children under ten, Statia and Steve.

Friends, including Joann Killeen, 2002 president of PRSA, said he was not known to be ill. She called news of his death “truly devastating.”

This reporter also feels that stress involved in working for PRSA may have contributed to the death of VP-PR Arthur Yann June 13, 2013. Yann, 48, died of a heart attack while on the train to his home in Fairfield, Conn.

PRSA Aided PR Week/U.S.

Gaulke wrote a letter to advertisers and leaders asking them to support with advertising and subscriptions PR Week which debuted in the U.S., in 1998, Pisinski condemned Gaulke and the board for interfering in the private marketplace.

PRS had no business supporting one of the PR trade publications, he said.

The Society’s support included letting PRW/U.S. use its 19,000 membership list for the initial circulation for an unknown period of months.

The $312,236 decline in revenues from 2015 included dues dipping to $5,145,227 from $5,221,843; accreditation to $173,363 from $224,785; national conference to $1,301,132 from $1,611,368, and publications to $476,118 from $528,325.

With the addition of investment income of $149,548, the loss was cut to $35,668.

The stock market rise has helped investments climb to $3,452,065 as of Dec. 31, 2016. There were also certificates of deposit worth $1,750,000 on that date.

Salaries of the top seven PRSA staff members, which are in IRS Form 990, will not be revealed until November or later. This reporter has emailed and faxed to CEO Joseph Truncale and PR staffers a request for a copy of the 990 and also for press credentials at the 2016 national conference Oct. 8-10 in Boston. No reply nor acknowledgement of receipt of the requests has been received.