2005 Board Meetings and Agendas
Minutes of a Meeting of the Board
Time and Place of Meeting:
Friday, July 29, 2005 - 9:02 a.m. - 2:33 p.m.
The Heathman Lodge
7801 NE Greenwood Drive
Robin A. Clark, CPA, Chair
Ronald D. Sabado, CPA, CMA, Vice-Chair
James W. Caley, CPA, Board Member (participated via phone)
Edwin G. Jolicoeur, CPA, Board Member
Rufino R. Moraleja, CPA, Board Member
Sharron O'Donnell, CPA, Board Member
Mien Julia Tai, CPA, Board Member
Laurie J. Tish, CPA, Board Member
Mary M. Tennyson, Senior Assistant Attorney General
Richard C. Sweeney, CPA, Executive Director
Sandra Shoemaker, CPA, Deputy Director
Call to Order
Robin A. Clark, CPA, Chair, called the Board meeting to order at 9:02 a.m.
The minutes of the April 29, 2005 board Meeting were unanimously approved as presented.
Executive Session with Legal Counsel
At the request of Mary M. Tennyson, Senior Assistant Attorney General, the Board went into Executive Session to discuss legal matters.
Legal Counsel's Report
Mary M. Tennyson, Senior Assistant Attorney General updated the Board on the status of the Marilyn Greenen case and the Franco Martin and Albinson case. Mary will research the allowable use of email for communications between Board members relating to matters subject to the Administrative Procedures Act.
The Board Chair, Robin Clark, welcomed:
- Richard C. Sweeney, CPA, as the newly appointed Executive Director
- Edwin G. Jolicoeur, CPA as a newly appointed Board Member
- Laurie J. Tish, CPA, as a returning appointed Board Member
Dinner Meetings with Stakeholders
The Board Chair reported on the July 28th dinner meeting with stakeholders and discussed plans for future stakeholder dinner meetings. The Board resolved to call a special meeting of the Board for Thursday, October 27, 2005 in Spokane to hold a dinner with local area stakeholders.
NASBA Annual Meeting
The Board Chair noted that the 2005 Annual National Association of State Boards of Accountancy (NASBA) Meeting will be held October 30 - November 2, 2005 in Tucson, Arizona. The registration deadline is September 19, 2005. Robin asked that those Board members wanting to attend the meeting contact Board staff.
The Board consolidated the following four existing Board Committees into a new "Request Review Committee:"
- CPE Waiver Committee
- Firm Name Committee
- Late Fee Waiver Committee
- Professional/Educational Organization Committee
The following Board members volunteered to serve on the new Request Review Committee:
- Robin Clark, Chair
- James Caley, Member
- Julia Tai, Member
CPA Exam Liaison Report
Robin Clark, Committee Chair, reported on NASBA's presentation at the 2005 Western Regional Meeting held in June in Alaska concerning the CPA exam. Robin announced that she and Rick Sweeney, Executive Director, will attend the NASBA CBT Examination Symposium in Washington DC on September 14, 2005.
Julia Tai reported that Committee Members plan to attend some of the Board pre-approved courses on ethics and regulations applicable to the practice of public accounting in Washington State to ensure the courses are covering the required material.
Education Rule Review Committee
Ronald Sabado, Committee Chair, presented a draft response to NASBA's Exposure Draft of Uniform Accountancy (UAA) Rules 5-1- and 5-2 issued on July 19, 2005. This draft is the product of the 2003-2004 NASBA Education Committee's 150-Hour Task Force. The deadline for response is August 26, 2005. The Board unanimously approved the draft response with the understanding that additional comments from Board members will be incorporated into the response. The Board directed the Executive Director to send the final response to NASBA by the response deadline.
The Education Rule Review Committee Charter was presented at the April 29, 2005 regular Board Meeting. Robin Clark, Board Chair, announced that no comments were received from any Board member concerning changes to the Charter. The Charter was approved by unanimous consent.
Incidental Practice Committee
James Caley, Committee Chair, announced that the Committee met briefly at NASBA's 2005 Western Regional Meeting in Anchorage on June 24, 2005. Currently, staff is conducting a quick poll of the states to determine which states have authority to investigate and sanction their licensees based on a complaint from an out-of-state client. Staff is also compiling a list of questions received from practitioners concerning incidental practice for the Committee's review.
Legislative Liaison Committee
James Caley, Committee Chair, stated that the Committee plans to submit departmental request legislation for the 2007 legislative session. One item that will be addressed is the use of the "CPA-Retired" title. Mr. Caley asked that Board members contact him if they believe other issues should be included in the 2007 departmental request legislation.
Ronald Sabado, Committee Chair, has developed a one-hour Power Point presentation of Board activities. He is currently testing this presentation and it will be available for other Board members to use shortly. Mr. Sabado will be giving a presentation to the Spokane chapter of the Association of Government Accountants on October 27, 2005.
Policy and Rule Review Committee
Sharron O'Donnell, Committee Chair, presented the proposed Committee charter. The Board unanimously approved the charter with the following amendments:
- Rick Sweeney, Executive Director, is to be assigned as the staff member serving on this Committee, and
- Minor changes were made to the "Standards for Recommendations" section of the charter.
Next steps - The Committee will work with the Executive Director to identify non Board members to serve on the Committee.
Practice Review Committee
Thomas J. Sadler, CPA, Committee Chair, reported on the AICPA Peer Review Board meeting he attended in Puerto Rico on May 2 and 3, 2005. Mr. Sadler announced that there is a national interest in the issue of peer review:
- NASBA is proposing the establishment of a NASBA group to perform national oversight of peer review boards
- The AICPA has created a new task force on peer review. The task force will review the peer review standards, peer reviewer qualifications and user needs. Mr. Sadler announced he had been appointed to this task force. The first meeting of this task force is scheduled for August 10, 2005.The Practice Review Committee has postponed meeting with the Washington Society of CPAs (WSCPA) Executive Peer Review Committee until more information is obtained from the NASBA and AICPA initiatives.
Edwin G. Jolicoeur, CPA, Board Member volunteered to join the Practice Review Committee. Ed will begin his service on this Committee immediately.
Sharron O'Donnell, Committee Co-Chair, reported the Committee has audited six experience affidavits since April 2005 and all six have been acceptable. The Committee has selected three more experience affidavits for review this month.
Quality Assurance Review (QAR) Committee
Sandra Shoemaker, CPA, Deputy Director presented a report on the results of the Board's 2005 QAR desk review session that was held June 13-14, 2005.
CPE Waiver Committee
No waiver requests were received since the last Board meeting.
Firm Name Committee
During the last quarter, no firm name approvals were requested.
Late Fee Waiver Committee
No waiver request were received since the last Board meeting.
Professional/Educational Organization Committee
During the last quarter, no requests for recognition were received.
Tom Sadler, CPA, NASBA Director-at-Large reported to the Board on the following NASBA activities:
- There will be a meeting of the NASBA Center for Public Trust on September 15, 2004 in Washington D.C. The Board Chair, Robin Clark, and the Executive Director, Rick Sweeney, will attend this meeting.
- A new UAA exposure draft will be issued shortly concerning professional standards and ethics improvements. This draft will include peer review transparency and mobility issues. The Board directed Board staff to forward the draft to the Board's Incidental Practice Committee and the Policy and Rule Review Committee for review and draft response. The Board will hold a special teleconference to discuss the response to this UAA exposure draft.
- NASBA's Compliance Assurance Committee has proposed the creation of a Compliance Assurance Review Board (CARB) to provide national oversight of peer review boards. Mr. Sadler is the Chairman of this Committee.
The Board reviewed the AICPA's Exposure Draft "Omnibus Proposal of Professional Ethics Division Interpretations and Rulings." The Board decided not to comment on this exposure draft.
Motions for entry of Order on Default
Abdulkhaliq A. A. Kodarzi, CPA-Inactive - The Board reviewed the "Motion for Entry of Order and Default" and related documents in the matter of Abdulkhaliq A. A. Kodarzi. The Board entered Findings of Fact, Conclusions of Law and Default Order.
The Board determined Abdulkhaliq A. A. Kodarzi's failure to respond to Board inquiries concerning the Abdulkhaliq A. A. Kodarzi's inclusion in the audit of the ethics portion of the January 1, 2001 to December 31, 2003 Continuing Professional Education (CPE) reporting period violated the Public Accountancy Act and Board rules. The Board suspended Abdulkhaliq A. A. Kodarzi's CPA certificate, and eligibility to apply for an individual license to practice public accounting and/or a CPA firm license for one year. As conditions for reinstatement, Abdulkhaliq A. A. Kodarzi must submit a complete reinstatement application including original documentation supporting the satisfactory completion of qualifying Continuing Professional Education (CPE) required for reinstatement; reimburse the Board $1,100 for costs; pay a $500 fine; and complete the AICPA's course Professional Ethics for CPAs with a score of at least 90%. Abdulkhaliq A. A. Kodarzi may apply for reinstatement after serving 90 days of the suspension provided Abdulkhaliq A. A. Kodarzi fully responds to the Board's inquiries.
Peter Slowiaczek - The Board reviewed the "Motion for Entry of Order and Default" and related documents in the matter of Peter Slowiaczek, Mr. Slowiaczek's "Motion for Continuance in Default Proceedings," and the "Response to Motion for Continuance of Default Proceedings." The Board granted the continuance provided Mr. Slowiaczek surrenders his license and continues to participate in the disciplinary process. If Mr. Slowiaczek refuses to do either, the Board will enter the order of default. Mary Tennyson, Senior Assistant Attorney General will prepare an Order for the Chair's signature.
Delegation of Authority
The Board reviewed the proposed Delegation of Authority by the Board Chair, Robin Clark, providing the Executive Director with the authority to perform functions necessary in the investigation and disciplinary process. After discussion, it was agreed that Robin Clark would sign this Delegation.
The Board voted to authorize the following proposed Delegations of Authority:
- A Delegation of Authority providing the Board's Technical Consultant, Thomas Sadler, with authority to perform certain duties during the course of investigating specific cases for the Board.
- A Delegation of Authority providing the Board's Technical Consultant, Thomas Sadler, with authority to perform certain duties during the course of investigations under the direction of the Executive Director.
Executive Director's Report
- Investigation Management Report - The Executive Director reviewed the Investigation Management Report with the Board and discussed administrative strategies for caseload management.
- WBOA-NEWS - As of July 29, 2005, 800 individuals have subscribed.
Public comments were presented to the Board by the following individuals:
- Jerry Miller, Washington Association of Accountants
- Rich Jones, Washington Society of CPAs
- Judy Love, Washington Society of CPAs
- Antonio Laliberte, Washington Society of CPAs
The regular Board meeting was adjourned at 2:33 p.m.