2005 Board Meetings and Agendas
Minutes of a Meeting of the Board
Time and Place of Meeting:
Friday, October 28, 2005 - 9:00 a.m. - 1:30 p.m.
The Ridpath Westcoast Hotel
515 West Sprague Avenue
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
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 9:00 a.m.
The minutes of the July 29, 2005 board Meeting were unanimously approved as presented.
Robin Clark, Chair, announced that a disciplinary matter would be added to the agenda at the end of the meeting and would be discussed in Executive Session.
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 pending court action related to the Board's current cases.
Dinner Meetings with Stakeholders
The Board Chair reported on the October 27th Special Meeting held in Spokane to meet with local practitioners over dinner.
The Chair announced that Astrid Aamot has resigned from the Board. The Governor's Office is currently accepting applications for this vacant position.
Election of Officers - 2006
The Chair presented the following slate of officers to serve in 2006:
- Chair - Ronald D. Sabado, CPA
- Vice-Chair - Sharron J. O'Donnell, CPA
- Secretary - Mien Julia Tai, CPA
No other nominations were made from the floor. A motion was made and seconded to cast a unanimous vote for the slate of officers as presented. The motion passed unanimously. The new officers will assume their duties effective January 1, 2006.
Temporary Appointment - Secretary
The Board unanimously voted to appoint Sharron O'Donnell, CPA to serve as the Board's temporary Secretary in place of Astrid Aamot until December 31, 2005.
The Chair announced that Mien Julia Tai, CPA will become the Chair of the Board's CPE Committee.
CPA Exam Liaison Report
Robin A. Clark, CPA, Committee Chair, on the NASBA CBT Examination Symposium held in Washington DC on September 14, 2005.
Julia Tai, Committee Chair, reported that she plans to attend some of the Board pre-approved courses on ethics and regulations applicable to the practice of public accounting in Washington State during January 2006. Julia asked any Board members who would like to participate to contact her. Julia also asked the Board members and staff to advise her of anyone who might like to serve on this Committee.
Education Rule Review Committee
Ronald Sabado, Committee Chair, announced that the Board's response to NASBA's Exposure Draft of Uniform Accountancy (UAA) Rules 5-1 and 5-2 was sent to NASBA. This item is on the NASBA Annual Meeting agenda. The NASBA Annual Meeting will be held October 30 - November 2 in Tucson, Arizona.
Ron noted that the Committee plans to develop a survey to send to stakeholders concerning the Board's 150-hour education requirement, and the Board's policy 1998-1 needs to be updated.
Incidental Practice Committee
James Caley, Committee Chair, announced the Committee and the Practice Review Committee met by telephone on August 26, 2005 to review the exposure draft issued August 1, 2005 by the AICPA and NASBA Uniform Accountancy Act Committees. This exposure draft includes recommended changes to the Uniform Accountancy Act regarding peer review transparency and mobility issues. The Executive Director mailed a letter of support to the AICPA and NASBA on September 29, 2005.
Laurie Tish reported the AICPA and NASBA Uniform Accountancy Act Committees will meet with the AICPA and NASBA members on November 11, 2005 to discuss the exposure draft.
Legislative Liaison Committee
James Caley, Committee Chair, stated that although the agency will not submit any departmental request legislation in 2006, the Committee and staff will monitor the 2006 legislative session and will advise the Board of any bills that may impact the profession.
Edwin G. Jolicoeur, Board Member, volunteered to serve on the Committee along with James Caley.
Richard C. Sweeney, Executive Director, announced that the agency had recently hired Thomas J. Sadler, CPA. Mr. Sadler will serve as the agency's legislative liaison as part of his duties.
Ronald Sabado, Committee Chair, noted that the October 27th Special Meeting held in Spokane to meet with local practitioners over dinner was very successful. All of the comments made by the practitioners had been recorded. Ron also reminded the members of the public in attendance at the Board meeting that the Outreach Committee is available to do presentations for any group.
Policy and Rule Review Committee
Sharron O'Donnell, Committee Chair, reported that the Committee and the Executive Director are currently working to identify non Board members to serve on the Committee.
Practice Review Committee
Sharron O'Donnell, Committee Co-Chair, reported the Committee has been auditing experience affidavits since 2003. During that time, none of the experience affidavits have been challenged by the Committee; however, one individual requested his application not be processed once he received the audit notice. The Committee will review three more experience affidavits in November. Due to tax season, experience affidavits will not be reviewed again until April 2006.
Quality Assurance Review (QAR) Committee
Sandra Shoemaker, CPA, Deputy Director, reported that the 2005 QAR desk review session will be held on June 13 and 14, 2005. A report on the results of the desk review session will be presented at the next Board meeting.
Sandra Shoemaker, CPA, Deputy Director, reported the QAR Committee will hold its annual meeting on November 4, 2005. At the annual meeting, all current QAR Committee members will be asked to volunteer for the 2006 calendar year, and officers will be elected. The Committee will present a list of volunteers for appointment by the Board at the January 2006 regular Board meeting.
Request Review Committee
Robin Clark, Committee Chair, reported the following activity:
- CPE Waiver Requests - None were received in the last quarter.
- Late Fee Waiver Requests - None were received in the last quarter.
- Firm Names - During the last quarter the following firm names were approved:
- Estate Solutions
- Arch Accounting and Tax Services, PLLC
- KOM Consulting
- Professional/Educational Organization - Recognition Requests - During the last quarter the following organization was denied:· Northern Trust Bank
Executive Director's Report
- Governor's Board and Commission Training
The Executive Director announced the Governor's Office will host a training conference and reception for all Board members on December 13, 2005. Board members who wish to attend need to make reservations with Board staff as soon as possible.
- 2006 Board Meeting Locations and Dates
After discussion, the Board established the following schedule for the 2006 regular Board Meetings:
- January 27, 2006 - SeaTac
- April 28, 2006 - SeaTac
- July 28, 2006 - Bellingham
- October 27, 2006 - Spokane
- Personnel Addition
The Executive Director announced that Thomas J. Sadler, CPA, ABV, CFE, joined Board staff as Strategy Advisor/Investigator on September 16, 2005.
As of October 28, 2005, 827 individuals have subscribed.
- Investigation Management Report and Enforcement Process
The Executive Director reviewed the Investigation Management Report with the Board and discussed administrative strategies for caseload management.
The Executive Director asked for direction from the Board concerning thirteen (13) cases currently under review.
After discussion, a motion was made and seconded to give the Executive Director authority to resolve the 13 cases (both individuals and firms) as proposed allowing non-publication for a first time lapse of an individual or firm license. The motion also directed the Executive Director to submit to the Board at the January 2006 Board meeting refinements and suggestions for additional situations that merit non-publication. The motion was passed with six votes to approve and one abstention.
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
Ex Parte Motion for Order of Summary Action
Richard A. Swan, CPA The Board reviewed the "Ex Parte Motion for Order of Summary Action" and related documents in the matter of Richard A. Swan, CPA, in Executive Session. The Board entered an Ex Parte Order for Summary Action. The Board determined Mr. Swan's fiscal dishonesty with respect to a client funds; his negligence in failing to honor a commitment to prepare clients' income tax returns; his negligence in failing to return original client records so that his clients could timely file tax returns with the U.S. Department of Treasury, Internal Revenue Service (IRS); his violation of the ethics and prohibited practice demonstrated in part by his unavailability to clients by telephone, personal contact, or mail; and his failure to cooperate with the Board by not responding to Board inquiry presents an immediate danger to the public health, safety, or welfare requiring immediate Board action. The Board ordered the summary suspension of Richard A. Swan's CPA certificate and practice licenses pending further disciplinary proceedings by the Board.
The Board also authorized the Executive Director to pursue proper legal remedies to place the records of Richard A. Swan, CPA, individual and firm, in the hands of a receiver.
The regular Board meeting was adjourned at 1:30 p.m.