2006 Board Meetings and Agendas
Minutes of a Meeting of the Board
Time and Place of Meeting:
Friday, January 27, 2006 - 9:00 a.m. - 2:15 p.m.
Hilton Seattle Airport & Conference Center
17620 Pacific Highway South
Ronald D. Sabado, CPA, Chair
Sharron J. O'Donnell, CPA, Vice-Chair
Mien Julia Tai, CPA, Secretary
Robin A. Clark, CPA, Board Member
Edwin Jolicoeur, CPA, Board Member
Rufino R. Moraleja, CPA, Board Member
Mary M. Tennyson, Senior Assistant Attorney General
Richard C. Sweeney, CPA, Executive Director
Sandra Shoemaker, CPA, Deputy Director
Call to Order
Ronald Sabado, Chair, called the Board meeting to order at 9:00 a.m.
The minutes of the October 28, 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 pending court action related to the Board's current cases. Mary also noted that she would be preparing a presentation for the Board concerning the need to adopt a rule describing when Board Members need to recuse themselves.
The Board Chair announced that Board Member, Jim Caley, CPA, has resigned as Chair of the Legislative Liaison Committee and the Incidental Practice Committee; however, he will continue to serve as a member of each committee.
The Board Chair announced the following Board members will serve as committee chair effective immediately:
- Legislative Liaison Committee - Edwin G. Jolicoeur, CPA
- Incidental Practice Committee - Laurie J. Tish, CPA
Governor's Board and Commission Training Conference
The Board Chair reported on the Governor's Board and Commission Training Conference that was held December 13, 2005.
Dinner Meetings With Stakeholders
The Board requested staff to arrange for a dinner meeting with local stakeholders to be held April 27, 2006 in the SeaTac area.
CPA Exam Liaison Report
Examination Fees - Robin Clark, Committee Chair, reported on expected increases to the CPA computerized examination fees. The Board directed staff to file a CR-101 as soon as possible giving notice of the expected fee increases and to draft a proposed revision to the Board's fee rule (WAC 4-25-530) for presentation to the Board at the April 2006 Board meeting.
Alternative Uniform CPA Examination - Robin Clark, Committee Chair, reviewed a proposed draft letter to the National Association of State Boards of Accountancy (NASBA) for the Board's consideration. The draft letter states that the Washington State Board supports the position of the New York, California and North Carolina Boards calling for NASBA to:
- Move to obtain and maintain control over the major elements of the existing computerized examination and
- Issue a Request for Information to obtain the necessary information for a plan for an alternative examination.
The Board approved the letter to NASBA as drafted and asked the Executive Director to send a letter to Daniel Dustin of New York to find out about the technical problems New York encountered with the computerized exam.
Mien Julia Tai, Committee Chair reported that she has reviewed the Board's list of approved courses on ethics and regulations applicable to the practice of public accounting in Washington State. Once the sponsors determine a schedule of classes, Julia plans to attend selected courses.
Education Rule Review Committee
Ronald Sabado, Committee Chair, distributed copies of the Committee Charter and the Research and Data Collection plan. The Committee initially planned to hire a consultant to develop the survey for stakeholders concerning the education rule. However, due to budget constraints, the Committee will develop the survey with the help of the Board and other professional organizations.
Incidental Practice Committee
Robin Clark, Committee Member, reported that the NASBA Uniform Accountancy Act (UAA) Committee's Mobility Task Force is deliberating several issues related to incidental practice at it's February 2006 meeting. Laurie Tish, Incidental Practice Committee Chair, serves on this task force and will attend the task force meeting in February and report back to the Board.
Legislative Liaison Committee
Richard C. Sweeney, Executive Director, noted there are no bills directly affecting the Public Accountancy Act this session.
Policy and Rule Review Committee
Sharron O'Donnell, Committee Chair, noted that the Committee Charter and plan will need to be reviewed with the new Executive Director.
Practice Review Committee
Thomas J. Sadler, Committee Chair, noted the Committee had not met since the last Board meeting and reported on AICPA and NASBA activity concerning practice review.
Sharron O'Donnell, Committee Co-Chair, announced that the Committee reviewed 18 experience affidavits submitted as support for license applications in 2005. No issues were discovered, and all 18 individuals were approved for licensure.
Quality Assurance Review (QAR) Committee
Sandra Shoemaker, Deputy Director announced that the Committee held its annual meeting in November 2005. All ten members of the Committee volunteered to serve in 2006, and the Committee elected a Chair and a Vice-Chair for 2006. Rufino Moraleja made a motion that the Board re-appoint all ten members of the QAR Committee to serve for 2006. The motion passed unanimously.
The Deputy Director noted that 713 firms have been selected to participate in the Board's 2006 QAR program and the QAR Status Forms were mailed to these firms on January 6, 2006. The QAR desk review session is scheduled for June 12 and 13, 2006.
Request Review Committee
Robin Clark, Committee Chair, noted that no CPE Waiver Requests, Firm Name Requests, Late Fee Waiver Requests or Professional/Educational Organization Recognition Requests were received since the October Board meeting.
NASBA Vice-Chair Nomination
The Executive Director reviewed a draft letter recommending Thomas Sadler for nomination to the position of NASBA Vice-Chair. The Board resolved to approve the letter as drafted and directed Board staff to send the recommendation letter to NASBA.
Executive Director's Report
- Agency Activities
The Executive Director reported on agency activities conducted since he was appointed on July 1, 2005.
As of January 20, 2006, 896 individuals have subscribed.
- Investigation Management Report
The Executive Director reviewed the Investigation Management Report with the Board.
No public comments were made.
Motion for Entry of Order on Default - Genevieve A. Traub, CPA
The Board determined Genevieve A. Traub's failure to respond to Board inquiries and failure to provide documentation to verify completion of the Continuing Professional Education (CPE) requirements for the 1999/2000 and 2001/2003 reporting periods violated the Public Accountancy Act and Board rules. The Board suspended Genevieve A. Traub's CPA certificate, individual license to practice public accounting and CPA firm license for one year. As conditions for reinstatement, Genevieve A. Traub 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 $1,000 for costs, pay a $4,500 fine, and complete the AICPA's course Professional Ethics for CPAs with a score of at least 90%.
Executive Session with Legal Counsel
The Board held an Executive Session with legal counsel to discuss risk associated with procedural and policy changes and Case #2005-058 Richard A. Swan.
Delegations of Authority
The Board reviewed the following proposed Delegations of Authority:
- Review Request Committee Actions - The Board approved the delegation as drafted.
- Quality Assurance Review (QAR) Remedial Actions - The Board approved the delegation as drafted. Five members voted for approval and one member abstained.
- Executive Director Recusal Designee - The Board approved the delegation as drafted.
- Administrative Sanctions - The Board postponed a vote on this delegation until input from all Board members is available. Board members will provide their written comments to the Executive Director, Richard C. Sweeney, and to Board members Robin Clark and Edwin Jolicoeur. These three individuals will revise the delegation for presentation at the April 2006 Board meeting.
- 1998-1 Education Policy
The Board reviewed proposed corrections to the Education Policy and accepted the revised Education Policy as presented.
- 2004-1 Sanction and Penalty Guidelines
The Board postponed a vote on the proposed policy revision until input from all Board members is available. Board members will provide their written comments to the Executive Director, Richard C. Sweeney, and Jolicoeur. These three individuals will revise the proposed policy for presentation at the April 2006 Board meeting.
The Executive Director summarized actions taken in compliance with Pierce County Superior Court No. 05-2-12922-1, Washington State Board of Accountancy v. Richard A. Swan. Richard A. Swan's server was not on the premises at the time the Executive Director seized Mr. Swan's records. The Board directed the Executive Director to contact the appropriate law enforcement agency and provide the law enforcement agency with the appropriate information.
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.
The regular Board meeting was adjourned at 2:15 p.m.