2006 Board Meetings and Agendas
Minutes of a Meeting of the Board
Time and Place of Meeting:
Friday, July 28, 2006 - 9:00 a.m. - 12:05 p.m.
3985 Bennett Drive
Ronald D. Sabado, CPA, Chair
Sharron J. O'Donnell, CPA, Vice-Chair
Mien Julia Tai, CPA, Secretary
James W. Caley, Board Member
Robin A. Clark, CPA, Board Member
Lauren Jassny, Public Board Member
Edwin G. Jolicoeur, CPA, Board Member
Laurie J. Tish, CPA, Board Member
Mary M. Tennyson, Senior Assistant Attorney General
Richard C. Sweeney, CPA, Executive Director
Sandra K. Shoemaker, CPA, Deputy Director
Jennifer Sciba, Board Staff
Call to Order
Ronald Sabado, Chair, called the Board meeting to order at 9:00 a.m.
The minutes of the April 28, 2006 Regular Board meeting and the June 27, 2006 Special Board Meeting were approved as presented.
Legal Counsel's Report
Mary M. Tennyson, Senior Assistant Attorney General, reported that she is meeting monthly with the Executive Director to discuss the legal implications of Agency strategies.
The Chair introduced Lauren Jassny appointed to the Board as a public member.
The Chair also introduced Jennifer Sciba, a member of the Board's staff. Jennifer will provide staff support to the various Board committees.
- Board Appointments and Committee Assignments
The Chair noted that Julia Tai's term as Board member ended June 9, 2006. However, her appointment continues until the Governor appoints a replacement. Julia is currently serving as Board Secretary, and as a member of several Board Committees. The Chair asked the Board members to begin considering replacements for these positions.
- NASBA Western Regional Meeting
Ron Sabado, Chair, noted that several Board members and the Executive Director attended the NASBA Western Regional Meeting from May 31 through June 2, 2006 in San Francisco, California. Ron reported on the major topics discussed.
- Board Officers and Executive Director Meeting
Ron Sabado, Chair noted that the Board officers met with the Executive Director in a separate meeting on July 10, 2006 to discuss operational issues and provide any guidance necessary. The Board members agreed a monthly meeting between the Board officers and the Executive Director was appropriate and asked the Policy and Rule Review Committee to determine if an "Executive Committee" should be established for this activity.
CPA Exam Liaison Committee
Robin Clark, Committee Chair, reported that she and the Executive Director and several Board staff members will be meeting with the Board's exam vendor, Castle WorldWide on September 13, 2006 to discuss policies and procedures.
Mien Julia Tai, Committee Chair, reported that no ethics courses were audited during the last quarter. Board staff e-mailed the current ethics CPE course listing on July 20, 2006. The Board has audited providers Tom Neill and Jim Rigos, and Robin Clark plans to attend a Washington Accounting & Tax Seminar. This leaves only two providers to be reviewed. Board members were asked to please notify the Executive Director if a member can audit any of the remaining two.
Education Rule Review Committee
Incidental Practice Committee
Laurie J. Tish, Committee Chair, reported that the committee met via teleconference on July 26, 2006. At this meeting the committee:
- Voted to change the name of the committee to the "Mobility Committee" and
- Discussed the impact adoption of the Uniform Accountancy Act (UAA) proposal of firm licensing would have on the Board's current rules and operations.
After discussion, a consensus of the Board agreed the Committee should continue investigating the UAA proposal of firm licensing.
The Executive Director will prepare an analysis of the effects of adoption of this proposal on the Board's current rules and operations. The analysis will be presented to the Mobility Committee at its next meeting in September.
Legislative Liaison Committee
Ron Sabado, Committee Chair, reported that he had recently attended the Washington Society of Certified Public Accountants (WSCPA) breakfast meeting in Snohomish County. Rick Sweeney, the Executive Director, reported he attended the WSCPA meeting of the Southwest Chapter (Vancouver), and will be meeting with the mid-tier firms in September.
Policy and Rule Review Committee
Sharron O'Donnell, Committee Chair reported that she met with Board staff, Sandra Shoemaker and Jennifer Sciba, on July 6, 2006. A revised charter and work plan were prepared at the meeting.
After discussion, the board approved the revised charter and work plan as presented.
Practice Review Committee
Rick Sweeney, Executive Director, reported that he and Tom Sadler will be meeting with the Public Company Accounting Oversight Board (PCAOB) Enforcement Division to investigate the possibility of establishing an information sharing agreement.
Sharron O'Donnell, Committee Co-Chair, announced the Audit Subcommittee met on July 6, 2006 to review the audit process and results to date. The Audit Subcommittee determined the process appears to be working properly, and the Committee will no longer review three randomly selected experience affidavits per month. Instead, the Deputy Director, Sandra Shoemaker, will forward any unusual experience affidavits identified by the staff for review by the Audit Subcommittee.
Quality Assurance Review (QAR) Committee
Sandra Shoemaker, Deputy Director, reported on the preliminary results of the 2006 QAR desk review session held on June 12th and June 13, 2006. The Deputy Director noted that 47 reports were tentatively graded as "unacceptable" and letters requesting more information were sent to the CPA firms. The firms are required to respond by July 31, 2006. The QAR Committee will meet again in August to determine a final grade on these reports.
Final statistics for the 2006 QAR program will be presented at the regular October Board meeting.
The Deputy Director also noted that the Committee would like the Board to appoint Robert E. Speicher, CPA, from the CPA firm of Brink and Sadler to serve as a member of the 2006 QAR Committee. After discussion, the Board unanimously voted to appoint Mr. Speicher to the Committee.
Request Review Committee
Robin Clark, Committee Chair, gave the following report on activity during the last quarter:
CPE Waivers - The Board received 36 CPE waiver requests since the April Board meeting. The Executive Director and a Consulting Board Member took the following action: 22 approved, 14 denied.
Firm Names - The Board received three requests for firm name approval since the April Board meeting. The Executive Director and a Consulting Board Member from the Request Review Committee approved the following firm names:
- S.A.L.T. Accounting PLLC
- Liberty Creek Financial Services, P.S.
- Accounting Solutions, PLLC
Late Fee Waivers - The Board received four late fee waiver requests since the April Board meeting. The Executive Director and Consulting Board Member denied all four late fee waiver requests.
Professional/Educational Organization Recognition Requests - No requests for recognition were received since the April Board meeting.
Delegation of Authority
The Board considered a proposed Delegation of Authority for the Board's Strategic Advisor/Chief Investigator, Thomas Sadler. The delegation will provide Tom with authority to perform certain duties during the course of investigations under the direction of the Executive Director. Previously, the Board delegated this authority to Tom as a contracted technical consultant of the Board. Since Tom is now an employee of the Board, it is necessary to update the delegation.
After discussion, the Board approved the proposed Delegation of Authority as presented.
Executive Director's Report
- The Deputy Director, Sandra Shoemaker, reported the results of the surveys sent to the individuals and firms who renewed or retired their licenses during January - June 2006. The survey contained questions concerning the renewal process and the desirability of an on-line renewal system.
- The Executive Director reported on the status of the web site disciplinary action update project.
- The Executive Director reported on the meeting he had with the Board officers on July 10, 2006.
As of July 18, 2006, 1,039 individuals have subscribed. This is an increase of 31 individuals (3%) since April 18, 2006.
Investigation Management Report
The following Investigation Management Reports were reviewed with the Board:
- Activity Analysis of Active Cases vs. Pending Cases
- Activity Analysis of Administrative Violations
Request for Guidance
The Executive Director requested guidance from the Board to pursue clarification of rules, policies, and other issues. After discussion, the Board decided the following:
- Interstate reciprocity - Referred to the "Mobility Committee".
- CPE documentation - The Executive Director will draft a revision of Board Policy 2000-1 for consideration at the October Board meeting. The revision will allow a signed fax or an electronic copy of a CPE completion certificate as acceptable documentation for CPE audit and other purposes.
- Specific definitions - The Executive Director will draft a new Board policy for consideration at the October Board meeting.
- QAR Policy - The Executive Director will draft a revision to the Board's QAR Policy for consideration at the October Board meeting. Currently, the Policy requires firms to submit audit, review and compilation reports. The revision will add attestation reports on management representations other than historical financial statements and agreed-upon procedures engagements.
No public comments were received.
The regular Board meeting was adjourned at 12:05 p.m.