2006 Board Meetings and Agendas
Minutes of a Meeting of the Board
Time and Place of Meeting:
Friday, October 27, 2006 - 9:00 a.m. - 3:10 p.m.
The Davenport Hotel, Cutter Room
10 South Post Street
Ronald D. Sabado, CPA, Chair
Sharron J. O'Donnell, CPA, Vice-Chair
Edwin G. Jolicoeur, CPA, Secretary
Robin A. Clark, CPA, Board Member
Lauren Jassny, Public Board Member
Gerald F. Ryles, Public 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
Lori Mickelson, Board Staff
Call to Order
Ronald Sabado, Chair, called the Board meeting to order at 9:00 a.m.
The minutes of the July 28, 2006 Regular Board meeting and the September 14, 2006 Special Board Meeting were approved as presented.
Legal Counsel's Report
Mary M. Tennyson, Senior Assistant Attorney General, announced that Bruce Turcott will replace Diane McDaniel as the Board's Prosecuting Attorney. Diane has been promoted to Section Chief in the Attorney General's Office.
The Chair introduced Gerald F. Ryles and announced that Governor Gregoire appointed Mr. Ryles as a public member of the Board. Gerald replaces Mien Julia Tai, whose term ended June 9, 2006.
The Chair also introduced Lori Mickelson, a member of the Board's staff. Lori processes initial individual license applications for the Board.
Election of Officers - 2007
The Chair presented the following slate of officers to serve in 2007:
- Chair - Sharron J. O'Donnell, CPA
- Vice-Chair - Edwin G. Jolicoeur, CPA
- Secretary - Laurie J. Tish, CPA
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.
2007 Board Meeting Locations and Dates
The Board established the following schedule for the 2007 regular Board Meetings:
- January 26, 2007 - SeaTac
- April 27, 2007 - SeaTac
- July 27, 2007 - Tri Cities
- October 26, 2007 - Spokane
The Chair appointed the following Board Members to serve on the Board's CPE Committee:
- Ronald D. Sabado, CPA - Committee Chair
- Lauren Jassny - Committee Member
- Laurie J. Tish, CPA - Committee Member
CPA Exam Liaison Committee
Robin Clark, Committee Chair, reported that she and several Board Staff members (Richard C. Sweeney, Sandra Shoemaker, and Lori Mickelson) met with the staff of Castle Worldwide at their offices in North Carolina on October 20, 2006. The purpose of the meeting was to review process, problems, and fees.
The Board directed staff to file a CR-101 (Preproposal Statement of Inquiry) with the Code Reviser's Office concerning exam fee increases.
Rick Sweeney, Executive Director, reported that the annual:
- 2006 Continuing Professional Education (CPE) audit has started
- CPE Reminder Notice was mailed in October to those individuals scheduled to renew their licenses/CPA-Inactive certificates in 2007.
Education Rule Review Committee
Ron Sabado, Committee Chair, reviewed the history of the implementation of the 150-hour education rule that led to the creation of this Committee.
Ron reported that the Committee plans to conduct a survey concerning the Board's current 150-hour education rule. Potential questions for the survey are being developed and will be distributed to all Board Members for review and comments.
Laurie Tish, Committee Chair, reported that the Committee met via teleconference on September 8, 2006. Additionally, Committee members Robin Clark and Laurie Tish and the Executive Director met with the Washington Society of Certified Public Accountants (WSCPA) Legislative Affairs Committee on October 17, 2006.
Laurie reviewed the current developments in other states and at the national level concerning the "no notice" concept.
The Board directed Staff and Counsel to research and study the concept of "no notice" including the impact on statute, rule and policy; and to make inquiries of states that have implemented the "no notice" provision.
Legislative Liaison Committee
Rick Sweeney, Executive Director reported on his recent outreach efforts.
Policy and Rule Review Committee
Sharron O'Donnell, Committee Chair, announced this Committee will meet before the January 2007 Board Meeting. The Committee will develop a recommendation for Board committee structure and guidelines for creation of future committees.
Practice Review Committee
Edwin G. Jolicoeur, Committee Member, reported that Thomas J. Sadler, CPA, Committee Chair, had attended the AICPA Peer Review Board meeting in Seattle. The following changes to the AICPA peer review program are being contemplated by the AICPA Peer Review Board:
- Merger of the two current peer review programs (AICPA Peer Review Program and the Center for Public Company Audit Firms Peer Review Program),
- Modification to the current peer review report, and
- Allowing direct access to the peer review reports by the State Boards of Accountancy.
Sharron O'Donnell, Committee Co-Chair, announced that two experience affidavits were reviewed and approved by the committee during the last quarter.
Quality Assurance Review (QAR) Committee
Sandra Shoemaker, Deputy Director, reviewed the results of the 2006 QAR Desk Review Session that was held on June 12th and June 13th with the Board members.
Request Review Committee
Robin Clark, Committee Chair, gave the following report on activity during the last quarter:
CPE Waivers - The Board received no CPE waiver requests since the July Board meeting.
Firm Names - The Board received one request for firm name approval since the July Board meeting. The Executive Director and a Consulting Board Member from the Committee approved the following firm name:
- Waterfront CPA Group
Late Fee Waivers - The Board received no late fee waiver requests since the July Board meeting.
Professional/Educational Organization Recognition Requests - The Board received three requests for recognition since the July Board meeting. The Executive Director and a Consulting Board Member from the Committee recognized the following as educational organizations for purposes of obtaining lists of individual CPAs:
- Kobel, Hoff and Henn, LLC (dba) Advanced Tax Practitioners Institute
- Hospice of Spokane
- Capital Concepts, Inc. (dba) 5 Cees Company
2000-1 Continuing Professional Education and Licensing Requirements
The Board approved all changes as drafted except section III B 2 (Sponsor Summaries). No changes to section III B 2 will be made.
2002-1 Substantially Equivalent Jurisdictions
The Board approved the revised policy as drafted.
2002-4 International Reciprocity
The Board opposed the revised policy. No changes to the current policy will be made.
The Board determined the following changes to the proposed policy are to be made:
- The title of the policy will be "Directions To Staff"
- The purpose of the policy will be "To provide clarification to the staff on terms used in Board rules (Washington Administrative Code [WAC] 4-25) and the Public Accountancy Act (Revised Code of Washington [RCW] 18.04) while the Board undertakes an intensive study of the issues involved."
- Proposed Section I (Attest Services) is to be deleted from the policy.
- Proposed Section II (Engaged in Business) is approved as drafted.
- Proposed Section III (In-Writing) is approved as drafted.
- Proposed Section IV (Person) is to be re-written and emailed to the Board members for approval before inclusion in the policy.
- Proposed Section V (Representative of the Firm) is approved as drafted.
- Proposed Section VI (Sole Practitioning CPA) is approved as drafted.
- Proposed Section VII (Within the State or in the State) is approved as drafted.
The Board also reviewed the CR-101 filed with the Code Reviser's Office on August 4, 2006 concerning possible rule making concerning WAC 4-25-820. The Board directed staff to prepare a draft revision of WAC 4-25-820 and a CR-102 for the Board's consideration at the January 2007 regular Board meeting.
Executive Director's Report
The Executive Director, Richard Sweeney, reported on the following agency activities:
- Web Site Disciplinary Action Update Project
- Meeting with Board Officers
As of October 17, 2006, 1,062 individuals have subscribed.
Investigation Management Report
The Executive Director reviewed the following reports with the Board:
- Activity Analysis of Active Cases vs. Pending Cases
- Activity Analysis of Administrative Violations
The Board inquired regarding the increasing number of open cases.
Newt Rumble presented public comments to the Board.
The regular Board meeting was adjourned at 3:10 p.m.