2008 Board Meetings and Agendas
Minutes of a Meeting of the Board
Time and Place of Meeting:
Friday, January 25, 2008 - 9:10 a.m. - 2:06 p.m.
Hilton Seattle Airport & Conference Center
17620 Pacific Highway South
Edwin G. Jolicoeur, CPA, Chair
Laurie J. Tish, CPA, Vice-Chair
Donald F. Aubrey, CPA, Board Member
Robin A. Clark, CPA, Board Member
Lauren C. Jassny, Public Board Member
Sharron J. O'Donnell, CPA Chair
Ronald D Sabado, CPA, Board Member
Mary M. Tennyson, Senior Assistant Attorney General
Richard C. Sweeney, CPA, Executive Director
Sandra K. Shoemaker, CPA, Deputy Director
Diane M. Bren, CPA, Chief Investigator
Cheryl M. Sexton, Executive Assistant
Call to Order
Edwin G. Jolicoeur, Chair, called the Board meeting to order at 9:10 a.m.
The Board approved the Consent Agenda as presented:
Rules Review - WAC 4-25-750
The Board held a public rule-making hearing prior to the Board meeting on January 25, 2008 at 9:03 a.m. The Board received no public testimony. The Board reviewed the proposed changes to rule WAC 4-25-750. Due to pending legislation, the Board resolved to defer the vote until the Board's regular meeting in April 2008.
Board Policy 2006-1
The Board reviewed the proposed changes to Policy 2006-1 Directions to Staff. To recognize technological advancements, the Board unanimously approved the changes as presented to the meaning of "in writing" to facilitate e-mail address change, appeal, response to Board inquiry without signature.
FAQ - Client Records
The Board reviewed a proposed addition to the "Frequently Asked Questions" concerning client records. After discussion, the Board determined it would be more appropriate to clarify this information and to incorporate it into the Board rules. Therefore, the Board directed the Executive Director to present a revision to WAC 4-25-640(5)(a) for consideration at the April 2008 regular Board meeting.
NASBA 2008-2009 Vice-Chair Nominations
NASBA requested (PDF 30kb) nominations for Vice Chair of NASBA for the 2008-2009 year. All nominations must be submitted to NASBA by March 17, 2008. The Board resolved to support the nomination of Billy M. Atkinson to the position of NASBA Vice Chair and directed staff to draft a letter of support for the Chair's signature.
NASBA Government Referral Agency Task Force
Laurie Tish, Vice Chair, reported that NASBA has created a new task force known as the Government Referral Agency Task Force to facilitate communication between all of the State Boards and various federal agencies concerning federal complaints filed against CPAs and CPA firms. The task force is considering the feasibility of implementing a NASBA database to track federal complaints and the follow-up actions taken by each state board. The Board discussed its concerns with this proposal. Laurie asked that individual Board members relay their individual concerns to her before March 1. Laurie will take the Board's concerns to the next task force meeting and provide an update at the Board's regular meeting in April 2008.
Legal Counsel's Report
Mary M. Tennyson, Senior Assistant Attorney General, reported that she is tracking the current legislative activity for any issues that may affect the Board. Mary also noted the Sunshine Committee is reviewing all exemptions to the public disclosure laws.
Recognition of New Board Members
The Chair welcomed the following two new members to the Board who were recently appointed by Governor Gregoire:
- Donald F. Aubrey, CPA, appointed on October 1, 2007 through June 9, 2010. Mr. Aubrey is the Tax Director at Rebar & Associates, PLLC.
- Mark W. Pearson, CPA appointed on December 19, 2007 through June 9, 2009. Mr. Pearson is a partner at Ernst & Young LLP.
The Chair asked the new members to consider serving on the Board's various committees.
CPA Exam Liaison Committee
Robin Clark, Committee Chair, reported on expected increases to the CPA computerized examination fees. Robin noted that Board staff will need to file a CR-101, giving notice of the expected fee increases, and to draft a proposed revision to the Board's fee rule (WAC 4-25-530). The Executive Director will work with Robin on this issue and report back to the Board at the regular Board meeting in April 2008.
Ron Sabado, Committee Chair, explained that this committee is tasked with reviewing courses on ethics and regulations applicable to the practice of public accounting in Washington State to determine if the course meets Board requirements. Board staff is currently preparing a schedule of ethics courses for 2008. Once the schedule has been prepared, the committee will be asking for volunteers from the Board to help review selected classes. Ron noted that it is important to submit feedback from a review to the committee and the Board.
Education Rule Review Committee
Ronald Sabado, Committee Chair, presented an Exposure Draft to the Uniform Accountancy Act (UAA) (PDF 45kb) Education Model Rules (Rule 5-1 and 5-2) prepared by NASBA's Education Committee. Comments on the exposure draft are due by January 31, 2008.
Ron discussed the background information concerning this Exposure Draft with the Board. Ron also reviewed and discussed the Committee Charter. The Board agreed to withdraw the charter as currently written. The Committee may review the charter after NASBA publishes its revised Rules 5.1 and 5.2.
The Board directed the Executive Director to write a letter of support to NASBA's Education Committee advising them the Board does not find anything objectionable in the exposure draft.
Laurie Tish, Committee Chair, and Rick Sweeney, Executive Director, reviewed the status of the proposed CPA mobility legislation that is currently moving through the legislature. This legislation is sponsored by the Washington Society of CPAs and is not encountering any obstacles at this point.
Legislative Liaison Committee
Ed Jolicoeur, Committee Chair, discussed the attendance of several Board members and the Executive Director at the eight WSCPA Town Hall meetings held throughout the state. Ed reported the major topic of conversation was the proposed CPA mobility legislation, and attendees expressed no opposition to the legislation.
Ron Sabado, Committee Chair, reviewed the cost of the stakeholder receptions held prior to the July 2007 Board meeting in Pasco, and the October 2007 Board meeting in Spokane. Ron suggested the Board consider alternative methods to reach out to our stakeholders. After discussion, the Board directed staff to investigate the following outreach alternatives:
- Identify conferences where a Board presentation would be appropriate, and
- Create a newsletter for distribution via e-mail.
Policy and Rule Review Committee
Practice Review Committee
Quality Assurance Review (QAR) Committee
Sandra Shoemaker, Deputy Director, announced that the QAR Committee held its annual meeting on December 14, 2007. At that meeting, the QAR Committee elected the following officers for 2008:
- Christine Bogard, CPA - Co-Chair
- Robert Speicher, CPA - Vice Chair
The Board appointed the following individuals to serve on the 2008 QAR Committee:
- Christine Bogard, CPA
- Robert Speicher, CPA
- Jason Filippini, CPA
- Nina Gerbic, CPA
- Jim Holder, CPA
- Martin Oreschnigg, CPA
- Sherrilyn Owzarski, CPA
- Randall Wright, CPA
Sandra reviewed the final statistical results of the 2007 QAR program with the Board.
Request Review Committee
The following report was approved under the consent agenda:
CPE Waivers - The Board received no waiver requests where the CPE deficiency was more than 16 CPE credit hours since the October 2007 Board meeting.
Firm Names - The Board received six requests for firm name approval since the October 2007 Board meeting. The Executive Director and a Consulting Board Member from the Request Review Committee approved the following firm names:
- RINA Accountancy Corporation
- Assured Analysis Inc.
- Catalyst Business Advisors
- Armour Valuation Group, PS
- Accounting & Business Consulting Solutions LLC
- The CPA Group, PLLC
Late Fee Waivers - The Board received no late fee waiver requests since the October 2007 Board meeting.
Professional/Education Organization - Recognition Requests - Since October 2007, the Board received one request from PESI, LLC for recognition as an educational organization for purposes of obtaining lists of individual CPAs. The Executive Director and a Consulting Board Member from the Request Review Committee approved this request.
Executive Director's Report
The Executive Director announced Meranda Scott began working in the enforcement unit on January 2, 2008. The Executive Director also reported on the meeting with the Board officers held prior to the Board meeting.
As of January 18, 2008 1,237 individuals have subscribed. This is a net increase of 38 individuals (3.2%) since October 19, 2007.
Investigation Management Report
The Executive Director reviewed the Case Status Report and the Activity Analysis of Administrative Violations Report with the Board.
AICPA Exposure Draft (PDF 36kb) - Interpretation 501-8
The Executive Director reviewed the exposure draft with the Board. The Board determined no response is necessary.
Office of Indian Affairs - The Executive Director updated the Board on his ongoing dialogue with the Office of Indian Affairs concerning governmental audits on tribal properties.
IT Initiatives - The Executive Director reported on efforts to coordinate with the Secretary of State, Department of Licensing, and the Department of Revenue for the sharing of firm licensing information.
Foreign Credential Evaluation Service Concerns - The Executive Director reported on concerns with one of the foreign credential evaluation services approved by the Board. The Executive Director plans to contact the evaluation service to convey the Board's expectations.
The Executive Director also plans to present a report to the Board at the April 2008 Board meeting concerning the inconsistencies in the way the various foreign credential evaluation services prepare evaluations.
Executive Session With Legal Counsel
Jerry Miller, representing the Washington Association of Accountants (WAA), commented on the "home office" requirement in the mobility legislation.
Rich Jones and Tony Laliberte, Washington Society of CPAs (WSCPA) commented on the content for the additional 30 hours of education required by Washington for examination and licensure.
The regular Board meeting was adjourned at 2:06 p.m.
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