2008 Board Meetings and Agendas
Minutes of a Meeting of the Board
Time and Place of Meeting:
Friday, April 25, 2008 - 9:00 a.m. - 2:40 p.m.
Hilton Seattle Airport & Conference Center
17620 Pacific Highway South
Edwin G. Jolicoeur, CPA, Chair
Laurie J. Tish, CPA, Vice-Chair
Gerald F. Ryles, Public Board Member
Donald F. Aubrey, CPA, Board Member
Robin A. Clark, CPA, Board Member
Lauren C. Jassny, Public Board Member
Sharron J. O'Donnell, CPA Chair
Mark W. Pearson, CPA Board Member
Mary M. Tennyson, Senior Assistant Attorney General
Bruce Turcott, Assistant Attorney General
Richard C. Sweeney, CPA, Executive Director
Thomas J. Sadler, CPA Strategic Advisor
Sandra K. Shoemaker, CPA, Deputy Director
Diane M. Bren, CPA, Chief Investigator
Call to Order
Edwin G. Jolicoeur, Chair, called the Board meeting to order at 9:00 a.m.
The Board unanimously approved the Consent Agenda as presented:
Rules Review - WAC 4-25-750 What are the firm licensing requirements?
On January 2, 2008, a rule-making proposal (CR-102) was published in the State Register concerning WAC 4-25-750. At the January 25, 2008, regular Board meeting, the Board voted to defer the vote on the rule proposal to the April 2008 regular Board meeting. The Executive Director reviewed the original proposed changes to this rule and noted that additional changes are necessary due to the mobility legislation that was recently passed by the legislature.
The Board resolved to withdraw this rule proposal and directed staff to issue a new CR-101 to deal with all of the known issues of WAC 4-25-750.
WAC 4-25-530 Fees. The Executive Director presented the proposed draft amendment which recognizes the new CPA exam fees and removes all references to "practice privilege" due to the mobility legislation; and a draft CR-102 for the Board's consideration.
The Board reviewed the proposed amendment and requested a minor correction to section (12) (b) Administrative fees. The Board requested the column labeled 1/1/04-12/31/06 be removed since it is no longer applicable.
The Board directed staff to:
- File the CR-102 with the corrected amendment;
- Conduct a rule-making hearing on June 27, 2008 at 10:00a.m. in Olympia;
- Conduct a special Board meeting via teleconference on June 27, 2008 at 11:30a.m. to consider testimony received at the rule-making hearing and deliberate on adoption with an August 1, 2008 effective date.
WAC 4-25-640 What are the requirements concerning records and clients confidential information?
At the January 25, 2008, regular Board meeting, 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 the information and to incorporate it into the Board rules and directed the Executive Director to present a revision to WAC 4-25-640(5)(a) for consideration at the April 2008 regular Board meeting.
The Executive Director discussed the significant number of inquiries and opinions received concerning the question of client records. The Executive Director believes this rule has widespread interest and requires coordinated efforts with stakeholders. The Executive Director recommended the Board establish a task force of selected stakeholders to methodically review this issue and prepare a recommendation to the Board.
After discussion, the Board came to a consensus and directed the Executive Director to establish a task force to review the issue. The following Board members volunteered to work on the task force: Donald F. Aubrey, CPA; Mark W. Pearson, CPA; and Sharron J. O'Donnell, CPA.
WAC 4-25 series changes due to mobility legislation The Executive Director reviewed proposed changes to 25 existing rules that are necessary due to the mobility legislation; and a draft of two new rules that are necessary as follows:
New Rule Proposals (two):
- WAC 4-25-747 Must an individual holding a license from another state apply and obtain a Washington state license to hold out and practice in Washington state?
- WAC 4-25-753 Must a firm holding a license from another state apply and obtain a Washington state license to hold out and practice in Washington state?
Proposed Rule Revisions (25):
- WAC 4-25-400 What is the authority for and the purpose of the board's rules?
- WAC 4-25-410 Definitions
- WAC 4-25-520 What public records does the board maintain?
- WAC 4-25-521 How can the board be contacted?
- WAC 4-25-540 What requirements govern proceedings before the board?
- WAC 4-25-550 Do I need to notify the board if I change my address?
- WAC 4-25-551 Must I respond to inquiries from the board?
- WAC 4-25-610 Which rules govern the conduct of CPAs, CPA-Inactive certificateholders, CPA firms, and firm owners?
- WAC 4-25-620 What are the requirements concerning integrity and objectivity?
- WAC 4-25-622 When must a CPA or CPA firm be independent?
- WAC 4-25-626 What restrictions govern commissions, referral, and contingent fees?
- WAC 4-25-630 What are the requirements concerning competence?
- WAC 4-25-631 With which rules, regulations and professional standards must a CPA, CPA-Inactive certificateholder, CPA firm, and firm owner comply?
- WAC 4-25-640 What are the requirements concerning records and clients confidential information?
- WAC 4-25-650 What acts are considered discreditable?
- WAC 4-25-660 What are the limitations on advertising and other forms of solicitation?
- WAC 4-25-670 What enforcement actions must be reported to the board?
- WAC 4-25-735 How does a CPA-Inactive certificateholder apply for licensure?
- WAC 4-25-745 How do I apply for an initial CPA license?
- WAC 4-25-746 How do I apply for a Washington state CPA license if I hold a valid CPA license in another state?
- WAC 4-25-750 What are the CPA firm licensing requirements?
- WAC 4-25-752 How do I register to be a resident nonlicensee owner of a licensed firm and with which rules must a nonlicensee firm owner comply?
- WAC 4-25-820 What are the requirements for participating in quality assurance review (QAR)?
- WAC 4-25-830 What are the CPE requirements?
- WAC 4-25-910 What are the bases for the board to impose discipline?
WAC 4-25-756 I am licensed in another state--How do I notify the board of my intent to enter the state in order to obtain practice privileges in the state of Washington?
The Board discussed the proposed draft rules and made several corrections. The Board directed staff to:
- Make the noted corrections
- Submit the corrected drafts to the Board and then:
- File a CR-102 along with the corrected proposed rule amendments
- Schedule a rules hearing for July 18, 2008, at 9:00 a.m. immediately preceding the Board meeting.
Other - Due to the impact of the mobility legislation, the Board unanimously approved a motion directing Board staff to file a CR-101 to propose a comprehensive review of all Board rules.
Government Referral Agency Task Force - Laurie Tish reported on the activities of the task force and noted that a presentation will be made to all of the state boards at the regional meetings to be held on June 11th and June 18th.
Regional Director Nomination - Laurie Tish asked the Board for a letter of support/nomination for her bid for regional director. The Executive Director presented a draft letter for the Board's consideration. The Board unanimously passed a motion to submit the letter of support/nomination for Laurie as drafted.
Other - Thomas J. Sadler reported on the activities of the recent NASBA board meeting. Tom noted that the UAA education rule has been approved, the CPA Exam conference will be held on May 19th, and the "national automated licensee database" will be discussed at the regional meetings in June.
Legal Counsel's Report
Senior Assistant Attorney General, Mary Tennyson provided a brief information/education session for the Board members on Electronic Data Discovery.
Mary also discussed pending litigation with the Board.
Edwin G. Jolicoeur, Board Chair, reported that in February, he visited the Board's office in Olympia and met individually with various members of the Board staff. Ed reported it was an enlightening visit and he thanked the staff for all of their hard work on behalf of the board.
Ed also noted that he attended the bill signing on Substitute Senate Bill 6604 and that he drafted an article for the WSCPA newsletter.
CPA Exam Liaison Committee
Robin Clark, Committee Chair, reported that the number of individuals taking the CPA exam is rising. Also, Robin will attend the CPA Exam conference on May 19, 2008.
Education Rule Review Committee
Laurie Tish, Committee Chair reported that 20 states have now passed mobility legislation.
Legislative Liaison Committee
The Executive Director announced that Substitute Senate Bill 6604 which enhances the mobility of CPAs was signed by Governor Gregoire on March 14, 2008 and becomes effective June 12, 2008. There was no opposition to the bill in either legislative house.
Policy and Rule Review Committee
Practice Review Committee
Thomas J. Sadler, Committee Chair reported that the current objective of the committee is to establish a link between the WSCPA Peer Review Committee and the Board.
Quality Assurance Review (QAR) Committee
Sharron O'Donnell, Committee Co-Chair gave a status report to the Board concerning the 2008 QAR program. Sharron also noted that the QAR desk review will be held on June 16-17, 2008, at the Des Moines Campus of CWU.
Request Review Committee
The following report was approved under the consent agenda:
CPE Waivers - The Board received one waiver request where the CPE deficiency was more than 16 CPE credit hours since the January 2008 Board meeting. The Executive Director and a Consulting Board Member denied the request.
Firm Names - The Board received four requests for firm name approval since the January 2008 Board meeting. The Executive Director and a Consulting Board Member from the Request Review Committee approved the following firm names:
- Van Beek & Co, LLC
- Evergreen Tax Professionals PLLC
- PTI CPA Services, LLC
- Isler Northwest LLC
Late Fee Waivers - The Board received no late fee waiver requests since the January 2008 Board meeting.
Professional/Education Organization - Recognition Requests - The Board received no request for recognition since the January 2008 Board meeting.
Executive Director's Report
- The Executive Director reported on the meeting with the Board officers held prior to the regular meeting.
- The Executive Director noted that he approved four CPE waiver requests (16 hours and under) since the January 2008 Board meeting.
WBOA News - As of April 14, 2008, 1,256 individuals that have subscribed. This is a net increase of 19 individuals (1.5%) since January 25, 2008.
Investigation Management Report - The Executive Director reviewed the Case Status Report and the Activity Analysis of Administrative Violations Report with the Board.
Online Implementation - The Executive Director announced the agency plans to have on-line renewal available by January 2009.
Other - The other matters on the agenda were discussed throughout the meeting.
Motion for Entry of Default Order - H. Richard Dennison
The Board reviewed the "Motion for Entry of Order on Default" and related documents in the matter of H. Richard Dennison. The Board entered Findings of Fact, Conclusions of Law and Default Order on the Statement of Intent to Deny Reinstatement of Certificate/License.
Executive Session With Legal Counsel
Rich Jones, WSCPA, invited all of the Board members to attend the May 8th WSCPA Annual Meeting.
The regular Board meeting was adjourned at 2:40 p.m.
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