CONNECTIONS - September . October 2017

CONNECTIONS s e pte m b e r

ACCOU NTI NG PI PELI N E

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O C T O B E R

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Financial Accounting and Auditing Conference Friday, September 22, 2017

Auburn University Montgomery – Taylor Center

Register online at www.ascpa.org

MORNING SESSIONS 8:00 – 8: 10

Opening Comments

8:10 – 10:25 FASB Update Michael Cheng, CPA Financial Accounting Standards Board 10:25 – 10:35 Break 10:35 – 11:35 Quality Control Standards Update

Michael Brand, CPA, CGMA Johnson, Feigley, Newton & Brand LLP

LUNCHEON

11:35 – 1:00 Luncheon with Comments Auburn University at Montgomery & ASCPA Chair Marc Hamilton

AFTERNOON SESSIONS

1:00 – 2:45 SSARS Update Michael Glynn, CPA, CGMA American Institute of

Certified Public Accountants 2:45 – 3:00

Break

3:00 – 4:15 Auditing Matters on the Radar Gregory Clark, CPA, CGMA Business Compliance & Controls Group

ACCOUNTING PIPELINE 6 | Congratulations to our scholarship students 7 | Leverage Diversity for Growth

12 | View From the Front of the Class

DEPARTMENTS

INSIDE THE ASCPA

4 | ASCPA 2017

14 | History of the ASCPA

5 | Message from the Chair

24 | BABC SALT Corner

16 | Meet Bonnie

32 | Short on Credits?

18 | Member News 29 | Remembering 34 | Classifieds

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MESSAGE FROM JEANNINE

ASCPA 2017 There’s a special place in my heart for our student programs. Maybe it’s because I enjoy spending time with the students themselves. Maybe it’s because my own parents were high school and college educators.

Maybe it’s because the pipeline is an important part of our commitment to sustainability. Maybe it’s because last week I signed a membership certificate for the son of one of my dearest friends, a CPA and former ASCPA chair. It gave me chills to see someone I’ve known since he was a baby, not some vague, abstract “next generation” person, stepping up into the profession. Gratifying, very gratifying.

On September 8, we will hold the second Diversity and Inclusion Conference. This year we’re at the beautiful student center on the Alabama State University campus and appreciate the help of their staff and faculty in organizing the event.

The 31st Accounting Interview Day (AID) is coming up on September 22. I think the deadline to sign up your firm or organization as a recruiter has passed, but fall intern and AID administrator Matthew Berube, mberube@ascpa.org, might be persuaded to squeeze you in.

Handpicked students from smaller accounting programs will show up in their stylish business clothes to spend a few minutes with you hoping for a firm visit or second interview. Not only do hires result from this event, but many young staffers hired through AID return two or three years later as recruiters. We love seeing examples of the ASCPA’s own version of the “circle of life”.

In this issue, the Accounting Pipeline issue, we spend some time recognizing that there are a lot of sons and daughters who see the accounting profession as a financially rewarding career and a way to make a meaningful contribution to the world. Read Kelsi Long’s profile on page 8 and you’ll see that we’re in good hands for the future. She’s excited about accounting, sure, but is more inspired by the impact she will make by helping others. We may make generalizations about the next wave of young people entering the work place – they’re entitled, not interested in working hard, etc. – but I don’t see it. I see students like Kelsi; committed, talented, smart and focused.

Educators themselves go to school by attending the ASCPA’s Educator Conference on October 6. Thank you, again, to Becker Review for being the exclusive sponsor in 2017. The Education Committee has put together an agenda full of cutting-edge topics. Members from every segment of the profession are always welcome to sit in and the networking is exceptional. Register on the website, www.ascpa.org.

Take some time to review the recipients of this year’s Educational Foundation’s scholarships. At least one of them is in your chapter area, so get in touch and take them to lunch, invite them to a chapter event, allow them to shadow you or a member of your staff for a day. It takes so little of your time and means so much to these students.

We hope all ASCPA chapters will take a page from the Northeast Chapter’s book. They are teaming up with Jacksonville State’s Beta Alpha Psi chapter for a two-hour CPE event. Scott Bradbary and his team from Warren Averett will offer insights on essential skills for professionals of all ages. Ethical decision-making, negotiation, conflict management and emotional intelligence are all under consideration as topics for this thoughtful CPE program. Mark your calendar for October 24 on the JSU campus. Additional details will be available on the website.

By the time this is in your hands, we’ve already been on several college campuses with our Interview Skills Workshop. Troy University always schedules this event ahead of their annual Troy Accountancy Day. A big shout out to ITAC Solutions’ Charles Baughman and Becker Review’s Ashley Stephens, for their continued support of this program. It combines mock interviews in a speed-dating format and tips for building your personal brand. We always need volunteers for the mock interviews, giving you another chance to connect with local accounting students.

Young professionals are part of the accounting pipeline, too, and the Young CPAs met recently to schedule their 10th annual high school Classroom Blitz. Volunteers will go into high schools to talk about accounting careers and to discuss financial literacy. More than 24,000 students have experienced this program! It’s been a wonderful way to expose students to the profession and to demonstrate support to high school accounting teachers.

There’s a place for you to influence the power and flow of the accounting pipeline. Please review the volunteer form on page 26 and find a role to play in the lives of students and emerging professionals.

Jeannine 4

MESSAGE FROM THE

CHAIRMAN

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lmost 100 years ago, our profession implemented a uniform examination of knowledge and competency. Successful completion of which was required to earn the CPA credential. To take this exam, regulatory bodies in each state or jurisdiction established education criteria used by accounting degree programs to ensure exposure to a standardized curriculum.

“Experience” requirements added the need for gaining practical perspectives while applying these learned competencies.

interact socially and earn achievement. Professionalism is applicable too. Typically, there are strict rules to follow and resource investments that must be made to succeed. Achievements are credentialed and rewarded and there are limited restrictions on how far or how fast one can progress. Participation is generally diverse and mobility flexibility unlimited. And did I mention the current group of accounting graduates have been exposed to these “worlds” their entire lives?

They have this unique perspective of professionalism and how to achieve success.

Our profession also recognized the need, as credentialed professionals, to ensure our competencies are routinely refreshed, enhanced or broadened. Regulatory licensing requirements vary, but professional continuing education is the primary tool used to maintain the CPA credentialing.

Interestingly, as we all are aware, the measurement for assuring our competency is “continuing” is validated primarily based on time being present and a regulatory administrative content standard.

So how is this applicable to our education processes and pipeline efforts? The depth of expertise and the breadth of reach of our profession is not what it was 25 years ago. Many, if not most of the educational competency processes are very similar, if not unchanged. However, we are beginning to see credentialing become “accepted” and utilized.

The AICPA has introduced numerous credentials to indicate specializations as depth of competency. We have also recently seen the AICPA Future of Learning Initiative launch a “digital badges” program as well as a certificate program. These are examples of gamification evolving.

These methods have served our profession and have allowed regulators to protect the public trust with administrative processes that are relatively straightforward to manage. However, about 25 years ago, technology began to develop that I believe has changed the playing field and should be considered for the profession of the future. These changes can also act to brand our profession differently to young people by making it more of a mainstream and desirable career path. When I first began speaking on this concept I deemed it the “gamification” of managing our professional education processes.

So, what is gamification and how is it applicable? Why would it be appealing? Let me share some perspective with you. About the same time the most recent graduates of our accounting programs were being born this new technology we refer to as the internet was also beginning to grow. We have all watched the expansion and development of the internet, the devices it spawned and felt the disruption technology creates. We also are extremely aware of the vast amount of content that is accessible and the multitude of delivery methods that are continuously evolving.

But I would contend that we are just beginning to consider another impact technology and the internet have had on the physiological ways we (skewed toward youth) think about professionalism. I believe that from a very early age digital games or “gaming” has become a significant component of our education processes.

Digital gaming is a phenomenon that has drawn enormous participation and can become almost addictive. It creates an environment in which the participants develop competency, employ skills,

We have also seen evolution in the content delivery methods for CPE. We are all utilizing video conferencing and recorded video content, but video has led to another gamer evolution called “nano-learning”.

Gamers frequently learn specific competencies from collaborative, short, content specific YouTube video segments which layer or level up competencies or pertinent knowledge. Applying this concept has given root to measuring continuing education participation investments of less than 50 minutes. Stringing nanolearning content together allows participants to level up their competency and earn achievement or badges that document their level of proficiency. These badges have relevance and can establish quick rapport.

I have often said that I believe massive quantities of continuing education content will ultimately be free (remember Khan Academy?). In that type of economy, the value-added service ASCPA may provide to membership will involve managing education content, vetting and standard setting for achievement credentialing. We may also provide the mechanisms of tracking and monitoring competencies and offer a social environment for achievement exposure. I also believe competency should include continuing education “credit” from work experiences which could also be vetted and tracked, but that beast may be a bit more difficult to slay.

So, what about our accounting degree programs?

Are the rules and regulations that stipulate content requirements on point? In a game environment,

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there is an ongoing need the consider the challenges of the next generation of “wins”. Team leaders and participants constantly coordinate skills assessments and recruit new team members to fill needed roles.

As demonstrated by the CPA exam, our profession focuses the core education competencies on audit and attestation, business concepts, financial accounting & reporting and regulation, but as Barry Melancon recently commented, in large firms greater than 50% of the hires are non-CPA candidates. These nontraditional competencies related to data management, process consulting and business intelligence analytics have become a significant source of firm revenue. How do we assess their non-traditional competencies, provide appropriate continuing education or training and keep them as critical components of our team if they are not a part of our profession?

Is there a way to broaden the profession, drawing in this talent pool and creating more flexibility in degree programs while maintaining the professional standard, credibility and protection of the public trust?

I believe there is and the efforts are beginning to form to consider what alternatives may look like. How do we make our profession look appealing to young people so we fill our pipeline with talent? I suggest that this can be accomplished by providing a more easily understood but diverse picture of career options within our profession. These would be organized around some degree of flexibility in the education curriculum and career ladder continuing education programs designed to level specific competencies aimed at reaching a defined achievement.

I hope you have found this commentary interesting.

I am very passionate about this topic and would be happy to discuss concepts and ideas with you on our Higher Logic platform. I am incredibly honored to have the opportunity to share this message with you. Thank you for your membership.

Marc

CONGRATS TO OUR SCHOLARSHIP RECEIPIENTS BRIDGET ADAMS Birmingham-Southern College

RICHARD BERRU-GERRERO University of Alabama at Birmingham

LATASHA DAVIS Athens State University

TEAIRIA AMISON Alabama State University

CAMERON BYRNE Spring Hill College

ANDREW FINNORN University of South Alabama

CLARA BENITEZ Auburn University

KENDALL CAUSBY Huntingdon College

PATRICK FISHER University of Mobile

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MICHAEL GEORGE University of Alabama at Birmingham

HOLLY GIANG University of Alabama at Birmingham

TIFFANY GIBSON Troy University - Phenix City

GABRIELA GOMEZ-PEREZ University of West Alabama

JACOB GRIFFIN University of Alabama in Huntsville

MATT HALLMAN University of West Alabama

ROLINDA HOLT University of South Alabama

TRUC HUA University of South Alabama

WILLIAM LEWIS University of Alabama

DOROTHY MAUL Muniversity of Montevallo

MADISON MAY Auburn University

VICTORIA MCDANIEL Miles College

SHAROLYN PARKER Alabama State University

ROBERT SMITH Athens State University

BRITTANY PELL Jacksonville State University

MARY KATHERINE STANLEY Samford University

JOSEPH SHAVER Troy University

MAKAILA SWISHER Huntingdon College

ALEXIS SHEPPARD Alabama State University

GEORGE UNDERWOOD Auburn Montgomery

LINDSEY WINTZINGER University of Alabama 7

KELSI LONG IS ASCPA ROI The ASCPA has several programs in place to inspire young students and point them toward a career in accounting. The Accounting Career Awareness Program (ACAP), a partnership among the National Association of Black Accountants (NABA), the Culverhouse School of Accountancy at the University of Alabama and the Alabama Society, is just such a program. It is a week’s residency at the university with guest speakers, visits to firms and industry, fun evening events and a learning competition which crowns the week. ACAP attendees are chosen through an application process which emphasizes college education and increased diversity in accounting. While feedback about the impact of these programs is infrequent, Kelsi Long has a wonderful story of the return on investment that you have made through your contributions to the Educational Foundation. Ms. Long took the lessons of ACAP to heart. She enrolled as an accounting student at the University of Alabama and has done extremely well. She’ll graduate in December with a 3.97 GPA and a minor in Spanish.

I attended Bob Jones High School in Madison, Alabama and held a stereotypical vision of accountants. They sat in a cubicle all day calculating numbers and were introverted.

The ACAP program was the main reason that I decided to major in accounting. During ACAP, several speakers came in and told us about their careers as industry accountants, consultants, fraud examiners, auditors and other accounting professionals. While attending the program, I loved learning that accountants used problem-solving skills and (my beloved) mathematics to solve real world problems not just for today, but for tomorrow No one in my family is a CPA or even an accountant. My father and brother are both engineers and my mother is a retired college professor who taught courses in industrial technologies, management and graphic communications.

Fortunately, I had plenty of inspiration in my chosen field as I began at UA. Professors Daphne Palmer and Jill Datema have been huge mentors and influencers during my college career. Anytime I did not understand a concept after reading the textbook, I could go to them for an explanation. They gave real world examples in order for me to grasp the concepts. Not only would they help me during their office hours, they went above and beyond their duties and had an open-door policy. Dr. Rich Houston, director of the Culverhouse School of Accountancy, has also had a tremendous impact on me.

He always stressed that I could come to his office anytime to talk and discuss future career plans.

“Accounting is not an easy major.” That is what everyone said on day one. Those people were correct, but it is not an impossible feat! At first accounting just seemed like debits and credits, but when I got into the intermediate classes and accounting information systems, I felt like I started to understand business more. Professor Peter Johnson is another reason that I have had such a great experience at UA. I have never had him as a professor, but I met him during ACAP. I loved that he would make me write down what I was currently doing in school and what I wanted to achieve in the next six months, one year, five years and by the time that I retired. He made sure I understood that I could change these answers at any time, but that writing them down and seeing them every day would help me to 8

achieve my goals. He is a constant encourager!

Another aspect of my time at the university has been participating in a couple of major service projects. My two favorites have been related to my accounting major: the Culverhouse Learning Initiative and Financial Training (LIFT) and Haiti Economic Research and Development (HERD). As a volunteer for LIFT, I taught Quickbooks to local community citizens who had small businesses or were interested in starting a business in Tuscaloosa. Another semester, I took on a different role as a financial literacy teacher for a local high school. While working there, I taught high school students about saving money, how to apply for scholarships, how to obtain financial aid and how to choose a major that they will enjoy and be successful in. The high school students learned from me, but I also learned valuable lessons from them. I learned never to give up on students who are willing to try. You can always help someone even with minimal resources.

One of the most amazing and rewarding experiences of my college career was studying abroad in Haiti and teaching Haitians different business skills. Just as with LIFT, part of the program was to share basic accounting and marketing so that these clients would be able to start their own businesses and help provide a better lifestyle for their families. I was paired with two students and trained them to use Excel as a method of bookkeeping. They learned how to set up an e-mail account so that they could correspond with their suppliers and others. Interestingly, many Haitians own cell phones and have Facebook pages!

It was vital that I understood the Haitian culture and didn’t run over them with American methods. This exchange of perspectives was important. We wanted the lessons we shared to “stick” with them and also to expand our knowledge about other cultures and how we could enhance businesses back here in the United States. I thank Lisa McKinney, the leader of this project and a great supporter of me since I entered the university, for that experience.

I have interned every summer starting with the summer before my freshman year in

college. That experience, with engineering company Yulista Aviation, taught me how to work on a team and the importance of having accurate data within a company’s systems. My next internship was in Atlanta, with EY’s financial services office, FSO. This was an eye-opening experience because I expanded my knowledge of accounting and the business world in general. After interning in Atlanta, I switched offices and client base to San Diego, California and operated primarily with real estate and health care services clients. I was a launch intern and had rotations in audit, tax and advisory practices. I loved audit because I learned

the intricacies of companies from their cash to their common and preferred stocks and differences among various business models.

This past summer, I interned with Burlington Northern Santa Fe Railway (a Berkshire Hathaway company) in Fort Worth, Texas in their finance department. During the summer, I worked in the accounting and reporting department, which dealt with unique accounts such as environmental liabilities and personal injury. In all my internship experiences, I took what I learned in school and used it on the job and then did the reverse! I will be forever grateful to everyone

that I worked with for all that they taught me about the accounting world and about life. I still stay in contact with the people I have worked with to see how they are doing and where they are in their careers. I think this is vital in creating networks and mentorship opportunities.

I am not one hundred percent sure what my professional life will look like. I plan on taking a course to help study for the CPA exam.

Since numerous people at UA take the exam, I will get a group of friends to help prepare

_________________________ continued on page 28

LEVERAGE DIVERSITY FOR SMALL FIRM GROWTH

Don McCleod, CPA

Many opportunities exist within the profession to engage in terms of diversity and inclusion, and these opportunities will only continue to increase over time. Many firms, especially small to mid-size ones, are struggling not only to recruit and retain valuable staff, but also to develop a viable succession plan for those Baby Boomer firm owners who are retiring over the next decade. For this reason alone, the profession offers high growth potential for minorities and for firms that recognize the value of a diverse workforce.

Firms may need to recognize that this oftenunderutilized talent pool will bring unique interests, beliefs and cultural backgrounds that will be a tremendous asset in obtaining clients who share those qualities. With globalization and the influx of a new generation into the marketplace, many firms are recognizing the need for a professional staff that is more diverse and inclusive, so that they may more readily identify with a more diverse client base.

In my own experience, I have seen this concept in practice many times. When a team is comprised of a mixture of backgrounds and beliefs, people go into different communities and bring in clients because of their personal connections.

For example, I used to work with a woman who was connected to number of women’s organizations and she leveraged those relationships to grow her client base. I personally am very involved in community organizations based on my own interests

and experiences, and have cultivated a very diverse client base as a result. Your commitment to being open minded and inclusive can positively affect your bottom line, regardless of firm size.

Engagement at All Levels Small firms can work to keep minorities engaged at all levels of their careers.

Currently, there is a lot of focus on encouraging diversity in the profession at the middle school, high school and college levels. However, after two to five years in a firm, younger professionals may feel less engaged. I think there is a huge opportunity, specifically for smaller firms, to create an alternative. Typically, too much of the responsibility of increasing the number of minority accountants falls on the shoulders of the largest accounting firms.

While those firms have made great strides, they represent a small percentage of the opportunities in the accounting profession.

There is a large population that could be well served by a similar commitment to diversity and inclusion from smaller firms.

Firms looking to implement diversity and inclusion initiatives should start in the interviewing process. The firm, as well as the professional, should understand what area of practice is the best fit for that professional. As the professional develops, offer the opportunity to be involved with more ownership of the client work process and client development.

Ensure the professional has access to some form of mentoring within the firm 9

Don McCleod, CPA is a sole practitioner based in Dothan and former chair of the ASCPA. He was one of the subjects of the award-winning Pillars of Success video which featured Alabama minority CPAs.

or explore other mentoring options such as the AICPA mentoring platform.

Provide regular feedback, not just during performance evaluations. Seek to gain a better understanding of your co-workers’ diverse backgrounds and talents. Finally, utilize methods for personal time off for cultural celebrations, as well as other inclusive activities to help add to the overall enrichment of the firm.

Opportunity is There Now is truly the best time for young people of diverse backgrounds to enter our profession. As firms continue to see their client base change socially, culturally and ethnically, they can bring their own unique and personal experiences to help us better serve our clients. A commitment by small and mid-size firms to embrace these opportunities would be instrumental in recruiting and retaining those staff, and will have an impact for the overall good of our profession.

The Top 5 Reasons to Dig into the CPA Exam Blueprints Henrietta Eve, CPA

There are many things you don’t do unless you have the proper materials, information or training. You just don’t.

Construction crews don’t build a 100-story skyscraper without a structural design plan.

An amateur runner doesn’t jump into the New York City Marathon without having logged a substantial number of miles and completing a qualifying race. And neither you nor I can simply hop into a rocket and head off for a leisurely space walk without extensive training.

other way to say it: You want to know what’s on the Exam. It’s not a secret. The Exam Blueprints say it all. For each section, content eligible for testing is presented in organized charts with sub categories that break it down even further into groups and topics.

how much coverage a specific topic will get on the Exam. Within each section, the content allocation is presented by topic area. Along with section overviews of content areas, this helps you understand what type of content will receive greater focus within the section.

2) Discover approximately 600 tasks that may appear on the Exam. The best part of the Exam Blueprints is, in addition to providing the eligible test content within each section, they also provide approximately 600 tasks a newly licensed CPA should be able to do in relation to that content. While the list of tasks is not all-inclusive, each of the Blueprints’ sections offers greater clarity with regard to the types of tasks you may be presented with when testing.

5) Get a full list of reference materials for each Exam section. At the end of each section’s introduction, you’ll be presented with a bulleted list of references such as federal regulations or guidelines. Familiarization with these references will help you prepare, as they serve as the basis for the tasks included in each section.

As the Exam’s developer, the AICPA publishes the Exam Blueprints, which is an in-depth, section-by-section guide for candidates preparing to test. If you’re planning to sit for the Exam and said to yourself, What are the Blueprints?, you need to dig in right away because you’ll:

3) See the skill level for related content. The Exam is focused on testing higher-order cognitive skills, which are essential to your effectiveness as a future CPA. The Exam Blueprints’ introduction breaks down the approximate percentage of content you’ll see in each section at a particular skill level. Topic-by-topic, the Exam Blueprints also show the skill level at which you’ll be assessed and the task associated with it. From the most basic remembering and understanding to the more complex evaluation-level items, you’ll know what to expect when it comes to the skill level at which items are tested.

1) Know specific content that may be tested and what you’ll be expected to do. There’s no

4) Learn the content allocation for each section. One of the big questions for candidates is

The point is, as a CPA candidate, when you finally set foot in a testing center, you should have thoroughly studied and become familiar with the Exam’s content. One of the best ways to do this: study the AICPA’s CPA Examination Blueprints.

Not Just Number Crunchers

Laura Price Senior Accountant Barfield, Murphy, Shank, and Smith People see accountants as number crunchers, usually with pocket protectors and tape around their glasses to hold them together. Here at BMSS, we’re different.

I am fortunate enough to work at a firm that values community involvement. It has become a key part of our culture and, in fact, one of our employee perks is that every employee receives 3 full days of paid time off

for our own personal volunteer efforts. Some have used this opportunity to travel overseas for a mission trip, read to a first grade class for a few hours each month, or spend time helping to build a community garden.

Through firm-wide serve days, our people across Alabama are able to get involved, which fosters a culture of investment in our surrounding communities. So, as you consider getting involved in your community, here are five things to remember: 1. Know your passions, and invest there.

If you’re passionate about something, you’re more likely to be willing to put time into it, which is what non-profits need. They are looking for people willing to commit their time, and that passion is key to sticking to the time commitment.

2. Don’t overcommit wherever you invest.

Putting in a mile’s worth of effort is 11

As you can see, these are all good reasons why the Exam Blueprints should be your goto resource for studying. When I took the CPA Exam, candidates didn’t have access to something that brought as much clarity to the Exam’s content as these Blueprints. They should be a welcome addition to your study arsenal.

While I understand each candidate has a different style and strategy for how to prepare, the Blueprints are a must for the entire Exam journey. Just like the runner entering that big 26.2-mile run, you need to prepare. Start with the CPA Examination Blueprints.

Henrietta Eve, CPA, is lead manager of product development for the Association of International Certified Professional Accountants. This article originally appeared in AICPA Insights. great, but make sure it’s a mile deep and not a mile wide.

3. Use your skills to the non-profit’s advantage. If you are great at fundraising, fundraise! If you are a CPA, help with the budget!

4. But…don’t be afraid to learn new things. Being involved in the community has taught me about leadership and being a team player. Be willing to jump in wherever you are needed – you never know what you will learn!

5. Most importantly, have fun!

Community involvement, while meaningful, can and should be fun.

Having fun should be easy if you’re passionate about the cause, use your time wisely, and use your skills to your community’s advantage.

VIEW FROM THE FRONT OF THE CLASS

Dr. Scott Lane, CPA

Share your challenges in recruiting students into your program. How do you overcome the stereotype of accountants to high schoolers or freshman? I came from an environment where many accounting students had a parent or an uncle who were accountants and that lead them to pick accounting. Sometimes they were pressured to pick accounting, which was a problem.

When you have students who don’t have that kind of role modeling, explaining what an accountant does becomes more of a challenge. As one example, most high school students would look at accounting as bookkeeping although most of the bookkeeping is automated now.

In what ways are you dealing directly with them? We are trying to do more to talk with students through high school programs. We want to host an accounting career day on AUM’s campus to increase our ability to engage students.

When do you make the hard push for students to declare a major in accounting?

I speak to them at open houses and new student orientation sessions. Our AUM Accounting Club is very visible on campus.

And we look for high performers in the introductory accounting classes to see if they would like to sign up.

Accounting and the first day is always a career opportunity overview where I talk about public, private and governmental options that students have.

What are the demographics of your current crop of students? Our undergraduate accounting majors are around 65% female and 35% male, which is higher than the national average of around 50%-50%. They are about 60% white, 33% African-American, and 7% other. We have a lot of non-traditional students, either coming back to finish a degree or coming out of the military. It makes for a really interesting group of students.

What are you learning about the goals of your accounting students? Are they headed into public accounting, into private industry, into state or federal government or interested in becoming an entrepreneur? All of the above. We have 1,100 AUM accounting alumni and they are everywhere; in public, private and government spheres. AUM’s accounting advisory board is a great mix of backgrounds.

Is diversity an issue for your school or a focus for your program? What do your efforts to create more parity look like?

We work to support every student to try and give them whatever they need to be their best. My faculty is great in working with every student as an individual.

Are they interested in pursuing a CPA or other designation? Very much so. Even students interested in private industry or governmental accounting perceive a value in earning their certification.

Do you see significant differences in the behavior, attitudes, and focus of your students over the years? It’s really hard for me to group students by age because they

What factors seem to play into a student’s decision to major in accounting? Math skills, jobs prospects, and the desire to be a professional, I think.

“We work to support every student to try and give them whatever they need to be their best.”

How do you expose your recruits to the career options for CPAs? We conduct a lot of Accounting Club events each semester where CPAs, CFOs, and accounting organizations come on campus to talk about careers. I teach Managerial Cost

are all so very different and come from so many backgrounds. But the biggest difference I see is that each group seems to spend more time on social media and less time reading books than the generation before it. OK, I admit it, I’m old!

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What are you doing to encourage your students to become CPAs? We added our Master in Accountancy program a few years ago, which not only provides the 150 credit hours needed to be certified, but also an embedded CPA review program under the direction of program advisor Rhonda Seay. Our graduating students are doing great on the exam and it’s a fastgrowing program. We have about 40 MAcc students registered for this fall.

What is your school doing to prepare students for the workforce? Are there any programs that you consider unique or especially useful? Students are very enthusiastic about volunteering to provide tax services for low income taxpayers.

It’s great experience and helps serve the community. A lot of accounting majors will do internships each year which is a tremendous way to learn and network.

Also, the College of Business hosts seminars on dressing professionally, presenting well and winning the interview.

At a recent meeting of our Education Committee we discussed cheating. Is this a concern? How do you address cheating in the classroom? In online classes? Do you incorporate conversations about ethics in a systematic way? We are always vigilant about cheating. Accounting is about ethics, after all. I know we discuss it in several courses, including mine.

Do today’s students feel pressure to have a high GPA to be competitive? Do they see a direct correlation between academic success and employment options? Do they regard it as the ONLY way to get a recruiter’s attention? What other factors do they view as important? YES, on GPA

pressure. YES, on GPA as important to get a recruiter’s attention. However, we see that extra-curricular activities, such as our Accounting Club, the Beta Alpha Psi honor society, community service and work experience also have a tremendous impact. We have a lot of students working their way through college and that provides valuable experience.

Are financial constraints a significant factor determining whether students go on to graduate school and the CPA exam? Is there anything that you are doing, or that the ASCPA can tackle, to mitigate this? Many of our MAcc students are working to pay their way through the program. Many firms and businesses will pay some tuition or CPA review costs. We do have AUM scholarships that can help

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defray costs. Most of our students focus on the long-term payoffs of gaining the degree and the certification. After all, they are accountants!

Dr. Scott Lane, CPA, is director of the Auburn Montgomery School of Accountancy. Prior to joining the AUM staff in June 2016, he was an associate professor of accounting at Quinnipiac University in Hamden, Connecticut for eight years, was at the University of New Haven for nine years, and worked as controller for Cambridge Energy Research Associates in Cambridge, Massachusetts. He attended Texas A&M and received his Ph.D. at the University of Kentucky.

CREATING A PROFESSIONAL PIPELINE: THE ASCPA’S EFFORTS TO SUPPORT Dr. Jan Richard Heier, CPA ACCOUNTING EDUCATION IN ALABAMA The support of accounting education by the ASCPA has been a hallmark of the organization from almost the beginning. During the society’s organizational meeting in September 1919, it originated a standing (permanent) education committee with R. H. Screven (Mobile) named as its first chair.

Originally, the committee was formed to provide training to the Society members but soon it began efforts to support accounting education at all levels. These efforts over the past century have provided a solid and steady pipeline of new CPAs to fill the need and maintain professional sustainability.

It would not be until 1929 when the ASCPA actually voted to fund the research scholarship. It is uncertain if anyone was awarded the scholarship from 1929 because no mention was made in the minutes of the annual meeting or council. In 1931 the Society again approved $300.00 for research “fellowships.” At the 1932 meeting, Langston Hawley, who was awarded the “fellowship”, presented his research A Survey of the Accounting Procedures and Records in the County Government of Alabama to the attendees who “gave him a rising vote of thanks and appreciation for his splendid efforts.” 2 The work was completed under the supervision of Chester Knight, a long-term UA accounting instructor and department head. Shortly after Knight’s death in the early 1950s, the Society helped to fund a permanently endowed scholarship in the late professor’s name to help accounting undergraduate and graduate students. This scholarship currently endures as the annual Chester Knight Memorial Scholarship. Mention of the $25.00 awards (but not the competitive scholarships) continued in the minutes, on and off, for nearly thirty years and, in the interim, the committee expanded the awards to include students from five other schools3 in the state besides UA.

From the minutes of annual meetings, the committee’s first formal push came in 1922 when it wanted to prepare a report regarding the “the facilities available for education of current CPAs at Alabama colleges.” In 1923, Harold Crane (Montgomery) reported that the Alabama schools were “uncooperative in the matter of continuing education” so the committee chose to change its focus to helping accounting students and, in turn, helping the staffing needs of the profession in Alabama. One of its first initiatives in this area was to create a list “of accounting textbooks, libraries, other data, and make them available to all those interested in accounting education and to the various educational institutions of the State.” Support for education also came from the Society when it investigated and approved an accounting/bookkeeping program that was offered by the YMCA in Birmingham. At this point becoming a CPA in Alabama did not require a college degree and would not be formally required until 1989.

With the onset of the Great Depression in the 1930s and World War II in the 1940s, efforts to help students were largely put on hold. Revenues to the Society dried up as CPAs (like many others) lost their jobs but efforts to help train new accountants continued. For example, in 1942 the Society and long-term UA professor S. Paul Garner developed a program through the University to train new bookkeepers and accountants to staff the many defense contractors that operated in the state. The end of the war in the mid-1940s brought back an active Society Educational Committee whose would begin to make inroads with students considering public accounting as a career.

At the 1923 meeting, Francis Latady (Birmingham) also offered a motion, and the Society accepted, that “it would be up to the discretion of the Society Council for providing suitable prizes or awards to the students at the new School of Commerce at the University of Alabama (U of A).1” These prizes would be for “exceptional accounting research, not to exceed $25.00.” The purpose of the awards was to encourage, “interest [in accounting] at the [U of A] School of Commerce,” The Society once again passed an awards resolution at the 1926 annual meeting with the education committee also introducing and passing an additional motion to establish an annual scholarship with ASCPA funds not to exceed $300.00.

Although this seems like a miserly amount by 21st century standards, a UA General Catalogue from 1922 indicated that the cost to get an accounting degree for the nine month school year was as follows (not counting personal needs): Room rent, light, water and attendance Registration, Incidental, Library, gymnasium and medical fees Student Activities Fee Tuition Total

In addition to the scholarships and awards that began with the 1926 annual meeting, the minutes of that year also pointed to another way that new accountants could be trained and acclimated to the profession. In this case Walter Smith, a CPA in Mobile, explained that “Spring Hill College allowed accountant students to do some actual work in offices of the [CPAs] and that it allowed [academic] credit for such work.” Smith said he used “several of the students and encouraged other schools and firms to participate in this practice because the results were satisfactory not only to his firm, but the experience was of great value to the students.” Although never using the word internship, this practice from Spring Hill College would eventually develop into the standard (and some say required) internships provided by firms and supported by accounting programs to prepare students for accounting careers.

$45.00 $27.00 $13.50 $15.00 $100.50

Society efforts regarding internships began in earnest after World War II when veterans filled the colleges using the GI Bill. In 1945, the committee began a program to find internships specifically for UA students. In 1948,

1 * This is the fourth in a series of articles on the first 100 years of the ASCPA. All information

comes from the minutes of the ASCPA annual meetings and Council meetings. ** Dr. Heier is Professor Emeritus in the School of Accountancy at Auburn University Montgomery and now teaches part-time at Huntingdon College in Montgomery, Al. U of A was the only school in Alabama at the time to have professional School of Commerce (created in 1919). Springhill College, a Catholic Jesuit college outside of Mobile also provided a business and accounting curriculum with Alabama Polytechnic Institute (Auburn) having a “business science” curriculum with as of yet no school of business.

2 Langston Hawley went on to teach accounting at U of A in fall 1934. He received a Ph.D and then taught management at the school.

3 These included Alabama Polytechnic (Auburn), Florence State Teachers College (North Alabama), Birmingham Southern, Howard College (Samford) and Springhill College.

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the committee report suggested that the program possessed a “lasting significance for the future development of the profession in the state … [to encourage] some of the better students to consider public accounting as a career instead of going into private accounting.” To help the process of identifying students and graduates for potential employers, by the mid1950s the Society published a list of accounting graduates available for employment and made it accessible to the firms in the state. In a sign of the times, the information provided to future employers included the candidate’s Selective Service draft status along with basic biographical and academic information! The process was transformed into the very successful Accounting Interview Day, started with the help of Dr. Judy Kamnikar at Auburn-Montgomery. The program was designed to provide

began to make visits to the various universities and colleges to “liaison” with the faculty and talk with accounting students about choosing public accounting as a career rather than working for industry or banking. These efforts were soon to be called “… it helped me like a breath of fresh “acuman” meetings to get stuair financially. … My parents were dents acclimated to the accountthrilled when they heard … but when ing profession and lasted into the I explained to her the significance of early 1970s. the ASCPA, [my mother] understood

it was much more than just another Into the 1960s, the committee academic achievement. … I think it continued its work and stayed in contact with the educational in- showed her I I’m growing in my career, stitutions. It added Jacksonville and doing well at it. … it solidified my choice of becoming an accountant.”

College and University of South Alabama to the list of schools where accounting students would be eligible for the Society’s awards.

These awards, which now came with a medal, in addition to the $25.00 stipend, continued to show the Society’s interest in accounting education, but not necessarily its direct support. This particular program became the current Accounting Achievement Award given to the top student of each program in the state. It would not be until 1967 that the society would make its next major change in its educational focus.

Area scholarship students were recognized at the Birmingham Chapter’s May luncheon.

Although the records available do not give a specific date, it appears that in May or June 1967 the Education Committee was tasked with determining how the Society could set up a scholarship fund to directly support accounting students. This process culminated with the creation of the ASCPA’s Educational Foundation at the end of 1967. The first meeting of the new corporation board was in December 1967, with the following noted at the end of its original by-laws: “I, David E. Young4, Secretary of Educational Foundation of the Society of Certified Public Accountants, a corporation, do hereby certify that the foregoing is a true and complete copy of the by-laws of this corporation as submitted at, read to, discussed and adopted as the by-laws of the corporation at the first meeting of the Board of Directors held on the 15th day of December, 1967.” The Foundation’s tax 501(c)(3) exemption status would not be formally approved by the U. S. Internal Revenue Service until May 1968. Although the by-laws of the organization did not seem to mention it, according to a recent IRS Form 990 from 2014, the mission of the foundation was, “to encourage qualified students to enter the field of accounting and to provide financial assistance to those students”.

an opportunity for students from smaller Alabama accounting programs to interview with larger statewide and national accounting firms and businesses.

In 1950 the original internship program met with some difficulties when it was asserted that interns (and graduates) were leaving the state because many of the Alabama-based firms were not participating in the program or hiring new employees. In modern sociological terminology, this is called a “brain-drain.” In addition, it appeared that not enough new students were entering UA and other Alabama accounting programs to fill all of the requests for interns by out of state employers, let alone staffing any Alabama-based firms. With this in mind, during the 1950s and 1960s, the Society continued to devise ways to bring enough new people into the public accounting profession.

At the outset, the committee decided that the board members of the new foundation would be the five immediate past presidents of the Society. Although this would change with availability of funds and educational costs, the original scholarships would be no more than $500. Current scholarships are $2,500. At the 1968 annual meeting, the president of the new foundation, John Smither (CPA from Decatur) was questioned about the new foundation on several matters. The first matter led to a motion that two members who were not past presidents be put on the board. According to the minutes, it did not carry. In addition, the Society membership wanted to know if the foundation’s charter would be “published.” In light of a previous discussion about the amount of mail sent by the Society in 1967, it was decided to send copies of the charter “upon request.”

“a portion of financial burden is lifted off my shoulders so I can better focus on my final year… The scholarship will encourage me to influence others, especially students, to set high goals for themselves.”

Kermit T. Hart, a CPA from Mobile and president of the Society, noted in his 1952 report to the annual meeting that “an emphasis was needed for a greater understanding and assistance to the colleges that are training most of the future public accountants.” That same year, the Education Committee reported that it wanted to develop an orientation program for candidates of CPA exam to “reduce the mystery concerned with the examination.” As such the committee

Funding for the original scholarships would come principally come from the Society membership and individual CPA firm pledges. Each Alabama chapter of the ASCPA was responsible for contacting their local members.

4 David Young was also the first full-time Executive Secretary of the ASCPA.

_________________________ continued on page 28

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meet Bonnie Ms. Hairrell is an accounting instructor at Birmingham-Southern College. She took a winding road to the CPA designation and her career as an accounting educator, but she’s always been a teacher. At a point in life when others have retired, she’s still enthused about teaching accounting and about her students.

Bonnie Hairrell

psychology at Tennessee Wesleyan College and going back and forth to care for them. It sounds crazy to say it, but I was blessed during that period. I had an excellent babysitter, an understanding husband and a wonderful mother-in-law to support me.

I got up one morning to leave for Mobile, kissed the children goodbye and one crisis after another kept me from them for six months! All the travel back and forth took a toll on my teaching and the Ph.D. program, since both took a back seat to my parents. They passed away, my husband went through a job change and we moved to Roswell, Georgia.

The early years. I was born in Monck’s Corner, South Carolina, north of Charleston. Dad was attached to the Navy as an electrical engineer, considered a reserved occupation and exempt from military service during the second world war. He moved us to Mobile at the end of the war when I was five and I attended Murphy High School. I went to an all-women’s college in Decatur, Georgia, Agnes Scott, and majored in in psychology, mostly because my grades were highest in that subject! I graduated in 1963, and taught math and history in Atlanta while my husband Billy completed his engineering degree at Georgia Tech.

We moved to Athens, Tennessee and bought stock in a company which his dad and some associates had begun.

They were manufacturing heavy, tractordrawn equipment and the business kept us there for 20 years.

A new challenge lay ahead. I was in my mid-thirties and had been used to a hectic schedule (understatement). My father-in-law suggested accounting as a major and I fell in love with the topic.

Even though I was ten years older than the other students, I could fire a rifle, was fluent in French and wanted to be hired by the FBI. There’s no harm in setting goals! I completed my requirements for accounting at Kennesaw State and sat for the CPA exam. While at Kennesaw I met Dr. Betty Segal, who eventually became president of the college. She really thought I could work towards a Ph. D. in accounting. I was in public accounting for a year at a small local firm, Terry, Cerquada and Morgan, then we moved again.

I taught middle school math for seven years in this corner of Appalachia, where some children didn’t have more than a dirt floor. After realizing that I was listening to the children as much as I was teaching them, I went to UT Knoxville to get a master’s degree in educational psychology and counseling. I drove over the mountain 60 miles to go to class. During my last semester, I was recommended for their Ph.D. program. I was very flattered and immediately started it. But my parents, who were living in Mobile, both became ill and the next several years were spent teaching educational

My husband’s job with a foundry just outside of Birmingham meant that he had long hours. There was no school bus service for our young children, leaving me as the shuttle and “on call” driver. I decided that my schedule did

16

MEMBER PROFILE

not lend itself to a full-time job, but that I’d be able to work on a master’s degree in accounting at UAB during this period.

new intellectual and emotional challenge. What a joy and privilege to have the honor to keep on learning! I attended the ASCPA Women’s Summits and really enjoyed both the high-quality speakers and also networking with other women CPAs.

Birmingham-Southern College called asking if I’d like to teach for them. I had several things going for me. I was a CPA (so glad I got that credential!), had a lot of teaching experience, and had just completed my master’s degree in accounting. I never went back to public accounting and instead taught for 18 years at BSC. I retired in 2005 and that lasted until the accounting program was revived in 2012. Dr. George Klersey and I taught the beginning courses and other faculty was hired as the program rebuilt. It’s grown from having 5 accounting majors to 20 this year. I led the live Becker courses from 1991 until 2017, so it wasn’t as though I hadn’t kept my hand in while gone from BSC!

When I’m not in the classroom, you can find me out with the cows. Or just “out”. My husband and I have a very small farm. We raise miniature Herefords so that our granddaughter (who has some special needs) can learn to show them and earn performance ribbons. She even earned a big belt buckle last year. We were the first breeders to introduce the registered miniature breed into the state. My husband Billy is now retired and acts as our main cow wrangler. They’re very docile and a good choice for children or older adults who don’t want to handle a full-sized cow. When not actively farming, we like to travel. Just say “road trip” and we are ready with our bags packed. The destination isn’t important, it’s the journey that counts.

I currently teach the principles of accounting courses as an adjunct instructor, but formerly taught everything except tax and intermediate II. I honestly feel that whatever course I teach, the most important aspect of classroom interaction is to help the students feel that what they are learning will be useful in their future. I want them to see how they can help themselves, and others, understand the complex aspects of financial decisions, so that they can be instrumental in making a positive contribution to their clients or their firms.

What keeps you up at night? It’s been tough trying to balance my mental image of a “1960s wife and mother” and my desire to keep learning, to continue to grow professionally and to inspire my students to be all that they WANT to be, not CAN be (as the Army advertising says). It’s been a delicate dance, but one I would not trade for anything.

There’s a huge payoff. Our daughter English Gonzalez is a physician with the Family Residency program at St. Vincent’s Hospital. Our other daughter, Nicki Urban, has a Ph.D. in biomedical science and is currently a professor of chemistry and physics at a small program in Rhode Island. She continues to support her husband’s naval career as he teaches at the U.S. Naval War College in Newport. I think my academic career(s) rubbed off on both of our girls, although it was Billy who helped them in high school with math and physics. We both encouraged them to excel academically.

From my own experience in a variety of teaching settings, including those in the rural south, I’ve seen how important it is to have just one person believe in you. I certainly saw that in the math classes I taught in Appalachia to students who had very few resources. I saw how belief and encouragement can change the way a young person perceives his/her abilities and options.

It’s made me an “encouraging” professor of accounting. I also try to help students discover the many, many areas in which accounting is an essential tool.

It is a true joy and tremendous privilege to be able to continue working at Birmingham-Southern College and to be able to interact with former students and see how their lives have evolved. I especially enjoy witnessing how the role of women in the workforce has changed. Even 20 years ago, it was 20% women, 80% men in accounting. Now it’s more like 60% women and 40% men. It makes me proud and eager to continue to encourage the young women who are entering the profession today.

I’m a lifelong learner and that’s one of the reasons I joined the ASCPA. Basically, I want to continue to learn and feel that it’s important to associate (even if in a small and limited way) with colleagues in my field. It’s also a great way to introduce students to outstanding professional leaders. I LOVE the continuing education options at the ASCPA and especially enjoy being able to visit with former students. No day is ever the same. Each one has a

17

SERVICES

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CAREERS

Women to Watch award. She is a partner at Dent Moses LLP and has over ten years in public accounting. ___________________

Carden will be part of Ariss Financial Group, a private wealth advisory practice of Ameriprise Financial Services, Inc. ___________________

Warren Averett has named Mary Elliott as the firm’s new chief executive officer.

Elliott will succeed Jim Cunningham, who is retiring from the role at the end of 2017.

Elliott has worked her entire career at Warren Averett, successfully serving clients in the healthcare consulting division for more than 30 years, and has served as the firm’s chief operating officer and chair of the operations board since 2012. Elliott will be the first female CEO at Warren Averett and one of only three female CEOs among the top 35 firms in the United States. ___________________

Anita Atkinson has been named executive vice president and CFO at Corporate Realty 1.

She began her career with EY in Birmingham and has progressed as controller and CFO in health care, food service and software.

She will lead in the financial and strategic planning for Corporate Realty’s entities. ___________________

By: Joy Abbott February 24th, 2017 |

Insights Events Firm News

RESOURCES

Warren Averett CPAs and Advisors announced that the National Association of Estate Planners and Councils (NAEPC) has appointed Gregory E. Sellers to the editorial board of the AEP® Alert Technical Corner, the association’s Like 0 communication provided exclusively for the Accredited Estate Planner® designees. Sellers is a past president of the association, and has served2:38:56 in numerous Photo[postimages]/0/[8/21/2017 PM] volunteer capacities for NAEPC since 2005.

NAEPC is the national network of affiliated estate planning councils and multi-disciplinary credentialed professionals that provides a forum for networking and delivers resources and education to its membership. Sellers is a member of Warren Averett, and leads the estate, gift and trust service area for the central and south Alabama regional offices of the firm. ___________________

Tay Knight has been appointed executive director at Montgomery’s Family Sunshine Center. Knight has 25 years’ experience in public accounting with Warren Averett, with concentration in the public sector client group. She has Joy Abbott specialized in nonMore Posts profit auditing and worked closely with the Alabama Association of Non-profits as a board member. Knight served on the Family Sunshine Center’s board 2006 to 2013 in the roles of president, vice-president and treasurer, as well as on the center’s foundation board. She has also served on the board of the Leading Edge Institute, Auburn University’s Women’s Philanthropy Board and Connections Women’s Leadership initiative.

Knight is a graduate of Troy University. ___________________

Cindy Bryan has been named the Junior League of Birmingham’s

Jerry Carden, CFP/ PFS, CFP®, CRPS®, has joined the Montgomery office of Ameriprise Financial Services, Inc., as a financial advisor.

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Charles A. Stansell has joined Covenant Consulting in Tuscaloosa as an accounting/tax manager. He has over 25 years’ experience in public accounting and began his career with the IRS. His experience involves all aspects of accounting with a concentration in closely-held businesses and their owners. ___________________

Hartmann, Blackmon & Kilgore (hbk) has announced several promotions. LeeAnn May has been promoted to manager of accounting and auditing services. She began with hb&k in 2008 following her graduation from Troy University.

Throughout her career she has focused in audit and assurance working with nonprofit, governmental, contractor and employee benefit plan clients. May enjoys working with the next generation of CPAs through promoting and assisting with hb&k’s Leadership Academy.

Kate Thigpen and Matt Nettles were promoted to supervisors. Thigpen is in tax services and joined the firm in 2013 after completing both undergraduate and MAcc degrees at the University of Alabama.

She focuses on taz services for nonprofits, corporations, LLCs and individuals. She serves on the board of UA’s

Accountancy Alumni Young Professionals.

Thigpen oversees the internship program at hb&k by managing the schedules and professional development of each intern class.

Nettles is in the audit department. He joined the firm following his graduation from the University of West Florida. He works in audit and assurance services in the nonprofit, governmental, contractor and employee benefit plan sectors. Within the firm he is deeply involved in promoting hb&k’s Project 40 initiative. ___________________

Also at hb&k, Derrick Cook, Erann Thompson, Treya Tindal and Chris VanArsdale are new senior accountants.

Cook attended Troy University and received undergraduate and MBA degrees. He coordinates scheduling the firm’s recruiting efforts at Troy. He serves a variety of clients in the tax and audit departments.

Thompson is active providing assurance

services such as audits, reviews, compilations, tax services and forensic accounting and litigation support.

She is a graduate of the University of Alabama and works closely with hb&k’s internal committees and firm-wide recruiting.

Tindal worked briefly in Nashville after graduating from the University of Mobile.

She works in both the tax and audit departments. She’s involved with both the Leadership Academy and an internal committee dedicated to supporting and training new employees.

VanArsdale was an intern at hb&k while

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attending the University of South Alabama. He now assists with the firm’s recruiting at USA. ___________________

Matt Brown was promoted to staff accountant II in the tax services division at hb&k. He is another Troy graduate and started in the Brewton office in 2015. He works in both tax and audit department preparing tax returns, compilations, reviews

and working on various audit assignments.

WHAT’S GOING ON OUT THERE? Birmingham firms Borland Benefield and Lovoy Summerville & Shelton have merged.

The new firm will operate under the Borland Benefield name with a total of 45 employees and will now have a statewide footprint with offices in Florence and Auburn.

The merger gives the firm the ability to serve clients with global resources through its affiliation with BKR International.

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INTERN

at Kroger and felt comfortable dealing with almost any situation. Working in retail made me much more confident with strangers and forced me to think on my feet. This really helped when talking to accounting firms at recruiting events. My internship with the ASCPA involves speaking with members on the phone, through email and in person so my retail experience has helped a ton.

Matthew Berube

I gained experience of another sort when I volunteered for the SaveFirst tax prep program.

At the Alabama Society, the intern pipeline is kept full, usually 12-18 months in advance.

Matthew Berube (Ber-bee) was just starting his MAcc at Auburn Montgomery and available when another intern had to drop out. It was a smart decision for the ASCPA. His original period as the summer intern has been extended into the fall, providing some needed continuity as two ASCPA staff members are on maternity leave. Berube’s working with the CPE department, helping CFO Amanda Freeman with AP, assisting on peer review projects and was co-editor for this issue of CONNECTIONS. Like other fall interns before him, he’s the administrator for Accounting Interview Day, doing a great job handling the details of scheduling interviews for 50+ students and more than a dozen recruiters.

As a high school student, I was completely unaware of all the careers and opportunities available in the business and finance world. I think that “high school me” would have been attracted to a career as a CPA with a message that emphasized the breadth of options in the profession. Young workers tend not to stay with a single company in their early careers.

Having the CPA designation opens doors in so many different directions, and that kind of career flexibility would have been appealing.

Entering Auburn, I was torn between pursuing a degree in engineering or in business. I had taken an economics course in high school and developed an interest in how businesses and the economy worked. However, I decided to major in engineering because I believed that it would lead to a more lucrative career. By the end of my sophomore year, I discovered that I was not cut out for engineering (those math classes!) and decided to explore my interest in business. My mom had just decided to go back to college as an accounting major, and I thought this sounded like a great idea.

Save First is a fantastic volunteer opportunity for any accounting student. It provides a free tax return service for thousands of lowincome individuals and families in Alabama.

Without this service, many of these people would be taken advantage of by store-front tax services that are only seeking their own profit or may even be fraudulent. Volunteering with SaveFirst changed my perspective by exposing me to people from so many different backgrounds. I’ve volunteered with SaveFirst for the last two years, and will work with them again this year.

Three years later, I am working towards my master’s in accounting (MAcc) at Auburn Montgomery and have been happily interning almost non-stop in the accounting world; first with Carr Riggs Ingram and now at the ASCPA.

As I complete the MAcc program, I plan to sit for the exam in summer 2018, using Becker Review study materials. At this point, public accounting is my goal, perhaps migrating to a practice which includes forensic accounting or financial planning as specialties.

I expected my accounting classes at Auburn to be nothing but an endless series of debits, credits, checklists and tax forms. While these were definitely part of the experience, the more interesting aspect was digging deeper into the principles behind accounting and the systems that businesses put in place to achieve accurate reporting. For instance, my auditing and business processes classes dove deeper into internal controls and their effect on external audits and internal management.

With my mom’s return to school she’s been an inspiration for my sister Rachel and me.

Rachel is two years younger and a graduate of Auburn’s soil science program. She’s now at North Carolina State to earn her master’s in horticulture – weed science. She also has a passion for community work and working with kids. Her major and mine aren’t very aligned, showing that the same gene pool can produce very different results (she could probably explain how that works).

What was great about my experience at Auburn was that the accounting department provided many opportunities for students to connect with public accounting firms and businesses. I had plenty of chances to improve at networking and to polish my social skills by introducing myself to new firms. These events led me directly to an auditing internship.

I’m really enjoying my internship with the ASCPA. Even though I do a lot of typical “intern” tasks, such as filing and filling out forms, there have been many opportunities to work on unique tasks, such as this magazine. Working with so many different projects and tasks has also given me a better perspective on all the work that goes into running an organization. I have also gained a lot of respect for everyone at the ASCPA. They are always taking on new projects and creating programs to make the Society better for its members.

While in school, I worked first at a Walgreens and then at Kroger. During my first day at Walgreens, I was so nervous about talking with customers. By the time I graduated, I was working at the customer service desk 22

ASCPA Student Member Benefits Joining the ASCPA is more than listing your membership on a resume. There are other benefits which can make entering the profession a gentler process.

§ Accounting Connections Conference Student Session each June – no charge. § Diversity and Inclusion Conference in early September – no charge.

Is the price tag for a CPA review program jaw-dropping? Keep in mind that you can ask, as part of the interview process, whether or not your new organization will pay for all or part of the cost of the CPA exam. They WANT you to become a CPA! Becker Review also has scholarships available through your university and two which the ASCPA awards. We’re happy to send you an application for the semi-annual scholarships. Here are the standard student discounts for each program.

§ Volunteer with the Young CPAs during their Classroom Blitz high school program in November. § With 6,200 members, your future boss is probably already a member of the ASCPA! Communication – it’s always about communication. The ASCPA’s bi-monthly CONNECTIONS magazine comes to you in digital form. The weekly digital newsletter, #ALCPAsuccess, arrives in your inbox every Tuesday afternoon. It’s full of the most topical and timely news across the spectrum of ASCPA activities. You’ll receive emails about CPE sessions, about chapter meetings, about conferences and other events. Take advantage of as many of these as you can.

§ Becker CPA Review: $400 off § Gleim Review Systems Materials: 20% off § Kaplan Schweser CPA Review: 30% off § Surgent Kolar CPA Review: 20% off § Roger CPA Review: Up to $434 or 15% off

Your professors may have some other great ideas why student membership in the Alabama Society makes sense. It’s a $25 investment that lasts as long as you’re an undergraduate student. We know YOU’RE already a member, or you wouldn’t be reading this, so spread the word and persuade other accounting students to join. www.ascpa.org

ASCPA events are not just for CPA members. You’re encouraged to attend chapter events in your local area. That information is available on the website or in the weekly digital newsletter which comes to the email address you listed in your application. If there is a fee for the chapter event, ask local organizers if there is a reduced student fee.

23

THE NEW PARTNERSHIP AUDIT RULES: ARE YOU AND YOUR CLIENTS The effective date of the new federal partnership audit rules is fast approaching, and it’s clear that most of our Subchapter K clients (i.e., partnerships and multi-member LLCs) have taken a wait-and-see approach either because (a) they’re not convinced the new rules apply to them, or (b) they’ve heard that the rules might be delayed, or at the very least, altered by a technical corrections bill or by IRS “interpretation” principally through their 277 pages of proposed regulations. Tax practitioners are beginning to panic, as evidenced by the titles of several recent law firm newsletters, our favorite being “Holding the Bag: Update Your Operating Agreement or Face the (Tax) Consequences.”

We have taught mini-seminars on this topic to various CPA firms around the state and at the Alabama Society of CPA’s 2017 annual meeting, and from those experiences here are some FAQ’s (without our typical footnotes and caveats) that we hope will be quick reading and that you can cut and paste into a newsletter or mergetext letter to your Subchapter K clients, soon. We’ll use “partnership” and “partners” throughout this article, but that includes multi-member LLCs classified as partnerships and their members where appropriate.

1. Why should my partnership clients (and I) be concerned about the new rules?

You’ve probably already heard that the Bipartisan Budget Act of 2015 created a comprehensive new partnership audit regime. Well, this is what “repeal and replace” actually looks like. The current tripartite regime, meaning the TEFRA audit

READY?

rules, the elective large partnership audit procedures, and the default rules, is repealed effective for tax years beginning after December 31, 2017. There will be no such thing as a tax matters partner or the fundamental principle that partnerships are not taxpayers for income tax purposes. The partnership audit will be performed by the IRS (and perhaps by the states) at the partnership level, and by default, the partnership will be liable for any income tax deficiency, interest and penalties. Worse yet, at least from the perspective of us lawyers, the partners LLC members will have no statutory right to participate in the audit or any resulting appeal. A new creature, called the “partnership representative,” will have sole authority to speak for the partnership and its partners.

told bar and CPA groups they want these new rules to apply to as many arrangements as possible. Notably, the rules do not apply to disregarded entities such as single member LLCs (regardless of whether they have elected to be treated as corporations, or S corporations, or trusts).

However, as we mention below, single member LLCs and trusts can be problematic.

3. What do you mean my partnership is covered by the new rules?

We only have 3 partners!

As mentioned above, we expect many clients will be surprised that their partnership is even covered by the new rules. That could result from either having one or more ineligible partners, or having failed to make the annual opt-out election by filing the Form 1065 (with the new opt-out box) one day late.

Congress has been told that the new rules will raise approximately $9.3 billion over the next 10 years and a substantial amount of revenue will likely be generated for the often cash-starved states. For those states with an income tax, this will be like found money.

Most tax advisers will suggest that if your client can opt out, do it.

Your client’s lenders may require that, too. The new rules provide relief from the entity-level tax for partnerships that (a) issue 100 or fewer Schedules K-1 annually, (b) are owned by some combination of individuals, estates of deceased partners, C corporations, and S corporations, and (c) as mentioned above, timely file their Form 1065 and check the correct box. In the case of S corporation partners, each shareholder is considered a partner for purposes of headcount. As mentioned above, Treasury has indicated there will be no grace in terms of expanding the pool of eligible partners/members. For example, if even one member of the LLC is itself another LLC or a trust – even a sin-

2. To which entities do these new rules apply?

Obviously, traditional partnerships and multi-member LLCs are covered, but here’s the first surprise: so are joint ventures and other arrangements that the IRS will try very hard to classify as partnerships for federal income tax purposes.

For example, many co-investment funds and special purpose vehicles set up to hold particular assets could be covered. On several recent occasions, Treasury officials have 24

gle member LLC or a grantor trust –the opt-out election is not available. (Our estate planners are not happy.) And any complex or tiered LLC structure won’t be permitted to opt-out. Note that the partnership representative must make the annual election, not the president, CFO, managing member or the CPA. 4. Who controls the audit? Which partners will have a say-so?

Under the new rules, the partnership must designate a “partnership representative” (PR) for each tax year, and that individual or entity will control the audit and any appeal. By statute, the PR is the only person empowered to work with the IRS, and based on the proposed regulations, it’s going to be difficult to fire the PR, at least externally. If the PR is an entity, the proposed regulations require the partnership (not the PR) to designate a live human being, otherwise known as a “designated individual,” who’ll be the only person authorized to deal with the IRS. The PR, or the designated individual of an entity PR, need not be a partner in the partnership, and we can foresee a new cottage industry of “professional” PRs springing up to represent multiple partnerships, akin to registered agents for corporations but with some tax expertise.

Under the new rules, the PR (or the designated individual, if the PR is an entity) controls all partnership audit proceedings with the IRS, and according to the proposed regulations, the partners may not participate, and there is absolutely no requirement that the IRS inform the partners of the audit proceed-

BABC SALT CORNER ing in any circumstances. But here’s where the partnership agreement comes in: the agreement may require the PR to provide notice of and updates on audit proceedings, to obtain partner votes on various issues, and otherwise restrict the activities of the PR. A breach of an obligation under the partnership agreement by the PR may be pursued under contract law, or in some states, possibly as a breach of fiduciary duty since the PR arguably acts somewhat like a trustee. Obviously, it’s extremely important to appoint a qualified PR (and a designated individual if the PR is an entity).

Failing to do so will allow the IRS to appoint one – sort of like a court-appointed attorney. Thankfully, the proposed regulations impose some restrictions on that selection process.

5. Who pays the audit adjustment?

Generally, the partnership itself will be responsible for paying any income tax, interest and penalties that arise from an IRS audit, post2017 tax year. Thankfully, there are 2 mechanisms (3 if the 2016 Tax Technical Corrections Bill is reintroduced and enacted), that can mitigate the damage but can put the PR in a quandary, as discussed below. The BBA and proposed regulations provide a mechanism to reduce the impact of an audit adjustment by, for example, allowing the PR to prove that certain partners filing amended returns are in a tax bracket lower than 39.6% (e.g., C corporations) or are tax-exempt organizations. And even after the proposed adjustment is reduced in that manner, the PR has the election to “push-out” the final audit adjustment to the persons or entities who were the partners during the so-called “reviewed year.” The proposed regulations clarify that if the PR makes that election, the partnership is off the hook for the audit adjustment and the liability shifts to the reviewed year partners, or perhaps by that time, their estates. With the PR possessing that power, somebody will not be happy, whether that will be the reviewed year partners or the current (“adjustment year”) partners who will indirectly, or perhaps directly, bear the brunt of the tax liability.

6. So what do we do now?

First and foremost, CPAs should promptly contact their partnership clients (and document those efforts) to be sure each is aware of the impending rules and is examining their ownership structures. For example, if a family LLC or LP has a grantor trust or a single member LLC as a member, the client should consider transferring those membership interests away from ineligible members. This must be done by December 31, 2017 since eligibility will be determined as of January 1, 2018, and throughout the years thereafter.

client(s) may wish to impose strict reporting obligations on the PR and require them to seek partner input on major decisions, e.g., whether to extend the statute of limitations, or to appeal or settle, and whether to make the push-out election described above. On the other hand, there is a tradeoff with imposing strict duties – the more burdens placed on the PR, the more difficult it will be for your client to convince a trustworthy and competent individual to serve in that capacity.

There are a number of items that need to be addressed in any new or amended partnership agreement,

By Bruce P. Ely William T. Thistle, II Bradley Law Firm Birmingham, Alabama

This suggestion leads to the next one: Every partnership agreement must be reviewed – soon. Since every Subchapter K entity (big or small) should have a PR, preferably appointed this Fall or next Spring, the client needs to consider who would be the best PR, and our next word of advice is: Not you. Depending on who you represent in this matter, you may suggest that the client build a high wall of protection around the PR and any actions he or she may take in that capacity. On the other hand, your

and this article only scratches the surface. Our July 2017 Federal Tax Alert posted on the ASCPA website provides a long list of items that should be considered for inclusion in any new or amended agreement.

When should these amendments be made? Now. And obviously, any new partnership or LLC agreement should address these issues.

Although the proposed regulations have yet to be finalized as of this date, and we expect more guidance in the next few months, there is little chance the rules will be delayed 25

or materially changed in the near future. Explaining all of this to your many partnership clients will take time. It might take multiple meetings and telephone conferences, the input of a competent tax attorney, and perhaps some courting of the individual your client hopes will agree to serve as the PR. Remember, almost all partnership agreements require unanimous consent to be amended for fundamental changes like we’re suggesting here, and yes, they need to be reviewed by experienced tax and partnership counsel.

7. That’s just the federal rules?!

What about the states?

Your co-authors chair a Task Force of the American Bar Association Tax Section’s SALT Committee on the state implications of these new rules. We have been involved in drafting a model act that we hope will be adopted by every state with an income tax, plus Texas (who isn’t quite sure whether they have an income tax, depending on the circumstances). For more information on the proposed model act and related state-level issues, see the following articles: “MTC, Business Groups Respond to Federal Partnership Audit Rules,” State Tax Notes (Jan. 9, 2017); “Tax Pros Float State Law Model for Partnerships,” Law 360 (Jun. 8, 2017); and “Parties Unveil Model State Statute for Partnership Audit Law,” Bloomberg BNA (Jun. 9, 2017). Links to each of those articles are available on our website: www.bradley.com.

If we can assist you or any of your clients in this regard, please don’t hesitate to contact us at bely@ bradley.com or wthistle@bradley. com, or Stuart Frentz at sfrentz@ bradley.com, our Nashville tax partner, Mark Miller, at mwmiller@ bradley.com, or our Jackson tax partner, Steve Wilson at swilson@ bradley.com. © August 2017.

All views expressed in this article are those of the authors and not necessarily those of their law firm, the ABA Tax Section, the ASCPA, or other associations with which they are affiliated.

ASCPA VOLUNTEERS

Making the ASCPA mission possible.

The Alabama Society is 6300 members strong. The strategic plan of the ASCPA is implemented through a network of involved, committed volunteers, the heart of any non-profit organization, with the assistance of the Society’s ten-person staff. As increasing numbers of CPAs retire from the profession in the coming years, amazing opportunities to serve are available.

Do YOU want to get involved but aren’t sure where or how you fit in? Is making a mark on the profession one of your career goals? Do you see where your input and knowledge could benefit other members? We’ll help you find a home within the ASCPA when you indicate your preferences. Review the options on this form, complete it and send to Diane Christy, dchristy@ascpa.org. You’ll be paired with a staff member who can get you started. Questions? Call 334.386.5752.

NAME______________________________________________________________________________________ ORGANIZATION_______________________________________________________________________________ OFFICE PHONE_________________CELL PHONE_________________EMAIL______________________________ I’m a CPA in: ⃝ PUBLIC ACCOUNTING ⃝ BUSINESS and INDUSTRY ⃝ EDUCATION ⃝ GOVERNMENT ⃝ RETIRED/UNEMPLOYED I’m interested in volunteering: ⃝ CHAPTER

⃝ YOUNG CPA CABINET (by application each January)

⃝ COMMITTEE (circle one)

⃝ BOARD OF DIRECTORS (through nomination each January)

EDUCATION STATE TAXATION FEDERAL TAXATION AUDIT

⃝ CPE TASK FORCE (help plan specific individual conferences and overall education program) ⃝ YOUNG CPA CLASSROOM BLITZ (high school outreach each November) ⃝ TAX HOTLINES (each February) ⃝ CPE SPEAKER/WEBINAR SPEAKER/ON-SITE CPE ADMINISTRATOR

CPA PAC

⃝ YCPA CHARITY GOLF TOURNAMENT

ETHICS

⃝ KEY PERSON CONTACT (support ASCPA’s advocacy efforts at state

PEER REVIEW PROFESSIONAL STANDARDS

and federal levels) ⃝ PROFESSIONAL ARTICLES (CONNECTIONS magazine, weekly digital newsletter)

DIVERSITY and INCLUSION

26

NATIONAL PERCENT

PASS 47.62% 47.88% 44.14% 48.46% 47.02%

PASS 46.59% 55.45% 46.95% 48.76% 49.44%

From the above we can see that although BEC continues to have the highest pass rates nationally, Alabama has the largest disparity in this section. BEC is the least technical part of the exam and relies more on memorization skills than on task based simulations. We will soon know the answer, but some speculate that Alabama students may perform better when given task based simulations rather than exams

?

Was the INVENTORY Year-End Count a difficult process this year?

Would you like to monitor and control LABOR costs?

?

Are you MANUALLY entering a lot of data every day?

?

Has Management asked for Operational and Financial DASHBOARDS in real time?

Do you have approvals in place that you can monitor through WORKFLOWS?

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AUDIT BEC FAR REG OVERALL

ALABAMA PERCENT

Quessons to Ask Yourself

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There are certain sections of the exam that Alabama candidates do experience higher test scores than other sections. Over the last ten years Alabama’s average percentage pass rates are as follows:

D. Boyd Busby is the executive director of the Alabama State Board of Public Accountancy. He is a graduate of Troy University, worked at Wilson Price Barranco Blankenship & Billingsley and Hodges Financial Services before becoming CFO at Hodges Logistics.

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The following graph provides a visual of how Alabama overall pass rates have compared to the national average pass rate over the past ten years:

My experience, and feedback from successful students about their experiences, has led me to give just two primary pieces of advice before undertaking this exam. One, don’t underestimate the difficulty of the exam and two, spend a large amount of time preparing for the exam.

Successful candidates have planned carefully for which sections to take during certain testing periods based on their work load, whether they are in school or in the workplace. They have mapped out their study time and the study

?

Alabama has seen a mixed bag of results over the last ten years with an average pass rate of 47%. During the last ten years, Alabama has ranked 33rd and 30th in pass rates and average score, respectively, when compared to the other 56 jurisdictions. I say the results are a mixed bag because Alabama has ranked as high as 6th and 3rd on pass rates and average score, respectively, and as low as 50th and 42nd. Also, there is no correlation between the number of testing time periods or the number of candidates testing and the outcome.

Always remember, success is realized at the crossroads of preparation and opportunity.

Prepare early and often and you will succeed when given the opportunity to sit for the exam.

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The CPA exam is one of the most difficult professional examinations in the country. This is evidenced by pass rates that have averaged 49% over the past ten years. The exam is difficult because of the vast amount of information to be tested and the expectation that the candidate who passes and becomes a CPA will possess the knowledge base and the qualities needed in our profession. The CPA credential will remain the most trusted credential because of the rigorous exam and rigorous requirements to take the exam.

One major change that the State Board made in 2016 was to reduce the hours required to test from 150 to 120. There remain specific classes that must be taken to qualify to sit, but this reduction in hours should assist and encourage students to test early. Keep in mind that although you can sit for the exam with 120 hours, you will need 150 hours to become licensed, and that you have 36 months from the time you passed the last section to obtain the required 150 hours.

If the 150 hours are not completed within this time period, you will forfeit the entire exam.

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Boyd Busby, CPA, Executive Director Alabama State Board of Public Accountancy

material. They have invested in a reputable review course and have not sped through material, but have taken the time to become proficient in each section before sitting.

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CPA Exam Trends in Alabama

that just test on memorization. If true, Alabama’s scores could increase with the new exam. The State Board will be watching the results closely once we have enough data to analyze.

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Let the team of DLD Business Soluuons and Microsoo Dynamics GP assist you in meeeng your business objeccves this year.

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27

_________________________ continued from page 9 and review topics we have learned in our classes.

For me, it’s important to find a job where I am fulfilling my purpose and can help people on a daily basis. Every day, I want to get up and be excited about going to work and know that I am making an impact on the world. So many people have helped me to get to where I am now; I want to achieve a position that allows me to help other young professionals and businesses succeed in fulfilling their own career goals.

_________________________ continued from page 15 For the first six months of 1968 the foundation had $25,000 in pledges with $17,000 coming from individuals and the rest from firms. As of the June 1969, Foundation Secretary/Treasurer Jim Money of Tuscaloosa reported that the foundation had received $64,000 in pledges and it was felt that the “$100,000 goal of seed money could be met by the end of the year.” Unfortunately, according to council minutes, in 1971 it became apparent that collections of the pledges would be $10,000 less than anticipated due to “an over accounting” of the original pledges from the Mobile area. This created a situation where the new foundation was without enough funds to pay for administrative support and provide the requisite scholarships in 1969. As a result, the Society took responsibility for those costs and would for many years to come.

Even with this shaky start, as we celebrate the 2017 fiftieth anniversary of the Educational Foundation, the record shows that it has been a great success.

The Foundation has a current endowment fund in excess of $1.5 million. Most recently, there were awards of $75,000 for academic year 2017/18.

These scholarships are awarded via an application process, although about half of the general scholarships are selected by faculty. There are other awards created by specific endowments and more based on student financial need and the efforts to expand diversity in the profession. Although the membership and firms continue to provide funding each year for the Foundation, a large part now comes from investment income and proceeds of the Young CPAs Annual Golf Tournament which raises around $20,000. This effort continues to impress upon the younger members of the profession, some of whom had recently benefited from the scholarship program, the need to help sustain the CPA profession into the future by providing a pipeline of highly educated, trained, and motivated young accountants.

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28

REMEMBERING JOHN “TERRY” CHAMBERS

ROBERT EARL “BOBBY” WRIGHT

JERRY WAYNE BUNDY

Formerly of Samson, Chambers died at home in Defuniak Springs at age 54. He was born in Geneva County and graduated from Samson High School in 1981. He attended Troy University and was a member of Pi Kappa Phi. He also studied at the University of Georgia. He loved to fish, play golf and spend time with his friends and family. He is survived by his mother, sister, nephews and other family. He leaves behind his special canine companion Tide.

Born in Walker County, Wright was graduated from Walker County High School and the 1967 class at the University of Alabama. He served in the Air Force and Alabama Air National Guard March 19661972. He worked at Deloitte, Haskins & Sells in Birmingham, was the first corporate controller at Nissan Motor Manufacturing in Tennessee, worked at Gannett Outdoors Group and then was a vicepresident at USA Today (Gannett) in Alexandria, Virginia. His love of animals led to his becoming CFO at the Birmingham Zoo for a number of years.

Bundy was born in Atmore and died at the North Baldwin Infirmary. He was a sole proprietor, owner of Bundy and Associates in Bay Minette. He was a veteran of the U.S. Army and served during the Viet Nam war. Services were held on July 3 with interment at the Alabama State Veterans Cemetery in Spanish Fort. Pallbearers were members of the Bay Minette Rotary Club.

December 26, 1962-June 8, 2017 Defuniak Springs, Florida │ Certificate 3733

May 18, 1943-June 11, 2017 Trussville, Alabama │ Certificate 1060

April 17, 1945-June 29, 2017 Bay Minette, Alabama │ Certificate 1556

30th Annual Governmental Accounting and Auditing Forum In Partnership with the Association of Government Accountants and the Government Finance Officers Association of Alabama

December 14-15 Birmingham Marriott

29

UPCOMING COURSES 177 Cybersecurity Risk Management Program: What You Need to Know 9/15/2017 | 1:30PM | Montgomery CS: 4 177-A Blockchain 101 9/15/2017 | 12:00PM | Montgomery CS: 1 096 Individual Tax Planning Ideas for 2017 9/18/2017 | 8:30 AM | Mobile | TX: 4 097 Meet Your Next Migraine: Five Critical Issues that Will Confront A&A Public Accountants in 2017 9/18/2017 | 8:30 AM | Mobile | AA: 4 098 Accounting and Auditing Update 9/18/2017 | 8:30 AM | Pelham | AA: 4 099 Maximizing Your Social Security Benefits 9/18/2017 | 8:30 AM | Pelham | TX: 4 100 Controller’s Update: Today’s Latest Trends 9/18/2017 | 8:30 AM | Pelham | Finance: 4 101 IRS Tax Examinations and Hot Issues 9/18/2017 | 1:00 PM | Mobile | TX: 4 102 Guide and Update to Compilations, Reviews, and New Preparations 9/18/2017 | 1:00 PM | Mobile | AA: 4 103 Meet Your Next Migraine: Five Critical Issues that Will Confront Tax Public Accountants in 2017 9/18/2017 | 1:00 PM | Pelham | TX: 4 104 Internal Control: How Does It Impact an Audit?

9/18/2017 | 1:00 PM | Pelham | AA: 4 105 Lean Accounting and Management: Saving Money by Streamlining Operations 9/18/2017 | 1:00 PM | Pelham | Finance: 4

106 Non-Traditional Services and Other Methods of Making a Living for the Small Practitioner Who Doesn?t Audit or Review 9/19/2017 | 8:30 AM | Montgomery | AA: 4 107 Guide to the New Revenue Recognition Model for All CPAs 9/19/2017 | 8:30 AM | Mobile | AA: 4

116 Select Estate and Life Planning Issues for the MiddleIncome Client 9/19/2017 | 1:00 PM | Pelham | TX: 4

138 K2’s Securing Your Data Practical Tools for Protecting Information 9/20/2017 | 1:00 PM | Pelham | CS: 4

117 Thriving in a Chaotic Environment: Planning and Strategy Formulation for Your Organization 9/19/2017 | 1:00 PM | Pelham | Finance: 4

129 Shorten Month End: Closing Best Practices 9/21/2017 | 8:30 AM | Montgomery | AA: 4 130 Data Breaches & Other Cyber Frauds: A 21st Century Risk to Your Organization 9/21/2017 | 8:30 AM | Pelham | SK: 4

118 Latest Developments in Government and Nonprofit 108 Partnerships and LLCs: Accounting 2017 Avoiding Common Pitfalls Facing 9/20/2017 | 8:30 AM | Mobile | AA: 4 132 Critical Thinking Skills for Practitioners Financial Professionals 9/19/2017 | 8:30 AM | Mobile | TX: 4 119 The New Controllership: 9/21/2017 | 1:00 PM | Montgomery Keys to Boosting Financial | MG: 4 109 Preparation, Compilation, Performance and Review Engagements: 9/20/2017 | 8:30 AM | Mobile | AS: 4 133 Forensic Investigations: Key Update and Review Tools to Success 9/19/2017 | 8:30 AM | Pelham | 120 The Bottom Line on the New 9/21/2017 | 1:00 PM | Pelham | AA: 4 AA: 4 Lease Accounting Requirements 9/20/2017 | 8:30 AM | Pelham | AA: 4 142 K2’s Technology Update 110 Critical Tax Factors in 9/21/2017 | 8:30 AM | Pelham | CS: 4 Business Life Cycle Decision121 Individual Income Tax Making Update 9/20/2017 | 8:30 AM | 149 K2’s Microsoft Office 9/19/2017 | 8:30 AM | Pelham | TX: 4 Pelham | TX: 4 Improving Productivity with New Features 111 Innovative Forecasting and 123 Latest Developments in 9/21/2017 | 1:00 PM | Pelham | CS: 4 Budgeting: Moving Beyond Government and Nonprofit the Traditional Techniques Auditing 2017 122 K2’s Excel Financial 9/19/2017 | 8:30 AM | Pelham | 9/20/2017 | 1:00 PM | Mobile | AA: 4 Reporting and Analysis Finance: 4 9/25/2017 | 8:30 AM | Pelham | AA: 4 124 The New Controllership: 112 Financial Statements of Keys to Boosting Management 127 K2’s Business Intelligence, Not-for-Profit Organizations: Skills Featuring Microsoft’s Power BI Significant Changes Have 9/20/2017 | 1:00 PM | Mobile | AS: 4 Tools Occurred!

9/25/2017 | 1:00 PM | Pelham | CS: 4 9/19/2017 | 1:00 PM | Montgomery | 125 A+ College Savings AA: 4 Planning: Maximizing Resources 136 Sirote’s Hottest Tax Topics and Tax Benefits of 2017 113 More than Meets the Eye: 9/20/2017 | 1:00 PM | Pelham | TX: 4 9/25/2017 | 8:30 AM | Pelham | TX: 4 Examining the New Lease Accounting Standard 126 The Most Common Financial 137 Fraud in Small-to Medium9/19/2017 | 1:00 PM | Mobile | Statement and Asset Fraud Sized Entities AA: 4 Schemes: How to Detect and 9/25/2017 | 8:30 AM | Pelham | AA: 4 Prevent Them 114 K-1 Boot Camp for LLCs 9/20/2017 | 1:00 PM | Pelham | AA: 4 139 Real World Business Ethics 9/19/2017 | 1:00 PM | Mobile | TX: 4 9/25/2017 | 1:00 PM | Pelham | 128 Annual CFO Spotlight: Ethics: 4 115 Interpreting the New Essential Skills Revenue Recognition Standard: 9/20/2017 | 8:30 AM | Montgomery 140 The Myths and Concepts of What All CPA?s Need to AA: 6 | MG: 2 Succession Planning for FamilyKnow Held Business 9/19/2017 | 1:00 PM | Pelham | AA: 4 135 K2’s Tech Tools and Gadgets 9/25/2017 | 1:00 PM | Pelham | for a More Efficient You! Other: 4 9/20/2017 | 8:30 AM | Pelham | CS: 4 30

View the entire 2017 CPE schedule on the website, ascpa.org.

141 Complete Guide to the Yellow Book 9/25/2017 | 8:30 AM | Montgomery | AA: 8

152 Latest Developments in Government and Nonprofit Accounting and Auditing 2017 9/26/2017 | 8:30 AM | Montgomery | AA: 8

131 K2’s Excel Tables and Data Models - Efficiently Managing, Analyzing & Reporting Your Data 153 Non-traditional Services 9/26/2017 | 8:30 AM | Pelham | CS: 4 and Other Methods of Making a Living for the Small Practitioner 134 K2’s Excel PivotTables for Who Doesn?t Audit or Review Accountants 9/27/2017 | 8:30 AM | Huntsville | 9/26/2017 | 1:00 PM | Pelham | CS: 4 AA: 4 143 Risk Management and Accountant’s Liability 9/26/2017 | 1:00 PM | Pelham | Other: 4

154 IRS Tax Examinations and Hot Issues 9/27/2017 | 8:30 AM | Huntsville | TX: 4

144 Financial Reporting for Not- 155 Small Business Fraud: The for-Profit Entities Lessons Behind the Stories 9/26/2017 | 8:30 AM | Pelham | AA: 4 9/27/2017 | 1:00 PM | Huntsville | AA: 4 145 Revenue Recognition: The New Perspectives 156 A+ College Savings 9/26/2017 | 8:30 AM | Huntsville | Planning: Maximizing Resources AA: 4 and Tax Benefits 9/27/2017 | 1:00 PM | Huntsville | 146 Controller/CFO Update: Hot TX: 4 Topics Facing Today’s Financial Professional 157 Integrating Audit Data 9/26/2017 | 8:30 AM | Huntsville | Analytics into the Audit Process Finance: 4 9/27/2017 | 8:30 AM | Montgomery | AA: 8 147 Basics of Special Needs Trusts: How to Assist Your 178 Sirote’s Hottest Tax Topics Disabled and/or Elderly for 2017 Clients 9/27/2017 | 8:30AM | Montgomery | 9/26/2017 | 8:30 AM | Pelham | TX: 4 TX: 4 148 Fraud Risk in Governmental 158 Reviewing Partnership Tax and Not-for-Profit Organizations Returns: What Are You Missing?

9/26/2017 | 1:00 PM | Pelham | AA: 4 9/28/2017 | 8:30 AM | Montgomery | TX: 4 150 The New Leasing Standard: It’s Here and It’s Huge 159 Annual Update for 9/26/2017 | 1:00 PM | Huntsville | Governments and Not-for-Profits AA: 4 9/28/2017 | 8:30 AM | Huntsville | AA: 4 151 Meet Your Next Migraine: Five Critical Issues that Will 160 Critical Tax Factors in Confront CPAs in Industry in 2017 Business Life Cycle Decision9/26/2017 | 1:00 PM | Huntsville | Making MG 4 9/28/2017 | 8:30 AM | Huntsville | TX: 4

161 Reviewing S Corporation Tax Returns: What Are You Missing?

9/28/2017 | 1:00 PM | Montgomery | TX: 4 162 Not-for-Profit Organizations: Key Accounting and Reporting Considerations 9/28/2017 | 1:00 PM | Huntsville | AA: 4 163 Meet Your Next Migraine: Five Critical Issues that Will Confront Tax Public Accountants in 2017 9/28/2017 | 1:00 PM | Huntsville | TX: 4

179 Sirote’s Hottest Tax Topics for 2017 10/11/2017 | 8:30AM | Tuscaloosa | TX: 4 183 Sirote’s Hottest Tax Topics for 2017 10/19/2017 | 8:30AM | Florence | TX: 4 187 2017 A&A Hot Topics: Getting a Grasp on the Big Issues Facing the Industry 10/19/2017 | 8:30AM | Montgomery | AA: 8 182 Sirote’s Hottest Tax Topics for 2017 10/20/201 | 8:30AM | Huntsville | TX: 4

174 Tax Staff Training: Level I 9/28/2017 | 8:30 AM | Montgomery | TX: 16 185 Sirote’s Hottest Tax Topics for 2017 164 Reviewing Individual Tax 11/6/2017 | 8:30AM | Dothan | TX: 4 Returns: What Are You Missing?

9/29/2017 | 8:30 AM | Montgomery | 184 Sirote’s Hottest Tax Topics TX: 4 for 2017 11/7/2017 | 8:30AM | Auburn | TX: 4 165 Protecting Your Client from Tax Return Identity Theft 175 Tax Staff Training: Level II 9/29/2017 | 8:30 AM | Huntsville | 11/13/2017 | 8:30 AM | Montgomery | TX: 4 TX: 16 166 Accounting and Auditing Update 9/29/2017 | 8:30 AM | Huntsville | AA: 4

170 The Best Federal Tax Update Course by Surgent 12/1/2017 | 8:30 AM | Montgomery TX: 8

167 Protecting Your Client from Tax Return Identity Theft 9/29/2017 | 1:00 PM | Montgomery | TX: 4

181 Sirote’s Hottest Tax Topics for 2017 12/4/2017 | 8:30AM | Birmingham | TX: 4

168 Social Security and Medicare: Maximizing Retirement Benefits 9/29/2017 | 1:00 PM | Huntsville | TX: 4

176 Tax Staff Training: Level III 12/7/2017 | 8:30 AM | Montgomery | TX: 16

169 Preparation, Compilation, and Review Engagements: Update and Review 9/29/2017 | 1:00 PM | Huntsville | AA: 4

186 Sirote’s Hottest Tax Topics for 2017 12/7/2017 | 8:30AM | Pensacola | TX: 8

180 Sirote’s Hottest Tax Topics for 2017 10/6/2017 | 8:30AM | Anniston | TX: 4 31

View the entire 2017 CPE schedule on the website, ascpa.org.

Short on credits?

Stop panicking and start planning.

You have time. Sure it’s September, but you can schedule the balance of your CPE with ASCPA offerings available across the state.

“catch up” on outstanding CPE. The ASBPA wants your license to remain unblemished. Do what they recommend.

But not THAT much time. Don’t dilly-dally! September 30 will be here before you know it. The Alabama State Board of Public Accountancy will not renew your license without compliance, and you don’t want to get in hot water.

There’s a lot at stake.

We’ve got your back. Not only does the ASCPA have a multitude of options for CPE: in-person sessions, webinars, online learning, but a comprehensive CPE transcript is automatically maintained for you. Just log in to the website and review it periodically, www.ascpa.org. Your anxiety will melt away.

The ASBPA understands. There are sometimes circumstances which make it impossible for you to complete your hours

by September 30. Contact Nicole Robinson at the ASBPA and ask for her help in filing an extension or otherwise

QUESTIONS? Contact Jessica Roberts, ASCPA Vice-president of Education, jroberts@ascpa.org, or Nicole Robinson, Alabama State Board of Public Accountancy, 334.242.5700.

09/27 09/28 10/06 10/11 10/19 10/20 11/06 11/07 12/04 12/07

-

Montgomery Mobile Anniston Tuscaloosa Florence Huntsville Dothan Auburn Birmingham Pensacola

To register, or for more info, visit: www.ascpa.org/sirote

32

ASCPA Continuing Professional Education Registration Form Mail form to : ASCPA P.O. Box 242987 Montgomery, AL 36124-2987

Fax form to :

Register online at:

334.834.7310

www.ascpa.org

REGISTRANT INFORMATION Last Name

M.I.

First Name

ASCPA Member Number

Firm / Employer State Certificate Number Address City

State

Zip

Business Phone

Business Fax

Please visit www.ascpa.org to view all registration policies, including information about cancellations and refunds.

Please attach a description of special requests or contact us at (334) 386-5763.

Email Address (for registration confirmation)

o Vegetarian o ADA Request

o Check if information has recently changed and needs to be updated in your member record Are you a member of the AICPA? o Yes verification)

How did you hear about this class?

o No

o Email

Course Date

Member Number: ____________________ (Required for discount; subject to o Newsletter

o Website

Course Number

Course Title

o Postcard/Special Mailing Course Fee

o Other

AICPA Discount *see note (where applicable)

ASCPA Non- Member Member

Book Fee ($40 per course)

Subtotal

Total: *CPAs who are members of the ASCPA may register at the member rate. CPAs who are not a member of the ASCPA or other State Society may register at the Non-Member rate. Please include the appropriate discount(s) when registering for events. áCPAs who are members of the AICPA may deduct $30 from AICPA seminars ONLY (8 hrs classes). (These are identified in the CPE Schedule online or in the ASCPA newsletter).

*Electronic course materials are included in the registration fee and will be available for download 3 days before the course date.

You can choose to purchase a paper copy of the course materials for an additional fee of $40 per course. o I acknowledge that I will receive course materials electronically (included in course fee). o I would like to purchase my manual for $40 per class Check: I have enclosed a check payable to ASCPA in the amount of $ ___________ I authorize the ASCPA to charge $ __________ to my credit card.

Credit Card:

Card Number

MC

Visa

Discover Month

o Company Credit Card ________________________________________ Print Cardholder’s Name

AMEX

Year

Expiration Date

o Personal Credit Card

________________________________________________ Cardholder’s Signature

2/23/15

Delivering Results - One Practice At a tim

CLASSIFIEDS

Lori Newcomer, CPA & Tim Price, CPA PNGroup@aps.net

IS IT TIME TO SELL YOUR PRACTICE? SELLING YOUR FIRM IS COMPLEX. WE CAN HELP. Accounting Biz Brokers has been selling CPA firms for over 12 years and we know your market. We have a large database of buyers ready to purchase. Our “Six Steps to Success” process for selling your firm includes a personalized, confidential approach to bring you the win-win deal you are seeking. Our brokers are Certified Business Intermediaries (CBI) specializing in the sale of CPA firms. We are here to help you navigate through the entire sales process – from marketing to negotiating, to closing and successfully transitioning the firm. Contact us TODAY to receive a free market analysis.

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34

888-553-10 www.APS.net

WANTED

Numbers-People Who Are Also People-People Jackson Thornton is seeking experienced CPAs/auditors with a passion for providing excellent client service as well as: 1) experience in state and local government audits, or 2) experience with financial institution audits.

A minimum of three years of audit experience is required; in-charge experience is also required. Experience at the Supervisor level is preferred, but classification will depend on experience. Both positions are based in the firm’s Montgomery, AL office and will require some travel.

For more information, visit www.jacksonthornton.com/ job-opportunities.

CPA PRACTICE FOR SALE Growing practice located in Hoover, AL. Practice started in 2003. No prior ownership change. Current annual revenues of $565,000.00; 30% of revenues are from annual tax preparation. Asking, $575,000.00. Well trained, long-term staff to remain with purchaser.

Interested parties reply via email: byront2012@gmail.com; Phone: 205 789-2149

Thank you to our

2017 Sponsors Accelerated Cost Recovery Solutions Accounting Practice Sales Accounting Biz Brokers AICPA Member Insurance Programs – AON Akins Brokerage Alabama Opportunity Scholarship Fund Aldridge Borden & Co. Banks, Finley, White & Co. Becker Professional Review Bloomberg BNA Blue Cross Blue Shield Bedford Cost Segregation Business Planning, Inc. City National Rochdale Coastal Accounting Dixon, Hughes, Goodman, LLP DLD Solutions Duell Law Firm Gilsbar Gleim CPA Review Hartmann Blackmon Kilgore, PC Jackson Thornton

Lease a CPA LTCi Plans Maynard Cooper & Gale, PC PNC Pangeatwo Paychex Peachtree Planning Corporation PriceWaterhouseCoopers LLP Roger CPA Review RSM US LLP Sheppard-Harris & Associates Smith Dukes & Buckalew, LLP SW Consulting Thompson Reuters ThreatAdvice Trustmark Bank Walker 360 Warren Averett, LLC Watkins Johnsey Professional Group Wealth Management Partners Wolters Kluwer

Presort Std US Postage PAID Permit No 131 Montgomery, AL

The Alabama Society of Certified Public Accountants 1041 Longfield Court P.O. Box 242987 Montgomery, AL 36124

Call or visit APS.net today for a free, confidential valuation of your practice.

Imagine... a chair without a desk Delivering Results - One Practice At a time Lori Newcomer, CPA & Tim Price, CPA PNGroup@aps.net

888-553-1040 www.APS.net