Page 1


CPA MAY 2011

The Arizona Society of Certified Public Accountants

403(b) Plan Sponsors

Still Having Compliance Problems New ASCPA Board Members

Marketing Financial Restructuring Services

Arizona Society of CertiďŹ ed Public Accountants Members may be eligible to

SAVE 5% ON QUALITY HEALTH INSURANCE from Blue Cross Blue Shield of Arizona. Call to see if you’re currently receiving the Association Discount.

*Discount is based on BCBSAZ published rates and only applies to certain PPO individual under 65 plans (will not apply to all plans). Applications must meet all eligibility requirements including qualifying for coverage under BCBSAZ underwriting guidelines. If approved for coverage, pre-existing waiting periods and waivers may apply.

2 AZ CPA \ MAY 2011


The Argus Group (602) 863-0080 ext. 105 or 106

The key to attracting and retaining top financial talent is here.

Download your FREE 2011 Salary Guide or use our interactive salary calculator at Phoenix • Mesa Phoenix West • Tucson 1.800.803.8367 © 2010 Robert Half. An Equal Opportunity Employer. 0910-9009

MAY 2011 \ AZ CPA



CPA MAY 2011

Volume 27 Number 4

After the Deluge— Marketing Financial Restructuring Services


CPAs can meet the needs of higher income individuals struggling with financial problems. by Howard C. Meyers


It’s a New ASCPA Membership Year

2011-2012 ASCPA Board of Directors



Find out how you can get the most out of your ASCPA membership.

Meet your new Society board members.

Conference Spotlight 403(b) Plan Sponsors Still Having Compliance Trouble


The new Industry Conference addresses issues that CPAs and other professionals face inside their companies.

Some of the most common problems with 403(b) compliance are outlined. by Brenda K. Brandt, CPA

Columns & Departments

Arizona Society of Certified Public Accountants 4801 E. Washington St., Suite 225-B Phoenix, Arizona 85034-2021

4 AZ CPA \ MAY 2011


Chair’s Message by Mark Anderson, CPA


Focus on Members






The Arizona Society of Certified Public Accountants

President & CEO

Cindie Hubiak


Patricia Gannon

Copy & Advertising Deadline The first of the month one month prior to publication date. Board of Directors Chair Chair-Elect Secretary/Treasurer Directors

Mark Anderson Armando Roman Karen Abraham Anita Baker Rob Dubberly Barb Muller Julie Norton David Richardson Craig Robb Elva Vivas David Walser Corrine Wilson Neal Young Kevin Yeanoplos

We All Benefit From a Larger ASCPA We are asking for your help to spread the word about the rewards of being part of the ASCPA. If you know of a CPA who is not a member, please encourage them to join. As a token of our appreciation, you will receive two movie theater tickets for every CPA who you refer who joins. We thank you for all you do for the profession. Please contact José at (602) 324-4741 or for more information.

Immediate Past Chair Julie Klewer AICPA Council Members George Cohen Layne Simmons Chapter Presidents Southern Chapter Northern Chapter Southwest Chapter North-Central Chapter

Flo Zenblu CW Payne Jayne Wright Alyx Cohan

Confidential Business Sales Locally Serving CPAs & Businesses in Arizona

is published by the Arizona Society of Certified Public Accountants (ASCPA) to provide information, news and trends in the profession of accounting. It is distributed 10 times a year as a regular service to members of the Society. The ASCPA, its members, board of directors and administrative staff assume no responsibility for advertisements herein. The ASCPA and the above people also assume no liability for business decisions made by readers in reference to statements and/or claims in advertisements within this publication. Opinions expressed by correspondents and contributors are not necessarily those of the ASCPA.

Arizona Society of CPAs 4801 E. Washington St., Suite 225-B Phoenix, AZ 85034-2021 Telephone (602) 252-4144 AZ Toll-Free (888) 237-0700 Fax (602) 252-1511

• CPA Practice Specialty • Business Sales & Acquisitions • Exit Planning • Business Valuation Ryan Gipple (602) 614-3583 Murphy Business & Financial Corporation Southwest, Inc.

MBFC_Arizona_CPA_Assoc-RGipple.indd 1

MAY 2011 \ AZ3/21/2011 CPA 2:29:52 5 PM

Chair’s Message

by Mark Anderson, CPA

Becoming Essential You can imagine how proud I felt when my oldest son announced to me, just months ago as he began his sophomore year of college, that he wants to apply to his school’s accounting program. I asked him why he wanted to become an accountant, and his reply included wanting to join a highly respected profession and the opportunity to contribute as a key decision maker in a company. I’m not sure how much of his impression of the profession came from me, his grandfather (who is a Chartered Accountant in Canada), or others he knows, but I’m proud to be in a profession that has young high school and college age students viewing and pursuing it the way he is. Our image as CPAs has improved in recent years, and aided by the efforts of the AICPA and our own Society, I am proud to hold out my credential and feel that it has maintained and even expanded its value in the business world. As we look ahead at the growing complexities in accounting, financial reporting, consulting and taxation, this designation we all share will continue to differentiate us as professionals who can be a valuable asset to any organization where integrity and ethics are second to none. Like so many of my colleagues, up until a few years ago, I had taken much of what the Society has done for granted. It has been an eye opening experience to participate in the strategic planning process for the Society—a process where we evaluated the vision and mission of the Society and created a strategic plan with specific measurements to advance us toward the vision that the Society is “essential to all CPAs in Arizona.” As a CPA in industry, I sometimes overlooked the importance of advocacy and the image of CPAs, and focused on the one component of our mission that impacted me the

6 AZ CPA \ MAY 2011

most—professional development and education. I now have a much better understanding and appreciation for the key role the Society plays in all of these areas. We have a tremendous voice as a profession in many of the issues facing our current law makers. They rely heavily on our experience and expertise to make decisions that impact the lives of all Arizonans. Our ability to continue this support and education through our lobbyist is key to the success of the Society. We also continue to look for opportunities to work with the State Board of Accountancy, which includes attending all board meetings and providing support that helps shape the statutes impacting our profession. One example is the definition of the “practice of accounting,” which could impact all CPAs both in public practice and industry. It is an honor to follow such a capable chair as Julie Klewer. Her phenomenal leadership of the board this past year inspires me, especially considering the time she had to devote to traveling to many meetings and events from Tucson. She remains

I feel a little bit like I’m replacing Jimmer Fredette as the new point guard at BYU. a superstar in my eyes and warrants all our praise. I feel a little bit like I’m replacing Jimmer Fredette as the new point guard at BYU. Thanks Julie! The great news for all of us is the fact that we have such a capable CEO as Cindie Hubiak and her team that helps make these transitions so seamless. I am humbled, yet excited, to be stepping into this new role for the coming year. The board and I commit to continuing to advance the vision and mission of our society and look forward to serving all of you in this AZ CPA capacity.

Focus on Members Laura Ward, CPA, has been elected treasurer for HOBY (Hugh O’Brian Youth Leadership) of Arizona.

Even though they did not win, CPA Cati Piorkowski (second from right) had a great time competing on “Family Feud” with her sisters.

CPA Joins Sisters on Family Feud “We had an absolute blast!,” says Cati Piorkowski, CPA, who works at Lohman Company, PLLC, when she joined her four sisters for a girls trip to Florida and competed on the popular game show “Family Feud.” “We do sister getaways a couple times a year,” said Piorkowski. “My sister Mary watches ‘Family Feud’ on her lunch hour and she decided to find out where the auditions were held. She found out they were auditioning in Hollywood, so she signed us up! I think it was unusual to have five sisters on a team.” “We took a weekend road trip to Hollywood and auditioned along with hundreds of other families. The audition was a ‘mock’ game of Family Feud. It was a hoot!” “They notified us a couple months later that we were picked to be on the show. During that time, the show moved from Hollywood to Orlando, Florida and the host changed to Steve Harvey. So, they flew us to Orlando to play.” “They paid for our flights, hotel rooms and provided transportation to and from the studio. We were at the studio most of the day—we played mock games with the 10 families that were playing that day, sat in the audience to watch the returning champions play, and participated in the audience ‘hype,’ which was so much fun! When we did play, we were actually on stage for over an hour. You can only imagine the editing to get it down to 20 minutes on TV.” “In the end, we did not win the game, but we won a lot of laughs and treasured memories of an AWESOME sisters weekend!”

Gabrielle M. Luoma, CPA, received the 2010 Marana Chamber Community & Business Builder Award. “Luoma goes far beyond mere number crunching,” states the Marana Chamber’s website. “Luoma is a cofounder of High Heels for Hope and strives to mentor and empower women of all ages. She has worked with the Sahuaro Girl Scouts of Southern Arizona and is a sponsor of the Mountain View High School Cheer team. Working through the Tucson Extreme Business Makeover program, she helped the Tucson Alliance for Autism build a database of their clients, and she has provided pro bono accounting assistance to several other non-profits.” Bruce D. Beach, CPA, co-founder and CEO of BeachFleischman PC, has been named 2010 Man of the Year by the Tucson Metropolitan Chamber of Commerce. In making the announcement, the awards committee stated, “Bruce Beach is one of Tucson’s most respected business leaders. He is passionate about our community and the literacy of its citizens. Under his leadership, the all-volunteer Tucson Festival of Books—for which Bruce serves as co-founder and chair of its Sponsorship Committee—has raised more than $350,000 to advance literacy in southern Arizona through its nationally recognized program.”

MAY 2011 \ AZ CPA


The board of directors of the Arizona Community Foundation elected William J. Hodges, CPA, senior managing director of GenSpring, as chair of the board. Tony Astorga, senior vice president and chief business development officer for Blue Cross Blue Shield of Arizona, will continue to serve as treasurer of the organization. Jodi Noble, CPA, was elected to the board of directors of Fresh Start. Thala Rolnick, CPA, spent time in Washington, D.C. recently, educating Congressional staff on the Form 1099 issue. Dan Nahom, CPA, and three of his accounting staff in Japan.

Local CPA Survives Japan’s Earthquake “The earthquake occurred at 2:46 p.m. local time on Friday, March 11,” says Dan Nahom, CPA, chief financial officer, vice president of finance of SmartHealth, Inc., who was working in Japan at the time of the tsunami and earthquake. “It felt like being on a boat in choppy water to the point where it was difficult to stand up. My co-workers said it was the biggest quake they ever felt—EVER.” “Knowing what we know now, they were right. It was difficult to sleep that night with aftershocks coming every 15 minutes. Key activities included getting some excess cash and a few groceries before the convenience stores were cleaned out. It was cold, the trains stopped running and taxi lines were long. The big surprise was that there was a sense of calm and order; no honking horns, no cutting in line, no lawlessness. “I was very proud of our entire staff. They were well-rehearsed and well-prepared. The building was evacuated in an orderly way and everyone knew what to do.There was no panic.” “I left for the airport the next day thinking I had 10 hours to get there. I made it halfway by train without delay. It was the last 8-1/2 hours by taxi (36 miles) that slowed me down. Complete gridlock. But I made it and it was a great feeling to be ‘wheels up.’ While I am certainly glad to be home, my thoughts cannot leave Japan. We have employees who have family affected by the devastating damage up north. Time will tell when things get back to normal.” Nahom suggests donating to the Red Cross in order to help the Japanese people. “For the areas immediately surrounding the nuclear facilities and those wiped out by the tsunami, it will never be back to normal.”

8 AZ CPA \ MAY 2011

Christine Fitzgerald, CPA, was promoted to senior manager in internal audit and financial controls at Protiviti, Phoenix. The Arizona Quality Alliance elected Charles McLane, CPA, as treasurer. Jessica Raasch and D.J. Kosmacek were promoted to senior associates at Kotzin Valuation Partners. David Damron, CPA, a partner at the Phoenix office of Grant Thornton LLP, has been elected to the March of Dimes Statewide Board of Directors. Steve Harnden,CPA, CFP, a financial advisor with Ameriprise Financial, has been inducted into the company’s Hall of Fame. Katie Thomas, CPA, has been elected to the board of directors for Maricopa Health Foundation. The Charro Foundation elected John Stull, CPA, to its board of executives. Josephine Giordano, CPA, was named as managing director of Sierra Consulting’s litigation and valuation advisory group. Rob Leslie, CPA, has joined Eide Bailly LLP.

Keats, Connelly & Associates in Phoenix has partnered with Moneycorp to assist with currency exchange and transfer requirements. Moneycorp is widely regarded as a leading foreign exchange and international payment services provider. Epps CPA Consulting PLLC has changed their name to Epps Forensic Consulting PLLC. ASCPA President & CEO Cindie Hubiak, CPA, completed her one-year term as director of Central Phoenix Women. At her last meeting as director in April, she introduced and facilitated a conversation with three of the candidates for City of Phoenix Mayor.

Newsworthy CPAs ... Stella Shanovich, CPA, was recognized by the Phoenix Business Journal as one of the 25 outstanding Women in Business in their 2011 Women in Business Award. Bob Huber, CPA, M.A., co-authored an article published in the April 2011 issue of the Journal of Accounting entitled “Tax Relief for Homeowners With Corrosive Drywall.” Huber is a principal with Huber CPA PC. Jason Washo, CPA, CFP, of Washo Financial in Scottsdale was interviewed in the Arizona Republic in an article on gift taxes. Carolyn Brown, CEO of the Accountant’s Office, was featured in an article on collaboration of business owners in the Phoenix Business Journal. Shelby MacDonald, CPA, a tax supervisor at Keegan, Linscott & Kenon was named by Inside Tucson Business as one of the 24 “Up & Comer” finalists.

Call Him Commissioner! According to the Tucson Citizen, the ASCPA’s Senior Manager of Member Services José Herrera, recently became one of the five most powerful politicians in Arizona with his appointment to the Arizona Independent Redistricting Commission. Many Society members have had the opportunity to speak with Herrera at a starting point in their membership. Now he will help influence their lives as a member of the Commission, where he will help redraw the state’s congressional and legislative boundaries over the next 10 years. No stranger to volunteering, Herrera recently wrote the following in an article for the ASCPA Blog: “I am fortunate to work for an organization such as the Arizona Society of CPAs that believes strongly in the benefits of having its staff volunteer,” says Herrera. “Since I started with the ASCPA more than seven years ago, I have volunteered for my alma matter (NAU) and the Arizona Board of Behavioral Health Examiners just to name a few experiences. Most recently, I was appointed to serve on the Arizona Independent Redistricting Commission (AIRC). The AIRC’s mission is to administer the fair and balanced redistricting of the Congressional and Legislative districts for Arizona.” The appointment was an extensive process, with Herrera making the cut through several interviews with the Arizona Commission on Appellate Court Appointments, and finally being chosen to represent the state by Rep. Chad Campbell, Democratic minority leader in the State House of Representatives. After his appointment, Herrera received calls from state leaders and the press, with quotes and articles in several papers around the state. “The press attention has been flattering,” says Herrera, “but the most important thing is being able to make a contribution to the state … and don’t worry, I’m still here to help you renew your ASCPA membership.”

MAY 2011 \ AZ CPA


Special Offer for State Society Members*. ADP®gives you the choice of doing business the way that best fits your firm. Whether you want to refer payroll or process it yourself, ADP provides world-class payroll and beyond payroll services, so you can focus on what matters most: growing your business and helping your clients be successful. In addition, your state society membership means that you will be rewarded with the following special benefits when you partner with ADP: Q

Payroll for your firm — FREE for up to 50 employees with discounted solutions to meet the needs of larger businesses


Special discounts for your firm’s clients


Free Master Tax Guides from CCH, a Wolters Kluwer business


30% discount on all CCH tax and accounting publications

ADP is a Recommended Payroll Provider for the Arizona Society of CPAs. Call 480-477-8992 today. Visit for valuable tools and resources for Accountants. *Discount/free payroll applies to companies with 1 to 49 employees that sign complete ADP sales order and to all features of standard payroll processing invoiced on client’s regular processing cycle and does not include additional non-payroll services; excludes pass through costs, courier and other delivery fees, including off cycle fees, hardware, or penalty and interest fees. Only available to new ADP Clients using EasyPay sm or RUN Powered by ADP® in the continental U.S. Must be set-up for direct debit of fees (“DDF”) as the payment method. © 2011 ADP, Inc. The ADP Logo, ADP are registered trademarks of ADP. EasyPay is a service mark and RUN Powered by ADP is a registered service mark of ADP, Inc. All other trademarks are the property of their respective owners.

10 AZ CPA \ MAY 2011

2011-2012 ASCPA Board of Directors

Mark Anderson, CPA—Chair Vice President and CFO Delta Dental of Arizona

Armando Roman, CPA, MBA, PFS —Chair Elect Managing Partner AXIOM Financial Advisory Group, LLC

Karen Abraham, CPA —Secretary/Treasurer Senior Vice President and CFO Blue Cross and Blue Shield of Arizona

Julie Klewer, CPA, MBA— Immediate Past Chair Partner, Ludwig Klewer & Co. PLLC

David Richardson, CPA— Director 2010-2012 CFO, Take Charge America, Inc .

Anita F. Baker, CPA, CEBS David Walser, CPA–Director 2010-2012 —Director 2010-2012 Director of Client Strategies Principal-in-Charge, Benefit Services GenSpring Family Offices Group, LarsonAllen, LLP

Julie Norton, CPA—Director 2010-2012 Controller, Montie Lee Farm

Neal Young. CPA—Director 2010-2012 Assistant Director City of Phoenix Housing Department

MAY 2011 \ AZ CPA


2011-2012 ASCPA Board of Directors

Rob Dubberly, CPA— Director 2011-2013 Audit Partner KPMG LLP

Barb Muller, CPA, CFE –Director 2011-2013 Senior Lecturer of Accountancy Arizona State University

Craig Robb, CPA—Director 2011-2013 Managing Director Zions Energy Link

12 AZ CPA \ MAY 2011

Elva Vivas, CPA —Director 2011-2013 Director of Finance and Planning Bashas’ Family of Stores

Corrine Wilson, CPA— Director 2011-2013 Business Assurance Senior Manager Moss Adams LLP

Kevin Yeanoplos, CPA/ABV/CFF, ASA— Director 2011-2013 Director of Valuation Services Brueggeman and Johnson Yeanoplos, P.C.

George Cohen, CPA— AICPA Council Member Senior Director RSM McGladrey Inc.

Layne Simmons, CPA— AICPA Council Member Manager/Co-owner of Jaffa Simmons, PLLC

403(b) Plan Sponsors Still Having Compliance Trouble By Brenda K. Brandt, CPA More than a year has passed since new federal laws and regulations went into effect regarding 403(b) plans. As we have helped clients navigate through and comply with these changes over the past year, a number of different issues have arisen. Some of the most common problems with 403(b) compliance are outlined below.

Start with Some Background Under regulations issued by the Department of Labor (DOL) and the Internal Revenue Service (IRS), all 403(b) plans are now required to have a written plan document explaining the benefits, rights, features and investment options of the plan. Those 403(b) plans that are subject to the Employee Retirement Income Security Act (ERISA) must e-file a full Form 5500 beginning with the 2009 plan year. The written plan document requirements were extended to Dec. 31, 2009. Generally, for plans with more than 100 eligible participants at the beginning of the plan year, audited financial statements must be included with the filing. Current requirements and other details are outlined on the IRS’s Retirement Plans Navigator site and the DOL’s Employee Benefits Security Administration site (addressed in Additional Resources).

Challenges with Written Document Compliance Plan sponsors are having difficulty complying with the written document requirements for all 403(b) plans. One specific underlying challenge is the requirement that the plan document must list all available investment options.

MAY 2011 \ AZ CPA


Because 403(b) plans typically function more like a group of individual annuity contracts than a single plan, some employers have had very little control in selecting or monitoring investments. This problem is challenging but must be rectified in conjunction with the written plan document requirement. A second issue is that, while the employer followed the regulation and usually adopted a standardized prototype document, the investment custodian, usually an insurance company, will still only operate the plan under the terms of the individual investment contracts. If care was not taken to assure that the new plan document maintains the same benefits and features as the investment contracts, the employer may be liable for a breach of fiduciary duty by not following the terms of the plan document. Most employers have very limited success persuading providers to follow the document rather than their contract language. It is, therefore, imperative to review all of the documents for consistent terms. Typically, plan document failures can be addressed utilizing the IRS Voluntary Compliance Program (VCP), which is a part of the overall Employee Plans Compliance Resolution System (EPCRS). Generally speaking, the program allows reduced penalties for voluntary compliance, compared to potentially higher penalties resulting from an IRS/DOL examination.

Is Your Plan Subject to ERISA? Another challenge is that some plan sponsors still do not realize that their 403(b) plan is subject to ERISA, and is therefore required to file Form 5500. A 403(b) plan is subject to ERISA unless it meets the DOL’s safe harbor exception.The safe harbor regulation lists several factors to determine if a 403(b) is exempt from ERISA. One primary determinant is employer participation in the form of making employer contributions to the plan. If an employer makes any employer contributions, such as a

14 AZ CPA \ MAY 2011

match or a non-elective discretionary contribution, to a 403(b) plan, that plan is subject to ERISA and is required to file Form 5500. This particular filing requirement is not new. However, the new regulations no longer allow for the very short, limited filing that was allowed in plan years prior to 2009. Plan years starting in 2009 must file the full Form 5500 with financial data and any other applicable schedules. Some small plans may qualify to file the shorter Form 5500-SF. Failure-to-file and late filing penalties can be significant. The DOL’s Employee Benefits Security Administration branch offers a Delinquent Filer Voluntary Compliance Program (DFVCP) that is designed to encourage voluntary compliance with annual reporting requirements under ERISA. It is a way to avoid potentially higher penalty assessments by satisfying the program’s requirements and voluntarily paying a reduced penalty amount.

Understanding Fiduciary Duty The fiduciaries of a 403(b) plan have the duty to control and manage the operations and administer the plan. Every plan document must have one or more “named” fiduciaries. Other parties may become fiduciaries based on the function they serve for the plan. Generally, a third-party administrator is not a fiduciary. The role of fiduciary goes to the plan sponsor, who must now perform many more review and monitoring functions than they may have been accustomed to in the past. This is a huge difference for plan sponsors. In the past, sponsors strived to meet the “limited involvement” standard to avoid becoming subject to ERISA. While it is still possible to meet the ERISA exemption, many additional plan sponsors now find that they are AZ CPA subject to ERISA. Brenda K. Brandt, CPA, is a partner of Clifton Gunderson LLP. She can be reached at brenda.brandt@cliftoncpa. com.

After the Deluge Marketing Financial Restructuring Services by Howard C. Meyers As a result of the deluge experienced in the state and national financial climates since 2007, there is a large and lucrative market for financial restructuring services which can be offered by CPAs to assist the many Arizona higher income individuals who are struggling with serious financial problems. This work can be captured by two means. First, CPAs can market these services directly to existing clients and potential clients. Second, CPAs can market these services to other complementary professionals such as lawyers, stockbrokers, financial planners, insurance agents and actuaries. When marketing these services, a central focus should include a costbenefit analysis that will readily demonstrate that the expense of obtaining the input and participation of the client’s CPA in the financial restructuring and workout process provides a very positive and measurable economic return for the client. For example, a proper analysis will show that the use of operating losses or income averaging to create credits against current taxes or refunds will enhance the liquidity of the client. Clients and referral sources need to understand that these types of benefits functionally convert the cost of the CPA’s services from an expense into an investment. The most sensitive issue for many high income clients in financial distress involves the structuring of fee arrangements. Despite adversity, many higher income clients have both the remaining financial liquidity and the motivation to make substantial financial commitments to the CPAs whom they are hiring to assist in the financial restructuring and workouts. Advance fee deposits are oftentimes implicated, as are detailed engagement letters carefully prescribing the business terms upon which the financial restructuring will be provided by the CPA.

MAY 2011 \ AZ CPA


When determining the terms of payment for an engagement, however, the prudent CPA will be careful in dealing with clients who are facing a near term bankruptcy filing, since overdue accounts receivable payments received by the CPA within 90 days of the bankruptcy filing can be subject to avoidance as a preference in the bankruptcy proceeding. If found to be subject to the preference, the CPA may be required to disgorge the payment or face the risk and expense of litigation. This risk may cause the CPA to rethink giving clients generous amounts of time in which to pay for the CPAs services. Fee payment can be enhanced but not absolutely guaranteed by a variety of means directed at capturing the client’s refund money, starting with IRS Form 2848 (Power of Attorney and Declaration of Representative) and ending with the Federal Assignment of Claims

Act. Because of the client’s revocation rights, as well as the government’s offset rights and timing challenges with these procedures, payment of a tax refund by the IRS to the CPA is not always certain. Besides dealing with tax issues, the scope of work necessary to prepare a client for a financial restructuring or workout includes, but is not limited to, analysis of income and expenses; pro formas rooted in realistic assumptions reflecting a range of economic outcomes from the best case to the worst case and tax projections reflecting the potential result of asset sales, stock sales, foreclosures, deeds in lieu of foreclosure; and income from the cancellation of indebtedness. Some of this work product will be generated solely for internal purposes related to providing the client with a meaningful financial overview for decision making purposes. Other portions of this work

ASCPA Annual Meeting May 11 — 11:30 a.m.-1:30 p.m.

Special Guest Speaker

AICPA President & CEO Barry Melancon at the Arizona Biltmore Resort

Register at 16 AZ CPA \ MAY 2011

product ultimately may be used in negotiations and disclosed to creditors. The CPA is urged to have meaningful and explicit disclaimers when necessary on the face of this work product, as well as an explicit understanding that there will be no release of such work product to third parties unless specifically approved by the CPA. The CPA is well advised to consider whether to recommend that the client also retain a lawyer with a long-term commitment and specialization in financial restructuring and workouts in and out of bankruptcy (i.e. bankruptcy specialists certified by the State Bar of Arizona Board of Specialization, business bankruptcy specialists certified by the American Board of Certification, creditors’ rights specialists certified by the American Board of Certification, etc.) to handle legal issues which are outside the professional skill set of CPAs (i.e. to advise on legal as opposed to economic issues). The CPA should explore setting up an ongoing (and hopefully reciprocal) referral relationship with lawyers who have proven expertise in the discipline, as well as a demonstrable commitment to working collaboratively with the CPA on such engagements. There are significant financial rewards for Arizona CPAs who are committed to providing financial restructuring and workout-related services. Beyond mere economics, there is also great professional satisfaction to be derived by the CPA when helping historically successful clients avert total financial disaster and start AZ CPA moving forward again. Howard C. Meyers is Of Counsel to the law firm of Burch & Cracchiolo, P.A. with more than 30 years of legal experience. His practice areas are commercial bankruptcy, corporate reorganization, non-bankruptcy financial and real estate workouts, and sophisticated debtor-creditor litigation in state and federal courts. He is certified as both a Business Bankruptcy Specialist and a Creditors’ Rights Specialist. Contact him at or (602) 234-8762.

Our bundle gives you

MORE VALUE. per month*



Business-class Internet, phone and unlimited long distance.

INTERNET 5M download/1M upload high-speed Internet Security Suite to eliminate potential viruses Online data backup for extra protection PHONE Up to 12 features including voice mail, call forwarding and three-way calling Unlimited long distance every month FREE INSTALLATION with three-year agreement 24/7 local technical support 99.999% reliable service One provider, one bill

Phoenix: 623-594-7299 Tucson: 520-300-5283 * Offer valid until 6/30/11 to new customers of Cox VoiceManager Traditional Service and Cox Business InternetSM 5.0Mbps/1.0Mbps in Arizona Cox-wired, serviceable locations. Minimum 3-year service contract required for free installation. Free installation offer includes waived phone activation fees and waived Internet installation fees. Additional costs for installation, construction, inside wiring and equipment may apply. Offer price includes monthly service fees for 1 phone line and up to 12 features (excluding Distinctive Ringing and Remote Call Forwarding), 5M/1M Internet service and unlimited long distance. Unlimited long distance applies up to 10 lines. Each line after 10 gets .05/minute long distance for intra/interstate calling. Offer does not include applicable taxes, surcharges or fees. Discounts are not valid in combination with or in addition to other promotions, and cannot be applied to any other Cox account. Cox cannot guarantee uninterrupted or error-free Internet service or the speed of your service. Rates and bandwidth options vary and are subject to change. Services not available in all areas. Other restrictions apply. Telephone services are provided by Cox Arizona Telcom, LLC. Š2011 CoxCom, Inc., d/b/a Cox Communications Arizona. All rights reserved.

MAY 2011 \ AZ CPA


It’s a New ASCPA Year … How Can You Get the Most Out of Your Membership? Keep Informed Learn from the best of the best. Past participants of ASCPA courses have rated the knowledge level of our CPE instructors, on average, a 4.8 out of 5. Read about updates to the profession, articles specific to your field of interest, profiles of interesting CPAs and more in the AZ CPA, eNews and CPE eNews. Write articles and get noticed. Listen to free weekly federal tax update podcasts. Read blog postings from Society members on a variety of topics and industries at:

ASCPA CPAs on Tour Networking Events

A free (and fun) way to connect with CPAs and other business professionals. May 17 Scottsdale Yard House June 21 North Valley Sand Bar at Desert Ridge June 23 Tucson Old Pueblo Grille October 18 Central Valley Hula’s Modern Tiki January 17, 2012 West Valley Yard House at Westgate January 19, 2012 East Valley Salty Senorita

18 AZ CPA \ MAY 2011

Webcasts and Webinars Participate in live CPE without driving to the ASCPA office with the new four- and eight-hour webcasts. You will have a live video feed from the classroom and be able to interact with the instructor. Take advantage of eight free one-hour webinars with subject experts.

Networking Network with CPAs, bankers, attorneys and other business professionals through a variety of events offered by the ASCPA. Connect virtually with other CPAs on our Facebook and LinkedIn pages, list serves, and Twitter.

Special Programs & Partnerships Learn more about top Arizona companies and their keys to success at our Behind the Scenes events. The events include education and special tours or experiences. Join us for

Leadership Opportunities

our first event of the new year with the Arizona Diamondbacks on May 19. Hear from top CFOs at the CFO Issues/Ideas panel discussions with the Business Journal and the CFO Alliance’s ce s roundtable sessions. The ASCPA is a sponsor and participant at these events. Gain new perspectives by participating in the e ASCPA’s book club. b. Studies show that people l who h read non-fiction books earn more money.

Advocacy Know that the ASCPA has your back. The ASCPA works with legislators to urge them to pass conformity every year. We monitor and provide input on any legislation that impacts the profession, like flat tax and sales tax on services. Contribute to the ASCPA PAC to help support candidates that care about issues important to CPAs.

Volunteer on a steering committee, conference planning committee, career panel and more. You will meet new people and sharpen your leadership skills.

Discount Programs Sign up for your seminars by May 31 and get an extra 15% discount off the already discounted member price for a savings of 36% on most sav eight-hour courses. eig Take Ta advantage of preferred pricing on services fe and a products geared to CPAs, including: C insurance, cell phones, i payroll providers, technology, document destruction, CPA exam review, destruc entertainment and more.

Image of the Profession Reach out to the media to help the public learn more about who CPAs are and how they help the public.

I Count! at

Career Assistance Take part in seminars and workshops for job seekers. Search for jobs on the ASCPA website.

Build Your Business List your firm on the ASCPA’s Referral Service to attract more clients to your business. Write articles and speak at seminars to show your expertise, get business and help others.

Renew Your Membership Today

Teach young people about finances through our financial literacy program with Big Brothers Big Sisters in Phoenix and Tucson.

Future of the Profession Support students by contributing to the Arizona CPA Foundation for Education & Innovation. Share with students or listen to their experiences on the ASCPA’s new student blog

MAY 2011 \ AZ CPA


Bigger is Better New —Industry Conference—May 20

Call 1.800.584.4595 Ext. 05

Gary Hankins, CPA Member Arizona Society of CPAs

This new conference addresses issues that CPAs and other financial professionals face in their roles inside companies. The following topics will be presented: • How IFRS convergence will change GAAP as you know it • How to prevent, detect and investigate fraud • Working with the board and audit committee for effective corporate governance • Learning organizations—the key to success • Microsoft tools to make you a better writer • Enterprise risk management • Pricing for profitability—why cost still matters • Budgeting and forecasting best practices The conference includes general sessions and breakout sessions to best fit your interests. The speakers have served as CFOs at public and private companies.

Financial Planning Conference—June 9

Too Busy to Escape the Office for CPE? Take CPE when it is convenient for you with ASCPA self-study partners: • AICPA CPExpress Select • PASS Online • SmartPros • Surgent McCoy CPE LLC Find more information at and go to Self-Study Partners under the Continuing Education tab.

20 AZ CPA \ MAY 2011

Gain new tools to deliver better results for your clients and yourself at this year’s Financial Planning Conference. The following topics will be presented: • Updates on estate and gift taxes and how to plan for uncertainty • Developing, implementing and monitoring portfolios for baby boomers that are nearing retirement • Tax planning strategies for high income business owners • Retirement plans for small businesses • Technology for the small accounting office • Tools for working with clients in loss and transition • How the economic recovery will affect your business

Learn more and register at

One- and Two-Hour Seminars Quick Programs at a Minimal Cost to You

Is Lifelong Learning Important to You? Lifelong learning is the continuous, voluntary and self-motivated pursuit of

Below is a list of our upcoming one- and two-hour programs recommended by your fellow CPAs. These programs are meant to provide valuable information and insight, as well as give you an opportunity to network with other business professionals while earning CPE. It’s fast and easy, so register today at Things I Think I Think... the Ins and Outs of Intellectual Property

personal development, but also makes

June 30, 2011 ASCPA Offices, Phoenix 11:30 a.m. to 1:30 p.m. Presenters: Peter Goldman and Kevin R. Yeanoplos, CPA, ABV, CFF, ASA

you more employable. If you believe

Register today at

knowledge for either personal or professional reasons. It not only enhances social inclusion, active citizenship and

lifelong learning is important, then register for our next book club meeting


on May 31 from 11:30 a.m. to 12:30

people. growth. results.

p.m. at The club will discuss Tribal Leader-

Our personalized and positive approach has helped us become one of the most respected accounting and advisory firms in the Southwest. It’s how we go beyond the numbers.

ship: Leveraging Natural Groups to Build a Thriving Organization by Dave Logan. Attending the May 31 ASCPA Book Club meeting may also

Learn more about Wallace Plese + Dreher, LLP at or call 480.345.0500.

qualify for one hour of CPE. Like to plan ahead? Mojo by Marshall Goldsmith will be discussed in-

Behind the Scenes with… the Arizona Diamondbacks–May 19

person and as a webinar on Aug. 2 from 11:30 a.m. to 12:30 p.m. Attendees are required to come prepared to participate in the discussion to earn CPE. To allow for equal participation, we are limiting these webinars to 15 registrants each. You can participate in the ASCPA Book Club by phone or in person.


Join us as we go behind the scenes with the Arizona Diamondbacks at Chase Field before the May 19 Arizona Diamondbacks vs. Atlanta Braves game. We’ll hear from Tom Harris, CPA, who will share his unique insight as the chief financial officer behind one of the Valley’s favorite sports teams.

MAY 2011 \ AZ CPA


Classifieds Business Opportunities OWN YOUR OWN TAX PRACTICE —New to Arizona. Looking for professionals interested in owning their own Tax Preparation and Financial Services practice? Easy and affordable to get started, with training and great support. You choose your location, we provide the system to attract premier clientele. Confidential. Reply to Box 100, Arizona Society of CPAs, 4801 E. Washington St., Suite 225-B, Phoenix, AZ 85034. BUYING OR SELLING A PRACTICE? Let me make it happen for you. • Integrity • Confidentiality • 44 years selling Arizona businesses. Call Allan Jeffryes, the Jeffryes Company at (602) 279-4988. WANT TO SELL OR BUY AN ACCOUNTING PRACTICE? Make it easy on yourself. Call Gary Hankins, CPA (800) 584-4595, ext. 05. hankins@ OUR CPA FIRM IS SEEKING TO BUY CLIENTS in the Scottsdale and Phoenix Metropolitan area. Our staff has been practicing in public accounting for more than 30 years and specializes in the small to medium size busi-

ness needs. We emphasize on business accounting and tax. We are located in North Scottsdale with a satellite office in Northwest Phoenix. If you are downsizing or retiring and want an easy transition, please call us today. Ask for Kara at (480) 990-2727. CPA WITH PART-TIME TAX and bookkeeping practice out of an office in home seeks to upgrade to a traditional commercial space. Possibilities include office-sharing or long-term buyout in exchange for full-time work. Call (602) 765-0567.

Employment Opportunities TEMPE FIRM SEEKING PARTTIME TAX PREPARER & ACCOUNTANT—Tax preparation and compilation experience sought. Knowledge of Proseries a plus. Please send resumes to XBRL REPORTING SPECIALISTS— We are looking for Reporting Specialists to serve as a subject matter expert to the customer regarding XBRL reporting and the process for creating XBRL formatted financial statements. Review XBRL data tagging to ensure consistency and accuracy in the financial reporting for the customer. Must have

We thank you for your membership and encourage you to renew online at on or before May 31.

22 AZ CPA \ MAY 2011

solid understanding of and be able to interpret Financial Statements and understand GAAP accounting standards. Solid understanding of SEC reporting requirements. CPA or CFA is preferred. Full understanding of XBRL taxonomy and XBRL rules preferred. Please apply here: and go to link option position: 5285. TAX MANAGER Established Scottsdale CPA firm seeks a Tax Manager for its busy practice. Outstanding work environment and partnership potential through client growth are available. The firm is paperless, offers state-ofthe-art software and computer equipment, has flexible hours and work/ life balance. Easily accessible from the 101 expressway. Position requires CPA, Masters in Tax, and 8+ years of experience in a CPA firm. Word, Excel and QuickBooks proficiency required; Lacerte software knowledge preferred. Salary is dependent on experience. Send resume and salary requirements to; use Tax Manager as subject on your email. CPA, AUDIT MANAGER, part time, assist with compilations and reviews in Phoenix. GOVERNMENTAL/NPO SPECIALISTS—Heinfeld, Meech & Co., P.C., recognized leaders in governmental and non-profit accounting and auditing, seeks ambitious and motivated individuals with at least 8 years experience specializing in governmental or nonprofit accounting and/or auditing for our offices in Phoenix, Tucson and Flagstaff. Nationally recognized on the “25 Best Small Companies to Work for in America” list for the past four years, our firm is committed to providing a superior work environment and career opportunities for our staff. Competitive salaries and benefits offered. BS in accounting and at least 8 years accounting or auditing experience specializing in governments/nonprofits required. CPA or CPA candidate preferred. Travel required Email resume and salary requirements to

Miscellaneous ENTREPRENEURIAL CPA NETWORK (eCPAn)—Wednesday, June 1st. Speakers: Don Scher and Brendan Kennedy, “Exit Strategies for a Closely Held Business Owner.” Regular luncheon meetings are 11:30-1:30; all meetings located at DoubleTree Suites, 320 N. 44th St. For information call (602) 468-0281 or e-mail us at

Office Space GILBERT OASIS AT ISLANDS OFFICE FOR RENT. CPA or other professional. Month-to-month OK. Two offices 14x14 and 12x12. $700 to $900 Month (480) 539-2600.

CUT $$$$$$—Move into the “ACCOUNTING ANNEX”—Tenant sought. Office space to rent. Suitable for a dynamic CPA or CPA firm. Share phenomenal resources. On light rail and next to a station. Two conference rooms, included. 150 ft. to 4,200 ft. Unique property next to the heart of downtown, walk to baseball and basketball stadium. Short-term lease is welcome. Call Lance at (602) 741-7876 cell. ESTABLISHED CPA FIRM has one or two offices available on Central Ave just north of Camelback. 2nd office could be a small conference room. Furnished or unfurnished. Reasonable rate with no lease. Share expense for reference library, copy machine, etc. Ground floor for easy access. Reserved covered parking. Call (602) 680-7270.

Services PART-TIME CONTROLLER. WHY PAY A FULL-TIMER? Diversified, experienced CPA/problem solver looking for 20 hours per week on a long-term basis. Reasonable rates. No benefits needed. (602) 996-4336. ESTATE/GIFT/GST TAX RETURNS AND PLANNING ISSUES POSE A CHALLENGE FOR YOU? I can work with you or your client. Estate planning/ compliance is not a science; it’s an art. Let’s make a better plan for your client. Ira Feldman, CPA/CVA/CEP (602) 8505101 or or

Reach our Members! ASCPA Members Receive a Discount. The Arizona Society of CPAs offers a variety of ways for companies to get their name, service or product noticed by our members. Take advantage of the following avenues to increase your business: The AZ CPA magazine — Check out our display and classified advertising opportunities. Our members read our magazine, and it’s a great way to reach CPAs. The CPE Resource Catalog — The CPE Resource Catalog is published once a year and is a great way to keep your name in front of CPAs all year long. Sponsorships — The Arizona Society of CPAs offers a variety of opportunities to sponsor events. We provide sponsorships of our 10 conferences with exhibit space so you can meet our members face-to-face. We offer exhibit space, break and luncheon sponsorship at all our conferences. Other opportunities include sponsorship of our Annual Meeting, networking events such as CPAs on Tour and Building Your Connections and many other special events throughout the year. Website Advertising — Advertisers can reach our members via our website. CPAs use the website to find and register for seminars, view our calendar of events, use our list serves, look for job opportunities, and read our online publications. Banner advertising can offer direct links to your website and our professional listings offer year-long coverage for advertisers. Electronic Communications — We offer one exclusive sponsorship of the ASCPA Enews, our monthly Enewsletter, and sponsorships of our CPE Enewsletter as well.

Call José Herrera at (602)324-4741or e-mail: MAY 2011 \ AZ CPA


PRSRT STD U.S. Postage PAID Phoenix, Arizona Permit No. 952

Arizona Society of Certified Public Accountants 4801 E. Washington St., Suite 225-B Phoenix, AZ 85034


ASCPA Webcasts CPE where you want it ... Enjoy the convenience of live webcasts and earn CPE from the comfort of your home or office with the ASCPA’s new live interactive webcasts. For more information or to register, go to

AZ CPA May Issue  

The May issue of AZ CPA - the official publication of the Arizona Society of CPAs