COCPA NewsAccount - 2015 - July/August Issue

NewsAccount July/Aug 2015

Colorado Society of CPAs

You need a vacation.

Contents Features

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CPA Elected Denver City Auditor Former State Auditor Tim O’Brien, CPA, won election on May 5. He talks about the experience and what’s ahead.

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Audit Quality Is Job One

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New Rules Now In Play

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Coalition Seeks Tax Reforms

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Take A Vacation. Please.

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Protecting Against Data Breaches

The DOL report is out, and so is the AICPA’s plan to enhance audit quality.

As of July 1, candidates for a Colorado CPA certificate must complete 150 hours of education and meet other new requirements as well.

Nearly 300 taxing authorities exist in Colorado, and that’s the tip of a complex sales and use tax iceberg. A new business coalition looks to reform the environment.

Thinking of skipping your vacation this year? Think again. People who take time off benefit from more than you might think.

Cybercrime is real, and data security is critical. After all, just one breach could destroy your company.

Departments

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Chair Column Movers & Shakers Classifieds

July/August 2015 • www.cocpa.org •

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Chair Column

NewsAccount A bi-monthly publication of the Colorado Society of Certified Public Accountants Vol. 61, No. 2 July | August 2015 Board of Directors Steven R. Corder Chair Mark T. Solomon, Vice Chair Tawnya R. Ramirez, Treasurer Sheila M. Balzer , Immediate Past Chair Mary E. Medley, Secretary Directors Victor A. Amaya, Craig A. Arfsten, Christine Benero, Kelly G. Boggs, Ann E. Hinkins, Dan W. Soukup Editorial Board Jack Allgood, Kay R. Dragon, Patrick A. Lytle, Georgia Z. Phillips, Lori Anne Reinwald, Laura J. Theiss, Barbara J. Tedesko, R. Stephen Van Meter, Michael D. West Mary E. Medley, President/CEO Elizabeth M. Julin, Deputy Director Krista Flynt, Editor/Publisher Natalie G. Rooney, Contributing Writer NewsAccount (ISSN #10899952) is published bimonthly by the Colorado Society of Certified Public Accountants, 7887 E. Belleview Ave., Suite 200, Englewood, CO 80111. NewsAccount is published in January, March, May, July, September, and November and reports information, news, and trends in the accounting profession. The Colorado Society of CPAs assumes no liability for readers’ business decisions in reference to advertisements or other information included in this publication.

Membership dues include a $9.90 one-year subscription to NewsAccount. Periodical postage paid in Denver, CO, and additional mailing offices.

POSTMASTER: Send address changes to NewsAccount, Colorado Society of Certified Public Accountants 7887 E. Belleview Ave., Suite 200 Englewood, CO 80111 Net press run = 8,550 copies; sales through dealers and carriers, street vendors, and counter sales = 0; paid or requested mail subscription = 8,450; free distribution by mail = 50; free distribution outside the mail = 0; total free distribution = 50; total distribution = 8,500; office use, leftovers, spoiled = 350; returns from news agents = 0; total sum = 8,850; percent paid and/or requested circulation = 99%.

303-773-2877 • 800-523-9082 Fax: 303-773-6344 • cpa-staff@cocpa.org NewsAccount is available online at www.cocpa.org.

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Advocacy For the Public and The Profession: We’ve Got Your Back

BY STEVE R. CORDER, CPA, CGMA

Advocacy For The Public and The Profession We’ve Got Your Back

Each spring and fall, the AICPA holds its governing Council meetings at which CPA leaders from across the U.S. gather to learn about the issues affecting the profession nationally and internationally, receive updates on a wide array of initiatives planned and already underway, and consider how best to respond to particular challenges. Every other year, the spring Council meeting is held in Washington, D.C. In addition to notable speakers, informative updates, and the networking that is a natural and valuable byproduct, this meeting always includes time when 250+ Council members and state CPA society leaders head to Capitol Hill for face-to-face interaction with members of Congress and their staffs. This past May, I took part in the Hill visits for the first time. It was eye opening, informative, and impressive.

Before we all headed to Capitol Hill, AICPA Chair Tommye Barie outlined the AICPA’s themes for the year: adapt, innovate, and evolve. These three words encapsulate what’s going on in our profession. We’ve got to figure out better ways to provide excellent service, not only to our clients but also to our staffs and to the communities we serve.

These themes also dovetail with the

AICPA’s 6-Point Plan to Improve Audits, which is part of the Institute’s Enhancing Audit Quality initiative.

You can view and download the plan at: http://www.aicpa.org/InterestAreas/PeerReview/DownloadableDocuments/EAQ-6-point-plan.

PDF. Speakers and the discussion over the two-and-a-half days were focused on licensure, standards and ethics, the way CPAs learn, and the future of CPE, peer review, practice monitoring, and enforcement.

As we wrapped up the formal meeting and headed to Capitol Hill, I was awestruck. Why? Colorado’s delegation includes seven members of the House of Representatives and two senators. Every one of them was willing to meet with us. Most met with us directly. For the few who

were not available to meet, we visited with their legislative staffs – meetings I found to be meaningful too.

My takeaway: Those representing us in Washington, DC, are every day folks who are willing to perform a public service and, most importantly, are willing to listen to constituents.

We covered four topics during our meetings: • The IRS: As tax practitioners discovered this tax season, budget cuts have created a nightmare for preparers and taxpayers. We need resolution to the funding issues and serious attention to improving IRS customer service – a concept

that shouldn’t be an oxymoron.

• Mobile Workforce: The CPA profession continues to advocate for passage of S. 386 and H.R. 2315, the Mobile Workforce State Income Tax Simplification Acts, which would create a uniform, national standard limiting state or local taxation of employee compensation for individuals who work in more than one state or locality. Today, each state imposes different income tax withholding requirements for non-residents working in the state. Some states require withholding for just one day of work. These proposals would set 30 days or more as the de minimus threshold.

• Cash to Accrual Method of Accounting: As part of comprehen-

sive tax reform efforts in 2013, proposals were discussed which would have required the accrual basis method of accounting for certain taxpayers including CPA firms. Virtually all service companies currently using the cash method with gross receipts greater than $10 million would have to adopt the accrual method. Because scoring of one of the proposals suggested the change could raise as much as $27 billion over ten years, we’re concerned the idea may resurface. Legislators see that sum and automatically think it’s a good way to raise revenue, not understanding the impacts such as service businesses having to pay taxes on income long before it is actually received.

Colorado members were sympathetic to our case, which was

July/August 2015 • www.cocpa.org •

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Member News

The Irishman Cometh O’Brien Elected Denver City Auditor On May 11, 2015, COCPA CEO Mary E. Medley sat down with Timothy M. O’Brien, CPA, who one week earlier had won the election for Denver City Auditor. Colorado State Auditor for more than 11 years and COCPA president in1998-1999, O’Brien triumphed over Chris Nevitt, a Denver City Councilman, in what the local media characterized as a major upset.

Medley: Congratulations on your victory, Tim. I imagine you’re still processing the whole experience.

O'Brien: You know, a lot of people told me I couldn’t win. All the major players in city government, including the current city auditor who’s a long-time friend, endorsed my opponent. And, he raised a lot of money compared to what I was able to do.

Medley: On election night, May 5, you knew within minutes after voting closed at 7:00 p.m. that you were ahead by eight points.

How did it feel?

O'Brien: In my golfing career, I’ve made three holes-in-one. That’s what you’re aiming for, and it’s still a jolt when it happens. This was a jolt I’m still experiencing days later; the feeling hasn’t gone away yet. Within the first hour that night, both (current Denver City Auditor) Dennis Gallagher and Mayor Hancock (who’d been re-elected by a landslide) had called me with their congratulations. I received many congratulatory phone calls on Tuesday including one from my opponent.

Medley: Why did you run?

O'Brien: The office needs to be professionalized. The Denver City Auditor needs to be a licensed CPA — a requirement which should be in the city charter. And, the

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individual should possess audit experience. I ran because I want to do this for Denver. It’s been very good to me, and I want Denver to be good for my kids and my grandkids someday, too. Denver taxpayers deserve to know that our taxes and assets are being used in accordance with stated laws and the city’s budget — and that we’re getting our money’s worth for our tax dollars. Transparency is important, too. As I said at many neighborhood meetings over the last 90 days before the election, ‘If you don’t know what you’re buying, you don’t know what you got.’ I want to change that.

Medley: You tell an amusing and pointed story about one of those neighborhood meetings.

O'Brien: My campaign treasurer and manager Mary Frances Kelley and I were in north Denver for a gathering at the local, noisy, and crowded bar. A proud grandmother introduced me to her teenage grandson, a precocious young man who recently had testified before the Federal Reserve Bank. I told him my name and that I was running for Denver City Auditor. I was qualified, experienced, and without conflicts of interest — my platform. He shook my hand, and we both moved on to other people. About thirty minutes later, after I’d given my stump speech, he approached me and asked, “What does an auditioner do?”

When I told this story at subsequent meetings, everyone always laughed, as you can imagine. And, I always followed up with, “I’m not auditioning for this position!”

Medley: I’m guessing the unspoken message was, “I already know what to do and how to do

it,” since you were Colorado State Auditor in a previous life.

O'Brien: When I was State Auditor, the Republicans (in the General Assembly) told me I clearly was working for the Democrats, and the Democrats told me I obviously was working for the Republicans. I thought then — and still do — that’s a good definition of an independent auditor. That’s what Denver deserves. Through this experience, I saw a different side of the sausagemaker (what pundits say it’s like to watch laws being made). I think the relationship between the Denver City Council and the Mayor’ office is too chummy. Common wisdom tells us the three-legged stool is the strongest, but that’s true only if all three legs are equally strong. One journalist recently described Denver city government as a “strong Mayor model.” I look forward to working with the Mayor and with the City Council to ensure we all are accountable to Denver citizens — and that the City Auditor’s office is a strong counterbalance.

Medley: You mentioned your campaign mastermind, Mary Frances Kelley, who’s a retired CPA and to whom you also are married. How was it to work together?

O'Brien: I couldn’t have done it without her — and wouldn’t have done it without her. We agreed early on that either of us would call time out when we needed a break from the campaign conversation, and we honored that. We had a lot of fun. Our kids (daughters Kate, Claire, and Christina) had fun with it, too, even walking precincts.

2015 WOMEN TO WATCH

(From left) event co-chair Melissa K. Hooley, winners Shauna M. Shafer, Monica Martinez, Tyra L. Litzau, keynote speaker Dr. Sueann R. Ambron, winners Lori D. Gibson, Katrina L. Salem, Laura D. Srsich, and event co-chair Barbara S. Seacrest were the headliners at the May 21, 2015, awards celebration. The evening was sponsored by ACM LLP and Deloitte LLP.

O'Brien | Continued from 4 We got into a lot of great neighborhoods, and there are a lot of great people in Denver.

Medley: You began this journey officially in July 2014, the summer before a major, national election. What did you learn?

O'Brien: So many things! As people kept noting, I’d never run for, much less won, elective office. I learned to “work a room” better; to listen; to be careful not to assume people think the way I do; to avoid being dogmatic; and to be flexible and adaptable. As a candidate, you don’t know when you walk into a room full of people whether you’ll get three minutes or more or less. You have to be ready for whatever comes. I also think that CPAs need to step up more politically — many of them shun even doing governmental work and shouldn’t.

CPAs should consider running for office because they possess the necessary skills to be a city auditor, treasurer, or controller. Citizens and our governmental institutions need CPAs. Medley: What’s next?

O'Brien: Right now, I’m returning lots of email messages and sending lots of thank you’s as well as meeting with people who are important to the office. I’ll be sworn in on July 20, 2015, and then I’ll go to work officially. I’ll be looking to build the right team because you get things done through people. That’s what I did as State Auditor, and that’s what I intend to do as Denver City Auditor. I’m humbled by the opportunity, and I will deliver. s

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July/August 2015 • www.cocpa.org •

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Professional Services

Enhancing Audit Quality is Job One

No doubt you heard the rumblings: A new U.S. Department of Labor (DOL) study on audit quality was underway, and the news wouldn’t be good. Now, the official word is out, and the news definitely isn’t good. What is positive is the profession’s work in this area.

O

n May 28, 2015, the U.S. Labor Department’s Employee Benefits Security Administration (EBSA) published its long-awaited study on the quality of employee benefit plan audits performed by CPAs, citing serious deficiencies.

Overall, the EBSA found that 61% of audits reviewed fully complied with profes-

sional auditing standards or had only minor deficiencies under professional standards.

However, 39% of the audits contained major deficiencies with respect to one or more relevant GAAS requirements which would lead to rejection of a Form 5500 filing.

Additionally, the study found that the smaller a CPA firm’s employee benefit plan audit practice, the greater the incidence of audit deficiencies.

Members of the AICPA’s Employee Benefit Plan Audit Quality Center (EBPAQC) tended to issue fewer audits containing multiple GAAS deficiencies.

Additionally, non-EBPAQC member firms tended to have a larger number of GAAS deficiencies, per audit engagement, compared to EBPAQC members.

Two weeks before the report was released, the AICPA released its 6-Point Plan to Improve Audits (www.aicpa.org/ InterestAreas/PeerReview/Pages/EAQ.aspx), ranging from accounting education and the

Uniform CPA Examination to peer review and enforcement, as outlined below.

The plan integrates quality enhancements throughout an auditor’s journey. It starts before an individual is licensed as a CPA. Then, the journey continues as the CPA builds professional competencies, engages in practice monitoring, and plays a role in peer review — either as a reviewer or as a practitioner under review. It places the necessary emphasis on areas that will drive higher audit performance, recognizing that focus on these areas is important both before the audit engagement is performed and after.

Audit quality has always been an imperative for the CPA profession. As businesses have become more complex, so too have financial statement audits. A year ago, the AICPA recognized that more significant steps were needed to address challenges related to audit performance, and now there is a pathway forward for doing just that.s

6-Point Plan to Improve Audits Pre-licensure The next version of the CPA Exam is designed to increase assessment of higher-order skills, such as critical thinking and professional skepticism; high school AP accounting course; changes to college-level accounting education; additional doctorallevel audit professors with practical experience

Standards and Ethics Quality control standards implementation support; evaluation of clarified standards implementation; auditor’s report revisions; ethics code codification

CPA Learning and Support Competency models for audits, including employee benefit plan and governmental, competency assessment tools, targeted

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resources to develop competencies; certificate programs to demonstrate competence; nano, blended, and informal learning programs; Employee Benefit Plan and Governmental Audit Quality Centers’ resources, tools, and training; Center for Plain English Accounting; audit guides, risk alerts, and practice aids

Peer Review Focus on greater risk industries/ areas, including EBP and Single Audits; more significant remediation including pre-issuance reviews and aggressive follow-up; root cause analysis (for poor and good quality); termination from peer review after repeat quality issues

Practice Monitoring of the Future Long-term initiative for near real-time, ongoing monitoring of firm quality

checks using robust technological platform

Enforcement Aggressive investigation of all referrals of deficiencies; enhanced coordination with state boards of accountancy

State Board of Accountancy

New Rules Now In Play E

ffective, July 1, 2015, Colorado officially is a 150-hour state.

Not only does that mean all Colorado candidates for CPA licensing must obtain the additional education, but also it means several other rules have changed, as well.

In 2010, the Colorado General Assembly adopted a 150-semester hour approved college education requirement for an individual to be eligible for certification. Applicants for the Colorado CPA certificate are required to meet the new education requirements even if previously deemed eligible to sit for the Uniform CPA Examination under the old requirements.

In addition to the additional education, the Colorado statute requires work experience. Historically, an applicant seeking certification could provide evidence of an additional 30 semester hours of approved college education in lieu of experience to satisfy the experience requirement. This alternative avenue for certification expired on June 30, 2015.

On and after July 1, 2015, to be eligible for examination, the applicant must demonstrate he or she obtained a baccalaureate degree of at least 120 hours of approved education, including the completion of the specific subject courses provided for in rule. In addition, the applicant must show the following:

A candidate with foreign education applying to take the Uniform CPA Examination and/or for certification must provide the following documents:

• Accounting coursework at the undergraduate or graduate level must have a grade of a C (or equivalent) or greater, described in rule as a minimum of a 2.0 on a 0.0 to 4.0 grading scale.

With regard to “pass/fail” or letter based (“A” thru “F”) grading systems, the applicant must demonstrate to the satisfaction of the State Board that a grade of “pass” or a letter grade is equivalent to a 2.0 or greater.

• Introductory accounting courses such as principles of accounting, accounting and tax software courses, payroll accounting, and other basic accounting courses do not count toward the specialized 21 semester hours in accounting set in rule.

On and after July 1, 2015, to be eligible for certification, the applicant must demonstrate he or she obtained a baccalaureate degree that includes 150 hours of approved college education (or a higher degree), and the requirements previously noted apply.

• Foreign Education Evaluation • Letter from educational institution certifying the audit course has a concentration in U.S. GAAS • Audit course syllabus • Name, author, and publisher of the primary textbook used in the audit course For additional details, contact the following organizations: • Colorado State Board of Accountancy: dora_accountancyboard@ state.co.us • The statutes and rules (Chapter 2) that describe the education requirement: www.dora.colorado.gov/professions/accounting.

• National Association of State Boards of Accountancy (NASBA): www.nasba.org.

• Colorado Examination Coordinator: cpaes-co@nasba.org or 800-272-3926 • Colorado Licensing Coordinator: colicense@nasba.org or 866350-0017 s

Colorado Requirements: On and After July 1, 2015 For Examination

Courses above the introductory level

Total Hours

Degree

Accounting

Business

Accounting

Business

Baccalaureate or 120 semester hours

21 semester hours

12 semester hours

27 semester hours

21 semester hours

27 semester hours

18 semester hours

33 semester hours

27 semester hours

(See Rule 2.4)

For Licensure

Baccalaureate + 30 semester hours

July/August 2015 • www.cocpa.org •

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Sales and Use Tax

New Coalition Seeks Tax Reforms

F

irst, a little background: In January, 2015, the Coalition to Simplify Colorado Sales Tax, www.simplifycosalestax. org, was formed as a nonprofit organization, and the Colorado Society of CPAs joined as one of nine charter members of its Board of Directors. The mission: “To reform Colorado’s excessively complex sales and use tax system with multiple goals: fairness, simplicity, and predictability for business; revenue neutrality to avoid any adverse impact on local and state public services; and a competitive economic environment in Colorado that will attract employers. This coalition of businesses, trade organizations, and other interested taxpayers will drive reforms to achieve these goals.” COCPA members Laura H. Asbell, CPA, and Pamela M. Feely, CPA, along with COCPA CEO Mary E. Medley, attend Board meetings as COCPA representatives. The Coalition’s initial effort has focused on removing the barriers to due process in Colorado tax assessment appeals.

The Issue To appeal a tax assessment to an independent court, Colorado businesses and individuals must either pay the full amount in dispute, including interest and penalties,

or post a bond for twice that amount. On very large assessments, this creates a significant barrier to due process, leaving small businesses and other taxpayers with little choice but to accept even settlement offers they consider unfair.

One Example

would have remained responsible for their legal fees.

The Outcome

A Lakewood woman who runs estate sales faced a $287,000 tax assessment.

She and her attorney believed her sales tax responsibilities were unclear and that the auditor’s claims were not properly substantiated. Nonetheless, she was forced to accept an $11,000 settlement offer because she couldn’t afford to go to court.

The bill, which garnered bipartisan support, was heard in the Senate Local Government Committee and passed unanimously after compelling testimony from business owners. The COCPA went on record in support, along with a diverse group of business organizations. Despite that, the bill didn’t become law due to time constraints in the legislative session.

The Proposed Solution

What’s Next

Senate Bill 15-279, sponsored by Senators Tim Neville and Cheri Jahn and Representatives Tracy Kraft-Tharp and Jon Keyser, was introduced to protect taxpayers’ due process by giving them access to district court without a mandate to pay an assessment or bond until after a decision from at least one independent court is rendered. Court costs would apply as in regular civil matters. The bill covered local and state taxes except for property taxes. Taxpayers

The Coalition is moving ahead with plans to address both appeals assessment reform and other sales and use tax-related reforms. You can support these efforts by joining the Coalition at www.simplifycosalestax.org/join, and by sharing stories of how Colorado businesses are burdened by the state’s sales tax structure at www.simplifycosalestax.org/share_your_story. Also, watch for updates on the Coalition’s efforts in future issues of NewsAccount. s

Revenue, in collaboration with organizations representing counties and municipalities, to address establishment of a uniform sales and use tax base statewide. In addition to a uniform list of items exempt from taxation by the state and local taxing jurisdictions, uniform definitions of those items, rate changes — including consideration of rates of zero percent that would be necessary to achieve revenue neutrality for the state and any local taxing jurisdiction, and a uniform definition of tangible personal property, the report was

to include any other recommendations the Department deemed appropriate to establish a revenue neutral sales and use tax base.

The 103-page report, “Uniform Sales and Use Tax Base Throughout the State: Recommendations to the General Assembly to Establish a Revenue-Neutral Uniform Sales and Use Tax Base Throughout the State, Required by HB13-1288,” was issued in December 2013, as HB13-1288 required.

To date, none of the recommendations has been implemented. s

Uniformity vs. Complexity Nearly 300 taxing authorities exist in Colorado with differing sales and use tax bases. When overlapping boundaries are considered, the number jumps to 756 areas with different rates and bases — placing a heavy burden on businesses operating here.

Sixty-nine Colorado home rule cities determine their own tax structures and remittance. Definitions of what is taxable and what is exempt vary widely.

In 2013, legislation was passed which required the Colorado Department of

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Practitioner Alert

CDOR Implements Fraud Protection Protocols

I

f you, a client, a colleague, or a friend receives one of the following communications, the knee-jerk reaction in today’s environment could be, “Is this for real?” The answer is yes. Due to increased identity theft and fraud, the Colorado Department of Revenue has instituted new procedures to protect Colorado taxpayers.

Request for Additional Information to Process a Refund This letter, printed on State of Colorado letterhead, will come from the Department’s Discovery Section which can be reached at 303-205-8292, fax 303-866-3018, or dor_ discovery@state.co.us.

2014 Individual Income Tax Return Inquiry — Case XXXXXXX — Excerpt Before the Department of Revenue can process your 2014 Colorado Income Tax Return, additional information is required.

Submit all of the following documents that apply to you. Provide a copy of your 2014 W-2(s), 1099(s), military LES, K-1(s), settlement statement forms from the sale of your property or verification of your estimated payments (copies of the front and back of the canceled checks).

If you were employed, provide the date(s) you were hired.

If you were employed, provide a copy of the last paycheck stub(s) you were issued in 2014.

If you were in the military, provide a copy of the last LES for 2014.

If your employer is doing business under a different name, provide the Department with both names.

Provide a copy of your driver’s license and social security card.

Provide the name of the employer(s) you worked for this year and last year.

Provide the amount of your 2013 Colorado income tax refund.

Provide the amount of the refund you requested on your 2014 Colorado income tax return.

Provide the name of the bank and the last four digits of the bank account number to which you are depositing the requested refund.

If this is a debit card and you do not know the name of the bank, provide the name of the tax software company or the tax preparation firm you used to file the return.

Please fax the requested information to 303-866-3018, within 30 days of the date of this letter. If you do not have access to a fax machine, please mail or email the information to the address indicated below. Only send the information once, as multiple submissions could cause processing delays.

Attach the Correspondence Routing Document provided to the front of your correspondence. Failure to provide the above required documentation will result in a denial of the 2014 Colorado income tax refund you claimed.

Paper Refund Check Substitution The CDOR includes this information when a refund is converted from direct deposit to a paper check and mailed as a fraud prevention procedure.

State of Colorado 2014 Individual Income Tax Refund — Excerpt Enclosed is your refund for your recently filed 2014 Colorado individual income tax return. In an effort to combat fraud and maintain the security and confidentiality of taxpayer information, the Colorado Department of Revenue has converted your direct deposit refund to a paper check. We have identified an increase in potentially fraudulent activity on 2014 individual income tax returns. We are

closely monitoring income tax filings and diligently working with other states and industry members to ensure the protection and security of taxpayer data and to ensure taxpayers receive the tax refund to which they are entitled. If you have not yet filed your 2014 Colorado individual income tax return, DO NOT cash this check. Report this information to the Colorado Department of Revenue Fraud Hotline by calling 303-205-8338.

Remember, if you need assistance with a particularly difficult Department-related matter, the COCPA is here to help. Email the following information to COCPA CEO Mary E. Medley at mmedley@cocpa. org. Medley will forward your email and attachment(s) to the COCPA’s contact at the Department for assistance.

• Taxpayer Name(s) • Colorado Account Number(s) or last four digits of the SSN(s) • Brief Summary of the Issue(s) • Whether you have a Power of Attorney on file or are the Third Party Designee on the return — if yes, you’ll be contacted directly. If no, the CDOR will contact you to let you know a representative will contact your client.

• CDOR notice in pdf format, attached Also, make note of the CDOR Tax Practitioner’s Helpline, 303-232-2419, which is reserved for tax professionals.

Department staff answer calls, Monday through Friday, 8:00 am to 4:30 pm, except on state holidays. s

July/August 2015 • www.cocpa.org •

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Take a Vacation. Please.

For Americans, the phrase, “You need a vacation,” has never been more true. A recent study revealed that Americans take only half of their paid vacation — a 40-year low. Thinking about skipping your vacation this year? Here’s why you shouldn’t.

BY NATALIE ROONEY

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Personal Development Vacation Time

Getting People Out of the Office

We dream about it. We talk about it. We might even plan for it. But then, we don’t take it. At least that’s what a 2014 study by Oxford Economics says. According to the study, in 2013 U.S. employees took an average of 16 days of vacation, compared with an average of 20.3 days as recently as 2000.

Another 2014 study conducted by Harris Interactive showed that employees only use 51 percent of their eligible paid vacation time and paid time off. And when they do finally go, 61 percent of Americans work during vacation.

What’s behind the “I just can’t take a vacation” mindset? The studies reveal that much of the concern lingers because of the recession years. Mike West, CPA, CFO of Cheyenne Capital and 2007-2008 COCPA Chair, agrees. “During the financial crisis years, most companies paid out for unused vacation,” West says. “It meant extra cash if you didn’t take your vacation. It was an easy choice in a lot of cases.”

In addition, employees fear they’ll be seen as less committed to the job if they take a vacation. By skipping time off, they think they’ll be safe from a future layoff. The data, however, doesn’t support that line of thinking.

Rather, studies show that people who take more time off tend to receive more raises and promotions.

One-third of survey respondents said they cannot afford to take their time. Forty percent fear returning to a mountain of work. And 35 percent believe no one else can do their work.

“It’s problematic,” says Tom Dosen, CPA, managing partner at Bauerle and Company, PC in Denver. “I think some of the younger folks watch middle managers, supervisors, and partners who don’t take time off, or when they come back it’s always a fire drill, and they copy that behavior if they want to move up the ladder.”

Stephanie Hernandez, CPA, manager, faculty relations at KPMG LLP’s Denver office, says firms have learned an important lesson over the years. “It goes back to a time when people burned out and quit,” she says. “Firms have come up with ways to make sure people have time to refresh and recharge. Now, taking time off is talked about and encouraged.”

Sometimes, people need a little help getting out the door, so Dosen says his firm monitors and encourages them to get out of the office and on vacation. “It’s the constant demand of the profession, not that management doesn’t want them to take the time off,” he says of employees’ reluctance to leave.

At Bauerle, new employees receive two weeks of paid vacation and up to seven days of sick time. Employees can carry sick time over to accumulate up to 45 days. After five years of service, employees accumulate a day per year up to four weeks of vacation, plus other benefits. While employees can roll vacation time over, after 18 months, it will be forfeited. “We put that in place so people do go on vacation,” Dosen says. “We want them to get out and enjoy it.”

In addition, the firm closes on Fridays, May 1 through Aug. 1. “They can take threeday weekends around long holiday weekends,” Dosen says. “It creates a nice stretch of time off.”

Hernandez explains that at KPMG, everyone has a People Management Leader who not only makes sure employees meet expectations but also that they’re taking vacation. “As a PML, if I see on a report that someone isn’t taking vacation time, I work with the individual to create a plan. It’s something intentional within the firm.”

KPMG uses a PTO system, which works on an hourly basis. “If I need to leave two hours early, I don’t have to take a full day,” she says. Employees receive 20-25 PTO days, including sick time, each year. They can carry over 50 percent of their annual accrual. “There is the potential that if you aren’t managing your time well, you could lose it,” Hernandez says. “That’s why we have the notification system. We don’t want people to miss out.”

Hernandez says she has been on the receiving end of that very conversation.

“My supervisor told me he knew I felt busy and overwhelmed but that it probably was because I wasn’t taking a break,” she remembers. To help her use her time and not lose it, Hernandez’s supervisor suggested she take a Monday off every month. “It was a great way to get back in the habit of taking time off,” she says. “I felt refreshed by taking a three-

day weekend but didn’t feel I missed a lot or was coming back to extra work. This is about reminding people that the world isn’t going to stop if you take time off.”

Ultimately, employees taking their vacations is tied to the tone at the top of the organization, West says, pointing to the sabbatical policies many accounting firms have put into place for individuals at the partner level. “There has been a real recognition that this works at the top level. It sets the tone that people need to recharge their batteries once in a while.”

It wasn’t always like that in the accounting profession. “Back in the day, there was the feeling that if you needed to take time off, something was wrong with you. People thought, ‘This person isn’t dedicated,’” West says. But the Millennials may be changing that. “I would imagine that a culture that allows people to disconnect once in a while is a definite recruiting and retention positive,” he notes. “It’s about quality of life.”

What is a Vacation Anyway?

Before we were all so virtually connected, vacation meant you left the office and you didn’t know what was going on, unless you found a payphone and checked in. “We are so connected that it has become harder and harder to really step away,” West says.

“Technology makes it easier to go, but vacations aren’t as meaningful.”

West emphasizes that vacations are supposed to help you disconnect and recharge your batteries. “Plus, it’s incredibly important for a company to make sure it can function reasonably well when someone isn’t there,” he adds. “It’s healthy to give someone else the opportunity to step up. In addition, there are internal control issues. It just gets harder and harder to step away because of technology.”

Christina Carlson, a senior accountant at Bauerle, says she considers vacation as scheduled time away from the office to relax. While she says she’s pretty good about not working on vacation, she admits she isn’t fully disconnected. “I’m still checking emails that come through and forward-

Vacation | Continued on 12 July/August 2015 • www.cocpa.org • 11

Personal Development

Vacation | Continued from 11 ing them on to someone else to respond if they need immediate attention, even when I have my out-of-office reply on,” she says.

Carlson acknowledges that it’s important to get away and refresh.

“I’m not the type of person who can work 24/7 without taking a break, and it does seem to help my mood,” she says. “After being away for a week, I typically come back feeling more motivated, like I’m returning with a clean slate, even if I did leave for vacation with a plate full of work waiting for me.”

Carlson says Bauerle is very good about vacations. “We are able to take vacation when we need it, even if we don’t necessarily have the vacation time,” she says. “We can talk to one of the partners and human resources to work out some agreement so we are able to get the time away that we need.”

The irony for those who don’t take vacation because they think they just can’t leave their work behind is that studies show employees are much more effective after time away from the daily grind.

The Oxford Economics study showed that employees who forfeit PTO do not receive raises or bonuses at a faster rate than those who take all of their vacation time. In addition, employees leaving days on the table report higher levels of stress at work.

Barbara Tedesko, CPA, CGMA, financial management specialist for the City and County of Denver, says when she started in government work, she couldn’t believe how people banked their vacation time. “I thought they were crazy,” she says. “There’s a culture that people try to get their balances to a maximum amount before they retire as the current rules allow yearly carryovers. The result is an increased retirement payout and larger pension checks.” But even with some people pursuing that strategy, Tedesko says most people do take their vacation time.

Timing, of course, can be critical. Tedesko says when her department is producing its comprehensive annual financial report, no one takes vacation. That’s just part of the job. But at other times, they work to make vacations possible. “When someone takes a vacation, we just figure out a way around it,” she says. “If someone is going to be gone for two weeks, someone needs to step in. Delegate!”

Tedesko sees the benefit of taking her own allotted time as well.

“I love it when I’m gone for two weeks or more,” she says. “The first week you don’t relax. And if you stay home, you still work. You need to go somewhere and get away from email and the phone. That’s the only way to relax. More people need to do that.”

Pssst: You’re Working for Free If relaxing, recharging, and better opportunities for advancement don’t resonate as reasons to take your vacation, how about this?

When you don’t use your vacation time, you’re working for free.

Among employees with PTO, nearly five days went unused in 2013. Of those five days, 1.6 days were permanently lost, totaling 169 million days across the workforce. Those 169 million days of forfeited PTO equated to $52.4 billion in lost benefits. Overall, U.S.

12

• NewsAccount • July/August 2015

workers give 1.1% of their compensation back to their employers each year, in the form of free work.

A number of studies show that fewer vacation days can, perhaps counterintuitively, lead to decreased productivity. Researchers at Alertness Solutions found that the respite effect of a vacation can increase performance by 80 percent. Reaction times of returning vacationers increased 40 percent in another study. The moral of the story? Take your vacation time. It’s good for you. It’s good for your company.

“It’s a win-win for everybody,” Tedesko says. “It’s a mental break.

You come back with a better attitude.” s

Finding the Time – And Taking It Author Brigid Schulte writes in the preface to the 2015 edition of her book, Overwhelmed: How to Work, Love, and Play When No One Has the Time (Picador), “You’re living life in fast forward.

Your inbox is overflowing. Your days feel scattered in bits and fragments of what feels like Time Confetti. And maybe you think this is just the way life is.”

Sound familiar? If only you could find the time to take your time, to get away, to feel your shoulders relax, to do whatever you want to do when and how you want to do it, right?

Schulte, a journalist and writer, provides well-researched and documented perspective on why Americans work the way we do and offers concrete suggestions for creating genuine, meaningful leisure time. If you read it, keep a highlighter handy to mark the nuggets you’ll mine along the way.

To begin Chapter 7, “When Work Works,” Schulte quotes former KPMG CEO Eugene O’Kelly: “What if I hadn’t worked so hard? What if…I had actually…used my position to be a role model for balance? Had I done so intentionally, who’s to say that, besides having more time with my family, I wouldn’t also have been even more focused at work? More creative? More productive? It took inoperable late stage brain cancer to get me to examine things from this angle.”

Schulte headlines the appendix with poet Carl Sandburg’s admonition: “Time is the coin of your life. You spend it. Do not allow others to spend it for you.”

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13

Accounting Education

The Evolving Skill Set: Are Today’s Accounting Students Ready for the Real World?

BY NATALIE ROONEY

A

new report from PricewaterhouseCoopers LLP (PwC) is taking a hard look at our rapidly changing world, including demographics, the economy, and technology, and asking if today’s graduating students are prepared for the challenges ahead.

One of the drivers behind the report, Data Driven: What students need to succeed in a rapidly changing business world, is data analytics, which is having a profound effect on the business environment. The report offers “specific accounting curriculum recommendations to strengthen technical foundations in data analytics and related skills, which are relevant for all students considering careers in business.”

Katrina Salem, CPA, Rockies Market managing partner for PwC in Denver, says the firm defines what it’s looking for from its new recruits in the form of the “PwC Professional” — a combination of skills including business acumen, global acumen, technical capabilities, relationships, and whole leadership. “Certainly, technical skills are important. We’ll always be focused on students with those because they’re necessary to the delivery of professional services,” Salem explains. “But the PwC Professional framework prompts us to focus more on the whole professional — how each of us rounds things out to truly be successful in business.”

Salem says global acumen is becoming an increasingly sought after skill and a critical component in how firms deliver services to clients. She adds that students need an intellectual curiosity and understanding of how business works and how a client’s business drives profitability, while still being adept at analytical thinking. At the center of it all is whole leadership. “We’re getting much more focused in today’s environment,” she says. “If you are capable of leading yourself and others, you can strengthen the brands of the team, the firm, and clients.”

A recent PwC survey of more than 1,300 CEOs in more than 60 countries showed that CEOs are concerned about skill gaps. They are looking for a much broader range of skills when hiring than they have in the past. Additionally, CEOs are championing digital technologies, developing a clear vision of using digital tech for competitive advantage, and are fixated on data analytics. Combine all of these “wants” with concerns over changes in industry regulation, and you begin to develop a sense of what companies need from today’s students — an analytical mindset, technical skills, and a solid foundation for leadership.

Salem says everyone is trying to figure out how the trends in Big Data are impacting businesses, schools, and ultimately, individuals. “There’s so much information. How do we consume it in such a way that it provides benefit for us?” she asks. “There’s a difference between information and knowledge. Every bit can’t inform us. It’s about changing how we recruit and develop our people.”

Fifteen years ago, students took an information systems or programming 5) class to cover technology requirements but never did any-

14

• NewsAccount • July/August 2015

thing with it, Salem points out. Now, it’s about embedding critical thinking into the day-to-day work of students. “How do we teach students to look at structured and unstructured data and think about the implications from audit, tax, and business perspectives?” Salem serves on the Colorado State University business school advisory board and is talking to professors about these very issues.

The PwC report predicts that “demand will continue to exceed the supply of candidates who have an analytical mindset, technical skills, and a foundation for leadership.” And while skills in data analytics are on everyone’s radar, the report also concludes that “broader business acumen, global awareness, relationship skills, and leadership abilities will be just as coveted. This broad base will equip students to not only solve challenges but also to frame these issues in a broader context, so they can ask the right questions — the ones that lead to root causes and solutions.”

It’s clear that businesses are preparing for a future that’s different from today. And they expect their talent to adapt. “It used to be that knowledge was power and held by a few,” Salem says. “Now all this information is out there and fully consumable by everyone. How do we find and train the best and the brightest for the highest benefit to our clients? It continues to evolve. As we see data analytics evolve, we’ll continue to ask how we can build on these essential, new skill sets.” s View and download the full report at: http://www.pwc.com/us/en/ faculty-resource/assets/PwC-Data-driven-paper-Feb2015.pdf.

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For Chartered Global Management Accountants

Why Risk-Management Leaders Generate Higher Profits

F

ew U.S. companies are riskmanagement leaders, even though most executives and directors agree that business uncertainties and threats are increasing, a PricewaterhouseCoopers LLP (PwC) survey suggests.

Nearly three-fourths (73%) of the more than 1,200 survey respondents said risks to their business are increasing as leaders must supply more data to regulators and potential deal partners, protect intellectual property and customer data from increasingly sophisticated cyber-attacks, and better understand risks embedded in their supply chains.

Proactive and well-integrated risk-management programs help businesses deal with these uncertainties and threats, but only 12% of the companies participating in the survey have established them.

“Integrating risk management into the life cycle of your business gives you the opportunity to do two things,” Dean Simone, PwC partner and risk assurance leader, says in the survey report. “First, it helps you understand the implication of risk at the point of decision rather than afterward. And second, it allows you to move quickly and confidently, knowing that you’ve anticipated the risk and are less likely to have made a mistake that could slow you down.”

Forty-one per cent of the risk-management leaders identified in the survey reported profit margins of 10% or more in the past three years, compared to 31% of the other companies. And 55% of the risk-management leaders increased their profit margins in the past three years, compared to 43% of the other companies.

Four Key Strengths Needed Understand how risks interconnect and cascade. Risk-management leaders create risk-appetite statements for the company and each significant business unit that are tailored to match each unit’s unique risk profile. The approach allows 73% of the risk-management

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• NewsAccount • July/August 2015

BY SABINE VOLLMER

leaders in the survey to take an aggregated view of risk, compared with 27% of the other companies. This aggregated view helps 70% of the risk-management leaders see how risks interconnect and cascade, which only 23% of the other companies can do.

Fully align risk-management programs across business units. Ninety per cent of the risk-management leaders have risk-management programs that are highly aligned with the company’s strategic planning process.

Cross-functional alignment was particularly strong between the risk function and the finance function (97%), internal audit (95%), and corporate compliance (93%).

They were also far more likely to say they involve risk analysis in their decision-making process (67% among leaders compared with 43% among non-leaders), which allows them to spot more business opportunities.

Apply sophisticated techniques to anticipate and address risks. Forty-six per cent of risk-management leaders spend more time calculating and preparing for risk than reacting to it (vs. 21% of the other companies).

Techniques used include identification and forecasting of emerging risks (96% of leaders vs. 59% of non-leaders), building organizational resilience to risk (88% of leaders vs. 42% of non-leaders), scanning the horizon for early-warning indicators (81% of leaders vs. 33% of non-leaders), scenario planning (77% of leaders vs. 33% of nonleaders), and stress testing (75% of leaders vs.

30% of non-leaders).

Financial services companies lead businesses in other sectors in using sophisticated risk-management techniques, followed by health-care companies. Sixty-eight per cent of companies in developed economies identify and forecast risks, compared with 56% of companies in emerging economies.

Be willing to take risks because you have a strategic understanding of your risk appetite. Risk-management leaders are more confident about being able to manage risks.

Ninety per cent said they are highly effec-

tive in managing regulatory and compliance risk (64% of non-leaders). Ninety-three per cent felt that way about financial risk (72% of non-leaders), 86% about brand and reputational risk (51% of non-leaders), and 83% about earnings and volatility risk (52% of non-leaders).

Based on their confidence, risk-management leaders are more likely than other companies to have a high or very high risk appetite in several areas. The differences are most pronounced for accepting financial risk (31% of leaders vs. 21% of non-leaders), diversification and concentration risk (35% of leaders vs. 26% of non-leaders), regulatory and compliance risk (20% of leaders vs. 13% of nonleaders), and earnings and volatility risk (27% of leaders vs. 20% of non-leaders).

Also, 68% of the risk-management leaders have a risk-appetite statement that is wellcommunicated and understood (vs. 20% of non-leaders), and they are more likely to examine risks and opportunities to help them determine where to focus growth efforts (88% of leaders vs. 32% of non-leaders).

To Become a Leader The PwC report recommends five strategies to better anticipate and prepare for risk events, identify acceptable risks, and generate higher returns: • Create a risk-appetite framework, and take an aggregated view of risk.

• Monitor key business risks through dashboards and a common governance, risk, and compliance technology platform.

• Build a program around expanding and emerging business risk, such as thirdparty risk and the digital frontier.

• Continuously strengthen your second and third lines of defense.

• Partner with a risk-management provider to close the gap on internal competencies. s

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Using Revenue Online for e-Filer Attachments

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nce upon a time, you had to file the DR 1778 e-Filer Attachments in hard copy. Now, e-Filer Attachments can be uploaded into Revenue Online without logging into a taxpayer’s account. Here’s how to do it: • Click the blue Submit an e-Filer Attachment link.

• Follow the steps to enter the Taxpayer Information, Account Type, and ID Type.

• Click OK. • Click on the Step 3. Attach Documents link or, click on the Attachments Add link on the far left side of the screen.

• Enter your own description of the attachment you are submitting.

• Click the Browse button to find the electronic file you created, saved, and now will submit.

• Click OK.

• Click the Save button to attach the document. The document will be listed in the Attachments Add box on the far left side of the screen. You may remove it by clicking the red x next to the document, or you may continue adding more attachments.

• Enter the tax year/period, income tax type (individual, corporate, or partnership).

• When you have added all your attachments for this taxpayer, click the blue Submit button.

• Enter spouse information (if applicable) and mailing address.

• From the list of documents, check the box(es) to indicate the form(s) you are attaching. This list is a duplicate of the documents list on the DR 1778 paper e-Filer Attachment form.

You will see a confirmation message on the screen that reads: Your request for e-Filer Attachments has been sent to the Department of Revenue.

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17

Cybersecurity

Protecting Against Data Breaches

BY TOM PARKER

As your clients’ or employer’s trusted advisor, you are responsible for protecting valuable information, from credit card and bank account numbers, to client and customer names, social security numbers, tax IDs, and anything else that can personally identify an individual. Standing pat, turning a blind eye, or being in denial of the realities of cybercrime and data breaches can destroy individual and company reputations and your company’s brand.

The Identity Theft Resource Center estimates there was an average of 15 data breaches a week in 2014, and according to USA Today, 43% of U.S. companies had a data breach in the past year. Moreover, cybercrime cost the global economy $575 billion and the U.S. economy $100 billion annually, making it the largest hit to any country, according to a report from Intel and the Center for Strategic and International Studies.

To keep your valuable information from being captured, here are six ways to protect your firm or company from a data breach: 1. Create Security Awareness Recognize that your systems aren’t something that just processes information but rather something that “lives” and needs to be protected. Build a culture of accountability with your staff and in your organization.

It is everyone’s responsibility to think about security, and it’s time to make this personal by reminding staff about their own privacy.

After all, would you want your own social security number, bank accounts or any other data to be breached? If it can happen to you, it can easily happen to your clients or your company.

2. Maintain Simple System Hygiene Protecting your firm from a data breach isn’t difficult, but it does require constant attention — something I refer to as “simple

18

• NewsAccount • July/August 2015

system hygiene.” At the very least, you want to update your security regularly. This comes down to patching your systems and usually involves more than Microsoft Windows or Mac system updates, such as Java, for example. Anti-virus software helps, too, but

you can’t always rely on standardized programs, such as McAfee or Norton, to protect you. All software providers provide security updates, so if you aren’t getting these or are unaware of where to obtain the updates, contact your provider right away.

3. Establish Policies and Procedures Firms and organizations with clear, written, systems policies and procedures are far less vulnerable to data breaches than companies without them. Creating these policies is good for several reasons. First, it gives your staff a roadmap to follow and takes away any guesswork on their part as to what they can, for example, download from the Internet.

Second, it helps protect others’ personal information because you’ve implemented best practices in your organization. Third, you can tell your clients or customers about your proactive stance in mitigating any potential risk.

Your policies and procedures should be a working document, routinely updated as needed. If your organization is large enough,

you may have an IT professional on staff who can do this. Think of these policies and procedures as the repository for a security awareness program. The main function of the program is to make all staff aware of what to do to protect the sensitive information. As basic as it sounds, include, for example, procedures on password length and how often passwords will be changed. It is good, basic hygiene to change your passwords every 90 days.

4.

Establish Access Controls As your business grows, you must implement access controls. You might think a sole proprietor doesn’t need to worry about access, however the presence of even one more staff person — administrative or otherwise — could create an opportunity for a data breach.

Access controls focus on who gets access to what information. Think of this in terms of your finances. Your administrator may prepare the checks for you to sign, but he or she shouldn’t also have signing authority. Similarly, you want to ensure you aren’t giving access to everything in your company to everyone in your company. Instead, give employees access only to what they need to access. If you get pushback, you may have a larger problem.

Access controls are also referred to as role-based security, granting access designed for each employee’s specific role. A good place to write down your role-based security procedures and processes is in the document you created when you looked at simple system hygiene.

5. Conduct Regular Risk Assessments Risk assessments should be conducted at least once a year. It’s important to pick a vendor to do this that isn’t just running

Security | Continued on 20

Generations & Change

Colorado: One Millennial's Perspective

BY KRISTA FLYNT

E

very day, the media puts out another article (or twenty) on “those darn Millennials.” Well, if Coloradans know anything about what TIME labels the “Me Me Me Generation,” it’s that Millennials — those between 20 and 34 years old — just can’t stop moving to the Front Range. In fact, they compose 22% of the Denver population — and the area had the highest millennial population growth of any metropolitan area in the country since 2007, according to ColoradoBiz. Now’s the time for my confession. With 28 years under my belt, I am a Millennial and part of this generational migration boom.

Additionally, I had the superb timing of graduating from Syracuse University with a Journalism degree, at the absolute depths of the Great Recession in 2009. From where I was sitting, Colorado looked pretty great with the sunshine, mountains, and one of the lowest unemployment rates in the U.S. So, in 2010, I made the move to Denver.

Five years later, Colorado is still forging ahead and looks to become one of the country’s economic powerhouses. More and more companies are moving their headquarters here in search of the best talent. Even Google is building a campus in Boulder to more than triple its workforce from 400 to 1,500.

“You look at the education attainment level for Denver and Colorado, and it’s double that of the rest of the peer states around this area,” says John Sikaitis, national research director for financial and professional services firm JLL. Even though there is obviously a feedback loop between where the jobs are and where the workers are, which leads to talent concentrations, it’s the qualities of Colorado itself that prompts many to move here instead of choosing the traditional New York City, Los Angeles, Chicago trajectory.

Says my friend Joyce Huang, 29, originally from Florida, “I earned my masters at the University of Colorado Boulder where I was exposed for the first time to mountain life — the beauty, the fun sports like snowboarding and hiking, the microbrews, and the people. A job offer after graduation pulled me to North Carolina, but when a transfer opportunity to Denver came up, I knew I had to take it. I had fallen in love with all Colorado has to offer. Now, I’m even looking at buying a house.”

Speaking of housing, the constant in-migration has caused the Colorado housing market to explode. I could quote the statistics — but I’ll share my personal experience instead. When I moved here without a job, I was able to secure a two-bedroom apartment at 11th and Logan, close to downtown Denver, for $800 a month including utilities and parking. That was cheaper than my college apartment in Syracuse, NY! I was amazed.

Oh, how the times have changed. Today, you’re lucky to find a basement studio for that price. And a two-bedroom apartment in Denver now averages $1782 according to rentjungle.com. "The supply of apartments available to these new residents has not been able to

keep up with the demand, leading to intense pressure on housing prices," says Max Rosett, a data scientist with Apartment List.

Constant rent increases made me realize I wouldn’t be able to afford to rent in Denver much longer, so in 2014 I bought a house. It was a long and difficult process. I had to realign my impression of what something was worth with what the Denver market said it was worth — made even tougher when housing values kept rising during my sixmonth search.

The previous owners of the home I eventually purchased held it for only a year and a half. The difference between their purchase price and mine: 25%. Despite the small sting of that fact, every day I am grateful to be out of the housing storm. My home feels like a haven from financial uncertainty.

Surprisingly, the mere five years of living here makes me more of an old hat than most of the young professionals I meet here. I’ve watched Denver change so much in so little time. Every day, a new building is built. Every day a new restaurant opens. Those darn Millennials indeed. s Krista Flynt is the Communications Coordinator for the COCPA. Her Denversary is Feb. 1.

July/August 2015 • www.cocpa.org •

19

2015 COCPA Golf Tournament

COCPA Chair Steve Corder (far right) and his team mates (from left) Bob Cloud, former COCPA president Tom Kundinger, and Wally Rush took first place in the scramble-format tournament at Lakewood Country Club, June 1. Proceeds benefitted Food For Thought, www.foodforthoughtdenver.org.

Security | Continued from 18 tools against your network. The vendor needs to look at your company holistically, and understand that you need a mobile, secure workforce. This is vital especially if and when your employees are working in the field. The end game here is to take a risk-based approach to your systems and processes instead of just thinking of them as stand-alone components that do not integrate with the rest of your organization.

For examples of control frameworks, check out ISO 27,000 Standards and the COSO (Committee on Sponsoring

20

• NewsAccount • July/August 2015

Organizations) framework. Or, you can do a simple search for information security controls and choose one that fits your firm.

6. Don’t Forget About Physical Security Protecting your firm from a data breach isn’t just about systems and processes. It’s also about leaving that data exposed outside of an electronic system. While you may have gone paperless in some areas thanks to cloud-based storage, those four-drawer metal file cabinets hanging around in your storeroom are totally exposed. Take an inventory of exactly where you are vulnerable, and begin to create practical policies around

physical security. No one is saying to completely ditch the file cabinets, but you could do something as simple as locking them or storing your files in a secure location offsite.

Secure Everything Security is no longer just about guards, cameras, and blindly hoping your data and files are safe. You must pay attention, do your research, and seek help from professionals. After all, a data breach can make or break your life’s work. s Tom Parker is chief information officer for Avalara. Contact him at tom.parker@avalara.com.

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Practices for Sale, Purchase, or Merger Local experienced CPA is seeking a firm to purchase or join with equity position. Have extensive experience with numerous tax preparation packages, software implementation, diverse industries, controllership, compilations, and reviews. Prefer Jefferson County but very open to any location. An80215@yahoo.com.

Fred Mehring, Select Business Group, Inc., specializes in the sale, merger, and acquisition of accounting and tax practices. Over 25 years of experience. Confidentiality stressed! Call Fred Mehring at 303-771-3100, fax 303-477-6010, or fmehring@selectbg.com.

CPA firms or partners. We represent a number of quality CPA firms which are looking to merge, acquire, or sell their practices to other CPA firms or partners with business. Locations are in the Denver area.This is an opportunity to ensure your future as well as help your clients by expanding your services to them. Why settle when you can select? Established in 1939. For further information, please contact: Phil Rubeck at D&R Associates of Colo., 720-4467020, or email: dandrassociatesofco@aol.com.

In Memoriam We regret the loss of the following COCPA member. We extend our sympathy to her family, colleagues, and friends.

Kelli J. Lightsey Member since 1998 Fleming, Colo.

July/August 2015 • www.cocpa.org •

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Colorado Society of Certified Public Accountants 7887 E. Belleview Ave., Suite 200 Englewood, CO 80111-6076

Periodicals Postage

Personal Financial Planning Conference August 20, 2015 • COCPA

2015 Women's Summit Strategies for the Successful Woman CPA August 21, 2015 • The Art Hotel, Denver

2015 Technology Conference August 27-28, 2015 • Hilton Garden Inn-DTC, Denver

Register online at www.cocpa.org