COCPA NewsAccount - 2016 - September/October Issue

NewsAccount September/October 2016 Colorado Society of CPAs

ColoradoCare Unsustainable PAGE 6

$100,000 in Scholarships Awarded PAGE 14

Filing Season: Past, Present, and Future PAGE 18

Contents Features Ommmmm‌Meet Michelle Kooi, CPA, Yogi

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Accounting and yoga. Not something you’d naturally pair together like yin and yang. But COCPA member Michelle Kooi, CPA, CYT, CHC, found they not only go together, but they also make life a lot better.

Study Finds ColoradoCare Unsustainable Update on Amendment 69, ColoradoCare, which would amend the Colorado Constitution to create a new health care system for Colorado. The COCPA Board urges you to vote NO.

Celebrating a Decade of Service What is now the COCPA Financial Literacy Committee began as a simple task force and a few ideas.

$100,000 in Accounting Scholarships Awarded The trustees of the Educational Foundation of the COCPA selected 40 Colorado accounting students to receive scholarships this year.

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Filing Season: Past, Present, and Future

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PCPS: The Acronym for Public Practice Success

The Colorado Department of Revenue shares data from the 2016 filing season and news of coming changes.

Stay on the leading edge of changes within the profession with a valuable resource from the AICPA.

Departments

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Chair Column Movers & Shakers and In Memoriam

ON THE COVER: View of the Flatirons from Coot Lake, Boulder, Colo.

Chair Column

NewsAccount A bi-monthly publication of the Colorado Society of Certified Public Accountants Vol. 62, No. 3 September | October 2016

2016 Chair Tour: What's on Your Mind?

BY MARK SOLOMON, CPA, CGMA

and Pueblo. By the time you read this column, I’ll have visited Aspen, Grand Junction, Montrose, Durango, Alamosa, and Sterling, too.

Board of Directors Mark T. Solomon, Chair Tawnya Y. Ramirez, Vice Chair Benjamin T. Hrouda, Treasurer Steve R. Corder, Immediate Past Chair Mary E. Medley, Secretary

A recurring theme in our profession and one that frequently comes up on Chair Tour stops is the difficulty in finding and retaining talent. Firm partners commented again this year that it’s hard to find people and keep their staffs fully loaded.

Directors Christine Benero, Ann E. Hinkins, Gregory P. Osborn, Christopher J. Telli, Dan W. Soukup, Karen F. Turner Editorial Board Jack Allgood, Alan D. Bennett, Kay R. Dragon, Peggy Jennings, Georgia Z. Phillips, Lori Anne Reinwald, Laura J. Theiss, Barbara J. Tedesko, R. Stephen Van Meter, Michael D. West, Charlie Wright Mary E. Medley, President/CEO Natalie G. Rooney, Contributing Writer Blue Ocean Ideas, Design 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 Englewood, 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 NewsAccount is available online at www.cocpa.org.

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f you joined us in June at the COCPA Leadership Council, Making Sense of a Changing & Complex World: The Anticipatory CPA and Organization, you came away with a lot of great information about the future of the profession, enjoyed the opportunity to network with your peers, and probably were left with one burning question: Just how old was that kid who gave the brilliant overview of our economy complete with predictions on what CPAs need to be thinking about to navigate a rapidly changing world?

That kid – otherwise known as Connor Lokar, an economist with ITR Economics of Manchester, NH – never actually revealed his age, which left all of us guessing. Of course, his age doesn’t matter.

He delivered a humor-filled, datarich session on the local environment, the national political scene, and the global stage which was interesting to hear. Several points from Lokar’s presentation have stayed on my mind.

At press time, I’d had the opportunity to speak with COCPA members at Chair Tour events in Boulder/Longmont, Colorado Springs, Loveland/Fort Collins,

• NewsAccount • September/October 2016

These comments took me back to Leadership Council and a conversation I had with Lokar about how kids today are coming out of college loaded with debt and unable to find jobs. In his presentation, Lokar spoke about the need for CPAs and the shortage of skilled labor. This seemed incongruous to me: people can’t find jobs, but we need people.

Where is the disconnect?

Lokar spoke to the point that “what you study matters” and the importance of “choosing something that’s useful.”

It also speaks to the point of looking at your education as an investment that will provide a certain rate of return. As a culture, we push college. Statistics still show that those who have a college degree out-earn those who don’t have one.

Non-CPAs may not find an accounting degree exciting, but they’re unlikely to find an accounting graduate flipping burgers. With one of the highest starting salaries, our accounting graduates are in high demand because they are the best and the brightest. We are fortunate to have bright, hardworking talent entering our profession – we just need more of them! I don’t have answers as to when things will ease up on the hiring front or if we’ll ever be satisfied with the number of candidates we’ve hired, but it’s clear that our profession is that “something useful” Lokar spoke of in his presentation.

Another significant area of concern among members is cybersecurity – and with good reason. Whether it’s ransomware, email fraud, phishing, or other cyber threats, cybersecurity is something we need to take seriously, both personally and professionally. We all have data systems we’re worried about. And we’re all continually hammered by data threats at our offices that ask us to wire money, open files that contain viruses, or click on links that collect our data.

While the elderly are particularly susceptible to cybercrime attempts, you’d be surprised by how many younger professionals are victims of fraud and hacking as well. One recent thwarted attempt targeted COCPA board members in the form of a fraudulent email.

Fortunately, there were some formatting and wording choices that made us realize the message wasn’t legitimate, and no one fell victim to the attempted fraud.

The Roaring Fork Chapter with COCPA Chair Mark Solomon

Another member discovered a nationwide scam when he received an email asking him to send money to be included in a “who’s who” publication for accounting professionals.

We all joke about the foreign prince who emails to ask for money or when we receive an email letting us know we’ve won millions in the lottery. But make no mistake. Today’s fraud attempts are tailored and sophisticated, and we all need to be on guard. Keep sharing your stories with the COCPA and your peers so we all can continue to put appropriate safeguards in place to protect our clients and our organizations.

I look forward to connecting with you, hearing what’s on your mind, and learning about what the COCPA can do for you as we continue to work on the COCPA’s strategic initiatives this year.

Please be in touch.

Email Mark Solomon at msolomon@sm-energy.com. s

The Western Slope Chapter with COCPA Chair Mark Solomon

From left: Boulder icons Rick Doty, chapter chair Marilynne Tarrall, Mark Solomon, and Michael Weatherwax

September/October 2016 • www.cocpa.org •

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Member Profile

Ommmmm…Meet Michelle Kooi, CPA, Yogi

BY NATALIE ROONEY

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ccounting and yoga. Not something you’d naturally pair together like yin and yang. But COCPA member Michelle Kooi, CPA, CYT, CHC, found they not only go together, but they also make life a lot better.

Michelle Kooi may not be a Colorado native by birth, but she is one in her heart.

The Arkansas native was only 10 years old when she announced to her parents that she would be attending college in Colorado.

She bonded with the Centennial State while skiing in Aspen each winter. “I fell in love with the mountains,” Kooi says. “We began skiing at Aspen when I was seven years old.

We all loved our annual family vacation.

And, I spent a month each summer at a camp in Estes Park. ” Eventually, her father purchased a condo in Telluride, and when she met her goal of attending CU Boulder, she and her friends had a great holiday and weekend retreat.

Since then, Kooi has remained in Colorado, flourishing in a career she is grateful for.

Kooi’s road to the accounting profession wasn’t as straightforward as her road to Colorado living though. Her undergraduate

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degree was in journalism with a major in advertising, and her first job was as a magazine editor. She moved on, dabbling in various industries – environmental services, telecom, travel, and publishing, working in marketing, operations, and customer service.

But the income in all of these fields left a lot to be desired. She also wanted a way to combine her passions for people, process, and promotion - and her big picture vision – with her analytical side.

It wasn’t until she had young children and was working full time that Kooi decided to return to night school and obtain another degree. She had taken accounting courses in high school and even though she had minored in economics at CU, accounting wasn’t on her radar at the time. Now, she was looking for more stability and options.

“I wanted to do something I would really enjoy,” Kooi says. She had been working for a nonprofit organization, but to get her license she made the leap to public accounting. She earned her CPA certificate in 2006 and has worked for K.Coe Isom for the past two years. The firm has a strong regional presence serving community banks,

• NewsAccount • September/October 2016

construction, real estate and development, agriculture, manufacturing, healthcare, and technology.

FINDING YOGA Kooi’s yoga transformation began with Bikram yoga, a type of hatha yoga characterized by a set series of postures and breathing exercises, performed in a very hot and humidified room. “I thought I would die the first time I attended the class,” Kooi laughs. “But I kept going back and later discovered other kinds of yoga, too.”

In 2011, she decided to go through yoga teacher training. “I never intended to teach.

I just wanted to go through the training to deepen my own practice.” But Kooi says the certification process was transformational for her. “You can’t go through yoga teacher training and come out the same person.”

Kooi completed the 200 hours for certification in just two months. “It was very intense,” she reflects. “After the first two weeks, every part of my body hurt, and I thought, ‘I’m too old for this! What have I done?’” But she persisted with her training

class made up of people from all ages and walks of life. “I loved learning about the history and different branches of yoga, anatomy, and just doing a lot of yoga.” The training required her to learn sequences and postures and how they affect the body.

“I’m an analytical person, and I’m in my head a lot,” Kooi says. “Yoga helps me get out of my head and make decisions from my gut. That ability deepened immensely.”

Always an active person who ate well and took care of herself, Kooi says she also was surprised at how yoga took her fitness to a new level. Her practice, along with dietary changes, helped her finally cure the chronic fatigue syndrome she’d struggled with for decades. “I’d be so tired I’d have to nap on the floor of my office to get through the afternoon,” she says.

Kooi says yoga helps her manage the stress that can come with a career in public accounting, especially during tax season.

“Yoga helps me remember to take a break and breathe,” she explains. “The breathing is the hardest part. I can do crazy handstands and balances, but the breathing portion is the hardest. A lot of anxiety can happen if you’re only breathing in the upper half of your lungs. Yoga teaches you to use your whole lungs, bringing your breath into your diaphragm.”

Feeling anxious before a client meeting or during a busy time? Kooi says stop. Take a deep breath. Take the opportunity to get away and have some quiet time. “We get overstimulated with a lot of noise,” she explains. “Take a break, take a walk outside, take some deep breaths, and then come back inside and be more productive.”

YOGA FOR EVERY BODY Yoga is for all ages and all fitness levels, Kooi emphasizes. While classes like power yoga can be challenging, classes for beginners are readily available as well. Kooi’s favorite class to teach is power yoga. She has taught in yoga studios, gyms, an apartment clubhouse, and privately.

She also taught corporate yoga in Greeley after

a company hired her to teach employees on site as part of its wellness program.

investment in your people that will pay off for both of you.”

“I always start and end my classes with a meditation, to calm and center people,” Kooi says. “I want people to walk away with an experience, not just a workout. I use essential oils. I read stories, poems, or just share some of my own journey.”

PURSUING HER PASSIONS Kooi has a few other passions as well, including nutrition. She went through the Institute of Integrative Nutrition’s rigorous certification program to become a Certified Health Coach and is working on a cookbook. She also is Reiki Level II certified.

Reiki is a healing technique based on the principle that the therapist can channel energy into the patient by means of touch, to activate the natural healing processes of the patient's body and restore physical and emotional well-being.

As a recently engaged mom of two – her daughter just left for her first year of college and her son already is a student at CU Boulder – Kooi is experiencing major life changes that yoga is helping her through.

She starts every day by meditating.

“Everyone should do yoga! I’m that passionate about it,” she laughs. “It’s very grounding. It’s so easy to get caught up in the chaos whether it’s Brexit, the stock market, work, or every other thing going on in life.

Whether you do yoga during the day or at night, practice power yoga or restorative, it doesn’t matter. It really connects you more to yourself, helps you be more centered and more balanced which affects your life as an employee, employer, parent, spouse, friend – whatever. You’ll be more conscious of your environment. You’ll morph.”

Kooi is right on target with her enthusiasm for the practice. Studies show that corporate yoga programs produce many benefits including happier, more productive employees; a decline in stress-related sick occurrences; better customer service; and improved employee alertness and ability to react more calmly in demanding situations.

“Any business that would offer a wellness program, especially one that includes yoga as an employee benefit, is doing itself and the employees a great service,” Kooi says.

“Everyone will reap much more than he or she puts into it.”

“Yoga creates awareness. Awareness leads to engagement. Engagement leads to change.

Change leads to amazing things,” Kooi says. “People naturally fear change, but often what we fear is imagined. Making a difference in the world starts with making a difference in yourself. If we are grounded, we have a better chance to make those changes in ourselves and help others.”

Yoga also is about being present. “Often, we are living in the past or the future. Being present at work, in conversations, with clients or coworkers, is so important,” Kooi says. “People can feel if you are not present, and it makes them feel unimportant. I think that is one of the most important things yoga can teach us.”

Try it right now. Close your eyes. Take a deep breath into the bottom of your lungs.

Let it go. Do it again. Now, go kick some butt in that meeting. Namaste. s

Kooi is an active member of the wellness committee at her firm and strongly encourages all professional services firms to incorporate a wellness program as part of their employee benefits package. “It is an September/October 2016 • www.cocpa.org •

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On the Ballot

Study Finds ColoradoCare Unsustainable

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n Aug. 8, 2016, the Colorado Health Institute (CHI), a nonpartisan health policy research institute, released the second in its series of research briefs on Amendment 69/ColoradoCare. The first brief, released in April 2016, provided a basic understanding of the amendment’s provisions. The second brief focused on the financial viability of ColoradoCare over time.

The conclusion: “CHI’s analysis shows that ColoradoCare proponents have identified a way to achieve universal health coverage in Colorado without increasing health spending in the economy. ...However, CHI projects that ColoradoCare, as it is currently envisioned by Amendment 69, would lack the revenue needed to sustain itself. Our projections show ColoradoCare is likely to post a small deficit in its first year, and the deficit would grow annually over the next decade.”

CHI analyzed more than 50 different variables impacting financing and estimated best-case, worst-case, and most likely scenarios based upon differing assumptions for each variable. In addition, CHI examined six factors it believes have the most influence over ColoradoCare’s finances: administrative costs; use of health care; federal funds; out-of-pocket costs; participation rate; and future tax revenue. It also looked at other notable factors such as fraud reduction; bulk purchase savings; and capital reserves. To read the report, go to: CHIreport.cocpa.org.

KEY FINDINGS

in the first year of operation (assumed to be 2019) with a growing deficit each subsequent year. After 10 years, the deficit is projected to be $7.8 billion.

• Under the most likely scenario, the ColoradoCare board would be forced to reduce benefits, cut payments to providers, raise taxes, seek additional federal funds, or shut down ColoradoCare. If ColoradoCare were to cease operations, CHI points out that it is unclear who/which entity would assume responsibility.

• The best-case scenario projections show a $5.5 billion surplus in the first year which would decline in each subsequent year. ColoradoCare would remain solvent over the first 10 years. The worstcase scenario projections show a first year deficit of $6.5 billion which would grow in each subsequent year. The significant variability in CHI's model underscores the risky and uncertain nature of this plan and highlights the power that will be placed into the hands of the 21-member board, responsible for making important policy decisions that would impact operations of the new entity, as well as health care for Coloradans.

ADDITIONAL POINTS • ColoradoCare would not be required to maintain a reserve fund (required of all governmental entities and health insurance companies), putting it at greater risk of financial insolvency.

• The CHI worst-case scenario shows the impact of fraud on the ColoradoCare system costing in excess of $1 billion.

YOU ASKED… Would Social Security payments and retirement income be excluded from taxation under Amendment 69?

Colorado statute exempts the first $24,000 of retirement income (including Social Security and pensions) from income taxes. Therefore, ColoradoCare taxes would not apply to this portion of retirement income. However, all retirement income over $24,000 would be subject to the 10 percent non-payroll income tax, in addition to the current Colorado income tax.

Will the 10% ColoradoCare tax be deductible for the purpose of determining federal taxes for employers and employees?

The new tax structure may be viewed by the Internal Revenue Service (IRS) and the Colorado Department of Revenue as an income tax, a “payroll tax” similar to federal tax withholdings under the Federal Insurance Contributions Act (FICA), or a health insurance premium tax. How the IRS and the Department of Revenue classify the tax will determine whether or not it is deductible for federal tax purposes. health care products sold in the national market (i.e., prescription drugs, durable medical equipment).

The COCPA Board of Directors • The most likely scenario numbers were • With 4.4m members, ColoradoCare encourages you to vote NO on Amendment 69. For details, see the July/ developed based onhappened a detailed study of COCPA would still be much smaller thanJune most 2015.

Find out what’s with the Strategy Initiatives since Learn what’s happening on the August NewsAccount, page 6, and go to empirical evidence, academic literature, national health insurance companies national and international scenes which affects and challenges you and the CPA profession. Understand what and best available models. CHI's most thus limiting negotiating power for www.coloradansforcoloradans.com. s branding is and howato$253m use it deficit successfully. Identify the hard trends which can help guide strategy. Prioritize what’s likely scenario shows

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• NewsAccount • September/October 2016

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September/October 2016 • www.cocpa.org •

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Financial Literacy

Celebrating A Decade of Service

BY NATALIE ROONEY

COCPA Financial Literacy Committee Mission Statement We develop, promote, and implement programs of financial literacy by partnering with organizations which serve individuals and families from all walks of life.

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inancial literacy is a huge problem in the U.S. Don’t believe it? Check out these statistics: • Americans spend $1.22 for every $1.00 earned. Let that sink in for a second. As a population, we spend 22 percent more than we earn.

• In 2014, the first large-scale international study of 15-year-old students' financial literacy skills showed the U.S. ranked at best eighth and at worst 12th, out of 18 countries participating.

• In 2015, a Retirement Income Literacy Survey conducted for The American College of Financial Services revealed that 80 percent of the adults surveyed received scores of 60 or lower on financial questions about retirement.

Just 20 percent received what amounted to a passing grade.

Ten years ago, the AICPA saw the writing on the wall. In response to Americans’ growing dire financial straits, the AICPA, with the support of state CPA societies, developed its award-winning 360 Degrees of Financial Literacy program. When the AICPA kicked it off, the COCPA stepped up as well, taking the task of financial literacy seriously and determined to make a difference in Coloradans’ financial health.

HUMBLE BEGINNINGS What is now the COCPA Financial Literacy Committee began as a simple task force and a few ideas, says Diane Wightman, CPA. “At the time, we thought we could work on the issue of financial literacy and then the need for it would go away,” Wightman reflects.

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“But it didn’t. It became an even bigger issue. We realized the need for financial literacy was here to stay.” The task force became a permanent committee in 2010.

Wightman became committee chair in 2009. She remains passionate about the group’s efforts. People are surprised to hear that she’s an interim CFO and doesn’t do financial planning professionally. “This is my area of passion rather than my area of focus,” she says. “I love it for many reasons.

I have five grandchildren, and I want them to know about budgets and wants versus needs. I know the more financially healthy our economy is, the healthier our country is.

Also, I’m a nerd. To me, financial literacy is an exciting topic!”

The group has multiple projects going at any one time. Some are ongoing. Some have specific start and end dates. Some efforts are simple, like helping COCPA members with materials to present to local groups such as Developing a Spending Plan or Small Change Adds Up- Offering Families a Working Knowledge of Financial Literacy, which is geared toward children. Other efforts are more in-depth, such the program provided to the Denver-based Women’s Bean Project.

The Financial Literacy Committee’s current programs and projects include: • Financially Fit Aging: For You and Your Parents, developed for CPAs to create awareness and provide informational tools for personal use and with clients.

The program covers: −− Protecting Yourself and Your Family: Putting Your Affairs in Order

• NewsAccount • September/October 2016

– Wills, important health documents, transfer of assets, how to handle digital assets, and other information on the financial issues of aging and dying −− Assisting Aging Relatives – Housing and Service Options and Understanding Payment Sources −− Elder Financial Exploitation – Who Is at Risk, Red Flags, Addressing the Problem −− Understanding Social Security Benefits – A high level review • A four-part program covering budgeting, banking, how to track spending, understanding credit, and taxes, that is presented annually at The Women’s Bean Project. Sessions fulfill participants’ employment requirements.

• A three-session seminar, Take Control of Your Finances: Plan for Your Future (Set Your Goals, Develop Your Spending Plan, Establish Your Credit and Commitment, Accountability, and Tracking) which is presented several times each year to residents at Denver’s Warren Village, a grantee of the Women’s Foundation of Colorado.

• In conjunction with Colorado Habitat for Humanity the Keeping Track of Your Family’s Financial Future workbook which is used statewide by Habitat homeowners. This program has become the backbone of programs presented to several other groups.

“We now are excited about and evaluating the opportunity to partner with Mile High United Way to present financial literacy content to United Neighborhood participants,” Wightman adds.

“While still in the early stages, we hope to add How to Evaluate a Job Offer and Filling Out Paperwork, 1st Day on the Job in 2016, which will be geared toward college students.”

Although programs are centered in the Denver metropolitan area, the committee created a toolkit available to all COCPA members. Materials can be accessed and used anytime, anywhere. Train-the-Trainer videos, at www.cocpa.org, provide encouragement and tools for first-time presenters.

The committee was receiving so many requests to develop programs that members created a Criteria for Selecting New Projects/Partners form to aid in the evaluation of new projects.

The key, Wightman says, has been to develop resources (see box, page 10), so members don’t have to recreate the wheel each time they are asked to speak at an event or want to reach out to an organization with financial literacy information. The result is a host of free, online material.

“The COCPA has an engaged membership that understands the value of financial education... Colorado’s commitment to financial literacy is a model for others.” ~Dan Bond, AICPA Senior Manager for Communications and Consumer Education GARNERING NATIONAL ATTENTION The AICPA took notice of the great things happening in Colorado. Dan Bond, AICPA Senior Manager for Communications and Consumer Education, began attending committee meetings by conference call.

He invited the group to help revise the AICPA’s Bank On It Financial Literacy Game; provide input on pending legislation; and more.

Bond brought a national perspective to committee discussions. “I am able to tell them what’s going on from a federal agency perspective such as activities in the Treasury Department and the Consumer Financial Protection Bureau, as well as what’s going on in other states,” Bond explains. “It gives them a chance to have national input and benchmark how they are doing compared with other states.”

“When I see what other states are doing with financial literacy education, Colorado is really a leader,” Bond adds. “The COCPA has an engaged membership that understands the value of financial education and how the profession needs to be a leader in this area. Colorado’s commitment is outstanding and its program serves as a model for others.

2016 CPAs MAKE A DIFFERENCE

SAVE THE DATE November 2, 2016

Grand Hyatt Downtown, Denver

Seeking Nominations for Everyday Heroes and Heroines Contact Terry Cervi for details, terry@cocpa.org, or visit heroes.cocpa.org.

SPONSORED BY:

"Unforgettable, interactive, hilarious, and inspiring" – that's what you can expect when keynote speaker Craig Zablocki once again headlines this special evening.

Bond emphasizes that CPAs are inherently looked to as experts on financial issues. “There’s a duty to take that leadership into communities, teaching all Americans how to build a lifetime of well-being,” he CONTINUED ON PAGE 10 September/October 2016 • www.cocpa.org •

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Financial Literacy CONTINUED FROM PAGE 9

says. “Thank you for your leadership and keep up the good work,” he encourages.

“It’s really great to have the kind of engagement the COCPA has when it comes to financial literacy.”

The AICPA currently is planning a 10th anniversary celebration of its Feed the Pig program, including an idea for a financial literacy scavenger hunt. Expect the COCPA Financial Literacy Committee to be involved. “It has been a great partnership with the AICPA,” Wightman says. “What we’re doing here in Colorado is on the cutting edge. COCPA members can be proud.”

MANY PROJECTS, HELP NEEDED Wightman says there are many opportunities for COCPA members to get involved in financial literacy, from a partnership with Mile High United Way to The Women’s Bean Project to a series called Financially Fit Aging. “If you have a passion for helping people do better with their money or just want to be more involved in the COCPA, we’d love to have you join us.” Wightman says.

“There are so many opportunities for members to get involved.”

Craig Arfsten, CPA, signed on to the cause in the earliest days. As a financial planner, Arfsten says he sees firsthand the importance of the work the committee does.

And some of the side benefits aren’t so bad either. Through the committee’s partnership with the Women’s Foundation of Colorado, Financial Literacy Committee members were invited to the Women’s Foundation annual luncheon. “I remember attending the luncheon my first year on the committee. I was there with Governor Hickenlooper and the 1,500 most influential women in Denver,” he laughs. “I would describe going to the luncheon as my annual trip to heaven.”

In all seriousness, Arfsten says financial literacy is more important than ever before.

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“I’ve been following financial wellness for years,” he says. “I think within the next five years, every major employer in Denver will have financial wellness added to their company benefits plans, similar to the popular health and physical wellness programs in place today. Financial wellness impacts everyone. Health and physical wellness are important, and employees’ financial health has an even greater impact - affecting 70 percent of the workforce.”

“Financial issues affect more Americans than smoking and obesity combined. Today, 20 percent of Americans smoke, and 30 percent are obese. But 70 percent of them are seriously concerned, if not seriously worried, about their finances.” ~American Psychological Association

Arfsten says being involved with the COCPA community is an excellent way to connect with a smaller group within the organization and makes COCPA membership even more enjoyable. “I look forward to our monthly meetings, and we’re having a positive impact on people’s lives outside the Society through our projects,” he says. “The committee is here to help members help others with financial literacy by providing resources.”

Former COCPA staff liaison Gail Vail, CPA, says while the group began without much structure or many ideas, members’ willingness to get involved boosted the mission and created an avenue to volunteer. They came up with easy things for CPAs to do to use

• NewsAccount • September/October 2016

their skills and promote financial literacy in their communities. “When we saw the statistics from the AICPA about how Americans spend more than they earn, we realized we really could help,” Vail says.

“The resources on the COCPA website make it easy for members to go out into their communities without having to do a lot of prep work.”

And it certainly doesn’t hurt that the Financial Literacy Committee meetings are a lot of fun. Vail says many of the committee members have been participating since its inception. “Everyone really enjoys getting together,” she says.

Ready to get involved? Your COCPA Financial Literacy Committee needs you, and there’s no experience required – except willingness to make a difference.

FINANCIAL LITERACY RESOURCES AT YOUR FINGERTIPS Want to learn more about the COCPA Financial Literacy Committee and the resources available to you as a COCPA member? Visit http://www.cocpa.org/ wcm/Member_Communities/Fin_ Lit/wcm/_MemberCommunities/ FinLit/FinLit.aspx?hkey=68a64540c9dc-4a95-88cd-587eb0a00538.

Want to help spread the word and educate Coloradans for a strong financial future? To volunteer, contact Mary E. Medley at mary@cocpa.org.

Also visit: 360 Degrees of Financial Literacy, http://www.360financialliteracy.org/ Feed the Pig, http://www.feedthepig. org/ s

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But we think institutional investors shouldn’t be the only ones to benefit from written investment policy statements, transparent portfolio management costs, avoidance of conflicts of interest and a comprehensive investment monitoring process. That’s why, at M.J. Smith and Associates, we treat individuals the same way we treat institutions – with honesty, integrity, objectivity, and a clear, understandable process.

Whether the portfolio is simple or sophisticated, every investor needs a trustworthy advisor. And it’s our pleasure and privilege to be of service.

We specialize in: · Providing low-cost and tax-efficient investment platforms · Integrating tax reduction strategies into clients’ overall financial pictures* · Minimizing the risk of poor investment decisions through providing our clients in-depth education · Serving women in transition (death, divorce, retirement, etc.) · Preparing the next generation to be good stewards of wealth

BARRON’S: February 2016 In 2014 and 2015 M.J. Smith and Associates was named in the top 1% of all advisors in the United States. The firm has earned Barrons recognition annually since 2007 in top independent advisor lists for the state of Colorado and Barron’s America’s top Advisor list.

Factors included in award ranking: assets under management, revenue produced for the firm, regulatory record, quality of practice and philanthropic work.

FINANCIAL TIMES: April 2013 & 2014 Named to the list of the Top 400 Financial Advisors in the U.S. Award selection based on assets under management, asset growth, compliance record, experience, credentials and accessibility.

M.J. Smith & Associates is an independent registered investment advisor. Securities offered through RAYMOND JAMES FINANCIAL SERVICES, INC. member FINRA/SIPC. *Raymond James financial advisors do not provide tax advice. You should discuss any tax matters with the appropriate professional.

5613 DTC Parkway, Suite 650, Greenwood Village, CO 80111 | 303.768.0007 | www.mj-smith.com

Not-for-Profit Accounting and Auditing

AICPA NFP Conference: A Do-Not-Miss

BY LORI ANNE REINWALD, CPA

E

very summer, I look forward to my annual trip to a very muggy Washington, DC to hear from the best of the best in not-for-profit accounting and auditing. The introduction is always the most amazing part. I look around at the thousands of attendees, thinking how cool it is that so many of us are interested in the world of notfor-profit accounting. (My fourteen year-old daughter would just roll her eyes!) However, the real results of the conference are what I share with my colleagues and clients. A few of the highlights follow.

There was a lot of discussion of millennial CPAs and how their use of technology can help us provide efficiencies and quality to our processes. Many of the sessions I attended acknowledged that millennials have a very different way of doing and seeing things and how the leaders in our organizations need to listen and use their knowledge to our advantage. I frequently was reminded that the way we of older generations look at millennials today is probably similar to how we were viewed by leaders in our field when we first began our careers.

As expected, the GAAP update for notfor-profit financial statements was a key part of the conference with Phase I of this Accounting Standards Update (ASU) expected to be released in the third quarter of 2016. Phase I focuses on presentation and disclosure of net asset classes, improved disclosure on liquidity and availability of financial resources, better information on expenses and the allocation of expenses, and net presentation of investment return. The presenters emphasized that the examples provided in the guidance will show the minimum requirements, and an increase in disclosure on the face of the financial statements is preferred to putting more detail in the footnotes.

Cybersecurity and IT controls were covered in several sessions all on their own and were woven into other sessions as integral parts of not-for-profit accounting systems. There were many discussions on the importance of considering IT controls during audits and including cybersecurity as part of an organization’s review of risk. Presenters reminded auditors of the importance of knowing what we don’t know and that there are going to be times when a specialist will be required for us to properly understand the controls over IT transactions.

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Single Audits and the implementation of the new uniform grant guidance audit requirements also was a top discussion item. Several presenters recommended

• NewsAccount • September/October 2016

organizations use Google searches to find government procurement policies as a basis for developing written procurement procedures before the new procurement rules are required for next year. The new Schedule of Expenditures of Federal Awards was discussed with the changes in the requirement of loans, noncash assistance, and subrecipients being shown on the face of the Schedule, rather than in the notes.

Regarding the new audit requirements, the importance of not assessing more type B programs than is required was stressed. Only one-fourth of all low-risk type A programs are required to be assessed. If the auditor mistakenly selects more than are required and those type B programs are considered high risk, they are required to be audited.

So many more topics on tax issues and management of not-for-profits from risk management to fundraising were covered, as well. I can’t begin to cover them all. I’m excited to use the information I’ve gained in my practice through the coming year, and I look forward to reconvening in DC again next June. Perhaps you'll attend too. s Lori Anne Reinwald, CPA, is a director with Kundinger, Corder & Engle, P.C., Denver.

Contact her at lreinwald@kcedenver.com.

Financial Reporting

Reporting Deferred Taxes on a Classified Balance Sheet

BY BRANDON T. POWERS, CPA

A

s part of its Simplification Initiative aimed at reducing complexity in accounting standards, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU or Update) 2015-17, Balance Sheet Classification of Deferred Taxes, on Nov. 20, 2015. The new guidance under ASU 201517, Income Taxes (ASC Topic 740) requires all deferred tax assets and liabilities, along with any related valuation allowance, to be classified as noncurrent on the balance sheet.

The Update applies to all entities that present a classified statement of financial position, and results in the conformity of U.S. GAAP with IFRS principles, since International Accounting Standard (IAS) 12 on income taxes also requires noncurrent presentation of all deferred income taxes.

Prior to applying the amendments issued under ASU 2015-17, current accounting guidance requires deferred tax assets and liabilities for each jurisdiction to be reported as a net current asset or liability

and net noncurrent asset or liability on the entity's balance sheet. Deferred tax amounts are analyzed by jurisdiction and classified based upon the underlying asset or liability to which the book-to-tax temporary difference relates or classified based on their expected tax return utilization period, in the case of net operating losses and other credit carryforwards.

After hearing from stakeholders that the requirement to present deferred tax assets and liabilities as current and noncurrent in the balance sheet provides limited benefit to financial statement users, the FASB issued ASU 2015-17 in an attempt to simplify presentation without diminishing the usefulness of information reported.

Stakeholders argued that the complexity and cost of complying were not justified because the classification of deferred tax amounts does not always align with their recoverability or utilization periods.

For public business entities, the amendments under ASU 2015-17 are effective for periods beginning after Dec. 15, 2016, and for all other entities for annual periods beginning after Dec. 15, 2017. The guidance may be applied either prospectively or retrospectively (i.e. by reclassifying the comparative balance sheet), and early adoption is permitted to any interim or annual period.

Companies should consider early adoption if the change in presentation results in significant cost savings and would benefit users of their financial statements. However, companies need to be aware of the resulting impact on working capital, and determine whether the change in balance sheet presentation would have adverse implications on financial statement measures used for various business purposes, including loan covenants. s Brandon T. Powers, CPA is a Tax Director with Anton Collins Mitchell, LLP, Denver.

Contact him at bpowers@acmllp.com.

Save the date for the 2016 Colorado Gives Day. December 6, 2016 Thanks to the generosity of the following donors, your gift to the Educational Foundation of the COCPA can be matched: • • • •

Anton Collins Mitchell LLP EKS&H LLLP Hein & Associates LLP Mark J. Smith Family Foundation

LEARN MORE: edfoundationgiving.cocpa.org.

September/October 2016 • www.cocpa.org •

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Educational Foundation

$100,000 in Scholarships Awarded to Colorado Accounting Students

T

hanks to the generosity of those in the Colorado CPA profession, $100,000 in accounting scholarships was awarded for the Fall 2016 school term, a new milestone.

Juniors, seniors, and graduate students from 14 Colorado colleges and universities applied for Educational Foundation scholarships, comprising the most competitive group of candidates yet. In addition, three donors who made $5,000 matching gifts EDUCATIONAL FOUNDATION OF THE COCPA 2016 – 2017 Board of Trustees Kristine Brands, CMA, President Regis University, Colorado Springs Matthew O. Rolland, CPA, Vice-President Hein & Associates LLP, Denver Diego J. Baca, CPA, Treasurer Ernst & Young LLP, Denver William C. Sanden, CPA, Past President SSA PC, Colorado Springs Toby D. Clary, CPA Soukup Bush & Associates, Fort Collins Audra Dixon, CPA Anton Collins Mitchell LLP, Denver Stephanie E. Hernandez KPMG LLP, Baltimore, MD Amy E. King, CPA RubinBrown LLP, Denver Sharon S. Lassar, PhD University of Denver, Denver G. Suzanne Lay, CPA Colorado Mesa University, Grand Junction Allen W. McConnell, CPA University of Northern Colorado, Greeley Mary E. Medley Colorado Society of CPAs, Englewood Carol J. Cameron, CPA, CGMA, Executive Director Colorado Society of CPAs, Englewood

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on Colorado Gives Day in 2015 received the privilege of naming a scholarship in 2016. Donor Kundinger Corder & Engle chose to honor its former Managing Director, and Past President of the Colorado Society of CPAs, Thomas J. Kundinger, with a named scholarship.

Matching donors Soukup Bush & Associates and Mark J. Smith also had scholarships named for them.

This year 40 Colorado accounting students, or 71% of eligible applicants, were selected by the trustees of the Foundation to receive a $2,500 scholarship. Congratulations to these deserving recipients:

Anton Collins Mitchell LLP Scholarship – Eric Hauptman, University of Colorado Boulder

KPMG LLP Scholarship – Gabriel Brull, Colorado State University Mark J. Smith Scholarships – Renea Bonnell, University of Denver; Shannon Dale, Regis University; Kelly McIlvride, University of Colorado Denver Otto and Betty Butterly Scholarship – Snezhanna Singleton, Metropolitan State University of Denver Past Presidents Scholarship – Kathleen Hale, University of Denver PricewaterhouseCoopers LLP Scholarship – Tanner Bedsaul, University of Northern Colorado Soukup Bush & Associates Scholarship – Rachel Hall, Colorado State University

Crowe GHP Horwath P.C. Scholarship – Spencer Adleman, Colorado Mesa University

Thomas J. Kundinger Scholarship – Logan Bohlender, University of Denver

Eide Bailly LLP Scholarship – Zach Yarnell, Colorado State University

General Scholarships – Andrew Borowick, University of Colorado Boulder; Ryan Bryner, University of Colorado Colorado Springs; Wesley Clayton, University of Colorado Denver; Erin Cook, University of Denver; Matthew Dalton, University of Denver; Peter Davis, Colorado Mesa University; Nicholas Dubberly, University of Northern Colorado; Leah Frink, Colorado Mountain College; Norberto Garcia, Regis University; Tyler Gastineau, Regis University; Brenna Kroeker, Colorado Mesa University; Brendon Marek, University of Colorado Denver; Brittany McKinley, Metropolitan State University of Denver; Carmen Moore, University of Colorado Colorado Springs; Melanie Morgan, Adams State University; Chi Nguyen-George, University of Colorado Colorado Springs; Nallely Saenz, Adams State University; Clayton Sugg, University of Denver; Jessica Taylor, Colorado Mesa University; Mackenzie Wilcop, University of Colorado Denver. s

EKS&H LLLP Scholarships – Derek Christensen, University of Denver; Taylor Crowther, University of Denver; Kim Tinnell, University of Colorado Denver; Olivia Wiss, University of Denver Ernst & Young LLP Scholarship – Anthony Hammond, Colorado Mesa University Gordon Scheer Scholarship – Michelle Ellison, University of Northern Colorado Hein & Associates LLP Scholarship – Diana Jakobitz, University of Northern Colorado Hugh C. Braly Scholarship – Benjamin Bulow, University of Denver

• NewsAccount • September/October 2016

F O U N D E D I N PROMOTE ACCOUNTING EDUCATION

1958 in order to

IN COLORADO AND SUPPORT INDIVIDUALS and institutions engaged in its study and teaching.

$1,500,000.00 GIVEN IN 2016

scholarships

THAT MEANS

40

of

$32,405 $29,300 $9,410 $8,351

Average cost of private college tuition Average cost of public college tuition

$785 $169 1960

$1,809 $427 1970

$3,811 $840

$19,307 $3,768

$55,000

$10,348 $2,035

$35,000 $1 8,000 $1 0,000 $800

1980

$95,000

Scholarship dollars awarded by the Ed Foundation

1990

2000

2010

2015

1 96 0

$4,000 1 970

1 980

1 990

2000

201 0

2015

5,568% SUPPORT THE NEXT GENERATION OF CPAS. For more information, visit edfoundationgiving.cocpa.org.

WHERE CAN AN AICPA C REDENTIAL TAKE YOUR CAREER NEXT? If you have a specialized interest, you can build on the value you offer clients by adding an AICPA

advisory service credential: Personal Financial Specialist (PFS ), Accredited in Business Valuation (ABV ), Certified in Financial Forensics (CFF ) or Certified Information Technology Professional (CITP ). ™

®

®

®

These credentials were developed for the profession by the profession. They set you apart, make a statement and get you noticed. And, they can seriously boost your career.

Explore your opportunities at aicpa.org/aicpacredentials.

2016-2017 COCPA Chair of the Board Mark Solomon, CPA, CGMA, began his Chair Tour visits in the Northern Chapter on May 11, 2016, in Loveland, Colo.

CPAs I N Industry CONFERENCE OCTOBER 26, 2016 Inverness Hotel and Conference Center or Webcast TOPICS AND SPEAKERS: Tommy Spaulding, New York Times & Wall Street Journal Bestselling Author, Spaulding Companies Corp.

Economic Update Rich Wobbekind, Leeds School of Business, University of Colorado at Boulder

Accounting and Auditing Update Brian Schilb, KPMG LLP Evolving Threat Landscape and the Golden Age of CyberCrime Grayson Milbourne, WebRoot Doing Business in a Global Economy Scott McLagan, University of Denver

Microbrewery – Doing Business in a Fast Growing Industry John Winter, founder, Lone Tree Brewing Company The Dashboard Effect: Transforming Your Company Virtually Overnight with the Data-Driven Business Model Jon Thompson, Blue Margin, Inc.

Register at industryCPAs.cocpa.org.

Beer tasting to follow

CDOR Update

Filing Season Past, Present, Future: How It Went and What’s Ahead

E

very few months, the COCPA/CDOR (Colorado Department of Revenue) Joint Task Force gathers to discuss issues, identify problems for resolution, and provide feedback on proposed changes.

At its July 2016 meeting, CDOR Deputy Director of Taxation Paul Northrup shared the following data from the 2016 filing season and news of coming changes.

• Jan. 1 through mid-July, 2016, the practitioners only helpline (303-2322419) wait time averaged 3:54 minutes.

The call center handled 13,000 calls – about 100 a day.

• 1,855,614 refunds were issued – 360,000 more than last year – a 24% increase, mostly related to the TABOR refund and the Colorado Earned Income Tax Credit (EITC).

• 2,536,208 returns were processed – 110,000 more than last year, a 4.6% increase.

• 70,000 taxpayers paid the Colorado Consumer Use Tax through the 2015 Form 104 – bringing in $2.5M in tax revenue.

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• 350,000 paper returns received annually.

still

are

• For the first time, both income tax and sales tax returns are over 80% filed electronically.

For 2016 returns, the Consumer Use Tax will be on a new, separate schedule, as will voluntary contributions to the nonprofit organizations which now appear on the Colorado Form 104. The TABOR credit will not appear on the 2016 form as it will not be a “TABOR year,” and 2017 may not be a TABOR year either. The Earned Income Tax Credit is now permanent so it will appear on the Form 104.

Coming: 2D bar coding will be added for the Form 104 and its related forms that are printed out of software products.

The bar code will not, initially, be included on other forms such as corporate forms. The CDOR will work with software vendors to implement 2D, focusing on the larger vendors first for the largest impact.

Note that if a change to a return is made

• NewsAccount • September/October 2016

manually, the bar code won’t capture the change.

Returns which are hand-prepared will continue to be scanned using optical character recognition (OCR) software.

Additional sales-tax-related forms will be added to Revenue Online. Ten are coming

by Dec. 31, 2016, with approximately 50 forms to be added over the next several years.

Sales tax license renewal, required every two years, is a top priority – understandable when considering that Colorado issues over 200,000 sales tax licenses.

The next task force meeting will be held, Oct. 19, 2016. If you’d like to participate, contact Mary E. Medley at mary@cocpa.org. If you need assistance with a specific client matter, email Medley the taxpayer name, the Colorado Account Number or last four digits of the SSN, and a brief description of the issue(s). Note whether you have a POA on file. Attach a .pdf of any recent notice. She will forward your email to the COCPA’s contact for resolution. s

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Practice Management

PCPS: The Acronym for Public Practice Success

A

key aspect of maintaining firm success is staying on the leading edge of changes within the profession. Yet, balancing all the changes with the priorities of running a practice can be challenging. One valuable resource is the AICPA’s Private Companies Practice Section (PCPS).

A firm-based add-on membership section within the AICPA which provides a comprehensive suite of practice management resources, PCPS is the strategic service center for your firm. The tools, networking, and idea sharing can help you and your colleagues address changing trends in the profession, plan for the future, and run more smoothly.

The resource centers available through PCPS include: • Strategy & Planning • Practice Growth & Client Service • Human Capital (Human Resources) • Technical (Quality & Services Delivery) • Financial & Admin Operations These easy to use, turnkey resources are designed by CPAs and experts in firm prac-

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tice management for firms of all sizes. You can download and put them to work immediately – no more recreating the wheel.

Within PCPS, you’ll find: • Customizable policies and templates • Fillable checklists • PowerPoint training templates • Monthly publications • Networking opportunities • Event discounts Also, the latest PCPS Top Issues Survey provides a look at the hot issues by firm size and directs you to resources to address them. In addition, the PCPS/CPA.com National MAP Survey offers a comprehensive overview of CPA firms’ management practices and provides in-depth benchmarking data you can use to develop a plan for shifting your firm to the next level. PCPS members receive free access to the comprehensive national and regional data.

Each month, PCPS offers one of its tools free of charge through the Colorado Society of CPAs website, www.cocpa.org. A recent resource is a part of a larger toolkit PCPS developed as a component of the AICPA’s

• NewsAccount • September/October 2016

Enhancing Audit Quality (EAQ) initiative which addresses quality challenges on a holistic, ongoing basis with the goal of improving audit performance. The PCPS Invigorate the Focus on Quality toolkit is packed with resources to help your firm drive profitable, high quality engagements.

A key component of the toolkit is a section containing proposal and profitability tools, designed to help • firms stress their commitment to quality during the proposal process • prospective clients evaluate firms based on quality service delivery, rather than just price.

Explore this and other pricing and profitability resources in the toolkit to ensure your firm showcases its commitment to providing quality services and to remind potential clients that low cost should not overshadow value and audit quality.

To put PCPS resources to work for you today, join for only $35 per CPA/$700 maximum annually. Everyone in your firm gains access to the resources. If you’d like a closer look, send a note to PCPS at pcps@aicpa.org to schedule your personalized tour. s

WHAT’S BETTER THAN COVERAGE AGAINST CYBER ATTACKS AND DATA BREACHES?

KNOWING HOW TO MINIMIZE THE RISKS. Your clients trust you to keep their confidential data safe.

At CAMICO®, we know the risks because we’re CPAs ourselves. That’s why we introduced CyberCPASM as part of our CPA Professional Liability Insurance coverage. You’re not only protected in the event of an attack or breach, you also have access to risk management tools and resources to help minimize the risks. Including breach response services such as client notification, credit monitoring and identity theft assistance. Protecting CPAs—that’s been the CAMICO tradition for 30 years.

What every CPA needs to know about cyber security.

How to safeguard information, increase awareness of cyber risk, and protect your clients. www.camico.com/cyber-cpa

Accountants Professional Liability Insurance may be underwritten by CAMICO Mutual Insurance Company or through CAMICO Insurance Services by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. ©CAMICO Services, Inc., dba CAMICO Insurance Services. All Rights Reserved.

CAMICO is sponsored by

CAMICO Bridget Briggs Account Executive T: 800.652.1772 Ext. 6710 E: bbriggs@camico.com W: www.camico.com

Member Benefit

New Season Pass Changes Approach to CPE COCPA Member Heidi Van Law's Experience

W

hen Heidi Van Law started working as the CFO at the Caring for Colorado Foundation, it was after having years of experience — and many additional years being out of the workforce.

When she returned to the workforce, Van Law joined the small team at the Caring for Colorado Foundation, a grantmaking organization with offices in Denver and Pueblo.

Van Law started her career with an eight-year stint at a large public accounting firm and then worked for a smaller firm specializing in non-profit work.

Kids. Four of them.

According to its website, the Foundation is “dedicated to improving the health and health care of the people of Colorado… committed to improving health systems, focusing on population health and prevention, and working to solve the most pressing health needs of vulnerable and underserved populations in the state.”

Heidi spent the next years of her life in dedicated service to her young and growing family.

“It’s a great place to work,” Van Law explains.

“It’s a small organization. It’s a service environment. We care for those in need.”

Later, like any good CPA, the first thing Van Law did when returning to the workforce years later was to renew her license.

Van Law’s involvement with COCPA has grown recently, too. In her public accounting days, Van Law was not very involved with the Society, although she did teach a course for members.

Then, everything changed.

“And I re-joined COCPA, too,” Van Law says. “I wanted to stay up to date on CPE, issues, and trends in the profession.”

It’s easy to believe that years away from any craft could completely diminish your skill in that area. But that would not prove to be the case for Van Law.

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More recently, the greatest benefit COCPA gave to Van Law is access to CPE opportunities and professional news via NewsAccount magazine and the NewsQuick weekly email newsletter.

• NewsAccount • September/October 2016

In the last couple of months, Van Law’s approach to continuing education has changed. That’s because she’s one of the first to buy COCPA’s Season Pass, a new bundle of CPE programs offered for one deeply discounted price.

“Until Season Pass, I used various CPE providers. The hardest part for me is finding relevant topics, working in the non-profit field,” Van Law reflected. Not only is she now able to find relevant topics, but also “COCPA now has enough courses to cover my CPE requirement.”

What’s included? Group study programs live in-person in Denver, chapter-based seminars, conferences, and live streamingwebcasts. “There is no easier or better way to buy CPE as a CPA in Colorado.

The cost of Season Pass makes it a

no-brainer. And it’s the variety of courses we’re able to include that really makes this work,” says CPE Director Rebecca Campbell.

the cost savings involved. It’s just practical. I can sign up for the class and not have to go through expense reimbursement.”

Season Pass is offered in tiers of 24, 40, 80, or 120 CPE hours, each of which costs 23% less than the already-reduced member price for CPE.

What’s next for Van Law? In a few years, she’ll enter the “empty nest” phase of her life when she wants to give special effort in community projects.

Van Law likes the new option for purchasing her CPE. “COCPA has enough courses for my interest and the ease of having a Season Pass prompted me to do most if not all of my CPE through the Society.”

In the meantime, though, Van Law plans to spend her free time cycling, her decadeslong hobby. And, she says, maybe get a CPA cycling group together.

Also, it makes finding CPE easy, she says. “I don’t want to waste time researching what courses to take to meet my CPE requirement.

The biggest part of CPE for me is to stay up to date on latest issues and trends. I also like

ONE FEE. HOURS OF CPE. 24 hours: $840 • 40 hours: $1,400 80 hours: $2,800 • 120 hours: $4,200 SEASON PASS PACKAGES INCLUDE: Group Study Programs: Live, inperson Denver and Chapter Seminars, conferences and webcasts.* The COCPA Season Pass provides a 23% discount off current prices. Members can attend a Don Farmer seminar for $49 more. The Season Pass is valid, May 1, 2016 – April 30, 2017.

Thanks to COCPA’s new Season Pass, Van Law just might find the time.

TO PURCHASE YOUR SEASON PASS, VISIT: seasonpass.cocpa.org

For a company subscription to the Season Pass, call the Member Services Department at 303-773-2877. s

*Webinars and the following AICPA programs are not included in the Season Pass program: Tax Schools, Personal Financial Planning Boot Camp, Service Organization Controls School, Business Valuation School, Agriculture Conference, and COSO School.

Governmental CONFERENCE OCTOBER 20, 2016 Inverness Hotel and Conference Center or Webcast TOPICS AND SPEAKERS: GASB Update David R. Bean, Governmental Accounting Standards Board Economic Update Rich Wobbekind, Leeds School of Business, University of Colorado at Boulder

Implementation of the Uniform Guidance Kevin Collins, CliftonLarsonAllen LLP GASB 68 Implementation - Pension Standards Paul Niedermuller, CliftonLarsonAllen LLP and Cheryl Wallace, RubinBrown LLP

PERA and FPPA – OPED Ahni Smith, Fire & Police Pension Association of Colorado State Auditor’s Office Update Crystal Dorsey, Colorado Office of the State Auditor

Visit governmentalconf.cocpa.org to register.

Movers & Shakers Happy 102nd Birthday, Michael Kamin, retired CPA, of Pueblo, Colorado!

Benjamin T. Hrouda, CPA, joined Mercury Real Estate Partners, Denver. Congratulate him at ben.hrouda@mercuryrealestatepartners.com.

Gaylen R. Hansen, CPA, ABV, EKS&H LLLP, Denver, was appointed to the Auditing Standards Board, to complete the unexpired term of Marcia Marien.

Barry D. Amman, CPA, was named partner in charge of KPMG LLP's audit practices in Denver, Albuquerque, and El Paso. Also, he led the effort which resulted in Mile High United Way naming KPMG LLP, Denver, a 2016 Champion of Hope, the highest tribute for corporate community involvement for established workplace campaigns.

Heidi M. O'Neil, CPA, CGMA, joined the Denver City Auditor's staff as Director of Financial Audits.

Contact her at Heidi.O’Neil@denvergov.org.

Bauerle and Company, P.C., Denver, announced the following promotions: Georgia Z. Phillips, CPA, to partner; Reed Sellers, CPA, Curt Olson, CPA, and Derek Watada, CPA, to senior manager; Christine Nibbelink, CPA, to manager; and Delmar D.J. Jarman, CPA, to supervisor.

To submit an announcement for publication, email the information to Mary Medley at mary@cocpa.org and note in the subject line, “For COCPA Movers & Shakers.” Note that announcements for individuals are published for COCPA members only. The COCPA may edit content for space and reserves the right to decline publication of an announcement.

In Memoriam

Ralph R. Bartsch February 12, 1917 – July 21, 2016 “One of the world’s really nice people,” is how former COCPA executive director Gordon Scheer describes Ralph Bartsch. “He was a lifelong friend who was still romping around, going up and down the stairs when I saw him last, not so long ago.”

President of the Colorado Society of CPAs in 1955-1956, Ralph helped to hire Scheer, the Society’s first paid professional staff member, in August 1955. “I couldn’t have had a better first president to serve under,” Scheer remembers. “He was always upbeat and easy to work with.”

It was a tumultuous time for the Colorado accounting profession.

The architects statute had been declared unconstitutional, because it gave legislative authority to the architects regulatory board.

The accountancy statute was constructed similarly and therefore similarly in danger.

The COCPA Board decided it was time to move from a totally volunteer organization to one with a professional staff. “The Society had a number of problems, and the accountancy law had serious problems,” Scheer says. The organization had sought, before Scheer arrived, to increase the education requirements to become a Colorado CPA from a high school diploma to a college degree.

The end result: the education requirements were removed from the accountancy statute altogether.

It took Ralph Bartsch, Marvin Stone, and Gordon Scheer, along with many others, four years to accomplish the goal – passing a new accountancy statute in 1959. You could say Bartsch, Stone, and Scheer are the fathers of the Colorado CPA profession as we know it today.

A Colorado native, Bartsch was a University of Denver graduate, an Army veteran, finance and auditing instructor, IRS employee, local CPA firm partner, and eventually Arthur Young and Company partner in the Denver office. He retired from public accounting in 1973 yet continued to work part-time as an accounting consultant for several Denver law firms. He also was husband to Martha for 66 years until her death in 2007, father of two sons, grandfather of four grandsons, and great-grandfather to two more boys. He loved to play and watch golf (and scored two holes-in-one at Lakewood Country Club, his home course), travel, and spend time with his family.

A celebration of Ralph’s life will be held, Sept. 9, 11 a.m., at Wheat Ridge United Methodist Church, Wheat Ridge, Colo.

We also regret the loss of the following COCPA member and extend our sympathy to his family and friends.

Rizk G. Hanna Mark Solomon, Western Slope's Kathy Cantu, CPA, and COCPA's Leslie O'Donnell

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• NewsAccount • September/October 2016

Member since 1989 Littleton, Colo.

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Selling your firm in 2016? ACCOUNTING BIZ BROKERS has been selling CPA firms for over 12 years, and we know your market.

We have a large database of active buyers ready to purchase, and we work with industry specific lenders ready to assist buyers with financing. We are experienced, professional, and confidential, and our focus is on bringing you the "win-win" deal you are looking for. Contact us today to receive a free market analysis or to start the sales process. Kathy Brents, CPA CBI at 866-260-2793 or Kathy@AccountingBizBrokers.com, or visit our website at www.AccountingBizBrokers.com.

Looking to retire/transition? DTC full service firm is looking to acquire a practice with revenues up to $400,000. We specialize in working with small business in the CO market; attest, tax, consulting, write up, payroll, and general business matters within multiple industries. No brokers. Reply to: stacy@cocpa.org, Box #23239.

To submit a classified announcement for publication, email the information to advertising@cocpa.org and note in the subject line, “For COCPA Classifieds.”

There is a 400-word limit on classified ads. Pricing: 0-50 words, $50; 51-100 words, $100; 101-200 words, $200; 201-300 words, $300; and 301-400 words, $400.

Accountants and Consultants www.acmllp.com

Live Here. Work Here. Play Here.

imagine the possibilities tm ACM is a locally owned, locally committed

accounting firm. We understand why you live here, why you do business here and what you expect from your advisors. ACM is committed to providing integrated, value-added, assurance, tax and consulting services. How can ACM help you?

OPPORTUNITIES AVAILABLE Tax Preparer needed for Lakewood CPA firm. 2 plus years experience in individual and business tax returns. Ultra Tax Software knowledge a plus but not necessary. To apply, please email resume to Contactus@acctaxsolutions.net.

Contact us to find out: info@acmllp.com

303.830.1120 Boulder ∙ Denver ∙ Northern Colorado ∙ Laramie

October 20, 2016 GOVERNMENTAL CONFERENCE

SAVE THE DATES 2016 Conferences For details, contact COCPA at 303-773-2877, 800-523-9082, or go to www.cocpa.org.

October 26, 2016 CPAS IN INDUSTRY CONFERENCE November 14–15, 2016 TECHNOLOGY CONFERENCE November 17, 2016 ACCOUNTING AND AUDITING CONFERENCE December 13, 2016 SEC AND PCAOB CONFERENCE December 15, 2016 MIX AND MATCH CONFERENCE

September/October 2016 • www.cocpa.org •

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

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Investment Management

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KuhnAdvisors.com Minimum Relationship: $1 million Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, Certified Financial Planner™ and CFP® in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. Kuhn Advisors, Inc. is a registered investment adviser. More information about Kuhn Advisors, Inc., including its advisory services and fee schedule, can be found in its Form ADV Part 2, which is available upon request.

2373 Central Park Blvd. Suite 100 Denver, CO 80238 (303) 803-1016