COCPA NewsAccount – March/April 2021

NEWSACCOUNT COLORADO SOCIETY OF CPAs • MARCH/APRIL 2021

Meet Your New Leaders: Introducing the 2021-2022 COCPA and Educational Foundation Nominees PAGE 4

PPP Round One Forgiveness and PPP Round Two: What’s New? PAGE 18

Mental Health

in the Workplace

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NewsAccount | March/April 2021

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Contents

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Features 4

Meet Your New Leaders: Introducing the 2021-2022 COCPA and Educational Foundation Nominees Maintaining the profession’s relevance; leadership development; the pipeline into the profession; diversity, equity, and inclusion; and much more are top of mind for these new members who will join the COCPA Board of Directors and Educational Foundation of COCPA Board of Trustees, May 1.

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Fix Passed for NOL Carry Forward Treatment and Expansion of EIC In January, the Colorado General Assembly passed House Bill 21-1002 which restores, over time, certain business deductions contained in the CARES Act of 2020 that previously were disallowed for Colorado tax purposes.

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Colorado’s Spiraling Unemployment Insurance Fraud CDLE officials say they’ve been able to stop about $7 billion in fraudulent payments from being distributed, but the problem continues to grow. Here’s what you need to know.

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The Pandemic Effect: Why the Accounting Profession is More Important Than Ever AICPA President and CEO Barry Melancon discusses the accounting profession’s unprecedented year and what makes CPAs so valuable now.

PPP Round One Forgiveness and PPP Round Two: What’s New? Expanded eligibility, expanded eligible costs, and new categories of costs that can be used toward forgiveness are all good news for borrowers - and may provide much needed relief for Colorado businesses and organizations.

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Mental Health in the Workplace: Are You Ready?

In this fifth article in the series, the authors highlight the importance of prioritizing mental health in the workplace and offer examples of leading practices.

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Where There’s Humor, There’s Hope Korn Ferry CEO Gary Burnison reminds us that even in the depths of sorrow, laughter truly is good for the soul. We need it now more than ever.

26 Departments 2

Chair Column

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In Memoriam, Classified Ads

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Movers & Shakers

CONNECT WITH COCPA

Follow us on social media and hear about recent news and upcoming events!

March/April 2021 | www.cocpa.org

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CHAIR COLUMN

Transforming Our Profession Together

NEWSACCOUNT

A bimonthly publication of the Colorado Society of Certified Public Accountants Vol. 66, No. 6 March/April 2021

Officers

Sharon S. Lassar, Chair Randy L. Watkins, Vice Chair Peter J. Derschang, Treasurer Benjamin T. Hrouda, Immediate Past Chair Mary E. Medley, Secretary

Directors

James N. Brendel, Toby D. Clary, Audra Dixon, Renny Fagan, Mary-Margaret Henke, Kelly A. Kozeliski

Editorial Board

Jack Allgood, Steve Corder, Georgia Z. Phillips, Lori Anne Reinwald, Laura J. Theiss, Barbara J. Tedesko, Steve Van Meter, Michael D. West, Charlie Wright Mary E. Medley, President/CEO, Editor Natalie G. Rooney, Contributing Writer Ariana Cassard, 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 $12.00 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 = 5,794 copies; sales through dealers and carriers, street vendors, and counter sales = 0; paid or requested mail subscription = 5,736; free distribution by mail = 0; free distribution outside the mail = 20; total free distribution = 20; total distribution = 5,756; office use, leftovers, spoiled = 38; returns from news agents = 0; total sum = 5,794; percent paid and/or requested circulation = 99%.

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NewsAccount is available online at www.cocpa.org.

BY SHARON S. LASSAR, PHD, CPA (FLORIDA)

Over the course of this past year, we have experienced firsthand the resiliency not only of our profession but also much of the U.S. economy. Many businesses struggled, but others transformed almost overnight. Restaurants shifted to delivery and pick-up services. Retailers refined ship-to-store and curbside pickup. Educators and other service providers moved online. The pandemic forced the adoption of technology solutions and started a flywheel that will continue to accelerate.

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e’ve seen our organizational cultures evolve as well. Before COVID-19, many workers resisted change, but when faced with no alternative, they adopted technology-enabled solutions and are now ready for more.

The pandemic also made us think about safety and how solutions like contact tracing can compromise privacy.

TRUSTED ADVISORS – NOW MORE THAN EVER Now, as we envision a post-COVID world, CPAs are perfectly positioned to help their companies and clients plan their next steps in the digital transformation taking shape.

We know this guidance is badly needed to keep our information and money safe from cyber criminals, which unfortunately was demonstrated last spring when the U.S. government distributed money to assist individuals who lost their employment. The result has been billions of dollars lost to fraudulent unemployment insurance claims (related story on page 12). My own identity was stolen – twice.

Some say technology will result in us moving to a never trust, always verify system. I prefer to think of technology as a means to automate trust. It’s critical for systems to utilize multi-factor authentication so the public has confidence in its transactions in a digital world.

Over the coming year, we will see a continuing convergence of technology tools to help us address problems and make better

decisions. As we automate processes, we’ll have access to an unprecedented amount of data allowing companies to connect the physical world to the virtual world through the Internet of Things. Our ability to extract and analyze big data is improving. We are building artificial intelligence (AI) systems, and we are programming machines to learn.

The fourth industrial revolution is well underway.

THE HUMAN SIDE OF THE DIGITAL TRANSFORMATION Although we have become accustomed to conducting both our personal and business interactions in a digital environment, most of us long for the human interaction we experienced before the pandemic. As we imagine what a post-COVID world looks like, we are not likely to give up the

Although we have become accustomed to conducting both our personal and business interactions in a digital environment, most of us long for the human interaction we experienced before the pandemic.

convenience of working from home, meeting remotely, and shopping online. How will our new digital world converge with the human experience?

Two aspects of the digital transformation that are related and particularly interesting to me are privacy and security.

For years, employers have had the ability to scan how employees conduct their work but have generally not executed on all the possibilities. Employers generally don’t monitor internet browsing habits of their workers, for example. In a continued work from home environment, however, employers have an interest in gathering data from workers’ tools and platforms to maintain the productivity, collaboration, and performance of a distributed workforce. Will workers feel their privacy is compromised, or will they embrace suggestions generated by AI engines that read their workflow?

We also have become accustomed to online retailers suggesting additional products when we add an item to our shopping carts.

I appreciate being reminded to buy batteries for a product that requires them. Will I have the same reaction to suggestions if they come from a live sales associate who had tapped into my online purchase habits in order to serve me better? Maybe I came to the store because I want an independent or creative suggestion, something the online algorithm would not suggest. Perhaps I don’t want sales associates to know my online browsing history.

Navigating the tradeoffs between privacy and increased productivity and customer satisfaction may be challenging. Privacy is also a concern when automating security.

What data needs to be in the blockchain?

Once entered, it is permanent.

Food and medicine security is greatly enhanced with blockchain technology.

Butchers can often tell you not only on which ranch the livestock was raised but also the individual animal that provided your cut. Supply chain security also can mean agility to respond to demand spikes.

For toilet paper shortages to become an historical event, information on what drives consumer behavior needs to be linked to manufacturers to better connect demand and supply. Predictive models that use anonymous transaction data can make those connections in ways that do not compromise privacy. Do consumers trust companies to anonymize data they collect?

CPAS: LEADING THE WAY CPAs are being called upon more than ever before to help their companies and clients with this digital transformation. It is a tall order. We are also transforming ourselves.

A great resource is the COCPA Technology Users Group which typically meets on the third Tuesday of every month to discuss issues and share technology tips and tricks.

Discussion topics include technology solutions for everyday problems like client portals, cloud storage, automation, practical tax and audit technology best practices, client workflow, social collaboration, outsourced IT resources, etc. COCPA member Jim Gilbert leads the group and seeks your suggestions on topics for future meetings. Please consider joining.

companies do the same. So many exciting challenges are ahead for us as a profession.

We have much to look forward to whether it’s the growing emphasis on Environmental, Social, and Governance (ESG) issues in financial reporting or the digital transformation that is helping us work faster and more efficiently than ever before.

Even as the COVID-19 vaccines will make it possible to come together physically again, it’s clear we won’t go back to the way we did things before. Let’s continue to work together to bring our collective profession forward into this exciting new world.

Email Sharon Lassar at slassar@du.edu.

Technology is moving so quickly, and it is becoming increasingly challenging for all of us but especially for smaller firms to keep up with the rapid change. We need to rely on one another, share experiences, and work together not only to stay ahead of digital transformation but also to learn to be leaders for our clients and companies.

A great resource is the COCPA Technology Users Group which typically meets on the third Tuesday of every month.

Learn more at cocpa.org/tech-users.

A YEAR LIKE NO OTHER This column marks my final one as your COCPA chair. What a year it has been! While I wasn’t able to connect with you in person, it still has been an honor and a privilege to serve. I have watched so many of you transform your own businesses and practices as you simultaneously helped your clients and March/April 2021 | www.cocpa.org

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LEADERSHIP NEWS

MEET YOUR NEW LEADERS:

Introducing the 2021-2022 COCPA and Educational Foundation Nominees Maintaining the profession’s relevance; leadership development; the pipeline into the profession; technology; diversity, equity, and inclusion; and much more are top of mind for these new members who will join the COCPA Board of Directors and Educational Foundation of COCPA Board of Trustees, May 1.

COCPA BOARD CHAIR NOMINEE

Randy Watkins, CPA, CGMA, CCIFP Partner, BDO USA, LLP, Greeley

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andy literally grew up in the accounting profession, watching his father Lee Watkins build Watkins & Schommer, Inc., a local CPA firm, in Greeley, Colo., with partner Dan Schommer. Rolling beyond graduation from Wiggins High School and the University of Northern Colorado with a B.S. in Business Administration - Accounting emphasis, Randy developed his technical skills with several organizations before returning to Greeley to work in the family business. When his Dad retired in 2008, Randy purchased the firm. In 2010, he merged it into Anton Collins Mitchell LLP (ACM) - the firm with which he’d worked two years earlier.

Today, Randy is an assurance partner in BDO USA, LLP’s (BDO) Northern Colorado office, ACM having merged with BDO in late summer 2020. He focuses on auditing and financial reporting services for exempt organizations, construction, manufacturing and distribution, and software and technology companies. He takes special interest in getting to know his clients so he can help them accomplish their goals. With 20 years of experience, he is able to identify opportunities to make practical improvements in clients’ operational efficiencies and internal controls over financial reporting and accounting. The intimate knowledge he gains from these audits, coupled with his analytical skills, enables him to help his clients look beyond the numbers to the story their financial statements tell.

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A member of the COCPA and AICPA, Randy has served in a variety of roles including a previous term on the COCPA Board of Directors and in his current position as Vice Chair and Budget Committee Chair. He is a former member of the AICPA Governmental Audit Quality Center (GAQC) Executive Committee and the AICPA annual Government Accounting and Auditing Conference planning committee. He regularly presents on technical topics at AICPA Government and Construction conferences.

Randy belongs to the Associated General Contractors of Colorado, Colorado Government Finance Officers Association, and Construction Financial Management Association.

A firm believer in giving back to his community, Randy is heavily involved in charitable organizations throughout northern

At the top of the priority list for Randy is “maintaining relevance in the Information Age, establishing our relevance in providing assurance on ESG (Environmental, Social, and Governance) reporting, and attracting diverse top talent from the next generation.”

He brings Creativity and Innovation Super Powers to the Board table as well as practical experience from his other nonprofit board service.

When he’s not immersed in professional activities, Randy spends his time with family - wife Nicole, who also is a CPA, and daughters Lennon and McCartney; playing golf, boating, camping, learning new songs on the guitar, and watching sports. Some of his most favorite trips have been twoto-three-week road trips in the family’s 5th wheel. They’ve been to upstate New York and back; to the Black hills of South Dakota, and beyond to Montana, Idaho, Nevada, and Wyoming; and last summer to Lake Michigan, the Upper Peninsula, and back home through Wisconsin. Oh, yes, Randy is a diehard Beatles fan, too. And, yes, that’s why his daughters are named after two of the Fab Four.

The intimate knowledge Randy gains from these audits, coupled with his analytical skills, enables him to help his clients look beyond the numbers to the story their financial statements tell.

Colorado. He chairs the United Way of Weld County Board; is past president of the University of Northern Colorado (UNC) Alumni Association Board; and president of the Board for United for Youth (UniFY - formerly Northern Colorado Active 20/30).

COCPA BOARD VICE CHAIR/CHAIR-ELECT NOMINEE

Angela Roberts, CPA

Founder and Managing Partner, Aclivity, LLC, Denver

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ngela began her career as an auditor with Deloitte & Touche and as a senior manager with Arthur Andersen before transitioning into private industry as a controller, CFO, and national practice manager. Founder and Managing Partner at Aclivity, LLC, the Denver-based executive recruiting, staffing, and consulting firm, Angela also is a Mindset of Leadership Coach and Trainer, teaching the value of becoming the most successful and effective leader and/or teams you can be to the U.S. Military, Fortune 500, and private growing organizations.

Angela first volunteered with the COCPA as a University of Colorado Denver (UCD) student member. In 2005, she founded the CFO & Controllers Roundtable which continues to provide programming and networking opportunities for Colorado accounting and finance executives. She previously chaired the COCPA Women in the Workplace Committee and served on the Strategic Planning Committee and Board of Directors.

A lifetime Girl Scouts USA member, Angela joined the Girl Scouts of Colorado Board in 2018, serving on the Finance Committee and currently as its Treasurer. She also is a mentor for Gold Award Girl Scouts. Since 2013, Angela has helped the University of Colorado plan and develop curricula and programs as a Community Member of the University of Colorado Business School Accounting Advisory Council. She currently is helping to develop its Controllership and Communications-related curriculum. In 2018, Angela was one of the founding members of HomeStretch Moms, an alliance with Channel Mom and the Denver Rescue Mission dedicated to mentoring single mothers.

Angela says building the best leaders in business should be our top priority. “We do a good job of training CPAs in the technical aspects of accounting and finance. We need to emphasize and develop our professionals’ leadership skills,” she emphasizes. “And, we need to be proactive in mentoring our ‘up-and-coming’ CPAs. Daily, through my

firm, I connect with and represent CPAs who are focused on advancing their careers. A continuing theme is their desire to work in a culture that fosters management experience, provides mentoring, and develops their leadership skills. The COCPA is in a position to help foster the future leaders in our CPA firms and corporate organizations.”

Her Super Power is getting to know people and their stories. “I love this profession.

I have met amazing people through the Society, and I have learned so much. I want people to know that I am dedicated to advancing your career, whether with your current organization, your next opportunity, or connecting you with someone who can!”

This Colorado native holds a Bachelor’s Degree in Business Administration and Accounting from UCD. She is married to Mark Pougnet and a proud mother of two.

When she isn’t working, parenting, or volunteering, Angela is usually found on the yoga mat, reading, traveling, or gardening.

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LEADERSHIP NEWS CONTINUED FROM PAGE 5

COCPA BOARD OF DIRECTORS NOMINEE

Diego Baca, CPA

Audit Senior Manager, EY LLP, Denver

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or Diego, a chance encounter with CPA and COCPA member Robert Dixon was the spark. “When I was about 12 years old, I met Mr. Dixon, one of the two or three CPAs in my hometown, Trinidad, Colo., at the local golf course. I had been paired with him a few times, and we didn’t have much in common. But one day, I saw his shiny Cadillac, and I noticed his nice golf clubs and clothing. I mustered up the boldness to ask him what he did for a living.

He said, in his noticeably Southern accent, “Son, I’m a CPA.” That brief exchange stuck with me - I made the decision as a junior at the University of Colorado to pursue my master’s and become a CPA. I tell the story because being open and authentic, especially with younger people who might not come from the same background as you, can have a profound impact on them. It’s why I’m focused on mentoring and educational access, especially for those underrepresented in our profession and in society as a whole.”

Diego has worked on a variety of clients in various industries including asset management, technology, health insurance, energy, media and entertainment, manufacturing, consumer products/retail, and employee benefit plans. His most relevant experience comes from serving a large multinational, publicly traded client in the technology industry. His eleven years at EY include experience in serving clients of varying sizes, from small startups, not-for-profits, and private equity backed entities to large, multinational, U.S. publicly traded companies. Throughout this time, Diego has gained extensive experience in SEC reporting, Sarbanes-Oxley 404 reporting, and other public company reporting requirements.

He serves as a liaison for the office’s diversity and inclusiveness professional networks and facilitates technical and soft skill trainings, notably as a consistent “Top Tier Facilitator” within the firm’s Audit Academy. Diego’s

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passions include a focus on educational access and mentoring, both with EY and in the community. He currently serves as the Denver executive sponsor for EY’s College MAP (Mentoring for Access and Persistence) program. Previously, he led the Denver and Southwest regional program for EY College

“Being open and authentic, especially with younger people who might not come from the same background as you, can have a profound impact on them.”

MAP. Diego also leads recruiting efforts at the University of Colorado. He is active with various non-profit boards, including serving as Treasurer of the University of Colorado Forever Buffs Latinx Alumni Association and most recently as Past President of the Educational Foundation of COCPA Board of Trustees. Diego has volunteered with Junior Achievement, the Denver Scholarship Foundation, Greenhouse Scholars, and Strive Prep as well. He is a former member of the ALPFA Denver Chapter Board of directors and a former member of the AICPA CPA Board of Examiners which oversees the CPA Examination’s development and content.

Diego is an avid non-fiction reader (focusing on autobiographies in business, music, and politics). He enjoys playing golf as much as

possible during the summer months. He enjoys listening to and making music; listening to and studying stand-up comedians; and watching his favorite TV shows repeatedly.

Just for fun, Diego has recorded two rap albums since 2010 and has most recently begun learning piano - his 2021 goal after giving up social media.

Diego says the top issues the profession must address are how to grow the CPA pipeline overall and for diverse candidates from underrepresented backgrounds and how to keep up with the pace of change caused by digital technologies and the massive amounts of data and information that are produced each year.

“My Super Power is my authentic perspective. I have a unique viewpoint given my background: single parent household, small town, first generation college graduate from an ethnic demographic that is still in the minority in the profession. My voice, like many others in the profession from similar backgrounds, tells a story from a different viewpoint that can add value to the collective Board.”

Diego almost gave up on becoming a CPA. “After failing REG multiple times, I let all the parts I’d passed expire. I was mentally prepared to quit and stopped thinking about the exam and licensure for a couple of years.

It wasn’t until I got to know some of my EY colleagues that I felt I could do it – and I needed to do it –to achieve my full potential. I tell this story to remind all of us in the profession that we must support and help people in the profession pipeline achieve this milestone. The number one reason I see so many young professionals of color give up on the CPA is because, like me, they think it’s just not meant to be for people like them.

But with our help and our focus on the pipeline, we can show that it’s not only meant to be but also well worth the effort. We must demonstrate how life-changing being a CPA can be.”

COCPA BOARD OF DIRECTORS NOMINEE

Jim Gilbert, CPA, CITP, CGMA

Managing Principal, Jim Gilbert, CPA LLC, Highlands Ranch

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im is passionate about supporting the CPA profession and helping his peers embrace technology to prepare for the ever-changing landscape of business and automation. He has focused his entire career, over more than twenty years, on integrating technology into strategic plans and business processes alike.

Jim began as a billing clerk, progressively moving into many different staff and management roles, including CFO, in many different industries including architecture, engineering, construction, technology, automobile, medical, and real estate, with small businesses up to Fortune 500 companies. He is experienced in forming a variety of business entities, business expansions, divestitures, mergers and acquisitions, and business closures.

A COCPA member since 2004, Jim is a founding member of the COCPA Technology Users Group. Top of mind for him? “The adoption of technology and the impact on CPAs are profound. We must be leaders and get in front of the impending change to provide value to our clients and all types of organizations.” He is eager to provide guidance on the importance of CPAs to be more adaptable and pivot toward new concepts, technologies, and needs of clients. As Jim puts it, “The traditional Audit, Tax, and Consulting service models have changed. CPAs now need to be leaders and innovators.”

Jim looks forward to bringing passion, energy, leadership, a creative and open mind, and a technology focus to the Board. “The COCPA has the opportunity to provide our members with additional value that will benefit them near-term and long term. I recently served on the AICPA Certified Information Technology Professional Credential Committee and currently serve on the AICPA COVID Technology Committee. Both recommend that CPAs focus on immediate adoption of technology skills and digital transformation. Our members need to be ready to repurpose their technical and daily efforts to support their internal and external clients. They will need specific information, tools, best practices, and relevant ideas no matter if they are beginning their CPA career or are partners in CPA firms. Our clients, company leaders, and organizations demand that CPAs be technically competent to understand modern business, and how to be leaders not only in accounting, tax, and consulting but also in the innovation of technology.”

Jim likes to travel, work out, and spend time with family. He also enjoys spending time on well-rounded self-improvement and obtaining knowledge.

This ardent supporter of the CPA profession looks forward to sharing insight, knowledge, AICPA committee experience, and knowledge of technology trends and practices with his Board of Directors colleagues. As Jim says, “Being a servant leader is paramount for success, along with having a pay it forward mentality.”

COCPA BOARD OF DIRECTORS COMMUNITY MEMBER NOMINEE

Amy King

Senior Vice President/Chief People Officer, Centura Health, Centennial

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or over 25 years, Amy King has been a transformative human resource leader focusing on local and national trends that continue to impact organizations and their human capital. She started her career in human resources in 1998, holding a variety of progressively responsible positions within the higher education Human Resources administration industry. She is responsible for articulating a vision for human resources that translates strategic priorities into operational imperatives and advancing the ongoing evolution of human resources to an integrated and strategic model. Currently, Amy also serves as a consulting strategist and coach for boards, organizations, and individuals.

This Colorado Christian University graduate received her B.S. in Organizational Management with an emphasis in human resources. She also earned a certificate of advanced study in alternative dispute resolution and a master’s degree in leadership and organizations with a specialty in human capacity in organizations from the University of Denver.

Amy has served on a variety of non-profit boards throughout her career, most recently serving as chair of the Colorado Women’s Chamber of Commerce and on the Catholic Charities Executive Committee.

Amy says, “As with any profession, the need for diversity and inclusion is imperative. Transforming the CPA profession in the space of diversity, inclusion, equity, and belonging can create experiences that allow individuals, teams, and organizations to grow. As an HR professional, I will say publicly that focus should not be solely on the shoulders of HR to create and invite change.”

As the COCPA Community Member on the Board of Directors, Amy brings the ability to challenge the strategic capabilities brought to the membership. “For boards I have served on, I have been asked to lead the strategic planning and transformation of board activities and offerings to ensure the organization is bringing forward what the membership is requesting and providing foresight into the needs of the members in the future.”

Amy loves spending her non-work time with family. She and her husband have two sons, Michael (17) and Alex (13). “We are a very active family with both boys belonging to a competitive travel baseball organization.” Amy adds, “Growing up in a small rural farming community in Nebraska, I learned the value of hard work and the importance of connection – to people and the land. With those inherent values, I look forward to getting to know my fellow board members, learning, and making a difference wherever I can!”

CONTINUED ON PAGE 8 March/April 2021 | www.cocpa.org

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LEADERSHIP NEWS CONTINUED FROM PAGE 7

EDUCATIONAL FOUNDATION TRUSTEE NOMINEE

Ronald L. Goodrich, CPA, CGMA President & Managing Shareholder, McPherson, Goodrich, Paolucci & Mihelich, PC, Pueblo

EDUCATIONAL FOUNDATION TRUSTEE NOMINEE

Lora L. Finley, CPA, Littleton

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ora has 23 years of experience in public accounting and private industry. Her public accounting experience includes manufacturing, government, banking, and fund accounting while her industry experience encompasses commercial real estate, construction, and professional services. She is proficient in multi-organizational accounting, small business startups, system conversions, intercompany accounting, GAAP-based accrual accounting, forecasting, budgeting, project management, and human resources. As a CFO, Lora has led the due diligence process to assist in the sale of a multi-million dollar mortgage banking firm.

This 1996 recipient of an Educational Foundation of COCPA scholarship has served on the COCPA Member Connections Committee; Audit Committee as both a member and chair; Investment Committee; Board of Directors as director and treasurer in 2012-2014; and Nominating Committee.

Lora enjoys traveling and spending time with her husband Mike and their Australian shepherd. She is a scuba diver and enjoys all the outdoor activities Colorado offers. She can’t wait to indulge her travel bug again, post-pandemic. Currently, Lora is working to complete a Certificate in Client Accounting Advisory Services. She received her B.S. in Accounting from Metropolitan State University of Denver.

Lora’s reputation for sticking to the meeting agenda is legendary - she says that is her Super Power. She also brings insight, laser-focused questions, and humor to the table. For her, the top issue the Foundation must address is “making sure the amount and number of awards are appropriate for this day and age.”

“I was very appreciative to have been a recipient of an Ed Foundation scholarship back in 1996.”

What does Lora want COCPA members to know? “I was very appreciative to have been a recipient of an Ed Foundation scholarship back in 1996.” She’s looking forward to making that happen for today’s accounting students.

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on received his B.A. in Accounting from Western State College, now Western Colorado University, in Gunnison, Colo. He has been employed with the same firm, MGPM, PC, since 1987, becoming the president and managing shareholder in November 2017.

Ron specializes in preparing tax returns for corporations, S corporations, partnerships, individuals, trusts, and estates, and in providing advisory, accounting, and auditing services to not-for-profits, governmental entities, and small businesses. Many of his clients are in agriculture, real estate, wholesale, governmental, and not-forprofit industries. He is part of the firm’s technology advancement team charged with keeping the firm on the forefront of technology.

MGPM moved to a paperless auditing and tax return environment in late 2019.

Ron serves on the COCPA CPE Board and is a past president of the COCPA’s Southeast Chapter which he led the effort to revive in 1988.

An avid hunter, fisherman, and conservationist, Ron spends some of his spare time working with groups on conservation issues. He is a member of the National Rifle Association, Rocky Mountain Elk Foundation, Back Country Hunters and Anglers, Pueblo West Sportsmen’s Association, and Coloradans For Responsible Wildlife Management (CRWM). Its goal and purpose is to educate and defend the North American Model of Wildlife Conservation. Ron is serving his sixth year on the Colorado Parks and Wildlife Sportsperson’s Roundtable.

In 2019, he assisted in getting the Colorado Future Generations Act passed. He now is also serving on the Colorado Wildlife Area working group.

Each September, for 20+ years, Ron heads to San Diego for his annual tuna fishing trip. For 40+ years, he has participated in Colorado’s big game hunting - bringing home a 6x7 bull elk in 2020. In addition to hunting and fishing, Ron enjoys spending time with his wife Lynette, children, grandchildren, and extended family. Many weekends in the summer, you will find Lynette, Ron, and various family members in the Colorado mountains enjoying camping, hiking, wildlife viewing, and scouting.

Ron says a top issue the Foundation must address is understanding the changes in the investment market due to the change in the Administration, changes in technology, and how the top tech companies affect what the general public sees and hears. While he’s humble about his Super Power, Ron acknowledges he has many years of experience assisting not-for-profits like the Foundation with accounting, auditing, and investments.

EDUCATIONAL FOUNDATION TRUSTEE NOMINEE

Tiffany Knight, CPA

Director, Kundinger, Corder & Engle, P.C., Denver

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iffany is a Director with Kundinger, Corder & Engle, P.C. (KCE), an accounting firm that has provided audit and tax services exclusively to not-forprofit organizations in the Denver area since 1991. She graduated from Metropolitan State College of Denver in 2005, obtaining her CPA license directly out of college, and has spent her entire career with KCE. She is active with the Colorado Society of CPAs, currently serving on the Member Connections Committee (MCC). She recently was appointed to chair the Audit Committee. She also is a graduate of the COCPA LeadFit program, a leadership program designed specifically for younger CPAs. Top of the list for Tiffany is keeping up with technology and the fast-changing environment. “The pandemic has forced upon us a significant change in the way we both conduct and deliver our services. We are going to continue to see changes in the way

business is conducted going forward and, as a result, we need to find ways to keep pace, adapt, and remain a relevant and strong profession. Most importantly, I think we need to find that healthy balance between technology and delivering personal services to our clients. Also, the job market for hiring CPAs is tough right now. We need to continue to find ways to attract and maintain strong talent in the profession.“ Tiffany has been working exclusively with nonprofit organizations for over 15 years and will bring to the Foundation her breadth of knowledge about nonprofit organizations and, even more specifically, membership organizations such as the COCPA. “With my experience with nonprofits and the MCC, I hope to bring fresh and new ideas to the table. Also, I’m open-minded, and I enjoy the creative process of hearing other ideas and coming together to expand and deliver on an idea.”

Tiffany loves spending time with her family.

She is married and has “two amazing sons, ages 21 and 16, as well as two crazy dogs, Ziggy (a French Bulldog) and Pablo (an American Bully).” She loves being active, too - hiking, swimming, and working out. This huge Denver Broncos fan’s family has had season tickets for over 50 years. Tiffany also loves to travel, especially internationally. “I’m ready to get back out there when it is finally safe to do so.”

Tiffany shares, “I feel incredibly lucky to have found the CPA profession. I was a teen

“I feel incredibly lucky to have found the CPA profession.” mom, giving birth to my first-born son at the age of only nineteen. I didn’t really have any direction at that time and decided to pursue a degree in accounting and eventually obtain my CPA license. It was one of the best decisions I have ever made as the profession has provided me with a strong, stable, and prosperous career.” Through service with the Educational Foundation, Tiffany will seize the opportunity to encourage others to make that “best decision ever,” too.

EDUCATIONAL FOUNDATION TRUSTEE NOMINEE

Judy Thomas, CPA

Chair, Accounting, Economics, and Finance and Associate Professor of Practice, Anderson College of Business and Computing, Regis University, Denver

J

udy worked in industry for over 25 years before becoming a full-time professor. She gained experience in manufacturing, telecommunications, consulting, and the federal government. She has taught accounting and finance courses for over 22 years.

She served two four-year terms on the Colorado State Board of Accountancy and was a member of the National Association of State Boards of Accountancy (NASBA) Communications Committee. She also has been a member of the COCPA Accounting Education Committee.

Judy has been married for 40 years and has two children. She enjoys reading and loves music - both playing it and listening to it.

She even has a room in her home dedicated to musical instruments. Her first love is baseball and the Colorado Rockies. The Thomas family goal is to visit all 30 MLB parks, and they have seven yet to see. She says she doesn’t know what they’ll do when they’ve achieved their goal. Perhaps by then, it will be time to start again “from the top,” to borrow a musical phrase.

Judy says the Foundation must address diversity, equity, and inclusivity. “Through the Foundation, DE&I can be addressed, as

well as support the overall mission of the COCPA. I also believe it is important to bring an innovative culture and competency to the COCPA and the profession. We, as professionals, need to be agile and nimble.

I hope the “super power” I bring to the Foundation derives from the Jesuit values instilled during my undergraduate education. These include promoting human dignity, striving for better, pursuit of justice for all, education of the whole person, action to address social problems, and finding God in all things.

What this means to me is that I am dedicated and committed to making a difference for the good of all.”

March/April 2021 | www.cocpa.org

9

AT THE COLORADO GENERAL ASSEMBLY

Fix Passed for NOL Carry Forward Treatment and Expansion of EIC

O

n Jan. 15, 2021, the Colorado General Assembly passed House Bill 21-1002 (HB21-1002). It will restore, over time, certain business deductions contained in the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 that were disallowed for Colorado tax purposes by passage of Colorado House Bill 20-1420 (HB20-1420) in June 2020 and final adoption of Colorado Department of Revenue (CDOR or Department) rule 1 CCR 201-2 - Rule 39-22-103(5.3). Internal Revenue Code Definition - Prospective. The only change HB211002 made which affects 2020 income tax returns being filed in 2021 is the expanded earned income credit discussed here.

The CARES Act retroactively provided favorable tax treatment to individuals, trusts, and estates as follows: 1. Net operating losses incurred in 2018, 2019, and 2020 could be carried back five years.

2. The excess business loss limitation under I.R.C. Section 461(l) was suspended for 2018, 2019, and 2020 for non-corporate taxpayers with losses exceeding $250,000 ($500,000 for Married Filing Jointly taxpayers).

BY DAVID TAYLOR, CPA, AND LAURA ASBELL, CPA, MT, MBA in 2018 and 2019, and for the first three items for tax years beginning in 2020.

HB21-1002 clarifies that differences between the CARES Act provisions and Colorado law are intended to be timing differences and provides the mechanism for reversing them.

The differences are defined as the sum of the taxpayer’s Colorado taxable income for affected years, compared to what the taxpayer’s Colorado taxable income would have been for those years if Sections 2303, 2304, 2306, and 2307 of the CARES Act had been available to the taxpayer.

Under HB21-1002, any difference caused by Colorado’s decoupling from the federal law for the four items noted will be treated as a temporary difference in tax years beginning after Dec. 31, 2020. Affected taxpayers will be allowed a subtraction in computing their Colorado taxable income of up to $300,000 for their first tax year beginning after Dec. 31, 2020, and up to $150,000 per year for the next four years with any remaining timing difference allowed in full, not to exceed Colorado taxable income for any years thereafter.

3. The limitation for excess business interest expense under I.R.C. Section 163(j) was increased from 30% to 50% of adjusted taxable income for 2019 and 2020.

Any subtraction computed under the provisions of HB21-1002 may reduce Colorado taxable income to zero but cannot reduce Colorado taxable income below zero. The deductions related to the timing differences are spread over several years to remove pressure on the state’s budget.

4. A technical correction was made to the federal Tax Cuts and Jobs Act of 2017 definition of qualified improvement property thereby allowing such property to be eligible for bonus depreciation.

Qualified improvement property placed in service during 2018 or 2019 is depreciated over 39 years for Colorado tax purposes.

Taxpayers may not circumvent this by filing a federal accounting method change to adopt the CARES Act depreciation provisions.

HB20-1420 and the CDOR rule prevent taxpayers from availing themselves of the first three of these favorable provisions for Colorado tax purposes. Due to an unintentional oversight in drafting HB20-1420, both it and the rule created permanent differences between federal law and Colorado law for each of these items for tax years beginning 10

NewsAccount | March/April 2021

Individuals, estates, and trusts which have a Colorado timing difference caused by qualified improvement property must reduce the Colorado tax basis of the property to equal the federal basis so that the Colorado gain or loss from the disposition of the property is the same as the federal gain or loss.

This provision applies even if the qualified

improvement property is disposed of before the Colorado timing difference is fully recovered.

Note that the Colorado tax treatment of qualified improvement property is the same as the federal treatment for tax years beginning in 2020.

Similar provisions apply to C corporations.

HB21-1002 clarifies that C corporations which allocate or apportion income to Colorado will compute the timing differences by applying the Colorado apportionment percentage used in the year the timing difference originated.

EARNED INCOME CREDIT HB20-1420 expanded the earned income credit to those residents who wouldn’t otherwise qualify for a federal earned income credit because the taxpayer, spouse, or a dependent did not have a work-eligible social security number. This expanded credit was scheduled to become effective in 2021.

HB21-1002 accelerated the effective date to years beginning in 2020. The Colorado earned income tax credit is equal to 10% of the federal credit the individual was allowed, or would have been allowed, on the federal return if the taxpayer, spouse, or dependent had a valid social security number.

NOL CARRY FORWARD EXAMPLE Mom and Pop are the shareholders of an S corporation, Mom’s Drycleaners, Inc. For calendar 2018, Mom and Pop had a federal net operating loss of $50,000 which could not be carried back, and only 80% of the loss could reduce federal taxable income under I.R.C. Section 172 prior to enactment of the CARES Act. After enactment of the CARES Act, Mom and Pop carried their federal net operating loss back five years to 2013, fully utilizing it. In accordance with the CDOR rule, Mom and Pop did not carry their net operating loss back to offset prior Colorado taxable income.

In April 2019, Mom’s Drycleaners, Inc. placed $5,000 of qualified improvement property into

service and claimed bonus depreciation on the full amount for federal tax purposes.

Under the Internal Revenue Code prior to enactment of the CARES Act, the qualified improvement property would have been depreciated over 39 years, and a 2019 depreciation deduction of $91 would have been allowable. After claiming a $5,000 deduction for the qualified improvement property, Mom’s Drycleaners, Inc. had ordinary taxable income of $100,000 and no other separately stated items on its federal tax return.

On its 2019 Colorado income tax return, Mom’s Drycleaners, Inc. must report a modification to its federal taxable on line 1 of its Colorado tax return of $4,909 ($5,000 minus $91). Mom’s Drycleaners, Inc. would also report the modification to Mom and Pop with an explanation so that they properly compute their 2019 Colorado taxable income and compute their net timing difference correctly in 2021.

Mom’s Drycleaners, Inc. also must reduce the tax basis of the qualified improvement property to zero for future years so that its basis equals the federal tax basis of such property.

On their 2019 individual income tax return, Mom and Pop reported federal taxable income of $220,000. On their 2019 Colorado income tax return, Mom and Pop would report federal taxable income of $224,909 on line 1, reflecting the disallowed deduction for the qualified improvement property from Mom’s Drycleaners, Inc. Mom and Pop would not be allowed a deduction or subtraction on their 2019 Colorado income tax return for the 2018 net operating loss because the loss was carried back to 2013 for federal purposes. Therefore, it was not included in their 2019 federal taxable income.

In 2020, Mom’s Drycleaners, Inc. placed $20,000 of qualified improvement property into service and claimed a 100% bonus depreciation deduction on its federal Form 1120S. The bonus depreciation deduction is allowed in full for 2020 so no Colorado timing difference is created for the 2020 qualified improvement property.

In 2021, Mom and Pop would compute their cumulative Colorado timing difference caused by differences between federal and Colorado tax laws: $54,909 the $50,000 net operating loss from 2018 plus the $4,909 difference related to the qualified improvement property acquired

by Mom’s Drycleaners, Inc. This cumulative timing difference will be allowed as a subtraction on Mom and Pop’s Form 104 beginning in 2021 and carrying forward to future years until fully utilized.

Assuming Mom and Pop’s federal taxable income for 2021 was at least $54,909, the subtraction is fully utilized in 2021 because it is less than the $300,000 limit applicable to 2021, and it does not reduce Mom and Pop’s Colorado taxable income below zero.

David Taylor, CPA, is a Tax Partner with BDO USA LLP, Denver. Contact him at detaylor@bdo.com. Laura Asbell, CPA, MT, MBA, is a Senior Tax Manager with CBIZ & Mayer Hoffman McCann P.C., Denver. Contact her at lasbell@cbiz.com. Both are members of the COCPA/CDOR Working Group which meets with the Department to address issues and provide input on processes and proposed rules. To join the working group, email Mary E. Medley, mary@cocpa.org.

1 CCR 201-2 - RULE 39-22-103(5.3). INTERNAL REVENUE CODE DEFINITION - PROSPECTIVE. Basis and Purpose. The statutory bases for this rule are sections 2-4-202, 39-21112, 39-22-103(5.3), 39-22-104, and 39-22-304, C.R.S. The purpose of the rule is to clarify that the term “internal revenue code” incorporates changes to federal statute only on a prospective basis.

“Internal revenue code” does not, for any taxable year, incorporate federal statutory changes that are enacted after the last day of that taxable year. As a result, federal statutory changes enacted after the end of a taxable year do not impact a taxpayer’s Colorado tax liability for that taxable year. Changes to federal statutes are incorporated into the term “internal revenue code” only to the extent they are in effect in the taxable year in which they were enacted and future taxable years.

Alert RETROACTIVE TAX CHANGES AND COLORADO RETURNS According to Colorado Rule 39-22-103(5.3), federal statutory changes enacted after the last day of a tax year do not impact a taxpayer’s Colorado tax liability for that taxable year. For example, the CARES Act amendment that retroactively changed the depreciable life for Qualified Improvement Property from 39-year to 15-year property, making it eligible for bonus depreciation, applies only to Colorado tax years ending on or after March 27, 2020. Thus, a taxpayer may amend the federal 2018 or 2019 return for the change but not the Colorado return.

The Colorado regulation affects not only the retroactive provisions of the CARES Act but also possibly any retroactive federal legislation. For example, IRC Code §222(e) provides up to a $4,000 above-the-line deduction for tuition and related education expenses.

That deduction expired on Dec. 31, 2017. It was retroactively extended by the Taxpayer Certainty and Disaster Tax Relief Act of 2019. Since that Act was signed on Dec. 20, 2019, the retroactive deduction allowed in amending a taxpayer’s 2018 federal return is not allowed for the 2018 Colorado return. It only is allowed for Colorado tax years ending on or after December 20, 2019.

See Colorado Publication, CARES Act Tax Law Changes and Colorado Impact (September 2020), tax.colorado.gov/sites/tax/files/ CARESGuidance_0.pdf.

COLORADO TREATMENT – PPP LOANS The exclusion of covered loans from gross income under section 1106(i) of the CARES Act was a prospective provision in effect during the tax year. As such, covered loans excluded from federal taxable income will be similarly excluded from Colorado taxable income.

The amendments to the CARES Act by section 276 of the COVID-Related Tax Relief Act of 2020 – which clarified that deductions and basis increases may not be denied, nor may tax attributes be reduced, because of the exclusion of covered loan forgiveness from gross income – became law on Dec. 27, 2020.

Therefore, these changes will impact the Colorado tax liability for calendar-year taxpayers.

The Colorado tax liability of taxpayers whose tax years ended before Dec. 27, 2020 will not be impacted by these amendments in accordance with 1 CCR 201-2, Rule 39-22-103(5.3).

March/April 2021 | www.cocpa.org

11

LABOR AND EMPLOYMENT

Colorado’s Spiraling Unemployment Insurance Fraud

BY NATALIE ROONEY

To say Fran Coet, CPA, partner with Atlas CPAs & Advisors, Westminster, was somewhat surprised in early January when she received a notice that she had filed an unemployment claim would be putting it mildly. Why? She had never filed such a claim. In fact, she hasn’t even taken time off since the beginning of the pandemic. “Accounting services were deemed essential so all of us have been working the whole time,” Coet says.

H

ackers somehow obtained her full Social Security Number, which was on the notice from the Colorado Department of Labor and Employment (CDLE), but it incorrectly listed her middle name as her last name. “That also was strange,” she says.

Ultimately, Coet ended up with four unemployment notices for two different corporations she used to own and five different employees.

At McPherson, Goodrich, Paolucci & Mihelich PC (MGPM) in Pueblo, President and

12

NewsAccount | March/April 2021

Now, criminals have moved from attacking the PUA program to targeting Colorado’s regular unemployment insurance system.

Managing Shareholder Ron Goodrich, CPA, CGMA, says his radar was triggered when one of his clients, a radiology practice,

received two unemployment claims. “These are long-term doctors who are still working,” Goodrich says. “It didn’t make sense.”

Three days later, four of MGPM’s employees received claim notices, as well. Soon, the firm, which processes payroll for more than 200 clients, was receiving fraudulent notices daily.

Clients began calling both Coet and Goodrich wondering what was happening.

Their companies and organizations were being inundated with notices.

Unemployment insurance fraud has become widespread in Colorado and across the U.S. Already, it has cost Colorado more than $10 million in lost funds. CDLE officials say they’ve been able to stop about $7 billion in fraudulent payments from being distributed, but the problem continues to grow.

HOW THE FRAUD HAPPENS “Any time the government starts giving something out, some people find a way to get it when they shouldn’t,” says Goodrich.

When the pandemic payouts began last spring, that’s exactly what happened. Fraudsters began targeting state systems nationwide when federal benefits began for the self-employed, contractors, and gig workers who normally don’t pay for unemployment insurance. States, including Colorado, had quickly implemented the federal Pandemic Unemployment Assistance (PUA) program, where less verification was required since no employers were involved.

Now, criminals have moved from attacking the PUA program to targeting Colorado’s regular unemployment insurance system.

Since mid-March 2020, CDLE reports an estimated 780,847 regular UI claims have been filed, and an estimated 1,032,471 total claims have been filed, including PUA. The fraud claims are so rampant that CDLE says it can’t accurately report how many Coloradans actually are unemployed and filing for benefits. The Department has flagged 140,000 state unemployment claims as potential fraud. Just 1,200 people have called the Department to challenge the hold on their funds. “It’s mind boggling that this fraud got this far out of hand,” Goodrich says.

Once enrolled in Colorado’s unemployment system, workers receive a debit card from U.S. Bank. They can opt to have the money transferred to a bank account, but the card is still mailed. Many people don’t realize fraud has been committed in their names until the debit card arrives. If a fraudster collects a debit card from a vacant mailbox or the card is disposed of before the claim is shut down, the fraud victim may not realize money was

TO REPORT UNEMPLOYMENT INSURANCE FRAUD • Go to cdle.colorado.gov/fraud-prevention.

• Click on “Submit a Fraud Report” and complete/submit the online form.

• Contact all three credit bureaus — Experian, Equifax, TransUnion — and place a “fraud alert” on your name and/or Social Security Number.

• Request a free copy of your credit report from each credit bureau and review it.

Should anything inaccurate appear on a report, a dispute must be filed directly with the credit bureau(s). Should an inquiry from another state’s Department of Labor appear on a credit report, there is a good chance the victim has been targeted by a fraudulent UI claim in that state.

• File an identity theft report with the Federal Trade Commission at identitytheft. gov.

• If you receive a U.S. Bank Reliacard for Colorado unemployment benefits but did not file a claim, contact U.S. Bank immediately at 1-855-282-6161. Report that a fraudulent unemployment claim was filed using your information, and request the card be deactivated.

• If you are an employer and receive a “Request for Facts About a Former Employee’s Employment” and/or a “Notice of Unemployment Insurance Claim, Wages Reported, and Possible Charges” for a current employee, notify the employee to file a Fraud Report online at cdle.colorado.gov/fraud-prevention. The employer should, on the Request for Facts notice, mark “Other Reasons” in box 9 and write on the face of the notice, “This is a fraudulent claim, verified with the employee,” sign it, date it, and mail it to the Colorado Department of Labor and Employment, Unemployment Insurance Operations, PO Box 400, Denver CO 80201-0400, within the time shown on the notice. Retain a copy for your records.

• If you receive such a notice for an individual who has never been an employee, indicate on the form, “This is a fraudulent claim. This individual has never been employed by INSERT COMPANY NAME.” If you know the individual, notify him or her to file a Fraud Report.

• If you or someone you know receives an incorrect Colorado 1099-G as a result of a fraudulent Unemployment Insurance Claim, contact the Colorado Department of Labor and Employment (CDLE) to request a corrected, zero’d 1099-G at cdle.colorado.gov/tax-form-1099-g.

• Additional resources can be found at Stopfraudcolorado.gov.

claimed in his or her name until receiving a tax document.

Authorities say the fraud is being perpetrated primarily by sophisticated international crime rings, which know how to steal people’s names and Social Security Numbers or buy them on the dark web. No one knows when the information was acquired. “Was this information taken recently? Or was it acquired two or three years ago?” Goodrich questions. “So far, it hasn’t been traced to who did the hacking.”

Colorado isn’t alone. Unemployment insurance fraud is flourishing in the U.S. Unemployment offices around the country are so overwhelmed in the wake of tens of millions of people filing for support during the pandemic that they can’t keep up. At this point, local law enforcement agencies aren’t even

trying to catch fraud perpetrators. “Most police departments are declining to even take a report,” Coet says. “They can’t follow up on the number of claims.”

Bank of America, another distributor of the debit cards, has been named in a class-action lawsuit that claims the bank didn’t do enough to stop the scammers.

IS THERE A SOLUTION? On Jan. 10, CDLE launched a new unemployment system, cdle.colorado.gov/myui-plus, with multiple triggers to catch fraudulent claims before the money is sent. But the nets created to catch the criminals spawned a new problem: People with legitimate claims are going without money while trying to disentangle themselves from a system where CONTINUED ON PAGE 14 March/April 2021 | www.cocpa.org

13

LABOR AND EMPLOYMENT CONTINUED FROM PAGE 13 wait times for assistance can extend for more than a month.

SCRAMBLING TO HELP CLIENTS Goodrich says when clients receive CDLE notices, they immediately assume the firm has done something incorrectly. “When a penalty notice comes from a taxing authority, the client always wants to know what you’ve done wrong,” he says. “We explain there has been fraud, and we contact the state for the client, but each individual has to contact the state as well. It’s involved, and it takes time. Who pays for that hour or more?

That’s the hard part. We have nothing to do with it, but we’re performing a service for our client. From a business perspective, do you bill, or do you not bill for it? Will it ruffle the client’s feathers?”

Unfortunately, Goodrich says, there’s really nothing individuals can do to protect themselves from this fraud. “This happened because criminals have so much of our personal information, and that’s a scary thing.”

Coet says, “I’m grateful clients are turning to us as the trusted advisors, but we don’t have the answers in this case. Because this is a state agency issue, we turned to the COCPA so we can speak with one voice as a profession.”

Coet adds her office has been helping clients protect themselves by distributing information as they receive it from trusted sources.

“We’ve let them know it isn’t our office generating these notices, that it’s a multi-state issue, and billions of dollars are involved.

We also let them know this is going to be an ongoing problem until the State of Colorado can get their hands around it and turn off the spigot.”

COCPA CEO Mary E. Medley says she understands the frustration taxpayers and COCPA members are experiencing. “The COCPA has been hit with fraudulent claims, too - one of which was in my name. We’re working with CDLE representatives to identify ways we can help.”

Watch for updates in NewsQuick, the weekly COCPA member e-newsletter, and future webinars on the issues. And, in the meantime, respond to those notices. “You must notify CDLE of a fraudulent claim within the time period specified on the notice,” Medley urges. “Otherwise, the process continues, as if the claim is legitimate.”

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STATE OF THE PROFESSION

The Pandemic Effect: Why the Accounting Profession is More Important Than Ever

BY NATALIE ROONEY

How many times this past year has “unprecedented” been used to describe the pandemic and its impact? Overused term, yes. But accurate? Also, yes. Barry Melancon, CPA, CGMA, President and CEO, American Institute of CPAs and CEO, Association of International Certified Professional Accountants, discusses the accounting profession’s unprecedented year and what makes CPAs so valuable to the business community.

TRULY THE TRUSTED ADVISORS “Trusted advisor” has never more accurately described the CPA profession than in this past year. From a business perspective, the pandemic has had a disproportionate impact on small businesses,” says Barry Melancon, CPA, CGMA. As a result, the relationships small businesses, in particular, have with their accountants have been enhanced along the way.

There are 30.7 million small businesses in the U.S., which account for 99.9 percent of all U.S. businesses (SBA, 2019). Small businesses with fewer than 20 employees account for 89 percent of all businesses in the country, and nearly all of them have a relationship with a CPA. While some have a CPA on staff, a majority of small business owners turn to CPA firms to support them in good times and bad.

an even higher degree than ever before.”

On the corporate side, Melancon says accounting professionals have risen to the occasion as well, as their organizations have expected agility in scenario and business planning to help make critical decisions.

THE FUTURE OF THE PROFESSION How does this translate for young people contemplating what to do with their lives?

Overall enrollment in universities is down 14 percent with more than 560,000 students choosing to sit out the academic year that began in fall 2020. “Accounting will naturally experience a piece of that decline,” Melancon says. “As we come out of the pandemic as a society, we need to reengage with high schools as a key strategic effort. What we will experience is people who are sophomores, juniors, and seniors who have spent an inordinate amount of time at home and have a higher propensity to sit around the dinner table with their families. They will see the world through a different lens - where

Small businesses with fewer than 20 employees account for 89 percent of all businesses in the country, and nearly all of them have a relationship with a CPA. Over the past two decades, firms have worked to build relationships with their clients, Melancon says, and that has shown to be vitally important over the past year. “This year has been about the transformation of businesses,” he says. “Small businesses have looked to their CPAs as trusted advisors to

people lost jobs. They’ll wonder how they make a difference.”

This is where state CPA societies come in – by communicating how well the profession did during the pandemic and how accounting professionals helped so many small businesses and people.

“Young people will want to hear that sense of purpose and the importance, not just of the numbers, but helping people in that trusted advisor role,” Melancon says.

Beyond the U.S. borders, the world is focusing more on Environmental, Society, and Governance (ESG) issues, and the accounting profession also is playing an important role in that space. Melancon says this, too, will also resonate with the younger generation.

Certain industries have exploded during the pandemic. Technology, manufacturing, and supply chain management are just a few examples. “The roles of CPAs in supply chain management are going to change,” Melancon explains. “People want more assurance in the supply chain, and management accountants are being called upon to provide more controls. It is important work.”

THE IMPACT ON WOMEN IN THE PROFESSION Data from multiple studies, including one by Pew Research, reveal that women’s careers have been hit hard by the pandemic. In September 2020, an eye-popping 865,000 women left the U.S. workforce — four times more than men. Data released in January 2021 showed employers cut 140,000 jobs in December 2020, signaling that the economic recovery from the coronavirus pandemic is backtracking. Digging deeper into the data also reveals a shocking gender gap: Women accounted for all the job losses, losing 156,000 jobs, while men gained 16,000.

Not only have women lost the most jobs from the beginning of the pandemic, but also many are now seeing no path ahead but to quit working.

CONTINUED ON PAGE 16 March/April 2021 | www.cocpa.org

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STATE OF THE PROFESSION CONTINUED FROM PAGE 15

ZOOMING WITH AICPA COCPA Vice Chair/Chair-elect Randy L. Watkins and Mary E. Medley, CEO, met virtually with AICPA Chair-elect Bill Pirolli and AICPA President and CEO Barry Melancon in preparation for the new leadership year.

“I love the ingenuity, the innovation, and the agility we’ve shown.”

Once again, the accounting profession isn’t immune. Melancon says the topic of women leaving the profession comes up frequently when he speaks to the leaders of the top 100 firms. “I hear overwhelmingly that this group of people is leaving the workforce because of the pressures of working and being at home,” he says.

So how does the profession come back from this hit after so many years of gains? “We can learn from history,” Melancon advises.

For roughly the past 30 years, new entrants into the accounting profession have been split somewhat evenly between males and females. Now, with the pandemic threatening to upend that progress, how firms accommodate that “off-ramping” process, regardless of whether someone is male or female, will dictate the direction the statistics head next. “We must set up these individuals to come back,” Melancon says.

“We’ve seen over the past few decades that to address this particular problem, a solution needs to be applied rigorously as we face challenges we’ve never faced before.”

Again, Melancon says state CPA societies are well-positioned to be the center point.

“That outreach needs to be happening,” he says. “CPA volunteers need to be aligned and effective with the messaging that accounting is a great profession. It’s a big project, but 16

NewsAccount | March/April 2021

one that state societies and volunteers can make happen.”

REMARKABLE PEOPLE What does Melancon still love about the accounting profession? He says that’s easy.

“We are so blessed as a profession. We have this incredible cadre of people. They’re stalwarts in their communities. They’re responsible, ethical, and hardworking. It’s really hard to find another collection of people anything like that.”

It’s time, he adds, to be incredibly proud to be a CPA. “I love the ingenuity, the innovation, and the agility we’ve shown. Firms have transformed. CFOs have led transformations at their organizations. The skill set of the profession over the years has attracted all of these people with these values. It’s just a remarkable set of people.”

Make no doubt, says Melancon, 2021 isn’t going to be easy. “Our profession did a great job in 2020, but a lot of work is stacked into 2021.” He references holdover tax issues on top of new tax issues, PPP loan forgiveness, an ongoing backup at the IRS, major legislation to support American citizens, a new president, and a new Congress. “This goes beyond work compression. It’s a stacking because everything is coming on top of everything else.”

HOW SHOULD CPAS PROCEED? First and foremost: Prepare. Be excellent communicators. Set expectations, and help clients understand. “Businesses need us now more than ever,” Melancon asserts. “Turning the calendar to a new year isn’t a panacea; communicating is critical.”

Rely on technology such as tax software.

Look for resources, including everything the AICPA is doing to help small firms and those in industry.

And if you’re not already comfortable talking about and addressing mental health, it’s time to take the steps to get there.

Every year, one in five adults experiences mental illness, and the pandemic has exacerbated this as researchers anticipate a “collective trauma” associated with COVID19. The average rate of depression or anxiety since the start of the pandemic has risen to 32.12 percent.

“People are experiencing mental health issues as a result of working from home, boredom, isolation – you can go down the list of reasons,” Melancon says. “Be comfortable in your own skin talking about mental health, and make sure your people are talking to their people, up and down the channel. It’s about demonstrating care and not being superficial. Talking about mental health makes people uneasy, but if you’re going to be an employer and a friend, this is something we need to do as CPAs and leaders.”

And, take care of yourself, too.

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GROW YOUR LEADERSHIP SKILLS AND NETWORK WITH OTHER YOUNG PROFESSIONALS

LeadFit 2021, sponsored by the Colorado Society of CPAs, is a program specifically for CPAs and CPA-track accounting professionals who are looking to grow professionally and personally.

APPLY AT COCPA.ORG/LEADFIT

Application Deadline: July 1, 2021

Session Dates Check out the 2021 dates – which you must commit to attending – and plan now to become leadership fit:

JUL. 22

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Session One – Part 2

AUG. 20

Session Two

SEPT. 24

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OCT. 21

Session Four – Part 1

OCT. 22

Session Four – Part 2 and Graduation

After being accepted, your sponsor will be invoiced for the $1,485 program fee.

The program is recommended for 24 hours of CPE credit in the Communications field of study.

FEDERAL UPDATE

PPP Round One Forgiveness and PPP Round Two: What’s New?

BY NATALIE ROONEY

In March 2020, the early days of the COVID-19 pandemic, the Coronavirus Response and Relief Supplemental Appropriations Act (CARES) provided some relief for businesses, dispersing more than $525 billion through the Paycheck Protection Program (PPP).

N

ow, while forgiveness of PPP round one is underway, business owners are getting another chance at $284 billion worth of potentially forgivable loans through PPP round two, aimed at keeping companies alive and employees on payrolls during the ongoing coronavirus pandemic.

Business owners who received a loan last year and fully used those funds on eligible expenses may be eligible for a second loan if they meet certain requirements for size, revenue decline, and other criteria. This time, the loans cover more business expenses, are open to a wider range of businesses including destination marketing groups, newsgathering operations, and 501(c)(6) organizations (subject to certain restrictions). And, they come with the assurance that approved expenses paid for by the loan will be tax-deductible.

The expanded eligibility could provide much needed relief for Colorado businesses and organizations, given the Centennial State’s reliance on tourism.

A special provision exists for hoteliers, food and beverage operators, and other entities with an NAICS code that begins with 72 (Food and Accommodation Services) which have been especially hard hit by the pandemic to receive a higher loan amount based on average monthly payroll than in the first round of PPP. The expanded eligibility could provide much needed relief for Colorado businesses and organizations, given the Centennial State’s reliance on tourism, says Lisa Simpson, CPA, CGMA, AICPA Vice President – Firm Services. “Expanded eligibility, expanded eligible costs, and new categories of costs that borrowers can use toward forgiveness are all good news,” she says. “For example, retailers who might have installed plexiglass shields can now use those expenses for loan forgiveness.”

ROUND ONE FORGIVENESS UNDERWAY One of the key roles CPAs have played over the past year has been helping clients apply for PPP funds. Now, the work is in figuring out how and when to file for forgiveness. On Jan. 12, 2021, the Small Business Administration (SBA) announced it had granted nearly 85 percent of the applications for PPP loan for18

NewsAccount | March/April 2021

giveness to date. Borrowers of $50,000 or less have fared even better, with an 88 percent forgiveness rate.

So far, the SBA has forgiven more than $100 billion of the $170.5 billion requested in applications. The initial run of the PPP, which ended Aug. 8, 2020, saw more than $525 billion loaned out to America’s small businesses.

As the new round of relief that began in January collides with the forgiveness process for many people who received funds in the first round, CPAs continue to help clients figure it all out.

Kurt Oestriecher, CPA, partner in charge of accounting and auditing services with Oestriecher & Company, CPAs, teaches for state CPA societies around the country and assists his clients. “There is definitely a lot going on right now,” he says. “More than anything else, our clients need our time.”

Oestriecher predicts applications for forgiveness will ramp up sharply as entities that waited to see how the tax implications were going to fall out get clarity from the IRS and SBA. The Economic Aid Act signed on Dec. 27, 2020, answered a big question: Yes, businesses are able to deduct the expenses related to their PPP loans. “That was the single biggest reason people have been waiting to begin the forgiveness process,” Oestriecher says.

Simpson cautions that while the deductibility issue has been resolved at the federal level, there might be some state conformity issues.

“Some states may not adopt that same stance, which may present a challenge for taxpayers and their CPAs,” she says. (Editor’s Note: Colorado will follow the federal treatment for calendar year-ends. See the alert on page 11.)

With the scramble to apply for forgiveness happening on the heels of an extended 2019 filing season, alongside the start of a new season, and also during a time when government audits were pushed back, Oestriecher says many practitioners are experiencing a backlog of work.

Simpson advises, “Have patience on applying for forgiveness. Borrowers have until ten months from the end of their covered period to begin making PPP loan payments or apply for forgiveness. While firstround borrowers are closing in on that mark, if they can be patient and let CPAs get through this filing season, it will help.”

CLARITY AND CAUTION Currently, PPP loans can be forgiven if at least 60 percent (down from 75 percent) of the money is spent on employee payroll costs, with the other 40 percent going for other allowable expenses, including qualifying mortgage interest, rent or lease payments, utilities, business operating costs, certain property damage costs, supplier costs, and worker protection expenditures.

Ultimately, Oestriecher says a majority of his firm’s clients have found they are able to qualify for forgiveness using just wages alone, especially since Congress extended the time businesses have to spend their PPP funds from eight to 24 weeks. “Businesses are easily spending one hundred percent of their PPP funds just on wages,” he says.

Oestriecher also advises S corporation shareholders and partners to be aware of tax basis related issues. PPP loan forgiveness is treated as tax exempt income, and the amount of the forgiveness would increase the tax basis in the S corporation stock and partnership interest. “I’m advising people attending my CPE courses of this situation,” Oestriecher says. “Once Congress resolved deductibility, basis became the number one issue.”

Another area to consider: C corporations. “Now that you can deduct expenses related to a PPP loan, many C corporations may have a net operating loss,” Oestriecher explains. “Under the CARES Act, you can carry that back for five years. Practitioners need to be looking at whether it’s better to carry the loss back five years or carry it forward.”

YOU’VE GOT THIS The AICPA has worked throughout the entire PPP process to engage with a broader ecosystem. “We’ve been working not only with the Treasury, IRS, SBA, and payroll providers but also with lenders to create a full circle of conversation so we’re all engaged in driving a common understanding of the process,” Simpson says.

The AICPA relied upon state CPA societies and grassroots outreach to members of Congress to achieve deductibility. The result was the provision addressing tax deductibility in the Consolidated Appropriations Act of 2021. “It took a lot of work and involved a lot of people,” Simpson says.

Additional advocacy efforts include advocating for a streamlined relief process for penalties when taxpayers couldn’t file on time and asking for quick guidance on how the PPP and the Employee Retention Credit work together, especially if PPP borrowers might have applied and used more payroll cost than needed.

“We want to make sure the IRS and the SBA are producing guidance that makes sense and is beneficial to these small business owners,” Simpson says.

Overall, Simpson says that most aspects of both rounds of PPP have been positive for borrowers. Even though forgiveness is still complex for loans above $50,000, there is now more flexibility. Borrowers can choose a covered period between eight and 24 weeks and can take advantage of an increased number of expense categories. “There’s no automatic forgiveness that many borrowers were looking for, but forgiveness is more achievable,” she says. “The changes have been designed to make it more streamlined and easier for the loan to be forgiven if the funds were used appropriately.”

The economic crisis and opportunities to explore business relief funding have given members a better window into how their small business clients are really operating. “Now CPAs can step into the role of trusted advisor at a much higher level,” Simpson emphasizes. “Yes, you have to get the tax returns completed. And, at the same time, look for other opportunities to keep those client relationships strong and to support your business clients in meeting their business challenges.

You’ve got this!”

The AICPA offers many resources to CPAs and the public at www.aicpa.org/sba, including a PPP Summary after Economic Aid Act at future.aicpa.org/resources/download/summaryof-ppp-after-enactment-of-the-economic-aid-act. You can access the information with a free AICPA website account.

Additionally, AICPA experts discuss the latest on PPP and other small business aid programs during its virtual town halls. The webcasts, which provide CPE credit, are free to AICPA members. More information is available at www.aicpastore.com/ townhallseries.

March/April 2021 | www.cocpa.org

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ACCOUNTING AND AUDITING STRATEGIES

Top Audit Challenges in 2021: Peer Reviewers Weigh In

BY DEANA N. THORPS, CPA, MBA The following article is excerpted from Deana Thorps’s guest blog originally published on AICPA Insights, Feb. 12, 2021. Read the entire post at blog.aicpa.org/2021/02/top-audit-challenges-in-2021-peer-reviewers-weigh-in.

This year won’t be “business as usual” for auditors. Navigating a new revenue recognition standard and still dealing with pandemic-related disruptions, CPAs have worked hard to perform audits under uncertain circumstances since the pandemic began. That work will continue this year. We talked to more than 230 peer reviewers about the challenges auditors are facing. Here’s what they said.

TOP FIVE ASC 606 CHALLENGES: ACCOUNTING The Financial Accounting Standards Board’s (FASB) new revenue recognition standard, FASB ASC Topic 606, Revenue From Contracts With Customers, is one of the most significant accounting standard changes in history. The surveyed peer reviewers identified these top ASC 606-related accounting challenges: • Identifying performance obligations (31% of respondents) • Recognizing revenue (28%) • Identifying relevant contracts (26%) • Identifying variable consideration, including material rights (22%) • Determining appropriate transaction price allocation (16%) TOP FIVE ASC 606 CHALLENGES: AUDITING The top ASC 606-related audit challenges peer reviewers identified were: • Determining whether management appropriately applied ASC 606 (48% of respondents) • Documenting the understanding of key contract terms where necessary (30%) • Evaluating management’s process for developing the estimate(s) (28%) • Determining whether assumptions used by management were reasonable (23%) • Assessing associated risks (21%) The AICPA Revenue Recognition Toolkit provides resources that can help. Go to www. aicpa.org/interestareas/frc/accountingfinancialreporting/revenuerecognition.

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NewsAccount | March/April 2021

TOP FIVE PANDEMIC-RELATED CHALLENGES The abrupt shift to remote working, economic uncertainty, and new federal relief programs created numerous accounting and auditing complications for organizations this year: • Internal control (41% of respondents) • Compliance with CARES Act requirements (e.g., Paycheck Protection Program) (38%) • Going concern (33%) • Asset impairments (24%) • Revenue recognition (22%) The AICPA COVID-19 Audit & Assurance Toolkit, future.aicpa.org/topic/audit-assurance/ covid-19-audit-assurance, is another valuable

source for information on auditing remotely as well as auditing clients affected by the pandemic. The resources cover topics such as fraud risk, issuing an appropriate auditor’s report, and Paycheck Protection Program implications.

Deana N. Thorps, CPA, MBA, is a Manager, Audit Quality Initiatives, with the Association of International Certified Professional Accountants.

TAX STRATEGIES

The 2020 Teleworking Tax Nightmare

BY NATALIE ROONEY

For many people working remotely during the pandemic, tax season could get complicated if they’ve chosen to shelter in place in a different state. It’s a problem for both employees and employers, and few are aware of it.

I OWE WHAT? WHERE? States currently have inconsistent standards and requirements for employees to file personal income tax returns when traveling to a nonresident state for temporary work periods, and for employers to withhold income tax on employees who travel outside of their state of residence for temporary work periods.

and have conversations about it with clients,” he advises. “It’s a pretty big education process. For those small to medium business clients who have had sales reps who stayed put in 2020, it’s a big deal. They’re open to hearing about solutions. The solutions won’t be perfect, but it will show that you’re trying to solve a problem. Explain you’ve identified a risk and need to discuss it with them.”

More than half of remote workers polled by the AICPA said they were unaware that they could face tax consequences if they didn’t adjust their state tax withholding to reflect their work situation.

Proposed federal legislation to address the issue dates to the early 2000’s, but Hubbard says none of it ever moves very far. “It will be interesting to see if 2020 will force Congress to move something forward.”

Further, more than seven out of 10 remote workers were unaware that teleworking from a different state could affect the amount of state taxes owed. While remote work and state tax implications have been a problem for a long time – just ask anyone who has been traveling to client sites every week for years – Dustin Hubbard, CPA, Principal at CLA, says the problem was far more widespread in 2020 as we all worked from everywhere but the office.

Hubbard says businesses are having to make decisions, sometimes by setting a minimum threshold across all the states. “They know it’s risky, but it’s hard for them to stay on top of 50 states. Thus, many decide they’ll do ‘X’ across the board and move on. It is something people need to think about. This problem isn’t going away anytime soon, and it’s getting more complicated.”

Over the course of his career, Hubbard has always had to file two or three different state returns because of his travel. “As a firm, we know we have to comply with these rules, but most companies don’t. They either aren’t aware of the rules or know about them and have determined that compliance costs are too burdensome.”

In some places, like Colorado, workers could owe taxes to their temporary state after just one day of work. Other places tax only after a 30-day stay. Often, a taxpayer gets a credit from the home state for taxes paid to another, but it’s not always a break even situation.

Hubbard says some states, especially those in the northeast, have reciprocity agreements because so many people commute from one to the other.

According to the AICPA, 13 states and the District of Columbia have addressed the 2020-specific situation by saying they won’t tax workers who’ve relocated there temporarily due to the pandemic.

Instead, those people will pay taxes to the state where their employer is located, as usual.

But even those policies can vary by state when it comes to how long the exemption is in effect. “So, when stay-at-home orders are rescinded, does that change the answer?” Hubbard questions. He gives an example of a Colorado company with an employee working from home in Wisconsin. “Does the rule change when Colorado rescinds the order? Or when Wisconsin does? And if that employee has been in Wisconsin since March, and you haven’t been withholding in Wisconsin or you’ve been withholding at Colorado rates, the Wisconsin return is subject to penalties, and you’re overheld in Colorado.

It’s a rabbit hole.”

EDUCATING CLIENTS CLA has been bringing this state tax issue to clients’ attention through social media and weekly webcasts. “At the end of the day, we don’t make the decisions for clients, but CPAs need to be aware of the issue

“Now, we need consistent tax treatment to overcome this patchwork of complicated, nonresident income tax laws.”

While Hubbard appreciates the challenges of dealing with “this continued web of uncertainty” in inconsistent state tax laws, he says there needs to be some sort of level setting to make compliance easier for business owners. “Wayfair put a bright line in place for sales tax nexus,” he says. “Now, we need consistent tax treatment to overcome this patchwork of complicated, nonresident income tax laws.”

COLORADO TAXATION OF NONRESIDENT WORKERS Generally, there is not a minimum number of work days that a nonresident employee must work in Colorado before an employer is required to withhold from wages. There are three limited exceptions. Employers need not withhold from employees whose income is exempt under 39-22104(4)(t) (nonresidents performing disaster-related work) or 39-22-104(4)(u) (active-duty service by an individual who has reacquired residency in the state under section 39-22-110.5).

Also, there is an exception in 69-22-604(2)(a) for a nonresident who performs services in connection with any phase of a motion picture, television, or television commercial production for less than 120 days during any calendar year. Otherwise, the statute does not provide any minimum number of work days before withholding is required.

March/April 2021 | www.cocpa.org

21

DIVERSITY, EQUITY & INCLUSION

New Research Reveals Significant Diversity Gap

O

n Feb. 16, the Institute of Management Accountants and the California Society of CPAs released groundbreaking research findings in their joint study, “Diversifying U.S. Accounting Talent: A Critical Imperative to Achieve Transformational Outcomes.”

This diversity, equity, and inclusion (DE&I) research study examines three demographic focus areas: race and ethnicity, gender, and LGBTQIA (lesbian, gay, bisexual, transgender, queer, intersex, and asexual) orientation in the U.S. accounting profession, encompassing public accounting and management accounting (accountants and financial professionals in business). The study also examines the role of ethics in the profession’s overall progress around DE&I and presents solutions to drive expansive change. The report is available at imanet.org/diversifying-accounting talent.

The first in a multi-part global series, this report is informed by results from an online survey of over 3,000 current and former U.S. accounting and finance professionals and interviews of nearly 60 accounting, human resources, and DE&I practitioners and academics.

The study found there is a significant diversity gap between those in executive leadership ranks and the broader accounting profession as well as the U.S. population. For example, African Americans make up 8.5% of the profession but only 1% of partners at U.S. CPA firms and 1.5% of CFOs of Fortune 500 and S&P 500 companies. The survey revealed diverse talent believes they aren’t advancing in the profession because of a lack of equity and inclusion.

43-55%

of respondents from groups underrepresented at senior levels left their employers due to a perceived lack of equitable treatment.

The study found that 43% to 55% of respondents from groups underrepresented at senior levels left their employers due to a perceived lack of equitable treatment, and at least 30% left because of a lack of inclusion. As many as 18% of the respondents from diverse demographic groups left the profession altogether due to these factors.

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NewsAccount | March/April 2021

“The diversity gap between senior leadership and the broader accounting profession is a huge wake-up call that this needs to be fixed through real solutions,” said Anthony Pugliese, CPA, CGMA, CITP, former CalCPA President and CEO who becomes Institute of Internal Auditors President and CEO, March 8, 2021. “More diverse leaders are needed to connect people of all backgrounds to the profession and to serve as role models so we can retain and develop the next generation of talent.”

“More diverse leaders are needed to connect people of all backgrounds to the profession and to serve as role models so we can retain and develop the next generation of talent.”

The study concluded that for the profession to continue to grow and succeed with a robust talent pipeline, actions to address DE&I issues need to be taken now. This includes bringing in and promoting talented people based on relevant and unbiased factors rather than demographics.

The report acknowledges DE&I improvement efforts that already are underway and suggests action in four areas: awareness, attraction, promotion, and accountability.

“If we collaboratively work to close the diversity gap, it will not only have a positive impact on the front-end pipeline of candidates coming into the profession, but also it will work to curb the loss of talent we are seeing,” said Brad Monterio, CalCPA Chief Learning Officer and CalCPA research lead on the project.

Several partners worked with IMA and CalCPA on this research study, including The International Federation of Accountants (IFAC), the National Association of Black Accountants (NABA), the Association of Latino Professionals for America (ALPFA), the National Society of Black CPAs (NSBCPA), the PhD Project, Connecticut Society of CPAs, Colorado Society of CPAs, Florida Institute of CPAs, Illinois CPA Society, Maryland Association of CPAs, Massachusetts Society of CPAs, The Ohio Society of CPAs, Pennsylvania Institute of CPAs, and Texas Society of CPAs. For more information, visit imanet.org/diversifying-accounting-talent.

HUMAN RESOURCES

Mental Health in the Workplace Are You Ready?

BY LISA HACKARD, CPA, AND JAYNE GUARE, MPH, CPH, CWWS This article is the fifth in a series addressing mental health in the workplace. Author Lisa Hackard is joined by co-author Jayne Guare, KPMG LLP’s dedicated well-being ambassador with Aetna, to highlight the importance of prioritizing mental health in the workplace and to share examples of leading practices.

L

ast year at this time, just as we were hitting the home stretch of some critical deadlines for our profession, we found ourselves grappling with the early stages of pandemic in the U.S. We were forced to shift to a remote-work environment and saw every aspect of life turned upside down. Few of us were ready.

We didn’t see the change coming, and we leaned heavily on each other to navigate the challenges of serving clients and employers, meeting deadlines, adjusting workloads and schedules, and making tough financial decisions to continue providing for our employees and families.

These days, many of us are doing our best to adjust to working remotely. We slide from one video call to another and have seen each other’s pets, family members, and sweatpants. For those of us with school-age children, we’re still learning how best to shift from fully remote to hybrid - and many of us dream of full-week, in-person classes. We’re building out our home gyms and gardens, learning to cook, and patiently waiting our turn for the vaccine.

But are we ready for the challenges we’ll face next? Many describe what’s ahead of us as a ‘mental health pandemic.’ We don’t have to look far to see headlines painting such a picture: • A Kaiser Family Foundation survey reported that 45 percent of Americans felt the pandemic is harming their mental health, with 19 percent reporting that it is having a ‘major impact.’

• A recent Pew Research Center poll reflects that 73 percent of Americans reported feeling anxious at least a few days a week since the onset of the pandemic.

“What does it say about me that I have a mental health issue? It says that I am human.”

• The April 2020 KPMG American Worker Survey found that more than half of the respondents said their mental health has worsened during the pandemic.

• The Substance Abuse and Mental Health Services Administration (SAMHSA) reports that one in four Americans has a mental or substance abuse disorder.

• The National Center for Health Statistics notes that suicide is now the tenth leading cause of death in the U.S. And the

percentage of medical claims associated with behavioral health (including both mental illness and addictions) more than doubled since 2007.

In a brave and deeply personal column, former McKinsey senior partner Lenny Mendonca revealed his struggles with debilitating depression, probing the pervasiveness of mental health issues and the implications of untreated mental illness. Reflecting on his diagnosis and process of recovery, CONTINUED ON PAGE 24 March/April 2021 | www.cocpa.org

23

HUMAN RESOURCES CONTINUED FROM PAGE 23 Mendonca wrote: “What does it say about me that I have a mental health issue? It says that I am human.”

Our profession is heavily dependent on our people. And we know they’re facing stress and strain – just as we are – because we are human. After all, who has experience dealing with a pandemic? So as we look ahead, an important question is whether we’re ready.

We didn’t see the COVID-19 pandemic coming, but we can see that the importance of caring for mental health is increasing rapidly.

The Wall Street Journal recently reported on the shifting skill set necessary for leaders.

Those leading resilient teams are more empathetic, able to really see and listen to their colleagues, encourage their progress, and coach them through challenges from the other end of the video stream. We already know how to help our employees work through the professional challenges they face (such as interpreting accounting, tax, or auditing standards), and we can build on those skills to help them navigate the challenges impacting their mental health (such as disconnecting from work to recharge, caring for others in their household, and prioritizing their own well-being).

The costs of mental health issues are substantial. In 2019, Forbes reported that

mental health and substance abuse cost U.S. businesses between $80 billion and $100 billion annually, with serious mental illness costing America up to $193 billion in lost earnings per year. Depression is estimated to account for up to 400 million lost workdays annually. However, focusing on mental health as a priority is a good investment. The World Health Organization estimates that every $1 invested in treatment and support of mental health disorders sees a return of $4 in improved health and productivity.

As accountants, we are pillars of our communities and play a key role in assuring confidence in our financial markets. Through our behaviors, we demonstrate how we uphold professional standards, including the COCPA and AICPA Codes of Professional Conduct. The principle of due care, which obligates us to perform professional services to the best of our ability with concern for the best interest of those for whom our services are performed, consistent with the profession’s responsibility to the public, provides us with a basis to consider the impacts of our own and others’ mental health.

For optimal well-being and performance, employees need to thrive not just physically but mentally and emotionally as well.

Employees are experiencing magnified levels of stress, burnout, anxiety, and depression due to the impacts of COVID-19, but these

issues had been plaguing many employees long before the pandemic. Fortunately, more companies are aware of the urgency of this issue.

To varying degrees, many employers now aim to more actively support their employees’ stress management and well-being. This will continue to be necessary to fight with all the expertise and awareness they can muster even after the pandemic subsides – providing tools and resources for individuals to build resilience and manage their mental wellness while also implementing company-wide policies and procedures that foster healthy mental well-being. KPMG sets the bar for building a culture that supports mental wellness and encourages others to evaluate where enhancements could be made.

For example, KPMG offers Aetna’s Resources for Living, an Employee Assistance Program, including digital resources, online therapy options, resilience tools, and ten free counseling sessions per topic, per year (in person or virtually). This extends to family members, too, as the well-being of those around us has an impact on our own well-being.

KPMG’s mindfulness resources include a library of audios and videos, a comprehensive resilience guide, and the option to attend a series of live mindfulness sessions, either individually or with groups ranging

For optimal well-being and performance, employees need to thrive not just physically but

mentally and emotionally as well.

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NewsAccount | March/April 2021

from smaller teams to hundreds nationwide.

Supporting employees’ mental well-being involves understanding specific needs of certain sub-populations, such as caregivers, who often report feeling overwhelmed and burned out from balancing work and home responsibilities. Addressing this population is a priority for KPMG, especially in light of COVID-19, by providing back-up care options, small group sessions to discuss challenges for caregivers, mindfulness sessions geared towards caregiving, and larger topic-specific sessions led by experts to provide tips and best practices. Leaders at all levels now have access to a guide full of tips to manage their personal mental well-being and how best to support their employees’ mental wellness.

AS ORGANIZATIONS

KPMG’s Denver office went further, creating a guide to planning for and taking paid time off that has since been shared nationally.

Shaping a culture that supports mental well-being in the workplace requires leadership support, such as promoting existing resources, leading by example, and encouraging employees to use the benefits and resources available.

Let’s be ready. We didn’t see the COVID-19 pandemic coming, but we can see the mental health impacts coming. Let’s refresh our personal and organizational goals and strategies.

And as we do so, consider how and where we can enhance our leadership on mental health matters, as part of a foundation for professional and personal achievement. Below are some suggestions.

AS INDIVIDUALS

Evaluate mental health aspects of benefits and other resources, including ease of use, access, and whether there are gaps compared to what employees need.

Check in with colleagues regularly, individually and in groups. Ask how they are doing, and truly listen to their verbal and non-verbal replies.

Foster individual and small-group conversations about mental health.

Consider whether formal and informal communications on mental health are sufficiently prominent, inclusive, and contributing to building a culture where health and well-being are valued.

Start or enhance 1-2 new habits (such as daily time outdoors, healthy eating, or regular exercise) to support your mental health and share your examples with colleagues.

Revisit holidays*, paid time off policies, and flexible/alternative work arrangements.

Know your organization’s and community’s resources. Be ready to refer colleagues should you see signs indicating they could benefit from receiving care or more information.

*Many organizations, including KPMG, now recognize MLK, Jr. Day as a paid holiday, supporting the importance of this day to the mental health and well-being of people of color.

Encourage leaders to share their stories on mental health topics, and consider hosting workshops related to mental health.

Take paid time off, and truly disconnect to refresh and recharge.

Encourage others to do the same, and refrain from interrupting others’ paid time off.

ADDITIONAL ARTICLES IN THIS SERIES In the July/August 2020 NewsAccount, Lisa Hackard shared her story and the events that led her to become a passionate promoter of mental health. In the September/October NewsAccount, Lisa discussed mental health as a foundation for achievement. In the November/December article, Lisa was joined by KPMG professionals to share their stories of mental health. In the January/February NewsAccount, she addressed common questions about suicide awareness and prevention, with mental health professional Alex Yannacone, MA, from the Helen and Arthur E. Johnson Depression Center at the University of Colorado Anschutz Medical Campus.

Lisa Hackard, CPA, is an Audit Partner with KPMG LLP and the National Chair of KPMG’s Abilities in Motion Business Resource Group, which raises awareness of, and supports, people with disabilities and those who are caregivers for people with disabilities. Lisa envisions a time when we’re just as comfortable talking about mental health as we are talking about physical health, recognizing the importance of mental health as a fundamental part of professional and personal achievement.

Jayne Guare, MPH, CPH, CWWS, Aetna, is a dedicated well-being ambassador for KPMG LLP. She has a graduate degree in Public Health with a background in nutrition and wellness. Jayne started her career as a telephonic health coach and transitioned to an onsite health coaching role. She has worked in the disciplines of wellness programming, implementation, and evaluation, employee engage, and wellness communication and marketing.

March/April 2021 | www.cocpa.org

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PERSPECTIVE

Where There’s Humor, There’s Hope

BY GARY BURNISON, CEO, KORN FERRY

A time to be born, a time to die, A time to plant, a time to reap…

A time to laugh, a time to weep - TURN! TURN! TURN! BY PETE SEEGER

I

was a new CEO, making one of my first live TV appearances. Somewhat nervous and wanting to gather my thoughts, I grabbed an espresso-to-go and walked down Wall Street before heading to the studio. Mentally rehearsing my message points, I strolled through the old cemetery at the historic Trinity Church - perhaps hoping for a little inspiration from above. Instead, I got something else from on high.

A pigeon flew over and dropped a “gift”—all over my head. Stunned, I stood there in my best pinstriped suit, knowing I was going to be on air in 30 minutes.

When I got to the green room at the TV studio, the makeup artist gave me a strange look. “You won’t believe what happened,” I told her and started to explain. “You’ve got bigger issues than pigeon poop,” she said in her heavy New York accent. “Those bags under your eyes have gotta go.”

Opening a drawer, she took out a tube of Preparation H, of all things, and rubbed it under my eyes to reduce the swelling. It was all so absurd, I just started to crack up. And just like that, my nervousness was gone. Humor steadied me in the moment.

More than ever these days - with so much pressure on people, and so many suffering losses - we all need a time to laugh. I know that sounds completely contrarian. And it certainly doesn’t mean that we should ever make light of the crisis and hardships shouldered by others. But even in the depths of sorrow, laughter truly is good for the soul.

Earlier in my career, if someone had asked me to describe a great leader, I probably would have said someone with vision, confidence, courage, strategic thinking, a growth mindset… But a sense of humor - not so much. Except humor can be a potent leadership tool when wielded with emotional intelligence - empathy, to know what the other person is going through; authenticity, to see ourselves and others clearly; and humility, to be able to laugh at ourselves.

A few years ago, two colleagues were locked in a very tense situation. I asked them both to fly to Los Angeles so we could hash out the issues. Seeing them on the opposite sides of the conference table, I felt like we were hammering out a peace treaty after some prolonged war. “Welcome to détente,” I said, off-the-cuff. One of them smiled and the other snickered - then we all burst out laughing. It was enough to change the narrative. They weren’t really adversaries; they were actually two colleagues passionately engaged in constructive conflict. By taking the personal out of it, they sparked collective genius. Instead of a battle, we got a brainstorm.

Post-pandemic, we all will need to lead differently and in a way that is “radically human” - with greater self-awareness and genuine connection with others. Imagine this as the aspiration for every organization: everyone united behind a bold purpose. But if people can’t move past how things used to be, to how they need to be, that won’t happen.

They need the right mindset.

But even in the depths of sorrow, laughter truly is good for the soul.

Humor, when used at the right time and in the right doses, can humanize leaders - making them far more relatable. Granted, it may not be for everyone. Some people just aren’t naturally funny. But when we look around and find a reason to laugh, it’s like the air is suddenly different in the room. The mood is elevated; people feel energized.

We see that life is bigger than whatever we’re going through in the moment. Here are some thoughts: • The pressure release. At Korn Ferry, we know what great leadership looks like - and we have nearly 70 million assessments to back it up. We test leaders constantly for traits such as emotional intelligence, self-awareness, resilience, connecting with and influencing others, and managing conflict. Admittedly, we do not test for a sense of humor. But it does come up in some surprising ways, as Stu Crandell, the global leader of our firm’s CEO and Executive Assessment Practice, told me this week. “When I question executives about how they create team resilience and optimism in tense high-pressure situations or conflict, often the answer includes humor. So, while it’s not the question, it may very

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NewsAccount | March/April 2021

well be the answer.” Humor is a legitimate leadership tool, and it takes a lot of intelligence (emotional and intellectual) to use it well.

It can become the release valve that lightens despair and disarms conflict.

• “No funeral without laughter, no wedding without tears.” An executive reached out to me the other day with a story about his mother, who in her late 90s contracted a serious infection that required hospitalization. As her condition worsened, the doctor gave the sad prognosis that she wasn’t going to make it. The time had come for the family to arrange hospice for her. Thinking that his mother was sleeping, the executive quietly approached the hospital bed and called out gently to her. Suddenly, this woman who had seemed near death a few minutes before, snapped her eyes open and replied in a heavy Italian accent, “I heard what you and the doctor were talking about. I am not going anywhere. I have five kids to take care of.” No matter that those five kids were all adults with families of their own. Two weeks later, she was well enough to be discharged from hospice - and lived another two years - nearly reaching 100 years of age. This story is a reminder that even at our saddest, there may be a reason to smile. We just may have to look closer to find it.

• Laugh together; stay together. It’s not just good to laugh. It’s also good for us, individually and collectively, as we experience a sense of well-being and belonging. As leadership guru Daniel Goleman, who writes extensively on emotional intelligence, observed: “A leader’s emotional self-awareness, positive outlook, and teamwork

play crucial roles in unleashing humor and fun at work… Teams that laugh together benefit from increased engagement, commitment, and productivity.” It’s the secret to sustainable success: when we’re happy, we’re motivated, and when we’re motivated, we’ll outperform.

• What are you laughing at? It’s a great question for self-reflection. Hamaria Crockett, one of our firm’s career coaches in our Korn Ferry Advance business, told me the other day that she often asks people: “What is something that has made you laugh?”

It always catches people off guard. After all, Hamaria is speaking with people at their most vulnerable moments - furloughed, fired, and fizzled out without any discernible trajectory, as well as fast-tracking and navigating their way forward. A small shift and suddenly they’re laughing. It’s like taking a deep breath - instant perspective. Hamaria shared one of her favorite sayings with me: “Laughter is like a windshield wiper. It doesn’t stop the rain, but it allows you to keep going.”

For family and friends, colleagues and clients, adding a dose of levity and authenticity can alleviate even the heaviest of downpours. We become relatable. We become more human. We don’t build walls of words; we help people climb over to reach us. Indeed, where there’s humor, there’s humanity.

This article is reprinted with permission of Gary Burnison, gary@kornferry.com.

stronger strategies for a

COMMUNITY

MAY 20-21, 2021 Virtual • CPE: 9.0

March/April 2021 | www.cocpa.org Register at COCPA.ORG/NOTFORPROFIT

27

LIFE SKILLS

3 Morning Habits That Help Achieve Strategic Impact

BY LUKE O’NEILL

S

ome of the most successful leaders live by the Chinese proverb that an hour in the morning is worth two in the evening.

Morning habits and routines are a big part of how they tackle the challenges of the role. These senior executives share a raft of common habits and routines that help them achieve strategic impact throughout the rest of the day.

They tend to wake up between 6am and 7am and often exercise before starting work, research by management consultants and recruiters suggests. Instead of checking their email first thing in the morning, they might practice about ten minutes of mindful meditation. Neuroscience studies suggest meditation can improve creative thinking.

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NewsAccount | March/April 2021

Some of the most successful leaders live by the Chinese proverb that an hour in the morning is worth two in the evening.

MOVE YOUR BODY “Each morning, I’m up by 6 for a five-mile run around my neighborhood,” said Richard Outram, CPA, CGMA, the CFO of Florida-based Cinch, a home services company.

“During this time, I typically listen to a motivational or business-themed podcast. After that, depending on the day, I’ll do a workout focused on either strengthening or toning. Once I’m done exercising, I shower and prepare for the day, which includes making a mental list of top priorities, a mindful download after self-reflecting the night before.”

The days starts at 6.30am for Hong Kong-based Louis Lin, ACMA, CGMA, an associate vice president and finance manager with global auctioneering company Christie’s. After waking, he takes 15 minutes to scan emails and his calendar to prioritize tasks and visualize the day ahead.

After the morning review, Lin wakes his son, and the pair does a 30-minute morning exercise together before Lin makes a one-hour trip to the Christie’s office. “I usually get off at Causeway Bay station and take a 30-minute walk on the Central Promenade along the Victoria Harbour, where I can breathe freely and enjoy the best view of Hong Kong. And this is when I can think about the difficult problems encountered at work — whether and how to break them down and delegate to my colleagues, how to communicate and present to different stakeholders.”

OWN YOUR TIME Erin Koss, CPA, is the CEO and CFO of Oregon-based Syte Consulting Group in the U.S. For her, slowing down, taking space, and what she calls “being incredibly intentional with how I spend my time” has been one of the best leadership decisions she says she has made in 25 years in management consulting.

fruitful work. My best ideas and innovations are developed during this time.”

Ganesh Prabhu, FCMA, CGMA, CPA (Canada), head of finance at law firm Stephenson Harwood in Dubai, takes time in the morning to get a sense of what kind of a day may lie ahead.

Before he drops his children at school, Prabhu catches up quickly on international news headlines. “This is usually five to six websites, covering news in the U.S., UK, Middle East, and Asia, followed by FT.com and finally a local newspaper,” he said. “Being abreast of political, economic, and social events helps me understand current affairs, opportunities, and challenges that would affect me personally and professionally and the business I work for.”

MEDITATE EARLY Koss’s morning begins with a combination of exercise, coffee, and prioritization — and meditation is among the first things she does each day. “Meditating helps ground me and ensures when I’m done I can more clearly and easily set priorities and focus on what matters most in each category I am responsible for, rather than chasing squirrels all day,” she said.

Outram, too, does a 15-minute meditation before his first meeting of the day, usually around 8am — the first ten minutes alone, in the quiet of his back patio, followed by a final five minutes of guided meditation with his wife.

“Meditation is key in our over-stimulated world,” Outram said. “This constant practice enables clarity of thought, focus, and concentration to perform at a high level.

Meditation also creates a space to reduce stress and anxiety as well as an opportunity for self-awareness and reflection on your impact on others, whether that’s in your work, family, or community life.”

“Creating the pace and space during the first half of the day allows for this to be very fruitful work. My best ideas and innovations are developed during this time.”

Koss says intentionally parsing out the day ensures she uses her brainpower effectively. “I’ve learned to do strategic thinking and slow work in the morning when I’m the freshest,” she said. “Creating the pace and space during the first half of the day allows for this to be very

Luke O’Neill is a freelance writer based in Australia. To comment on this article or to suggest an idea for another article, contact Sabine Vollmer, an FM magazine senior editor, at Sabine.Vollmer@aicpa-cima.com.

March/April 2021 | www.cocpa.org

29

SPECIALIZATION

Respond to Clients’ Needs with AICPA CFF® Credential

BY AMANDA ROSS EDWARDS PHD

A

s CPAs and their clients work through the massive business changes brought on by the coronavirus pandemic, they confront a variety of fraud schemes, business continuity issues, and damages concerns. Fraud in particular thrives in times of crisis as bad actors take advantage of fear and confusion. Certified in Financial Forensics (CFF®) credential holders have the knowledge and expertise to assist clients during these unprecedented times.

The CFF® is granted exclusively to CPAs and other recognized equivalents who demonstrate expertise in financial forensic accounting through their knowledge, skills, experience, and adherence to professional standards.

The CFF® adds credibility and indicates expertise and competency in areas that include: • fraud detection, prevention and response • financial statement misrepresentation • digital forensics • bankruptcy and insolvency • damages calculations and dispute resolution • expert witness services • investigations • family law services

With specialized knowledge in fraud matters, dispute resolution, damages calculations, and bankruptcy, CFF® professionals are well positioned to guide businesses through crisis management, recovery of operations, and future preparedness.

NOW IS THE TIME TO UPSKILL Responding to the COVID-19 crisis is a primary concern for clients and employers across the globe. With specialized knowledge in fraud matters, dispute resolution, damages calculations, and bankruptcy, CFF® professionals are well positioned to guide businesses through crisis management, recovery of operations, and future preparedness.

Earning the CFF® credential demonstrates the knowledge and busi-

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NewsAccount | March/April 2021

ness acumen of a CPA or recognized equivalent combined with financial forensic accounting expertise in a day and age where specialized knowledge has never been more critical.

To qualify for the CFF® credential, a candidate must: • Be an AICPA member in good standing • Pass the CFF® Examination • Obtain 1,000 hours of forensic accounting experience in the CFF® Body of Knowledge within the five-year period preceding the date of the credential application • Complete 75 hours of forensic-related continuing professional development (CPD) in the CFF® Body of Knowledge within the 5-year period preceding the date of the credential application • Hold a valid and unrevoked CPA certificate or license issued by a legally constituted state authority or recognized international equivalent There are multiple ways to earn the CFF® Credential. Study for the two-part comprehensive exam using the review course which includes The Essentials in Forensic Accounting textbook. Or, complete the Core and Specialized Forensic Accounting Certificate Programs.

Completion of both certificate programs and the corresponding exams satisfies all credential application requirements except for the 1000 hours of related business experience.

Visit aicpa.org/credentials to learn more about the CFF® credential, its benefits, and the pathway to becoming a CFF® credential holder.

Start your path toward becoming a CFF®, and register for the CFF® Exam today.

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© 2019 Association of International Certified Professional Accountants. All rights reserved. CGMA and Chartered Global Management Accountant are trademarks of the Association of International Certified Professional Accountants and are registered in the United States and other countries. The Globe Design is a trademark owned by the Association of International Certified Professional Accountants.

March/April 2021 | www.cocpa.org 31 1908-16985

IN MEMORIAM James “Jim” G. Nussbaum

James “Jim” W. Grimsley

September 12, 1935 - January 26, 2021

January 8, 1937 - February 24, 2021

COCPA President, 1980-1981

COCPA President, 1982-1983

U.S. Army veteran Jim Nussbaum was the quintessential gentleman and CPA, whether leading the Denver office of PriceWaterhouse LLP; running a COCPA Board of Directors meeting; fundraising for and serving his church; serving the Boy Scouts of America Denver Area Council, Denver Lions, and Nonprofit Leadership Alliance; or playing a round of golf where he often shot his age.

He led the COCPA during interesting times, when report reviews were voluntary and peer review focused on members of the AICPA Private Company Practice Section. Even then, the profession was intent on improving audit quality.

The Colorado State Board of Accountancy underwent Sunset Review during Jim’s term, and all were surprised when the Department of Regulatory Agencies recommended - unsuccessfully - to deregulate the Colorado CPA profession and discontinue the State Board. What did pass, in addition to the State Board’s continuation, was elimination of the fifth year of education to become licensed. It would be another 34 years before the 150-hour requirement would become Colorado law.

Jim loved God, his family, his church, his profession, his community service work, and his golf. His light continues to shine for all of us who knew him and remember fondly his ever present smile.

- Mary E. Medley Donations in Jim’s memory may be made to the Denver Lions Foundation, www.denverlions.org, 1373 Grant St., Denver, CO 80203.

Jim Grimsley was a former Marine, former mayor of Rocky Ford, former Colorado Society of CPAs President, an outstanding man of character and high ethics, a knowledgeable, competent, and capable professional, and a very good friend.

Back in the early 1960s, we were the only two CPAs in the lower Arkansas River Valley - Jim in Rocky Ford and me in Lamar. We met regularly in the metropolis of Las Animas (approximately halfway between our home towns) and openly consulted with each other about the many issues encountered in operating and building a CPA firm in rural Colorado. While we were both new CPAs, when it often was a matter of the blind leading the blind, amazingly the overall result of our meetings was definitely positive.

No discussion about Jim would be complete without mentioning he was a real character, totally unique, truly a one and only. When he ran for mayor of Rocky Ford, he explained that he ran unopposed and won by 2 votes. For many years on his birthday, he rode his bike the same number of miles as his age. As he got older, when he discussed his annual feat, he calmly explained that he had switched to metric.

There are many more stories I probably should not tell, but as Jim would say, “you get my drift.”

Jim and I and our families had many great times together in many locations, all of which are memorable. I have lost a very close friend and confidante, and I miss him.

- A. Marvin Strait, CPA, COCPA President, 1978-1979 Donations in Jim’s memory may be made to the Educational Foundation of the COCPA, c/o Alicia Gelinas, 7887 E. Belleview Ave., Ste. 200, Englewood, CO 80111.

TAX STUDY GROUPS Boulder/Longmont Tax Study Group VIRTUAL ONLY

CLASSIFIEDS

Wednesday, Mar. 17 Additional 2021 dates: May 19, Jun. 16, Jul. 21, Aug. 18, Sep. 22, Oct. 20, Nov. 17, Dec. 15. For more information, contact Lynn M. Mitton, CPA, MT, MPA, 303-499-7445, or email lmitton@tandemcpas.com.

Denver Tax Study Group VIRTUAL ONLY

Tuesday, Mar. 23, and Tuesday, Apr. 27 Additional 2021 dates: May 25, Jun. 22, Jul. 27, Aug. 24, Sep. 28, Oct. 26, Dec. 7. Register at www.cocpa.org.

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NewsAccount | March/April 2021

PRACTICES FOR SALE, PURCHASE, OR MERGER Selling your firm is complex! ACCOUNTING BIZ BROKERS can help!

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We work with industry specific lenders ready to assist buyers with financing. Contact us today to receive a free market analysis or to start the sales process. Current Listings: Loveland Gross $690k-Sale Pending; Loveland Gross $160k-Sold; Mesa County Gross $120k-Sold; Central Mountains CPA Firm Gross $70k; Englewood Gross $310k -Sold: Greeley Gross $255k-Sold. Kathy Brents, CPA, CBI, at 866-2602793 or Kathy@AccountingBizBrokers.com, or visit our website at www.AccountingBizBrokers.com.

MOVERS & SHAKERS KCE NAMES NEW SHAREHOLDER Sarah W. Flischel, CPA, was named a shareholder with Kundinger, Corder & Engle, P.C., Denver, effective Jan. 1, 2021.

SG NAMES NEW PARTNER AND NEW ASSOCIATE Peter Ingle, CPA, became a partner with Seigneur Gustafson, LLP, Lakewood, Jan. 1. Lisa Thomson, CPA, joined the firm as a senior tax associate.

BKD NAMES NEW COLORADOSALT LAKE CITY MANAGING PARTNER BKD CPAs & Advisors selected Tammy J. Rivera, CPA, CHFP, Colorado-Salt Lake City managing partner, effective June 1, 2021. She succeeds Jeffrey M. Ronsse, CPA, who recently was promoted to become BKD’s North Region managing partner.

KELLI DAVIS NAMED COCPA EXECUTIVE ASSISTANT We’re delighted to welcome Kelli back to the COCPA as this is her second stint with the Society. The first time around, she joined us right out of college as public relations coordinator before moving on to broaden her experience.

“I feel lucky to have begun my career at an organization where the focus was always on serving members to our best ability, seeking creative solutions, and going above and beyond. I love that I have come full circle, now bringing my talents back to the COCPA.” Kelli provides administrative support to Mary E. Medley, CEO, and Rebecca Campbell, COO/CLO, as well as manages general office operations and supports COCPA groups and activities. Reach her at kelli@cocpa.org or 303-741-8610. She succeeds Terry A. Cervi, who retired, Dec. 31, 2020.

Also, BKD was honored with a Glassdoor Employees’ Choice Award recognizing the Best Places to Work in 2021.

COCPA Talent Platform The direct connection between hiring managers and professional talent Share Your Skills for a Cause In these uncertain times, many charitable organizations in your community need the skills and expertise you possess. The COCPA Talent Platform can match you with these opportunities, and you can continue to build your leadership skills by giving back.

To volunteer, you must create your conf idential online prof ile. Once you’ve completed it, you will see notif ications about volunteer positions on your dashboard under “My Networks.” You choose whether or not to apply for the volunteer position.

Please consider giving back by creating your COCPA Talent Platform prof ile today at

cocpa.org/talent.

March/April 2021 | www.cocpa.org

33

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