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NEWSACCOUNT

Meet Your New COCPA Chair PAGE 2

The CPA Supply: What’s Behind the Downward Trend? PAGE 14

COLORADO SOCIETY OF CPAs • SUMMER 2022

ADVOCAC Y 101: SB22-233 AND THE MAKING OF LEGISLATIVE SAUSAGE

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NewsAccount | Summer 2022

Contents

2 0 2 1 S P E C I A L F E AT U R E

Features 2

Meet Your New COCPA Chair In this issue, we officially welcome Angela Roberts, CPA, Managing Director of Aclivity, to her new role as COCPA Chair. She shares the journey that brought her here, what she loves about the accounting profession, and what she is looking forward to accomplishing.

IN MEMORIAM: Gordon Scheer and A. Marvin Strait The COCPA and the Colorado accounting profession have lost two icons in former COCPA executive director Gordon Scheer and past COCPA president/ AICPA Chairman A. Marvin Strait. They were living legends in their time, and their legacies live on in countless ways.

A CPA Pipeline Report

Decoding the Decline

Advocacy 101: SB22-233 and the Making of Legislative Sausage Law-making, like sausage-making, requires chopping, grinding, and mashing together through drafting, witness testimony, debate, and amendment. It often demands citizens participate in the process for the best possible outcome. This time, CPAs spoke, and legislators listened. The CPA Supply: What’s Behind the Downward Trend? In June 2021, the Illinois CPA Society released its groundbreaking research about the decreasing supply of new CPAs. Decoding the Decline reveals the top challenges, perceptions, and who impacts an individual’s decision to pursue the CPA designation.

Departments 4

Chair Column

Movers & Shakers

In Memoriam & Classified Ads

On the cover: Inside the Colorado Capitol Dome photo by Mary E. Medley CONNECT WITH COCPA

Data details the challenges in attracting Follow us on social Debunking ESG Myths / SEC Proposed Rule Highlights accounting students and young professionals Some organizations have concerns about whether putting effort into ESG media and hear about to the CPAdebunks credential. programs is worthwhile. Stephen Wilkerson a few myths about ESG. recent news and Also, he addresses the SEC's proposed rule on climate disclosure. upcoming events! Interim CFOs: Helping Nonprofits Find Strategic Opportunities Not all organizations need a full-time CFO, but what they do need are the skills, resources, and strategic vision a CFO provides. That’s where an outsourced CFO can help.

Summer 2022 | www.cocpa.org

COCPA LEADERSHIP NEWS

Meet Your New COCPA Chair Angela Roberts, CPA

NEWSACCOUNT

A bimonthly publication of the Colorado Society of Certified Public Accountants Vol. 68, No. 1 Summer 2022

Officers

Angela Roberts, Chair Diego J. Baca, Vice Chair Amy E. King, Treasurer Randy L. Watkins, Immediate Past Chair Mary E. Medley, Secretary

Directors

Jim Gilbert, Ronald L. Goodrich, David Loucks, Amy King, Heidi M. O’Neil, Alexandria A. Romero, Tiffany Davis

Editorial Board

Jack Allgood, Ken Fichter, 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 Emily Russell, 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 $14.00 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 = 5,609 copies; sales through dealers and carriers, street vendors, and counter sales = 0; paid or requested mail subscription = 5,555; free distribution by mail = 0; free distribution outside the mail = 20; total free distribution = 20; total distribution = 5,575; office use, leftovers, spoiled = 38; returns from news agents = 0; total sum = 5,609; percent paid and/or requested circulation = 99%. 303-773-2877 • 800-523-9082 Fax: 303-773-6344

NewsAccount is available online at www.cocpa.org.

BY NATALIE ROONEY

e officially welcome Angela Roberts, CPA, Managing Director of Aclivity, to her new role as COCPA Chair. After building her career in public accounting and the private sector as a CFO, Angela founded Aclivity, a Denver-based executive recruiting, staffing, and consulting firm designed to help build great teams and support individuals in their career goals with a particular focus on accounting and finance professionals. Here, she shares her journey thus far, what she loves about the accounting profession, and what she is looking forward to as COCPA chair. Welcome, Angela! HOW DID YOU DECIDE TO PURSUE A CAREER IN ACCOUNTING AND TO BECOME A CPA? I grew up on the south side of Denver and attended Littleton Public Schools. My father did not support my college aspirations, yet I had dreams for a future that would make a difference and a desire to learn. I found work as a full-time receptionist, enrolled in community college night classes, and obtained a paralegal certificate to pursue a career in law. My first position was with Blinder Robinson’s underwriting attorney team, collaborating closely with the firm’s accountants. I soon realized I fit in better with the CPAs than the JDs of the world, so I decided to go back to school to pursue a degree in accounting. Along the way I got married and followed my Marine husband to North Carolina, continuing my education during his Desert Storm deployment. Life took an unexpected detour, and I found myself a single parent of my 18-month-old daughter. I returned to Colorado to be close to family for support and enrolled in the University of Colorado Denver’s accounting program as a non-traditional student. I continued to work fulltime making progress on my goals and moving closer to my dreams. My amazing mother was my saving grace and in my corner the entire time. I am

eternally grateful for her love and support. May every individual have that one person in her or his life who is the believer in your dreams and supports you along the journey. After graduating from CU Denver, I started my CPA career with Deloitte in audit, later progressing to a controller position. But I missed the fast pace of public accounting. I joined the consulting division at Arthur Andersen, and later became CFO for The Magness Company. Those nine years were packed with incredible growth opportunities, in a demanding, and at times, exhausting environment. In February 2002, I decided to shift my priorities and stay home with my new son and young daughter for some much-needed family focus. I want to share with our members and speaking from firsthand experience, you can take time off to focus on family, and it will not harm your career. I guarantee the reporting standards will still be there, and the market does respect your decision. WHAT CHANGED IN YOUR CAREER TRAJECTORY THAT EVENTUALLY LED YOU TO FOUND ACLIVITY? I was presented with an opportunity to join a Deloitte spin-off called Resources Global Professionals, RGP, as a Client Services Director providing high end staffing services. I remember reaching out to Mary Medley and asking her thoughts on the potential significant change to my career path. Mary said, “Angela, CPAs need someone like you to represent them, and I believe you are perfect for that position.” Hearing her words of confidence in me, I took the position. I will be honest; I chased my tail a bit as I learned the field of business development. This critical skill for CPAs is often expected, but we are not trained for it. I was determined and was not going to let my colleagues or myself down. As I progressed in my career, I was

at the right place at the right time, and SOX was the big play. My network grew, my skills grew, and my career took a new trajectory. I have been representing the CPA profession ever since. I love working with various subject matter experts, finding them projects, building teams, and connecting people. I have overseen all levels of employment from temporary staffing and contract-to-hire to permanent placement. I build great teams to meet the unique needs of each company and project, ensuring success for the clients and the individual goals. In 2006, with the COCPA’s support, I founded and continue to chair the COCPA CFO and Controllers Roundtable, building a network of incredible individuals and serving as a place where finance and accounting professionals can connect, exchange ideas, support, and learn from each other. We have held more than 120 roundtables focused on current industry topics affecting the day-to-day requirements we all face. In 2009, I started my entrepreneurial journey right when the Great Recession hit. I named the company Aclivity (typically spelled Acclivity, meaning “to ascend”). At the time, I felt we had nowhere to go but up. I stayed with that vision – keep moving the profession up! I stayed true to my network and continued to connect people when they had lost their jobs. Many were open to trying something new, taking on special projects, or consulting for my clients. Many found themselves staying on permanently with those companies. I was grateful to be able to help my colleagues in the field during a challenging time. Those same people support my recruiting and employment business today – what a blessing!

than 50 percent of the CPAs I meet are not in either audit or tax. The CPA credential can elevate anyone professionally, and I like to share those stories and encourage young people to understand the value it offers them. The future of the profession is in the value we place on it, and we need to help people understand that value. We talk about thinking outside the box, and now is the time to start. This is not for the future of the organizations we work for, but for the future of our CPA profession. I am excited to represent all CPAs - audit, tax, entrepreneurs, and every subject matter expert on their journey. I want to represent this great profession and encourage young professionals to pursue this valuable certification. I will be an active listener supporting membership and their ideas for the profession and our state CPA Society of the future. WHAT DO YOU LOVE ABOUT BEING A CPA? It is a blessing to work with so many smart and interesting people. My colleagues are amazing, and their support of one another always impresses me. Our profession is consistently evolving, and the ability to pivot and change provides insight into the foundation of every business.

Aclivity is registered as a CPA firm, yet we do not provide assurance services. I stay actively involved in the CPA community. I continue to work with CU Denver, serve on the Accounting Advisory Council, and mentor young professionals every chance I get. I may not be on the ground closing books or preparing the financial reporting packages any longer, but I stay current on the standards to better serve and represent my clients. Being involved and understanding the field through CPE helps me to provide guidance and meet the goals of those who come to me looking for a new opportunity. I am passionate about our profession, supporting individual growth, and building great teams. WHAT DO YOU SEE AS THE BIGGEST CHALLENGES FACING THE PROFESSION? HOW WILL YOUR UNIQUE CAREER ARC BENEFIT THE MEMBERSHIP? Without a doubt, the number one challenge we face is the professional supply chain, and by that, I mean the nationwide decline, not just for new CPAs, but also universities’ accounting enrollment numbers. Historically, earning the CPA credential has been encouraged by the profession and considered a respected credential for demonstrating knowledge and competence. According to the AICPA Trends Report published in 2019, projected Bachelors, Masters, and Ph.D. accounting enrollments were down 4 percent, 6 percent, and 23 percent in 2018, and the number of new CPA exam candidates hit a 10-year low. The 2022 report saw continuing downward trends. Maintaining the relevance of our credential is an issue we need to address collectively. (Note: You can read more about this decline on page 14.) When people hear “CPA,” they tend to think of audit and/or tax. After speaking to over 20 individuals seeking a new position every week for the past 20 years, I have a pulse on our profession in a different capacity. CPAs have unlimited career path options. More

HOW DO YOU SPEND YOUR LEISURE TIME? I am a third-generation Colorado native and a Lifetime Girl Scout. I serve on the Girl Scouts of Colorado Board and am the current Treasurer. Mentoring young women as they pursue their Gold Award is another way I am involved in Girl Scouts. Being outdoors is in my blood; I grew up camping in the Rockies most weekends with my family. My husband, Mark Pougnet, a CPA and CA, and I have a blended family of four – three sons and one daughter who can hold her own. At this time, it seems only one of the kids will be following us into the finance space. Mark and I have spent the past 13 years traveling to more than 27 countries and 42 states. We always look forward to meeting new people and making lasting friendships. I am an avid reader, love to learn, and recently my mom gave me a drone. I always look forward to mastering something new, and it might just be the drone. My other loves are family first, yoga, kayaking, and of course people – sharing wine and a great meal with them, connecting people in my network, or having a good laugh. Cheers to this awesome profession! Summer 2022 | www.cocpa.org

CHAIR COLUMN

The Importance of Leadership BY ANGELA ROBERTS, CPA

n May, I attended my first AICPA Spring Council as COCPA Chair. Networking and exchanging ideas with our profession’s leaders from all over the country reminded me how important leadership is not only to make sure we’re growing our profession’s future leaders but also for us as current leaders to continue to evolve on our own leadership path.

Last year, I had the opportunity to connect with COCPA’s future leaders through a virtual four-course series. We focused on four key areas: Leadership and environment: We discussed and defined what leadership means to each of us, evaluated where we are on our journeys, and determined our personal paths to becoming the most successful and effective leaders we can be. Power of choice and collaboration: We learned the process of defining success, building a collective roadmap, and achieving the desired outcome whether you are working one-on-one or with a team. Trust and credibility: We discussed the details of building and maintaining trust – day in and day out. Effective resolution: Having a difficult conversation can maintain or foster a better relationship – and even build trust. We learned detailed guidelines and a process to help prepare for these types of conversations. CONTINUING TO EVOLVE AS LEADERS Becoming a leader is a life-long process. I see this every day in the candidates I interview and in my own personal and professional life. It takes time to learn and navigate the path to being effective. We can continue to build our own leadership qualities and skills, but we need to take definitive action to make it happen. Some ideas:

Identify your motivation. Before you can grow as a leader, you must know the "why" behind your drive. Identify your flaws. Everyone has flaws, but when you understand your own you can embrace all of who you are. Maybe you need to listen more, show more empathy, or even share your flaws with others and lead by example. Learn from your failures. Growing as a leader means developing the ability and willingness to have your failures shape you. Failure is instructive; it allows you as a leader to learn. Appreciate feedback. View all feedback as a gift and an opportunity to develop. The best leaders realize feedback helps them improve so they can do better. Listen to those with more experience. Even leaders can find someone with more experience. When you connect with more senior leaders, they can teach you to listen when you want to speak, to stop and think when you want to react, to keep trying when you want to quit. Invest in yourself. Create an environment in which you can invest in yourself so you can be at your best. Make time to read; surround yourself with smart people and experts. A BRIGHT FUTURE As I interact with our profession’s up and coming leaders, I’m excited. These younger professionals are smart, enthusiastic, and ready to learn. Let’s continue to share our journeys with them and welcome what they’re bringing to the table. We all can grow together and lead this profession into the future. Email Angela Roberts at angela@aclivity.com.

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NewsAccount | Summer 2022

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IN MEMORIAM

Gordon Scheer

COCPA Executive Director, 1955-1991 December 9, 1925 – March 24, 2022

ordon Scheer, long-time Littleton, Colo., resident and 45-year summer resident of Grand Lake, Colo., passed away peacefully in his room at Someren Glen, Centennial, Colo., on March 24, 2022, at age 96. His life was celebrated, May 7, at Olinger Chapel Hill, Centennial, Colo.

After retiring from the CPA Society, Gordon and Shirley served a stint in Kyiv, Ukraine, with the International Executive Service Corp. where he helped establish structures for a new Ukrainian National Federation of Accountants and Auditors, started after the fall of the Soviet Union.

Gordon was born in Omaha, Neb. on Dec. 9, 1925. He earned his BS in Education from Concordia College in Seward, Neb., and, following in his father’s footsteps, became a teacher by vocation. Soon after graduating, he was appointed Principal of Christ Lutheran School in Denver, Colo.

Gordon and Shirley were fortunate to enjoy traveling the world extensively during his 30 years of retirement, with a special joy and priority given to visiting their son Gary and his family in Rwanda, Africa.

In 1948, Gordon married college sweetheart Shirley Wegner. They made their home in Colorado until Gordon became a Special Agent for the FBI under J. Edgar Hoover, and the family relocated to Philadelphia in 1951. In 1955, Gordon became the first Executive Director of the Colorado Society of CPAs, and the family returned to Colorado to stay. He proudly served as leader of the Colorado Society until his retirement in December 1991. Gordon simultaneously served as Executive Director of the Colorado Water Congress from 1961-1972. Gordon was committed to Colorado politics and served as Arapahoe County Republican Chairman. He held numerous leadership roles in the state and local Republican Party. As state Republican chair, he was a delegate and floor leader at the Republican National Convention. Gordon was an active member of Littleton Rotary, where he was Trustee of the Littleton Rotary Foundation. He was a past president of University Hills Lutheran Church and Centennial Lutheran Church. He was a committed member of the Board of Advisors of the DU School of Accountancy, and he played a crucial role in the formation of rigorous educational and ethical standards for the CPA profession. Gordon was a tireless, articulate, and visionary champion of the CPA profession and was an inspiration to his many friends and colleagues in the field. Many students aspiring to be CPAs have benefited over the years from scholarships they received in Gordon’s name. 6

NewsAccount | Summer 2022

Gordon’s love for the Colorado outdoors was sparked by a high school trip to Westcliff where the spectacular scenery inspired him to settle in Colorado with his family. They spent many years camping, hiking, and exploring the state. He relished climbing many of the Colorado 14er’s. He loved sailing on Grand Lake in summer and cross-country skiing on the lake in winter. Gordon and Shirley were active members of the Grand Lake Yacht Club in Colorado since 1973, and one of the delights of Gordon’s life was serving as Commodore of the Yacht Club. Gordon was a founding member and President of the Three Lakes Watershed Association, which has a crucial role in solving water quality issues in Grand County, Colo.

My Mentor and So Much More

Gordon was predeceased by Shirley in 2010 and by his sister Lois (McClellan) in January 2022. Survivors include his daughter Christine Edwards (Pat) of West Bountiful, Utah; his son Gary (Laurie) of Littleton, Colo., and son Scott ( Jill) of Littleton, Colo., along with six grandchildren and 14 great grandchildren.

BY MARY E. MEDLEY

Contributions in Gordon’s memory may be made to the Gordon Scheer Scholarship online at www.coloradogives.org/ GordonScheerScholarship or by check payable to the Educational Foundation of COCPA and mailed to Mary Medley, COCPA, 7887 E. Belleview Ave., Ste. 200, Englewood, CO 80111.

The following is excerpted from my remarks, May 7, at the Celebration of Life for my boss, mentor, and treasured friend, former COCPA executive director Gordon Scheer, who served in that role from August 1955 through December 1991. “Call me Gordon.” I was barely 21 years old when I interviewed for the receptionist position with the Colorado Society of CPAs. Gordon was old enough to be… my boss. He asked, “Who may I call for references?” I knew two CPAs in Denver, thanks to my summer job with the Elitch Theatre Company - Bob Bergin, its CPA, and Earl Moore, secretary-treasurer of The Denver Post. I didn’t know both were Gordon’s close friends. Apparently, they told him I was capable enough.

So we began our relationship on September 6, 1974. It lasted for the rest of his life and the best of my life thus far. Executive Director and Assistant. Teacher and student. Colonel Potter and Radar O’Reilly for MASH fans. Mentor and mentee. Gramps to my son Kellen. Constant cheerleader and wise counsel. In the early days, I answered the telephone, greeted visitors, and transcribed Gordon’s dictaphone tapes from 8:30 to 5 o’clock at the Society’s 12th and Lincoln office near downtown Denver. Then, I’d take a seat in Gordon’s office, and he’d tell me about the CPA profession, Colorado (Republican) politics, and the legislature. He educated me while waiting for the traffic to clear before driving south to his beloved wife Shirley and their home in Littleton. He taught me how to run a meeting, how to be patient with volunteers, how to develop and nurture critical relationships, how to hold my own in any group, how to lobby and play the political game, and that nothing is more important than living ethically. Gordon was the consummate professional who also could be intimidating. To me, he was certain, determined, and straightforward. I quickly learned how he was likely to think about or respond to challenges. My colleagues on staff routinely would ask me, “How will Gordon think about this?” I would tell them. It saved them from missteps and him from frustration. In early March 2018, Gordon and I attended past COCPA president and good friend Les Pedicord’s memorial service. As we walked out of the church, he turned to me and said, “I want to talk with you about speaking at my service.” “OK,” I said. “When would you like to talk about it?” “I’ll let you know.” “OK, I’ll buy lunch.” A few months later, I once again was sitting across from Gordon, once again learning from him. He handed me a blue folder and a large manila envelope. “Look at them when the time comes.” Then, he told me, again, about being an FBI agent; establishing Christ Lutheran School in Denver; combining his COCPA position with work for the Colorado Water Congress which kept him and the family in Colorado instead of joining the California Society of CPAs; his accomplishments with the Arapahoe County Republican Party; and more. He delegated the “project” to me, and I was honored to accept it. Last December, I took Gordon to Pappadeaux for lunch in celebration of his 96th birthday.

Finally, once again, we could share raw oysters, post the pandemic. We talked about all the places he and Shirley had visited around the world; his favorite place to go on business - New York City; and reminisced about the sailing school summers Kellen spent with Gramps, learning how to turtle his boat and right it, over and over and over again. Last night, I pulled out the blue folder and the manila envelope. Gordon had let me know that both contained important information - and that he would want them back or passed along to his kids. Inside the blue folder was son Gary’s July 1994 report on his trip to Kigali in the midst of the genocide in Rwanda. At the end, Gary writes, “May God give us now the wisdom and the courage to act as we should.” Words I hear Gordon saying to all of us today. In the envelope, returned to daughter Christine, were artifacts of important times in Gordon’s life, including his Nebraska Government in Brief booklet which he received when he attended Cornhusker Boys’ State, circa 1941. Inside the front cover is printed, “The salvation of the state is the watchfulness in the citizen.” Words I can imagine Gordon embracing all his life. I found a letter of comfort he sent to his CPA Debbie Misegadis and her family on the occasion of her father’s death. And I found a letter to Shirley, with 1944? penciled on it. Addressed to “My Darling,” it details his unfortunate encounter with lumber - “six inches square and 12 feet long” - which resulted in “two bruised fingers, two mashed fingers, and one of the mashed fingers slightly broken” but “not broken very bad,” according to the doctor. He adds, “Yesterday i did nothin’; today i am doing nothing; and tomorrow i will do nothing. That’s not a grammar lesson either, it is a complete outline of my activities.”

CPAs make a DIFFERENCE November 10, 2022

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2022 HEROES & HEROINES SOUGHT Nominations Deadline:

September 16, 2022 Each and every day, away from the headlines, in businesses large and small across Colorado, and in others’ lives, CPAs make a difference. We will honor those contributions with the 2022 Everyday Heroes and Heroines Awards. If you know a CPA who should be considered, send a narrative, not to exceed three pages, explaining why you believe the candidate should be recognized and detailing his or her accomplishments. Nominees must hold a CPA certificate and be a COCPA member. They should be “everyday” heroes and heroines who haven’t been recognized widely for their contributions. Nominees should demonstrate significant service in one or more areas: INVOLVEMENT: Describe the nominee’s level(s) of involvement, length of involvement, and time devoted to nonprofit organizations and community activities.

He signs off, “Goodby dearest good luck see you soon be good take care of yourself etc. just 2 more weeks Darling, All my love, Gordon (not bad for lefthanded is it?)”

LEADERSHIP: Describe the nominee’s position(s) held and substantial accomplishments achieved in one or more community organizations, including taking the lead in identifying and solving a problem, founding or rescuing an organization, or developing an innovative program.

Gordon Scheer gave me a job, then a career, and eventually his job. He gave all of us memories to treasure, as we celebrate his life. Thanks to son Scott, for being with him when Gordon mentioned a favorite song, Gordon once again offers his wise counsel, courtesy of Irving Berlin:

IMPACT: Describe how the nominee’s actions benefited the community, improved the overall quality of life, helped others overcome adversity, or served as a role model for CPAs exemplifying the profession’s core values of integrity, competency, and objectivity.

If you’re worried and you can’t sleep, Just count your blessings instead of sheep, And you’ll fall asleep counting your blessings!

For more information and to submit your nomination electronically, contact Kelli Davis, kelli@cocpa.org, 303-741-8610.

So, to paraphrase Gordon himself, “ Goodbye, Dearest. Good luck. We’ll see you again. Be good. Take care of yourself, etc.!”

Nominate today at

7 cocpa.org/CPAsMakeaDiff

Summer 2022 | www.cocpa.org

IN MEMORIAM

A. Marvin Strait, CPA COCPA President, 1978-1979 AICPA Chairman, 1987-1988 December 22, 1933 - April 27, 2022 “Have you heard the one about…?” That’s how almost every conversation began between Marvin Strait and me. He always had a story to tell, and he always had something important to discuss, as well. Marv was universally known for his stories, his dry sense of humor, his unwavering commitment to social justice, and his professional expertise. I also knew him as a lifelong colleague, wise counselor, and dear friend. The accounting profession writ large is so much better for Marv having left his imprint in countless ways. A Pueblo, Colo. native, Marv grew up with his sister Adelyn, nine years his senior. While in middle school, he met his sweetheart and lifelong partner, Shirley, whom he later married. They celebrated 62 wedding anniversaries together before Shirley died in 2017. He attended the better Pueblo high school, while Shirley attended “the other high school.” Marv worked hard from a young age; he obtained a paper route at age 13 and worked part-time with his father on the Santa Fe Railroad in high school. Shirley would accompany Marv on his newspaper deliveries by riding on his bicycle handlebars.

After graduating with a B.S. in Accounting from Arizona State University, Marv “recognized an opportunity when he saw one.” He moved to Lamar, Colo. to establish his first accounting practice and was the only CPA in five Southeastern Colorado counties. Marv would say his clients had two choices: they could use him and like him or use him and not like him. In 1973, Marv, Shirley, and their family moved to Colorado Springs where he continued to practice for almost 50 more years, most recently as a nationally recognized accounting and valuation expert witness. Marv served on the Colorado State Board of Accountancy, as president of the Colorado Society of CPAs, and as Chairman of the American Institute of CPAs - "not too shabby for a small town CPA from Pee-eblo, Colorado," as he put it. He was a champion for specialty accreditation within the profession and earned his CVA, ABV, CFF, and CGMA designations in addition to his CPA. Marv was recognized with numerous awards including the AICPA Gold Medal Award for Distinguished Service, Colorado Springs Business Citizen of the Year, and the Center for Christian-Jewish Dialogue Dove of Peace Award.

Marv also generously contributed his time to numerous charitable and civic organizations including as Chairman of both the Colorado and Colorado Springs Chambers of Commerce; Chairman of the Board of St. Francis Hospital; Colorado Springs Utilities Financial Advisory Board; Colorado Springs Fine Arts Center (Treasurer); Colorado Springs Fine Arts Center Foundation; Colorado Springs Symphony (Treasurer); Sam S. Bloom Foundation; Peak Education Foundation; and the Colorado State Fair Authority Board of Commissioners. The family asks that donations be made to either of these two Colorado Springs charities, both of which focus on child education: Early Connections, www.earlyconnections. org, or Peak Education, www.peakdu.org. - Mary E. Medley

July 27 BR E AKING DOWN BAR R IE R S AS A BLIND C PA

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Accountants Professional Liability Insurance may be underwritten by CAMICO Mutual Insurance Company or through CAMICO Insurance Services by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. © CAMICO Services, Inc., dba CAMICO Insurance Services. All Rights Reserved. Summer 2022 | www.cocpa.org

AT THE COLORADO GENERAL ASSEMBLY

Advocacy 101: SB22-233 and the Making of Legislative Sausage

BY MARY E. MEDLEY, CEO

On March 29, 1869, the Daily Cleveland Herald quoted lawyer-poet John Godfrey Saxe, “Laws, like sausages, cease to inspire respect in proportion as we know how they are made.” Or, as it’s often paraphrased and attributed to German chancellor Otto von Bismarck, “If you like laws and sausages, you should never watch either one being made.” Law-making, like sausage-making, requires chopping, grinding, and mashing together through drafting, witness testimony, debate, and amendment. It often demands citizens participate in the process for the best possible outcome.

ere’s a behind-the-scenes look into the making of Senate Bill 22-233, “Concerning an additional mechanism to refund excess state revenues for state fiscal year 2021-22 only, that provides a refund in an identical amount to each qualified resident individual, and, in connection therewith, making an appropriation.” Thanks to COCPA members, staff, and legislative counsel efforts, it turned out well for Colorado taxpayers and their tax preparers - and offers real time context for why advocacy and participation in legislative and regulatory processes matter. THE ANNOUNCEMENT On April 25, 2022, Colorado Governor Jared Polis stood on the Capitol steps, surrounded by his legislative colleagues, to announce that every Colorado taxpayer would receive “The Colorado Dividend” this summer $400 per individual or $800 for those filing a joint return. Legislation would be forthcoming to make it so. You’d have to meet the eligibility requirements, of course, one of which was to file your 2021 tax return by May 31, 2022. THE QUESTIONS Phones, email inboxes, direct messaging channels, and the virtual water cooler imme10

NewsAccount | Summer 2022

diately heated up across the state. What about those who filed a federal extension? What about those who took advantage of Colorado’s automatic six-month extension? What about those who didn’t have to file a tax return? What about those who couldn’t file until they received all their K-1’s? What about clients who expect their returns to be completed without all the necessary information - and amend the returns later? What about …? Already weary from the crush of the filing season, tax preparers were barraged with client calls, and numerous COCPA members asked us (using a wide variety of passionate words), “How can this be right?”

THE WAIT “Hit the PAUSE button.” I wrote it and said it to COCPA members countless times between Monday and Wednesday, April 27, as we awaited the bill to accomplish Gov. Polis’s promise. Late on Wednesday night, Senate Bill 22-233, sponsored by Senators Nick Hinrichsen (D-Pueblo) and Robert Rodriguez (D-Denver), was introduced. Thursday morning, April 28, I crafted an all-members email alert, asking for outreach to Senate Finance Committee members, in support of amendments so that all eligible Coloradans - including those file by October 17 - would receive the TABOR refund. We

also asked COCPA members to sign up to testify when the bill came before the committee. We sought amendments to: • Extend the May 31st deadline to a later date • Allow taxpayers who filed a federal extension or took advantage of Colorado’s automatic six-month extension and file their tax return by October 17, 2022 to receive their tax refund by Spring 2023 • Include a hold harmless provision for tax preparers • Publish a “TABOR Refund claim form“ or “Intent to File form” on the Colorado Department of Revenue (CDOR) website which taxpayers could submit, attesting that they previously filed - or were eligible for an extension and should be eligible for the TABOR refund At the Capitol, COCPA legislative counsel Daniel Furman, Esq., was raising our concerns about the fundamental inequity the bill created with the bill sponsors, Colorado Department of Revenue representatives, and the Governor’s office. Colorado Chamber of Commerce CEO Loren Furman was carrying the message as well. And, emails - lots of them - started to appear in legislators’ inboxes from CPAs across Colorado. THE COMMITTEE HEARING On Friday, April 29, the bill was listed fourth on the Senate Finance Committee agenda. It would be heard “upon adjournment” of the Senate from floor action. Another email alert was sent to those who’d volunteered to testify. I registered to speak in person, listened to the live feed until the Senate adjourned around 11:15 a.m., and headed to the Capitol. Before the committee began hearing the bill, I learned the bill sponsors would offer amendments to extend the initial deadline to June 30 and to add the “hold harmless” language. Also, they were working with the Department of Revenue to draft amendment language so that taxpayers who filed by October 17 could expect to receive their TABOR refunds by January 2023. They testified during the hearing that the amendment would be offered on second reading in the full Senate. COCPA members Lucas Denberg, Mary Gallagher, Victoria Marschner, and Orville Peterson testified virtually in support of the proposed amendments. I testified in person, along with Loren Furman and Richard Orf

SB22-233 At a Glance BY PAMELA M. FEELY, CPA, MBA

enate Bill 22-233 establishes a temporary TABOR refund mechanism for excess state revenues from all sources for state fiscal year 20212022. Qualified taxpayers will receive at least $400/person (at least $800/married filing jointly) refunds beginning later this summer if they file by June 30, 2022, or in early 2023 if they file by October 17, 2022. WHO QUALIFIES? Residents who: • Lived in Colorado from January 1 – December 31, 2021. • Filed, by June 30, 2022, a Colorado income tax return for 2021 or receive a property tax, rent, or heat credit rebate. • Were at least 18 years old on December 31, 2021. WHAT IF I HAVEN’T FILED A 2021 TAX RETURN BECAUSE I DIDN’T HAVE TAXABLE INCOME? • File a return by October 17, 2022. Income, even if not taxed, needs to show on the return. • A return showing only zeros will be considered fraudulent. WHAT IF I COULDN’T FILE MY 2021 RETURN BY JUNE 30, 2022? For individuals who filed a federal extension and/or took advantage of the Colorado automatic extension for numerous reasons: • Missing information • Waiting on K-1s from partnerships, S corporations, estates, or trusts • Funding retirement contributions • Marshall Fire victim • Medical reasons • Out of the country • Or other reasons and file a return by October 17, 2022, the TABOR Refund payment will be issued in Q1 2023. UPDATE: The "Colorado Cash Back" program will give Coloradans a tax rebate of $750 for individual filers and $1500 for joint filers. See the complete details at tax.colorado.gov/cash-back.

representing the Associated Governments of Northern Colorado. When we had completed our testimony, committee Chair Sen. Julie Gonzales (D-Denver) said, “Thank you for being willing to come forward and share your perspectives. This is an iterative process. It is how we make strong public policy here in the state of Colorado. I appreciate the many, many, many emails that we’ve all received and am grateful for the organization (COCPA) that you represent.” Sen. Pete Lee (D-Colorado Springs) added, “Thank you, echoing the words of Madame

Chair, for engaging and activating your (COCPA) members across the state. That really is how you get people’s attention, quite frankly. This was a matter of some urgency… and we have a lot to respond to in these last couple of weeks. So, the insight, input, and concerns of your members are very much appreciated. I just wanted to set that publicly on the record that you’re doing exactly what you ought to be doing, and we hope to respond to it. Thanks for doing it and thanks for coming here to testify and giving us not just ‘this is the problem’ but ‘these are the solutions’ because that’s really what we need help with as well.” CONTINUED ON PAGE 12 Summer 2022 | www.cocpa.org

AT THE COLORADO GENERAL ASSEMBLY CONTINUED FROM PAGE 11 That afternoon, the bill was referred to the Senate Appropriations Committee, passed, and referred to the full Senate. THE NEXT STEPS On May 2, the Senate amended the bill on second reading to include Colorado taxpayers who file by October 17, 2022. Third reading was accomplished on May 3, and the bill was referred to the House Finance Committee for hearing. Once again, committee members received emails from COCPA members, encouraging support for the bill as amended. On May 5, it was heard, passed, and referred to the House Appropriations Committee which amended it to provide funding for the Colorado Department of Revenue ($2.5M) and Department of Personnel ($2.1M) to implement the legislation. The full House passed the bill on second reading that day. On Monday, May 9, the bill was amended on third reading to provide for recalculation of the refund amount per taxpayer based on current state revenue numbers. It was returned to the Senate for concurrence with the House amendments. Late in the session, May 10, the Senate concurred and re-passed the bill. On May 11, the bill was sent to Governor Polis for signature. He signed it on May 23.

Thanks to CPAs who communicated quickly and effectively with legislators and colleagues in their firms and communities, COCPA legislative counsel Daniel Furman, Esq., with Hall & Evans, LLC, Denver, Colorado Chamber of Commerce CEO Loren Furman, COCPA staff who posted frequent updates and responded to COCPA members’ inquiries, and the COCPA marketing team which sent out the email alerts with lightning speed, we succeeded in turning inequitable proposed legislation into fair and equitable public policy. It was the best possible outcome for Colorado citizens and accounting professionals who serve them and really good sausage, too. To read the bill as passed, go to https://leg.colorado.gov/bills/sb22-233. To listen to the recording of the April 29 Senate Finance Committee hearing, go to https:// sg001-harmony.sliq.net/00327/Harmony/en/ PowerBrowser/PowerBrowserV2/20220429/-1/13442#agenda_, and begin at 1:13:53 p.m. Mary E. Medley is President and CEO of the Colorado Society of CPAs and a registered lobbyist for the organization. Contact her at mary@cocpa.org.

Aaron Silverstein, senior legislative aide to Sen. Rachel Zenzinger (D-Arvada), observed in a social media post, “I don’t talk a lot about the making of the sausage, but I liked how the system worked on this bit. The accommodation for people needing extensions wasn’t originally in the bill, but CPAs in the community read the bill and wrote emails explaining that it would force sloppy, rushed filings. As pros, they refused to cut corners to save time but also didn’t want their clients punished for doing things right. The legislators listened and fixed it. I thought it was a really good example of transparent lawmaking, public comment, and responsive legislators. Get involved, people! Read the bills and comment!”

NewsAccount | Summer 2022

In this election year, your contribution is more important than ever. Contributions to CPA-PAC are limited to $625 per two-year election cycle. Contributions to the 1904 Small Donor Fund are limited to $50 annually. Go to cocpa. org/1904 to contribute online, or mail your check, payable to CPA-PAC or 1904 Small Donor Fund to Pam Feely, 7830 W Alameda Ave Unit 283, Lakewood, CO 80226.

MEMBERSHIP PROGRAM

THE OUTCOME All eligible Colorado taxpayers will receive the TABOR Refund - the “Colorado Cash Back” Gov. Polis announced just 17 days before the legislative session was required to adjourn on May 11. Colorado CPAs spoke, and legislators listened.

WHY GIVING TO CPA-PAC AND THE 1904 SMALL DONOR FUND MATTERS: A contribution to the CPA Political Action Committee and/or the 1904 Small Donor Fund is your opportunity to support candidates for election to the Colorado General Assembly who support issues important to CPAs and those they serve.The profession's success in amending Senate Bill 22-233 is just one example of how important the profession's voice is in working with legislators to develop public policy.

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Summer 2022 | www.cocpa.org

THE ACCOUNTING PIPELINE

The CPA Supply: What’s Behind the Downward Trend? BY NATALIE ROONEY

In June 2021, the Illinois CPA Society (ICPAS) released the findings of its groundbreaking research about the decreasing supply of new CPAs. The report, Decoding the Decline, took a deep dive into the responses from more than 3,100 accounting students, graduates, and professionals to reveal the top challenges, perceptions, and who impacts an individual’s decision to pursue the CPA designation. Now that we have the results, where do we go from here? DIGGING INTO THE DATA The fact that the number of accounting students is declining isn’t new information. The most recent AICPA Trends Report from 2019, showed projected bachelor’s, master’s, and Ph.D. accounting enrollments were down 4 percent, 6 percent, and 23 percent in 2018, respectively. And the number of new CPA Exam candidates hit a 10-year low. At the time, the AICPA suggested the continued declines were being driven by “both economic conditions and an expansion of the alternatives available” to potential accounting students who are “opting to enter or remain in the workforce in lieu of pursuing an advanced accounting degree or to pursue other avenues for advanced education.” What is new information, however, comes from the ICPAS report that reveals the underlying reason behind the declining trends: young professionals who do not plan on becoming CPAs said they aren’t doing so because “they feel they can be successful in their anticipated or chosen careers without it and ultimately believe any value the CPA credential holds is outweighed by its lack of relevance to their personal endeavors and the time commitment necessary to obtain it.” Additional key findings from the ICPAS report: • The costs associated either with obtaining the additional credit hours to meet the educational/licensing requirements or preparing for and taking the CPA exam were not the top barriers cited by any respondent category. 14

NewsAccount | Summer 2022

• The likelihood of becoming a CPA drops dramatically after age 22.

2021 SPECIA L F E AT U R E

A CPA Pipeline Rep

Decoding the Decline ort

Data details the challe nges in attracting accounting students and young profession als to the CPA credential.

• Many respondents do not have an interest in pursuing a credential at all. • Accounting, auditing, and tax preparation are the words most associated with the CPA credential, further narrowing the credential’s scope and attractiveness. • Respondents do not see their employers or prospective employers supporting or requiring the CPA designation. YEARS IN THE MAKING ICPAS President and CEO Todd Shapiro says the profession’s pipeline has been a topic of discussion for a good part of the last decade. “If you look at the AICPA Trends report over the past seven or eight years, we see an increasing number of accounting majors but a flattening in the number of first-time exam takers. That is a leading indicator of what the pipeline will look like. That flattening means you have a lower percentage of your accounting graduates sitting for the exam. That piqued our interest.” In 2016, it was announced that there would be significant changes made to the CPA exam for 2017. The number of first-time exam takers spiked. “That spike was 100 percent driven by the change coming for the 2017 exam,” Shapiro says. The spike lulled some into a false sense of security, but when the numbers dropped again in 2018, it got everyone’s attention. Shapiro says two successive drops had not occurred in at least the last fifteen years. “It really got us thinking about what was going on. Why is this number continuing to fall?”

Kari Natale, CAE, ICPAS senior director of planning and governance, led the survey team, and set out to answer that question. “We saw a gap in terms of the knowledge, and we wanted to learn from it. We knew if we wanted to do something, we had to uncover what young accounting professionals were thinking so we could change our strategies. We wanted to hear from those young professionals themselves.” THE POWER OF ME Natale says when the ICPAS team began sharing the report’s data with educators and practitioners, they received a surprising amount of pushback. Historically, there has been a rote answer to the declining number of CPA exam takers: the 150-hour requirement. It turns out, that reason didn’t rise to the top at all. Natale says one of the biggest surprises in the results came from asking who influences an individual’s decision to pursue the CPA. It wasn’t employers or educators, which would have been true in prior years. “They said those opinions were helpful, but it was just one factor.” Who is the number one influencer? Respondents said: Myself, and if I don’t personally see the value to me, I’ll walk away. “So, we can no longer tell them they need the designation to get a promotion,” Natale

says. “That’s why it’s now so important to make someone see the value in the CPA. More money isn’t the only deciding factor. They have to care. This changes our strategies and message on campus. We need to show people why they would want to get their CPA and help them find that direction on their own.” Shapiro says he found it fascinating to hear individuals talk about how “myself” was the number one influencer. “The 2018 data showed us that people are done with something just because you tell them they have to do it. Our CPA Profession 2027 project is looking at the future and how compliance isn’t viewed as exciting work. If we want to attract the best and the brightest, we need to understand that they want to do strategic work. The report confirmed a lot of these things.” SOLVING THE BRANDING ISSUE Another key datapoint the survey revealed is how much respondents value their work life balance. “How they want to invest their time isn’t necessarily in credentialing and work,” Natale says. “The time commitment has always been a factor in pursuing a CPA, but people are saying this is just a test rather than evidence that makes them better. We need to change the messaging to connect with them.” Shapiro emphasizes, “When you see a declining number of CPAs at large accounting firms because activities are being offshored or completed by bots, we need to show the long-term value in becoming a CPA. They’ll put the time in if they think there’s value in doing it. That’s the major challenge – communicating the importance and making it worth their time.” Aligning the CPA designation value proposition with what people see is important is key, Natale says. “We need to show that an exam like this helps you be more rounded and gives you knowledge beyond others at your level regardless of the career path you take. Respondents said they see the CPA designation as a public accounting thing, and they’ve also said they don’t see themselves spending most of their careers in public accounting. That’s where we need to demonstrate that the CPA license is more than auditing and tax. It gives you the foundation you need to help you perform your job better anywhere you work.” A recent Korn Ferry study showed only 36 percent of CFOs at the 1,000 largest U.S.

Decoding the Decline Top-Level Highlights Challenges By and large, the most faced or anticipated barrier to becoming a CPA cited by respondents is the time commitment needed to study for and pass the CPA exam. In fact, workload time commitment was by far the top reason for deciding not to complete the CPA exam by those who started the process but did not complete the exam. Importantly, when breaking out responses from the individuals who do not plan to become CPAs, we gained the invaluable insight that their top reasons for not pursuing the CPA credential included not seeing value or relevance to their careers, not seeing the return on investment, their employers or prospective employers do not require it, and other credentials or specialties are more valuable to their careers. Contrary to popular belief, the costs associated either with obtaining the additional credit hours to meet the educational/licensing requirements or preparing for and taking the CPA exam were not the top barriers cited among any respondent category.

Perceptions

A key goal of this survey was to understand how accounting students, graduates, and young professionals value the CPA credential itself and if it is perceived to provide personal value to them. As expected, we clearly validated that the CPA credential’s perceived value directly aligns with one’s interest in becoming a CPA. More than 95 percent of respondents who are CPAs, are in the process of becoming CPAs, and are planning on becoming CPAs rate the credential as valuable or very valuable. Encouragingly, 86 percent of respondents who are still unsure about becoming CPAs view the credential as valuable or very valuable. And, surprisingly, the CPA credential is even acknowledged as being valuable or very valuable among those who started but did not complete the CPA exam (65 percent) and those who do not plan on becoming CPAs (68 percent). Respondents who see little or no value in the CPA credential feel they can be successful in their anticipated or chosen careers without it and ultimately perceive that any value the CPA credential holds is outweighed by its lack of relevance to their personal endeavors and the time and costs required to obtain it. Of further concern is the finding that 51 percent of all respondents have not obtained nor plan on pursuing other credentials—this was equally measured among respondents who do not plan on becoming CPAs (50 percent).

Influencers

Contrary to the common belief that an employer or prospective employer is the leading influencer on an accounting student’s or young professional’s decision to pursue the CPA credential, most respondents (53 percent) cited “self” as their primary influencer. As suspected, employer/prospective employer (39 percent) was validated as a significant influencer, which was closely followed by college professor (33 percent). It is worth noting that educators did outrank employers among respondents who plan on becoming CPAs and who are still unsure about becoming CPAs. Also challenging common belief was the fact that a higher-than-average salary was not identified as a top factor in deciding whether to become a CPA. Instead, career advancement opportunities earned the largest response, which was followed by greater marketability. In addition, we found a clear correlation between respondents either working or preferring to work in public accounting and deciding to pursue the CPA credential. Interestingly, though, just 27 percent of all respondents see themselves spending most of their careers in public accounting.

CONTINUED ON PAGE 16 Summer 2022 | www.cocpa.org

THE ACCOUNTING PIPELINE CONTINUED FROM PAGE 15 public companies are CPAs - a six-year low. “We saw the same decline of first-time exam takers in the 1990s,” Shapiro says. “What saved the credential back then was a major financial meltdown resulting in a change to the regulatory structure through the Sarbanes-Oxley Act of 2002. We’d better not hope for that kind of crisis to save us. Let’s learn from that. How do we make the CPA more relevant when technology is taking the place of people in compliance? It’s a branding issue. Let’s solve that.” A CATALYST FOR CHANGE A conversation with the ICPAS board sparked the research leading to Decoding the Decline. Now the results are leading to more in-depth conversations about the future. “Professional organizations try to enhance the value of their designations,” Natale says. “If there are fewer and fewer CPAs, we need to decide if we’re going to shrink the number of CPAs and be OK with that, or do we help more people see the value in it?”

NewsAccount | Summer 2022

For ICPAS and other state CPA societies, the answer is clear. “We think this is a valuable, respected credential,” Shapiro says. “We know this is a credential that can change people’s lives, especially for diverse populations. The more you make a credential relevant, the more people will want to pursue it, and that will help your pipeline.” Shapiro says there are no easy solutions, but just getting people to talk about the issues facing the CPA designation is the right first step. “What has excited us is that the study is really the catalyst for conversation,” he says. “People are talking about it, and now we’re using real data, not just anecdotal information. We’re finally talking openly and honestly about the problem.” Read and download the full report from the ICPAS website at www.icpas.org/information/professional-issues/decoding-the-decline. Read and download the newly released AICPA 2021 Trends report at www.aicpa.org/professional-insights/download/2021-trends-report.

Respondents

The survey—which was deployed on Sept. 29, 2020 throughout Illinois and with national stakeholders—was targeted toward accounting students, graduates, and professionals under the age of 35, including CPAs and non-CPAs, and attracted 3,102 respondents and achieved an 81.5 percent complete response rate (2,527 completions). Respondents revealed unique perspectives across demographics, including age, gender, race, employment, education, and commitment to the credential. Although 88 percent of respondents identified themselves as either being a CPA, in the process of becoming a CPA, or planning on becoming a CPA, valuable insights were also gathered from the groups of those who started the process but decided not to complete the CPA exam, who do not plan on becoming a CPA, and who are unsure about becoming a CPA. A strong student response was also received, with 600 students participating in the survey.

The 2021 AICPA Trends Report: Key Insights The AICPA Trends report has been published since 1971 and biennially since 2009. It identifies key trends in U.S. accounting enrollments and graduates, as well as hiring in the public accounting sector, along with select information about CPA Examination candidates. This year’s report provides statistical projections and respondent expectations based on university responses for the 2019-2020 academic year and firm responses for the 2020 calendar year. To read the full report, go to www.aicpa.org/professional-insights/download/2021-trends-report. ACCOUNTING GRADUATES AND ENROLLMENT EXPECTATIONS Accounting graduates trended downward in the 2019–2020 academic year, with decreases of 2.8% and 8.4% at the bachelor’s and master’s levels, respectively. Accounting programs are optimistic about enrollments for the 2021–2022 academic year — 58% of both bachelor’s and master’s programs respondents reported that they expected enrollment for that academic year to be the same or higher than the 2020–2021 academic year. (Note: IPEDS data for 2020– 2021 had not yet been released at the time of this publication). HIRING AND HIRING EXPECTATIONS Total hiring of new accounting graduates in 2020 has decreased by 10%, however there was a 2% increase in master’s graduate new hires. New non-accounting graduates hired into accounting and finance functions increased by 10 percentage points. The hiring mix continues to shift, with 57.3% of

new graduate new hires being accounting graduates and 42.7% being non-accounting graduates. New accounting graduate new hires are increasingly being assigned to audit — a shift of 11.5 percentage points from 2018. Of firms that hired one or more accounting graduates in 2020, 74% expect to hire the same number or more in 2022 as compared with 2021. Eighty-nine percent of all U.S. CPA firms expect to have the same number or more CPAs on staff in 2022 in comparison with 2021. DIVERSE HIRING In 2020, diverse hiring of new bachelor’s and master’s of accounting graduates into accounting/finance functions of U.S. CPA firms increased by almost five percentage points (includes multiethnic hires). Asian or Pacific Islander, Black or African American, and Hispanic or Latino new graduate new hires in accounting have all increased by near one or more percentage points (1.9, 0.6, 1.6 percentage points, respectively). These

three groups comprise their highest (or very near their highest) percentage of the whole of new graduate new hires in the history of Trends’ data collection. CPA EXAMINATION The number of new CPA Exam candidates entering the CPA pipeline decreased anomalously in 2020 due to short-term closings and the various restrictions at Prometric® test centers, with overall COVID concerns carrying forward into 2021. As such, while new CPA Examination candidates decreased less than 0.5% between 2018 and 2019, there was a 17% decrease between 2019 and 2020. A 6% increase occurred between 2020 and 2021. The number of CPA Exam candidates who passed their fourth section of the exam decreased 11% between 2019 and 2020 after a 2% decline between 2018 and 2019. The number of successful candidates decreased 5.5% between 2020 and 2021.

Major Factors Impacting the Pipeline Undergraduate population down over 1M students (down 6.6%)

700K+ fewer students in community colleges (down 13%)

(2019-2021)

Decline in the US CPA Exam volumes offset by growth in international

Decreasing accounting graduates; fewer CPA Exam candidates

Firms hiring fewer accounting and more non-accounting graduates

~40% of accounting graduates sit for the CPA Exam

Student/accounting decision points and stakeholder influence in easing unnecessary obstacles

Summer 2022 | www.cocpa.org

SUSTAINABILITY REPORTING

Debunking ESG Myths BY STEPHEN D. WILKERSON, CPA, CFSA

any organizations realize the importance of ESG (environmental, social, and governance) performance. Putting effort into ESG can improve organizations by making them more efficient and helping them manage risks. Organizations use ESG programs as a differentiator when telling their story to investors, customers, employees, and other stakeholders. However, some organizations have concerns about whether putting effort into ESG programs is worthwhile. Below are a few myths about ESG. MYTH #1: ESG IS A WASTE OF RESOURCES. ESG covers an extremely broad range of topics, which could lead to organizations giving their attention to areas that do not bring as much value. Having the right ESG proposition provides value. Here are some overall best practices for incorporating ESG into your organization: Focus your resources on matters that are important for stakeholders. Conducting an ESG materiality assessment can help you identify and understand the importance of specific ESG topics to your organization and your customers, employees, investors, and other stakeholders. The organization can then concentrate its effort on those areas that are determined to be important to stakeholders and also contribute to business success. Start by focusing on a limited number, e.g., three to five topics or initiatives, and don’t try to do everything at once. Link ESG reporting to the organization’s strategy and enterprise risk management (ERM) process. Companies often work to improve metrics when those metrics are tracked and included in an ESG report. Therefore, it is valuable to report on ESG metrics that are important for the organization’s success. Linking those metrics to the organization’s ERM helps make them relevant and provides additional focus and executive sponsorship. Answering the following questions can help to link ESG reporting with the organization’s strategy and ERM: • What things will be increasingly important to future profitability? • What risks would prevent the organization from being successful in the future? • Is employee turnover, efficiency improvements, or employee health and safety important for your organization’s success? Commit to getting value out of the process. Using ESG reporting for only marketing and other external purposes brings limited benefits. Committing to learning from and improving upon the organization’s ESG metrics makes your organization better. MYTH #2: THERE ARE TOO MANY ESG REPORTING STANDARDS AND FRAMEWORKS FOR ESG REPORTING TO BE BENEFICIAL. Currently, there are a number of different ESG reporting standards and frameworks that organizations are using to report ESG information. However, this number is shrinking. Six of the seven most commonly used ESG reporting standards and frameworks are in the process of being consolidated with the International Sustainability Standards Board (ISSB) or have committed to coordinating standard-setting activities with the ISSB. This process is intended to bring more consistency to ESG reporting. On March 31, 2022, the 18

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ISSB released exposure drafts of its new standards, which include industry-specific standards. On March 21, 2022, the SEC proposed new rules (www.sec.gov/news/press-release/2022-46) that would require most public companies to disclose their greenhouse gas (GHG) emissions and details of how their business is affected by climate change. The SEC proposed rules align with the climate portion of the ISSB’s proposed standards. These proposed rules would bring increased consistency in GHG emissions disclosures if these rules are finalized. The proposed rules include attestation requirements for these disclosures. The proposed SEC rules make the reporting of climate data even more critical. With the universe of ESG standards shrinking considerably due to the ISSB consolidation, the process of selecting the proper framework for your ESG reporting is being made much simpler and more relevant to your organization’s needs. MYTH #3: ESG INFORMATION ISN’T RELIABLE. Information contained in ESG reports needs to be accurate and reliable since it is used in decision making. This decision making may be internal, e.g., board or management, or external, e.g., customer or investor. Having controls in place for the accurate reporting of ESG information is important, similar to the importance of having controls in place for an organization’s financial reporting. Accounting firms that provide ESG services can conduct a pre-assurance readiness engagement that includes evaluating controls and providing recommendations on improving the quality of ESG data. Assurance of ESG information also can be provided to increase the credibility of the information reported and can be either limited assurance, similar to the level of assurance in a financial statement review, or reasonable assurance, similar to the level of assurance in a financial statement audit. MYTH #4: ESG IS FOCUSED ON ENVIRONMENTAL FACTORS. Although diversity, equity, and inclusion (DEI) and climate risk are hot topics, governance is a very important, but sometimes overlooked, aspect of ESG. Governance includes such critical areas as risk management, fraud prevention, and oversight of cybersecurity. ESG rating organizations calculate composite ESG scores for companies by using varying weights for ESG components. In many industries, ESG rating organizations often give governance the largest weighting when compared to environmental and social components. Good governance helps organizations capitalize on opportunities and address challenges and risks they may face now and in the future. Stephen D. Wilkerson, CPA, CFSA, FSA Credential Holder, is a manager with FORVIS, Denver. Contact him at Steve.Wilkerson@forvis.com.

The Proposed Climate Disclosure Rule BY STEPHEN D. WILKERSON, CPA, CFSA

he SEC’s proposed rule for the enhancement and standardization of climate-related disclosures for investors has received extensive attention since its release in March 2022. The proposed rule would make amendments to Regulations S-X and S-K, which set reporting requirements for registrants subject to various SEC filings, including the annual Form 10-K. These proposed rules generally align with the existing Task Force on Climate-related Financial Disclosures (TCFD) framework and the Greenhouse Gas Protocol standards. SEC reporting companies, even those with no publicly listed securities, will need to assess the proposed rule’s impact on their company and design a strategy for compliance with the proposed requirements. This article will not cover the entire proposed climate disclosure rule. Instead, it will focus on the following disclosure areas of the proposed rule, which are expected to take considerable effort for filers to prepare: • Risk identification and risk management activities • Financial metrics • Greenhouse gas (GHG) emissions

RISK IDENTIFICATION & RISK MANAGEMENT ACTIVITIES Registrants will be required to disclose information regarding their processes for identifying, assessing, and managing climate-related risks. Climate-related risks are classified as either: • Physical risk or conditions and events, both acute and chronic, which present risks to the company related to the physical impacts of the climate, i.e., climate-related natural disasters and changes in weather patterns; or, • Transition risk or risks related to a potential transition to a lower carbon economy, e.g., shifts in consumer preferences or carbon taxation policies In addition, certain information about a company’s transition plan would require disclosure if a company has a transition plan. The proposed rules define a transition plan as a filer’s strategy and implementation plan to reduce climate-related risks. FINANCIAL METRICS Registrants will be required to disclose certain disaggregated climate-related financial statement metrics in a note to the audited financial statements. These disclosures are intended to increase the transparency about how climate-related risks impact the financial statements. These metrics include: • Financial impact metrics, which describe the impact of climate-related events and conditions, i.e., severe weather events and other natural conditions and identified physical risks, on the consolidated financial statements, unless such impact is below a specified threshold; • Financial expenditure metrics, which describe any expenditures or capitalized costs as a result of climate-related events and conditions or transition activities; and,

• Financial estimates and assumptions, which describe whether the estimates and assumptions used to produce the consolidated financial statements were impacted by climate-related risks GREENHOUSE GAS (GHG) EMISSIONS GHG emissions fall into three categories, or “scopes,” including: • Scope 1: Direct emissions from a registrant’s owned or controlled operations • Scope 2: Indirect emissions from purchased or acquired electricity, steam, heat, or cooling • Scope 3: Indirect emissions resulting from activities that are not owned by the organization but that the organization incurs through its supply chain (upstream and downstream) All registrants will be required to disclose their Scope 1 and 2 GHG emissions, and certain registrants will be required to disclose Scope 3 GHG emissions. (See the table here.) The proposed timelines for the GHG disclosures required under the proposed rule depend on the filing status of the company and the category of the emissions being disclosed. Attestation – Scope 1 & 2 GHG Emissions

Scope 3 Emissions Disclosures, if Material or in a Reduction Target or Goal

Registrant Type

Scope 1 &2 Emissions & Other Proposed Disclosures

Large Accelerated

Fiscal Fiscal year year 2024 2023 (filed (filed in in 2024) 2025)

Accelerated

Fiscal year 2024 (filed in 2025)

Fiscal year Fiscal year 2025 (filed 2027 (filed in 2026) in 2028)

Fiscal year 2025 (filed in 2026)

Non-Accelerated

Fiscal year 2024 (filed in 2025)

Exempted

Fiscal year 2025 (filed in 2026)

SRC

Fiscal year 2025 (filed Exempted in 2026)

Exempted

Limited Assurance

Reasonable Assurance

Fiscal year 2026 (filed in 2027)

Fiscal year 2024 (filed in 2025)

Registrants required to disclose Scope 3 emissions may ask private companies in their supply chain, e.g., vendors and suppliers, to provide GHG emissions estimates for the registrant’s Scope 3 disclosures, since the emissions associated with services and products purchased from vendors and suppliers are included in Scope 3 emissions. CONTINUED ON PAGE 23 Summer 2022 | www.cocpa.org

TECHNOLOGY

Access Security: Using Multi Factor Authentication BY BRUCE A. GRAY, CPA CGMA

s CPAs, we are responsible for safeguarding our clients’ sensitive data. With the migration to cloud-based computing, increased remote work, and the increasing sophistication of hackers targeting the very data we are responsible for protecting, it is critical for us to provide safeguards aimed at preventing unauthorized access. We’ve all seen the stories of hackers gaining access to databases with personal information like credit card and social security numbers. Even the government has been victim to these attacks. Early on, we all employed user IDs and passwords to access our computers and other devices. We even learned to make our passwords more difficult to decipher by using upper and lower case letters, special symbols, and numbers. But even the most sophisticated user IDs and passwords are no longer sufficient protection. Today, a myriad of tools can be employed to circumvent passwords. It also doesn’t help that often we are ultimately the weak link by creating simple passwords, using the same password for multiple sites, and making access to our passwords too easy. Accordingly, for those of us required to protect data, we need to take the use of multi factor authentication, or MFA, seriously. The fundamental premise of MFA is to require more than one barrier to access to data, and in so doing, make it more difficult for unauthorized users to access. MFA uses multiple elements to establish the identity of someone attempting to access data. The three typical elements are: • Something the user knows – a password, pass phrase, or PIN • Something the user has – a physical token or device-based authenticator • Something the user is – using a biometric such as a fingerprint, face recognition, or retina scan You probably have encountered MFA in connection with a bank or other financial

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account. An early example of MFA was accessing your bank account via an ATM. You insert your bank card into the ATM and then provide a PIN to gain access. So, in this example, the MFA utilized both something the user has (card) and something the user knows (PIN). Several years ago, when I was one of a handful of people who had approval authority for outgoing wire transfers, I had a small fob that generated a new passcode at periodic intervals. When providing approval, I would login using my user ID and password and would need to provide the code that was displayed on the fob after which the bank was authorized to complete the wire transfer. Access to the members only section of the COCPA website utilizes a basic form of MFA. You enter your email which is matched against a member database, and if matched to an email on file, a passcode is emailed to you which you enter to gain access. These passcodes typically have a short lifespan after which they expire and will no longer access the account. With the increase in online banking, financial institutions have increasingly moved to MFA access tools. Sometimes it is the addition of a passphrase or PIN following the initial user ID and password input. Other times it involves sending a one time passcode to a mobile device or to email. SaaS vendors of software that maintains sensitive data such as identifying information or financial data have also increasingly used MFA to control access to data. QuickBooks Online allows you to use a user ID and password but also provides for using a passcode for login purposes. Even though there is access via only user ID and password, the software periodically requests the addition of a passcode before providing access. As we increasingly login from a variety of locations, these same systems are doing some behind the scenes verification and will require an additional form of authentication if they do not recognize the IP address from which someone is attempting to login.

Many of us have probably adopted some form of secure exchange tools for sending and receiving sensitive client data such as ShareFile, Bynder, or FileInvite. I utilize a secure portal via my website to allow for the exchange of documents with my clients. Many of these tools are now adopting the use of MFA to increase the existing security of the environment as well. Hardware manufacturers also are utilizing some MFA for accessing devices. Increasingly, both Android and iOS based phones, tablets, and laptops have either a fingerprint reader or facial recognition software included as login options on their software. While this technology was a bit inconsistent in early implementation, it has improved to be much more reliable. Once only seen in science fiction and spy movies, things like facial and voice recognition and retina scans are ready to be used in commercial and consumer applications. Several MFA software tools are available. Check out the article at cofes.com/mfa-solutions/ for examples and reviews. Several software tools have this capability embedded as part of the software. You should probably check with your software vendors to see if there are options for turning on MFA within the software. Data security always will be a concern, and as we improve the barriers, those who would exploit the data always will be right on the heels of the improvements made. Creating a series of barriers to access, especially integrating the use of biometric data, will be an important part of protecting sensitive data. Bruce A. Gray, CPA, CGMA, Miliken, is a member of the COCPA Technology Users Group. Contact him at bruce@bagcpa.net. For information on and to join the Technology Users Group, contact Stacy Svendsen, stacy@cocpa.org.

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GOVERNMENTAL ACCOUNTING & AUDITING

Challenges and Opportunities in Governmental A&A BY NATALIE ROONEY

he governmental accounting and auditing niche is facing a familiar problem – too much work and not enough qualified people to do it. The shortage of accountants working on governmental audits is being driven by several factors, says Jim Rae, CPA, owner of Rae & Co., CPA, LLC, Denver, and co-chair of the COCPA Governmental Issues Forum. The field has become increasingly complex. In addition, single audits, which many organizations need for the first time in the wake of federal stimulus money, are technical and require increased oversight. “The feds threw a ton of money at everyone without a lot of clarity around the rules and how money could be spent,” Rae says. “There was no guidance on how to report things. Does it belong on the SEFA (Schedule of Expenditures of Federal Awards) or not? Single audits are difficult because they’re not something we’re trained to do, and there are so many rules and regulations.” Another challenge has come from a skilled workforce that is shrinking because of retirements and the Great Resignation. “No one is stepping up to fill that void,” Rae says. He describes clients, especially in rural areas, who go for years without a degreed accountant on staff and only Rae and his team doing the financials at the end of the year. “These are highly technical areas with pension reporting and additional GASB pronouncements - the work is not within these local governments’ scope of training.” SCHOOL DISTRICT SCRAMBLE School districts have been hit particularly hard by the government auditor shortage. According to Colorado statute, all school districts must have an audit submitted to the Office of the State Auditor and the Colorado Department of Education’s School Finance Division by Dec. 30 each year. While school districts can file for an extension, which they are doing in record numbers, the districts struggle to find anyone to perform the audit, let alone complete it on time.

NewsAccount | Summer 2022

When a school district fails to meet the deadline to submit its audit, the consequence is the withholding of property taxes, and it’s no longer in compliance. That’s a big problem because school districts rely on those funds to operate. “School districts are short-staffed. They can’t get anyone in the door to even train on their finances,” says Crystal Dorsey, CPA, Local Government Audit Manager for the Colorado Office of the State Auditor. “There’s a

Single audits are difficult... and there are so many rules and regulations.

smaller firms with a niche in governmental accounting, staff is struggling to keep up with the standards,” she says. “The combination of all of these factors just in the last two years in a pandemic environment has impacted a lot of auditors,” says Gina Faulkner, Legislative Financial Auditor - Team Lead, for the Office of the State Auditor. “Some have decided to discontinue doing audits for a specific client because a single audit is needed. They say they’ll wait until a client is past this influx of federal money.” Overall, Dorsey says the cost of doing an audit is going up because of more regulations, less labor available, and more mistakes made by clients who lack the internal knowledge.

lot of inexperience out there which translates into a delay in preparing the information. When the information does finally go to the auditor, it’s not accurate, rework is required, and there are problems with the audit. It takes longer and costs more.”

The role of the Office of the State Auditoris to look at the audit opinion and financial statements to make sure an entity is in compliance. “We send letters when we see a deficiency that should be corrected in next year’s report,” Dorsey says. “Maybe it’s a missing note disclosure, or something not tying, but we’re also currently seeing issues with the audit opinion and have to send letters to the auditors.”

Dorsey echoes Rae’s comment that auditing standards continue to become more complicated with additional requirements and new wording changes and format for the opinion with factors related to audit complexity. “That affects all auditors, not just government auditors, but when you have these

When Dorsey speaks at government accounting conferences, she usually makes a plug for auditors to look at the guidance and resources provided by the AICPA. “That’s our guide for reviewing what the opinion should say,” she says. “The information is available to them as practitioners.”

LATE GUIDANCE AND MISSED DEADLINES When school districts miss their audit deadlines, the consequences are outlined in state statute. The auditor’s office notifies the county treasurer to place a hold on property taxes. In addition, the auditor’s office may cause an audit, but Dorsey says if an audit is in process, the state auditor’s office won’t come in and start a new audit.

2020. While that doesn’t seem like a lot out of Colorado’s 178 school districts, it was out of the norm. SHOULDERING THE WORKLOAD Rae says it has come to the point that he’s having to turn down work. “Right now, we can’t take on more clients and meet existing deadlines.” It comes down to the inability to find people to send out to do the work. “For now, this is where we are. We’ll see about adding staff next year.”

local governments and schools districts understand how to prepare an RFP, select an auditor, prepare for the audit, establish internal controls, and generally improve the audit inputs. “We’re not able to recommend a specific auditor, but we can offer advice on best practices,” Faulkner emphasizes. NEW OPPORTUNITIES FOR CPAS After spending many years in the world of government accounting, Dorsey says she still finds it rewarding. She encourages CPAs who want to expand their book of business to consider the government arena. “This area needs qualified people who are willing to learn. There are plenty of resources available if you want to expand your skill set.”

While there are always a certain number of school districts that file extensions, they Fee pressure also is contributing to the usually meet that extension. But these last ongoing problems. Rae describes a recent two years have been unique because of the bid for a town with a 59-page financial single audits and staffing shortages at CPA statement, eight opinion units, and two firms, Faulkner says. “Some of these school districts aren’t able to get their audits completed in a timely JOIN THE GOVERNMENTAL ISSUES FORUM manner, even if they have in This COCPA member group provides guidance on current the past.” Faulkner says the government implementation issues and legislative matters; maintains world is a completely different Missing the deadlines hasn’t been liaison with the governmental financial community and animal, inside and out, from the the fault of the school districts or practitioners; responds to exposure drafts from GASB, private sector, made up of public the auditors, Dorsey asserts. “The AICPA, and OMB; works on governmental standards servants doing what they think federal government released its overload; and on a confidential basis, reviews governis best to help taxpayers. “It’s guidance in the form of the commental audit reports submitted by COCPA members for rewarding to keep things on the pliance supplement but didn’t educational review. To participate, contact Stacy Svendsen, right track for accountability and provide the information related stacy@cocpa.org, 303-741-8613. transparency.” to the pandemic until December 2020 for the year that ended “Having quality audits and financial June 2020. “Normally, an audit statements is so important for the bases of accounting – full and modified would be finished by then.” governmental arena because we have those accrual. Ultimately, the town went back to taxpayers to answer to,” Dorsey agrees. its original auditor instead of choosing a In 2021, guidance was available in August with addendums released in December 2021 and January 2022. “If a school district needed an audit and the auditor was waiting for guidance, it was the perfect storm,” Faulkner adds. “Federal funding plus late guidance? Things were destined to be delayed.” Dorsey says the number of delinquent school districts more than doubled in the last two years – from six in 2019 to 16 in

new firm. Rae felt it would have been a lot of work for not a lot of money. Because the Office of the State Auditor is on the back end of the process, there is little it can do to relieve the shortage of governmental CPAs. It does work with the Colorado Department of Education, the Department of Local Affairs, and the Colorado Government Finance Officers to offer Budget and Audit 101 classes help

Rae looks forward to the continued opportunity to help his governmental clients. “If you want to make an impact, you can do that in government accounting because you’re dealing with clients that in many cases aren’t as sophisticated. They need assistance, and if they’re willing to change, you can see a lot of growth and make a positive impact in what school districts and local governments do.”

CLIMATE DISCLOSURE RULE... CONTINUED FROM PAGE 19 The proposed rule requires large accelerated and accelerated registrants to obtain external attestation of Scope 1 and Scope 2 GHG emissions by an outside firm, beginning with fiscal year 2024 reporting. See forvis.com for other articles about the SEC’s proposed climate disclosure rule. This article is for general information purposes only and is not to be considered as legal advice. This information was written by qualified, experienced professionals at FORVIS, but applying this informa-

tion to your particular situation requires careful consideration of your specific facts and circumstances. Consult a professional at FORVIS or legal counsel before acting on any matter covered in this update. Article reprinted with permission from FORVIS, LLP, forvis.com. All rights reserved. FORVIS, LLP ranks among the nation’s top 10 professional services firms. Created by the merger of equals of BKD, LLP and Dixon Hughes Goodman, LLP (DHG), FORVIS is driven by the commitment to use our

forward vision to deliver Unmatched Client Experiences™. FORVIS is built upon the strong legacies of BKD and DHG, which is reflected in a name that comprises partner initials and represents our unique focus on preparing our clients for what is next. With more than 5,500 dedicated professionals who serve clients in all 50 states as well as across the globe, FORVIS offers assurance, tax, advisory, and wealth management services. Visit forvis.com for additional information. Summer 2022 | www.cocpa.org

NONPROFIT MANAGEMENT

Interim CFOs: Helping Nonprofits Find Strategic Opportunities BY NATALIE ROONEY

ana Miller, CPA, wears a lot of hats. She is currently the Director of Finance & IT for Maiker Housing Partners, and she also is the founder of Executive Financial Insights (EFI) which she launched to help train nonprofit executive directors and CEOs how to spot opportunities, untapped potential, and red flags in their organization’s financial statements.

“I can’t help myself,” she laughs, explaining that she does both things with the blessing of the executive director at Maiker Housing Partners. “I’m passionate about helping nonprofits achieve their missions.” TURNING TO CFOS Not all organizations need a full-time CFO, but what they do need are the skills, resources, and strategic vision a CFO provides. That’s where an outsourced CFO like Miller can help. Miller says while some nonprofit executives are financially savvy, most are hired for their fundraising capabilities, their leadership skills, and their passion for an organization’s mission. Through EFI, Miller consults with organizations of all sizes. The CEOs she coaches are generally within a few years of being appointed to their position. Their organizations run the gamut from “micro” nonprofits to organizations with budgets up to $10 million. While some CEOs might understand how to read financials, they don’t always know what the terms mean or how to spot opportunities and red flags. “Even in the nonprofit world, there are very successful people who might not know what a gross margin is, how depreciation works, or understand ratios,” Miller says. Generally, a CFO works with a CEO on strategic planning, measuring the outcomes of programs, fraud and fraud prevention, internal controls, separation of duties, and more. “It’s all of the back-office stuff that isn’t necessarily exciting, but it’s also what protects the organization, keeps it viable, and keeps integrity in the staff and what the community and public see,” Miller says. Miller emphasizes how the CFO role has evolved from merely reporting historical data. “Now that’s just a small component of what a CFO does,” she says. “They’re the ones looking around to see what’s happening in the market, the community, and among the constituents. What’s going on in the world and how do we respond and prepare?” CONVINCING CEOS It can be tough for a CEO to ask for help. “They don’t want to admit to their board, staff, or peers that they need help,” Miller says. Some CEOs recognize they desperately need the information. Others recognize they need it, but they aren’t suffering enough to do something about it and aren’t ready to make a change, she adds. “Finding the 24

NewsAccount | Summer 2022

right language to help them identify the opportunities and red flags is important.”

Not all organizations need a fulltime CFO... what they need are the skills, resources, and vision a CFO provides. Miller offers one-on-one coaching, but for those CEOs who may want a different approach, she also offers a seven-week online web course that provides a high-level overview of the three main financial statements and goes on to provide a deep dive into each of them. She also teaches how to identify fraud, set up fraud prevention practices,

establish internal controls, identify and quantify Key Performance Indicators, determine what types of insurance might be needed, create a strategic plan, and engage donors. “It’s all of the elements you need to protect your assets and examine what you can and should be measuring to report out to your stakeholders.” Social media has provided great outreach. Miller provides subscribers with a weekly Monday Money Moment on LinkedIn. Videos on both LinkedIn and YouTube cover hot topics and key financial terminology. She provides handouts so course attendees can perform a stepby-step financial checkup of their organizations. Another resource she provides specifically for nonprofit boards: questions you should be asking your executive director/CEO. “I also let them know what they should be asking their CFO and what their CFO should ask of them.” She offers advice on how to frame these questions and recommends a monthly process/system to help organizations stay on top of their numbers and their operations. “You can’t let this stuff slide,” she asserts. BEST PRACTICES First and foremost is getting over the hump and bringing someone in. “My focus is to help an executive director or CEO alleviate the fear that they’re missing something or that they don’t know what they don’t know,” Miller says.

tion isn’t quite ready for an ongoing relationship, at least having the basics established will set the CEO up for continuing the operations of the organization towards meeting its mission. RECOGNIZING THE CHALLENGES Miller has great respect for nonprofit CEOs. “They must have such a malleable schedule and a balanced approach to the board, the stakeholders, donors, staff, and the mission. It’s a challenge and can be a very difficult position. They often recruit their own bosses – the board. They need to train the board members and coach them. They also hire and run the entire organization. And, they must have strong relationships with the funders/foundations/key stakeholders all while meeting the needs of their constituents. The executive director/CEO is in the middle. It doesn’t leave them with a whole lot of places to go when they could use a little more support and professional development.” Meeting people where they are is really important, Miller emphasizes. “Understanding the finance piece is so critical, but it’s not necessarily part of their repertoire. CEOs are in the role because they bring a lot of skills and background to the position. This is just one component that they may not have their head and hands around. My role is to help them get there.”

Set up a schedule: When Miller serves as an interim CFO, depending on the organization, she might come in once a month to go over financials, or more frequently, if needed, to help with internal controls, depending on whether the staff is doing the books and has training and an understanding of the information. Assess the staff: When possible, Miller works with the existing staff and resources to retain an organization’s historical knowledge. She says when she arrives at an organization the first time, it’s typically in chaos. She lines everything up and then evaluates and studies the staff. Are the people doing the jobs the right ones for the role, or do they need to be transitioned out and someone brought in with a different skill set? “Sometimes you don’t have to let someone go,” Miller says. “They see they’re not the right fit for the changes coming, and they move on.” Establish or rework systems: One organization Miller consulted with had a bookkeeper who had been on staff for 20 years. The processes the bookkeeper had been using – basically one expense line item for multiple varying expense categories – didn’t provide any insight into program effectiveness. Miller created a new chart of accounts to break out information more effectively. After the organization used the new system for several months under Miller’s guidance, the ED was able to identify where there were issues and make the strategic choices needed to move the organization forward to better meet its mission. Miller was then able to step back and let the long-term employee take over. “There’s something to be said and valued in the existing staff’s knowledge and experience,” Miller says. “The bookkeeper was competent but didn’t know the system wasn’t a good one. Once we showed her the right way, she was fully capable of maintaining it.” Create a transition plan: An important step in helping an organization transition back to life without an interim CFO is making sure the financials are realigned. “Once a CEO and the staff have information they can read and understand, they can start on a strategy and align it with their goals and resources,” Miller says. It’s important to be able to access and use the strengths a CFO offers, but if the organizaSummer 2022 | www.cocpa.org

HUMAN RESOURCES

Advice from an Autistic Part IV What to Do Once You Find Out About Having a Disability BY CAITLYN O’NEIL, CPA

This is the fourth article in my Advice from an Autistic series to help shed light on issues related to autism and disabilities so that we can all work towards becoming more inclusive.

ven as a disability advocate, I admit that finding out you have a disability can be shocking. You can be born with a disability or can acquire a disability through the course of your life. Navigating the Americans with Disability Act (ADA) can be incredibly confusing. And finding out what accommodations are available, and which work best for you, can be a journey. I share my own experiences here to offer suggestions for your journey with a disability. Step One: Obtain an official diagnosis. This is more applicable to people born with disabilities, but even with acquired disabilities it is important to have a doctor’s certification to access resources. Also, having an official diagnosis helps you and others understand why some things are harder for you. I had to go through the stages of grief and denial before I truly accepted my disabilities. The word itself has a negative connotation, so at first, I had a hard time accepting my disability. Your family may go through

The nature of the disability determines the type and intensity of the supports you need. grief and denial, too. In addition, the nature of your disability determines the types and intensity of the supports you need. For me, this was a devastating prospect at the time. I found working with a therapist very helpful for processing my feelings. You might find it helpful, as well. Step Two: Seek out others with the same disability. Having a disability can often be isolating. When I was young, there was an extremely negative perception of Autism. Therefore for

NewsAccount | Summer 2022

many years, I did not want to have accommodations and pretended that I was “normal.” However, once I understood how much I was struggling, I changed my view. I started to accept my disability and to follow other Autistic activists. They taught me about the ins and outs of my disability. Also, the advice on how to function better in society really helped me learn new skills. More importantly, I learned I was not alone. Many people had the same experiences of bullying, exclusion, and more. You can learn what kind of medications or therapies could assist along with appropriate accommodations. I can confidently say I am a much happier person having accepted my disability and employed accommodations. Step Three: Live your life. Once you know about accommodations and your own limitations, many disabled individuals begin to think about more advanced planning for events and inquiring about accessibility. The good news is that under the ADA businesses are required to be accessible. For example, when booking a flight, I inform the airline about my disability so that I can be placed in the first group to board and sometimes get assistance through the TSA experience. This helps mitigate my sensory sensitivities so I do not risk a meltdown during travel. Also, I am vigilant when it comes to my schedule. This means that for major social events I take time to clear my schedule so I do not experience sensory overload. I’ll admit not everyone is receptive, but no event or experience is worth suffering needlessly. In short, you need to advocate for yourself. You do not have to be a martyr to be a member of society. I hope this demystifies what you can do once you find you have a disability. Caitlyn O’Neil, CPA, MT, is a senior tax associate with CBIZ & Mayer Hoffman McCann P.C., Denver. She shared her story, “Not a Puzzle Piece: Being Autistic in the Work World” (www.youtube.com/watch?v=8hbKLGn8-no) as part of the COCPA See Me: Stories of Diversity, Equity, and Inclusion webcast series. Contact her at coneil@cbiz.com.

EDUCATIONAL FOUNDATION OF COCPA

Congratulations 2022 Gold Key Award Winners

ach year, the Educational Foundation of COCPA recognizes with the Gold Key Award the top graduating accounting student chosen by faculty at each Colorado college or university. Congratulations to these outstanding recipients and future CPAs:

University of Colorado Boulder, Leyi Feng University of Colorado Colorado Springs, William Sedgwick and Theresa Hornung University of Colorado Denver, Elena Fanari University of Denver, Karla Marlen Zamora Rodriguez University of Northern Colorado, JT Rafferty and Gavin James Spaur Western Colorado University, William Wood

Adams State University, Mandy Salazar Colorado Christian University, Yu Pettis Colorado Mesa University, Sydney Trichler Colorado Mountain College, Sandra Puc Colorado State University - Fort Collins, Megan Elizabeth Johnson Fort Lewis College, Nickolas Read Metropolitan State University of Denver, Marty Jacobson

Since 1958, the Foundation also has helped the best and brightest Colorado accounting students who want to become CPAs through scholarship dollars. Made possible through COCPA members’ financial support, scholarships are awarded primarily on merit and the student’s commitment to pursuing accounting as a career goal. To contribute to the Educational Foundation and continue its important work, go to coloradogives.org/EFColoradoSocietyCPAs/ overview.

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HUMAN RESOURCES

Making a Mentorship Match: Connecting with Future CPAs BY NATALIE ROONEY

In 2016, the Educational Foundation of COCPA launched its mentorship program to connect members with Educational Foundation scholarship recipients. The result has been an opportunity for growth – personally and professionally – for both the mentors and the mentees.

OCPA CFO Alicia Gelinas, CPA, oversees the mentorship program in her role as Executive Director of the Educational Foundation of COCPA. “One of the Board of Trustees’ original goals was to enhance the relationship with our scholarship recipients,” she says. “We wanted to introduce these students to the profession and increase the likelihood that they’d remain COCPA members, stay in the profession, and obtain their CPA license.”

Durango. This was the first time Gilbert had been an official mentor. “I’ve informally talked to friends’ kids about the profession, and I have a lot of enthusiasm and pride for being a CPA,” he says. “I like to let people know how challenging and rewarding accounting can be. If I pass on one nugget, then ‘job well done’ from the COCPA’s perspective. We’ve helped someone look at the profession differently than when I was that age.”

In 2016, the program made six mentor/ mentee matches. The program has grown each year, and in the 2021 – 2022 school year, 16 mentors and mentees were paired.

Gilbert and Klooster first discussed what she wanted from the mentor program and provided some discussion points. She was interested in learning about Gilbert’s non-traditional career path, which began with the Army and led him to 20 years in industry, before starting his own firm which focuses on data and technology in addition to more traditional services. “I explained how each career move was strategic,” he says. “I told her I always asked myself, ‘How will I better myself and improve my body of knowledge?’”

Students complete a survey to be matched with a mentor. The Foundation provides a basic framework of topics that mentor/ mentee pairs might like to cover, and everyone proceeds at their own pace. The relationship takes shape as it suits the student’s interests. SHARING A NONTRADITIONAL CAREER PATH COCPA Board of Directors member Jim Gilbert, CPA, CITP, CGMA, Managing Principal at Jim Gilbert, CPA LLC, responded to the call for mentors. Having followed a non-traditional career path, Gilbert thought he could bring a unique perspective to an accounting student. “Every one of us has a story to share,” he says. “There was realworld information I could pass on and let a student know what to expect.” Gilbert was matched with Aria Klooster, a student at Fort Lewis College in 28

NewsAccount | Summer 2022

Gilbert and Klooster met every four to six weeks over the school year, guided primarily by Klooster’s schedule. They began each meeting with what she wanted to cover. As she began receiving job offers, Gilbert offered advice about how to evaluate her options, going beyond compensation and discussing the company. Did it align with what she really wanted, her skillset, and what she would learn? Klooster and Gilbert were a great fit from the start. Klooster isn’t only an accounting major, she is studying accounting, analytics, and pre-law. Gilbert’s practice focuses on data and technology. Their relationship led to Klooster inviting Gilbert to present on technology at a Fort Lewis Beta Alpha Psi meeting.

Gilbert is careful to present ideas and concepts and encourage students to create their own path. “Follow what you love. That’s going to make you happier. If you start in tax and hate the grind, it’s not for you,” he says. “Figure out what suits your life – professionally and financially, for your family, and your work life balance.” Klooster has taken part in the mentorship program for two successive years; Gilbert was Klooster’s second mentor through the program. “It has been great,” Klooster says. “Jim shared his story about how he got started. I wanted to know about his career path and asked what else is out there beyond the traditional tax and audit routes.” She says Gilbert also offered important advice about the CPA exam and how other leaders in the profession have achieved where they are today. “It’s pretty inspirational,” she says. A MENTORSHIP THAT BECAME A FRIENDSHIP When Jim Brendel, CPA, retired from Moss Adams in June 2021 after 42 years in the accounting profession, he realized he finally had the time to give back to the profession in a way he hadn’t before. “This profession has given me so much that I have an obligation to give back,” he says. “So many people helped me that I’d like to do the same.” Brendel was the recipient of an Educational Foundation scholarship himself and has been a supporter of the Foundation ever since. He received an email asking for mentor volunteers. “It was right up my alley, and the timing was perfect,” he says. Brendel was matched with Darryl Lim who graduated from the University of Colorado Boulder with a Bachelors of Business Administration in Accounting and Finance and a Masters of Science in Accounting at 19 years old. After a great first meeting, the pair began meeting every two weeks for an hour-

long coffee chat. Brendel says that hour flies by as the two discuss many different topics. For their first meeting, they followed the suggested guidelines, but Brendel says the meetings have taken on a life of their own. Most of their conversations are accounting career and profession related, but they also use the time to catch up on happenings in their personal lives. “Darryl is an intelligent and incredibly motivated person. I gain energy just listening to him,” Brendel says. “We talk about what’s happening right now – his journey and mine. From the beginning, I shared anecdotes about what happened to me over the course of my career that might help him. It just flows so naturally.” Lim already had secured a position with one of the Big 4 accounting firms, so he didn’t need the job seeking help. He wanted to know about the work itself. “We talked a lot about the first few years in the profession – how to be successful and how to work with supervisors, peers, and clients,” Brendel says. “Darryl has focused his questions on the soft skills in public accounting, like how to network. I appreciate that about him because I, like most accountants, didn’t even think about that until later in my career - I had to play catch up. It’s something everyone could do better in our profession, and you can’t start early enough.” Lim says the biggest takeaway for him has been developing an understanding of the profession from the partner viewpoint. “I’ve learned about the career progression, but even more interesting has been hearing what it’s like from the 10,000-foot view – how the firm and the profession have evolved – and the international view. It was nice to hear that perspective from someone in a supervisory role and not just from the ground up.” In preparation for a summer trip to Japan, Lim has been learning to speak Japanese and studying Japan’s business culture. He invited Brendel to an economic forecast panel put on by the Japan America Society of Colorado. “The program was fascinating, and I learned a lot,” Brendel says. “It was also an opportunity to discuss with Darryl how you walk into a room where you don’t know anyone, approach people, and start a conversation.” Lim recently passed all four parts of the CPA exam and is looking forward to starting his career. He encourages other scholarship recipients to take part in the mentorship program. “It can be hard to forge a connection and gain perspective from someone who is at such a high level on your own,” he says. “This has been a great way to hear that wisdom.”

BUILDING THE FUTURE OF THE PROFESSION Over the years, some mentees have indicated they want a mentor with specific expertise, which is why Gelinas says there is a need for mentors from varied backgrounds. “In addition to tax and audit, we get requests for fraud, investments, and real estate. It’s a challenge to find mentors in specialty programs, particularly in forensics.” Gelinas says mentors frequently comment that the program is rewarding and reminds them how far they’ve come. Members also say they’re encouraged for the future when they meet students coming into the profession. “There are lots of things to which you can give your money and time that don’t necessarily have a direct impact,” she says. “Mentoring directly impacts an individual. You can be the face of what the accounting profession looks like. It’s not often that you have the opportunity to showcase your pride in the profession in such a meaningful way.” Gilbert wanted to encourage Klooster not to be afraid of having chapters in her life. “I wanted her to understand that you can do something for four or five years before you go on to something else,” he says. “Life doesn’t have to be a straight continuum based on how you want to proceed and your personal choices.” Be open to change. “In fact, be a leader of it,” he says. “Look at trends. Have progressive thoughts to be a progressive CPA. You can spend a lifetime experiencing the breadth and depth of this profession. Pick your path, be focused, and go for it.” PAVING THE PATH TO CPA The future of the CPA pipeline continues to be challenged, and even accounting majors aren’t fully decided that they’ll follow the path to CPA. “We need more CPAs,” Gelinas notes. “Everyone knows it and feels it. And the profession offers great opportunities.” She hears repeatedly that one of the main reasons students pursue their CPA is that they personally saw the benefit of it in someone else’s life. “For students who already have demonstrated academic excellence in accounting, a mentor relationship is a prime opportunity to encourage them to continue on their path to CPA - and begin to build their network, as well.” Brendel says the mentorship program isn’t just about who’s coming in, but also about asking, ‘How can the profession keep this talent longer?’ “People are more likely to stay when they pick up a few things about

TIPS FOR MENTOR-MENTEE RELATIONSHIPS To begin a mentor/mentee relationship, consider these tips to get started: Set expectations together: Early on in the relationship, establish specific expectations and goals so you know what you’re working toward. What is your mentee hoping to learn from you? Be supportive: The mentor should support the mentee, and the mentee should support the mentor. Both parties are equally important in the relationship. Establish a schedule: Set up regular meetings. Have open lines of communication between meetings to discuss any pressing challenges. Actively listen. Active listening is the most basic mentoring skill; the other skills build on—and require—it. When you listen well, you demonstrate that the other person’s concerns have been heard and understood. Share stories and struggles. Mentors are at their most effective when they share lessons from their own experiences. By sharing your story with all its ups and downs, you build trust with your mentee. BECOME A MENTOR To participate in the Educational Foundation of COCPA mentorship program, contact Stacy Svendsen, stacy@cocpa.org. how to be successful,” he predicts. “Hearing someone else’s journey is helpful. This is a great profession, but it can be hard at times. Hopefully hearing that we all hit tough spots and that you can work through them and have a really great career in accounting helps people stay longer.” Klooster says her takeaways from her two years as a mentee are that accounting has a lot to offer today’s young professionals. “The possibilities are endless. Everyone’s story is different from what I’ve seen because my two mentors have taken totally different paths. Accounting is unique in that way. This has been an amazing opportunity to learn from people with years of experience in their careers and to see what’s out there.”

Summer 2022 | www.cocpa.org

HUMAN RESOURCES

The Retention Riddle: What Does It Take to Keep Your People? BY NATALIE ROONEY

How can the accounting profession encourage its best and brightest talent to stay when so many other options exist today?

ince April 2021, more than 19 million U.S. workers have quit their jobs – a record pace. According to a September 2021 global study by McKinsey & Company, 53 percent of employers say they’re experiencing greater voluntary turnover than in previous years, and 64 percent expect the problem to continue or worsen over the next six months. In fact, 40 percent of employees say they’re at least somewhat likely to quit in the next three to six months. Why should you care about employee retention instead of just letting them go? First and foremost, it’s expensive. According to the Society for Human Resource Management (SHRM), it costs an average of six to nine months’ salary to replace a worker. COCPA Chair Angela Roberts, CPA, managing director of Aclivity, sees firsthand how much money employee departures cost employers. First, there’s the time it takes for a new hire to get up to speed and produce at the same level as current employees. Additionally, employers also likely are overworking their other people during a job search. Clients may not have anyone to contact. “That burden costs reputation, time, and money,” she says. “There is an additional risk when the other people start to think about leaving.” WHAT DO THEY REALLY WANT? It’s not always about the money. “Money is enticing, but when you ask young professionals why they’re leaving, it’s about their time,” Roberts says. “This newest generation is plugged in all day, and they don’t want to work overtime or around the clock because they don’t see the benefit or value in it. They have hobbies. They have side hustles. They don’t believe their career is the only way to make money. They are smart and can do different things.” So, beyond money, what do today’s young professionals want? A remote work option. “No one wants to work 10 to 15 hour days; they don’t even want to come into the office two days a week,” Roberts says. “They want the flexibility to live in different cities or even countries. People want to enjoy their jobs and their hobbies.” According to Upwork’s Future Workforce Report 2021, nearly 28 percent of respondents are expected to be fully remote in the next five years. That increased from 22.9 percent in November 2020. Roberts says she still hears that people want to believe in a company’s mission. “They want to know what you are doing, how you are doing it, and that yours is a company they can stand behind,” she emphasizes. HOW ORGANIZATIONS ARE FLEXING To address employees’ interest in working in a flexible workstyle, BDO introduced BDO Flex more than a decade ago. Partner Erin Breit, CPA, says the program has formally evolved through discus30

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sions from the national level down through the local offices. “The workstyle and strategy encompass everything,” she explains. BDO Flex addresses not only part-time employees who have different hours but also where employees want to work. “We trust our employees to get all our work finished. We prioritize outcomes rather than where or when they’re working,” Breit says. “We train our teams to communicate to let everybody do what they need to do to have a good work + life fit.” Local offices can make changes as needed, as can individual teams like audit and tax. “They just have to communicate their needs, when and where they’ll be working, and put a plan together,” Breit says. “We encourage robust, open communication. It allows team members to prioritize their work outcomes over the hours they’re putting in and where they’re working. It leads to a less stressful work environment. Being able to do everything in your life that you enjoy outside of work while still having a career is important.” CREATING A SUSTAINABLE EXPERIENCE Doug Slaybaugh, CPA, CGMA, PCC, CPCC, founder of The CPA Coach, says evening out what he calls the pendulum of public accounting is key to attracting and retaining good people. “Firms swing hard in the direction of the moment,” he explains. “You have an opportunity to create sustainability in the middle. What can you proactively do for the good of your people to create a place that lands the pendulum in a viable and intentional state?”

Last September, Slaybaugh wrote a LinkedIn blog post: A public accounting experience to stay for. It was actually written for a mentor and public accounting firm partner to offer ideas to help create a better experience for firms and their people.

• Cash remains king. Whether it’s end of season bonuses, bigger raises or spot bonuses, money usually talks.

One idea came from the automotive industry: Toyota is famously known for asking “why” five times to uncover the cause and effect of a concern. Slaybaugh recommends asking your team five “what” questions to better understand their circumstances and the roots of their concerns. He provided some examples: What is on your mind? What would be better? What more can you tell me? What else?

• Some form of hybrid flexible working arrangement in some or all circumstances.

“‘Why’ creates a position of defensiveness,” Slaybaugh explains. “Why did you do that? Why did you think that? So much more is possible with ‘what.’ It doesn’t imply judgment and allows your team to do the thinking. It leaves a wide berth to be curious. By asking those ‘what’ questions and really digging in, you can move from general and conversational to specific and impactful.” JOB CRAFTING FOR RETENTION Slaybaugh says people often leave jobs without ever asking for what they really want or knowing what they could have had from the current employer. Job crafting can help prevent that from happening. It involves three components: Task Crafting: Changing up responsibilities. Changing the nature of certain responsibilities or dedicating different amounts of time to what you currently do. Relationship Crafting: Changing up interactions. Changing up who we work with on different tasks, who we communicate and engage with regularly. Cognitive Crafting: Changing up your mindset. By changing perspective on what we’re doing, we can find or create more meaning about what might otherwise be seen as ‘busy work.’ Sweeping floors at a hospital might sound like it isn’t fun and is just dirty work, but someone sweeping the floors might also love the job because it helps save lives by keeping a clean room and environment for patients to recover. “You can job craft a better reason to be doing what you’re doing,” Slaybaugh says. “It’s a process to go through these retention steps, and it’s usually skipped. You find out in an exit interview when you hear things like: ‘If only you’d given me more challenging tasks, a different team, or a different manager, or if I understood the impact of my work.’ But by then, it’s too late.” Slaybaugh recommends conducting stay interviews with your team. A stay interview is an exit interview designed to happen before someone quits. “Ask the tough questions. Ask what would make the job better? What would make you leave? Have you thought about leaving? What can we do to improve? Find out what’s going on and then use job crafting to better align with the employee’s expectations.” Roberts says stay interviews also can be helpful to determine if a potential move is simply about money. “If it is about money, pay it,” she asserts. “If you don’t, you’ll just end up paying a recruiter a percentage of the new base salary to find someone else. If you think someone is at risk of looking for a new position, have the conversation and make the investment.” THE THREE BIGGEST THINGS Slaybaugh says firms are reacting to these circumstances in three major ways:

• More time off. This could be PTO, an extra day off, or just more time off in general.

He believes what really can have an impact on the profession and its people is better conversations, especially around the public accounting experience and well-being. Slaybaugh says accounting leaders know how to be mentors, but the soft skills needed to get in touch with what’s important to their teams might not be in their playbook. He suggests training to build those skills. “Because of our prob-

People often leave jobs without ever asking for what they really want or knowing what they could have had. lem-solving reflex as CPAs, we don’t go deep enough,” he observes. “What we really need to do is listen, create situations for people to be heard, and ask the right questions so we can gain a better understanding of what’s going on.” Ultimately, Slaybaugh suggests opening your mind to all possibilities for retention. “Don’t be so worried about finding the right answer,” he encourages. “Be creative! Seek options that are original, personal, or aren’t typically offered. Do something that grabs the attention of your people or that you hadn’t thought possible.” THE EMPLOYEE WISH LIST Every time Roberts works with a candidate, she asks what he or she would like from the next job or employer. These direct quotes from candidates are enlightening: • Work life balance is very important to me. I would love to work at a company that doesn’t just parrot that it promotes/encourages work life balance. I would like to work where people at all levels of the company live it. I understand that accounting/tax is deadline driven, and there will be weeks throughout the year where I will be required to work more hours than usual. However, I don’t want to work somewhere if this is the case all year. I don’t want to feel I constantly have to put out fires. • I want an employer who invests resources in employees and wants to see them grow within the company. Ideally, I will be at the next company for years. I am not interested in job hopping. Good/healthy company culture where management/higher ups want to see employees grow with the company and help to facilitate that. I would like my employer to support my efforts to learn and improve by offering in depth training/training opportunities, goal setting, regular feedback, and skill building. • I see myself working in a mid-size to large company. I am not interested in working in public accounting. Any industry is fine if it is stable and has good long-term potential. I want to work at a company that has a sustainable business and can provide growth for its employees. CONTINUED ON PAGE 32 Summer 2022 | www.cocpa.org

HUMAN RESOURCES CONTINUED FROM PAGE 31 • I am not picky about my job title as long as the company I work for, and the job, meet the other items on my list. • With the world being so volatile (which I don’t anticipate changing anytime soon), I would like to work for a company that is financially healthy/stable and in an industry that has long-term potential. I want to feel confident that the company I work for and my role - is secure and that I have job security (assuming that I am a dedicated, hard worker and high performer in my role, which I am confident I will be no matter where I work). • I am open to working in office, hybrid, and/or remotely. I would prefer that if the job requires employees to be in office it will be within walking distance from where I live or conveniently accessible via public transit. I am open to job opportunities that are outside of Denver and Colorado if they are remote and/or if they only require in-office work (i.e., travel to their office/headquarters for big meetings and/or projects) sporadically throughout the entire year.

WHAT’S AT RISK? What’s at risk if organizations don’t change how they think about retention? “The profession as a whole is at risk,” Slaybaugh cautions. He points to an English study that revealed people consider accounting the second most boring profession. The most recent AICPA Trends report shows accounting firms continue to hire more non-accounting graduates as work continues to be realigned, outsourced, or replaced by technology. “That’s all fine unless we’re not creating other opportunities for accountants,” he says. “Think of it like a movie. How do we get people in seats? We put out something people want to see. If we’re not going to do that, we’ll lose them. The experience itself is where it’s at – creating the best experience for accountants.”

• A company that has systems, processes in place, and provides to its employees the resources to do the job. I don’t want to be putting out fires every day.

TRUST YOUR PEOPLE Above all, Breit says trust your employees to do their work. “Most organizations can have some version of a flex work environment where the priority is completing quality work by the deadline,” she says. “If you’re in management, it boils down to trust. Without it, the flex work arrangements won’t go well because you’ll always question what people are doing.”

“This generation is telling us, ‘I’m here, and I’m smart enough,’ so let’s figure out ways to do things better,” Roberts says. “Telling them we’ve always done something a certain way won’t fly. They have ideas for new ways of doing things and can contribute. We gave this generation a seat at the table when they were being reared, so they’ve always had a voice. Now, they expect it when they go to work. If you don’t listen, they feel disrespected and walk away.”

Breit says she cannot emphasize enough the importance of communication between team members and establishing clear guidelines and expectations. To that end, several years ago, BDO’s Denver office hired an outside consultant to provide communication training. “That served as our foundation,” Breit says. “Trusting your employees helps with motivation and achieving the outcomes you want. Management, trust your people!”

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SPECIALTY CREDENTIALS

The AICPA CFF® credential is evolving to meet emerging global demands – are you? BY KARI C. DAY, CPA, CGMA, FCPA, CFE

s CPAs and their clients work through the massive business changes worldwide, 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® credential 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 NOW IS THE TIME TO UPSKILL Fraud and financial forensics are primary concerns 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 knowledge and business acumen 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 comprehensive exam using the CFF Exam Review Course, or complete the Core and Specialized Forensic Accounting Certificate Programs. Successful completion of both certificate programs satisfies the 95-hour CPD requirement for CFF credential applications. Visit https://www.aicpa.org/membership/landing/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. Dr. Kari C. Day, CPA, CGMA, FCPA, CFE is an AICPA Senior Manager for the Certified in Financial Forensics CFF® credential.

Summer 2022 | www.cocpa.org

MANAGEMENT STRATEGIES

How to Build Confidence in a Time of Anxiety BY JESSICA HUBBARD

ver the past two+ years, finance professionals around the world have had to adapt and adjust to remote working — which for many has or will become a permanent reality. According to a recent Gartner survey, 74% of CFOs intend to shift some employees to permanent remote work as a way to complement ongoing cost-cutting measures in the wake of the COVID-19 pandemic. Yet while some companies have noticed a boost in productivity within remote finance teams, there is growing evidence of increased anxiety, unease, and isolation among remote workers. And for junior finance and accounting professionals in particular, the reduced social presence of managers and mentors (coupled with a tough economic environment) is prompting a potential crisis of confidence. “With the shift to remote work, all the emphasis is now being placed on output and meeting targets, as opposed to ‘presenteeism’ and long hours in the office,” explains Anthony Boateng, FCMA, CGMA, chairman of CIMA’s Research and Development Panel. “This is requiring many finance professionals to unlearn old ways, broaden their skillset, and adjust their entire mindset — which is certainly contributing to a hit in confidence levels and fears of the unknown.” 34

NewsAccount | Summer 2022

FM spoke to Boateng and business performance experts to find out how finance professionals can build and display confidence in the face of rising anxiety and the rapid digitization of finance functions. Seek multidisciplinary skills and teachers. With many of the manual and repetitive aspects of financial work becoming automated, Boateng says professionals have to identify areas where they can “complement” digitization and assume more strategic and influential roles within their organizations. “Most professionals should be looking at acquiring a broader set of skills (including soft skills and management techniques) and studying across disciplines to become adept at interpreting results for nonfinance stakeholders, for example, and to engage more powerfully and persuasively with leaders,” he explains. “I also recommend seeking mentors with expertise in nonfinance fields, who can bring a completely new perspective and support your move to a more multidisciplinary approach.” Build a framework for systematic decision-making. According to Jason Hamilton, ACMA, CGMA, director at First River Capital, an advisory firm with offices in South Africa and the UK, a major source of anxiety within finance teams is the need to deal with and manage multiple and competing agendas (or demands) within an organiza-

tion — whether in a crisis or in the normal course of business. As leaders within the organization, management accountants can create an environment that enables integrated thinking and provides structure and clarity amidst these competing demands. “This can be achieved through building a framework with clear boundaries that are designed to aid the assessment and decision-making process within teams,” says Hamilton, who also is a member of the Association’s Thought Leadership & Business Ethics Committee. “The finance team members will gain clarity around what is required and which processes will be followed.” Reboot and refresh your internal dialogue. Jo Searle, an executive coach based in South Africa, highlights the importance of becoming aware of your internal dialogue and thought patterns — and identifying negative chatter. “Feelings follow behavior, and behavior includes your own thoughts and beliefs,” she explains. “If you are feeling anxious, know that you have listened to a thought that says, for instance: ‘You don’t know how to be effective working remotely’ … and you have agreed with that thought.” However, by learning to become aware of your thoughts, beliefs, and consequent

MANAGEMENT STRATEGIES feelings, you give yourself a choice and the opportunity to press reboot.

during the process, and allowing all narratives to be heard and considered.”

“The choice is to listen, agree, and feel bad, or you can choose a different thought, such as: ‘If I change my daily habits, I will form a new sense of myself as capable and creative,’” says Searle.

Avoid comparisons (and social media scrolling). “Comparison is the thief of joy, and it also destroys confidence,” cautions Nic Haralambous, a South African entrepreneur and author of How to Start a Side Hustle, who points to social media as a potential instigator of comparative thoughts.

Create a sense of purpose. Being an integral part of how an organization understands and navigates an uncertain world can be a confidence boost as well. Although often the responsibility of leadership, “sense making” is an important process and tool that requires nurturing when looking to build confidence, notes Hamilton. “Within the finance function, leaders can play a pivotal role to ensure that the correctnarrative is designed and communicated through ‘sense giving,’ which not only provides a message of hope but also a unifying, shared narrative,” he says. “And, it will require the creation of space for open and honest communications, showing empathy

“Social media makes it easy to feel like everyone else has a plan and is moving on up … but remember that for every impressive and envious post you're viewing, there are countless other things that happen in a person’s life that aren't posted on social media.” According to Haralambous, the more you “like” and follow others on these platforms, the more difficult it becomes to build and maintain your own confidence. “Do what you do, and remain consistent and aligned with your own goals,” he advises.

Be proactive about getting support. When working remotely, finance professionals may find it harder to speak up when they are struggling in a particular area. Yet according to Boateng, the process of identifying an area of weakness, difficulty, or inexperience — and asking for support — can build one’s confidence. “It takes courage to admit you may be struggling with something, but asking for help or guidance is, in itself, a sign of strength,” he says. “In my own teams, when someone has reached out for support and has clearly identified an area that needs focus or development, I see that as a sign of confidence and an eagerness to improve.” Jessica Hubbard is a freelance writer based in South Africa. To comment on this article or to suggest an idea for another article, contact Drew Adamek, an FM magazine senior editor, at Andrew.Adamek@aicpa-cima.com.

Get the NEW Colorado Society of CPAs Mobile App Tools for Your Profession at the Tap of a Button

Download the new mobile app by the COCPA and easily access the resources and industry updates you need to succeed. APP FEATURES View upcoming events and CPE programs Read the latest accounting news and information Receive association announcements and live updates Easily access COCPA member discounts and benefits Connect with our COCPA Career Center

Summer 2022 | www.cocpa.org Explore the app and download for free at cocpa.org/mobile

MOVERS & SHAKERS BARBARA J. GUTIERREZ, CPA, CGMA Barbara J. Gutierrez, CPA, CGMA, Chief Financial Officer, Innovage, Denver, was named to LogicMark Inc.'s Board of Directors, on which she'll chair its Audit Committee. BRENDA LAMMERS CPA Brenda Lammers, CPA, joined Altus Wealth Group, Colorado Springs, as senior vice president and financial adviser.

JESSIE MARTINEZ, CPA Jessie L. Martinez, CPA, FORVIS, LLP, Colorado Springs, was named to The Resource Exchange Board of Directors.

ALEXANDRIA ROMERO, CPA, MPACC Alexandria A. Romero, CPA, MPAcc, joined Chris Hervochon, CPA, CVA LLC, Hilton Head Island, South Carolina, as Virtual Chief Financial Officer. Also, she received the AICPA Outstanding Young CPA Award. TERRI VELASQUEZ, CPA, CPFO Terri Velasquez, CPA, CPFO, Finance Director for the City of Aurora, has begun her term as president of the Government Finance Officers Association.

EIDE BAILLY LLP Eide Bailly LLP named Frank J. Donati, CPA, Kevin R. Mohr, CPA, MST, and Jon D. Stanfield, CPA, as partners. All are based in the Denver office.

MITCHELL CLARK, CPA Mitchell Clark, CPA, was promoted to principal at WhippleWood CPAs, Littleton.

Northeastern Junior College honored Carol Keil, CPA, PFS, Johnson & Associates, CPAs, PC, Sterling, with its Service Award. Keil also won the COCPA Bronze Medal Award in November 1995 for receiving the third-highest score on the CPA Exam that year. She displayed the award on her desk for her entire career. “It always meant a lot to me,” she said. “I was just a farm girl coming out of a high school graduating class of nine in Bethune, Colo., looking to pursue my love of bookkeeping and accounting. JERRY WENZEL, CPA, CGMA Jerry Wenzel, CPA, CGMA, joined SOBRsafe, Greenwood Village, as chief financial officer.

ELIJAH WATT SELLS AWARDS Congratulations to Colorado Uniform CPA Examination candidates Dylan Croom, PwC LLP, Denver, and Scott Haveman, Deloitte LLP, Dallas, who have won the prestigious Elijah Watt Sells Award from the AICPA. To qualify, the candidate must obtain a cumulative average score above 95.50 across all four sections of the exam, pass all four sections on the first attempt, and completed testing in 2021.

TAX STUDY GROUPS Boulder/Longmont Tax Study Group WEDNESDAYS, VIRTUAL ONLY NOON-1:00 P.M., MT

COLORADOBIZ MAGAZINE ColoradoBiz named these Colorado-headquartered firms to its Top Colorado Accounting Firms list: Boulder CPA Group P.C., Boulder Brock & Co., CPAs, P.C., Boulder

Wednesday, JULY 20 Additional 2022 dates: Aug. 17, Sep. 21, Oct. 19, Nov. 16, Dec. 14. For more information, contact Lynn M. Mitton, CPA, MT, MPA, 303-499-7445, or email lmitton@tandemcpas.com.

CLA (CliftonLarsonAllen LLP), Greenwood Village The Shafer Group P.C., Colorado Springs Dalby, Wendland & Co. P.C., Grand Junction WhippleWood CPAs, Littleton The University of Northern Colorado Monfort College of Business Accounting and Computer Information Systems (CIS) Department was ranked No. 1 worldwide for experimental research in Accounting Information Systems (AIS). 36

NewsAccount | Summer 2022

Denver Tax Study Group TUESDAYS, VIRTUAL ONLY NOON-2:00 P.M., MT

Tuesday, JULY 26 Additional 2022 dates: Aug. 30, Sep. 27, Oct. 25, Dec. 6. Register at www.cocpa.org.

IN MEMORIAM We extend our sympathy to the family and friends of the following members, former members, and friend of the COCPA: A. Curtis Robinson Montrose, Colo., Member since 1960 Katrina L. Salem Golden, Colo., Member since 1995 James E. Sorensen, Ph.D. Englewood, Colo., Member since 1970 R. Donald Taylor Buena Vista, Colo., Member since 1985 John P. Volkman Centennial, Colo., Member since 1984 Rodney A. Broughton Loveland, Colo. Peggy L. “Peg” Cronin Spouse of Daniel Cronin, Former COCPA Technical Director Littleton, Colo. Keith Crichton Centennial, Colo., Member since 1983 Clayton Peterson Scottsdale, Ariz.

CLASSIFIEDS PRACTICES FOR SALE, PURCHASE, OR MERGER Selling your practice in 2022 or looking to purchase a practice? Let’s talk! If 2022 is your year to sell, please call us today to start the process. Selling your firm is complex. ACCOUNTING BIZ BROKERS can help simplify the process! We have been selling CPA firms for over 17 years, and we know your market. We have a large database of active buyers. We work with industry specific lenders eager to assist buyers with financing. Current Listings: New: Denver Gross $441k; Garfield County CPA Firm Gross $340k; Gunnison, Colo. CPA Firm Gross $110k. Kathy Brents, CPA, CBI, at 866-260-2793 or Kathy@AccountingBizBrokers.com, or visit our website at www. AccountingBizBrokers.com.

WOMEN’S SUMMIT August 26, 2022 8:30am - 5:30pm

IN-PERSON & VIRTUAL EVENT The annual COCPA Women’s Summit provides practical strategies for women to enhance their personal and professional development. With so many successful, professional women in one place, attendees can easily connect, engage, and gain new perspectives.

Key Sessions } CPA Pipeline Update } Advocating for Yourself } NEW THIS YEAR: Two hours of ethics credit

The Women to Watch Awards ceremony will take place at a special luncheon during the Women’s Summit. Winners are selected in two categories: Emerging Leaders Leaders of Note

NOMINATION DEADLINE: JULY 15 Enjoy networking opportunities throughout the day. To register for the event or to nominate an outstanding female CPA for a Women to Watch Award visit: Alexandria Romero, past AICPA Chair Kimberly Ellison-Taylor (left), current AICPA Chair Anoop Mehta (right), AICPA Vice Chair Okorie Ramsey (2nd row, left), and their colleagues capture a moment at the AICPA 2022 ENGAGE Conference.

cocpa.org/womentowatch

Summer 2022 | www.cocpa.org

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