CPAmerica Association Exchange Program

SYDNEY, AUSTRALIA

Association Exchange Program: An Overview

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I. Introduction Definition GREENSBORO, NORTH CAROLINA

An exchange between a CPAmerica, Inc. firm and a related international firm of an experienced accounting professional to work at a host firm on average for one to three months.

It is also a situation whereby a participating firm assigns a staff member to do temporary work at another member firm for a period of less than a year.

We consider placements for more than a year as employments (or foreign business desks).

This manual will only cover staff exchanges which are less than a year and usually less than three months.

Rationale One of the strategic initiatives of CPAmerica, Inc. is to promote a culture of collaboration among our member firms in identifying cross-border opportunities in strategic markets.

Action steps identified are: • Institute a structure for staff exchanges amongst member firms to increase collaboration and cooperation between and amongst member firms • Request, where applicable, that firms invest in appointments that will foster a collaborative culture of working as teams on cross-border engagements • The associations actively support and encourage staff exchange programs. The financial responsibility of the association exchange program is that of the participating member firms.

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I. Introduction Role of the associations/networks The association will act as clearing house for firms interested in receiving or sending a visiting professional - ultimate responsibility for the exchange rests solely with participating firms, not the associations.

EDINBURGH, SCOTLAND

CPAmerica, Inc. will act as a focal point for member firms desire to host and/or send visiting professionals.

CPAmerica, Inc. staff will assist in locating available opportunities. If an opportunity is located, final arrangements will be the responsibility of the participating firms.

Benefits: • Foster closer relations amongst participating member firms and their staff • Provide a platform for knowledge and experience sharing • Allow participants to broaden their experience - to become more culturally aware and internationally minded • Encourage better collaboration to build trust • Help the firm attract and retain talent by offering overseas exchange opportunities • Enhance the firm’s brand as a true international business

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I. Introduction

SINGAPORE, ASIA

Sending (and host) firm’s expectations: Besides the primary benefit of a visiting professional, the hosting firm has a proper expectation of sending a second visiting professional on an exchange. The initial sending firm should expect to act as host for a subsequent exchange.

Exchange coordination The ultimate responsibility for the specific exchange rests with the managing partner and/or leader of both the host and sending firms. To that end, both firm leaders should be involved in the exchange process.

As the exchange is to provide exposure to the culture and technical capabilities of the host firm, other firm personnel will most likely be involved (e.g., Tax partners, A&A partners, and/or HR personnel).

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II. Key Considerations Exchange checklist: 1. Proper paperwork and documentation:

AUSTIN, TEXAS

• Work permits or/and visa requirements and the process of application: procedures, documentation, duration and costs involved should be considered carefully and early. Some countries have tight immigration policies and make it very difficult for students or foreign accountants to apply for a working visa. Other countries may have a long and complicated process of application. Please remember, a visa to work may require a much different and longer process than a visa as a tourist • In some countries, the host firm has to show proof that there is no other local person qualified to perform the job or the presence of the visiting professional is part of an exchange program of a global organization and is temporary in nature.

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II. Key Considerations Exchange checklist (continued):

CHICAGO, ILLINOIS

2. Income tax/other taxes: It must be determined if the visiting professional is subject to income tax/other taxes within the host country. In some countries such as Australia and the U.S., an income tax number will be required if the visiting professional is to receive compensation directly from the host firm.

3. Required medical check-ups and insurance coverage: Some countries require different types of insurance coverage and health certification.

4. Language capabilities: It is very important to ask: is the staff fluent in the language of the host country? For example, exchanges with China or Taiwan will require the visiting professional to have fluency in Mandarin. Arranging for the exchange professional to handle only English speaking clients may prove difficult and limit an exchange.

5. Cost of living in the host country: In some countries/cities, the cost of living is very high which can be a burden to either the exchange professional or the compensating firm.

6. Familiarity with the host country’s business environment: While diversity is always celebrated, it helps if the participating professional has a thorough understanding of laws and regulations (e.g., Commonwealth countries), speaks the same language and/or has congruent cultural backgrounds.

7. Applicability of visiting professional’s skills in the host country: It is optimal if the skill set of the visiting professional can complement the host firm, (e.g., the ability and experience in handling certain segment of clients).

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III. Compensation Guidelines Compensation: remuneration & exchange allowance LONDON, ENGLAND

• Typically, the sending firm will maintain responsibility for the compensation package as well as travel to and from the host firm location. The hosting firm is usually responsible for all expenses incurred in the host country with regards to the exchange - housing and transportation.

• Visiting professionals usually continue to receive their current rate of pay in their home office plus an exchange allowance (salary is normally paid by sending firm). However, due to differing tax and labor laws in different countries, we recommend that the arrangements be discussed and mutually agreed between the sending and host firm.

• Variance in remuneration for different countries should also be noted and taken into careful consideration, as salary costs vary significantly between emerging and developed markets.

• COLA refers to the cost of living adjustments which also need to be reviewed on a case-by-case basis. There should be a compensation analysis to determine salary comparison and cost of living breakdown for each exchange or location, as costs of living vary significantly from city to city. This will help determine if there is a need to make a recommended change in the compensation package for the exchange professional.

• Where there are insufficient engagements for the host firm to continue supporting the visiting staff for the original duration, it would not be unusual for the host firm to give earlier notice to shorten the original duration period. As a recommendation, at least one month’s notice is proper.

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III. Compensation Guidelines Flight & travel arrangements • The sending firm typically pays for the flight and travel insurance. Final travel arrangements will be the decided upon by the host and sending firms • Economy-class air ticket on a reputable airline is expected and visiting professionals are usually met and greeted upon arrival at the airport by the host firm • Typically, a day or two of rest and acclimatization for the visiting professional is factored in before commencing work • In some cases, visiting professionals make their own travel arrangements and invoice the sending firm as needed

Health insurance and other forms of insurance PORTLAND, OREGON

Health insurance and other required forms of insurance for the visiting professional are provided by the host firm.

The sending firm will make arrangements for passports, photos, visa application/processing as well as other expenses which may be required to prepare the visiting professional for the exchange.

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III. Compensation Guidelines Accommodations • Accommodations are normally arranged and paid by the host firm

MELBOURNE, AUSTRALIA

• Accommodations can be simple and cost effective but must be of a reasonable quality, i.e., not too crowded and within walking distance to the host office. When not within walking distance, the host firm should make transportation accommodations • It may be advisable to seek feedback from visiting professionals on their accommodation needs before proceeding with confirmed plans

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IV. Tips For A Successful Exchange Induction As any exchange program can be a shock for people coming from different cultures and backgrounds, a good induction program is highly recommended.

PARIS, FRANCE

It will help alleviate some of the stress and unfamiliarity and ensure the visiting professional and host firm get the optimum benefit from the exchange.

Before exchange: It is advisable for the sending firm to brief the host firm prior to the exchange to ensure that there are no surprises and expectation gaps. The host firm and person/group assigned to the visiting professional must be well prepared for the exchange.

Upon arrival: • The host firm conducts an induction or on boarding program to communicate expectations at the host firm level • Relevant areas for the induction include: work requirements, SOPs, HR policies, core values and ethics, familiarization with local customs and etiquette, as well as the firm’s software During exchange: • Visiting professionals should have a designated person to report to and liaise with • Preferably, this is a senior staff person with international experience who can guide the visiting professional around the office and in daily needs

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IV. Tips For A Successful Exchange • When practical, visiting professionals should have projects assigned to them and be put into teams BOSTON, MASSACHUSETTS

• Through this buddy/mentor/coach system, the host firm can have periodic follow up with the visiting professional, be able to address any issue and ensure success of the exchange • It is advisable that those working with visiting professionals should be properly briefed on what to expect and the value that can be gained • Visiting professionals are expected (and should be encouraged) to participate in host office’s activities, office and after-hours outings, and daily team interactions, including lunches and dinners, where appropriate

Final thoughts: Details and arrangements for each exchange should be agreed upon by both sending and host firm’s managing partners or appropriate and responsible person. Ultimate responsibility is that of each firm. No other party, including CPAmerica, Inc. or any other association or network member firm, has responsibility for the exchange.

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