November/December 2012 - Florida CPA Today | Volume 28, Number 6

F L O R I D A

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NOVEMBER/DECEMBER 2012

florida C P A

TODAY

contents NOVEMBER/DECEMBER 2012

VOLUME 28, NUMBER 6

A P U B L I C AT I O N O F T H E F LO R I DA I N S T I T U T E O F C E R T I F I E D P U B L I C A C C O U N TA N T S

cover story

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Building Your Best Performance Management System

features 6

CPA Energy Boost New Year’s Lifestyle Choices to Help Make Your Day More Productive

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Collection and Recovery Issues for CIRAS Accounting for Assessments and Foreclosures

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Strategies for Restructuring Commercial Real Estate Debt

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A Kaleidoscope of Resources 27th Annual Accounting Show

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Change Management and the Small Firm

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For the Good of the Order Florida CPA/PAC Thanks Members for Support

Recently Implemented 408(b)(2) Plan Costs and Investment Fee Transparency Requirements

departments 5

Board chair’s message

14 News briefs 30 DOR update 32 Staff reports 34 Marketplace

FLORIDA CPA TODAY

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36 On the move www.ficpa.org

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F L O R I D A

Access Florida CPA Today Archives Online For your convenience, Florida CPA Today articles from 1997-present are posted on the FICPA’s website at www. ficpa.org/ficpa/Members/Tools/Publications/FCT/Archives.

The archives provide a variety of previously published information, including technical articles written by member CPAs, legislative updates, DOR and IRS updates and much more.

PRESIDENT/CEO Deborah L. Curry, CGMA SR. DIRECTOR OF MARKETING & COMMUNICATIONS Jan Dobson, CAE EDITOR Suellen D. Wilkins GRAPHIC DESIGNER Loleta K. Bolden PUBLICATIONS COORDINATOR Dianne Dearduff EDITORIAL COMMITTEE Walter C. Copeland, CPA, chair Michael S. Kridel, CPA, vice chair Matthew P. Behnke, CPA • Douglas E. Day, CPA Lynda M. Dennis, CPA • David J. Hochsprung, CPA Troy Y. Manning, CPA • Vicki H. Meyer, CPA William C. Quilliam, CPA, Ph. D. All articles submitted to Florida CPA Today are subject to technical review, Editorial Committee review, space availability and editing requirements and restrictions. Please contact the editor before submitting unsolicited manuscripts.

Florida CPA Today publishes letters to the editor in its Members’ Forum. For information about the guidelines, visit www.ficpa.org/letterstoeditor.

Statements expressed herein are those of the identified authors and not necessarily those of the Florida Institute of Certified Public Accountants, Inc., nor should statements be considered endorsements of products, procedures or otherwise.

The FICPA reserves the right to reject any editorial material or paid advertising that does not meet Florida CPA Today criteria or detracts from its ethical and professional standards.

Florida CPA Today is published bimonthly by the Florida Institute of Certified Public Accountants, Inc., P.O. Box 5437, Tallahassee, FL 32314. Telephone: (850) 224-2727 or (800) 342-3197. (Street address: 325 West College Ave., Tallahassee, FL 32301.) Visit our website at www.ficpa.org.

This magazine is provided to members of the FICPA. No specific amount of your dues, either expressed or implied, is for this publication. This magazine is not available for purchase by either FICPA members or nonmembers.

For display advertising information, contact the FICPA Marketing Department at (850) 224-2727, Ext. 270. © 2012 by the Florida Institute of Certified Public Accountants, Inc. All rights reserved. Reproduction in whole or part is prohibited without the express written consent of the FICPA.

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NOVEMBER/DECEMBER 2012

chair’s M E S S A G E

Become a Part of the FICPA Process

T

he holidays are upon us. As I look forward to enjoying special time with my family, I wish you and your loved ones the happiest of holidays.

This summer, I had the opportunity to share the CPA perspective of financing a small business. As a panelist on the Tampa Bay Community Network television series, “Creating Your Own Job,” I shared mistakes and lessons learned years ago as a first-time entrepreneur.

The discussion brought back many memories of my early days of entrepreneurship. Back then, I assumed I could finance my startup expenses by charging them to my credit card.

Luckily, despite that blind ambition, I’m still making a living as a CPA entrepreneur – and I’ve gained a special appreciation for small businesses. Whether you’re the CFO of a small business or working in an accounting firm, entrepreneurship is challenging – sometimes rewarding, but always challenging!

Among the challenges CPAs face is a growing concern – so-called comfort letters.

Like the infamous Trojan horse, complying with a request for written verification of a client relationship or financial standing may not be as innocuous as it appears. Although such letters provide comfort to a banker or other recipient, they can place CPAs in a legal bind and position of future liability. At the urging of numerous members, the FICPA is exploring options to formally address this issue in Florida. (For more information, see page 22 of the May/June issue of Florida CPA Today.)

Another growing problem is tax-related identity theft. The FICPA is developing a public-service video campaign to raise awareness about tax-refund fraud. As it is, CPAs often are caught between the IRS and

FLORIDA CPA TODAY

client victims. Clients are frustrated; they Scott Price, CPA can’t get their refunds. CPAs are frustrated; the escalating number of non-billable hours they spend untangling client identity-theft issues isn’t sustainable. The FICPA participated in an identity-theft roundtable discussion with Congressman Gus Bilirakus (R-FL), and we continue to work toward solutions.

No effective watchdog can do its work without support. To do its best work on our behalf, the Institute must be the collective voice for even more Florida CPAs. There’s no doubt that when our legislative efforts result in a roll back of CPE-reporting requirements; passage of a CPA license-amnesty provision; and similar streamlining actions, all Florida CPAs benefit.

We are most powerful when we’re part of the process, and the Institute needs your input. Your opinion and actions matter. Here’s what you can do to help: • Take a moment to talk about the Institute’s value the next time you attend an event with other CPAs. • Make at least one personal connection with a non-member. Tell that person the FICPA story, and be sure to mention the good work we’re doing on his or her behalf.

• Invite a non-member to become a part of the process by joining our cause (and remind him or her about the opportunity to save more than the cost of dues through member CPE discounts).

“The Institute needs your input. Your opinion and actions matter.”

We’re fortunate that the FICPA is Florida’s CPA watchdog. In addition to representing our legislative interests in Tallahassee, the FICPA continually identifies and removes business barriers. Are you dealing with a barrier? We want to know about it. E-mail me at chair@ficpa.org to share your ideas. FCT www.ficpa.org

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New Year’s Lifestyle Choices to Help Make Your Day More Productive

By Luke Sniewski, CPA

T

he typical workday stretches from 9 a.m. to 6 p.m. for many. The misconception, however, is that you are productive from the moment you step foot in the office until you leave, with an hour for lunch. But, you arrive at work, often without having eaten breakfast, and you look more like a zombie than a human.

This is a simple matter of human biology. When blood sugar rises sharply from consuming sugary foods and drinks, so does the hormone insulin. But that jolt of energy quickly subsides.

You think a cup of coffee will create some kind of productive state at around 9:30 a.m. – but you’ll only hit the wall again at 11 a.m. After a less-than-nutritional lunch and another cup of coffee, you remain productive from 1:30 p.m. until 3:30 p.m., when you hit another down cycle on the energy roller coaster.

Symptoms of something more serious

Couple this with the long hours you put in to finish projects or during tax season, and it’s no wonder there’s a constant battle to maintain consistent energy levels. The good news is that you can incorporate a few changes to your lifestyle and nutritional choices, as part of your New Year’s resolutions. This can make a big difference in your health, energy and productivity.

Part of your unbalanced breakfast The only thing worse than skipping breakfast is consuming what’s popularly described as a “balanced breakfast.” The human body considers bowls of cereal, glasses of orange juice and pieces of toast to be surprisingly similar. Quite simply, it’s all just sugar. After eating large amounts of carbohydrates – most lacking any other nutritional component – lethargy and fatigue soon follow.

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CPAs have a reputation for overworking in a valiant effort to progress their careers. To get them through the hours, many reach for cups of coffee and junk food – and spend little time recovering from overwhelming workdays. Unfortunately, no one is invincible and this lifestyle cascades cumulatively into a more serious issue known as “adrenal fatigue.”

“Some people have a difficult time accepting that taking a step back from work actually can create noteworthy improvements in work quality.”

When external stimulants and poor nutrition are the sole sources of energy and productivity, the human body must overwork its adrenal system to keep going.

Eventually, this diminishes the body’s ability to respond to stress, leading to a plethora of ailments that ensure productivity losses. Once adrenal fatigue sets in, even a minor respiratory infection can sideline you for a long time.

Getting off the roller coaster Avoiding those 11 a.m. and 3 p.m. sugar crashes means avoiding society’s most prevalent addiction: sugar.

Sugar consumption has spiked during the last century, according to studies, mostly because of the infamous high fructose corn syrup.

With this in mind ensure that each meal – especially breakfast – includes adequate amounts of protein and fat. Foods like lean meat, avocados, coconut oil, eggs and fish contain high-quality fats that will keep energy levels stable, prevent snacking and keep productivity levels high.

Taking time to recover from long bouts of work will create long-term benefits to energy levels and overall health. Adequate amounts of sleep, relaxation and effectively managing stressful work relationships will give your batteries a chance to recharge. Some people have a difficult time accepting that taking a step back from work actually can create noteworthy improvements in work quality.

This is best illustrated by former world champion chess and tai chi competitor Josh Waitzkin. He explained that his most significant problem-solving solutions occurred when he forced himself away from deep concentration and into some sort of relaxation.

FLORIDA CPA TODAY

These situations forged mental connections that otherwise never would have happened. When you are stuck on an accounting issue, the best solution often is stepping away and approaching it after a set period of time. The goal is to turn eight or 10 hours of productivity into six hours, simply because of improved efficiency and effectiveness.

Instead of wasting time drinking coffee for a boost and recovering from energy crashes, use those extra hours to enhance soft skills, take continuing-education courses or broaden your skill sets to improve analytical skills. FCT

Luke Sniewski, CPA is a personal trainer and NASBA registered CPE provider at LEAF Wellness Studio.

Originally published by CalCPA in the January/February 2011 issue of California CPA.

www.ficpa.org

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WEB

digest

To r e a d t h e s e a r t i c l e s i n t h e i r e n t i r e t y, v i s i t t h e

Collection and Recovery Issues for CIRAs Accounting for Assessments and Foreclosures

By Mark Brechbill, CPA

I

n recent years, the Common Interest Realty Association (CIRA) industry has been pushing hard to obtain additional rights to help associations cope with the rising tide of delinquencies and foreclosures.

In 2010, Chapter 718 of the Florida Statutes was amended to increase the past-due assessments that a first mortgagee was required to pay upon taking title to the property from 1 percent of the original mortgage amount or six months assessments, whichever is less, to 1 percent or twelve months assessments, whichever is less, consistent with homeowners’ associations. That same year, the Statutes were modified to allow associations to collect rent from tenants of unit owners delinquent in their monetary obligations to the association. Both of these changes, along with other minor changes made during subsequent years, have given associations some new tools to pursue collection of past-due assessments.

Most of these changes are so new that they have not been tested in the courts. As such, attorneys charged with the responsibility of taking a position that is best for their association clients, within their interpretation of the law, are suggesting associations account for these transactions in a manner that supports that position. Associations are required to record and disclose these transactions in accordance with accounting standards, while preserving the entity’s right to pursue collection in a court of law. Thus, CPAs serving 8

NOVEMBER/DECEMBER 2012

associations walk a tightrope between “judge” and scrivener, balancing clients’ needs with professional accounting standards and responsibilities to the public.

Understanding the Legal Nuances of Association Real Estate Transactions Before diving into GAAP as it relates to these transactions, it helps to understand the legal issues that affect the collection of a real-estate debt, including foreclosing on a lien or mortgage. Keep in mind that a mortgage or lien is nothing more than an instrument to secure a debt.

To place a lien or mortgage on a property, there must be a debt that the mortgage or lien can secure, and the owner of the property (who may be different from the party that is liable on the debt) must have agreed to the lien or mortgage. As it relates to CIRAs, Florida Statutes provide that a unit owner who purchases a unit in a condominium does so subject to the association’s rights to lien that unit to collect past-due assessments. And, if the governing documents so provide, a homeowners association also may record a lien against a lot or unit for unpaid assessments.

It is important to understand the difference between the debt (a promissory note, uncollected assessments, etc.) and the instrument that is securing that debt (mortgage, lien, etc.).

The fact that a creditor relinquishes the right to pursue collateral, either

by contract or through court action, does not necessarily relieve the debtor of his obligation to pay the underlying debt. If a bank or the association forecloses on their mortgage or lien, they still can pursue a deficiency judgment against the debtor for the amount owed after the collateral is liquidated; it just becomes an unsecured debt. In Florida, the creditor may have up to 30 years to collect on that deficiency judgment.

Finally, real estate transactions, promissory notes, mortgages and ➡ Pg. 10

F I C PA’s w e b s i t e a t w w w. f i c p a . o r g / F C T / Te c h n i c a l .

Strategies for Restructuring Commercial Real Estate Debt

By Jonathan Scott Gorman, CPA, ABV, CGMA

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ore than $1 trillion in commercial property debt is coming due during the next five years, with no signals of reliable liquidity available to refinance this debt. In many cases, the collateral securing the debt now is worth less – in many cases, substantially less – than the debt and interest outstanding. With limited liquidity and collateral values approaching inflation-adjusted lows, many distressed commercial property owner/operators will face the very real prospect of defaulting on their secured commercialdebt obligations.

Most entrepreneurs naturally are optimistic, and will personally carry a business through a few

months or years of sub-par results, believing their original investment was sound. But when they have exhausted their cash reserves and taken their personal income to zero, they’re faced with a decision – give the property back, or find a way to get the lender to restructure their debt.

percent of its fair market value if it is not placed back into active service within 24 months. Few lenders have expertise in managing commercial property. They often prefer to take an aggressive stance with a well-intentioned entrepreneur than modify the principle and earn a smaller, but dependable payment.

As independent financial advisors, CPAs can play a valuable role in developing a mutually beneficial solution for clients and their creditors. Ultimately, clients have three choices: ignore the problem; keep the property with a restructured arrangement; or surrender the property and negotiate the deficiency, as well as any personal guarantees.

Clients also must be aware of all the costs – including federal and state taxes – to make the most informed decision.

Case Study

Lenders now are flush with more commercial property than they can reasonably manage.

High commercial real-estate concentrations can limit a bank’s ability to lend because of the need to raise capital and mitigate concentration risk during an economic downturn.

Unlike liquid assets, commercial property quickly degrades in value if it is not actively managed. A property taken into foreclosure can lose up to 40

As in asset protection strategies, commercial debt-restructuring strategies must be tailored to the client’s financial position and the liability to be negotiated. The following case study may represent a current or future client. The data and issues that make up this study do not represent any specific client and any similarities are purely coincidental.

Dr. Gabby Noe has been in private practice for 30 years and owns a 9,600 square foot medical-office building in Orange County, Fla. Dr. Noe uses 1,900 square feet for her own medical practice. The remaining space is 50-percent occupied at an average rent of $18 per square foot.

Dr. Noe purchased the office building in 2006 for $2 million – putting 20 percent down and financing the remainder at 8.5 percent interest on a 15-year note. The building was included in a separate LLC from her practice (Gimli Properties, LLC).

However, Dr. Noe signed a personal guarantee using her personal and business assets as conditional collateral. ➡ Pg. 10 www.ficpa.org

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Collection and Recovery Issues for CIRAs association documents are all contracts. And, under Florida’s Constitution, contract rights may trump the Florida Legislature’s ability to restrict or alter those rights. That is why, even though the Florida Statutes changed recently relative to the amount of past-due assessments that a first mortgagee was required to pay, recent case law has held that a newly enacted law may not unconstitutionally impair a mortgagee’s contract rights under an association’s governing documents.

Understanding the legal consequences of the various collection avenues that an association can pursue is essential to properly accounting for the transaction under GAAP. Collecting rents from units with delinquencies and foreclosure actions is a common industry practice.

Specific accounting for these events is described below.

Collecting Rents Prior to Foreclosure In the situation where the unit owner is delinquent on his assessments, and the association directs the unit owner’s tenant to pay the association directly, it is clear that the association doesn’t own the unit and is not entitled to the rental income – only the cash flow from the tenant to be used to pay the unit owner’s past-due monetary obligations to the association. The association would not record the unit on its books, nor would it record the income. Delinquent assessments and costs would be recorded as assessments receivable, and the tenant’s payments would be accounted for as if the unit owner had made the payment directly.

Some attorneys may want to keep their options open based on their interpretation of the Florida Statutes and how this payment is legally applied to a debt. Because of this, the CPA may want to apply the tenant’s payment to a “contra” assessment-receivable account and not post directly to the assessment-receivable account for that unit owner. FCT To continue reading, visit www.ficpa.org/FCT/Technical.

Mark Brechbill, CPA, is founder of Mark Brechbill, Certified Public Accountants, in Stuart. The firm prepares taxes and performs audits, reviews and compilations for CIRAs on the Treasure Coast. Brechbill is a member of the FICPA’s CIRA Section. Additionally, he hosts a weekly call-in radio program, “Condo Solutions,” which answers listeners’ live questions about condominiums, homeowner associations and co-ops.

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Strategies for Restructuring Commercial Real Estate Debt When Gimli Properties purchased the building, it was 100-percent occupied at an average rent of $30 per square foot, and leases were signed through early 2008. In early 2008, a dentist who had been renting 25 percent of the space decided not to renew. To retain the other tenants, Gimli Properties reduced the rents to $24 per square foot in January 2009. In 2011, another tenant chose to leave and rents were lowered to $18 per square foot to keep the occupancy of her rentable space at 50 percent.

In mid-2009, on the advice of her CPA, Dr. Noe contacted her bank to see if it would modify the terms of the note to reduce the interest rate and extend her term. She believed the market eventually would recover, and was pleased that the bank was willing to restructure her rate from 8 percent to 5 percent, and extend her term to 25 years. Further, they agreed to five years of interest-only payments through December 2015. This restructuring reduced her monthly mortgage payment by $10,000, and allowed her to reduce rents in 2009 and again in 2011. Dr. Noe stopped making mortgage payments in December 2011.

In April 2012, Dr. Noe asked her CPA for advice about the property. It recently had been appraised at $1.1 million and she still owed the bank $1.4 million (including accrued interest and penalties). After fees and costs, the building likely would sell for $1 million, creating a deficiency of $400,000. Although the initial debt restructuring had helped her cash flow, the building was stuck at 50 percent occupancy and she couldn’t afford to maintain the property any further. FCT To continue reading, visit www.ficpa.org/FCT/Technical.

Jonathan Gorman is licensed as a CPA in Florida and Illinois. He is a Chartered Global Management Accountant and Accredited in Business Valuation by the AICPA. Gorman has been honored in Europe, Asia and the U.S. as an expert in Six-Sigma process improvement. He pioneered the implementation of lean business tools for non-manufacturing business process, from supply-chain management to finance and administration services.

Gorman, a public speaker, provides expert litigation support to attorneys, as well as CPE training to accounting and legal firms.

FLORIDA CPA TODAY

www.ficpa.org

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For the Good of the Order

By Rivers H. Buford III, FICPA director of governmental affairs and Justin Thames, FICPA governmental affairs manager

D

uring each Florida election, the citizens of our state

decide who best represents their interests. The

Florida CPA Political Action Committee (Florida CPA/PAC), a separate entity from the FICPA, gives FICPA members a unified voice in the election process and supports the candidates who will be the finest stewards for the profession.

William H. Carr

James R. Kaufman

With 160 districts represented in the Florida Legislature, it is increasingly critical for individual CPAs and CPA firms to support the Florida CPA/PAC. Individual CPAs gave most of this year’s contributions. However, the Florida CPA/PAC asked firms to answer the call and be an integral part in funding the PAC’s advocacy efforts through the Top 250 fundraising campaign.

Denny Schelper

Antonio L. Argiz

Percy J. Legendre III

Platinum Club Carr Riggs & Ingram, LLC William H. Carr

Kaufman, Rossin & Co., PA

James R. Kaufman

Florida Offices: St. Augustine, Crestview, Destin, Gainesville, Marianna, Mary Esther, Niceville, Orlando, Palatka, Panama City, Panama City Beach, Tallahassee & Tampa Bay Miami

Gold Club LarsonAllen, LLP Denny Schelper

Morrison, Brown, Argiz & Farra, LLC

Antonio L. Argiz

Thomas Howell Ferguson, PA

Winston K. Howell

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Tampa, Orlando, Lakeland, Winter Haven, Sebring, Fort Myers and Naples Miami Tallahassee

FLORIDA CPA/PAC THANKS MEMBERS FOR SUPPORT We are grateful for the dedication of the firms and managing partners that participated in this special fundraising effort.

Their support will help ensure that the CPA profession continues to thrive, and will have a strong presence among elected officials who oversee the laws that impact FICPA members.

The Florida CPA/PAC is pleased to recognize these members and firms for continuing the long-time commitment to

Ronald E. Jackson

Fredrick Carroll III

advocating on behalf of the profession. These few have exemplified true leadership, and we encourage all who have worked hard to maintain the CPA distinction to join them in their efforts. FCT To participate in the Florida CPA/PAC’s ongoing efforts, visit www.ficpa.org/ga/PAC or contact FICPA Director of Governmental Affairs Rivers H. Buford III at (800) 342-3197 (in Florida); (850) 224-2727, Ext.203; or govaffairs@ficpa.org.

Michael R. Pender Jr.

Stephen D. Spangler

Jeffrey M. Tuscan

Silver Club Bashor & Legendre, LLP

Percy J. Legendre III, CPA, PA

Tampa

Gregory, Sharer & Stuart

Richard G. Ulrich

St. Petersburg

Saltmarsh, Cleaveland & Gund, CPAs

Ronald E. Jackson

Pensacola

Bronze Club Carroll and Company, CPAs

Fredrick Carroll III

Cavanaugh & Co, LLP

Michael R. Pender Jr. Stephen D. Spangler

GLSC and Company, PLLC

Manuel Garcia

Stone, Parker & Company, CPA, PA

G. Michael Stone

Port Richey

Tuscan & Company, PA

Jeffrey M. Tuscan

Fort Myers

FLORIDA CPA TODAY

Tallahassee Sarasota Miami

www.ficpa.org

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NEWS

briefs

FICPA representatives visit $10 Million a Minute Tour On Oct. 2, FICPA representatives and staff visited the Comeback America Initiative’s $10 Million a Minute bus tour at its Jacksonville stop. The goal of the national tour is to increase awareness about the U.S.’ deteriorating financial condition and educate Americans about how they can help restore fiscal health. Each minute, the U.S. goes into debt another $10 million.

The tour is fact-based, nonpartisan and non-ideological.

It focuses on our nation’s choices and on non-partisan solutions that can achieve bipartisan support. The tour began Sept. 7 in New York. It will stop in more than a dozen states, including swing states and key districts. FCT FICPA President/CEO Deborah Curry and Executive Committee member Marshall Gunn visit the Comeback America Initiative (CAI) $10 Million a Minute bus tour in Jacksonville. David M. Walker is the founder and CEO of CAI.

In Memoriam: Past President James “Jim” Talley Lang FICPA Past President James “Jim” Talley Lang of St. Petersburg passed away Sept. 20 at the age of 90.

Jim was a longtime FICPA member and served as the Institute’s president from 1971 to 1972. He also served on the Relocation of Administrative Office Committee and Long Range Planning Committee, and for six years on the Articles & Bylaws Committee.

practice of his late fatherin-law, R. H. Gustafson.

The firm became known as Lang, Collins and McKelvey and grew into the statewide firm Lang, Collins & Gomillion. They later merged with the national firm now known as Grant Thornton. After retiring from his accounting practice, Lang began a banking career as an officer at First National Bank.

Johnston; son, James Lang Jr.; grandchildren, Jaime Waltman, Daniel Sinclair, James Talley Lang III and Katherine Lang; and four great-grandchildren.

Funeral services were held Tuesday, Sept. 25 at First United Methodist Church.

The family requests that remembrances be made to any of Lang’s community activities.

Lang joined the Shepherd & Klanderman accounting firm. In 1954 he opened his own firm, and later took over the accounting

Lang is survived by his wife of 64 years, Dorothy Gustafson Lang; daughter, Karen Lang Johnston and her husband, Eugene

To view the online obituary and sign the family’s guestbook, visit www. andersonmcqueen.com/ obituaries/James-Lang/. FCT

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To learn more about CAI or the $10 Million a Minute tour, visit keepingamericagreat.org.

FICPA official notice In compliance with Article XI, Section 6 of the FICPA Bylaws, be it known that a regular meeting of the Board of Governors of the Florida Institute of Certified Public Accountants will be held Thursday, December 13, 2012, at 8:30 a.m. at the FICPA Administrative Office, Tallahassee, FL.

From FICPA staff reports

Epstein elected to AICPA Council The AICPA recently accepted the appointment of Joey Epstein, a director with McGladrey, LLP, to the AICPA Council.

Epstein was elected by the FICPA Board of Governors. The AICPA Council Joey Epstein determines programs and sets policies for the Institute.

It is comprised of approximately 260 members with representatives from every state and U.S. territory.

Epstein is serving his fifth term on the FICPA Board of Governors and is a director of its Executive Committee. He has served on the FICPA State Legislative Policy Committee for 20 years and has chaired it several times. He also serves on the Florida CPA/PAC Board of Trustees. FCT

FLORIDA CPA TODAY

FICPA member-firms named Best of the Best Inside Public Accounting (IPA) recently named two FICPA member firms, Berkowitz Pollack Brant Advisors and Accountants and MBAF, among the top 50 accounting firms in the U.S. IPA creates the annual Best of the Best list based on firm revenue and client growth; leadership; diversity of practice areas; and opportunities for advancement.

Berkowitz Pollack Brant has appeared on the list 14 times, and MBAF has appeared on the list for 10 consecutive years. FCT

www.ficpa.org

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27th Annual Accounting Show

By Wendy Johnson, CPE conference manager the

reasoning

behind

the

and

politics

Supreme

Court

decision upholding the law, the mechanics of the tax provisions and planning strategies.

• Keynote Address – U.S. Tax Issues, by Dean Zerbe, former senior counsel and tax counselor

I

f you attended this year’s Annual Accounting Show, you already know what a huge success it was! If you weren’t able to join us, check out some of the great features at this year’s show, and plan to join us next year in Fort Lauderdale.

for the Senate Finance Committee. Zerbe is the ultimate taxpolicy expert and insider. He shared insight into tax policy, how it happens and what drives tax decisions on Capitol Hill and in the White House.

• Identity Returns

With expert speakers delivering more than 50 sessions, the show offered a variety of topics, allowing everyone to attend the sessions that best fit their needs. Plus, with almost 800 participants, the show provided valuable networking opportunities during breaks.

Some of the more popular sessions included: • Keynote Address – “Health Care Reform: Tax Issues you Need to Know,” by Albert Grasso, Of Counsel to Chuhak & Tecson in Chicago. Grasso discussed

Theft

&

from

False

Tax

the

IRS

Perspective – Frances Kleckley, deputy director in the IRS Office of Privacy and Information.

There was standing room only during

this

presentation

as

Attendees enjoy enhanced Exhibit Hall This year’s Mardi Gras-themed exhibit hall included some new features. Lots of people enjoyed massages from Planet Massage of Fort Lauderdale, compliments of the FICPA; played video games on the Xbox Kinect; and participated in our Bingo game to become eligible to win cash prizes.

It pays to play! We had four lucky winners of five Bingo prizes.

Congratulations to: • Fritz Grant, CPA of Tamarac – $100 • John McKenna of Delray Beach – $100 and $200!

• Elena Mendez, CPA of Coral Gables – $50 • Rose Bowman of Fort Myers – $50

Kleckley explained how the IRS and tax professionals can help prevent identity theft and help taxpayers who are victims.

• Fraud – Lynn Clements, professor, Florida Southern College and Odalys Lara, principal at Perzel & Lara Forensic CPAs, PA covered continuing challenges in conquering fraud.

Show includes Casino Night, cocktail reception The YCPAs Committee hosted the Fourth Annual Casino Night, raising almost $3,000 for the FICPA Educational Foundation. Sopranos was a perfect atmosphere for the event, which featured dueling piano players, packed gaming ➡ Pg. 18

Join Us Next Year!

Mark your calendar for the 28th Annual Accounting Show, Sept. 25-27, 2013 at the Broward County Convention Center in Fort Lauderdale. We hope to see you there!

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Show Committee Makes Conference Happen Many thanks go to the

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dedicated group of FICPA members who selflessly contributed their time and energy to facilitate this great event. The Accounting Show Committee spent more than a year planning the event, selecting the most qualified speakers and the best variety

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of pertinent topics. Each session offered something of value to everyone.

2011-2012 Accounting Show Committee

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Gary Fracassi, chair Paulette Holder, vice chair Randee Abramson Jaime Angarita Alan Campbell

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Lynn Clements Richard Dotson Lucinda Gallagher Tom Longman Jim Luffman Bill Maloney Roger Michels Chris Moreno

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Mario Nowogrodzki Pat Patterson Bob Rankin Richard Shapiro Poornima Srinivasan

FLORIDA CPA TODAY

1: Attendees received FICPA Accounting Show T-shirts to wear on Casual Friday. Here, the Board of Governors takes a break from their meeting to pose for pictures wearing their T-shirts.

2: The Red Carpet Photo Wall gave “celebrity� CPAs and vendors a fun photo opportunity. Pictured left to right: FICPA Past Presidents Steve Nouss, Jose Valiente and Jeff Greene.

3-8: Office Tools Professional; Sage; Rogers, Gunter Vaughn Insurance; Bisk Education; MR Valuation Consulting; and ADP were among the sponsors of the 27th Annual Accounting Show. www.ficpa.org

17

tables, drinks and appetizers. The Committee raffled prizes throughout the evening, including weekend getaways, golf outings, gift certificates and more.

A special thanks to our High Roller sponsor, KPMG; our Table sponsors, Marcum Search, Miami-Dade Chapter, Central Florida Chapter, Broward Chapter and Jacksonville Chapter (two tables); our Risktaker sponsors, MDD, Crowe Horwath and Paychex; and our Gambler sponsors, North Dade South Broward Chapter and ADP. The ever-popular Thursday cocktail reception, offering food and fun, was a huge hit again this year.

Tons of attendees gathered in the exhibit hall to enjoy drinks and hors d’oeuvres while visiting with

18 NOVEMBER/DECEMBER 2012

other attendees, networking with vendors,

having

their

pictures

taken and hoping to win free FICPA CPE! Congratulations to this year’s winners,

Duncan

Creager,

Alan

Fiske, Ralph Maya and David A. Smith.

FICPA Thanks Sponsors The FICPA accounting shows wouldn’t be possible without the generous support of our program sponsors. We thank all of this year’s sponsors for their contributions. They include:

During the reception, the Educational

• ADP

Foundation announced the winners

• Bisk Education

of several prizes, including the

• MR Valuation Consulting

Silent Auction and the $500 raffle.

This year’s raffle winner was FICPA Past President Stam Stathis.

• Office Tools Professional

More than $2,500 was raised for the

• Rogers, Gunter Vaughn Insurance

Foundation at this year’s Show! The

• Sage

money will benefit the Foundation’s

• The Tax Advisor publication

General Scholarship Fund, which provides almost $200,000 each year to Florida accounting students.

FCT

• The AICPA’s Journal of Accountancy

FLORIDA CPA TODAY

www.ficpa.org

19

20 NOVEMBER/DECEMBER 2012

FLORIDA CPA TODAY

www.ficpa.org

21

COVER

story

Building Your Best Performance Management Systems

I

n today’s increasingly fast-paced business environment, companies no longer can afford a static planning process.

The word that defines business today is “agile:” the ability to move or change quickly, and often quietly. This process should not be treated as a one-time, annual event that documents the organization’s priorities and objectives; rather, it must be an evolving record of new realities.

Spurred in part by the unpredictability of economic turbulence,

The budgeting, planning and forecasting process provides companies with an active framework for allocating resources to achieve corporate objectives within a defined time frame. The most significant output of this process, the annual plan, sets the detailed revenue and cost benchmarks against which performance is measured during four quarters of the coming fiscal year.

Company management should work to develop objectives and

The annual plan puts the corporation at the starting line with targets aligned to senior management’s objectives. By the time the annual plan is approved, however, it may no longer reflect realities at lower levels such as the plant, sales office or CPA firm. In response, management needs monthly or even weekly outlook updates that can identify operational tactics needed to capture new revenue opportunities or dampen cost overruns.

22 NOVEMBER/DECEMBER 2012

management expects that departments will dynamically incorporate operational and macro-economic indicators into their budgeting, planning and forecasting processes. Strategic objectives must be managed in a way that enables frequently updated, transparent views of performance projections.

detailed forecasts that support top-level strategies. Everyone needs to be “singing from the same hymnal.” This drives the call for a unified data platform that enables driver-based performance management and improves decision making throughout the enterprise.

Too often, companies’ complex financial systems scatter information needed for effective dynamic planning across disparate silos – e.g. multiple spreadsheets, databases, and scattered legacy mainframe source systems. This makes the information inconsistent, incomplete or difficult to access. Short-range forecasts, as well as longer-term strategic plans, can be impeded when there are

By Kim E. Autrey, Tim Duning, and Chet K. Robinson

Simplification, Standardization, Consolidation

1

poor data links between professionals in departments such as

data repository where data definitions and rules consistently can be

procurement, revenue reporting, cash management and sales

applied, and the entire enterprise can be viewed from an analytical

support.

perspective.

Today’s CFOs are the owners of the financial budget and forecast,

Because the finance department is responsible for numerous

and (often) the stewards of the strategic plan. They must take

functional areas, financial-system complexity is inevitable. This

a leadership role to help their companies build performance

complexity, combined with the accelerated information flow now

management systems capable of dynamically driving strategic

required to respond nimbly to competitor actions and environmental

and tactical decisions. Many financial-information technology (IT)

threats, has significantly increased the CFO’s interest in working

professionals find that the most effective response uses a financial-

with IT to streamline and simplify their financial systems.

1

➡

Terdata, 2012.

FLORIDA CPA TODAY

www.ficpa.org

23

COVER

story

To keep pace with change, companies must adjust their financial-planning processes and underlying infrastructures. A holistic approach – one that enhances the CFO’s ability to get a dynamic, integrated view of performance – is needed. It begins with a financial reference architecture that seamlessly integrates eight key components founded on a centralized financial-data repository.

1) Data Warehouse Foundation: A finance data warehouse (FDW) consists of the finance-specific elements of an enterprise-data environment.

It is uniquely capable of serving as a systems-integration platform that links financial details to the operational data and simplifies provision of consistent data to countless applications and users.

2) Data Sourcing: Moving data from source systems into the FDW where it is transformed ensures user confidence. This provides a transparent audit trail needed to tie exact copies of source transactions to the transformed data in the FDW. 3) Hierarchy Management: Increasingly, firms need to view and manage the business at varying levels of detail, aggregated across multiple dimensions or classifications, while ensuring these different “views” reconcile and are driven from a common core data set.

The ability of business users to flexibly view and manage these dimensions and hierarchies, and change the underlying data structures that drive reporting across the broader architecture without IT involvement, is an increasingly critical financial-reporting requirement.

2 3

The word that defines business today is “agile.”

4) Accounting Hub: To ensure FDW integrity, it must reconcile reliably to the General Ledger (GL). An accounting hub enables a layer of transparency over complex accounting rules, mappings and aggregations that turn operational system transactional data into summary automated postings in the GL. This facilitates three-way reconciliations among the FDW, GL and operational systems.

5) Financial and Human Capital Management Analytics and Data Integration: General ledger, human resource and other key enterprise resource planning (ERP) data are critical elements of financial analysis. Data integration and analytics capabilities source and organize this data in the FDW into a business context for different finance functions (e.g. GL, procurement, or payroll) to speed analysis and report generation.

6) Calculation Engines: A complete infrastructure must integrate prepackaged software applications and calculation engines with standard business rules that deliver enterprisewide profitability, risk, planning, forecasting and allocation capabilities.

7) Business Intelligence (BI) and Reporting Tools: To field everevolving information requests, analysts need an ad hoc environment that provides access to data from multiple sources. If there are several BI tools within an enterprise environment, a common data warehouse foundation

The Hackett Group, 2010 Finance Book of Numbers, 2010 Ibid.

24 NOVEMBER/DECEMBER 2012

where metrics and calculations are managed helps drive consistent results across tools.

8)

Data Management: To ensure that analysis recommendations are sound, transparency, data quality and applying common rules throughout the data lifecycle are critical. A wellexecuted data management strategy secures an auditable trail from source to final report.

By supporting data integration and data management across applications and business processes, a rational finance architecture sets the stage for executing best practices. The Hackett Group, a leader in benchmarking, has observed financial data management best practices common to world-class companies. Typically, these companies have a finance cost-to-revenue ratio that is almost half that of their peers (0.600% vs. 1.13%).2 They also produce a return on equity that is 2.4 times that of their peers.3 Hackett captured the best practices that distinguish these companies.

1. Central repositories enable world-class finance staffs focused on planning and analysis. For improved speed, companies need to have their financial and operational data in one central repository.

A central repository provides a unifying environment where common data definitions and hierarchies are linked throughout the enterprise. Consequently, the procurement division sees

the revenue impact of a sales department’s order forecast to ensure there is no lag in product availability.

2. Simplification is the name of the game. World-class companies have fewer budget line items than their peers. They free their forecasts and plans from the limits of historical financial-data results and understand the big-picture events that drive revenues and costs through the business, rather than trying to forecast each P&L line. For example, one transportation company decided that using historical trends to forecast P&L lines such as salaries, overtime, T&E and fixed-asset utilization missed the point entirely. Instead, they began asking, “Which business processes drive these costs?” The answer was “train starts.” Analysis revealed that each time a freight train was scheduled to make a run from point A to point B, a predictable set of costs were generated for fuel, salaries, T&E, overtime, etc.

This discovery meant planners could base most cost forecasts on the number of expected train starts for a given period. Projecting results based on operational events vastly speeds and simplifies the forecasting process.

3. Secure business alignment and accountability by linking financial results to the operational drivers that cause them. Ownership of the inputs into the planning and re-forecasting processes belongs in the individual business units. The ability to incorporate financial data and operational drivers in a single, integrated and reconciled data repository

FLORIDA CPA TODAY

is critical. Finance departments must focus on critical operational drivers, such as “projects completed/billed” in construction or “new loan accounts established” in banking. By doing this, they can escape the dangers associated with “top-down” budgeting tied to targets lacking a basis in reality. By using a central-data repository, bestpractice companies enable financial analysts and operations management to determine which operational levers can be pulled to move financial results in the desired direction.

The Hackett Group’s findings make clear that today’s performance-management processes cannot exist in a vacuum.

CFOs and their departments must eliminate the barriers posed by complex finance-infrastructure environments where information is dispersed across disconnected systems. To do this, they need a holistic approach with unfettered and enhanced access to centralized financialdata repositories. A “next-generation” finance architecture can accomplish this by delivering a more complete, multidimensional view of all finance functions.

The payoff: timely, live and consistent access to reliable, relevant and actionable information that enables renewable process-cost reductions and performanceenhancing business insights. FCT

Kim E. Autrey, CPA, CITP, CGMA is a senior consultant – financial transformation at Teradata Corporation. Tim Duning, MBA, CMA, is a solutions development director with the Teradata Finance and Performance Management team. Chet Robinson, MBA, is a communications and deployment manager with the same team.

www.ficpa.org

25

Change Management

By Dom Cingoranelli, CPA, CGMA, CMC® and Bill Reeb, CPA, CITP and CGMA

T

ake stock of where you are

Think back over the past few years, taking some quality time to gather your thoughts and reflect on your experiences. What memories strike you as the most significant about your firm?

• What did you do that made your life or firm better?

• What did you do that allowed you to provide better service or value to your clients?

• What didn’t you do that you really hoped to accomplish?

• What had you planned to do, but didn’t get around to doing, to take better care of, or keep, your top clients?

Based on your thoughts, have you decided on your priorities for change in the coming year to 18 months?

Is it exciting enough for you yet?

There’s no doubt about it: the professional life of smallfirm practitioners often is “exciting.” We use that term in the broadest sense. “Exciting” can be good or bad, depending on the context and whether you view the situation as positive or negative. All too often, small firms oversell their capacity. This creates the type of excitement (in hours the owners have to work, as well deadline stress they have to manage) one would prefer to live without, if possible.

26 NOVEMBER/DECEMBER 2012

Conditions that lead to problems at small firms In our work with small-firm practitioners, we’ve found some common conditions that lead CPAs to experience the negative kind of excitement.

• Lack of capacity Many firms, even one-person practices, are understaffed. This means there just aren’t enough hours in the day to address all the issues that need the attention of the owner(s). This can seem particularly true when a CPA is fighting fires around filing deadlines and struggling to stay current. By adding even a little more capacity, a firm can free up the owners to work at a less frenetic pace and

and the Small Firm make time to implement those changes they’ve been thinking about making. Even if the firm is a one-person practice, the owner should consider hiring a part-time helper to provide relief and create capacity.

• Below-market rates One of the traits we find at almost all small firms is a tendency to undervalue, and therefore under bill, time and effort on clients’ behalf. Many partners in small firms charge rates equivalent to what other firms charge for their managers. This under-market pricing can increase volume. However, the extra work usually comes at the price of consuming all the owners’ time, so none remains to manage the business. Our recommendation is simple. Raise your fees! You may be concerned that this will run off a number of your clients. Based on our experience, firms never lose more profit through client attrition than they gain from increasing their rates. Besides, when marginal clients leave, you increase your capacity and reduce your stress.

This frees up time to take better care of your top clients and gives you more time to work “on your business,” rather than just working “in it.”

What’s a fair rate? That depends on your marketplace, your offerings and your clients.

Consider the rates charged by firms that are likely to buy or merge with your practice in the future. By starting to close this rate gap now, when the time comes to sell or merge, you’ll already be charging clients at market value. This strengthens the retirement benefit you likely will earn. Also, if a rate adjustment is in order, you don’t need to implement the full adjustment in one year.

You can phase it in during two or three years to minimize client attrition.

FLORIDA CPA TODAY

• Retreating to the familiar It’s common for people to retreat to “the familiar” when tired or under stress. “The familiar” encompasses behaviors, tasks and activities that fit a person’s style and mode of working. Many CPAs do a lot of their client work themselves. When “…when they get busy and stressed, “retreating to the familiar” marginal clients commonly invokes the instinct to push harder and leave, you log more hours, rather than increase your get help. We see this type of destructive behavior all capacity and the time. It causes work/ life imbalance, an increase reduce your in hours every year, more stress. This errors and eventual burnout.

• No accountability Some larger practices adopt governance methods that allow for everyone, from the top to the bottom, to be held accountable for performing specific functions, tasks and activities. However, smaller practices often lack accountability systems for the owner(s). So, not surprisingly, real change often is more about lip service than actual performance.

frees up time to take better care of your top clients and gives you more time to work ‘on your business,’ rather than just working ‘in it.’”

Because of these conditions, many owners of small firms constantly are frustrated and struggle to make necessary changes. It is not uncommon for them to feel, especially around deadline times during the year, like they are mired in the muck of daily crises. And no matter how much harder they work, the business continues to demand more from them every year. ➡ www.ficpa.org

27

What to do Change and progress are within your grasp. It takes real desire to do things differently! Learning to do things differently, while initially being uncomfortable, can provide real leverage and long-term benefits to the firm and its owners. But change requires accountability, which we’ve mentioned is in short supply in most firms, especially smaller ones. Consider the oneowner firm. To whom is this owner held accountable? In most cases, being accountable to oneself simply is not good enough.

Consider a coach – such as a trusted friend; a client you respect; an outside consultant; or a CPA firm owner who is not a direct competitor – to help hold you accountable. Share with this outsider (or group of outsiders) what you want to accomplish.

Just describing your goals, and scheduling future meetings to discuss your progress, will change the way you run your business. You will have created an environment

that forces you to share you strategy in advance, and this process will allow someone to challenge or ask you to defend your approach. This will give you a critical edge. These conversations and enlightened discussions help motivate owners to change. And a monitoring function – such as scheduled future meetings with your trusted advisor(s) – gives you, as an owner, the focus to meet your deadlines.

Encourage your advisor(s) to “hold up the mirror” so you can understand where you need to step up your performance, if necessary.

Also, use this valuable resource as a sounding board to solicit objective input when you’re working through difficult choices.

Now, think again about your priorities for change in the coming year to 18 months. Consider what you’ll need to do to implement those changes. Recognize that, as long as you keep doing what you’ve always done, you likely will continue to get what you’ve always gotten. So, start

your efforts to change now. There’s no time like the present to take advantage of the opportunity that is all around you! FCT

Bill Reeb has consulted for 30 years to businesses of all sizes. Reeb is a founder of the Succession Institute as well as several other businesses, including a CPA firm. He is a member of the AICPA Board of Directors and a past commissioner on the AICPA’s National Accreditation Commission.

Dominic Cingoranelli is a founder and the executive vice president of consulting services for the Succession Institute. His 30 years of consulting experience includes work for CPA firms and associations, as well as businesses in other industries. Cingoranelli is a past chair of the AICPA Consulting Services Executive Committee and a co-author of AICPA PCPS Succession Resource Center and Trusted Business Advisor Resource Center. © Copyright 2012, Succession Institute, LLC. All rights reserved.

FICPA and Succession Institute introduce small-firm subscription offering The FICPA and the Succession Institute are pleased to introduce a new CPE and consulting option exclusively for FICPA members – the Small Firm Subscription Package. The Succession Institute now can provide customized advice to small firms – using the SI Practice Management Institute as well as streaming video webcasts – at a fraction of what larger firms typically spend.

For details and to view a short video about this membersonly CPE program, visit the FICPA’s website at www.ficpa.org/ successioninstitute.

Why is it so important for CPA firms to start planning now?

Almost 80 percent of multiple-partner firms believe succession planning will become a major issue for their firms during the next ”AICPA Highlights Importance of Succession Planning,” www.accountingtoday.com, Oct. 10, 2012.

2 Ibid.

1

28 NOVEMBER/DECEMBER 2012

decade, according to a new survey conducted by the AICPA and the Succession Institute. Despite a rough economy, more firms are making plans to accommodate retiring senior leaders or practice sales than they were four years ago.1 There’s still a great deal of work to be done, particularly at solo practices. Only six percent have practice-continuation agreements to permit the temporary takeover by another sole proprietor if the owner dies or is disabled.2 For more information, contact Succession Institute Chief Executive Office Bill Reeb at (512) 338-1006, Ext. 102, or bill@ successioninstitute.com; or Succession Institute Executive Vice President of Consulting Services Dominic Cingoranelli at (512) 3381006, Ext. 104, or dom@successioninstitute.com.

FLORIDA CPA TODAY

www.ficpa.org

29

DOR

update

This is the first of a three-part series of articles on Florida’s documentary stamp tax, and common issues or questions.

By Tim Phillips, revenue program administrator

the documents upon which the tax most commonly is required.

Section 201.02(1), F.S., imposes tax on deeds and other instruments that transfer an interest in Florida real property. In all counties, except Miami-Dade, the tax rate is 70 cents per $100 (or any portion thereof) of the consideration paid, given or exchanged for the property interest transferred. In Miami-Dade County, the tax rate is 60 cents per $100 of consideration or any portion thereof.

Miami-Dade County also imposes a surtax of 45 cents per $100 of consideration or any portion thereof if the property is other than a single-family residence.

DOR Administers Documentary Stamp Tax

F

lorida’s documentary stamp tax

is levied under Chapter 201, Florida

Statutes. The Legislature first enacted the tax in 1931, and it is administered by the Florida Department of Revenue (DOR). Deeds, notes and mortgages are

30 NOVEMBER/DECEMBER 2012

Section 201.08(1)(a), F.S., imposes tax on notes and other written obligations to pay money, and certain renewals thereof, executed, signed or delivered in Florida.

The tax rate on these documents is 35 cents per $100 or portion thereof of the indebtedness or obligation. The tax due on these documents is limited to $2,450 (the amount of tax due on a $700,000 note).

Section 201.08(1)(b), F.S., imposes tax on mortgages, liens, security agreements and other evidences of indebtedness filed or recorded in Florida. The tax rate

on these documents is 35 cents per $100 (or portion thereof) of the indebtedness or obligation evidenced. There is no limit on the amount due on these documents.

Deeds and mortgages normally are recorded with the clerk of the circuit court in the county where the property is located. Generally, the clerk serves as the official county recorder of instruments and maintains custody and control of the county’s official records, including real property transactions. The clerk’s office also collects and disburses documentarystamp tax for recorded documents.

The clerk of the court’s office provides online resources in each county to allow easy public access to recorded

FLORIDA CPA TODAY

documents. Accessibility to these online records allows DOR to provide audit coverage from the Tallahassee Central Service Center. Although Tallahassee Central performs most documentarystamp tax audits, some audits are performed in other service centers located throughout Florida. By using these online resources, DOR ensures compliance with the law. FCT For more information about documentary stamp tax, such as Tax Information Publications (TIPs); Technical Assistance Advisements (TAAs); links to statutes and rules; and court cases, visit DOR’s Tax Law Library at www.myflorida.com/dor. Or, call the Office of Technical Assistance and Dispute Resolution at (850) 617-8346.

www.ficpa.org

31

STAFF

reports

Educational Foundation

We hope

By Jason Zaborske, FICPA educational foundation development director, and Brittany Butler, event coordinator

you’ll consider the

A Time to Give Have You Made Your Choice Yet?

I

n the September/

October issue of Florida CPA Today, we shared the inspiring story of Educational Foundation scholarship recipient Robert Allen of Jacksonville. Please read the article, if you haven’t already. Because of his scholarship, Allen reached his goal

32 NOVEMBER/DECEMBER 2012

of becoming a CPA and secured a job with PricewaterhouseCoopers.

Stories such as Allen’s show just how much a Foundation scholarship can improve someone’s life.

Established in 1959, the Foundation has provided more than $3

Foundation million in scholarships and education programs to support Florida accounting students.

Through the generous donations of FICPA members, the Foundation continues to provide more than $200,000 in scholarships each year to Florida’s future CPA leaders.

when making year-end contributions.

From FICPA staff reports

Giving can be as easy as donating online. Please visit our website, www.ficpa.org/edfwaystogive, to learn about the options.

There are numerous ways to give, including named endowments, legacy gifts, memberships and firm giving. Membership commitments may be paid as a one-time contribution or during a five-year period.

newest event, the Ocean Reef Family Retreat in Key Largo. Participating is a great way to meet those already involved in the Foundation. Our Board of Trustees welcomes you to join us.

We also have several annual fundraising events.

Please join us for the Money Run (formerly the 1040K Run/Walk), the Suncoast Scramble or our

If you’re considering a year-end contribution, please think about joining our growing list of members who have become Life Members ($500),

FLORIDA CPA TODAY

Friends of the Foundation ($1,000) or Annual Members of the Foundation ($50). FCT For more information about Foundation membership or scholarship programs, contact FICPA Educational Foundation Development Director Jason Zaborske at (800) 342-3197 (in Florida); (850) 224-2727, Ext. 417; or zaborskej@ficpa.org.

New Members

The FICPA happily welcomes many new members throughout the year. To see a list of members who have recently joined, visit the FICPA website at www.ficpa.org/ meetnewmembers.

www.ficpa.org

33

MARKET

place

Positions available Brevard County – established local CPA firm (20+ yrs young) is seeking CPA or CPA candidates w/2-5 yrs of exp in public accounting. Compiled F/S through the tax preparation of individual, corporate, partnership & S corporation returns will be required. Audit & attest exp a plus. We offer motivated professionals; a competitive salary & benefits; & a friendly, team-oriented environment to start achieving career goals. Please email your resume to bnooney@flavincpa.com.

Miami sole practitioner w/established practice seeks to hire a CPA or CPA candidate w/partnership potential. This is a traditional practice consisting of write up, financial statement preparation & all types of tax returns.

Required qualifications – min 3 yrs public accounting exp; tax preparation exp (individual, corporate & partnership) required; adjust & analyze client general ledgers & prepare financial statements; bank reconciliations, payroll-tax returns & sales-tax returns; bilingual desirable.

Benefits – health insurance & retirement plan. Submit resume to reply@ficpa.org & reference C PA 11 12 12.

Coral Springs CPA seeks semi-retired or retired CPA w/tax background for 20 hrs week during tax season w/additional work available throughout year. Reply to P.O. Box 8847, Coral Springs, FL, 33075.

Busy, small Lake County CPA firm seeks CPA w/at least 3 yrs exp for a good blend of all types of tax, general accounting & financial statements. Strong attention to detail required. We provide mentoring & lots of opportunity. Email resume to INFO@LBCPAPC.COM. Shared Services Accounting Manager – Miami – min 10 yrs of accounting exp, as well as mgmt exp w/large teams.

Must have in-depth knowledge of G/L operations, accounting controls, fixed assets, A/P & centralized reconciliation groups. Mgmt oversight of balancing, reconciliation, G/L transactions & clearing accounts w/the ability to use automated/

manual reconciliation processes/systems.

Bachelor’s degree in accounting required.

CPA preferred, working knowledge of automated reconciliations systems such as RECON Plus is preferred. Submit resume to jobs@lewisjamesprofessional. com & reference “Accounting Manager (#138-MH2569)” in subject line.

Ownership opportunity – Central Florida firm with revenue of $1.5 million seeking a talented individual to join our succession team. Ideal candidates will have an entrepreneurial spirit, along with strong client-management, tax, accounting and business-consulting skills. This is an outstanding opportunity for the right person. Replies will be held in strict confidence. Reply to reply@ficpa.org and reference file number H PA 11 12 12.

ARMOUR Residential Management, LLC is a mgmt company providing mgmt services & personnel to various companies, including real estate investment trusts.

Job Title – Accountant Qualifications – bachelor’s degree in business required; QuickBooks or other accounting software proficiency; understanding of required federal/state reporting necessary; Microsoft Office Excel knowledge; strong understanding of GAAP; 10-key proficiency; fluent in written & spoken English for business.

Job Duties – responsible for daily, weekly, monthly general-ledger accounting; responsible for preparing monthly, quarterly & annual budgets; communicate w/vendors & other outside related parties as necessary; responsible for providing analytics for the financial status of the company; provide audit assistance to external auditors; research & maintain tax compliance; complete special projects as requested by members of executive mgmt; ability to organize & prioritize multiple tasks effectively & adapt to changing priorities; must be able to work independently w/ attention to detail & as a part of a team; strong sense of urgency, good judgment, & highest quality standards.

Other – salary dependent on exp; benefits (paid time off, health, dental, 401K, & HSA) will be determined as a part of the employment contract.

ARMOUR is an Equal Opportunity Employer. We maintain a drug-free work environment & may perform preemployment substance abuse testing & background checks.

ARMOUR Residential Management, LLC; Vero Beach, FL, 32963; full-time position in Accounting/Finance; contact email jobs@armourllc.com.

Positions Wanted Experienced CPA w/Fla. & Pa. licenses seeks tax position w/a CPA firm in Palm Beach or Broward counties. Recently relocated from the Philadelphia area.

Please call (561) 322-8777.

Fla. CPA available for estate & trust tax assignments (return preparation, review, research, planning, projections, etc.).

Please reply to lactax@bellsouth.net.

Space Coast/Orlando – experienced CPA seeks per-diem or special assignments at affordable rates in quality CPA firm or in private industry. Contact Greg Thompson at (321) 259-8737 or GREG-CFO@CFL. RR.COM. Jacksonville – recently retired & relocated CPA/tax manager seeks per diem work preparing and/or reviewing all kinds of tax returns. Please call (904) 683-7374 after Nov. 1, 2012.

Experienced relocating CPA w/Fla. license seeks full-time or per-diem tax manager position in quality CPA firm or in private industry in Tampa, St. Pete, Northern Pinellas County or South Pasco County.

Please reply to questionmark27@verizon. net.

Relocating CPA w/Fla. CPA license & 15+ yrs public accounting & tax department exp seeks per diem work 1-3 days per week in Broward or Palm Beach counties beginning mid-November. I have diverse experience in all areas of tax compliance, research, review & planning. Reply to sfl285cpa@verizon.net.

For complete classified policies, visit www.ficpa.org/Content/CPAResources/ClassifiedsJobs/Classifieds.aspx.

34 NOVEMBER/DECEMBER 2012

Office space Beautiful professional ofcs to share in Fort Lauderdale. Fully furnished. Internet access, phones, copier, fax machine & additional services available. Conference room. Parking. Full kitchen. Kane & Company, PA. (954) 767-0440.

Successful financial advising organization w/over 1,000 clients is currently seeking a young, ambitious & successful CPA to fill an empty ofc space. Rent is negotiable based on the relationship. Ofc is located on Glades Rd & I-95 for easy access for clients. If interested, please call (561) 314-1800 to schedule an appointment or conference call.

Established Tallahassee CPA has furnished ofc space to share near Magnolia & U.S. 90; 2-person suites w/private bathroom, Internet access, phones, copier, more! Beautiful historic register building. Low monthly rate. jw@ nccetraining.com; (850) 561-6081 Joe. Quality Fort Lauderdale CPA firm seeking CPA w/established or growing practice for ofc sharing w/eye toward future affiliation. Email inquiries to ajcpapa@aol. com or call Cary at (954) 985-1040.

Practices wanted for purchase or merger Growing South Fla. CPA Firm looking to purchase a practice from a retirementminded CPA in Dade County. Favorable purchase terms offered w/continuing

FLORIDA CPA TODAY

employment opportunities available.

Please contact Jeffrey Taraboulos at info@ksdt-cpa.com or (305) 670-3370.

Jupiter firm seeks to merge w/or acquire 2 or more partner firms audit and/or tax. We have space, technology, depth, international alliance & solid core values.

Established in 1947. Reply in confidence to reply@ficpa.org & reference file number B PW 11 12 12.

Miami CPA firm looking to purchase a practice grossing $150,000-$200,000 from a retirement-minded CPA in Dade or Broward counties. Please contact Alan Vera at email avera01@hotmail.com | mobile (305) 562-9839.

For sale

Successful transitions require experienced, confidential, professional services you can trust. This is what Akins Professional Brokerage provides.

Specializing exclusively in the brokerage of CPA firms, we have no upfront fees. List your firm w/a professional.

Call David Akins, CPA, at (877) 2770272. Visit our website at www.

ProfessionalCPAbroker.com.

Established SW Fla. CPA firm would like to expand individual & small business tax, bookkeeping, sales & payroll taxes & audit practice by acquiring similar firm in Lee or Collier counties. Email CPA1983@ comcast.net.

CPA looks to purchase tax through review practice in South Fla. Revenue $150,000 to $500,000. Reply to info@ joegormleycpa.com.

Ten-person South Miami CPA firm is looking to purchase a South Miami-Dade CPA practice. Continuing employment opportunity is an option or merger w/ growth-oriented sole practitioner or small firm. Contact Larry Nones at (305) 2741200 or larry@jnccpas.com. Visit our website at www.jnccpas.com.

Buy-Sell-Merge-Finance your practice w/U.S.A.’s No. 1 Accounting Brokerage Firm. Selling practices in Florida for 29 yrs. Practices available include: Fort Lauderdale $350,000; Jacksonville $850,000; Bradenton $340,000; OrlandoJacksonville East Coast area $1,600,000; St. Pete grossing $185,000+; Orlando $250,000; Gainesville-Ocala area $800,000; Fort Walton Beach $375,000. Many others! Contact Erwin Rosenblatt (561) 666-6737 or Leon Faris, CPA (800) 729-9031 at Professional Accounting Sales. Visit our website at www.cpasales.com.

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35

ON THE

move Transitions

Alexander E. Binello

Clearwater: CBIZ and Mayer Hoffman McCann PC announces that Nicole Haugen has been promoted to senior associate and Melissa Curtiss has been promoted to associate.

Tampa: Baumann, Raymondo & Company, PA has merged with Ohiobased business advisory firm Skoda Minotti. The firm now will be known as Baumann Raymondo, a Skoda Minotti CPA firm.

Michele P. Perrara

Coral Gables: Alberni Caballero & Company, LLP announces the promotions of Nestor Caballero to managing partner and Christopher G. Chiocca to partner.

Christopher G. Chiocca

Coral Gables: Verdeja & De Armas LLP announces that Vivian Perez has been promoted to audit senior.

Fort Lauderdale: Goldstein, Zugman, Weinstein & Poole, LLC announces the promotion of Michael Preville to partner.

Mark A. Fenaughty

Christopher Marrie

36 NOVEMBER/DECEMBER 2012

Jacksonville: LBA Certified Public Accountants and its three affiliates (LBA Healthcare Consulting Services, LBA Retirement Plan Services and LBA Wealth Management) now will identify as one firm – The LBA Group.

Vero Beach: Harris, Cotherman, Jones, Price & Associates will combine with Rehmann and will assume the Rehmann name.

Who’s News

Manuel E. Pravia

Naples: Hill, Barth & King, LLC announces the admittance of Christopher Marrie as a principal.

Miami: Kaufman, Rossin & Co. announces that Stephen Ng has joined the firm as a senior tax manager.

Miami: Morrison, Brown, Argiz & Farra, LLC announces the promotions of Alexander E. Binello to director and Mark A. Fenaughty, Michele P. Perrara and Manuel E. Pravia to principals.

Maida Calvert of Carr, Riggs & Ingram, LLC in Orlando has been elected to the Apopka Family Learning Center (AFLC) Board of Directors.

CliftonLarsonAllen has been named the top performer in the Intacct Business Partner Program for 2012.

John Gabriel of Gabriel and Associates in Jacksonville was nominated for the University of North Florida Alumni Association’s annual Outstanding Alumni Award.

For more news about members and other Florida CPAs, visit CPAs in the Spotlight at www.ficpa.org/Content/News/Spotlight.aspx.

The space for Who’s News, Transitions and other announcements published on this page is limited to news focusing on promotions and new hires for FICPA members; speeches by members at professional conferences; and other firm news, such as recognition of business achievements. We do not publish FICPA committee appointments as a part of this feature because of space limitations.

Submissions for On the Move can be emailed to communications@ficpa.org.

Richard M. Hoffman of CBIZ and Mayer Hoffman McCann, PC in Miami has been named board chair of Jewish Community Services.

to serve on the faculty for the 2012 Florida Symposium for Financial Planning Professionals.

elected as treasurer of the Board of Directors for the Punta Gorda Chamber of Commerce for 2012-13.

(AAAPM) credential by the Association for Accounting Administration.

Thomas N. Jefferson, previously a senior accountant at Berger, Toombs, Elam, Gaines & Frank in Fort Pierce, has been named vice president of finance for Treasure Coast Food Bank.

James LaHam of Berman, Hopkins, Wright & LaHam in Viera traveled to the Republican National Convention in Tampa to highlight his recently published book, True G.R.I.T. – A True Graduated Rational Income Tax System.

Brian Nemeroff of Berman, Hopkins, Wright & LaHam in Viera is the new chairman of the board for the Brevard Symphony Orchestra.

Darla Thompson of Cherry, Bekaert & Holland, LLP in Coral Gables recently was honored by the Coral Gables Chamber of Commerce as 2012-13 Board Chair.

Jo Ann Koontz of Koontz & Associates, PL in Sarasota was chosen

Brenda Lynch of Strang, Olsen & Lynch CPAs in Punta Gorda has been

FLORIDA CPA TODAY

John Nicholas and Tracy O’Neill of Kerkering, Barberio & Co. in Sarasota have been awarded the Accredited Administrator in Accounting Practice Management

www.ficpa.org

37

WEB

digest

Whether published in Florida CPA Today or on the FICPA’s website, www.ficpa. org, articles by FICPA members are full of information about timely accounting issues. On the website, you’ll find new and archived articles on a variety of topics.

To read this article in its entirety, visit the FICPA’s website at www.ficpa.org/FCT/ Technical.

Recently Implemented 408(b)(2) Plan Costs and Investment Fee Transparency Requirements

By Geoffrey M. Rhines, CPA/PFS, CGMA Managing Director, Southeast Executive Benefits, 401k Advisors

I

n February 2012, the Department of Labor, Employee Benefits Security Administration (DOL) issued its final regulations relating to Service Provider Disclosures under Section 408(b)(2). The Employee Retirement Income Security Act (ERISA) requires plan fiduciaries, when selecting and monitoring service providers and plan investments, to act prudently and solely in the interest of the plan’s participants and beneficiaries.1 Responsible plan fiduciaries also must ensure that arrangements with their service providers are “reasonable” and that only “reasonable” compensation is paid for services.

Fundamental to fiduciaries’ ability to discharge these obligations is obtaining information sufficient to enable them to make informed decisions about an employeebenefit plan’s services, the costs of such services, and the service providers.

Effective July 1, 2012, all ERISA retirement plans, with narrow exceptions for certain 403(b) annuity contracts and custodial accounts, are required to disclose to retirement-plan participants, all fee and investment costs related to the qualified plan. The disclosure rule covers the following “covered-service providers:” advisors; broker/ dealers; record keepers; and consultant and investment managers who expect to receive at least $1,000 in compensation for brokerage, recordkeeping, consulting or fiduciary services.2 One of the key disclosure requirements of 408(b)(2) is that service providers must disclose direct and

indirect compensation to the plan fiduciary. Direct plan compensation is those expenses the covered plan pays directly to the service provider. The covered-service provider must identify the services for which the indirect compensation will be received, as well as the payer of the indirect compensation. This new requirement for disclosure of indirect compensation will illustrate for the responsible plan fiduciary the potential conflicts of interest on the part of the covered-service provider from the receipt of indirect compensation.3 Qualified plan fiduciaries are required to act prudently and solely in the interests of plan participants. The information derived from service providers related to compensation is intended to allow the plan sponsor to: • Assess fee reasonableness • Identify potential conflicts of interest • Communicate fee information to plan participants FCT To continue reading, visit www.ficpa.org/FCT/Technical.

Geoff Rhines is a managing director with 401k Advisors in Atlanta, Ga. 401k Advisors is one of the largest independent retirement plan advisory firms in the U.S. with expertise in investment research, including Scorecard SM – their proprietary investment fund ranking system – as well as fee benchmarking and fiduciary oversight processes. Rhines has assisted Retirement Plan Committees and Compensation Committees of the Board with the design and implementation of qualified and non-qualified plans, executive benefit plans and business-succession strategies.

ERISA Section 404(a)(1) Section 2550.408b-2(c)(1)(iii) 3 Dept. of Labor, Employee Benefits Security Administration, 29 CFR Part 2550, Final Ruling, Page 5 1 2

38 NOVEMBER/DECEMBER 2012

FICPA CPE Programs.

Helping you connect the dots.

For more information, visit www.ficpa.org/cpe or call (800) 342-3197 (in Florida) or (850) 224-2727.足足足足

Your one-stop CPE resource.

FLORIDA CPA TODAY

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39

F L O R I D A

Florida Institute of Certified Public Accountants P.O. Box 5437 Tallahassee, FL 32314-5437