September/October 2010 - Florida CPA Today | Volume 26, Number 5

contents Volume 26, Number 5

EXECUTIVE EDITOR AND CEO-EXECUTIVE DIRECTOR Kathryn B. Anderson, CAE SR. DIRECTOR OF MARKETING & COMMUNICATIONS Jan Dobson, CAE EDITOR Suellen D. Wilkins GRAPHIC DESIGNER Loleta K. Bolden PUBLICATIONS COORDINATOR Dianne Dearduff EDITORIAL COMMITTEE William C. Quilliam, CPA, Ph.D., Chair Douglas Day, CPA, Vice Chair Walter C. Copeland, CPA • Lynda M. Dennis, CPA Cynthia Fernald, CPA • David Hochsprung, CPA Michael Kridel, CPA • Troy Y. Manning, CPA William J. Odendahl Jr., CPA 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/Content/Members/Tools/Publications/FCT/ LettersToEditor.aspx.

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’s qualifications 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. © 2010 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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September/October 2010

6 22 24 DEPARTMENTS 11 Governmental Affairs 21 FICPA NewsFlash Digest 29 News Briefs 30 Educational Foundation 33 DOR Update 34 Marketplace 36 New Members 37 Kudos 38 On the Move

PRESIDENT’S MESSAGE 5 Peer Review, Florida CPA/PAC Are Key to Profession

COVER STORY 6 Disaster Relief Claims Navigating Uncharted Waters 7 Grab a Lifeline A Case for Engagement Letters

FEATURES 16 Local Government Audit Reports Know the Guidelines 22 Data Protection and Destruction: Don’t Take a Chance 24 FABexpo 2010 A Higher Degree of Education

Mission Statement Florida CPA Today is an award-winning, professional publication for more than 18,500 members of the Florida Institute of CPAs. Our magazine: Allows members to share their professional expertise on technical issues Keeps members informed about FICPA events and advocacy Highlights the people and issues that affect Florida CPAs Recognizes the professional accomplishments of our members

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ADVERTISERS’ INDEX: ADP..........................................................14, 21 AON Insurance Services..........................28, 32 Audimation.................................................... 19 Bank Atlantic................................................... 2 CPS Investment Advisors (CPAlliance™)..... 39 LTC Global..................................................... 29 Maxx Merchants............................................... 4 Nova Southeastern University....................... 26 Penservco....................................................... 18 PNC................................................................ 10 Professional Accounting Sales....................... 35 Taxworks........................................................ 19 Trugman Valuation Associates, Inc................. 12

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President’s Message

Peer Review, Florida CPA/PAC Are Key to Profession

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While traveling the state in my new role as your president, I’ve been talking about priorities. At the top of the list is peer review. “The list” actually is the FICPA business plan, which your Board of Governors (BOG) updates annually.

At its June Strategic Planning Retreat, your Board set passage of peer review for relicensure of firms in Florida as the major advocacy issue to accomplish this year. BOG member Dan Hevia, who also chairs the AICPA Peer Review Board and is a Florida CPA, submitted the following information to me. It summarizes the issue and addresses frequently asked questions for Florida CPAs.

Legislative Proposal for Peer Review as a Licensing Requirement Q: Why is peer review as a licensing requirement being proposed?

• Florida is one of the few remaining states that have not adopted peer review as a state licensing requirement.

• Peer review has proven to be a valuable tool in improving the quality of accounting and auditing practices, and in providing users of these services with reasonable assurance that CPA firms are complying with professional standards.

Q: Who will be impacted?

• Participation in the AICPA Peer Review Program will meet the requirement. Therefore, AICPA member firms will not be impacted since they already undergo peer review. Seventy-four percent of FICPA members are AICPA members.

• CPAs in private industry, education and government will not be impacted because this requirement applies only to firms in public practice.

• Firms that limit their practices to tax and consulting services will not be impacted. This requirement applies only to firms that perform audit, attest and compilation services.

• For firms that are required to have a peer review, the peer review will cover only the firm’s accounting and auditing practice and the related quality-control system. It will not extend to other aspects of a firm’s practice.

Q: How will firms be impacted?

• An individual firm’s peer review results will not be made public. The results will remain confidential among the reviewed firm, the reviewer and the Peer Review Committee. Rare exceptions are: www.ficpa.org

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With very limited exceptions, there will not be any reporting of individual peer review results to the Board of Accountancy (BOA) or any other government or ethics body. It is anticipated that reporting to the BOA would be limited to acknowledging that a firm has completed its peer review.

The limited exceptions are for material non-cooperation with the peer review process, or in those very rare instances where a firm fails two consecutive peer reviews.

In those instances, the BOA would be notified of a firm’s non-cooperation or consecutive failed peer reviews.

What is the cost?

• The cost of a peer review will vary, depending on the size and nature of a firm’s practice. For small firms, such as sole practitioners who only prepare compilations without disclosures, the annual cost will be about $200.

FICPA legal counsel and staff currently are writing draft legislation and recommended rules. They will submit these proposals as a single package to the BOA for review and approval.

Ultimately, peer review legislation will be in the hands of the Florida Legislature, hopefully in the upcoming Legislative Session.

Please ask questions about this process as I make my Chapter visits, because this is important to our members. Also, look for expanded coverage of statutory requirement for peer review in the November/December issue of Florida CPA Today.

Another issue that is tied directly to my top 2010-11 legislative priority is the importance of having a strong Florida CPA Political Action Committee (Florida CPA/PAC). In case you didn’t know, the Florida CPA/PAC is supported solely by voluntary contributions. The PAC is committed to helping protect the public’s trust and confidence in, and esteem for, the CPA certificate.

Contributing to the Florida CPA/PAC is the only way FICPA members can collectively help elect business-minded candidates to the Florida Legislature and Cabinet. Florida CPA/PAC funds also help ensure that legislators and Cabinet members hear our voice in Tallahassee. Unfortunately, less than 7 percent of licensed CPAs in Florida contribute to the Florida CPA/PAC. Long before each legislative session begins, PAC activities foster key relationships that create access and, in turn, fuel FICPA advocacy efforts on your behalf. If you have not yet contributed to the Florida CPA/PAC, I urge you to do so now. For more information and to make your contribution, please visit www. ficpa.org/Content/GovernmentalAffairs/PAC.aspx.

It’s your Florida CPA/PAC…Own It!

Michael R. Pender, CPA

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Disaster Relief Claims

Navigating Uncharted Waters

By Phillip Howell, CPA, JD and Stanley Sterna, JD

The British Petroleum (BP) oil spill in the Gulf of Mexico this year has had, and will continue to have, a devastating impact on our coastal environment, possibly for years to come. Businesses and individuals who rely upon the pristine nature of the Gulf coastal areas for their livelihood have been devastated as well. They have suffered loss of revenue; damage to real and personal property; and diminution in the value of their businesses and real property. Along with these financial considerations, they have suffered a serious blow to their way of life. Many have been forced to relocate to look for other opportunities.

Those affected already are making claims for these losses to BP and insurers. Lawsuits have been filed against BP and others involved with the Deepwater Horizon oil well, and a multitude of other lawsuits assuredly will be filed during the next several years. As has been widely reported, a new process is replacing the initial BP Claims Process. On June 16, 2010, BP agreed to provide, over time, a $20 billion fund for those affected by the oil spill (“BP Oil Spill Fund”), and President Obama appointed “Claims Czar” Ken Feinberg to set up and administer the claims process for the fund. Claims to the Gulf Coast Claims Facility began Aug. 23. To submit or resubmit claims, call (800) 916-4893 or visit www.gulfcoastclaimsfacility.com. These potential sources of recovery will require the assistance of experienced accountants who can provide related attestation services, business valuations, consulting services, tax planning advice and expert testimony.

The damage to Gulf Coast businesses will have a negative impact on CPA firms’ regular sources of revenue. This is not entirely new to most Gulf Coast firms that have been in business more than a few years. All remember the impact that the hurricanes of the last decade had on Gulf Coast firms. As Gulf Coast businesses suffered significant income reductions for extended periods of time – many closing their doors for good – CPAs experienced sharp reductions in traditional income sources such as bookkeeping, tax and consulting services, audits and reviews. In an effort to replace the lost revenue from this work, many CPAs ventured into other 6

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areas in which they were less experienced, such as attest services related to insurance claims, business valuations and litigation support. Being less experienced, some of these practitioners failed to consider critical issues when accepting these engagements.

This sometimes resulted in liability and professional discipline.

This same dynamic is at work again, and CPAs can benefit from lessons learned in the aftermath of previous disasters. This article and the article on page 7 focus on several significant considerations in these claim-related engagements. The articles also discuss using properly drafted engagement letters and other techniques to mitigate these risks. This will help practitioners avoid misunderstandings with clients, thereby avoiding litigation or professional discipline.

Comply with Professional Standards When determining whether to accept a consulting or attest engagement, the wary practitioner first should consider two of the profession’s general standards. Rule 201 of the AICPA Code of Professional Conduct applies to all services performed by members and is instructional for all others. These standards mandate that a member undertake only those professional services that the member or the member’s firm reasonably can expect to be completed with professional competence, and that the member exercise due professional care.

Meeting these standards requires experience, or at least competence, in providing the services to be offered in the engagement.

A CPA may conclude that he or she can obtain the requisite knowledge to perform the engagement competently. However, lack of experience in providing these services necessarily opens the CPA to direct attack in litigation brought by the client for professional negligence, or in litigation between the client and BP or an insurer.

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If the business is large enough, there likely will be a need to present projections on future lost income or business valuation services. A CPA should have the necessary industry expertise to validate representations the client made, or be able to consult with an industry expert. Internet research or an industry publication may not provide adequate industry-related information. Because only a handful of CPA firms make their living helping clients submit claims for business interruption or diminution in value, it may be difficult for a CPA inexperienced in these services, or with a particular industry, to demonstrate that he or she complied with the first two general standards. Failure to comply with these standards is a breach of the standard of care sufficient to support a claim for professional negligence. Therefore, if the CPA lacks experience, association with an experienced CPA or industry expert is warranted, or the engagement should be declined.

Conclusion When considering a BP oil spill claim engagement: 1) accept only those engagements in which you have sufficient competence and experience to complete

CPAs can benefit from lessons learned in the aftermath of previous disasters. the engagement with due professional care, and decline the other engagements; and 2) use a properly crafted engagement letter to minimize risk, avoid misunderstandings with clients and ensure timely payment (see the related story on page 7). These common-sense rules can help CPAs avoid disasters that may be lurking in the next engagement.

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Grab a Lifeline

A Case for Engagement Letters

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By Phillip Howell, CPA, JD and Stanley Sterna, JD

When a CPA is retained, good practice dictates use of an engagement letter to set forth the scope and terms of the engagement. Although not required, engagement letters are recommended and can prevent misunderstandings and unforeseen liabilities. Because the primary purpose of an engagement letter is to establish an understanding between the parties, the engagement letter should generally address the following: 1) The parties to the agreement; 2) services to be performed; 3) Responsibilities of the parties; 4) termination of the engagement; 5) limitations on liability or damages; and 6) payment of services.

This article discusses past mistakes that may resurface with the submission and litigation of BP oil spill claims, and how to avoid these mistakes through properly drafted engagement letters. First, CPAs risk unanticipated liability by not expressly identifying the parties to the engagement.

Second, a sufficient description concerning the services the CPA is to perform avoids subsequent confusion and misunderstandings. Third, by clearly stating the client’s responsibilities, the CPA can prevent future disputes based on misguided presumptions. This will be particularly helpful in situations where clients are under the mistaken belief that the CPA ultimately is responsible for the overall content and timely submission of an oil spill claim.

Fourth, having the ability to terminate the engagement under certain circumstances protects CPAs from clients alleging, for example, that the CPA’s untimely withdrawal from the claim submission process led to further damages.

Fifth, expressly limiting the CPA’s liability or damages in the engagement letter further protects the CPA from foreseeable and unforeseeable claims. Finally, it is important to contemporaneously document the time the CPA incurred in performing the services in order to defend against potential fee disputes. Likewise, to avoid litigation and professional discipline, CPAs should comply with the professional code and the particular state’s rules and regulations regarding fee arrangements. www.ficpa.org

Establish Parties to the Agreement In a consulting engagement, the engagement letter should clearly identify the parties to the engagement. Although this suggestion seems obvious, liability in consulting engagements can hinge on a proper recitation of who is a party to the engagement and who is not. For example, in the absence of express language in an engagement letter, a CPA who is hired by an attorney to perform litigation support or claim services may be found by a court to owe certain responsibilities to the attorney’s client. A properly worded engagement letter can help to limit the CPA’s responsibilities to others and discourage courts from extending the accountant’s liability beyond what was contemplated when the engagement was accepted.

Additionally, because litigation will be a possibility in each of these claims to BP and other insurers, clearly identifying the attorney as client, where possible, can provide the protection of the attorneyclient privilege. This will prohibit disclosure of the CPA’s work prematurely.

Describe Services to be Performed Perhaps one of the most important parts of an engagement letter addresses the scope of services. There is a fine line between providing too much and too little information about the services to be performed. Excessive detail may open the CPA to charges that the engagement was not completed in its entirety, and that the engagement’s conclusions are not properly supported. For example, a practitioner who is hired as an expert witness, and who does not complete each and every the task noted in the engagement letter, risks an adversary challenging the CPA’s credibility, opinions and testimony. On the other hand, broadly defining the scope of services may result in misunderstandings and disputes with clients and third parties regarding the specific tasks to be performed.

A recent Florida case exemplifies the problems that may arise by providing too little information in the scope of services section of an engagement letter. In Tropical Glass & Construction Co. v. Gitlin, CPA, the court held that a CPA firm could be liable for negligence for a performed service that was not within the scope of the services outlined in the engagement letter. 13 So. 3d 156 (Fla. 3d DCA 2009). Tropical retained a CPA firm to prepare Tropical’s annual tax returns. The CPA firm entered into two engagement agreements with Tropical during the course of the relationship, and the second engagement letter specifically included an exculpatory provision: Our engagement cannot be relied upon to disclose errors, fraud or illegal acts that may exist. For these reasons, you, and any successors, employees or assigns, understand, acknowledge and agree that neither our firm nor any of its employees or agents shall be liable for any act(s), omission(s), negligence (including gross negligence), breach, mistake in judgment, claims or causes of actions, whether legal or equitable, injury or damages of any kind whatsoever, arising from our engagement…

Id. at 157.

Three years later, Tropical sued the CPA firm, alleging that it had negligently performed monthly bank reconciliations, and as a result, the defendants “failed to detect that Tropical’s bookkeeper had misappropriated Tropical’s funds for his own personal gain.” Id. at 157-58. The defendants argued that, pursuant to the terms of the second engagement letter, it had no duty to detect fraud by Tropical’s employees because the monthly >>> PAGE 8 Photo by Florida Department of Agriculture and Consumer Services, Charles H. Bronson, Commissioner

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bank reconciliations were performed as part of the final preparation of the annual tax returns. Id. at 158. Therefore, the defendants contended that Tropical’s claim was contractually waived or released because the monthly bank reconciliations were within the scope of the services outlined in the two engagement letters.

The court disagreed for two reasons.

First, even though the engagement letter contained an exculpatory clause, the clause did not provide a “specific waiver or release for the preparation of monthly bank reconciliations.” Id. Second, the court held that the defendants could be liable for negligence because there was conflicting evidence regarding whether the monthly bank reconciliations were incidental to or separate from the preparation of the annual tax returns. In other words, the defendants’ liability hinged on whether the monthly bank reconciliations were an integral part of the preparation of the annual tax returns.

If they were, then the defendants’ actions would have been within the scope of the services outlined in the engagement letters, and Tropical would have been barred from bringing its claim due to the exculpatory clause.

This case demonstrates how the scope of services provision in an engagement letter could have a profound effect on future litigation and liability. Had the defendants been more specific regarding what the preparation of annual tax returns entailed (e.g., preparation of monthly bank reconciliations is not included in tax compliance services), they could have avoided the entire litigation.

CPAs retained to prepare insurance claims under the BP Claims Process must carefully determine what services they are providing and sufficiently describe those services in the engagement letter.

In addition to clearly defining the scope of services to be performed, the engagement letter should identify the AICPA professional standards applicable to the engagement, as these also define and limit a CPA’s responsibilities in different types of engagements. For instance, a bookkeeping-services engagement that will not include the compilation or review of the client’s financial statements is governed only by the Code of Professional Conduct; a consulting-services engagement is governed by the Statements on Standards for Consulting Services; and a valuation engagement is governed by the Statements on Standards for Valuation Services. In multidisciplinary engagements several sets of standards may apply, and the engagement letter should identify each set of standards.

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Set Out Parties’ Responsibilities Clearly stating the responsibilities of each party in the engagement letter prevents confusion and mistaken presumptions by the client. Most practitioners have encountered a client who failed to disclose relevant information or documentation that could materially alter the CPA’s conclusions. This frustration can be eased by including an affirmative duty on the client to provide the materials necessary for the CPA to complete his or her services.

With regard to the BP claims process, the practitioner should make clear that the client has a duty to provide the CPA with any transmittals or communications received from or provided to BP, because the CPA typically will not communicate directly with BP. Additionally, many clients filing a BP claim will assume that because the CPA is involved with preparing the claim, the CPA is thereby responsible for the timely filing of the claim. To avoid this assumption and potential liability for untimely submissions, the CPA should point out in the engagement letter that, although he or she is assisting the client in preparing the claim, the client ultimately remains responsible for the timely submission of the requested documentation and the claim itself. The client’s breach of its duties under the agreement may provide a basis for terminating the engagement, relieving the CPA of liability if the client attempts to hold the CPA responsible for an incomplete or untimely claim.

Terminating the Engagement Engagement letters should provide practitioners with the option to withdraw from the engagement if necessary, and the engagement letter should state certain acts or omissions by the client that would warrant a CPA’s withdrawal. In other words, the letter should provide that the practitioner will have the right to terminate the engagement without being held responsible for any consequences if certain contingencies occur, and the practitioner should list those contingencies.

Common grounds for terminating an engagement include a CPA’s conclusion that the client has provided untruthful information, is being dishonest or is uncooperative. Any of these events could substantially affect the CPA’s conclusions.

By addressing these in the agreement, the CPA may avoid liability that otherwise would result from withdrawal. This means, for example, that a client would be barred from later alleging that the CPA’s untimely

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withdrawal from the BP claims process led to further damages. Hold harmless provisions are another way for practitioners to avoid or limit liability.

Limit Liability and Damages Many engagement letters, especially for litigation services, include “hold harmless” provisions which seek to limit the practitioner’s liability or the amount of damages, or provide for indemnification or contribution. For example, a provision in an engagement letter may place a limit or cap on certain types of damages, such as consequential, incidental or punitive damages, should a court find that the practitioner breached the engagement agreement. CPAs, however, must continue to be cautious because these contractual provisions apply only to the parties of the agreement. Therefore, a limitation on damages provision may not limit damages owed to a third party who reasonably relied on the CPA’s work. CPAs should be aware that a third party, such as BP, may rely upon the information they assemble.

If that third party reasonably relies on the information to its detriment, the CPA may face liability, depending on the nature of the service provided and state law.

While hold harmless and indemnity provisions are important, courts will refuse to enforce them unless the language is clear and unequivocal. In Kitchens of the Oceans, Inc. v. McGladrey & Pullen, LLP, the court held that a hold harmless agreement included in the engagement letter between a CPA firm and its client was unenforceable because it did not clearly state that the firm was being indemnified for its own negligence. 832 So. 2d 270, 273 (Fla. 4th DCA 2002). In this case, the client sued an accounting firm for negligence in the firm’s audit of certain financial statements because the auditors failed to detect an ongoing embezzlement scheme by one of the client’s employees. The auditors responded that the engagement letter between the client and the auditors, which included a hold harmless provision, barred the negligence claim: [Client] hereby indemnifies [auditors] and its partners and employees and holds them harmless from all claims, liabilities, losses, and costs arising in circumstances where there has been a knowing misrepresentation by a member of [client’s] management, regardless of whether such person was acting in [client’s] best interest.

This indemnification will survive termination of this letter.

Id. at 271. The Court disagreed with the auditors and explained that >>> www.ficpa.org

“contracts of indemnification which attempt to indemnify a party against its own wrongful acts are viewed with disfavor in Florida and will be enforced only if they express an intent to indemnify against the indemnities’ own wrongful acts in clear and unequivocal terms.” Id. at 272; see Van Tuyn v. Zurich Am. Ins. Co., 447 So. 2d 318, 320 (Fla. 4th DCA 1984) (explaining that if an exculpatory clause is to be effective, it must clearly state that it releases the party from liability for its own negligence).

The Court distinguished the hold harmless provision in this case from other cases that have upheld provisions releasing a party from liability for its own negligence.

For example, in Winn Dixie Stores, Inc. v.

D & J Construction Co., the court held the indemnity agreement covered the claim made against Winn Dixie upon which it was seeking contractual indemnity from D & J. 633 So. 2d 65, 65-66 (Fla. 4th DCA 1994). The indemnity agreement was clear and unequivocal and covered “any claim or loss arising in any manner . . . notwithstanding such accident or damage may have been caused in whole or in part by negligence of you [Winn Dixie] or any of your servants, agents or employees.” Id.; see Joseph L. Rozier Mach. Co. v. Nilo Barge Line, Inc., 318 So. 2d 557, 557-58 (Fla. 2d DCA 1975) (holding sufficient provision that “[c]ustomer shall defend, indemnify and hold forever harmless Lessor…against all loss, liability and expense…due or claimed to be due to any negligence of Lessor, employees or agents of Lessor or any other person.”).

These cases emphasize that a CPA attempting to avoid liability through a hold harmless provision in an engagement letter must clearly and unequivocally explain the liability or damages the CPA seeks to avoid and the client agrees to forego. Courts also are reluctant to enforce these provisions if they appear unconscionable, such as when there is significant disparity between the potential exposure at issue and the limitation of liability (i.e., clause limits losses to $100,000 in fees paid to the CPA when the client’s potential exposure is $10,000,000).

Establish the Fee Arrangement BP oil spill claims may present a difficult environment for CPAs in terms of managing collection risk. Many clients simply will be unable to pay the CPA’s fees until the client receives payment from BP. It is unclear how quickly BP will pay submitted claims, and because the payments will be remitted directly to the client, the CPA is at a disadvantage in securing payment. Additionally, some CPAs likely www.ficpa.org

will charge a contingent rather than an hourly fee for their work. Even if that is permissible under AICPA and local board of accountancy rules, juries likely will frown on such an arrangement if a claim later develops. To defend their fees if they come under attack in a claim, or if the client challenges the fees later, CPAs need to document in their working papers the time they incur in performing services, even if they charged fixed or contingent fees.

Although most clients will value and appreciate the assistance their CPA provides, a CPA occasionally may be faced with an unscrupulous client who will seek to avoid paying the CPA after the claim is paid. So, in some instances, CPAs may need to consider promissory notes, personal guarantees or other forms of security for fee payment.

The engagement letter should specifically state how the CPA is to be paid. For CPAs hired as expert witnesses, the engagement letter should include a special provision to guarantee payment if a trial judge concludes that the CPA is an unqualified expert. The U.S. Supreme Court holds that a trial judge decides whether an expert is qualified to testify by determining whether he or she has the minimum qualifications, which include special knowledge, skill, experience, training and education in the area he or she is expected to testify. See Kumho Tire Co. v.

Carmichael, 526 U.S. 137 (1999); Daubert v. Merril-Dow Pharmaceuticals, Inc., 509 U.S. 579 (1993). Some clients will attempt to avoid paying a CPA retained as an expert if a trial judge later determines the CPA is unqualified to testify.

To protect against this attack, a CPA should consider attaching a curriculum vitae (CV) to the engagement letter. By attaching the CPA’s qualifications, a client cannot later claim that it did not know of the CPA’s qualifications, or lack thereof, should a Court make such a determination.

The engagement letter should also include a provision stating that if a Court determines that the practitioner is not qualified to be an expert, then that determination is not a breach of the agreement. By including this provision, a CPA will still be entitled to payment under the agreement despite a Court’s determination that the CPA is unqualified to render testimony in the case.

Contingent Fees Prohibited for Certain Services Each state has its own specific rules regarding fee arrangements for performing a professional service. CPAs should conduct careful research regarding the state’s individualized rules and regulations before charging a contingent fee for their services.

Rule 302 of AICPA’s Code of Professional Conduct states that a CPA shall not receive a contingent fee from the client if the CPA performs “an audit or review of a financial statement;” a compilation of a financial statement that the CPA reasonably expects a third party will rely on if the compilation report does not disclose a lack of independence; “an examination of prospective financial information;” or the preparation of a tax return or refund claim not subject to substantive review.

Florida has its own rules with which CPAs must comply when deciding fee arrangements with clients. For example, Florida Administrative Code, Rules 61H121.003 and 61H1-21.005, specifically address contingent fees by CPAs. These rules state that a CPA may not accept a contingent fee for audits, review or compilation services; services for any prospective financial data, including forecasts and projections; or tax filings.

However, a contingent fee is acceptable for services performed if the taxing authority has begun an audit on a tax filing. The reasoning behind this is that any findings from the audit will be considered those of the taxing authority. Additionally, CPAs are prohibited from accepting contingent fee engagement in connection with any service defined under Fla. Stat. § 473.302(8)(a). These services include preparing an opinion on financial statements or attesting as an expert to the reliability of financial information.

A CPA interested in charging a contingent fee in connection with services for a BP oil spill claim should ensure that the fee arrangement complies with the ethical rules of the profession, and the rules and regulations of the particular state.

Stanley Sterna, JD is a director of claims for Continental Casualty Company’s Accountants Professional Liability Program, which is endorsed by the AICPA. Continental is the nation’s largest provider of errors and omissions coverage for CPAs and accountants. He was admitted to the practice of law in the federal and Illinois state courts in 1990 and is a frequent speaker at seminars involving accountants’ professional liability claims.

Phillip Howell, CPA, JD is an attorney and director in the Tampa and Pensacola offices of Galloway, Johnson, Tompkins, Burr & Smith, PLC. He practices in the area of commercial litigation with an emphasis on professional negligence defense, first-party insurance, business and real-estate disputes and construction defects in federal and state courts. He also handles appellate matters.

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Governmental Affairs

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By John W. Johnson, FICPA Director of Governmental Affairs

The Florida Constitution establishes and describes the duties, powers, structure and functions of Florida’s government and establishes basic Florida law. The present Constitution is Florida’s sixth. Fifty-six delegates drafted the first Florida Constitution in 1838 while seeking statehood, which was granted March 3, 1845. Voters adopted Florida’s current Constitution on Nov. 5, 1968. It contains 12 Articles.1 Changes to Florida’s Constitution can affect one’s life, liberty and wallet. Because special-interest groups support or oppose most proposed amendments – and usually spend millions of dollars to influence the outcome of a single issue – Florida citizens should take Election Day decisions seriously. Before stepping into the voting booth, it’s important to know how each amendment would affect Florida law.

Article XI: How to Propose Changes One of the most innovative features of Florida’s current Constitution is the provision for amending it. Article XI creates five ways to propose amendments to voters: • Proposal by Legislature with joint resolution – The Legislature can put a proposed amendment on the ballot if 60 percent or more of the legislators in each chamber agree to do so in a joint resolution.

• Proposal by a Constitution Revision Commission (CRC) – The CRC is charged with reviewing the Constitution and drafting any “nonrelated taxation or state budgetary” revisions to be placed on the ballot for the voters to consider. The CRC meets every 20 years and next will meet in 2017.

• Proposal by a Taxation and Budget Reform Commission (TBRC) – The TBRC is charged with examining the state budgetary process; the state’s revenue needs and expenditure processes; the appropriateness of the state’s tax structure; and governmental productivity and efficiency. The TBRC meets every 20 years and next will meet in 2027. www.ficpa.org

Before You Vote Amending Florida’s Constitution • Proposal by Citizen Initiative, which requires a petition signed by as many voters as eight percent of the votes cast in Florida’s congressional districts during the last presidential election.

The Florida Division of Elections publishes a list of the requirements that must be met to get a citizen initiative on the ballot.

• Proposal by Constitutional Convention, which gives the people power to consider a revision of the entire constitution through a petition that declares the desire for a convention and is signed by as many voters as 15 percent of the votes cast in Florida’s congressional districts during the last presidential election.

for statewide office. This practice was made permanent in the Florida Constitution in 1998 (proposed by the Constitution Revision Commission). During the 2006 election, Florida taxpayers subsidized $11.1 million. (Charlie Crist, who was elected governor in 2006, received $3.3 million in public financing).

Support Republicans in the Legislature Opposition Democrats in the Legislature

AMENDMENT 2: TAX BREAK FOR DEPLOYED MILITARY PERSONNEL Sponsor: The Florida Legislature

Ballot Text: Proposing the repeal of the provision in the State Constitution that requires public financing of campaigns of candidates for elective statewide office who agree to campaign spending limits.

Ballot Text: Proposing an amendment to the State Constitution to require the Legislature to provide an additional homestead property tax exemption by law for members of the United States military or military reserves, the United States Coast Guard or its reserves, or the Florida National Guard, who receive a homestead exemption and were deployed in the previous year on active duty outside the continental United States, Alaska or Hawaii in support of military operations designated by the Legislature. The exempt amount will be based upon the number of days in the previous calendar year that the person was deployed on active duty outside the continental United States, Alaska or Hawaii in support of military operations designated by the Legislature. The amendment is scheduled to take effect Jan. 1, 2011.

Background: Since 1987, Florida taxpayers have been subsidizing the campaigns of candidates

Background: If voters approve this amendment, the Legislature will be required to >>> PAGE 12

Ballot Includes These Amendments On Nov. 2, 2010, Florida voters will decide the fate of a least six proposed amendments to the Florida Constitution and one referendum question about the federal deficit.

AMENDMENT 1: REPEAL OF PUBLIC FINANCING REQUIREMENT Sponsor: The Florida Legislature

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provide a homestead property tax reduction to every Floridian serving in the military outside the continental United States, Alaska and Hawaii. The amount of the tax break will be determined by the number of days a member serves overseas.

Support: This proposed amendment has the support of every member of the Florida House and Senate.

Opposition: There is no known opposition to this amendment.

AMENDMENT 4: REFERENDA REQUIRED FOR ADOPTION AND AMENDMENT OF LOCAL GOVERNMENT COMPREHENSIVE LAND USE PLANS Sponsor: Florida Hometown Democracy Inc., PAC Ballot Text: Establishes that before a local government may adopt a new comprehensive land use plan, or amend a comprehensive land use plan, the proposed plan or amendment

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shall be subject to vote of the electors of the local government by referendum, following preparation by the local planning agency, consideration by the governing body and notice.

Background: This amendment, also know as the “Florida Hometown Democracy” amendment, proposes to require a taxpayerfunded referendum for all changes to local government comprehensive land-use plans.

Currently, county and city commissioners make comprehensive plan decisions after proposed changes are reviewed by the local planning commission; vetted by the public (via public hearings); receive recommendations from local government planning staff; receive input from state agencies; and are approved by Florida’s Department of Community Affairs.

According to the Florida Department of Community Affairs July 2008 Sunset Review Agency Report to the Legislature, in fiscal year 2006-07, there were 6,406 amendments to local comprehensive plans.

Supporters say local governments are entirely too willing to change comprehensive land-use plans to accommodate developers and builders. They want to transfer that power to the people.

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The amendment’s opponents, many of whom are developers, real estate agents or builders, say it would result in complex ballots that would overwhelm and confuse voters. They say the measure would badly damage the Florida economy by increasing taxes and unemployment.

Financial Impact Statement The amendment’s impact on local government expenditures cannot be estimated precisely. However, local governments will incur additional costs because of the requirement to conduct referenda in order to adopt comprehensive plans or amendments thereto. The amount of such costs depends on the frequency, timing and method of the referenda, and includes the costs of ballot preparation, election administration and associated expenses.

Support: A Political Action Committee (PAC) called Florida Hometown Democracy supports the initiative.

Opposition: The initiative is opposed by more than 250 statewide business and labor groups, including Citizens for Lower Taxes >>>

www.ficpa.org

and a Stronger Economy, the Florida Chamber of Commerce, the Florida AFLCIO and 1,000 Friends of Florida.

AMENDMENT 5: STANDARDS FOR LEGISLATURE TO FOLLOW IN LEGISLATIVE REDISTRICTING AMENDMENT 6: STANDARDS FOR LEGISLATURE TO FOLLOW IN CONGRESSIONAL REDISTRICTING Sponsor: FairDistrictsFlorida.org Ballot Text: Legislative and Congressional districts or districting plans may not be drawn to favor or disfavor an incumbent or political party. Districts shall not be drawn to deny racial or language minorities the equal opportunity to participate in the political process and elect representatives of their choice. Districts must be contiguous.

Unless otherwise required, districts must be compact; as equal in population as feasible; and, where feasible, must make use of existing city, county and geographical boundaries.

www.ficpa.org

Background: Redistricting is the act of re-dividing the state into new election districts. By law, it happens every 10 years immediately after the Federal Census.

FairDistrictsFlorida.org is working to establish constitutionally mandated fairness standards for the way Florida draws legislative and congressional district lines.

According to FairDistrictsFlorida.org, these amendments would establish fairness standards for use in creating legislative and congressional district boundaries. The standards would prohibit drawing district lines to favor or disfavor any incumbent or political party. Districts would have to be compact and use existing political and geographical boundaries.

Support: Fair Districts Florida, as well as a majority of the minority party in the House and Senate, support the proposed ballot measure.

Opposition: Republicans and a handful of minority lawmakers from both parties feel it could make minority access more difficult and would reduce election opportunities for minorities.

AMENDMENT 8: REVISION OF THE CLASS SIZE REQUIREMENTS FOR PUBLIC SCHOOLS Sponsor: The Florida Legislature Ballot Text: The Florida Constitution currently limits the maximum number of students assigned to each teacher in public school classrooms in the following grade groupings: for prekindergarten through grade three, 18 students; for grades four through eight, 22 students; and for grades nine through 12, 25 students. Under this amendment, the current limits on the maximum number of students assigned to each teacher in public school classrooms would become limits on the average number of students assigned per class to each teacher, by specified grade grouping, in each public school. This amendment also adopts new limits on the maximum number of students assigned to each teacher in an individual classroom as follows: for prekindergarten through grade three, 21 students; for grades four through eight, 27 students; and for grades nine through 12, 30 students. This amendment specifies that class size limits do not apply to virtual classes; requires the >>> PAGE 15

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Legislature to provide sufficient funds to maintain the average number of students this amendment requires; and schedules these revisions to take effect upon approval by the electors of this state and to operate retroactively to the beginning of the 20102011 school year.

Background: The Class Size Amendment, which voters passed in 2002, sets a maximum number of students allowed in classrooms throughout Florida. The new proposal would raise the maximum allowable number of students per class by changing the calculation from per-class maximums to school-wide averages. The change would allow a school to be over the average in one class provided that excess is balanced by another class at that school with fewer students than the allowable average. Backers say the change would save millions of dollars and give individual schools a measure of flexibility not present in the current law. Opponents say voters clearly wanted to cap class sizes at the levels they passed into law in 2002, and that students and teachers benefit from smaller class sizes.

Support Republicans in the Legislature Opposition Democrats in the Legislature Referendum on Deficit Spending Unlike Florida lawmakers, who must balance state revenues with spending every year, Congress has the ability to spend more than it collects.

The Florida Legislature has placed on the November 2010 ballot a nonbinding resolution that asks whether voters support a constitutional requirement that the federal government balance its budget.

The nonbinding resolution reads: “In order to stop the uncontrolled growth of our national debt and prevent excessive borrowing by the federal government, which threatens our economy and

Bileca Wins!

FICPA member Michael Bileca, candidate for House District 117, has won a hard-fought, seven-way Republican primary battle. Bileca took 40 percent of the vote in the Aug. 24 election. He now will run against the lone Democrat challenger in the Nov. 2, 2010 General Election.

To learn more about Michael Bileca, read the July/August 2010 issue of Florida CPA Today at www.ficpa.org/Content/ Files/Docs/Flipbooks/2010/FCT/JulyAug/index.html.

For more information about candidates who are seeking office in the 2010 elections, visit the Florida Division of Elections website at election.dos.state.fl.us/.

national security, should the United States Constitution be amended to require a balanced federal budget without raising taxes?” Yes No

AMENDMENT 7: STANDARDS FOR LEGISLATURE TO FOLLOW IN LEGISLATIVE AND CONGRESSIONAL REDISTRICTING

Court Removes Amendments from Ballot

Sponsor: The Florida Legislature

As of the date this article was published, a Leon County Circuit Court had removed the following amendments from the 2010 ballot.

However, if the Florida Supreme Court overruled any lower court rulings by Sept. 2, 2010, those amendments will appear on the 2010 ballot.

AMENDMENT 3: PROPERTY TAX LIMIT FOR NON-HOMESTEAD PROPERTY; ADDED EXEMPTION FOR NEW HOMESTEAD OWNERS Sponsor: The Florida Legislature Background: The proposal calls for limiting the maximum annual increase in the assessed values of non-homestead property to 5 percent. It also calls for providing a $25,000 exemption for people who have not owned a “principal property” in the previous eight years.

To review all Constitutional Amendments and Referendum, visit the Florida Division of Elections website at http://election. dos.state.fl.us/constitutionalamendments/2010-proposed.shtml.

www.ficpa.org

Background: Calling Amendments 5 and 6 unworkable, leaders of the Republicanled Legislature and a few members in the minority party responded by crafting Amendment 7. They say this amendment will complement Amendments 5 and 6 by allowing other factors to be taken into account when drawing district boundaries.

The proposal allows those drawing the political boundaries to take into account “communities of interest.” Such communities historically have been, for example, coastal residents and members of racial or ethnic minorities.

AMENDMENT 9: HEALTH CARE SERVICES Sponsor: The Florida Legislature Background: This proposal would prevent any government from requiring individuals, employers or health-care providers to participate in any health-care program.

The proposal specifically exempts programs already in effect, which would include Medicare and Medicaid. The proposal allows patients to pay their health-care providers directly instead of going through a third-party insurer.

To see the Florida Constitution, visit the Florida Legislature’s website at www.leg. state.fl.us/ and click on Florida Statutes, Constitution and Laws of Florida, then on Florida Constitution.

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Local Government Audit Reports Know the Guidelines

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By Marilyn D. Rosetti, CPA

Florida law1 requires municipalities and special districts that meet specified thresholds, as well as all counties, to have an annual financial audit by an independent CPA. CPAs must conduct these audits in accordance with Chapter 10.550, Rules of the Auditor General. This chapter requires, among other things, that CPAs conduct audits pursuant to Generally Accepted Government Auditing Standards (GAGAS).

To view reports on the results of audit reviews, as well as other reports the Auditor General releases, visit www. myflorida.com/ audgen and click on Auditor General Released Reports.

Audit reports are required to be submitted to the Auditor General within 45 days of delivery to the governing body, but no more than 12 months after fiscalyear end. As Florida law requires2, the Auditor General performs desk reviews on all local government audit reports submitted. The Auditor General publishes reports on the results of the reviews annually. The most recently released report, No. 2010-172, summarizes the results of the review of 2007-08 fiscal year audits.

Here are significant findings: Timely Submission. Audit reports were not always submitted, or were not submitted on time. Report Exhibits A and B list 94 entities that either were required to provide for an audit, or may have been required to provide for an audit, and did not. Report Exhibits C and D list 171 entities that did not submit the audit report by the statutory due date.

Delivery Date. Report Exhibit E lists 78 entities that did not comply with the audit report submission requirements because they did not provide information to indicate the date the audit report was delivered to the governing body.

Licensing of Auditors. Three firms that performed audits were not licensed to perform Florida audits on the dates of the auditors’ reports. This included two in-state firms that were not licensed by the Florida Board of Accountancy on the dates of the auditors’ reports, and one out-ofstate firm that did not have a temporary license on the date of the auditor’s report.

Completeness Reviews. Every report is subject to a completeness review that includes checking for adherence to GAGAS, Generally Accepted Accounting Principles (GAAP), and Rules of the Auditor General. Most of the audit reports were presented in accordance with GAGAS, GAAP and Chapter 10.550, Rules of >>>

Section 218.39, Florida Statutes Section 11.45(7)(b), Florida Statutes

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the Auditor General. Report Exhibit F provides a list of criteria with which five percent or more of the reports did not comply, including the following: • Although required by GAAP, notes to the financial statements, for investments exposed to foreign currency risk, did not include the U.S. dollar balances organized by currency denomination and, if applicable, by investment type for 51 of 79 applicable reports.

• Although required by GAGAS, the auditors’ reports on compliance and internal control did not include a description of the departure from the standard auditor’s report on the financial statements for five of 10 applicable reports when the report was other than an unqualified opinion.

• Although required by Section 163.31801, Florida Statutes, impactfee affidavits included in the audit reports were not sworn to before an officer authorized to administer oaths (e.g., notary public) for 11 of 24 applicable reports.

Comprehensive Reviews. Samples of 60 reports are subjected to comprehensive

Auditor General reviews, which include 1) a more extensive review of the financial statements and note disclosures; 2) pension review; 3) Florida single-audit review; and 4) federal single-audit review. Although most of the deficiencies pertained to note disclosures, the Auditor General also noted deficiencies in the presentation of financial statements. Report Exhibit G provides a complete list of the deficiencies.

Some of those deficiencies included: • Financial Statements and Note Disclosures. For 10 of 60 reports sampled, the financial statements were not mathematically correct due to other than rounding errors. For 18 of 60 reports sampled, totals on supporting schedules in the notes did not agree with amounts reported in the financial statements.

• Pension Reviews. For nine of 50 defined-benefit plans, the notes did not disclose the name of each plan; the name of the public-employee retirement system or administrator of the plan; or identify the plan as single-employer, agent multipleemployer, or cost sharing multipleemployer. For seven of 35 cost-

sharing defined benefit plans, the notes did not disclose for the current year and each of the two preceding years the amount of the required contribution, or the contribution as a percentage of the covered payroll.

For six of 25 defined contribution plans, the notes did not identify the plan as such.

• Federal and State Single Audits.

For 15 of 60 reports reviewed, the dollar threshold identified in the Schedules of Findings and Questioned Costs to distinguish Type A and Type B State projects was calculated incorrectly. For four of 12 applicable reports, audit findings did not identify the federal program, including the Catalog of Federal Domestic Assistance number; the name of the federal awarding agency; and the name of any applicable pass-through entity.

In 32 of 60 applicable reports, the report on compliance and internal control over compliance applicable to state projects incorrectly cited the Executive Office of the Governor, instead of the Florida >>> PAGE 18

We’ve surpassed $500,000 in cash contributions for the 50th Anniversary Campaign.

We’re now at $750,000!

Thank you to our 50th Anniversary contributors!

Help us reach our goal!

Visit www.ficpa.org/edfoundation to make a contribution today, or join us at some upcoming fundraising events.

• Jeans for Scholarships – Friday, Sept. 10 – CPA firms statewide. www.ficpa.org/jeans • 2nd Annual South Florida Golf Classic – Friday, Oct. 1, http://www.ficpa.org/Content/ EdFoundation/Events/SFLGolf.aspx

The Florida Institute of Certified Public Accountants’ Educational Foundation, Inc. is recognized as tax exempt under section 501(c)(3) of the Internal Revenue Code. Contributions are tax deductible of the fullest extent of the law.

A COPY OF THE OFFICIAL REGISTRATION (#CH2614) AND FINANCIAL INFORMATION MAY BE OBTAINED FROM THE DIVISION OF CONSUMER SERVICES BY CALLING TOLL-FREE (800-435-7352) WITHIN THE STATE. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION BY THE STATE.

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Department of Financial Services, as the authority for the state projects compliance supplement. Total amounts expended for each federal program and state project were not provided on 26 of 43 (federal) and 24 of 40 (state) applicable reports on the Schedule of Expenditures of Federal Awards/State Financial Assistance.

Use Best Practice to Ensure Compliance Reviewing the Auditor General’s annual reports on its reviews of local government audit reports may help local governments and auditors avoid the deficiencies those reports identify. Also, the Auditor General publishes Local Government Audit Report Review Guidelines online at www.myflorida. com/audgen/pages/rules_localgovt.htm.

Auditor General staff use excerpts from the guidelines when performing various reviews of local government audit reports. Local governments and auditors should review these guidelines before finalizing audit reports to help ensure compliance with GAGAS, GAAP and Rules of the Auditor General. >>>

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Change May Be On the Horizon During the past two sessions of the Florida Legislature, bills were filed to reduce the maximum period for submitting audit reports to the Auditor General from 12 months to nine months after fiscal-year end. Although these bills did not pass, there is a possibility that such a bill may pass in a future legislative session.

Auditor General records indicate that about 50 to 55 percent of the reports submitted during the past three fiscal years were submitted by June 30 following fiscal years ending on Sept. 30. Consequently, a law change that reduces the timeframe within which local governments are required to file the audit report to nine months likely would require significant scheduling changes for many local governments and their auditors.

Marilyn Rosetti, CPA works for the Florida Auditor General as audit manager over local government reviews and special audits. She serves on the FICPA State and Local Government Section Steering Committee and is a member of the Florida Government Finance Officers Association.

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Visit Your

New FICPA Website The FICPA has redesigned and reorganized your website. It has a cleaner look, is easier to navigate and has new tools and features.

Here’s a guide to just a few of the updates.

Personalize It After logging in, you’ll have access to many sources that will help you manage and customize your website. Look for the Welcome Box, which offers links geared specifically to your membership interests.

Under “My Account,” check out the tools that will help you keep track of upcoming FICPA events (My Calendar and My Current Registrations), create a page with links of interest to you (My Gadgets), and manage your Listservs preferences (My Listservs).

Find/Share It Easier Everything is now easier to find thanks to reorganized content, the Google search feature on every page and the Quick CPE Search on the homepage. You won’t have to click through so many pages to find to what you’re looking for. If you’re still not sure where to find something, check out the Site Map. Also, under each web page header, the new share button makes it easier to post content to your favorite social media groups.

Take a Tour There are seven main areas of the site: About/Join, Continuing Education, Members, CPA Resources, Future CPAs, For the Public and Gov. Affairs. We invite you to take a few minutes to explore these areas, based on your needs, as well as the new features.

Meet your new FICPA website at www.ficpa.org!

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FICPA NewsFlash Digest

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To bring FICPA members the most current news and information in today’s fast-paced business environment, the FICPA compiles NewsFlash, a timely assortment of news events happening in the profession. The newsletter is e-mailed every two weeks, typically on Thursday afternoons.

Here are some of the most popular recent FICPA NewsFlash features. To view the full stories and other NewsFlash briefs, visit our archives at www.ficpa.org/members/newsflash.

Aug. 12, 2010 Visit Your New FICPA Website – The FICPA has redesigned and reorganized your website. The new site has a cleaner look, is easier to navigate and has new tools and features.

Meet two FICPA Members Running for the Florida House of Representatives in the Aug. 24 Primary – Meet Michael Bileca, candidate for District 117 (Coral Gables) and Roger Shealy, candidate for District 29 (Titusville).

July 29, 2010 Board of Accountancy Finalizes Five Rule Changes – The Board of Accountancy (BOA) recently published two rule changes to ensure compliance with 455.227(1)(t), Florida Statutes. The BOA also finalized three rule changes related to notices of noncompliance and CPE reporting.

IRS Proposes PTIN Fees – The IRS recently proposed (REG139343-08) to begin charging all authorized tax preparers a $50 fee to obtain or annually renew a preparer tax identification number (PTIN).

Tech Tip: Laptop Buyer’s Guide Summer 2010 Edition – Internet Explorer (IE), the default web browser that comes with Windows, has a slightly different process for deleting browsing history, cookies and other web footprints.

July 15, 2010 Florida Warns Companies of E-mail Scams – The Florida Division of Corporations posted a warning on its website about two potential scams.

Tech Tip: Four Essentials to Carry in Your Laptop Bag – We buy laptops so we can work, study or play on our computers, no matter where we are. It pays to be prepared with a well-stocked laptop bag.

July 1, 2010 Board of Accountancy Proposed Two Rule Changes – Legislation proposed by the Department of Business and Professional Regulation and passed during the 2009 Legislative Session requires licensees of all professions to report in writing to the Board within 30 days if convicted or found guilty, or entered a plea of nolo contendere or guilty to, regardless of adjudication, a crime in any jurisdiction.

Tech Tip: Laptop Buyer’s Guide Summer 2010 Edition – Are you in the market for a new laptop but don’t know where to start?

Check out our laptop buyer’s guide and let us help you decide! www.ficpa.org

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“Clever criminals and hackers can retrieve confidential information from small bits of optical or magnetic storage devices.”

DATA Protection and

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As the technology era continues to drive standards of operations, document retention and destruction policies are a critical element in protecting individuals and businesses. The need for real-time information and more efficient business processes has resulted in massive amounts of electronic data that must be protected – during and at the end of its useful life.

Professional standards, such as those provided under SAS No. 103, Audit Documentation; the Generally Accepted Government Auditing Standards (GAGAS) for fieldwork; OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations; and the Public Company Accounting Oversight Board (PCAOB) provide CPAs who deliver attest services with guidance about the type of information they should retain, and for how long. The standards also require that CPAs adopt >>>

Destruction: Don’t Take a Chance

By Craig Armstrong, CPA

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reasonable procedures to ensure the confidentiality and integrity of data, including information they retain electronically.

A CPA’s responsibility, however, extends to information that is beyond the document-retention period. It’s easy to shred paper files, but destroying electronic data isn’t as straightforward.

Electronic data is commonly stored on electronic media devices, such as magnetic disks, tapes and hard drives; or on optical media devices, such as CDs and DVDs. Breaking, cracking, or striking these devices won’t destroy the data they hold. Clever criminals and hackers can retrieve confidential information from small bits of optical or magnetic storage devices.

“Electronic data stored on magnetic media should be degaussed to ensure total data destruction,” said John Lobo, CEO of Proton Data Security. “Degaussers are essentially machines, or hand-held devices, that incorporate technology to completely de-magnetize media. Optical media, such as CDs and DVDs, should be destroyed in equipment that de-surfaces or grinds the disks much more thoroughly than a typical crosscut shredder.”

Consider the value, to you and to your clients, of the information you have on data-storage devices – and what the cost could be if that data fell into the wrong hands. Proper data destruction can be cost effective and provides peace of mind.

CPAs also should help clients assess their risk and need for data-destruction policies. Identity theft and the loss of confidential information have become increasingly sensitive issues, and state and federal government activity regarding data disposal and destruction has increased significantly. Red Flags Rules (pursuant to the Fair and Accurate Credit Transactions Act); Sarbanes-Oxley; the Health Insurance Portability and Accountability Act (HIPAA); and the Gramm-Leach-Bliley Act (GLBA), to name just a few pieces of legislation, require many businesses to ensure that discarded hard drives or other data-storage devices contain no personal or confidential business data. CPAs should encourage clients in these areas, or in other industries that maintain sensitive data (such as government funding, education or health clinics), to include data-destruction best practices in their internal controls.

CPAs and businesses must be proactive in understanding, assessing and enhancing, if necessary, quality-control standards for data protection and destruction. This is critical to ensuring compliance with increasing regulatory requirements, and fundamental to being good stewards of our clients’ information and the resources they provide.

Craig Armstrong, CPA is an audit principal with Daszkal Bolton, LLP in Sunrise. His firm focuses on providing traditional accounting, tax and audit services to middle-market private and publicly held companies. The firm also offers consulting services in several industries. www.ficpa.org

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FABexpo 2010 A Higher Degree of Education

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By Wendy Johnson, CPE Conference Manager

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1. Exhibitors from Becker Professional Education talk with FICPA member Gary Margolis and speaker Dan Levine at the 2010 FABexpo.

2. The 2010 FABexpo featured exhibitor and sponsor ADP. 3. ConnectWise was a sponsor and exhibitor at the 2010 FABexpo.

4. During the 2010 FABexpo, attendees earned CPE on several education tracks.

5. Everyone had a blast during Casino Night, sponsored by the YCPAs Committee, at Howl at the Moon in Tampa.

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Attendees experienced a higher degree of education at the 2010 Florida Accounting & Business Expo™, held June 23-25 at the Tampa Convention Center. In its new location, the FABexpo gave attendees the opportunity to earn CPE credit, visit vendors and enjoy the many attractions in the Tampa area.

CPAs earned up to 23 hours of CPE credit through a range of courses in several education tracks. The trade show also offered valuable networking opportunities, giving FICPA members and other participants unlimited opportunities to advance their professional goals.

This year’s agenda offered two keynote speakers, giving CPAs a bonus hour of CPE credit. On Wednesday, keynote speaker Barry Melancon, CPA, AICPA president and CEO, delivered an overview of the key forces driving change for the CPA profession today and in the future. On Thursday, attendees heard from Chris Kuehl, Ph.D., managing director of Armada Corporate Intelligence. He discussed the current state of the economy and possibilities for the future.

After the keynote addresses each day, attendees chose individual tracks for extensive education sessions. A host of national speakers and CPE topics were tailored to members’ ever-changing needs.

While some attendees were making sure they earned the required accounting and auditing credit through the >>> www.ficpa.org

Accounting & Auditing Track, others brushed up on the latest tax laws through the Tax Tracks. Other tracks included Yellow Book, Technology, CPA Elder Care Services, Industry, Business Advisory, Personal Financial Planning and more.

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Attendees Enjoy New Venue The verdict is in and it’s good news for Tampa! Attendees provided favorable comments about the Tampa Convention Center, including its size and proximity to the Embassy Suites Hotel. Most of the feedback focused on the easy walk between classes and the exhibit hall. These comments, combined with the positive feedback about the agenda, speakers and exhibitors, indicate that the 2010 FABexpo was a success in Tampa!

Trade Show Includes Reception, Vendor Showcase The Vendor Showcase featured almost 100 companies demonstrating products and services designed specifically for financial professionals. Many vendors gave away door prizes such as bicycles, iPods, software and FICPA CPE classes.

During the Thursday evening cocktail reception, the FICPA announced the winners of several prizes. Keith Newman, CPA was the lucky winner of a $300 Best Buy Gift Card. Also during the reception, the FICPA Educational Foundation (EDF) announced the winners of its Silent Auction and a $500 cash prize (see the related article on page 30).

Several other noteworthy events also took place during the three-day expo.

• Practice Management Conference The Practice Management Conference took place June 23 at the Tampa Convention Center. The conference, which offered unique roundtable breakaways, received high marks on all levels from attendees.

At day’s end, the attendee reception was an exceptional networking opportunity for participants, speakers and sponsors.

• Chapter Officers Leadership Conference The 2010 Chapter Officers Leadership Conference also took place June 23.

During the conference, incoming FICPA chapter officers learned about their roles and responsibilities for the coming fiscal year. Their goal was to increase their effectiveness and make the FICPA a stronger organization for the CPA profession.

If you weren’t at this year’s FABexpo but would like to hear some of the speakers or attend the sessions, there’s still time!

Mark your calendar for Sept. 29-Oct. 1, 2010 and join us in Fort Lauderdale for the 25th Annual Accounting Show®. This event will have the same agenda as this year’s FABexpo.

For more information, see the brochure in this issue of Florida CPA Today or visit

www.ficpa.org

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During the conference, 200910 FICPA President Jose Valiente presented the Chapter Excellence Awards to the Tallahassee, Jacksonville, Gulf Coast, Central Florida, Atlantic and Miami Dade chapters. He presented the Florida CPA/PAC Chapter Challenge Awards to the Florida Keys, Miami-Dade and Central Florida chapters. President Valiente also presented the EDF’s Chapter Champions and Make a Difference awards (see the related article on page 30).

• Second Annual Casino Night Back by popular demand was Casino Night. The FICPA Young CPAs Committee served as hosts for the event, which was a huge success! More than 100 attendees came by Howl at the Moon to listen to a live band and play poker, craps, black jack and roulette with “funny money.” With raffles every hour, players earned chances to win hotel stays, rounds of golf, gift certificates and other great prizes. The evening ended with a grand prize winner and runner up for the highest funny money winner. The YCPAs Committee donated all event proceeds to the FICPA Educational Foundation. >>> PAGE 27

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Y o h ur c t e r K t n S

Florida Institute on Federal Taxation® Conference

ge led ow

Nov. 3-5, 2010 • Orlando

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• EDF Golf Tournament The Ninth Annual Golf Classic took place June 25 at the exclusive Feather Sound Country Club. The tournament was an excellent opportunity for CPAs, vendors and friends to gather for fun and camaraderie while raising money to benefit the CPA profession. More than 50 golfers participated, along with 23 tournament sponsors. One of the sponsors, BENSERVCO, took first place in the tournament with a low gross score of 58. The event raised more than $13,000 in scholarship funds for fourth- and fifth-year accounting students (see the related article on page 30).

Sponsors, Accounting Shows Committee Make it Happen The FICPA is very grateful for the generous support of our program sponsors, without whom the FICPA accounting shows wouldn’t be possible. Sponsors of the 2010 Florida Accounting & Business Expo™ include:

Tampa Bay’s IT Department

It is because of the continued dedication of its Accounting Shows Committee that the FICPA is able to provide the best topics and speakers. Many thanks to these dedicated members, who contribute their time and energy to coordinate this great event.

2009-2010 Accounting Shows Committee Frank P. Ward, Chair Randee M. Abramson Alan D. Campbell Lynn H. Clements Lenice A. DeLuca Wayne T. DeWitt Richard M. Dotson Gary A. Fracassi Lucinda L. Gallagher Paulette M. Holder Stanislav Jansta Sharon S. Lassar James M. Luffman William L. Maloney

Patricia M. McDougle Christine M. Moreno Rhonda S. Mowry Mario R. Nowogrodzki Cecil Patterson Jr. Martin M. Prague Robert M. Rankin Diane J. Reich Poornima Srinivasan Denise M. Stubbs Cheryl L. Whitehead Donna C. Zeitler

Join Us Next Year – Back in Tampa!

The FICPA is excited to announce that the FABexpo will return to Tampa in 2011! Mark your calendars now and plan to be at the Tampa Convention Center/Embassy Suites Hotel June 8-10, 2011.

Although the location will be the same, the earlier date will give CPAs plenty of time to earn CPE credit before their June 30 reporting deadline. www.ficpa.org

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Photo by Jason Cohn, National Kidney Foundation

News Briefs From FICPA Staff Reports

Florida Trend Names Member-firms Best Companies to Work For Florida Trend recently named six FICPA member-firms as Best Companies to Work For in the Best Midsized Companies category.

Here are the FICPA member-firms who made the Florida Trend list: • Cross, Fernandez & Riley, LLP, Orlando – Best Midsize No. 7 • Kaufman, Rossin & Co., Miami – Best Midsize No. 8 • James Moore & Co., Gainesville – Best Midsize No. 17 • Averett Warmus Durkee, Orlando – Best Midsize No. 23 • O’Sullivan Creel, Pensacola – Best Midsize No. 34 • Pender Newkirk & Co. – Best Midsize No. 38

Florida CPA Today Wins FMA Award Florida CPA Today (FCT) recently received a Silver Award in the Florida Magazine Association’s prestigious Charlie Awards competition. The award, for Best Special Theme Issue in the Trade/ Technical Category, was for the November/December 2009 issue of FCT. The issue focused on elder planning and included articles by members of the FICPA’s CPA Elder Planning and Support Services Committee.

Shikarpuri

Jill Morton, CPA (left) receives three gold medals during the U.S. Transplant Games.

FICPA Member Wins Gold in U.S. Transplant Games Jill Morton, CPA of Coral Springs recently won three gold medals at the National Kidney Foundation U.S. Transplant Games in Madison, Wis. The annual event is a four-day athletic competition among recipients of organ transplants.

Morton, 50, received a kidney transplant in 2003.

Morton won the gold medal in tennis after winning her age group in the 5K run and in the 20K cycling events. She also won a bronze medal as a member of Team Florida in the 5K run. Morton has competed in three U.S. Transplant Games and has earned gold in tennis in all three games.

Currently, she is completing her CVA certification for business valuation.

Jozsi

FICPA Awards Outstanding Educator, Outstanding CPA in Public Service During the 2010 Annual Convention in Naples, the FICPA recognized two outstanding members – Roshan “Shan” Shikarpuri, CPA of Palm Harbor and Celina Jozsi, CPA of Tampa.

Shikarpuri received the FICPA’s 2010 Outstanding CPA in Public Service Award.

Jozsi, an accounting professor at the University of South Florida, received the FICPA’s 2010 Outstanding Educator Award. www.ficpa.org

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Educational Foundation

FABexpo Events Raise Thousands for Scholarship Fund

By Jason Zaborske, FICPA EDF Development Manager

FICPA Educational Foundation Annual Golf Classic Sponsors BIRDIE BENSERVCO Gulf Coast Chapter Jacksonville Chapter LarsenAllen, LLP Natherson & Company, PA Purvis, Gray & Co. Risk Avoidance Managers Inc./ CAMICO Mutual Insurance USAmeriBank West Florida Chapter

PAR Telovations, Inc West Coast Chapter

BREAKFAST Cavanaugh & Company, PA

DRINK CART The FICPA Educational Foundation (EDF) held its Annual Golf Classic during the 2010 FABexpo. This year’s tournament took place at Feather Sound Country Club in Clearwater.

Fifty-five golfers participated in the tournament, which began with an 8 a.m. shotgun start. Players competed in several contests, including a $10,000 Hole-inOne Contest sponsored by Keith L. Jones, CPA and a Putting Contest sponsored by Hooters. During the awards banquet, EDF President Jeff Greene announced that the tournament raised more than $13,000. The Coulter Foundation will match this, dollar for dollar, for the Foundation’s 50th Anniversary Campaign.

The first-place gross and net winner of this year’s tournament was team Benservco. They had a gross score of 58 and a net score of 64.

Second-place winners were Eddie Del Rio, Scott Rohleder, Dennis Sheaffer and Teimour Mokhtari. The third-place winner was team Risk Avoidance Managers Inc. Other Foundation events also took place during the 2010 FABexpo.

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FICPA Chapters “Make a Difference” The EDF collected $57,675 during the annual Parade of Checks, and $90,670 in Chapter contributions throughout the year, for the scholarship fund. Jose Valiente, FICPA 2009-10 president, announced the winners of the Chapter Champions Awards. For new pledges, the winning chapters were West Coast, Miami-Downtown and Gold Coast. For total dollars contributed, the winners were the Florida Keys, West Florida and Sailfish chapters.

President Valiente also presented the Make a Difference Award to the FICPA’s Miami-Dade Chapter. This year, the Chapter organized a Family Retreat at the Ocean Reef Club in Key Largo. The retreat raised about $10,000, which the Coulter Foundation will match for the Foundation’s 50th Anniversary Campaign. >>>

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Christopher, Smith, Leonard, Bristow & Stanell, CPAs, PA LarsonAllen, LLP

LUNCH Quantum Engineering Associates

HOLE Keith L. Jones, CPA M&I Bank Wealth Management

FICPA CHAPTERS Atlantic Chapter Suncoast Chapter South West Florida Chapter Tallahassee Chapter

www.ficpa.org

Annual Raffle, Silent Auction Raise Foundation Funds Thanks to the hard work of the Board of Trustees and a $500 contribution from Profit Shield Solutions, this year’s EDF Raffle raised $1,500 for the general scholarship fund. The lucky winner of the $500 prize was Jim Spires, CPA, an FICPA member from Cape Coral.

The Foundation’s Silent Auction, also a huge success, raised more than $3,500. Almost 50 bidders vied for sports memorabilia, jewelry and dozens of resort packages. Items that garnered top bids included a guitar signed by B.B. King and Eric Clapton; a three-night stay at the Gaylord Palms Hotel & Convention Center; and an all-star package to a Tampa Bay Lightning game.

For information about getting involved in the 2011 Annual Golf Classic, contact Jason Zaborske, FICPA EDF Development Manager, at (800) 342-3197, Ext. 417, or zaborskej@ficpa.org.

www.ficpa.org

EDF President Jeff Greene congratulates first-place gross and net tournament winners Bill Moore, BENSERVCO CEO; Dave Glazer, CPA; Irv Bernheim, CPA; and Troy Rubottom (left to right).

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Department of Revenue Update

By Renee Watters, Florida Department of Revenue, Office of Public Information

DOR Lists Delinquent Taxpayers Online Amnesty Program Gets Excellent Response

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The 2010 Florida Legislature gave the Florida Department of Revenue (DOR) authority to publish a list of delinquent taxpayers online. These taxpayers have failed to pay or arrange to pay their debt, despite DOR’s repeated attempts to collect the amount due. The list can be found at dor.myflorida.com/dor/taxes/delinquent_ taxpayer.html.

The list includes taxpayers who have unsatisfied tax warrants or liens totaling $100,000 or more. In counties where no taxpayer has warrants or liens totaling $100,000, the list includes the two taxpayers with the highest amount of warrants or liens. A warrant or lien is a public record filed with the Clerk of Court or other government office in the county where the taxpayer is located.

The list is published according to Chapter 2010-138, Laws of Florida. It excludes taxpayers who are in bankruptcy;

www.ficpa.org

DOR Publishes Post-legislative Review Now available on the DOR website at dor.myflorida. com/dor/ is an annual report summarizing DORrelated laws. The report includes dozens of laws the Florida Legislature passed during its Spring 2010 Session.

who have entered into and are current on a stipulated payment agreement; or who have in place a payment agreement with DOR. Taxpayers who want to resolve their tax liability should contact their local DOR service center and must do one of the following: • Pay the amount in full • Enter a stipulated payment agreement

• Provide information to prove the amount on the warrant is not due DOR will update the list every 30 days.

The current list was posted July 8, 2010.

Amnesty Program Proves Effective The 2010 Florida Legislature authorized Florida’s Tax Amnesty Program. The program allows taxpayers to voluntarily pay overdue taxes with no penalty and reduced interest.

The campaign began July 1 – and after only eight business days, taxpayers had completed 1,160 amnesty agreements.

DOR mailed the Tax Information Publication (TIP) to almost 1 million taxpayers and sent almost half a million e-mails directly to taxpayers in early July.

In early August, DOR updated its amnesty webpage with information about the campaign efforts, including data about collections and the number of amnesty agreements taxpayers have completed.

The amnesty agreement, TIP and other information are available at dor.myflorida. com/dor/amnesty/.

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Market Place POSITIONS AVAILABLE Special Assets Accountant – this position manages other realestate owned (oreo) properties & troubled debt restructured (tdr) loans to ensure proper accounting. Candidate must have B.A., intermediate MS Excel expertise, 1-2 yrs accounting, including account reconciliation exp, previous banking exp & accounting degree preferred. E-mail lgiorgianni@jaxbank.com if interested.

Assistant Director – Aviation; City of Tallahassee, Aviation Department; salary – up to $118,684.80 annually; hiring rate will generally not exceed $91,187.20; Min Training & Exp: Possession of a bachelor’s degree in aviation mgmt, accounting, finance, business or public administration, or a related field & six yrs of prof & administrative exp in aviation mgmt, finance, accounting or administration. Three yrs of the required exp must have been in a supervisory capacity in an airport environment.

Note: Preference will be given to applicants w/exp in commercial airport mgmt & administration. Closing date: Open until filled.

Visit http://www.talgov.com, job openings link, for instructions on how to apply. Please follow application instructions precisely.

TDD Number: 711. Equal Opportunity, Veterans Preference Employer.

USF Foundation seeks a part-time internal auditor. Duties – enterprise risk mgmt/audit planning; compliance, operational & consulting projects; Audit Committee report preparation; assist w/ external audit. Min qualifications – CPA plus 3 yrs exp in external or internal audit. Non-profit exp preferred, but not required. Hourly rate negotiable. Send resume to Melanie Jackson, USF Foundation, 4202 E Fowler Ave, ALC100, Tampa, FL 33620. Phone (813) 9741801; fax (813) 974-6167. mmjackson@admin.usf.edu.

Lamn, Krielow, Dytrych & Company (celebrating 40 years), a fastgrowing CPA firm w/ 30 members including 5 partners in Jupiter, is looking for a manager for our tax department. The qualified individual will be responsible for preparing complex corporate, partnership, LLC & individual income returns; supervising staff in the preparation of corporate, partnership, LLC & individual income returns; working w/clients & partners on complicated tax issues & entity structures; performing tax research & preparing conclusion memos to partners & clients as needed; participating on the Tax Committee (which involves software evaluation, staff assignments, recommendations to partners on tax departmentrelated items & billing of clients’ accounts). We have a diverse & exciting client base representing many different industries, providing interesting challenges to the qualified candidate. The firm provides exceptional fringe benefits, including a 40-hour work week (outside of tax season) which ends at noon on Friday. E-mail resume to marcyd@lkdcpa.com.

Miami Beach CPA firm needs accountant w/min 2 yrs exp for bookkeeping & varied tax work. Flexible hours, year-round position. Apply w/resume to e-mail southfloridacpa@yahoo.com or fax (305) 534-7230.

Controller, Miami Shores Village, $3,750-$5,000/mo. DOQ. Req undergrad degree in accounting; req. 3 yrs exp in fin accounting & proficient in Microsoft Office (Excel spreadsheets & Word), bank recs & fin software. Gov’t accounting a plus. Submit resume to keeleye@miamishoresvillage.com. Position open until filled. No phone calls please.

South Miami CPA w/substantial practice planning for exit strategy.

Ideal situation for practitioner w/ growing practice. Fully equipped ofc in great location w/staff & software. E-mail cpamax@aol.com.

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Large S Fla CPA firm looking to talk to a CPA who has performed audits on insurance companies. Must have at least 7 yrs of insurance exp. Per diem is also an option. Reply to File No. K PA 09 10 10.

Bankruptcy Analyst, U.S. Department of Justice – the Office of the U.S. Trustee in Orlando is recruiting for a full-time individual to conduct economic & financial analyses of businesses & consumers in bankruptcy by examining financial reports & operating statements. For additional information, qualification requirements & application procedures, go to www.usajobs.opm.gov. Click on Search Jobs & enter vacancy announcement # ORL BK 10-2122131 in the keyword search. Compensation $57,408-$125,695 plus benefits. An EO/Reasonable Accommodation Employer.

Buy-Sell-Merge-Finance your practice w/ USA’s No. 1 Accounting Brokerage Firm. A Fla-licensed real estate broker w/ 27 yrs of CPA firm merger-acquisition experience. Offering a complete consulting assistance package to our clients including 90% bank financing to the buyer. Current practices available include St Pete grossing $200,000+; Tampa-Largo area grossing $1,200,000; Sarasota grossing $665,000+; Tampa Bay Carrollwood $550,000; TampaClearwater $1,500,000+; Orlando $450,000: Ocala $185,000+; Palm Beach $650,000+; Clearwater $175,000+;. Many others!

Contact Leon W Faris CPA, Professional Accounting Sales at (800) 729-9031 or visit our website at www.cpasales.com.

MISCELLANEOUS

OFFICE SPACE South Broward CPA firm owner seeks quality individual to share office with possible eventual merger for permanent mutual financial benefit & growth. Let’s share our resources. Flexible lease in current space, allowing possible relocation. E-mail browardcpafirm@aol.com.

PRACTICES WANTED FOR PURCHASE OR MERGER Retirement-minded practitioner seeking merger or sale of low-sixfigure practice w/ofcs in Heathrow/Sanford. E-mail dmdenis@ rocketmail.com.

Central Fla CPA seeks to acquire practice or partner w/retirementminded tax practitioner within 25 miles of I-4/I-75/I-275 corridor Ocala to Brandon & Lake Mary to Clearwater. Ideal annual revenues billed $150,000-$300,000. Preferred transition period 0-5 yrs. E-mail cflcpa@aol.com.

PFIC excel schedule – handles gain/ loss calculations for PFIC & non-PFIC transactions as well as Sec. 1291 tax & interest calculations for 2000 through 2012. Easy to add future yrs capabilities. Also calculates ST & LT gains. Comes w/foreign currency exchange rate table to convert CAD, EUR, GBP, JPY into USD for transactions between 2002 to 2009. Additional currencies & dates after 2009 can be easily added. Detail transaction report & Summary Pivot table provided. Sample reports are available. Send e-mail request to Mgordon@berenfeldllp.com.

How to Establish Your Fees. Practical tips for accountants who want to improve their fee structure. For your free copy, call Mostad & Christensen at (800) 654-1654 or go to www.mostad.com/ss.

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) 277-0272. Visit our website at www.ProfessionalCPAbroker.com..

Ready to Buy or Sell? Accounting Practice Sales is the nation’s largest marketer of accounting & tax firms. Don’t go it alone – let us help you get the best deal possible! Call Rick Lee (877) 760-7700, Ext. 710 or Tim Price (727) 698-7262; www. accountingpracticesales.com.

We sell practices. ProHorizons has been helping CPAs sell their practices since 1995. Prompt & professional. Call for a free confidential consultation w/our local representative, Liz Phillips, at (877) 459-2933 or visit www.prohorizons.com.

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

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New Members The Florida Institute of Certified Public Accountants welcomed 246 new members during June and July 2010.

Atlantic Boca Raton: Janet M. Campo, Shawn McIntosh Boynton Beach: Scott A. Glick, Jane S. Horn, Leslie S. Tseng Coconut Creek: Alan N. Greenspan Fort Lauderdale: Alan D. Friedland Lighthouse Point: Todd A. Donaghue West Palm Beach: Anthony Hoffmaster Brevard County Palm Bay: Connie L. Kahler Rockledge: Christopher J. Marzuk Titusville: Venus L. Hinds Broward County Boca Raton: Angela Gaze, Gary M. Kausmeyer, Cheryl A. Rawson, Larry L. Serur, Jeanne B. Wiener Coconut Creek: Barry J. Leffkov, Gillyana T. Santos Cooper City: Debra Touhey Coral Springs: Maria A. Hartman Deerfield Beach: Mark N. Kokonas, Kelly M. Winningham Fort Lauderdale: Thomas J. Gazdic, Lisa E. Ivory, William T. Johnson, David Kraynick, Joshua C. Morris, Matthew M. Perrella, Jacques M. Saint-Vil, Kevin Worrell Hallandale Beach: Kelly D. Edwards Hollywood: Taly Dery, Juan P. Ospina, Ken M. Sinclair Lauderdale Lakes: Janine Young Miami: Elizabeth F. Gabay, Blaise M. Sonnier Parkland: Dale Drushella Pembroke Pines: Antonio J. Gonzalez Plantation: Sherry Bell, Matthew J. McFarlin, Edward A. Wacks, Michael W. Welch Sunrise: R. Scott Repinski, Donna J. Smith, Daniel R. Wilensky Tampa: Lisett Murch Vero Beach: Ryan C. Cobb Weston: Roberto Rivera Central Florida Altamonte Springs: Miranda Fluharty Celebration: Jennifer M. Martens Heathrow: George Prytula Kissimmee: Zoraida R. Cruz, 36

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Tiffany A. Jenkins Lake Mary: Mohamed M. Kermali Longwood: Audrey A. Houck Maitland: Raymond K. Altizer Orlando: Rebekah M. Albert, Nicole Ekendahl, Jennifer C. French, K. Adam Glover, Daniel T. Gougherty, Mark L. Gumula, Carlos G. Hernandez, Danny A. Johnson, Thomas A. Klym, Fern MacDonald, Felipe Mardakis, Andrea Root, Magaly D. Rosario, Scott J. Thomas, Michael R. Wemert Oviedo: Megan E. Jaskulski, Joshua P. Robertson Sanford: Trista M. Muse Winter Park: Kristin Donnan Winter Park: Matthew J. Incinelli, Scott Wagner, Jason S. Zeleznik Emerald Coast Miramar: Grace T. Hartness Gold Coast Deerfield Beach: Amie K. Schutte Pembroke Pines: Nayarit Briceno Gulf Coast Bradenton: Steven J. Lesser Parrish: Kevin A. McNulty Sarasota: Marsha L. Davis, Heather M. Williams Tampa: Neil R. Winter Venice: John A. Williams Jacksonville Jacksonville: Katherine L. Anthony, Nicolette K. Dailey, Jill A. Depietto, Brandon P. Farmand, Monica S. Harrell, Jason S. Marigliani, Michael D. McClung, Gavin C. Severin, Jaron S. Simpson, Barbara A. St. George, Michael W. Tanner Jacksonville Beach: Barry C. Erskine St. Augustine: Michael V. Scine, John D. Snodgrass Yulee: Karyn L. Hartke Miami-Dade Fort Lauderdale: Brett Maveragames Hollywood: Geoffrey Arias Miami: Eldo D. Bori, Martha Felix, Gregorio Herrera, Mina Hosseini, Ryan M. Scott Miami Gardens: Ameibi Martinez North Miami Beach: Adeniyi A. Shopade | September/October 2010

Miami-Downtown Fort Lauderdale: Valerie Alaniz, Tina Jendry Hollywood: Otis Tracey Miami: Alvaro A. Acevedo, Ellen Arcia, Melissa A. Bautista, Renee Bennett, Paul D. Caccamo, Frederico A. Campos, Martha Castillo, Angel Cordova, Lisbel Garcia, Marcia G. GraysonCarty, Ana Hernandez, Keith E. Lavery, Lia R. Martinez, Laura C. Menendez, Emilee D. Pare´, Lewis B. Rainey, Robert T. Renfrow Miami Lakes: Patricia Williams Miami Shores: Juan C. Pena Miami Springs: Felix D. Perez Palmetto Bay: Shawn Levesque Mid-Florida Inverness: Michael T. Fitzpatrick North Central Florida Gainesville: Suzanne Svacina Lake Butler: Kellie H. Connell North Suncoast Clearwater: M. Javier Zuniga Crystal River: John McCullough Palm Beach Boca Raton: Luis R. Davila, Avery J. Yudien Boynton Beach: Collin D. Alpert Delray Beach: Harrison S. Lieberfarb, Alfred C. Mindlin Jupiter: Brian E. Garrett Lake Worth: Jessica Plotkin Loxahatchee: Heather M. Floyd Palm Beach Gardens: Cheryl A. Nuzzolo Port St. Lucie: Agnieszka Hoppmann West Palm Beach: Kelly C. Anderson, Scott Y. Haynes, Christopher E. Micolucci, Suzanne M. Smith, Stephanie E. Weinstein, Camaleta L. Wilson Polk County Frostproof: Sandra L. Shaw Lakeland: William J. Bierschenk, Lara Breisinger Plant City: Lauren L. Ballard Sebring: Albert G. McNorton Tampa: Cassandra L. Ernst Winter Haven: Beverly MacDerment

Sailfish Port St Lucie: Linda J. Shea Stuart: Brianna Eplin Vero Beach: Sheryl S. Vittitoe Sandspur Valrico: Ross D. Hill South Dade Coral Gables: Rachel M. Merritt Miami: Christian Arias, Danielle M. Cardoso, Robert A. Fernandez, Yante Gonzalez, Farah A. Luis-Fayat Sunrise: Jennifer E. Shechter-Liss Southwest Florida Bonita Springs: Sharon R. Hebert Fort Myers: Jeannie M. Dunton, Huiqiu Li, Kiondra White Lehigh Acres: Ashlee Bildzukewicz Naples: Craig A. Bryan, Mark R. Giallonardo, Richard Tobojka Punta Gorda: William B. Rea, Mary G. Stewart St. Johns River Orange Park: Tracy Deadman Suncoast Clearwater: Nathan T. Smith Elkhorn: Francis J. O’Brien Fort Lauderdale: Marc J. Wilson Largo: Tracy S. Jackson Lutz: James D. Krause, Kenneth M. Marinik Pinellas Park: Heather A. Rousseau, Kristy Thompson St. Petersburg: Ian G. Evans, Theresa M. Henson, Dianne Mohr Tampa: Dimitry Izotov, Katherine R. Miller, Carol Radford Tallahassee Crawfordville: Benjamin D. Halvorsen Lamont: Hilda S. Morgan Tallahassee: Joseph S. Aita, Michele C. Vaught, Michael T. Whitney Volusia County Daytona Beach: Jessica A. Creak Ormond Beach: Kally A. Weber West Coast Lutz: Felicia J. Carlee, Michelle P. Garcia Pensacola: Holly G. Carnley >>> www.ficpa.org

Kudos

Innovative Chapter Event Shows Ownership

By Michael R. Pender, CPA My first Chapter visit as FICPA president was to the MiamiDade Chapter’s Second Annual Family Retreat. The event took place July 22-25 at the Ocean Reef Club in Key Largo.

The retreat has as its beneficiary the FICPA Educational Foundation (EDF) and is the brainchild of George Gulisano of Mallah Furman CPAs. By serving as chair of the event for the past two years, George is making a significant contribution to my presidential theme: “It’s your FICPA…Own It!” George was ably assisted by Jason Chorlins, 2010-11 MiamiDade Chapter president, and the energetic members of the Second Annual Family Retreat Committee: Paola Suarez of Gibralter Bank; Mia Thomas; Monte Kane; Mercy San Miguel; Ken Strauss; and Jason Zaborske, FICPA EDF Development Manager.

I want to thank George Gulisano and his team for making a difference in our profession’s future by committing the profits from the weekend to the EDF’s 50th Anniversary Campaign. The capital campaign is still in full swing and accepting your donations.

It’s your Educational Foundation…Own It!

Family members enjoy the day at the Miami-Dade Chapter’s Second Annual Family Retreat in Key Largo.

Plant City: Rebecca A. Rothman Riverview: Niki Patel St. Petersburg: Jeffrey G. Frye Sun City Center: Sherry D. Craig Tampa: Marion C. Albanese, Victor R. Cardoso, Scott D. Davis, Judith C. Destasio, Ryan M. Koski, Douglas V. Krueger, Richard J. Latta, Natalie Leonard, Rudy A. Mayoz, Deborah M. Pendarvis, Wesley K. Pinkerton, Tracy Richert, Susan W. Rickles, Michael N. Sork, Felicia A. Washington, Heejung Yoo Temple Terrace: Devanshu J. Swaly Wesley Chapel: Andy Persaud, Ameet A. Punwani www.ficpa.org

West Florida Cantonment: Erika R. Stanford Gulf Breeze: Sandy J. Lang Pensacola: Charlie P. Castillo, Philip C. De Boer Out of State Bloomington, Ill.: Mark A. Nicholas Duluth, Ga.: Fred H. McGill Eastchester, N.Y.: Larry A. Weiner Franklin, N.C.: John P. Barbee Harrisburg, Penn.: Harry I. Yaverbaum New Hartford, N.Y.: Frank J. Basile Richmond, Va.: Stacy Rick Tuscaloosa, Ala.: Richard B. Wiggins FLORIDA CPA TODAY

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Dana Bu r

On the Move

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Ed Hir sch

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Kelly Tal a

TRANSITIONS Atlanta, Ga: Alvarez & Marsal announces that Christopher Grippa has joined the firm as managing director.

Bradenton: Christopher, Smith, Leonard, Bristow & Stanell, PA announces the admission of Aubrey Lynch as a principal of the firm.

Fort Lauderdale: Keefe, McCullough & Co., LLP announces the promotion of Jonathan Gogolen, Krista Mancuso and Lauren Weinstein to senior accountant, and Martha Guerich and David Kraynick to staff accountant.

Fort Myers: Stroemer & Company, PA announces that Russ Panks has been promoted to partner in training.

Jacksonville: Portnoy CPA announces the acquisition of the accounting practice of Charles R. Sussman, CPA. Miami: Berkowitz Dick Pollack & Brant, LLP announces that Andreea Cioara-Schinas has been promoted to director of Tax Services and that Daniel S. Hughes to director of Forensic and Business Valuation Services.

Miami: Kaufman, Rossin & Co. announces that Ed Hirschberg has joined the firm and that Kara Stearns Sharp was made a principal in the Forensic Accounting and Valuation Services Department.

Orlando: Dixon Hughes, PLLC has named Timothy Richie as an audit member in the Healthcare Services Group.

Pensacola: Bloomer, Geri & Company announces the promotion of Steve S. Schickel to accounting senior.

St. Petersburg: Kirkland, Russ, Murphy & Tapp, PA announces that Dana Burton was promoted to audit senior manager and that Jessica Riley was promoted to tax senior manager.

Tampa: Prida Guida & Company, PA announces that Richard E. Hatcher has joined the firm.

WHO’S NEWS

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Tommye E. Barie of CPA Associates in Bradenton has been selected to serve on the inaugural Advisory Board of the University of South Florida (USF) Sarasota-Manatee College of Business.

Carlos Bravo of Applerouth, Farah & Co in Miami obtained his certified public accountant license.

Elizabeth T. Carlson of CPA Associates in Bradenton attended the 2010 Annual Consultants Conference hosted by the National Association of Certified Valuation Analysts (NACVA) and Institute of Business Appraisers (IBA).

Jennifer Coleman, Kelly Talamo and Angeline Choo of Myers, Brettholtz & Company, PA in Fort Myers recently attended the Hospitality Financial and Technology Professionals 2010 Club and Hotel Controllers Conference.

Nicole Franklin of Christopher, Smith, Leonard, Bristow & Stanell, PA in Bradenton passed the exam to become a certified public accountant in Florida.

Jeff Gerhard of CPA Associates in Bradenton has been awarded the certified fraud examiner credential by the Association of Certified Fraud Examiners (ACFE).

Dali Kranzthor of Meeks International in Tampa was awarded the certified fraud examiner credential by the Association of Certified Fraud Examiners (ACFE).

Steve Kuiper of Business Navigator, LLC in Lake Mary has been appointed director of finance at Kids House of Seminole.

Jennifer R. Marchal of Jennifer R. Marchal Inc. in Lantana has been appointed to the Financial Advisory Board for the City of Lake Worth.

Stuart R. Morris of Morris Law Group in Boca Raton has been named by Florida Super Lawyers magazine as one of the top attorneys in Florida for 2010.

Gary Opper of Levie-Opper, LLC in Fort Lauderdale appeared on Coral Gables TV show “Coral Gables Now” to discuss consumer protection against identity theft.

Jack Pohlman of Wiltshire, Whitley, Richardson & English, PA in Fort Myers has been elected president of Rotary Club of Fort Myers South for 2010-2011.

Michael Rosenberg of Packman, Neuwahl & Rosenberg in Coral Gables served as a co-speaker at the STEP Miami One-day Conference on a topic entitled “Advising the Client Who is a Temporary U.S. Resident.”

William Shulman of Walton & Company, PL in Boca Raton has been appointed by Jose A. Rodriquez, mayor of Boynton Beach, and the Boynton Beach City Commission to serve as a regular member of the City of Boynton Beach Finance Advisory Committee.

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

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 e-mailed to communications@ficpa.org.

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