September/October 2013 - Florida CPA Today | Volume 29, Number 5

F L O R I D A

florida C P A

TODAY

contents SEPTEMBER/OCTOBER 2013

VOLUME 29, NUMBER 5

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

cover story

30 Financial Exploitation of the Elderly

Know the Signs

features 8

The Silver Tsunami Offers Opportunities

10

Social Security Planning Maximizing Benefits for Married Couples

14

Aid and Attendance: Exploring an Under-used Veterans’ Benefit

20

Marketing to Seniors and Referral Sources

24

Professional Referrals Know the Liability Risks

10 departments Chair’s message

7

President’s message

18 News briefs

20 FLORIDA CPA TODAY

5

28 Staff reports 36 On the move 38 Marketplace 42 DOR update www.ficpa.org

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F L O R I D A

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

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

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

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

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

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

For display advertising information, contact the FICPA Marketing Department at (850) 224-2727, Ext. 270. © 2013 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 2013

chair’s M E S S A G E

Finding Opportunity in Landmark Changes

G

reetings! It doesn’t feel like it, but fall was upon us as of Sept. 22. It’s a busy time after a wonderful, yet hardly lazy summer.

Your FICPA has been hard at work, readying for the national history unfolding before us.

Let’s get to it. $790 billion. That was the estimated buying power of the U.S. lesbian, gay, bisexual and transgender (LGBT) population in 2012, according to Witeck Communications.

A Harris Interactive Research analysis benchmarks roughly 6.7 percent – more than 15 million people – self-identify as gay, lesbian or bisexual.

Now comes the Supreme Court’s decision striking down Section Three of the Defense of Marriage Act (DOMA), which denied federal recognition of same-sex marriages.

Complicating matters, the Court left in place DOMA Section Two, allowing states to choose whether or not to recognize samesex marriages performed in other states.

What do these facts have to do with CPAs? Everything. The LGBT population represents opportunity – an influential segment of potential (and current) clients and customers. They also are our coworkers, managing partners, employees and future CPAs. Twenty-two states have legalized gay marriage, and even the Pope asked, “Who am I to judge” as he recognized gay priests.

We are at a transformational point in history.

CPAs want to be the trusted advisors to this group, sorting out questions such as the federal tax implications after the IRS decides how it will define marriage.

FLORIDA CPA TODAY

Ken Strauss, CPA

The FICPA has long recognized the importance of women and young CPAs to our profession, creating special committees to represent each. It’s timely that we focus on the needs of the LBGT communities.

I am putting together an FICPA Gay and Lesbian Task Force. This group will be asked to make recommendations on how the FICPA can: • Develop CPE to educate members about the technical tax and other financial implications unique to LGBT clients and customers • Better-serve the needs and concerns of LGBT FICPA members I can’t close without mentioning the great success of the FICPA Educational Foundation’s (EDF) Ocean Reef Retreat.

Held on Key Largo in July, 236 adults and children joined us at the beach, breaking all previous attendance records and raising about $15,000. Congratulations to all who planned and attended, including EDF president George Gulisano. The Board of Trustees honored George with the George Gulisano Endowment, created in recognition of his dedication to the Foundation and to the Miami Dade Chapter. I also was honored to see many longtime friends and meet new ones at the Chairman’s Reception.

There’s more to come on the LGBT Task Force. I welcome your comments and suggestions. Email me anytime at chair@ ficpa.org. FCT www.ficpa.org

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SEPTEMBER/OCTOBER 2013

president’s M E S S A G E

The Value of Setting Goals – Or Not

R

ecently, I spied an article title by Peter Bregman on the thoughtprovoking concept of not setting goals.1 What? That just couldn’t be. How could the FICPA leadership march down the path of success if we didn’t know exactly where the path was?

Let’s look at activities that can help us better serve our members and give us a stronger presence in the profession.

Membership:

increase the percentage of Florida-licensed CPAs with in-state addresses

I was perplexed, so I plunged into the piece, eagerly anticipating instruction on how to save all those hours of work we put into organizing our attack for each fiscal year. As I read, the author advocated identifying areas of focus, instead of specific goals. Why? Strictly defined goals may be constricting and narrow, limiting greater successes that might be realized. Or employees might limit performance only to those actions that relate to achieving a narrowly defined goal, since this is what they have been told to do. And they may unknowingly do things that aren’t in the best interest of fulfilling the true intent of the goal.

O.K. So how do you strike a balance between being too restrictive and having the team run in all directions, missing the target?

“Identify what you want to spend your time doing,” the author suggested.

Engage in activities that lead to achieving goals year after year, he said.

FLORIDA CPA TODAY

Deborah L. Curry, CPA, CGMA

Education:

provide more online and on-demand CPE products to members

Health care:

create more, and easier access to, health-insurance programs for members Of course, we have to develop some specific actions to ensure we’re moving in the right direction, and team members know what roles to play. But by communicating our broader focus to our staff and members, I hope to encourage activities that spark innovation, broaden collaboration and allow us to be nimble enough to take advantage of opportunities that arise along the way.

So now it’s your turn. Figure out what you want to spend your time doing! FCT Endnote http://blogs.hbr.org/bregman/2012/12/considernot-setting-goals-in.html 1

www.ficpa.org

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The Silver Tsunami Offers Opportunities A

ccording to the American Association of Retired Persons, the first of the baby boomers turned 65 in 2011 – and for the next 18 years, about 8,000 baby boomers will turn 65 each day. In Florida, baby boomers will represent 20 percent of the population by 2020 and 25 percent by 2030, with 5.7 million seniors older than 65.

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SEPTEMBER/OCTOBER 2013

• Aid and Attendance – Exploring an Underused Veteran’s Benefit, by Kevin Pillion, CPA • Marketing to Seniors and Referral Sources, by Tracey Kinker Gebert, CPA • Social Security Planning: Maximizing Benefits for Married Couples, by Mary Forman, CPA

As the boomers reach retirement age and beyond, the opportunity to develop or enhance your elderplanning practice will grow exponentially. Services such as retirement planning; financial projections; social-security maximization; recognizing elderly exploitation; and consulting on health care or longterm care policies are just a few of the potential opportunities. This issue of the Florida CPA today is filled with valuable information, including these articles.

The Elder Planning and Support Services Committee promotes networking among elder-care professionals and provides FICPA members with the education and resources necessary to develop their elder-care practices. The Committee will host its Second Annual Elder Planning and Services Symposium Nov. 7, 2013 in Fort Lauderdale. The Symposium will encompass a full day of CPE specifically related to these objectives.

We hope to see you there. Until then, we hope you find this issue of the Florida CPA Today informative and helpful. FCT

• Financial Exploitation of the Elderly: Know the Signs, by Rick LeNoble, CPA

Michael Ray, CPA Chair, Elder Planning and Support Services Committee

FLORIDA CPA TODAY

www.ficpa.org

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Social Security Planning

Maximizing Benefits for Married Couples

By Mary K. Foreman, CPA

A

ccording to the Social Security Administration, almost 74 percent of all retired workers receive reduced benefits because they started taking Social Security before their full retirement age.

As a trusted advisor, the CPA is in a unique position to advise clients before they make a costly and irreversible decision about their benefits.

A worker born before 1955 reaches full retirement age (FRA) at age 66 and is entitled to collect 100 percent of his or her primary insurance amount (PIA). However, the monthly Social Security benefit is reduced by 25 percent if the retiree begins taking benefits at age 62. The reduction is permanent. For the rest of the retiree’s life, the benefit will be less (see Table I).

benefits based on 100 percent of the worker’s benefit. So a decision to take a reduced benefit will, in turn, reduce the surviving spouse’s benefit (see Table II).

If an individual delays collecting Social Security past FRA at age 66, benefits will be increased for each month up to age 70. This increase, called the delayed-retirement credit, amounts to 8 percent per year for individuals born after 1942.

Reversing the decision If a retiree begins collecting Social Security and then regrets that decision, he or she can withdraw the application within 12 months of the initial request. The retiree must file Social Security Form 521, “Request for

A married individual will collect benefits based on the greater of one-half of the spouse’s PIA or their own PIA. After the worker’s death, the surviving spouse may claim

Table I: Worker’s Social Security Benefits Paid at Retirement

Withdrawal of Application,” and repay all benefits he or she has received. Only one reversal is allowed during one’s lifetime.

Table II: Spouse’s Benefits

Age of Worker

Retirement Benefit

Age of Spouse

At Age 62

75 percent of PIA

At Age 66

100 percent of PIA

Age 60 or 61 No Benefit

100 percent of PIA reduced for age

At Age 70

100 percent of PIA plus 8 percent annual delayed credits

Age 62 to FRA

100 percent of PIA reduced for age

10 SEPTEMBER/OCTOBER 2013

At Worker’s Retirement

35 percent to 50 percent of PIA

At or Over FRA 50 percent of PIA

At Worker’s Death

Up to 100 percent of PIA

This is particularly helpful if a person filed for benefits and then decided to return to work. A worker who has not reached FRA will be penalized $1 for each $2 earned in excess of the annual limit, which is $15,120 for 2013. Rather than paying the penalty, it may be better to pay back the benefits and continue accruing a larger benefit.

Couples may file and suspend, use restricted application Deciding when to begin taking Social Security is a personal and complex decision. Both spouses don’t have to begin taking benefits at the same age, but a combined strategy will result in the benefits that are right for them. They’ll want to consider their respective life expectancies; whether either of them wants to continue employment; and whether they have other income to meet their needs if they choose to delay benefits.

A married couple may use the File and Suspend technique, which allows the lower-earning spouse to receive spousal benefits while the higherearning spouse simultaneously accumulates a higher Social Security benefit. For purposes of this illustration, assume the wife did not earn a PIA greater than 50 percent of her husband’s.

When the working spouse reaches FRA, he files for Social Security and then immediately requests to suspend his benefits.

The applicant may make the request orally or in writing, but he should be certain the agent understands this strategy. The non-working spouse, who must be at least age 62, then is eligible to collect Social Security ➡ FLORIDA CPA TODAY

Want to learn more about social security and earn CPE credit? Check out the FICPA’s two-hour OnDemand course, “Social Security: Overview and Strategies,” by Terry Seaton, CPA, PFS, CFP. For details, visit www.ficpa.org/SSOOL.

www.ficpa.org

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based on her husband’s PIA. When the

“Almost 74

husband retires at 70, he will receive 132

percent of all

of delayed credits between 66 and 70. Also, if

retired workers

percent of his PIA because of the accumulation he predeceases his spouse, she will collect a larger survivor benefit.

receive reduced benefits

If both spouses had substantial earnings, a similar strategy allows the delayed credits to

because they

build when one spouse retires before the other

started taking

at his FRA of 66. He applies for Social Security

spouse. Assume the husband decides to retire

Social Security

based on his spouse’s work record instead of his

before their full

He will collect 50 percent of the wife’s PIA

retirement age.”

own. This is known as a Restricted Application. while continuing to earn delayed credits on his account. If she continues to work until she is 70, she will draw 132 percent of her PIA.

12 SEPTEMBER/OCTOBER 2013

Married couples may use a multitude of strategies in deciding when to begin drawing benefits. So how does a CPA present a coherent analysis of their options? There are several software programs that will perform the calculations, compare the alternatives and provide analysis to explain the concepts.

A little planning could increase your clients’ benefits by tens of thousands during their lifetimes. FCT Mary K. Foreman is a CPA in Bradenton. She is a member of the FICPA Elder Planning and Support Services Committee, an officer of the Estate Planning Council of Manatee County and an officer of the Manatee Aging Network.

She also serves on the board of the West Central Florida Area Agency on Aging.

Aid and Attendance: Exploring an Under-used Veterans’ Benefit

By Kevin Pillion, CPA

D

o you know about the special Veterans Affairs (VA) pension benefit that pays up to $32,985 of tax-free income annually to senior wartime veterans and their spouses? 1 If not, you’re not alone. Commonly referred to as Aid and Attendance, the proper name of this VA benefit is the Improved Pension with an Aid and Attendance Allowance. Sadly, only about one in four eligible veterans receive Aid and Attendance.2

Eligibility hinges on three criteria Only wartime veterans and their eligible family members are entitled to receive Aid and Attendance. An ideal candidate is a WWII or Korean War veteran who lives at home or in an assisted-living facility and suffers from a chronic illness, such as Parkinson’s disease or dementia.

Widows, widowers and dependent children of wartime veterans also may qualify for Aid and Attendance, although they would be entitled to a lesser benefit amount.

Aid and Attendance is special for three reasons. First, it’s one of only two VA benefit programs that help veterans and their spouses age at home as they journey through the elder-care continuum. Second, it’s a tax-free monetary benefit that is paid directly to wartime veterans and their surviving spouses, whether they live at home, in an assisted living facility, or in a nursing home. Third, it’s not dependent on the veteran having a service-connected disability.

These criteria must be met to qualify for Aid and Attendance:4 1. Military service. The veteran must have (i) received a discharge from service that is other than dishonorable and (ii) served at least 90 days of active duty, including at least one day during a wartime period.

2. Age/disability. The veteran or surviving spouse must be (i) 65 or older, or permanently and totally disabled and (ii) blind or nearly so; bedridden; living in a nursing home; Type of Applicant Maximum Annual Maximum Monthly physically or mentally incapacitated and for Aid and Attendance Pension Benefit Check Amount 3 require regular care or assistance; or need Amount (column 2 amount help with two or more of the six activities

divided by 12) of daily living (i.e., bathing, dressing, Two veterans married to each other $32,985 $2,749 transferring from bed or chair, walking, Married veteran or single veteran eating and toilet use). with a dependent child $24,652 $2,054 This chart shows Aid and Attendance pension amounts.3

Single veteran

$20,795

$1,732

Surviving spouse of veteran

$13,362

$1,113

14 SEPTEMBER/OCTOBER 2013

3. Financial need. The veteran or surviving spouse must have limited income and net worth. The income must be less than the

amount set by Congress. Generally, the veteran and surviving spouse will qualify for the maximum pension amount if their total unreimbursed medical expenses exceed their gross income. The cost of an assisted-living facility may be deducted as a medical expense in certain situations, making the income test easier to satisfy.

Regarding net worth, the veteran (and his or her spouse, if married) or surviving spouse generally must have less than $80,000 of countable assets.

Although a home and vehicle are not countable, most all other assets are, including IRAs. This $80,000 benchmark significantly declines as the veteran or surviving spouse ages, because life expectancy is considered. For example, a 92year old veteran’s net worth likely will need to be between $14,000 and $29,000 to qualify for Aid and Attendance.

Applying for benefits and related considerations To apply, veterans and their surviving spouses must complete and file VA Form 21-527EZ or Form 21-534, respectively, with their VA regional office. The date the VA receives the application is important, because that date controls when the VA benefit will commence. The VA currently is backlogged with applications and is taking up to 16 months to approve them.

CPAs should be aware of four noteworthy matters involving Aid and Attendance. First, the law likely will change, making it tougher to get Aid and Attendance. Sens. Ron Wyden (DOR) and Richard Burr (R-NC) recently introduced Senate Bill 748, known as the Veterans Pension Protection Act, in response to a 2012 Government Accountability Office Report that recommended strengthening the VA pension program. Congressman Tom Rooney (R-FL) has introduced a similar bill. Both bills call for establishing a threeyear look back and creating a penalty period for assets transferred within the three-year period.

Second, the American Association of Retired Persons has warned about scams by “veteran advocate” advisors presenting seminars on Aid and Attendance.5 These unscrupulous advisors pitch financial products and earn lucrative commissions under the guise of helping veterans and their widows or widowers qualify for VA benefits. Unfortunately, these financial products often cause serious problems when veterans and their widows or widowers need to liquidate the investment or go into a nursing home. ➡ FLORIDA CPA TODAY

www.ficpa.org

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Third, repositioning assets to qualify for Aid and Attendance can jeopardize Medicaid qualification for veterans and their surviving spouses if they must go into a nursing home. Medicaid requires applicants to disclose what they have done with their assets during the prior five years, known as the look-back period.6 Any non-exempt transfer would preclude veterans and their surviving spouses from qualifying for Medicaid benefits for a period of time.

Last, only attorneys, claims agents or Veteran Service Organization representatives who are VA-accredited are permitted to assist veterans with their application for Aid and Attendance. To verify if an individual is accredited, visit www.va.gov/ogc/apps/accreditation. CPAs may want to recommend that their veteran clients talk with an accredited individual before filing an Aid and Allowance application. FCT Kevin Pillion, CPA is a VA-accredited attorney and the founder of Life Planning Law Firm, PA in Sarasota. He helps seniors find, get and pay for long-term care. Pillion is a past chair of the FIPCA’s CPA Elder Planning & Support

16 SEPTEMBER/OCTOBER 2013

Services Committee. He also is a member of the Veterans Benefit Committee of The Florida Bar and the American Academy of Estate Planning Attorneys.

Endnotes The Veterans’ Benefit Act, 38 U.S.C. §1521 (2012 & Supp. 2013).

1

Leslie Tamura, More veterans and spouses could gain from Aid and Attendance pension benefit, WASH. POST, Apr. 18, 2011, http:// articles.washingtonpost.com/2011-04-18/national/35231125_1_aidand-attendance-wartime-veterans-veterans-and-spouses. Of the 9.6 million veterans who are age 65 or older and living, less than 300,546 are receiving Aid and Attendance. National Center for Veterans Analysis and Statistics, VA Benefits and Health Care Utilization (April 17, 2013), http://va.gov/vetdata/docs/Quickfacts/Spring_13_sharepoint.pdf.

2

U.S. Dept. of Veterans Affairs, Veterans Pension Rate Table (Dec. 1, 2012), available at http://benefits.va.gov/PENSIONANDFIDUCIARY/ pension/rates_veteran_pen12.asp.

3

There are some exceptions to these tests. See Dept. of Veterans Affairs, 38 C.F.R. § 3.12–.16 (2013).

4

See Thom Stoddert, Scam Targets Washington Veterans, AARP (Mar. 30, 2012), http://aarp.org/money/scams-fraud/info-03-2012/scamtargets-vets-wa1889.html.

5

Actually, in Florida, the five-year look-back period is being phased in through January 2015. Beginning in January 2103, the look-back period is 37 months, and for each month thereafter, one additional month is added, until the 60-month mark is reached in January 2015.

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NEWS

briefs

Florida CPA Today wins FMA awards

FPRA Awards FICPA/DBPR for Impostulators Campaign

Florida CPA Today (FCT) recently received three awards in the Florida Magazine Association’s prestigious Charlie Awards competition.

The magazine competed against other publications in the Trade/Technical and Association categories.

The Florida Public Relations Association recently presented the FICPA and the Florida Department of Business and Professional Regulation (DBPR) with its 2013 Golden Image Award, Judges Award and Award of Distinction for the Impostulators – Uncovering Unlicensed Activity awareness campaign.

The campaign included a student video contest to get the word out about illegal use of the title certified

The awards included a Charlie award (first place) for Best Service Feature, for Steve Platau’s article entitled “Simple? Maybe not. Use caution with requests for third-party communications.”

It appeared in the May/June 2012 issue. The Silver Award (second place) was for Best

Table of Contents, which part of the FCT redesign that was launched with the July/August 2012 issue. And the Bronze Award, for Best Special Theme or Show Issue, was for the March/April 2012 26 Under 36 issue. The FICPA thanks and congratulates everyone who was involved in the production of these winning pieces. FCT

Alfonso appointed to Early Learning Coalition Aguerrebere, Sueiro & Torres, PL. He was appointed chair of the board for a term beginning July 25, 2013 and ending April 30, 2017.

Adrian Alfonso, PerezAbreu, Aguerrebere, Sueiro & Torres, PL Gov. Rick Scott recently announced the appointment of FICPA member Adrian Alfonso to the Early Learning Coalition of Miami-Dade/Monroe.

Alfonso is a tax partner with Perez-Abreu, 18 SEPTEMBER/OCTOBER 2013

The Early Learning Coalition is a non-profit organization dedicated to ensuring early care and education for children. Through a variety of affordable and innovative early education and voluntary prekindergarten programs, the Coalition serves more than 50,000 children and their families. FCT

public accountant, and about the importance of using a licensed CPA. The FICPA thanks and congratulates everyone who was involved in the production of the winning campaign. FCT

The ImPostulators Uncovering Unlicensed Activity

FICPA members’ companies make HispanicBusiness.com rankings For the first time in the history of the HispanicBusiness 500, five Hispanic-owned companies generated more than $1 billion in revenue last year, according to new rankings from HispanicBusiness. com. Here are FICPA members who work for companies that made the rankings. To read the CPA Practice Advisor article, visit www. cpapracticeadvisor.com/news/10975299.

BrightStar Oscar Fumagali MasTec Danielle Cardoso Kathryn Gargula Lori Hoetzlein David Karian Timothy Love Steffany Lafosse-Marin Helen Monge Christine Moore Javier Perez Ryan Scott Nicole Toro The Related Group Robert Dorfman Jeffery de los Hoyos FCT

From FICPA staff reports

FICPA congratulates sports-impassioned members FICPA member Michael Ray recently participated in the Register’s Annual Great Bicycle Ride Across Iowa (RAGBRAI), an annual seven-day event. The RAGBRAI route, which averages 468 miles, begins along Iowa’s western border on the Missouri River and ends along the eastern border on the Mississippi River. Heading into its 41st year, the ride is the oldest, largest and longest bicycle-touring event in the world. Ray chairs the Elder Planning and Support Services Committee and is CFO at John Knox Village of Central Florida Inc.

Jim Luffman qualified for the National Senior Games during the Florida Senior Games in December 2012.

FICPA member Jim Luffman, a CPA with CPS Advisors in Lakeland, recently participated in the 2013 National Senior Games in Cleveland. Luffman competed in the 50- and 100-yard breaststroke events. To read the Lakeland Ledger.com article, visit www.theledger.com and search for Lakeland Accountant Ready for National Senior Games. To learn more about the 2013 National Senior Games, visit www.nsga.com/2013-nationalsenior-games.aspx. FCT

PCC proposes changes to consolidation of variable interest entities The proposed GAAP alternative, PCC Issue No. 13-02, Applying Variable Interest Entity Guidance to Common Control Leasing Arrangements (formerly FIN 46(R) and FAS 167), would exempt private companies from applying the consolidation guidance for variable interest entities under common control leasing arrangements. A variable interest entity is an organization in which consolidation is not based on a majority of voting rights. The disclosures to be provided under the alternative would better align the information that lenders and other users of private-company financial statements typically use in assessing the cash flows of a reporting entity. FCT To read the FASB article, visit www.fasb. org and click on News & Media, then on News Releases Archive. Then click on the third entry.

FLORIDA CPA TODAY

Michael Ray executes the traditional front tire dip in the Mississippi River.

FICPA member-firms honored as best work places The Tampa Bay Business Journal recently recognized six FICPA-member firms in its Top 100 Places to Work in Tampa Bay competition. The Journal recognized PwC (No. 8) and Raymond James Financial (No. 18) in the large category; Hill Ward Henderson (No. 17) in the midsize category; and Warren Averett Pender Newkirk (No. 7); Gregory Sharer & Stuart, PA (No. 19); and CBIZ Kirkland Russ Murphy & Tapp (No. 33) in the small category. To see the complete list, visit www.tampabay.com/topics/specials/2013-top-tampa-bayworkplaces.page.

Florida Trend has named nine FICPA member-firms among its Florida’s Best Companies to Work For. The fifth annual list includes 100 small, medium and large companies throughout the state.

Best Large Companies (250 or more employees) 13) Kaufman Rossin Group 27) Warren Averett

Midsized companies (50 to 249 employees) 12) Cross, Fernandez & Riley 14) Berkowitz Pollack Brant 15) Gregory, Sharer & Stuart CPAs 33) Averett Warmus Durkee, CPAs Small companies (15 to 49 employees) 7) Markham Norton Mosteller Wright & Co. 8) Ennis, Pellum & Associates 30) CS&L CPAs FCT www.ficpa.org

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Marketing to Seniors and Referral Sources

By Tracey Kinker Gebert, CPA

T

he 2010 U.S. Census Bureau recently recorded the greatest number and proportion of people age 65 and older in all of decennial census history: 40.3 million, or 13 percent of the total population. The “Boomer Generation”-effect will continue for decades.1

How can CPAs, the most trusted advisors to our clients, help them attain financial and non-financial security? Who can they trust? No one, of course, has a patent on catering to the elderly, and there are plenty of top-notch CPA/financial-planning firms that address this market. The idea is to provide seniors and their families with a safety net. CPAs can plant this seed by talking openly with their clients about how they’d like to live their lives without outliving their assets.

An elder-planning department in a CPA firm can benefit clients’ family members who have time constraints, but want to help a loved one maximize and maintain his or her independence. Family members look to relieve the pressure of managing their loved ones’ financial affairs, or to help them make the most of their resources and financial choices.

As professionals, we can help our clients by devising a program that not only helps relieve relatives of the burden of managing financial affairs, but monitors clients’ routine activities and well-being. This offers peace of mind to those who don’t live close to their elderly family members.

Helping elderly clients make the best financial decisions in their retirement years may encompass everything from guardianship reporting to routine financial, accounting and tax transactions. An elder-planning practice or department can act as a safety net for seniors and their families. This allows clients to integrate custom services into every aspect of their lives, meeting their initial needs and modifying the plan as their needs change. ➡

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FLORIDA CPA TODAY

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A firm can provide periodic reports to family members regarding their loved one’s financial activities; coordinate home inspections and home maintenance; and create indepth weather-protection plans. Its advisors also can help coordinate with geriatric care managers; home health care providers; investment advisors; attorneys; and other professionals to ensure clients are receiving the proper protection and care.

“Marketing to seniors comes back to the basics – providing great service with passion, compassion and an understanding of their unique dynamics.”

The prime market for elder-care services is people who don’t need or can’t afford full trust services, but who can afford to pay for professional help, or whose children are willing to cover the cost.

CPAs who have niche practices of working with the elderly often are asked how they market to and attract senior clients.

Running a successful business requires using many tried and true marketing techniques.

However, it comes back to the basics – providing great service with passion, compassion and an understanding of seniors’ unique dynamics in aging.

This is true whether CPAs are marketing to their current client base, their referral sources or the community.

We have commoditized our profession. Client portals, email and electronic delivery all are great tools – but we forget to talk to our clients face to face. To truly understand what’s going on in their lives, we must sit across the table from them.

Senior clients are very aware of the way you treat them.

That alone will determine their loyalty to you. CPAs are in a great position to grow their practices based on their current business. People are living longer, and our current clients are our greatest referral source.

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Marketing to Clients 1. Meet with your clients at least once a year. Knowing the dynamics of their personal lives can help you determine what services they may need. Consider working with other key people in your firm, using a tag-team approach, to ensure the right person is working with the client. Clients may need help dealing with special-needs family members; pending divorces; financial problems; or long-term care issues.

2. Firm newsletters and promotional materials, either electronic or printed, identifying the services the firm offers that are unique to your senior clients including services such as bill paying; guardianship accounting and reporting; trust and estates; ; longterm care insurance; Medicare and Medicaid; Veterans Benefits – services to help clients to become proactive instead of reactive.

3. Invite senior clients to attend in-house seminars covering various issues related to aging, and the planning with which you can help them.

4. Tell clients how you can help them establish and maintain their estate plans, such as charitable giving and family foundations, and the proper professional with whom they should work.

5. Promote your firm by forming strategic alliances with companies that provide services to the elderly.

Offer to speak at their forums about how you, as a CPA, can assist them.

Marketing to Referral Sources 1. Approach people in your network who have elderly clients and make them aware of your services. Ask them to identify potential clients, such as elderlaw attorneys; financial planners and advisors; and corporate trust officers.

2. Speak to local chapters of professional groups.

This is a great way to make professional contacts and demonstrate your knowledge about elder-care issues.

3. Use web-based site marketing. It allows you to reach your target market more effectively than other forms of advertising.

4. Feature elder-planning issues prominently in firm newsletters. If your firm doesn’t have a newsletter, consider developing one for this practice area.

5. Use brochures as a marketing tool. Mail them to existing clients and give them to potential clients and referral sources.

6. Advertise locally. This may be an effective way to raise awareness about elder-planning services.

7. Access the FICPA’s brochures for practitioners to use in their marketing plans. The FICPA Elder Planning & Support Services Committee developed them, and they’re available at www.ficpa.org/ElderBrochure.

8. Use the AICPA’s marketing kit for practitioners. It includes brochures, advertisements and direct-mail pieces. It’s not a do-it-yourself kit. Use a professional printer for the best results.

9. Issue press releases, sponsor community events or offer free tax advice at your local senior center. This increases the public’s recognition of your name and awareness about your firm.

FLORIDA CPA TODAY

10. Write columns on financial matters of interest to seniors for your local newspaper. This establishes name recognition and helps develop your reputation as an expert in this niche area. FCT Tracey Kinker Gebert, CPA is the founder and owner of Tracey J. Kinker CPA PA and has more than 30 years of experience in public accounting, providing tax, smallbusiness consulting and elder-planning services. She is a past chair of the FICPA CPA Elder Planning and Support Services Committee and a member of the FICPA Estate & Financial Planning Committee. She also serves as a professional advisor for the Community Foundation of Broward and as a board member of Rainy Day Disabilities.

Kinker Gebert was a featured author in the book OMG My Parents Are Getting Old! by Faye Levow.

Endnotes “The Older Population: 2010,” 2010 Census Briefs (Publication C2010BR-09). By Carrie A. Werner, U.S. Dept. of Commerce, Economics and Statistics Administration, U.S. Census Bureau. Issued November 2011.

2 AICPA Eldercare Task Force Manual, ©2001.

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23

Professional Referrals

Know the Liability Risks

By CNA Accountants Professional Liability Risk Control

24 SEPTEMBER/OCTOBER 2013

This is the first of a three-part series of articles from CNA, provider of the FICPA’s professional-liability insurance.

C

lients often ask CPAs for referrals to other professional-service providers.

However, such referrals carry professional-liability risk.

CPAs may not recognize or address clients’ expectations that they have screened these professionals or will supervise their activities. And CPAs who participate in discussions between clients and third-party professionals may fail to define their role in the discussion, leading to miscommunication and “expectation gaps.”

This case illustrates the risks associated with mismanaging professional referrals.

A sole practitioner provided bookkeeping and tax-return preparation services for several years to a successful physician. The CPA noticed that the physician had been making large payments for life-insurance premiums and other investments. The physician asked the CPA to recommend a financial planner. The CPA recommended an acquaintance and suggested that he, the client and the financial planner meet to review the client’s insurance needs and estate plan. During the meeting, the financial planner introduced the client to an investment advisor who was promoting his investments through the financial planner’s business.

The client later made substantial investments in companies the investment advisor owned and operated.

Subsequently, the CPA obtained the investment advisor’s personal financial statement and provided a copy to the client. The personal financial statement indicated a net worth of more than $20 million.

The investments later proved to be worthless because the underlying companies did not exist. The investment advisor was convicted of defrauding the client and several other investors.

The client was unable to recover her losses from the uninsured investment advisor, who later was found to be FLORIDA CPA TODAY

unregistered with the state securities division. She filed a claim against the financial planner, whom the financial advisor also had duped, and received a partial recovery.

Finally, the client sued the CPA, alleging that she relied on his representations about the investment advisor’s background, experience and financial stability.

The CPA denied making any representations about the investment advisor’s character. The CPA noted that the advisor’s personal financial statement included a warning indicating substantially all the disclosures required under GAAP had been omitted, and that the statement should not be used for any purpose requiring independently verified information.

The client asserted that she asked the CPA to screen the investment advisor before making the investments and disputed the timing of receiving the personal financial statement. The matter was settled before trial. Defense counsel determined it would be difficult to defend the claim because the CPA 1) recommended the financial planner to the client; 2) participated in investment discussions with the client, the financial planner and the investment advisor; and 3) requested a copy of the investment advisor’s personal financial statement and provided it to the client.

In this case, the CPA attempted to help a bookkeeping and tax-return preparation services client who needed personal financial services. The CPA failed to recognize the risks associated with professional referrals and assumed a fiduciary duty to the client.

How can CPAs in similar situations respond to a client’s request for referrals and manage the related risks?

1. When they identify the need for professional advice beyond their experience and capability, CPAs should recommend that clients engage other professional advisors with expertise in the requested area. ➡ www.ficpa.org

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Executive Summary • Providing clients with referrals to other professional advisors, such as investment advisors or attorneys, can present unintended risk.

• Carefully managing interactions with a client’s other professional advisors is important, especially if the CPA participates in meetings with these advisors.

• Managing client expectations regarding referrals to, and interactions with, other professional advisors. This helps minimize the “expectation gap” and professional-liability risk arising from services these advisors render to the CPAs’ clients.

• Section 473.3205, Florida Statutes and Rule 503 of the AICPA Code of Professional Conduct requires CPAs who are paid (or expect to be paid per Rule 503) a permissible commission or referral fee to disclose this to the client.

2. Before providing the names of other professionals to clients, perform some high-level diligence to investigate their background, training, experience, reputation, professional credentials and licensing.

Provide referrals to individual service providers, rather than entities. Provide clients with several referrals from which to select, rather than recommending only one.

3. Follow up with a written communication to the client, alphabetically listing the recommended professional advisors. Inform the client that, although you’ve provided the names of several professionals, the client must evaluate, select and engage them and that you won’t supervise their activities.

4. Tell clients to seek independent professional financial planning, investment and tax advice before making investment decisions. If you provide tax advice related to prospective investments, document the scope of the service and additional fees in writing; delineate the limits of the advice; define the client’s responsibilities; and reference the application of the terms and conditions 1

included in the previously issued engagement letter. If there is a significant change in the scope of client services, execute a separate engagement letter.

5. Section 473.3205, Florida Statutes (F.S.) and Rule 503 of the AICPA Code of Professional Conduct address CPAs’ commissions and referral fees. CPAs are prohibited from receiving a commission or fee for referring a product or service to a client for whom certain services, such as audits or reviews of financial statements, are performed.1 If such fees are permitted, CPAs are required to disclose them to the client. Section 473.3205, F.S. requires this disclosure to be written.

CPAs provide an important service to clients by helping identify other qualified professionals. Although CPAs should be responsive to client-service needs, they should avoid “engagement creep” by inadvertently providing services beyond the scope of the engagement letter and assuming an unintended fiduciary duty.

CPAs also should use caution before agreeing to participate in meetings between clients and other professionals. Clearly inform the client, orally and in writing, of the purpose of participation (to obtain information needed to provide the client with related tax advice, for example). Finally, consistently inform the client that you will not provide financial planning or investment advice, and remind the client of his or her responsibility to supervise other advisors. FCT This article provides information, rather than advice or opinion. It is accurate to the best of the authors’ knowledge as of the article date. This article should not be viewed as a substitute for recommendations of a retained professional.

Such consultation is recommended in applying this material in any particular factual situations.

Examples are for illustrative purposes only and not intended to establish any standards of care, serve as legal advice, or acknowledge any given factual situation is covered under any CNA insurance policy. The relevant insurance policy provides actual terms, coverages, amounts, conditions and exclusions for an insured.

All CNA products and services may not be available in all states and may be subject to change without notice.

See Rule 503 of the AICPA Code of Professional Conduct and sections 473.302(8)(a) and (c), Florida Statutes, for specific services.

26 SEPTEMBER/OCTOBER 2013

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STAFF

reports

From FICPA staff reports

Educational Foundation

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

Need a Plan? We Have One for You!

I

t’s likely that at some point in your life, someone gave you a helping hand. Whether it was encouragement, tutoring or financial aid, you might not be where you are today otherwise.

Now you have a chance to help change someone’s life by becoming a member of the FICPA Educational Foundation.

We know there’s no one-sizefits-all giving plan, so we’ve developed 20 donation options.

We’ve also created some fun, interactive programs for those who are looking for alternative ways to support our efforts.

Several annual networking events offer sponsorship opportunities, including a South Florida race, golf tournament and a weekend retreat in Key Largo!

Established in 1959, the Foundation works to ensure the

continued integrity and success of the accounting profession in Florida. Through FICPA members’ generous donations, the Foundation provides scholarships and other contributions to Florida’s university students.

Please consider donating and joining the Foundation. For more information, visit www.ficpa.org/ EdFoundation or contact us at (800) 342-3197, (850) 224-2727 or edfound@ficpa.org. We’re available anytime to discuss a plan that’s right for you. FCT The FICPA Educational Foundation Inc. is recognized as tax exempt under Section 501(c)(3) of the Internal Revenue Code.

Contributions are tax deductible to 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.

For more than 50 years, the Foundation has done amazing work promoting the future of the CPA profession. Since its inception, the Foundation has provided more than $3 million in scholarships to more than 2,000 Florida accounting students. Please help us keep supporting them by donating to or joining the Foundation.

Here are some of our 20 donation options.

• Firm Giving • Personal Giving • Named Endowment • Bequest • Retirement Plan Asset • Life Insurance Policy • Charitable Gift Annuity • Charitable Remainder Trust

28 SEPTEMBER/OCTOBER 2013

During a Tallahassee Chapter meeting, FICPA President/CEO Deborah Curry, CPA, CGMA presents a Foundation scholarship to Richard Jordan of Florida A&M University.

• Charitable Lead Trust • 1040K • Suncoast Scramble Golf Tournament • Ocean Reef Family Retreat • Ocean Reef Golf Tournament • $500 Raffle

Foundation Board of Trustees member Jose Valiente presents eight University of South Florida-St. Petersburg students with scholarships during a Suncoast Chapter meeting. Pictured left to right: Jose Valiente, Jennifer Walker, Jenna Paul, Chad Mello, Joshua Levinsky, Daniel Boyd, Christopher Bobek, Maria Babajanian and Yasin Angelov.

New Members The FICPA happily welcomes many new members throughout the year.

To see a list of members who have recently joined, visit the FICPA website at www.ficpa.org/meetnewmembers.

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story

Financial Exploitation Know the Signs

By Rick LeNoble, CPA

A

lthough the number of violent crimes in the U.S. is decreasing, financial crimes against the elderly are increasing, largely owing to an aging population and a greater concentration of wealth among senior citizens.1 A recent MetLife study estimated that financial exploitation cost elders nearly $3 billion in 2010,2 and the 2010 Census indicates that 13 percent of the total population (40.3 million people) is 65 or older.3 Recognition of, and mechanisms for dealing with, elder abuse are many years behind similar strides in child-abuse awareness and protection. According to a senior forum report by the 2005 White House Conference on Aging, only 1 in 100 cases of financial abuse is reported and there are millions of financial abuse victims annually. Experts say most cases go unreported because of embarrassment; confusion about the events that occurred; and fear of alienation from family members, as most abuse occurs at the hands of relatives. Perpetrators – regardless of genealogy, profession, friendship or prior criminal activity – are everywhere.

Our profession faces the ethical quandary of defining the CPA’s role in preventing the exploitation of our clients.

Common exploitation techniques Elderly abuse may be physical, emotional and/ or financial. This article, however, focuses on financial abuse as the other two manifestations are beyond the scope of this discussion.

30 SEPTEMBER/OCTOBER 2013

Financial exploitation is widespread and victims typically experience one or more of these symptoms, making them increasingly vulnerable: • Limited or impaired physical or mental functions • A sense of isolation • Loneliness after the loss of a spouse, significant other or close social contact “Many seniors are losing their lives prematurely as a result of financial abuse,” wrote Detective Joe Rubicek of Coral Springs, author of Financial Abuse of the Elderly. “It is rare, if ever, that an autopsy is performed on someone over 60, opening the door for murder by medication.”

The U.S. Government Accountability Office (GAO) has identified several ways the federal government is, or could be, supporting state and local efforts to combat elder financial exploitation. Mass-marketing scams, for example, are a common abusive activity. The GAO has recommended that the Department of Justice reach out to state and local law enforcement to clarify how they can obtain federal assistance to investigate and prevent interstate or international mass-marketing frauds.

Fraudsters commonly use schemes that involve using undue influence or duress to: • Obtain access to financial accounts or other property as a joint owner • Gain access to credit and ATM cards

of the Elderly • Misuse an appointment pursuant to a durable power of attorney • Convince an elder to transfer ownership of the residence • Influence an elder to access home equity and converting the proceeds • Persuade the elder to change the will or beneficiaries for life insurance, financial or retirement accounts • Misappropriate funds while performing as a guardian or conservator • Steal items in the elder’s home • Forge checks or other financial instruments • Commit identity theft and the associated criminal opportunities Perhaps my most interesting elder-care case began while ➡

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I was completing a 1040 for the daughter of a married couple who are my clients. I could see she was upset, and I asked if I could help.

She said her father’s Parkinson’s disease and dementia were getting bad.

documents. Other signs include the eviction, disconnected utilities or unperformed contractual or prepaid services, such as an unkempt residence when cleaning arrangements have been made.

I asked, “How bad?”

More subtle flags include a lack of amenities when the elder can afford them, or something as obvious as missing property, as well as untreated medical conditions. The latter clearly may point to physical neglect and may lead to discovery of financial exploitation.

“He no longer can carry on his secret 30-year relationship with his mistress,” she said.

Because I had a relationship with the family, I assured her I would help any way I could.

“Perpetrators – regardless of genealogy, profession, friendship or prior criminal activity – are everywhere.”

I spoke to her parents separately, to identify their needs and desires. After several months of negotiating, we hammered out an agreement. There would be no divorce, because he didn’t want his wife of 50 years to lose benefits. He would live with his mistress and his daughter would pay his expenses to the mistress each month.

After paying the woman $4,000 in a twomonth period, the daughter received a call from the couple’s landlord, who said they hadn’t paid their rent from two months earlier.

Because the woman wouldn’t live up to the agreement and the man couldn’t take care of himself, his daughter and wife had to put him in a nursing home. He remained there until he died.

The common “red flags” of exploitation There are several indicators of financial exploitation relating to the elderly. One of these is erratic, atypical, uncharacteristic or inconsistent bank activity, particularly when compared with the elder’s mental or physical capacities and abilities. Property title changes, changes to trusts or wills and other documents and unusual gifts all may be indicators of potential abuse. This is especially true if the elder is confused and/or the documents favor new acquaintances or in-home caregivers. Suspicious credit card activity often is a warning sign.

More difficult to spot and examine are potentially forged or suspicious signatures on

32 SEPTEMBER/OCTOBER 2013

Financial exploitation is known as a “hidden offense.” Because the outside world – truly caring, family and friends of the victim – often is clueless about what is occurring, the abuse may occur for a longer period of time or go uninvestigated altogether. This is exacerbated because the victim may be unaware that his or her assets are being depleted.

Victims may not cooperate if they lack the capacity to remember or explain what happened. They also may be so embarrassed by their own perceived “stupidity” that they just want to forget the entire matter. Even in the few instances when good information is brought to the proper authorities, follow up by our watchdogs – police, judges, guardians and attorneys who actively pursue financial elder abuse – is rare.

An initial impression of financial exploitation may, in fact, be legitimate. Perhaps the price actually was right, and the elder actually paid the fair market value for goods or services. The elder may even have had the capacity and the intent to enter into the transaction. There even are instances where an alleged perpetrator merely made a mistake and lacked any intent to commit a criminal offense.

The CPA’s (and the client’s) opportunity CPAs can attempt to assess whether the elder simply needs help handling normal financial transactions, or if it is likely that financial exploitation has occurred. ➡ Pg. 34

FICPA Governmental Affairs Department | (800) 342-3197 | www.ficpa.org/PACcontribute Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others. The Florida CPA/PAC is register as a corporation with the Florida Division of Corporations and as a Political Committee with the Florida Department of State. www.ficpa.org 33 FLORIDA CPA TODAY

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➡ Continued from Pg. 32 With your client’s help and permission, review his or her checkbook, bank statements and canceled checks. Such a review simply may indicate that the client would benefit from the services of a money manager, or custodial account relationship, to organize and keep track of financial records; establish a budget; write checks and balance his or her checkbook; and properly use benefits.

If there appears to be a case of financial exploitation, it probably is time to enlist an attorney’s assistance.

Consider these resources for professionals: • For information about recognizing elder financial abuse, visit the Consumer Financial Protection Bureau’s website at www. consumerfinance.gov/blog/ recognizing-elder-financial-abuse/ • To confirm the qualifications of individual certified financial planners, visit the Certified Financial Planner Board of Standards website at www.cfp. net/utility/verify-an-individual-scfp-certification-and-background • The Centers for Medicare and Medicaid Services, at www. cms.gov/, provide grants to fund background checks for in-home caregivers who are employees of agencies that provide these services • For more information about elder exploitation, read Detective Joe Rubicek’s book, Disposing of the Elderly for Profit.

34 SEPTEMBER/OCTOBER 2013

“One option might be to include execution and implementation of a durable power of attorney by the elder,” said attorney Sherri Greenblatt of Boca Raton, “so a trusted family member or professional adviser has the legal right and authority to sign on the elder’s behalf.

Alternatively, a co-signatory on the elder’s accounts may reduce further risk of exploitation.”

The Florida Power of Attorney Act, which became effective on Oct. 1, 2011, added major protections for individuals. An agent acting pursuant to a durable power of attorney must act in the principal’s best interests and may not act contrary to the principal’s reasonable expectations. An agent may do no more than that which has been specifically delegated. To be effective, the

delegation of certain authority must be separately signed or initialed. The law also establishes personal liability to the agent for violations.

Establishing a trust, with a third-party trustee or co-trustee to help protect against exploitation, also is a feasible solution. This would allow an “extra set of eyes” to keep watch over the elder’s assets. If there are more serious concerns about the elder’s legal capacity, guardianship proceedings should be considered, so the court also will be involved in efforts to protect the elder client.

Greenblatt, certified by the Florida Bar in Elder Law, is a strong advocate of “guardianship avoidance.”

“If professionals work as a team with the client and his or her family (if that is the client’s wish), they can develop a plan to take care of the individual’s needs without a guardianship,” he said.

That team should include a CPA; an attorney; a financial advisor; and, perhaps, a geriatric care manager, among others. The CPA’s opportunity is to provide additional services to a client who needs them – and the client has an opportunity to benefit from enhanced security and well-being. FCT Rick LeNoble, CPA is a sole practitioner in Broward County. He is a former long-term care ombudsman appointed by Gov. Jeb Bush and a past chair of the FICPA Elder Planning and Support Services Committee.

Endnotes Financial Abuse of the Elderly: A Detective’s Case Files of Exploitation Crimes, Joseph Roubicek, 2008.

1

The MetLife Study of Elder Financial Abuse: Crimes of Occasion, Desperation and Predation Against America’s Elders, June 2011.

2

3

U.S. Census Bureau, 2010 Census.

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ON THE

move

Transitions

Tallahassee: Matt Behnke has been named associate athletic director for business and chief financial officer for the Florida State University Department of Athletics.

Bradenton: Mauldin & Jenkins LLC announces the addition of Hazlett, Lewis and Bieter PLLC, Chattanooga, Tenn.

Andrew S. Fierman

Raul A. Garcia

Becky King

Clearwater: CBIZ Kirkland, Russ, Murphy and Tapp (CBIZ KRMT) and Mayer Hoffman McCann PC announce the promotions of Robert Baldree to tax senior manager; Brooks Duncan to tax senior associate; Judy Lewis to tax manager – CBIZ KRMT; and Aimee Varnum to assurance manager – Mayer Hoffman McCann, PC. Jacksonville: The LBA Group announces the promotions of Barbara Finke to senior manager; Jason Lafser to senior tax manager; Greg Lacina and Theresa Zeman to tax managers; and Becky King to senior manager.

Miami: GLSC & Company PLLC announces the promotions of Nicole Alvarez and Peter Reimon to senior associates and Wilbert Santos to senior manager.

Miami: Kaufman, Rossin & Co. announces the promotion of Raul A. Garcia to principal in the firm’s financial services department.

Greg Lacina

36 SEPTEMBER/OCTOBER 2013

Miami: McGladrey LLP welcomes Carlos Bravo as a partner in its assurance practice and Sergio de la Fe Jr. as national consulting goto-market leader.

Sheri Schultz

Vero Beach: Colton & Williams, PA and List & Reamy, Chartered have joined forces. The firm’s new name is Colton, Williams, List & Reamy, LLC.

Who’s News

Theresa Zeman

Miami-Dade: Alberni Caballero & Company LLP announces that Andrew S. Fierman has joined the firm as a partner.

St. Petersburg: Gregory, Sharer & Stuart announces the promotions of Catherine Mary Sullivan and Amy J. Mierzejewski to senior managers and Anthony Scuotto III and Robert Boos to managers. The firm also welcomes Kimberly Martin as a staff accountant.

Averett Warmus Durkee (AWD) again is investing in their local community.

Sixteen of the company’s staff members volunteered in a drive to serve breakfast at the Men’s Pavilion of the Coalition for the Homeless in mid-June. AWD also collected toiletries that were distributed to attendees during the breakfast.

Nicholas Bilotta and Alicia Tuovila of James Moore in Daytona Beach have earned the designation of Certified Public Accountant.

Bernadette Britz-Parker and Michael Sibley of James Moore co-authored an article, “Lean: A Path to Excellent Customer Service,” that was published in the June 2013 issue of Government

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

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

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

Finance Review. To read the article, visit www.jmco.com, select the Resources tab, click Articles from the drop-down menu, and select the article. The firm also is pleased to announce that its certified Lean Six Sigma team is blogging about Lean methodology and its application to workflow processes across industries and organizations.

Cecelia Garber of Marcum LLP in Fort Lauderdale has been named one of 25 Influential Business Women by the South Florida Business Journal.

Dixon Hughes Goodman LLP recently donated 559,973 pounds of food to the communities in 11 of the 50 states they serve.

Fiske & Company in Fort Lauderdale recently was honored as one of the South Florida Business Journal’s Top 50 Fastest-growing Companies.

The firm was recognized for its 120 percent revenue growth from 2010 to 2012. Additionally, Alan Fiske and Sheri Schultz were reappointed chairs of CPA Associates International committees.

Markham Norton Mosteller Wright & Company PA in Fort Myers announces that the company has been awarded Gold-level Certification as a Fit Friendly Workplace by the American Heart Association.

O’Connor Davies LLP announces O’Connor Davies Cares: Month of Giving. Throughout June, the firm participated in several events designed to support the community in which they live and work.

Mike Pender of Cavanaugh & Co., LLP in Sarasota recently received one of Leadership Florida’s highest statewide awards – the 2013 Distinguished Member Award – during the organization’s 31st Annual Conference at Walt Disney World.

Howard D. Rosen of Donlevy-Rosen & Rosen in Coral Gables recently presented “Drafting the Asset

Protection Trust Agreement” and “Estate Freeze Planning with Offshore Trusts” at the Annual Meeting and Education Conference of the American Association of AttorneyCertified Public Accountants. Rosen also co-authored “A Review and Critique of the Asset Protection Aspects of the 2013 Ohio Legacy Trust Act,” published by Bloomberg BNA in its Tax Management Estates, Gifts and Trusts Journal, July-August 2013.

Linda Trugman of Trugman Valuation Associates Inc. in Plantation has been elected as the incoming international secretary/treasurer of the American Society of Appraisers.

John VanDuzer and Natalie Claggett of James Moore, in partnership with Coldwell Banker M.M. Parrish Realtors, delivered “Top 10 Real Estate Headlines that Didn’t Make the News” via podcast. FCT

Craig R. Hersch of Sheppard, Brett, Stewart, Hersch, Kinsey & Hill, PA in Fort Myers was named to the 2013 Florida Super Lawyers listing.

Hill, Barth & King LLC announces their new website – www.hbkcpa.com.

C.J. “Kip” Jacoby of Morgan, Jacoby, Thurn, Boyle & Associates, PA in Vero Beach has been elected to chair the Board of Governors for United Way of Florida.

Kerkering, Barberio & Co. announces that the firm has been selected as one of the Best Public Accounting Firms for Women by the 2013 Accounting MOVE Project.

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MARKET

place

Positions available

Boca Raton firm specializing in tax, write up & business valuation seeks Florida CPA/ABV w/ own book to join for eventual ownership. To apply contact bocacpas@gmail.com.

Ownership opportunity – Central Florida firm with revenue of $1.5 million seeking a talented individual to join our succession team. Ideal candidates will have an entrepreneurial spirit, along with strong client management, tax, accounting and businessconsulting skills. This is an outstanding opportunity for the right person. Replies will be held in strict confidence. Reply to reply@ficpa.org and reference file number R PA 09 10 13.

PRIME Education, 20-yr privately held in S. Florida seeks FT controller, CPA, for forecasting, reporting, analysis, contract budget development/ reconciliation, oversee HR & participate on the leadership team for short- and long-term strategic planning. Able to multitask & work in a small business environment w/25 motivated professionals. Diverse AR portfolio includes government contracts, commercial grants, health care institutions & others. Knowledge of revenue recognition, invoicing, rate-setting a plus. Fair market salary, benefits & friendly, respectful atmosphere.

Email resume to support@ primeinc.org.

Established W. Orlando CPA firm specializing in corporate CFO consulting & tax work has multiple CPA positions open including tax preparers, CFO consultants & rainmakers. Email resume including salary history & requirements to hr@profitcoach. com.

Tax manager/supervisor – James W. Walker, PA in Naples, a small, growing CPA firm w/a diverse tax, auditing & accounting practice, is looking for an individual who has previous mgmt, tax & communication skills. The qualified individual will be responsible for the preparation & review of bookkeeping services, corporate, partnership, LLCs, individual, trust & estates, gift tax & nonprofit tax returns. The qualified individual will supervise & review staff in the preparation of year-end bookkeeping, compilations, reviews & preparation of income tax returns; assist clients & staff; work directly w/clients & partners as needed; perform tax research; obtain clients for firm; & provide administrative assistance for firm activities as necessary. Auditing background a plus but not a requirement. Email resume to info@jameswalkercpa.com.

Palm Beach Cnty firm looking for an experienced CPA who is ready to assume a leadership role. The ideal candidate will have strong tax & accounting skills, a client service focus & the ability to build the firm’s revenues. If you are ready to take this step forward in your career, reply to reply@ficpa. org & reference G PA 09 10 13.

Experienced staff accountant for Hughes, Snell & Co., PA in Fort Myers – Trust & estate tax exp & CPA license required. Min 5 yrs public practice or trust tax environment. Join us to exp challenging work & advancement opportunities w/competitive salary & benefits. Fax resume to (239) 939-0554 or email to lwing@ hughessnell.com.

Seeking an experienced CPA for Orlando ofc; experienced in preparation of individual & corporate tax returns; tax planning & tax disputes; Quick Books including, set up, data entry & account reconciliation; Florida sales tax issues; & tax audits. Hours are Monday-Friday, 8:30 a.m. to 5 p.m. w/an hour for lunch. Benefits include group health insurance. Compensation TBD. Principals only. No recruiters.

Email your resume & cover letter to jpappas@pappaslaw.com.

Established local CPA firm seeks CPA w/ 2-5 yrs exp in public accounting. Corporate, individual, partnership, estate & trust returns, accounting & F/S exp required.

Competitive salary & benefits w/paid overtime available in a friendly environment. Please email resume to frank@webbcpa.com.

Florida Housing Finance Corporation is recruiting for a Quality Assurance Administrator. This position evaluates the performance of contractors & borrowers under terms of contracts or loan documents. Exp in auditing and/or commercial lending is preferred. Please visit our website at www.floridahousing. org/Employment/ for additional information about, & to apply for, this position.

Top 100 CPA firm seeks audit professionals for W. Florida ofc.

Two to 6 yrs exp in governmental, not-for-profit or financial institutions. Florida CPA license required. We offer competitive salary & benefits. Visit us at www. mjcpa.com to submit resume.

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

38 SEPTEMBER/OCTOBER 2013

Ownership Opportunity – N. Dade CPA firm has a unique opportunity for a CPA w/an established practice to join as an equity owner.

Applicant must have strong client & audit skills to oversee audit & review clients. We can provide tax & accounting support for your existing clients as they are brought in to the practice. Please submit a resume w/recent work exp to NorthDadeCPA@gmail.com.

The Florida Auditor General seeks applicants for auditor, senior auditor & lead senior auditor positions in various locations throughout Florida, including Tallahassee & Key West. Must be Florida CPA or meet Florida educational requirements for CPA licensure. For information regarding position locations, qualifications, compensation & benefits, please call (850) 4879178 or visit www.myflorida.com/ audgen.

Plantation firm desires CPA w/10+ yrs recent public accounting exp; UltraTax, QuickBooks & MS Office a must; flexible 25-hour-aweek schedule; email resume to plantationcpa1@gmail.com.

Leadership opportunity in government audit w/Tampa Bay CPA firm. Ideal candidate will have 8+ yrs in public accounting & be regarded as a subject-matter expert within our government & not-for-profit practice.

Other primary duties include managing staff on engagement deliverables; new client development; & participation in client presentations & proposal development. Send responses to reply@ficpa.org & reference file number T PA 09 10 13.

CPA – tax accountant – Broward Cnty mid-sized CPA firm seeking a tax professional, CPA preferred w/5+ yrs recent public accounting exp; UltraTax, QuickBooks, tech savvy, team player. Excellent salary & benefits. Resumes will be kept strictly confidential & may be emailed to FLAHR6@AOL.COM.

FLORIDA CPA TODAY

Ownership opportunity – Retirement-minded Central Florida sole practitioner w/$550K practice looking for association w/younger but seasoned CPA individual or firm w/shared values & superior client-service track record that would provide transition to long-term, mutually agreed upon withdrawal & buyout. Replies will be held in strict confidence. Reply to reply@ficpa.org & reference file number V PA 09 10 13.

Practice development opportunity – Sr. Accountant/ supervisor/manager; Davidson & Nick CPAs, a Naples CPA firm, is looking to provide a long-term opportunity for a CPA w/at least 4 yrs public accounting exp, w/ an emphasis on tax & accounting & helping add value to our clients & relationships w/them w/their most trusted advisors – the CPAs. If you enjoy the technical challenges of public accounting along w/the opportunities to serve clients & develop your client base, we provide the tools, support & structure for you. Interested candidates reply directly w/cover letter & resume to Rtinel@dncpas. com.

The Forest Country Club, Fort Myers – the CFO, reporting to the GM/COO, maintains all accounting records in accordance w/GAAP & is responsible for development, analysis & interpretation of all financial & operating information.

Please email resume to Scott Bertrand – sbertrand@theforestcc. com.

Office space Miami/Dadeland-area ofc available for lease in CPA’s suite. Furnished ofc, floor-to-ceiling windows, conference room, kitchen, telephone & other ofc equipment, filing cabinets, Internet access included. Free parking. Inquiries please call (305) 598-4478 or email ronweintraubcpa@bellsouth.net or cmf16cpa@aol.com.

Carrollwood CPA firm has ofc space available for CPA. We will consider practitioner w/ small complementary practice or retirement-minded CPA. Please email inquiries to john@ tampacpa.biz.

Successful financial advising organization w/over 1,000 clients currently seeking a young, ambitious & successful CPA to fill an empty ofc space.

Rent is negotiable based on the relationship. Ofc is located on Glades Rd & I-95 for easy access for clients. If interested, please call (561) 314-1800 to schedule an appointment or conference call.

Quality Fort Lauderdale CPA firm seeking CPA w/established or growing practice for ofc sharing w/ eye toward future affiliation. Email inquiries to ajcpapa@aol.com or call Cary at (954) 985-1040.

Practices wanted for purchase or merger Tampa CPA wants to purchase or merge w/a Tampa Bay-area CPA firm in the $300K to $400K range. Reply to (813) 833-3344.

Growing S. Florida CPA firm looking to purchase a practice from a retirement-minded CPA in Dade Cnty. Favorable purchase terms offered w/continuing employment opportunities available. Please contact Jeffrey Taraboulos at info@ksdt-cpa.com or (305) 670-3370. ➡

www.ficpa.org

39

Practices wanted for purchase or merger (continued)

Southwest Broward sole practitioner w/non-audit practice grossing $300,000 seeks association leading to eventual retirement. Reply to hmamdur@ cs.com.

For sale

Successful transitions require experienced, confidential, professional services you can trust.

This is what Akins Professional Brokerage provides. Specializing exclusively in the brokerage of CPA firms, we have no upfront fees.

List your firm w/a professional. Call David Akins, CPA, at (877) 2770272. Visit our website at www.

ProfessionalCPAbroker.com.

40 SEPTEMBER/OCTOBER 2013

Buy-Sell-Merge-Finance your practice w/U.S.A.’s No. 1 Accounting Brokerage Firm. Selling practices in Florida for 30+ yrs.

Cash buyers waiting. Practices available include Martin County $175,000; Naples $200,000; Clearwater $250,000+; Orlando $300,000; Coral Gables $450,000; Bradenton $350,000; TampaZephyrhills area $150,000+. Many others. Contact Erwin Rosenblatt (561) 666-6737 or Leon Faris (800) 729-9031 w/Professional Accounting Sales or visit our website at www.cpasales.com.

Quality small business accounting & tax practice grossing $260,000 available in Tampa Bay area (Clearwater). Owner planning retirement, but can continue working as needed during transition. Respond to reply@ficpa. org and reference file number A FS 09 10 13.

Miscellaneous Interim CFO/controller – PBC preparation; trial-balance cleanup; office emergencies; NFPs a specialty; Tampa Bay area (727) 278-5321; Focus Accounting Solutions, LLC; Focus Accounting Solutions.com.

FLORIDA CPA TODAY

www.ficpa.org

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D O R update

DOR Administers Certified Audit Program

E

stablished by the Florida Legislature in 1998, the Certified Audit Program was created to improve taxpayer compliance. Through the program, taxpayers can hire specifically trained, Department of Revenue (DOR)-approved CPA firms to conduct sales, use and local option tax audits that follow DOR standards and the technical standards of the CPA profession.

During Fiscal Years 2000-2012, firms completed 256 audits. Participation was higher in the early years. Several audits were related entities, or the same entity was audited more than once.

Currently, five or six firms actively participate in the program. In Fiscal Year 2011 five audits were completed, and 10 were completed in Fiscal Year 2012.

For a firm to conduct a certified audit, the person responsible for the engagement must earn the Certified Florida Sales and Use Tax (CFST) designation. To do this, a CPA must complete the Certified Audit Program, pass the Certified Audit Examination and have an active Florida CPA license. Certified audits must be performed as “agreed-upon procedures” subject to the Statements on Standards for Attestation Engagements established by the AICPA Auditing Standards Board.

To conduct certified audits, individuals and firms must meet these requirements.

Individuals must: • Have an active Florida CPA license.

• Attend a mandatory 2.5-day certified audit training (CATR) course. The FICPA provides this course, which covers an overview of

42 SEPTEMBER/OCTOBER 2013

By Scott Chunn, tax law specialist, Certified Audit Program coordinator

sales and use tax law and application; the process for submitting Requests to Participate; and procedures for conducting the audit and documenting results.

• Pass the CATR course exam. There is no time limit for completing the exam.

However, the FICPA requires participants to take and pass the Certified Audit Exam within one year of completing the course.

• Earn or renew (if applicable) the CFST specialty designation from DOR. To maintain certification, Florida CPAs must renew the designation every two years by taking a self-study course on Florida sales and use tax law and administrative procedures, and pass an exam or attend other FICPA/DOR-approved seminars or conferences.

Firms must: • Have a current on-site/system peer review with a Pass Opinion (previously an Unmodified Opinion).

Have a staff member trained on the Florida Multi-tax software (DOR provides software and classroom training at no expense).

• Be a licensed audit firm with the Florida Board of Accountancy. FCT The Certified Audit Program may be a good fit for your practice or your clients’ business needs. For more information, visit www.ficpa. org/certifiedaudit or contact Scott Chunn, DOR Certified Audit Program coordinator, at (850) 7176379, or chunns@dor.state.fl.us.

F L O R I D A

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

Assemble your CPE playlist of up to 25 credit hours and groove to these hot topics: • • • • • • • • • •

Ethics: Protecting the Integrity of Florida CPAs Tax: Best Guesses for 2014 Identity Theft – What has the IRS Done?

Healthcare, Medicare, Why You Should Care 10 Steps to Take Now in Light of the New Estate Tax Legislation FASB Update – Including Private Company Council Preparing for Peer Review Engagement Letters – A First Line of Defense Fiduciary Accounting, 1041 Reporting The ABCs (and D) of Medicare

…and many more!

Register Now to Rock the Show in September! www.ficpa.org/AnnualShowRegistration