Knowledge Management Systems
Technology Enabled Approach
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Delivery and Self-Assessment Platform
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Management Accounting Credential
Blue-Ribbon Panel Recommendations CPA Horizons 2025 Getting Noticed in Today’s Digital Age Deliver Value. Respect the Public Interest.® incpas.org
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Members 2 Chair’s Perspective 3 Your Trusted Network 4 New Members 8 Day in the Life
C PA I N P E R S P E C T I V E
The CPA Profession 10 Successful Exam Candidates 12 Enhancing the CPA Designation Through Diversity 14 Professional Development Tools & Resources 15 Did You Know
S U M M E R 2 0 11 V o l u m e 8 N u m b e r 2
Features 22 Blue-Ribbon Panel Recommendations 24 Vital Skills for the Future 26 CPA Horizons 2025 28 Getting Noticed in Today’s Digital Age
The Society 18 Facilitating Access 20 Upholding Integrity 32 Socially Speaking
BOARD OF DIRECTORS
CPA IN PERSPECTIVE
O F F I C E R S:
P R E S I D E N T & C E O:
Charles Johnson, CPA, Chair Kevin G. Kruggel, CPA, Chair-Elect Steven A. Eichenberger, CPA, Vice Chair Jeffery P. Fusile, CPA, Vice Chair Kent J. Williams, CPA, Vice Chair
Gary M. Bolinger, CAE
D I R E C TO R S:
Bettie A. Caldwell, CPA Matthew A. Cohoat, CPA D. Michael Jack, CPA Michael E. Johnson, CPA Jenni Lea McNaughton, CPA, J.D. Jennifer Norris, CPA Matthew J. Pletcher, CPA Cynthia L. Ransom, CPA Mark Shaffer, CPA Louis E. Stratton, CPA P U B L I C M E M B E R S:
Steven R. Johnson Dan Lappin
EDITOR-IN-CHIEF/ ADVERTISING INFORMATION:
Dave Shatkowski MANAGING EDITOR: CONTRIBUTING WRITERS:
Tony Flack Allison Paul GRAPHIC DESIGNER:
P U B L I C AT I O N M O N T H S: January, May, August and November CPA IN Perspective is a publication of the Indiana CPA Society and is published by INCPAS. The Society does not assume responsibility for statements therein, nor does publication of advertisements endorse or authenticate products or service. The editor reserves the right to accept or decline any material based on space availability or appropriateness of content. Reproduction or use of editorial or graphic content without permission is prohibited.
Indiana C PA S ociet y 8250 Woodfield Crossing Blvd., #100 P.O. Box 40069 Indianapolis, IN 46240 phone: (317) 726-5000 fax: (317) 726-5005 toll free: 1-800-272-2054 e-mail: email@example.com web: incpas.org © 2011 Indiana CPA Society. All Rights Reserved.
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Historic Term Begins With Focus on People, Future By Charles Johnson, CPA
t is truly an honor and I am privileged to serve as chairman of your Indiana CPA Society. To be the first minority chair of such a prestigious organization that is committed to advancing the CPA profession through strategic initiatives that value diversity in our profession is gratifying. The board recognizes the necessity of ensuring an adequate supply of qualified, diverse and experienced professionals, and has identified a number of goals in support of this strategic theme. Two of those goals are ensuring members are aware of dynamic human capital issues evolving in our profession; and, that there is a pipeline of high quality and effective leaders for INCPAS, the profession and public as a whole. As a step to achieving the first goal, some important human capital topics are covered in this issue. Please see what are being considered as vital skills of the future for CPAs and the current perspectives on hiring and looking for jobs in the current market. Also, as I begin my term as chairman, I cannot help but look back over the past few years of my service on the board and I am truly awe-inspired at the caliber of persons that have served as chair of INCPAS. I would especially like to thank Joe Scheidler, CPA for his leadership this past year. Under Joe’s leadership the board, through its task forces, articulated the value proposition of membership in the Society, incorporated risk assessment in the ongoing activities of the board, and began the process of understanding and defining knowledge manage-
CPA IN Perspective
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ment and how the Society could implement a knowledge management system. The INCPAS Scholars Program was also initiated to specifically address the human capital theme, with the goal of increasing ethnic diversity within the Society and profession. It is a very exciting time for our profession, with the CPA Horizons 2025 initiative currently underway that will update and revalidate the findings from the original CPA Vision process regarding the profession’s core values, core competencies, future services and significant issues. The recommendations of the Blue-Ribbon Panel on Private Company Financial Reporting are also currently being evaluated by the Financial Accounting Foundation. Those recommendations were overwhelmingly endorsed at our spring leadership cabinet/emerging leaders alliance meeting. The recommendations were also overwhelmingly endorsed by the AICPA Council at their spring 2011 meeting. It is clear, however, that the FAF will not act on those recommendations without the significant support of members of the profession. I encourage you to take a look at how you can support the recommendations of the BlueRibbon Panel by going to aicpa.org for guidance on drafting a personal letter in support for those recommendations. This may be our last chance to persuade the FAF of the need for change in the area of private company financial reporting standards. In addition, the joint venture between the AICPA and CIMA in creating a vehicle for the CGMA designa-
tion is truly historic, will have a significant long-term impact upon the profession, and will create strategic value immediately for our members in management accounting. I am truly excited about the upcoming year as we develop a vision for INCPAS, reassess our governance structure and define the concept of public interest and our responsibility thereto. As we look at the issues for the upcoming year, and I begin this year as chairman, I am reminded of my encounter with the late Congresswoman Julia Carson. I am reminded of this encounter because it was a chance meeting in a hallway, and no one else was around. This meeting was only about 30 seconds long, however, I have been impacted for the remainder of my professional career by her taking a few seconds out of her day to encourage and inspire me in my profession. I am hoping that each INCPAS member takes a few moments to contribute some time to your profession. Your input into CPA Horizons 2025, a letter in support of the Blue-Ribbon Panel recommendations, or assistance and encouragement to an INCPAS Scholar are examples of some actions that may impact the profession for years to come. Only with your input are we going to further the mission of the INCPAS, creating the value you expect at your Professional Home. I look forward to serving you throughout this upcoming year. firstname.lastname@example.org
Your Trusted Network
Your Trusted Network Appointments Linda D. Baugh, Accountant, and Imran H. A. Lodhi, Staff, BKD, LLP, Indianapolis. Samual D. Carsey, new staff member, Bucheri McCarty & Metz LLP, Kokomo. Jeffrey Fusile, CPA, Senior Vice President and Chief Financial Officer of Strategic Business Units and Centers of Enterprise Excellence, WellPoint, Indianapolis.
Curtis Miller, CPA, Katz, Sapper & Miller, LLP has been appointed by the Butler University College of Business as the College’s Board of Visitors Chairman. Miller will serve a three-year term. Anita Weaver Sherman, CPA, Greenwalt CPAs, was featured in the Indianapolis Star article “My Office,” which takes readers inside the unique work spaces of various professionals.
Veros Partners announces a new branding strategy under the banner of “Creating Tomorrow Together,” and launched a new web site and printed materials that reflect this strategy.
In Memoriam Linda M. Wall, CPA, Franklin, passed away on May 3, 2011. Members on the Move announcements should be sent to Jenifer Groth at email@example.com.
Brian Hauersperger, Staff Accountant, Blue & Co., LLC, Indianapolis
Micheal Sutton, CPA, Vice President of Business Development, United Leasing, Inc., Evansville.
Promotions Jeffrey Baumann, CPA, Assistant Corporate Controller, Maple Leaf Farms, Inc., Milford. Greg A. Chester, CPA, Managing Partner, PwC US, Indianapolis. Gregory Cislak, CPA, BKD, LLP, Indianapolis.
Member News Jeffrey Belskus, Indianapolis Motor Speedway Corporation LLC, was featured in the IBJ Who’s Who in Hospitality – 2011. Jo Burke, MBA, CPA, Newbury Financial, Evansville, passed the Certified Financial Planner (CFP®). Marvin Hills, CPA, PFS, CLU, ChFC, with Crowe Horwath LLP was chosen to speak at the Knowledge Congress’ webcast entitled: “The 2010 Tax Relief Act: Estate Planning Considerations for 2011 and Beyond.”
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New Members AFFILIATE Business Professional Sherry Borshoff, Borshoff & Associates Sarah E. Burton, Deloitte Jay Cox, Personal Benefits Service John Anthony Firmani, Materials Processing, Inc. Andrew W. Gustafson, Atlas 1031 Exchange, LLC LaTonya Keaton, PNC Financial Services Group Nathan Lashbrook, RJ Pile, LLC Shelley Llamas, Myers & Stauffer LC Katie E. Mutchman Karen E. Noel, Katz, Sapper & Miller, LLP Dan Rennie, Sensient Technologies Corporation Barbara L. Vance, Myers and Stauffer LC
AFFILIATE Non-CPA Accounting Angela K. Brooks, Myers and Stauffer LC Ryan Farrell, Myers and Stauffer LC Tony Greig, Purdue University Belvia B. Hiadari, Umbaugh David A. Horney Ekaterina Lotkov Leslie N. McCoy, A-Classic Party Rental Mark C. Sherman, First Person Benefit Advisors
AFFILIATE Paraprofessional Linda D. Baugh Lauren A Duffy, BKD, LLP Linda O. Peck
ASSOCIATE Ethan S. Bradley, Ernst & Young Yujung Chen, Stampfli Associates, CPAs, P.C. Joseph M. Cholewa, Clifton Gunderson LLP Sherry L. Downey, Alber Crafton, PSC Lyndy M. Errett, Ernst & Young Nicholas I. Holton, Katz, Sapper & Miller, LLP Christina M. Kruithoff Julia K. Langenhop, KPMG, LLP Misty L. Massey, Brown, Smith & Settle, CPA Courtney D. McGill, Indiana Live! Casino Andrew T. McGuire, PricewaterhouseCoopers, LLP Alexander E. Storer, Blue & Co., LLC
CANDIDATE Steven Bedell, Laszlo & Associates, P.C. Stephanie A. Bernhardt, Blue & Co., LLC Theresa L. Bradley, Area IV Agency on Aging and Community Action Programs, Inc. Heidi R. Bratcher, Redcats USA Katrina K. Buell, Comer, Nowling & Associates, P.C. Samuel D. Carsey, Bucheri McCarty & Metz LLP Yuming Gong, Thompson Distribution
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INCPAS welcomes new and returning members from Jan. 1-May 31, 2011. Lisa D. Harber, Tiffany Lawn and Garden Supply, Inc. Kyle R. Hayward, Peachin, Schwartz & Weingardt, P.C. R. Scott Hutchison Jospeh Lackey, Clifton Gunderson LLP Imran Lodhi, BKD, LLP Natasha M. Miller, Blue & Co., LLC Michael J. Moehlenhof, American Majority, Inc. Bonnie S. Phillips, Clifton Gunderson LLP Beth L. Price, City Securities Corp Theresa M. Robbins, Reynolds, Inc. Andrew Russell, Kemper CPA Group, LLP Daniel D. Seligman, Clifton Gunderson LLP James C. Ward, BKD, LLP Kaitlin Wardlow, BKD, LLP Paige Wories, Swartz, Retson & Co., P.C. Daniel Wyant, BKD, LLP
RESIDENT Ted E. Andrews, CPA, Ted E Andrews, CPA R. Todd Barrett, CPA, Ernst & Young Lindsey M. Bauer, CPA, Kruggel, Lawton & Co, LLC Richard H. Becker, CPA, Richard H Becker, CPA Jeffrey A. Bodkin, CPA, BKD, LLP Jay B. Boughner, CPA, Fanimation Design and Manufacturing, Inc. Leslie E. Boyd, CPA, Clifton Gunderson LLP Walter J. Brown, CPA Kayla L. Cheesman, CPA, BKD, LLP Melinda R. Childers, CPA, Sallee & Company, Inc. Kenneth H. Cottle, CPA, BKD, LLP Kallie N. Crider, CPA, Ernst & Young Kimberly L. Dollin, CPA, Somerset CPAs, PC Chase J. Emge, CPA, BKD, LLP Julie K. Eslinger, CPA, Crowe Horwath LLP Ryan T. Fair, CPA, Granger Tax & Accounting Holly R. Fields, CPA, Blue & Co., LLC David J. Freedman, CPA, Crowe Horwath LLP Luke C. Frient, CPA, Ernst & Young Darin J. Greggs, CPA, Greggs & Reid CPAs, PC Derek D. Grimm, CPA, Blue & Co., LLC Mary J. Habegger-Fox, CPA, Mid-America Foundation Supply Sarah K. Haddon, CPA, Covance Central Laboratory Services, Inc. Kimberly K. Hall, CPA, Gillam & Zetzl, Inc. Carol S. Hayden, CPA, Rust Companies, LLC Pamela L. Hedrick, CPA, Community Foundation of Northwestern Indiana Karen L. Hitt, CPA, RSM McGladrey Jennifer C. Hockenhull, CPA, Lauren Davis & Co, P.C. Carrie J. Holley, CPA, Integra Bank N.A. Deborah Holtman, CPA, Teachers Credit Union Brian P. Holtz, CPA, Hamernik, LLC
Lindsey M. Howell, CPA, Crowe Horwath LLP Blair Huff, CPA, Simon Property Group Kyle N. Hunter, CPA, Crowe Horwath LLP Anthony L. Javorka, CPA, Somerset CPAs, PC Jeffrey A. Jennings, CPA, Capitol Construction Services, Inc. Ernest D. Kammogne, CPA, Cargill, Inc. Laura E. King, CPA, Hill-Rom Company Della L. Kirkman, CPA, Seddelmeyer & Associates, CPAs Thomas James Kueber, CPA, Stampfli Associates, CPAs, P.C. Marc A. Lemberger, CPA, Crowe Horwath LLP Tracey T. Lemming, CPA, Purdue University Tiffany K. Longstreth, CPA, Eli Lilly and Company David J. Martin, CPA David McCain, CPA, Lincoln Financial Group Jennifer M. Meyer, CPA, CTI Group, Inc. Angela A. Moats, CPA, L. M. Henderson & Company, LLP John J. Mooney, CPA, Nisivoccia, LLP Anita R. Morgan, CPA, Indiana University East Jessica M. Muhlenkamp, CPA, BKD, LLP Nels E. Olson, CPA, Ernst & Young Richele E. Orn, CPA, Lincoln Financial Group Edilberto C. Ortiz, CPA, E C Ortiz & Co, LLP Stacey M. Ottenweller, CPA, Tower Bank and Trust Company Mark A. Paul, CPA, Crowe Horwath LLP Nicholas A. Payne, CPA, Crowe Horwath LLP Gail A. Perry, CPA, Sift Media US, Inc.: AccountingWeb Debbie L. Philpott, CPA, Indiana Wesleyan University Rachael E. Picazo, CPA, Summit CPA Group Shawn M. Pooler, CPA, Blue & Co., LLC Matthew P. Poske, CPA, Finish Line, Inc. Brian W. Prather, CPA, Group Dekko Inc. David R. Puffett, CPA, DFAS Bryan K. Rector, CPA, Indiana University Health Ryan B. Richey, CPA, Precision Plastics, Inc. Kandy Robinson, CPA, Horizon CPA Services, Inc. Chelsea R. Sain, CPA, City Securities Corp Justin M. Sanchez, CPA, ProLiance Energy, LLC Masato Sawamoto, CPA, Crowe Horwath LLP Emily N. Schilling, CPA, Iasta.Com, Inc. Amanda L. Schwartz, CPA, Lincoln National Corp Daniel L. Short, CPA, ProLiance Energy, LLC Adam R. Simaga, CPA, Legacy Professionals LLP John D. Skjeveland, CPA, Skjeveland, Gerloff & Associates, LLC Beth A. Slaninka, CPA, Alerding & Co., LLC Cynthia J. Smith, CPA, Environmental Remediation Services, Inc. John A. Soetenga, CPA, Stephens & Soetenga, CPAs, P.C.
New Members Jisook Song, CPA, Consona Corporation Justin S. Stenberg, CPA, BKD, LLP Chika H. Sunoto, CPA, Jurgonski & Fredlake CPAs Mary L. Tate, CPA, Internal Revenue Service Tracey J. Traub, CPA, Thatâ€™s Good HR, Inc. Jayme L. Via, CPA, Myers and Stauffer LC Jared D. Weidner, CPA, Weidner and Company, P.C. Eve M. Weihe, CPA, Barrett & Stokely, Inc. Angela D. White, CPA, ProLiance Energy, LLC Michelle T. Wiethe, CPA, Firestone Industrial Products Christopher J. Wynne, CPA, NIBCO, Inc. Fei Yu, CPA, RCI, LLC
STUDENT Roderick Abbott, Indiana University South Bend Meheret L. Abebe, IUPUI Benjamin M. Adolph, Ball State University Shalini Agarwal, IPFW Bryan Akers Abdullah Aldkeel, Indiana State University Jacqueline Arambula Rachel L. Baird Shelby Baker, Indiana University Stephanie Baker, Purdue University Calumet Sherry Banks, IUPUI Andrew J. Barnett, Indiana University Frank Bartolini, Indiana University South Bend Michael D. Barton, Marian University Octavia B. Bates Stephanie E. Beresford, Indiana State University Tiffany Biggs Robert T. Birkett, Trinity Christian College Andrea D. Black Tina Boles Matthew Borlee, Purdue University Lori K. Bragg, Indiana State University Elizabeth Brazaitis Mary Ella Brown, Jones International University Ashley Brundage, Marian University Katelyn N. Bryant, Ball State University Laura Buening, Indiana State University Kyle Burcham, Indiana University Bryan Burns, IUPUI Kelsey Cantrell, Indiana University Sheila K. Carson, IUPUI Taylor L. Cates, Indiana University Jessica Chaffin, Ball State University David Chen, Kaplan University Maria Chen, University of Indianapolis Hye R. Chong, Indiana State University Susan E. Christy, Indiana Tech Brooke Claycomb, Indiana Tech Tara Cline, IUPUI Matthew C. Cochran, Franklin College Ryan J. Coffel, Ball State University James Cohoat Natalie Cole, Indiana University Joseph Colone, IPFW Sean P. Conlon Kiya A. Coulibaly, IUPUI Carol Croft, Indiana University South Bend Michael Cubit, Indiana State University Morgan DeCoursey, Indiana State University
Katie L. Dilling, Indiana State University Philip Legere Michael Disher, Indiana State University Kari N. Lengacher, Indiana University Vania S. Dyson, Indiana Tech Brian Lihs, Indiana University Paul Farthing, IUPUI An Yi Lin, Indiana University John M. Garland, Purdue University John T. Long, Ball State University Hogan Garrison, Indiana State University Jing Lu, Purdue University Jeremy J. Gates, IUPUI Brandon Lucas, Ball State University Timothy Gazdziak, Indiana University Michelle Lui, Indiana University Eric F. Geary, Franklin College Lorraine L. Malaba Kylie Gleeson Arlen Marking, IUPUI Randa D. Goodman, Indiana State University Brandy Mathews, Indiana Wesleyan University Michelle L. Goshert Katherine E. McCarty Nanette Grace, Indiana Tech Matthew S. McGill Eric Graybill, Western Governors University James P. McKinley James Gustafson, Purdue University Shawn C. McSweeney, IPFW Huizi Han, IUPUI Michael B. Mercier, Indiana University Nicole L. Hanson, IUPUI Briana Miles John B. Harbaugh, Indiana University Kokomo Travis L. Miles, DePaul University Mitchell Harrison, Indiana University Joshua Miller, IUPUI Brent Harvey, Ivy Tech Leah J. Miller, Marian University David Helderman, Indiana University Jose L. Mireles, Indiana University Northwest Colin A. Henry, Indiana University Christopher Mitchell Fairuza S. Hidayat, IUPUI Candice E. Moor, Bellevue University Karen J. Hodge, Harrison College Terry D. Morson, Oakland City University Colin J. Houlihan, Indiana University Brogyn K. Mullinix, Indiana State University Sherree K. Hovis, Indiana University East Amanda N. Murley, Franklin College Marian D. Hubbard Mike A. Murphy, Marian University Rachael Hurd, Ball State University Mikalynn P. Murray Jessica Hurst, Ball State University Ryan K. Murrell, Indiana State University Kevin Jett, Indiana University Jordyn J. Myers, IPFW Dylan M. Johnson, Trine University Mary Ann Myers, IPFW Levi A. Jones, Franklin College Dan Jongkind Emily Kannenberg, Indiana University Kimberly J. Karim Megumi Kawamitsu, Indiana University South Bend Adam Kempf NaYoung Ki, Indiana University Margaret O. King Tyler C. Kitchen, Marian University Molly E. Knight, Marian University Gretchen A. Koch Chun Ping Kwok, Indiana University South Bend Mike J. LaBuda, Ball State University Save Time & Focus On Your Business While We Sell It Amanda N. Lamping, Customized Marketing Package Franklin College Huge Database & We Will Bring You Qualiďƒžed Buyers Daniel T. Lanoue, Indiana Lower Fees & More Personal Service State University Kimberly Laurie, Indiana State FREE ON-SITE CONSULTATION University Cynthia Lawn, Indiana University Northwest Linda J. Lawrence, Indiana University Kokomo Joshua Leach, University of Southern Indiana Miyeon A. Lee, Indiana University
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New Members Heather L. Nanny-Cole, IUPUI Kurt Neufeld, Goshen College Christa L. Newcom, Saint Mary of the Woods College Jeffrey P. Nywening, Indiana Wesleyan University Jill M. Onion, IPFW Austen J. Owen, Indiana University Angela M. Perez, IPFW Mitchell Peters, Indiana University Northwest Daisy Pham, IUPUI Jessica Poeppelman, Ball State University Deshae L. Prince, Indiana University Northwest Lee M. Purdy, Indiana University South Bend Diana Rangel, Ball State University Daniel Rapapport, Indiana University Megan Record, Indiana University Yuliana Rivera, Indiana University South Bend Kimberley Robbins, Ball State University Jeffrey Roberts, Indiana University Nathan A. Rodgers, Indiana State University Hannah L. Root, Indiana University Thomas Rosenbaum, IUPUI Kevin T. Rosenkranz, Indiana Wesleyan University Matthew J. Roskopf, Indiana University Joshua A. Roth, Franklin College Andrew C. Safford Kevin M. Samuelson, Purdue University Calumet Devin B. Sanders, Indiana University Adam Schaffer, Ball State University Corey Scheinblum, Indiana University Kara G. Schondorf, Indiana University
Rebecca M. Shein, Indiana University Haixu Shen, Indiana University Viva Shetty, IUPUI Lee R. Shiverdecker, Indiana University Jatinder Singh, IUPUI Caitlin Smith, IUPUC Dashonda Lazonya Smith, Indiana University Northwest Jeffrey Smith, Indiana University James R. Snapp Qiushi Song, Purdue University Holly Sparks, Indiana Wesleyan University Nicole M. Stallings, Huntington University Megan Steele, Indiana State University Brandon A. Stoll, Marian University Dewi Sukmasari, IUPUI Meiyan Tan, IUPUI Wesley A. Terry, Indiana University Adam Thiemann, Indiana State University Stephanie Thomas, IUPUI Deanna Thompson, IUPUI Katherine Thompson, Indiana University Jesse A. Tomich Denise Trgovich, IPFW Alisha M. Tyler, DeVry University Scott Ulm, Indiana Tech Veronica Urbina, Indiana University Northwest Jenna Vaal, Indiana State University Reema Vij, IPFW Kayla D. Vore, Indiana State University
Donald R. Walker Kathryn Walsh, Indiana University Adam J. Warner Tyla M .Warner, Franklin College Zachary D. Waycott Brett Weaver, IUPUI Brady Werne Steven D. White Zachary D. White Daniel L. Wicker, Indiana University Donald T. Williams, Marian University Kristin L. Williams, Anderson University Ryan Williams Allyson Winebar, IPFW Joanna Wojnar, Indiana University Mesgana Wontamo, Indiana University South Bend Max S. Woodbury, Franklin College Brennan Woodruff, Indiana University George C. Wray, Manchester College Mujen Wu, Indiana University Bethany Wuestefeld, Ball State University Erica Wurst, Ball State University Stephanie Zaleski, Purdue University Zhenykai Zhou, University of Indianapolis
Want your name on the list? Become a member of the Indiana CPA Society. Visit incpas.org/join.
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Day in the Life: Dale Gettelfinger
This summer, INCPAS past president Dale Gettelfinger, CPA gives us a peak into a day in his life! The importance of networking, mentoring, a commitment to lifelong learning and having fun is clearly a part of Gettelfinger’s life.
Dale L. Gettelfinger, CPA Position: Until July 1, 2010, was the managing partner for Monroe Shine & Co., Inc. CPAs. Location: Three offices; Bedford, New Albany and Louisville, Ky. Firm: At peak have approximately 70 staff members in all offices and affiliates. Nowadays: Now I am trying to settle into being the “old guy” accommodating the many transitions that are now appropriate. I started with the firm on Jan. 3, 1977, after graduating from Indiana University. Why I became a CPA: I wanted to be a trusted advisor to important people and I thought being a CPA was the most direct route. Bob Shine and Ray Housel, my seniors and mentors at the firm, quickly convinced me my goal was right while showing me how to achieve it.
WATCH ONLINE: Gettelfinger discusses Southern Indiana, his career, community service and mentorship. Find the video at incpas.org/digitaledition
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The coolest thing about being a CPA: All types of people ask me what I think about – whatever particular topic. It still surprises me people value my point of view.
Day in the Life: Dale Gettelfinger
5:45 a.m. Get up, work out and eat breakfast with my wife Donna. Tonight is date night, I am excited. 7:45 a.m. Wrap up the review of federal estate and Indiana inheritance tax returns. Returns are for a client who died in 2010, so we have those complexities to consider. 8:15 a.m. Already interrupted. Client calls with questions about a withdrawl from an annuity. Give them the bad news — there will be tax to pay. We have a “don’t shoot the messenger” conversation. 8:25 a.m. Back to the estate tax return. 9 a.m. Another interruption during a tough task. Stockbroker wants to know how to handle funding a trust from the estate. He is a good guy, he cares and wants to do the right thing. 9:10 a.m. Back to the estate tax return. 10 a.m. Review complete, ready to go over the return with my partner and staff first thing Monday morning. Overnight mail package hits the desk. Materials for CPAmerica board of directors meeting in Las Vegas. CPAmerica is our CPA firm sharing group. I scan the agenda and note my presentations. I am the immediate past chairman so I have some things to wrap up from 2010. Check the rest of the mail. All junk, except for Business First, our local weekly business newspaper. Check for CPA firm ads. None. Retired CPA has an ad for his mergers and acquisition practice. An interesting change. 10:30 a.m. Get Adam Dicken, our new staff member who just graduated from the IU Kelley School of Business, and head out to a client meeting and lunch. Good chance to get to know Adam and show him some southern Indiana countryside on a beautiful day. 11 a.m. Arrive at client’s office to gather up April 30 year end
work. All is in good order and in line with yearend tax planning. Discuss some sales tax questions about sales to Monroe Shine cofounder J. Robert tax exempt entities. Shine served as a mentor to Gettelfinger.
11:45 a.m. Lunch with
client. Mostly small talk. Adam seems to have enjoyed the experience.
1:15 p.m. Back in office. Return call from young businesswoman who wants to get involved in One Southern Indiana, our Chamber of Commerce for Clark and Floyd Counties, and our political activity. I chair the public policy council. She is from a political southern Indiana family and she can be some help to us. We talk about future meetings schedule. Follow up call with One Southern Indiana staff about how we are doing with arrangements for candidate interviews for endorsements. We plan to endorse candidates in the New Albany, Jeffersonville and Charlestown mayoral races in the fall.
1:35 p.m. Review federal and Indiana fiduciary income tax returns for an estate. Straight forward. Staff did a fine job. 2 p.m. Take my Anti-Money Laundering exam. Monroe Shine has an affiliate, Horizon Wealth Management. Have to keep my licenses up-to-date. Generally, these exams are a pain in the neck but some interesting information. Passed the Gettelfinger talks with new staff member and recent exam. Get my cerIU Kelly School of Business grad Adam Dicken. tificate to Horizon staff before June 30 due date. Fortunately, I am not the last one. 3:15 p.m. Attorney returns my call. Yes, I will get you a draft of the client’s will. This is not the first such exchange on this project. I recall my friend Jeff Kimmerling’s barb “without CPAs little good legal work would get done.” 3:30 p.m. Start in on a new client, a local homeowners association, that has not filed returns for several years. This is full of problems and I am turning up nothing but bad news. No way we can charge all the time on this one. Not a good way to wrap up the day. 5:30 p.m. Great! I am not the last one out of the building, so I do not have to set the alarm. 6 p.m. Donna has baked scrod for dinner, one of my favorites. Date night is on. 7:30 p.m. “Bridesmaids.” Fortunately, I am not the only guy in the theater. The movie is a riot. Everyone is laughing. 10:30 p.m. Call my daughter Jenna. She just got engaged. I volunteer some ideas for the bridesmaid’s trip and bridal shower. What do you think about puppies as a party favor? 11 p.m. Say my prayers and thank you. Donna says we clean the patio Sunday morning. This exciting development brings date night to an end.
Do you think a day in your life would make a good addition to our series? Contact INCPAS Senior Manager – Member Communications Stephanie Parton at sparton@ incpas.org to find out how you can share your story. CPA IN Perspective
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Successful Exam Candidates
Successful Exam Candidates
Those listed below without a symbol are not current INCPAS members. If you know or work with any of these successful exam candidates, contact INCPAS Membership Manager Courtney Kincaid at firstname.lastname@example.org.
From the January/February 2011 Window
Syd S. Aslami
Julie R. Coddington
Matt Gadus, BKD, LLP
Rebeka M. Badgley
Audrey B. Conley
Thomas R. Bassett
Nicholas D. Crabtree, CPA
Paul G. Gardner, CPA
Stephen D. Blake, CPA, Blue & Co., LLC
Dave O. Bolton, CPA, Biomet Orthopedics, Inc
Andrew M. Deedrick, CPA, Dauby Oâ€™Connor & Zaleski, LLC
John H. Herrel, BKD, LLP
Denise Boo, CPA
Danielle R. Dowd, CPA
Erik D. Braden
Kylie J. Driggs, CPA, Crowe Horwath LLP
Derick R. Busenbark
Nate Everett, Belden Wire & Cable Company
Lindy L. Hylton, CPA
Eugene W. Feichtner Samp J. Fennig, CPA
Gretchen Ann Kalk, CPA, Craighead, Lange and Hough, P.C.
David J. Freedman, CPA, Crowe Horwath LLP
Heather Dawn Krock, Haines, Isenbarger & Skiba, LLC
John E. Cahill, CPA Cynthia R. Cannedy, CPA Greg M. Clark Jacob R. Clawson Daina R. Cloer, CPA
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Lindie M. Hohler Kyle N. Hunter, CPA, Crowe Horwath LLP Amber Leigh Jernigan
Successful Exam Candidates
Brian S. Lanoue, Lambert, Lanoue, Smoker, LLC
Erin M. Norton
Jenna L. Lingenhoel
Richard M. Smith
Cory Reffett, CPA, Harding, Shymanski & Co.
Kelly R. Losko, CPA
Ryan B. Richey, CPA, Precision Plastics, Inc.
Jennifer L. Stoops, CPA
Brian T. Rielly
Patricia M. Stuller, CPA
Matthew T. Matern
Andrew C. Russell
Laura McCormick, CPA
Marietta Salmon, CPA
Melissa H. Merrick
Amy L. Sargent, CPA
Jen M. Meyer, CPA, CTI Group, Inc.
Jackie L. Schroeder, CPA, Huth Thompson, LLP
Brandon Mills Mark Moon, CPA Kylie N. Norman, CPA, Bradley & Associates, Inc.
Kristie Faye Small, CPA, Dulin, Ward & DeWald, Inc.
Amy C. Phelps
Kendall G. Scouten, Stevens & Company, LLC Liane Kay Shaffer
E-9002-0711 IN_E-9002-0711 IN 7/7/11 2:58 PM Page 1 Ying Shao
Sarah M. Squires
CORRECTION: The Spring 2011 issue incorrectly listed Stacy L. Musselman’s employer. She is with LTS CPA Group LLC, and is an INCPAS member.
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Enhancing the CPA Designation Through Diversity
INDIANA CPA SOCIETY
Enhancing the CPA designation through
Through the support of Indiana’s largest CPA firms and colleges/universities, this year’s INCPAS diversity initiatives gain momentum to make a difference in the CPA profession.
Society Leads the Way in Diversity Initiatives By Ali Paul email@example.com INCPAS Leadership and Outreach Manager
This July marked the first time in the Society’s 96-year history that a minority professional was named chair of its board of directors. Charles Johnson’s recent appointment coincides with the continuation of two successful INCPAS diversity initiatives. The Diversity Summit, held Aug. 5, featured a highly respected slate of diversity thought leaders as well as an appearance and remarks from Indianapolis Mayor Greg Ballard. Game On: CPAs in Action will enter its fourth year and expects to reach nearly 200 students at this half-day program on Oct. 5. focusing on college readiness as well as opportunities in the CPA profession. What’s new this year and what has energized CPAs and their employers is the INCPAS Scholars program. Officially launching in August, a group of 15-20 high potential, minority students will begin a year-long mentorship and career awareness program. The launching and success of the scholars program, as well as the Society’s other diversity initiatives, is directly related to the tremendous
New Chair Charles Johnson, CPA, addresses members and guests at the June 16 Reception to Celebrate Diversity.
amount of support by Indiana CPAs, firms, companies and colleges/universities. It is just the beginning of a professionwide effort to make a difference. Historically, the number of minorities in the CPA profession has been extremely low. As the profession works to increase this number of minority representation, only recently have studies been conducted to track this. In the AICPAs 2011 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits, minorities make up only 21 percent of employees at public accounting firms, a slight increase from 17 percent in 2009. A great deal of work will be done in the coming months to increase these numbers and fill the pipeline with talented, passionate, intelligent students. Through the commitment and support of BKD, LLP, Clifton Gunderson LLP, Crowe Horwath LLP, Deloitte LLC, Engaging Solutions, LLC, Ernst & Young LLP, KPMG LLP and PricewaterhouseC-
oopers LLC, the goal of moving the dial, is possible. The CPA community in Indiana is working together to benefit the profession as a whole. It is clear that diversity of thought is extremely important, especially in an increasingly global society. In addition to funding, sponsors are providing numerous mentors that are making personal commitments to their mentees that will be there, and will provide the support needed to reach the students’ goals. Sponsors are sending staff to key diversity events and providing weeklong job-shadow opportunities and various in-house experiences for the inaugural class of INCPAS Scholars. Colleges and universities are extremely energized about getting involved. Since a large part of the Society’s diversity initiatives focuses on encouraging graduation and interesting students in choosing accounting as a major once they reach college, partnering with Indiana colleges and universities is a no-brainer!
It is just the beginning of a profession-wide effort to make a difference. 12
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Enhancing the CPA Designation Through Diversity
“Colleges and universities are in the business of changing lives and preparing the next generation – for that reason only it is imperative that they be partners in the INCPAS Scholars program,” said Kent Williams, CPA of Indiana Wesleyan University. Ball State University, Butler University, Indiana Wesleyan University, Indiana University, Martin University, University of Indianapolis and University of Southern Indiana have committed to these initiatives and will work over the next year to encourage high school students to pursue an accounting degree. Accounting students and faculty will participate in a speed-networking event to showcase their accounting program and school culture. Later in the year, scholars will visit one college/university for a daytrip aimed at giving the students a real picture of what campus life is all about. They’ll check out the dorms, eat in a dining hall, meet with faculty and tour a beautiful Indiana campus. Additionally, over the scholar’s spring break, they’ll be invited to visit a school and will shadow an accounting student. They’ll go to classes and any extracurricular activities their host student is involved it. This will be a chance
for students to experience college as they will in the near future. “Colleges and universities can play a key role by encouraging high school students to finish what they’ve started and to go beyond their dreams,” said Williams. “If we expect to truly make a difference in the lives of the next generation and especially for those who may need more encouragement, colleges and universities must be partners for success to be achieved.” INCPAS Scholars also will gain a buddy from this partnership. College accounting students will be selected by faculty to be a friend to the scholar. This relationship will not be a formal mentor/mentee relationship like the scholars will have with their CPA mentor. This relationship will allow the scholar to have someone to turn to when they have questions about college life (How do you do laundry? What’s the point of doing a homework assignment if it’s not going to be graded? How do I balance my studies with fun things?) These college students will give the scholars a real-world look at what it’s like to be an accounting major. A few years from now, the scholar may be serving as the college student mentor, helping to encourage future scholars.
WATCH ONLINE: See speeches from Celebrate Diversity: A Reception to Honor Charles Johnson and hear member perspectives on the importance of mentorship. Watch the videos at http://bit.ly/ nJuzLJ and http://bit.ly/oVV3AV
Thanks to the generous suppor t of the INCPAS Scholars sponsors, the Society has launched the nation’s first year-long career awareness and mentorship program for minority high school students interested in the CPA profession.
Thank you to our Sponsors: COLLEGE/UNIVERSITY:
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Professional Development Tools & Resources
Tools & Resources
INCPAS professional development helps you acquire the tools and skills you need in your career, including those that go beyond your reporting requirements. Tools and skills that can help you become more motivated, productive and profitable.
INCPAS is bringing in two highly-touted speakers this fall. Jonathan Robinson is a world-class speaker who’s been a frequent guest and contributor to The Oprah Winfrey Show, the Today show, CNN, CNBC and numerous radio shows. And legendary Jack Park, CPA is a longtime Ohio State University football radio personality and author, as well as an accomplished business man and award-winning presenter.
Frequent Guest on The Oprah Winfrey Show and CNN Jonathan Robinson Renowned Psychotherapist, Author and Personal Productivity Expert Speaker Rating: 4.59
Triple Your Memory and Confidence, and Halve Your Stress Aug. 29 | 8:30 a.m.-4:30 p.m. ET INCPAS Prof. Dev. & Conf. Ctr., Indianapolis Member: $299 Nonmember: $449 In order for CPAs to be successful, they have to be able to learn faster, feel confident working in difficult situations, and overcome stress efficiently and effectively. Fortunately, each of these skills can be quickly learned in a single day. Using the latest “inner technology,” participants will be guided in powerful and practical ways to triple their reading and memorization ability, become immediately confident, and let go of stress in as little as six seconds.
Famed Football Radio Personality and Highly-Rated Business Speaker Jack Park, MBA, CPA, CSP Veteran Ohio State University Football Radio Personality, Author and Professional Speaker Speaker Rating 4.76
Financial Leadership 2011 Sept. 27 | 8:30 a.m.-4:30 p.m. ET INCPAS Prof. Dev. & Conf. Ctr., Indianapolis Member: $299 Nonmember: $449 Today’s financial leaders must help organizations create value, not simply measure it. Financial people play key roles in transforming visions and strategies into action programs at every level of the organization. This seminar deals primarily with practical day-to-day leadership applications, not broad theoretical concepts. It provides valuable insight into improving financial leadership abilities, both within and outside of the financial function.
The Leadership Secrets of Football’s Master Coaches Nov. 8 | 8:30 a.m.-4:30 p.m. ET INCPAS Prof. Dev. & Conf. Ctr., Indianapolis Member: $299 Nonmember: $449
Nov. 9 | 8:30 a.m.-4:30 p.m. ET Century Center, South Bend
There are common threads between championship football teams and high performance organizations. Learn how many of the highimpact strategies of America’s most successful football coaches can be adapted to improve an organization’s performance. Focus less on “what” great coaches like Vince Lombardi and Bill Walsh accomplished, and more on “how” they and other master coaches led their people to extraordinary levels of success. Each presentation is customized to include philosophies, reflections and quotations from successful football coaches in the local state.
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The INCPAS Board adopted a resolution on June 17 in support of the Blue-Ribbon Panel report on Private Company Financial Reporting. The Financial Accounting Foundation is currently considering the panel’s recommendations. As part of the resolution, the INCPAS Board urges Indiana CPA Society members and firms, private companies and other interested parties to communicate with the Financial Accounting Foundation at firstname.lastname@example.org, expressing your support and other opinions you may have.
Workplace practices, employee benefits and engagement were considerations as the Indiana Chamber of Commerce revealed its “Best Places to Work in Indiana.” The list includes CPA firms and businesses employing CPAs.
Private Company Financial Reporting
Read more on page 22
AICPA Governing Council Approves Joint Venture The council unanimously approved a joint venture between the AICPA and the Chartered Institute of Management Accountants. The joint venture facilitates the creation of a new international management accountant credential. Read more on page 24
2011 First Quarter Uniform CPA Examination Passing Rates SECTION FIRST QTR.
Best Places to Work in Indiana Revealed
Go to indianachamber.com to see who made the list
Error on IT-40ES Forms Provided by CCH The Society helped identify a solution to a reported problem with the scan line on IT-40ES forms provided by CCH, causing misapplication of payments to the wrong tax period. The Indiana Department of Revenue has programmed a temporary correction. Read details at in.gov/dor
Indiana Cracks Down on Illegal SUTA Dumping Indiana Department of Workforce Development is seeking to eliminate various tax avoidance and tax manipulation practices — commonly called SUTA (State Unemployment Tax Act) dumping. Penalties apply to advisors or those directly attempting rate manipulation. Read details at in.gov/dor
Outstanding Accounting Majors: Congratulations 2011 Recipients Given annually, the Outstanding Accounting Major Award recognizes accounting students for outstanding leadership and academic achievements. Students are evaluated based upon his/her grade point average, proficiency in English, math and speech, willingness to accept responsibility, moral character, and extracurricular activities, specifically those requiring demonstration of leadership skills. Anderson University | Kyle Dillon Ball State University | James D. Huth Bethel College | Joseph Welch Butler University | Chelsea Elaine Jensen Franklin College | Andrea Barnett
Franklin College | Lacie A. DePlanty Goshen College | Seth Grimes Grace College | Daniel M. Smith Indiana State University | Kelsey Powell Indiana University | Kevin King Indiana University East | Roger Crane Indiana University Kokomo | Abram J. Jenkins Indiana University Northwest | Shannan Leigh Sharp Indiana University South Bend | Isaiah A. Counsellor Indiana University Southeast | Shelby Jett Indiana University Southeast | Tyler Stiebling Indiana University-Purdue University Columbus | Hannah Denney Indiana University-Purdue University Fort Wayne | Allyson R. Winebar Indiana University-Purdue University Indianapolis | Leslie Boyd Indiana Wesleyan University | Jeff Nywening Manchester College | Kirk Bates
Marian University | John T. Pfifer Martin University | Oliver Brooks Oakland City University | Kelsey Davis Purdue University | Jim D. Gustafson Purdue University Calumet | Elizabeth Holesapple Purdue University North Central | Amber Northern Saint Joseph’s College | Matthew Foltz Saint Mary-of-the-Woods College | Chera Finkbiner Saint Mary’s College | Elizabeth Reed Taylor University | Rachael Corrinne Morgese Trine University | Lauren Phillips University of Evansville | Annie Weber University of Indianapolis | Andrew Wagner University of Notre Dame | Lauren A. Boulay University of Saint Francis | Ryan S. Ulch University of Southern Indiana | Katherine Braun Valparaiso University | Shaunna R. Dangremond
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Case Study Competition â€“ Important Dates Taking part in the INCPAS 12th annual case study competition equips Indiana college students with practical experience they can use as a CPA in the business world. All Indiana colleges and universities with accounting departments are invited to participate.
Oct. 20: Oct. 21: Oct. 31: Nov. 11: Nov. 18:
AICPA Governing Council Meeting INCPAS and AICPA leaders met recently at the AICPA Council Meeting in Washington, D.C. INCPAS leaders had the opportunity to meet with Indiana Congressmen during the trip.
Team entry deadline Case studies e-mailed Case submissions due to INCPAS Announcement of six finalists Oral presentations
For guidelines and cash prize information visit incpas.org
The General Assembly Has Adjourned, but CPA-PAC Is Ongoing The Indiana CPA-PAC supports the campaigns of state legislators who represent the best interests of the public and CPA profession. Contributing to the PAC is one of the most important actions you can take as an INCPAS member. Make a donation of any size, and do your part to protect your interests as a CPA. Donate online at incpas.org
From L-R are former INCPAS Chair Anita Sherman, CPA, Rep. Todd Rokita (R-Indiana) and INCPAS Chair Charles Johnson, CPA.
CPA e-Perspective Gets a New Look Your biweekly member e-newsletter went through a redesign in May. The new design features a streamlined, mobilefriendly version of your favorite source for timely news in the CPA profession. Send your feedback to email@example.com
Rep. Joe Donnelly (D-Indiana) and INCPAS Chair-elect Kevin Kruggel, CPA.
CPA Day of Service DAY of
Participate in the ninth annual CPA Day of Service on Sept. 23, 2011. Join hundreds of Indiana CPAs and accounting students as they perform community service and help worthwhile organizations. To volunteer call Leadership and Outreach Manager Ali Paul at 1-800-272-2054. Sign up by Sept. 9 to be included in media coverage.
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WATCH ONLINE: Watch former INCPAS chair Joe Scheidler, CPA, give an update on the AICPA Governing Council meeting held May 22-24 in Washington, D.C. Watch the video at ht tp://bit.ly/lCC5Ko
INCPAS Chair-elect Kevin Kruggel, CPA and former INCPAS Chair Joe Scheidler, CPA on Capitol Hill.
insideINCPAS Have you had a chance to check out the INCPAS videos and episodes of insideINCPAS yet? Inside INCPAS will give you an inside look into what’s happening at the Society and news affecting the profession. Subscribe to the INCPAS Channel on YouTube to be notified when new videos are posted.
Y O U Your clients us and
Subscribe online at youtube.com/incpas
95 ways to give roots to your clients’ dreams.
CPA Celebration and After Party Join us Nov. 18 for the 2011 CPA Celebration presented by The National Bank of Indianapolis at the Indiana Roof Ballroom to recognize successful Exam candidates, award winners and outgoing leadership. This year’s theme is heroes and villains, so wear your favorite costume. Register by Oct.18 and save $15 per registration. incpas.org/CPACelebration
Successful exam candidates are welcome to join us for an exclusive after-party at Rock Bottom Restaurant and Brewery just for you. Contact Membership Manager Courtney Kincaid at firstname.lastname@example.org or 1-800-272-2054 for details.
INCPAS Peer Review Oversight Report Results The Society’s peer review oversight report was accepted by the AICPA Peer Review Oversight Task Force. Oversight reports examine and aim to enhance peer review programs nationwide. View the report online at incpas.org/public/public/2010PeerReviewOversig htReport.pdf
You You listen. You educate. You inform.
Your Clients Have dreams. Want to leave a legacy.
Us 95 Community Foundations in Indiana, including one in your clients’ home county. Public charities that accept a wide variety of gift types, offer expertise in community needs, and provide professional fund administration - from grant making to reporting. To locate the Community Foundation serving you and your clients, go to:
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The Society is active in the legislative and regulatory arenas. From its peer review and ethics committees to its government relations advisory council and legislative key persons program, the Society advocates for its members and monitors the regulation of the CPA profession in Indiana. Check here for legislative and regulatory updates that will affect you.
Peer Review News for Everything Peer Review on incpas.org The Society has added new links on incpas.org that provide updates on new developments in Peer Review. Find the latest information on vital issues like broker-dealer audits. Get AICPA Peer Review Alerts that provide timely information regarding AICPA Standards for Performing and Reporting on Peer Reviews (Standards) and related guidance, as well as provide updates on the peer review environment. You also can link to the most current Administrative Entity Report of Oversight. View details at incpas.org/Public/PeerReview/Developments.aspx
Peer Review and Client Records: Upholding the Integrity of CPAs HEA 1233 — Peer Review and Client Records — was signed into law by Gov. Mitch Daniels. The new law will “go a long way to uphold the integrity of the CPA profession, as well as protect consumers from CPAs that fail to meet current standards,” according to a report from the Indiana Board of Accountancy. The new legislation changes the phrase “quality review” to “peer review” and allows the peer review oversight committee access to failed peer review reports, and to use the reports as evidence to discipline a CPA and/or firm in an action before the Indiana Board of Accountancy.
By Ted Zaleski, CPA INCPAS Ethics Committee Chair Dauby O’Connor & Zaleski, LLC
Ethics Codification Project The AICPA Professional Ethics Executive Committee (PEEC) is in the process of re-codifying the institute’s ethics standards and interpretations. The purpose of the process is to ensure the rules are easier to follow and to help members reach conclusions without running into any problems. The current Code of Ethics contains many provisions, and although they’re separated in different sections, the provisions are closely related. This forces the reader to go from place to place, making it more difficult to know if all relevant sections were reviewed. The new version will attempt to better explain the relevant provi-
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sions in a single area. The present numbering system will be changed and there will be sections that apply to members in public practice and those that work in non-public areas, such as private industry and the not-for-profit sector. Many of the provisions in the current Code of Ethics will not be changed. In exposure drafts that were issued earlier this year, the ethics executive committee requested comments on rules affecting affiliates, changes in language involving independence standards and many other definitions that are meant to help identify potential problems. The committee also has looked to the standards established by the International Ethics Standards Board for Accountant’s (IESBA). The AICPA’s Journal of Accountancy will continue to update the membership as this project moves along. For more information on ethics, contact Mike Barker, CPA, CISA email@example.com
Board of Accountancy T HE
New Board of Accountancy e-Newsletter: The Balance Sheet
N e w s l e t t e r
May 9, 2 011
I n d i a n a
1, Issue 1
B o a r d
A c c o u n t a n c y
n c e Ta k es Cent er Stage The Board recent
Firm Pe rmits: Who Ne eds ‘em?
Maybe y ou... 2
Discipli nary Actions
t h e
Inside t his issue:
New Rul es & Regulat ions
B ALANC E
ly hired a Comp liance Officer, Morga n L. Burton, to educate the accountancy community regarding the laws and regula tions applicable to the practice of accou ntancy and to investigate potential violations.
and firms in understandi ng the laws, also to enforc but e the laws should any licensee choose not to comply. The Board expec ts all license es and firms to comply with Ms. Burton’s Ms. Burton earned reque welco sts and me her into an undergradua the community. gree from the te dehave any questi If you Kelley Schoo ons, requests, l of Business 2002 and a law in someo or believe degree from ne may be in the Univerviolation of sity of Louisv the law, you may contac ille in 2005. She has five t Ms. Burton years of experi via phone or email. ence in litigati on and has spent the last four years as a Deput torney Gener y Atal representing the State in licensing action s. Be on the lookou t for Ms. Burton as she will be traveli ng around the State to introduce herself, educate the comm unity about the rules and regulations, and investigate poten tial violations of the code. The mission Morgan L. Burton of the compl iance officer enhance the is to Phone: (317) profession by 234-3025 assisting CPAs Email: morbu firstname.lastname@example.org. cebook! gov
Shortly after Morgan Burton stepped into her new compliance officer position at the Indiana Board of Accountancy, an educational tool was already in the works to connect the board to the community and Indiana licensees. Volume one, issue one of the The Balance Sheet was released on May 9. The quarterly e-newsletter puts compliance at center stage, as the first issue contains important information on firm permit enforcement, new board rules and regulations, disciplinary hearings, CPE requirements and audits. CPE Aud its
Meet th e Staff
Meet th e Board
us on Fa
The Board is now on Faceb ook! Becom fan of the Board ea we come across by searching them. If you for “Indiana Board of Accou have any content that would ntancy”—jus t click on the be of interest, Like button. be sure to By following send it to the us on Facebook, Board (conta you will receiv ct information on last page). e information This is also a about renew audits, contin great oppor als, nity to uing education, tuconnect with and more. We other profes will also be postin sionals. We hope you g any article join us and look s of interest as any inform forward to ation you want to share!
If you are not currently on the mailing list for The Balance Sheet, and would like to be, contact Morgan Burton at MorBurton@pla.IN.gov. As always, the best way to report compliance issues is to contact Burton directly by phone or e-mail, which can be done anonymously if preferred: (317) 234-3025.
Hearing on Professional Standards The Society proposed a solution that would save time and eliminate confusion and the time consuming process of rule adoptions to maintain current professional standards. The Indiana Board of Accountancy held a hearing on the proposed rule on May 20. Many Indiana regulatory boards adopt professional standards, rules of conduct or something similar by reference into the Indiana Administrative Code. In the case with the Board of Accountancy, there has always been a specific date reference for those standards adopted by reference. For example:
The following pronouncements on professional standards set forth in the AICPA Professional Standards, Volumes 1 and 2 (June 1, 2008), subject to the exceptions listed in subsection (c) applicable to certified public accountants and certified public accountant firms only): The CPA profession is not immune from ongoing amendments to professional standards, and confusion would have been created among a wide range of licensees. The proposed solution would eliminate rulemaking in the future to update references to professional standards. Instead, licensees would be required to be in compliance with the adopted standards which are in effect on the day (at the time) that the licensee performs the service that requires compliance with professional standards. In turn, the board can still effectively regulate the CPA profession.
CPA Exam Rule Correction The actual effective date for the rule for early application for the CPA Exam was April 20, 2011 – not Jan. 9, 2011, as published in the spring issue of CPA IN Perspective. The rule permits candidates for CPA licensure to apply to take the CPA Exam up to 60 days prior to completing the educational requirements.
Around the Country 1099 Repeal: A Win for Taxpayers and the CPA Profession INCPAS, the AICPA and other state societies pushed to repeal burdensome 1099 requirements, and won as President Obama signed H.R. 4 into law on April 14. The new law repeals both the expanded Form 1099 information reporting requirements administered by last year’s health care legislation, and also the 1099 reporting requirements imposed on taxpayers who receive rental income enacted as part of the Small Business Jobs Act in 2010. AICPA President and CEO Barry Melancon, CPA described the repeal as “a victory for taxpayers” according to the Journal of Accountancy. The push for repeal began last July with letters to the U.S. House of Representatives and Senate. No repeal was enacted during last year’s lame duck session, so INCPAS, the AICPA and other state societies paid visits to congressional offices in 2011 and sent letters to various committees advocating repeal. On March 3, AICPA Tax Executive Committee Chair Patricia Thompson testified on the matter.
Tax Strategy Patents A reform bill was introduced this past spring containing a provision that intends to stop the issuing of tax patents on strategies for complying with the U.S. tax code. INCPAS and the AICPA have been supporting this legislation and believe no one should have a monopoly over any part of the tax code. The provision to stop tax strategy patents, included in the Senate patent reform bill (S. 23) — commonly referred to as the America Invents Act — passed the Senate on March 8 and was sent to the House for consideration. HR 1249 differs from the version passed by the Senate so it must now go to the Senate or to a conference committee to work out the differences.
UAA Exposure Draft Update The AICPA/NASBA Uniform Accountancy Act (UAA) has considered guidelines for what defines misleading CPA firm names. The proposed changes (section 3, article 14) add a definition of “network” and “network firms” to the Uniform Accountancy Act, and provide guidance to state boards of accountancy and firms on CPA firm names. The new rule gives specific criteria on which names should be considered misleading and which are permissible, and sets guidelines for the usage for the “network” firm names. New language was recommended to the commentary of Rule 14-1 of the Uniform Accountancy Act model rules to recognize implications to mobility when considering CPA firm names.
PTIN Renewal FAQs Q: When can I renew my PTIN for the 2012 filing season? PTIN renewal is expected to be available in October 2011. Check irs.gov/ptin for updates. Q: When does my PTIN expire? PTINs now expire on a calendar year basis. If you obtained or renewed your PTIN for the 2011 filing season (e.g. between Sept. 28, 2010 - present), your PTIN expires on Dec. 31, 2011. Source: irs.gov
Continued on page 30...
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The Indiana CPA Society does many things to uphold the integrity of the CPA profession. Its leadership groups work hard to enhance the value of your CPA designation and facilitate your access to the resources that are important for you as a professional.
Board of Directors The Society’s Board met on June 17. Outgoing Chair Joe Scheidler, CPA, presided over his last board meeting. The three incoming board members attended as guests. Approval of the fiscal year 2012 operating and capital budgets was a key order of business. A detailed budget presentation from staff highlighted the areas in which changes were reflected in the budget from the prior year to the current year. The board also approved key volunteers who will play leading roles in serving members over the coming year. They included the peer review and ethics committees, leadership cabinet and emerging leaders alliance, leadership cabinet advisory council and emerging leaders alliance leadership governance council, and the government relations and tax resource advisory councils. Regarding private company financial reporting, the board adopted a resolution in support of a different GAAP model for private companies determined by a separate private company accounting standards board as recommended by the Blue-Ribbon Panel.
Updates on the strategic plan included an overview of the value proposition and risk assessment implementation, updates on diversity and changes to next year’s strategic plan, and discussion and direction on the knowledge management project. The board decided to proceed with further study of knowledge management but to not commit significant dollars until the feasibility and potential success of implementing such a comprehensive system is known. After the conclusion of the meeting, board members broke into their new task forces and met for the first time. This year’s board task forces are vision, public interest, and governance, structure and organization. Task forces will continue to meet monthly in preparation for their reports at the board retreat in November. For more information on the INCPAS Board of Directors, contact Gary Bolinger, CAE email@example.com.
Government Relations Advisory Council
Tax Resource Advisory Council
GRAC met on June 3. Three Indiana Professional Licensing Agency staff members attended, giving GRAC members the opportunity to meet new IPLA staff. The group talked about upcoming issues and rules changes. The next meeting will be Sept. 23. This will be the 2012 legislative agenda meeting in which GRAC will cover the board report for the Oct. 6 INCPAS Board meeting. GRAC Chair Randy Effner, CPA will attend the meeting and give the report.
TRAC met on June 2 and part of the agenda consisted of meeting with two staff members from the Indiana Department of Revenue. TRAC Chair Jeff McGowan, CPA also attended the IDR’s public hearing on June 7. TRAC’s next meeting will be in September, and at that time they will meet with representatives from both the IDR and the Internal Revenue Service as they do each year at that time.
For more information on TRAC or GRAC, contact Sherrill Rude, CAE firstname.lastname@example.org.
Go to incpas.org/Member/Public/11_June07_DORPublicHearingFinal.pdf to read McGowan’s comments given at the IDR public hearing.
Board of Directors Nominations The INCPAS Leadership Succession Committee is seeking recommendations for members to serve on the Indiana CPA Society Board of Directors. The individuals will be considered for a two-year term beginning July 1, 2012. You may nominate yourself or someone else. Nominations are due by Dec. 1. For additional information, contact Leadership Succession Committee Chair Kevin Kruggel, CPA at (574) 289-4011 or email@example.com, or INCPAS President & CEO Gary Bolinger, CAE at 1-800-272-2054 or firstname.lastname@example.org.
WATCH ONLINE: A reception to welcome incoming Chair Charles Johnson and Celebrate Diversity was held on June 16. Nearly 200 attended. Watch the videos at http://bit.ly/ nJuzLJ and http://bit.ly/oVV3AV
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LC/ELA Spring Meeting
Emerging Leaders Alliance Leadership & Governance Council The INCPAS Emerging Leaders Alliance Leadership & Governance Council will have eight members for the next year. There had been nine, but Stephanie Dunn and Troy Parton are being appointed to leadership cabinet, and Chris Cobb will be assuming a regular position on Emerging Leaders Alliance Leadership & Governance Council. For more information on leadership cabinet and ELA, LCAC and ELALGC contact Sherrill Rude, CAE email@example.com.
Indiana CPA Political Action Committee The Indiana CPA-PAC Board of Trustees met on June 21. At that meeting they approved contributions to 30 legislators and four party committees for the upcoming elections this fall. Susi Willis, CPA was also named as a new PAC trustee.
Leadership Cabinet/Emerging Leaders Alliance Leadership cabinet and ELA met on May 19-20 at Belterra Resort and Casino in Florence. Curtis Zimmerman got the meeting off to a rousing start with an entertaining presentation on living life at performance level. Zimmerman used the game of Simon says, juggling and fire-eating to illustrate his points and keep the audience riveted for 90 minutes.
For more information on the Indiana CPA-PAC, contact Sherrill Rude, CAE firstname.lastname@example.org.
The theme of the meeting was “knowledge is …” and a proposed knowledge management system for the Society was the main topic of discussion. After a presentation on the knowledge management task force’s findings and recommendations, LC and ELA members split into six breakout groups and answered a number of questions related to whether or not the Society should implement a knowledge management system. Feedback, both pro and con, was beneficial to the board of directors. Other topics discussed included the CPA Horizons 2025 project, the joint venture between the AICPA and the Chartered Institute of Management Accountants, (CIMA), to create a vehicle for the proposed Chartered Global Management Accountant credential, and the Blue-Ribbon Panel’s recommendations on private company financial reporting. These are all initiatives in which the Society can play a role, and they could each have an impact on the future of the CPA profession in Indiana.
Leadership Cabinet Advisory Council The INCPAS Leadership Cabinet Advisory Council program will continue on for the second year with eight participants. The Society will continue to develop the program in year two, and it will continue to have a mentor component for the participants in the program.
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Blue-Ribbon Panel Recommendations
Recommendations Urgent Request from AICPA Chairman: Help Change Private Company Financial Reporting By Paul V. Stahlin, CPA
recommendations. They are for FAF to:
Chairman, AICPA Board of Directors
I’d like to take this opportunity to update you on one of the most important issues facing our profession, not down the road, but right now. It also involves a call to leadership action on your part. The issue of private company financial reporting is at a now-or-never crossroad after 35 years of study, debate, task forces and committees. CPAs are critical participants in the process to bring longoverdue and much-needed change to accounting standards and your action today will greatly affect the future. You also can help get this across the finish line by enlisting the support of other private company stakeholders, such as business owners, bankers, venture capitalists and sureties/insurers. A specially appointed Blue-Ribbon Panel on Private Company Financial Reporting in 2010 explored accounting standards for private companies and their financial statement users and the process that leads to setting U.S. GAAP. Earlier this year, the panel presented game-changing proposals to the Financial Accounting Foundation, which oversees the Financial Accounting Standards Board. FAF is now conducting outreach on, among other things, the panel’s two major
• Ensure changes and modifications are made to existing and future GAAP that recognize the unique needs of users of private company financial statements. All such changes would reside in the FASB Accounting Standards Codification®. • Establish a new, separate board with standard-setting authority reporting directly into FAF. The board would coordinate activities with the FASB but not be subject to the FASB’s approval or veto powers. This recommendation is to ensure sufficient and appropriate differences are set in GAAP for private companies. FAF plans to issue an action plan this fall. It’s critically important for CPAs and other stakeholders to show their support for the panel’s recommendations, ahead of any possible FAF proposal. I am asking you, on behalf of the profession, to write to FAF immediately to help make sure FAF’s action plan includes differential standards and a separate standard-setting body to enact them. The AICPA has created an online letter-writing tool (apps.aicpa.org/pcfr/) to assist you and other stakeholders with whom
you are in contact. Personalized letters are best, of course, and you can use the tool to do that as well. I also am personally asking each of you to champion the cause with non-CPA stakeholders; we are much more likely to get the results necessary for permanent, effective accounting standards for private companies if we work together with other affected constituencies. After all this time, there’s finally an opportunity for real change. If it doesn’t happen now, it might never. Please be a part of history. Let’s make private company financial reporting more relevant and less complex. Private companies need this change, and need it now. Help the Blue-Ribbon Panel’s recommendations become a reality. Write to FAF today! See the list of more that 1,400 people who have already expressed their views to the Financial Accounting Foundation. Go to aicpa. org/privateGAAP and click on the Comment Letters to FAF link.
“I am asking you, on behalf of the profession, to write to FAF immediately to help make sure FAF’s action plan includes differential standards and a separate standardsetting body to enact them.” Paul V. Stahlin, CPA Chairman, AICPA Board of Directors
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Blue-Ribbon Panel Recommendations
What You Need to Know About Private Company Financial Reporting
ECTORS RESOLUTION INCPAS BOARD OF DIR
NCIAL REPORTING PRIVATE COMPANY FINA
g the development of accountin CPA Society has supported WHEREAS, the Indiana ; anies comp needs of private standards that better meet the on are approximately 29 milli the U.S. Census Bureau, there WHEREAS, according to uately served through adeq not are h whic of the U.S., many privately held companies in cial statements; the use of current GAAP finan resulting in the Financial inted a task force in 2005 WHEREAS, AICPA appo te Financial Reporting Priva the of ation form d (FASB) Accounting Standards Boar Financial Reporting in pany Com te Priva on l Pane Blue Ribbon Committee in 2006, and a of the Blue Ribbon Panel ority rmaj supe a , issue studying the with December 2009 and, upon el that follows the GAAP a new standards-setting mod believes there is a need for anies; exceptions for private comp te l envisions a separate priva of the Blue Ribbon Pane g WHEREAS, a supermajority of the Financial Accountin sight over the r unde d ards boar company accounting stand el; mod a t such Foundation (FAF) to implemen of na CPA Society Board IT RESOLVED, the India l NOW, THEREFORE, BE iduals, the Blue Ribbon Pane indiv and ps grou the all of ts ial Directors appreciates the effor onsoring organizations, offic co-sp the , rting Repo ncial on Private Company Fina conclusion; who assisted in reaching this observers, and panel staff, the Board of Directors supports the Indiana CPA Society d by a AND BE IT RESOLVED, te companies as determine priva for s ption exce with Society implementation of GAAP d, and urges Indiana CPA accounting standards boar te with separate private company ested parties to communica inter other and , anies comp members and firms, private ort for its formation. supp g essin expr n datio the Financial Accounting Foun June 17, 2011
Overview During 2010, the Blue-Ribbon Panel on Private Company Financial Reporting explored the changes necessary to best meet the needs of U.S. users of private company financial statements. In January 2011, the panel finalized its recommendations on the future of standard-setting for private companies and submitted a report to the Financial Accounting Foundation. FAF Trustees discussed the report at a meeting in February 2011 and formed a Trustee Working Group in March to address accounting standard-setting for nonpublic entities and gather public input. It’s critically important that CPAs, their private company clients, small businesses and their financial statement users — especially bankers/lenders, sureties and insurers, and venture capitalists — take action and help effect the historic change needed in financial reporting. The time to shape the outcome is now.
Recommended Changes The two most significant Blue-Ribbon Panel recommendations are that:
The INCPAS Board adopted a resolution on June 17 in support of the Blue-Ribbon Panel report on Private Company Financial Reporting. The Society encourages you to follow Paul Stahlin’s request and write to FAF expressing your opinion on the recommendations.
• A new, separate board with standardsetting authority be established under the oversight of the FAF. The board would coordinate activities with the FASB but not be subject to FASB approval. • Changes and modifications be made to existing and future GAAP that recognize the unique needs of users of private company financial statements. All such changes would reside in the FASB Accounting Standards Codification®. Why This Effort Is So Important Private companies play a vital role in our economy. There are about 29 million private and not-for-profit companies in the United States, including 7 million small- to medium-size businesses. CPAs who work for these companies, or who serve them, have been saying for a long time that these businesses have financial information needs that are much different from those of large public entities. Their financial statement users need straightforward, understandable
information that addresses what they need to know — no more, no less. Given private companies’ key role in job creation and economic development, it is more vital than ever that their financial statement users and other stakeholders, such as owners of those companies, have relevant and useful financial information. Separate Board Is Critical for Effective Private Company Accounting Standards Years of studies and research, a joint advisory committee with the FASB, private company constituent representation on the FASB board, and comment letters on proposed accounting standards in the past have not yielded meaningful results. The AICPA believes it is imperative that there be a board made up of private company constituents who would set the different standards affecting the private company financial reporting system. As it stands now, issues affecting public companies are what drive accounting standards and impact how they are written. Private Company Financial Statement Users Agree Change Is Needed Many constituents — including lenders, investors and owners — question the relevance and usefulness of a number of current GAAP standards as they relate to private companies. In fact, the BlueRibbon Panel listened to users at its very first meeting and this group was also represented on the panel. Users appreciate that certain standards need to change to bring balance to the cost-benefit equation. Cost Also Is a Factor for Change CPAs are aware that U.S. GAAP has become exceedingly complex as business has become complex. A lot of that complexity arises out of publicly traded companies and the role they play in the economy. Too much of what is included in current financial statements is not useful to private company owners, lenders and investors. As a result, not only is this unnecessary reporting not cost beneficial, it also can stand in the way of good business decision-making by complicating the financial statements with data that are irrelevant to the analyses of most private company financial statement users. Continued on page 31... CPA IN Perspective
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Vital Skills for the Future
Vital Skills e r u t u F e h t r fo By Dave Shatkowski email@example.com INCPAS Vice President – Communications
Knowledge management has been a buzz phrase around the Society for the last year and a half. INCPAS has been exploring a knowledge management system for its members. But where is competency enhancement headed? Many don’t believe the old CPE model is enough. Through knowledge management, CPAs could develop skill sets and achieve competency enhancement outside of CPE in an online environment.
Maintenance requirements for the proposed management accounting credential that may result from the joint venture between the AICPA and the Chartered Institute of Management Accountants is an example of a new competency model. This internationallyrecognized credential would be called the Chartered Global Management Accountant. The CGMA credential will be designed to elevate the management accounting competencies of CPAs in business, industry and government. Due to increasing globalization of both accounting and business, a need for such a credential was identified. It is intended to solidify CPAs’ reputation as objective finance professionals and reflect expertise in strategy development, change and risk management, protection of corporate assets, and operational efficiencies and effectiveness.
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In order to be eligible for the CGMA, CPAs will have to be members of the AICPA and meet one of three types of qualifying experience (three years of management accounting experience in business or government, as a consultant or in the management of a CPA firm). Beginning in 2015 CGMA credential holders will also be required to complete an ongoing selfassessment to maintain the credential. It is this assessment piece that is the real forward-thinking element. What is being referred to as a “holistic professional development and delivery and self-assessment platform” or “Virtual Me,” will be a technology-enabled approach to continuously maintain and enhance competencies. The platform will cover three areas: 1) a career pathway that will help CGMAs target, refine and implement the best course of action for their careers;
Vital Skills for the Future 2) a continuous improvement tool that will feature a dynamic mechanism for enhancing skills and preparing for potential promotions; and 3) an organizational development tool that will provide employers with the ability to create a customized program for financial/ managerial roles. Is the CGMA model a peek into the future of CPA education? Could the hoursbased CPE model be on the way out, to be replaced by a professional development model based on continuous improvement? Only time will tell, but a future knowledge management system being considered by INCPAS could be the mechanism that changes the way CPAs acquire competencies and sharpen their skill sets. How would you want to get information and share knowledge? A look into the future might help our understanding of why this concept of learning can help breakdown established and traditional educational barriers. Futurist Edie Weiner, president of Weiner, Edrich, Brown, Inc. a leading futurist consulting group based in New York, has consulted with the AICPA and recently expressed her views on the future of the CPA profession and sharing knowledge in general. “The future of the accounting profession will be made up of people who are very comfortable from a design, a scientific, technological and presentation perspective, in being able to store and communicate information in very different ways,” said Weiner about the skills CPAs will need and how they will use them. “What the profession will be made up of in the future are people who are not so much smart as they are intelligent, who can figure things out that they’ve never seen before,” Weiner added. “So the ability to constantly run people through simulations, to constantly test their ability to solve new problems, to give them puzzles, games that might represent real situations … These will be the kinds of training that firms will have to put their people through. So that their brain becomes better able to see things for the first time.” That type of forward-thinking, thoughtprovoking leadership will continue to strengthen the CPA position as the only choice for premier business consulting services, and add to the value already provided to clients and employers. “There is a huge opportunity for this profession to start taking a look at what the assets of enterprise will be in the coming decade, not what they were 100 years ago,” continued Weiner. “And as we keep measuring the hard stuff, the tangible stuff, and keep moving into a world where that
is becoming less relevant, we really need to start throwing so much more of the intellectual capability of this profession at how to measure those intangibles.” With respect to the rapid rate of change in business worldwide, Weiner views knowledge as an asset with unlimited potential. “Information does not respect national boundaries,” she said. “It flows back and forth across the globe. Markets have expanded beyond global borders. “Governments have no clue around the world how to tax the information and the knowledge that’s moving around the world. That is the asset of the future.” While the profession of today still has many obstacles to overcome, the future is bright – if we come to a consensus that new ways to acquire competencies are vital to the long-term growth and stability of the profession. The possibilities for sharing, gaining and using knowledge are endless. “It becomes exciting when we think about what the future could be for the profession as opposed to thinking about all the challenges that exist currently,” Weiner said. Sources: Advancing the Science of Management Accounting, an overview of the proposed joint venture between AICPA and CIMA AICPA interview with Edie Weiner
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CPA Horizons 2025
What is the Future of the CPA Profession? Interactive Survey to Provide Clues, Guidance
However, where will CPAs stand in 2025? Will technology propel our profession or make aspects of it obsolete? What influence will the Mideast revolts, global competition and increasing regulation have on the work we do?
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Elvis Presley said, “I have no use for bodyguards, but I have very specific use for two highly trained certified public accountants.” U.S. News & World Report and The College Board agree, with the former calling accounting one of the 50 best careers of 2011 and the latter naming the profession one of the hottest careers for college graduates. However, where will CPAs stand in 2025? Will technology propel our profession or make aspects of it obsolete? What influence will the Mideast revolts, global competition and increasing regulation have on the work we do? CPA Horizons 2025 is a professionwide initiative led by the AICPA to gather the insights of CPAs, regulators, state societies, futurists and young professionals across the country, in an effort to examine the local and global trends that are affecting us in our daily work and predict the forces that will impact us in the years ahead. Results of this project will build awareness of future opportunities and challenges and help us shape our objectives and strategies. Perception is reality, and the success of the CPA profession relies upon public perceptions of CPAs’ abilities. Through an interactive survey, available on CPAHorizons2025.org, online discussion
forums, in-person forums and virtual focus groups, observations and suggestions will be gathered, analyzed and reported. “We also want the survey to be an educational experience,” said AICPA CEO Barry Melancon, noting survey takers have the opportunity to click on in-depth video interviews with futurists and other resources throughout the survey. In the late 1990s, the AICPA and state societies conducted a similar, grassroots endeavor, The CPA Vision Project. More than 3,350 CPAs, from public practice, business and industry, government and education, participated in the survey and more than 170 forums were held. Emerging from this project was a guiding vision that has helped define our profession over the past 15 years. The heart of the vision statement states, “CPAs are the trusted professionals.” Our core competencies were identified as communications and leadership skills; strategic and critical thinking skills; focus on the customer, client and market; interpretation of converging information and technologically adept and our top five core services were determined to be assurance and information integrity; management consulting and performance management; technology services; financial planning
CPA Horizons 2025 and international services. Do these competencies and services need to be expanded? Tweaked? Altered? Time does not stand still. Since the CPA Vision Project results were presented in 1998, there have been economical, technological, political and social cataclysms that have affected our profession: the Enron, WorldCom and Madoff scandals (to name a few); the birth of smart phones and computer tablets (do you know that Apple sold 7.5 million iPads in its first six months!) and the beginning of the end of the desktop; and the great recession. Couple these monumental events with such global evolutions as the shift in relative wealth and economic power from West to East; the declining U.S. share of world GDP and world trade; the growing middle class; a world population that is nearing seven billion and is expected to pass nine billion in a little more than 30 years; increasing life expectancy and a world population aged 80 or over projected to increase 233 percent by 2040. Finally, the essence of our profession is being pressured by regulatory and competitive forces, including non-CPAs who are competing for non-audit projects and services.
All are events that in the short or long term affect how we do business and necessitate that we take another look at what is impacting our profession, how we can be proactive and reactive to these forces and what tools are needed to remain competitive and grow. As Charles Darwin stated, “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” That is where you come in. By completing this survey on CPAHorizons 2025.org, and then following up with participation in the online discussion forums, we can produce findings that each of us can utilize in our daily work. Since the initial CPA Vision Project, thousands of new professionals have entered the field and a critical part of CPA Horizons 2025 will be to uncover their perspectives. This survey covers topics not explored in the previous survey, including social media and sustainability. All feedback, including survey results, online discussions, interviews and focus group input, will be compiled into a final report that will be presented by AICPA Chairman Paul Stahlin at the organization’s fall 2011 meeting.
r i v a t e
Time does not stand still. Since the CPA Vision Project results were presented in 1998, there have been economical, technological, political and social cataclysms that have affected our profession.
a n k i n g
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Getting Noticed in Today’s Digital Age
In Todayʼs Digital Age By Stephanie Parton firstname.lastname@example.org
INCPAS Senior Manager – Member Communications
one are the days of wanting to secure a job with the same company your entire career. Today’s worker has an average of over 10 employers in their lifetime. Many of today’s professionals are constantly looking for the next great career opportunity. It’s not only how often professionals change their positions that has changed over the years, but also how they go about finding their next job. The days of face-toface networking are over. Searching the newspaper for job openings and mailing your résumé and cover letter
are a thing of the past. If you want to secure your next job in today’s world, you have to be on the cutting edge of self promotion and electronic networking. dToday’s job candidates are digitizing referrals and marketing themselves online. But companies need to be looking for their new hires via the same social media outlets. According to Jobvite 2010 Social Recruiting Survey, recruiting has become a mainstream channel for companies who are hiring, with 83 percent now using or planning to use social media for recruiting.
Social Recruiting Continues to Grow The Jobvite 2010 Social Recruiting Survey says that social networks lead all other recruiting channels for planned investment by employers as the economy continues to recover. Survey results show that 46 percent of respondents planned to spend more on social recruiting in 2010 than 2009, 36 percent planned to spend less on job boards and 38 percent planned to spend less on third party recruiters and search firms.
How is your company changing its spending on these recruiting sources in 2010 compared to 2009?
Companies that were actively hiring via social media platforms were even greater. The survey results showed 92 percent of those hiring in 2010 currently using or planning to recruit via social networks. Of this group, 86 percent used LinkedIn, 60 percent used Facebook and 50 percent used Twitter for recruiting. In addition, 50 percent of hiring companies plan to invest more in social recruiting.
Through which network have you hired?
3rd Party Recruiters / Search Firms
Have you successfully hired through a social network?
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Source: Jobvite 2010 Social Recruiting Survey
Getting Noticed in Today’s Digital Age
While social media is a great way to reach potential job candidates, it’s also an easy way for employers to find out more about their applicants. However, if your company chooses to use social media profiles to research job candidates, they should be aware of the risks involved. Social media can reveal a lot about an applicant, including some things that should not be considered when determining whether to hire an applicant. Employers now have easy access to information that could reveal the protected characteristics of applicants, such as age, race and/or gender.
Top 10 Social Media Do’s and Don’ts
1. Develop a policy on whether the employer will search the internet or social media sites in hiring.
6. Designate a non-decision maker to conduct the search. The individual should be properly trained to avoid improper access and to screen out information that cannot be lawfully considered in the decision-making process.
2. If you decide to use social media in hiring, do the searches on applicants consistently and in a uniform manner.
7. The non-decision maker can provide “scrubbed” information to the decision maker.
3. Make sure candidates are notified, in writing, about the companies use of social media to gather information e.g., on job applications.
8. Rely on job-related criteria – preferably from a job description.
4. Consider using social media only after the initial interview to cut down on the number of searches and after you already have information on the candidate.
9. Be aware of relying on legal, off-duty conduct.
5. Ensure employment decisions are made based on lawful, verified information.
Building Your Network
Social media can help you find job opportunities and connect with people who can help your career search. But it’s important to realize that social media, when used the wrong way, can backfire and jeopardize a job offer. When considering what you should and shouldn’t do when using social media to job search, keep the following tips in mind. Be Consistent
You’ll want to make sure that employment history on your résumé matches what’s on your LinkedIn profile. Check that your job titles, companies and dates all are consistent on your online profiles. Build Your Network Before You Need It
When you build a network in advance you won’t need to scramble to find those important connections if you unexpectedly find yourself without a job. Make connections in the profession and your area of expertise. Follow career experts on Twitter and LinkedIn. Join Groups on LinkedIn and Facebook and make the effort to engage in the discussions. Put In What You Hope to Get Out
Networking works both ways and the more you are willing to help your connections, the more likely they will be to help you. Make the effort every day to reach out to your contacts.
10. Follow your best practices in identifying a legitimate, nondiscriminatory reason for the hiring decision with the documentation supporting the decision.
Source: 10 Tips for Using Social Media in Hiring HR.BLR.com
How to Tend to Your Network in Only Five Minutes a Day:
Networking online doesn’t need to be time consuming. You can develop your professional reputation and help others in the process through simple etiquette practices that require only a few minutes each day. 1. Be the first to have a point of view. Share a relevant news article and add value by including an observation that may not be so obvious to others. 2. Let them know they’ve been heard. Listen to what your network has to say so you can make an informed suggestion or relevant introduction. 3. Establish yourself as the go-to person. Consider connecting your LinkedIn and Twitter accounts to establish more visibility. Tweet your professional ideas and links into your profile using the hash tag #in. 4. Try to add at least one new person to your network a week. Growing networks are far more effective than stagnant ones. Source: Business Etiquette: The New Rules in a Digital Age Robert Half CPA IN Perspective
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Facilitating Access continued from page 19...
Indiana CPA-PAC As an INCPAS member, contributing to the PAC is one of the most important actions you can take to protect your profession. It gives you access to legislators in both houses and on both sides of the aisle, so you can do your part to protect and promote your interests as a CPA. Where would you be without it? Mobility, substantial equivalency, sales tax on services ... member investments in the Indiana CPA-PAC have helped address these issues and many more in recent years. We challenge you to step up and stay involved.
SAVE THE DATE
2012 Legislators Breakfast
2011 PAC Contribution Goals
$38,300 dollars raised 831 member contributions PAC Trustees met in June 21 and approved $23,000 in contributions to legislators. This includes:
$5,000 to House Democrats $2,500 to Senate Democrats $8,000 to House Republicans $7,500 to Senate Republicans Make your donation online today at incpas.org/member/PAC * Contributions to the Indiana CPA Political Action Committee are not deductible as charitable contributions for federal tax purposes.
The 2012 INCPAS Legislators Breakfast will be held at The Westin in downtown Indianapolis on Jan. 11 from 7:30-9 a.m. The annual legislative event will feature a valuable opportunity to deliver the profession’s message to legislators and key government leaders. As in years past, registration is free to members who invite their representatives – mark your calendars!
BOA Elects New Leadership
The Indiana Board of Accountancy has new leadership that took office on July 1. Shelley Johnson, CPA of Allman Johnson Company, LLC was elected as the new chair for a one-year term. Greg Coy, CPA of Deloitte LLP was elected as vice chair.
Mark Dahlenburg, ChFC, CLU, RFC, LUTCF, AIF, PPC President & CEO of Financial Planning Consultants, Inc.
LAFAYETTE LOCATION Main Oﬃce 3721 Rome Drive Ste B Lafayee, IN 47905
INDIANAPOLIS LOCATION By Appointment Only 8888 Keystone Crossing Ste 1300 Indianapolis, IN 46240
For our upcoming events or to learn more about FPC: Visit our website at www.fpcadvisor.com Contact us at (800) 808-1302 See the re:Source annual CPE course catalog Securies oﬀered through Raymond James Financial Services, Inc. Member FINRA/SIPC
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continued from page 23... Shape the Future of Private Company Financial Reporting The FAF places a lot of importance on the amount of interest in a subject, the diversity of stakeholders represented, and the input from certain critical groups relevant to particular issues. Make your voice heard by writing to the FAF. Write a letter to FAF and make three points: • There is a systemic problem that has not been fixed despite decades of attempts. • Significant differences to the standards within GAAP are necessary to recognize the unique needs of private companies and their financial statement users. • A new separate standard-setting body needs to be created that would report directly to the FAF and not be subject to the FASB’s approval. Emphasize that the separate board is essential to having effective private company financial reporting for the long run. You can provide additional support by educating other stakeholders and urging them to write letters as well. The letter-writing tool is available to everyone, and an education toolkit is accessible on the website to help you explain the issue.
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Source: AICPA To learn more about the challenges facing private companies and their financial statement users, access an issue paper, an FAQ, videos, articles, and free archived webcasts for CPA firms and CPAs in business and industry, as well as other resources, on aicpa.org/privateGAAP. PP 2011 CPA ad:CPA ad clr
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What’s on your mind? Indiana CPA Society On May
As seen on incpas.org/Facebook and incpas.org/ FacebookStudents
11 INCPAS Young Pros joined INCPAS for the latest Young Pros Party: Clubs and Cuisine at Meridian Hills Country Club in Indianapolis!
In this photo: INCPAS members Aaron Reddington and Zenovio Arreola
Indiana CPA Society Several
INCPAS members were honored with Ball State University Alumni Awards in April 2011. Congrats to: Chris Cobb, CPA and Jeff Lathrop, CPA who received Emerging Leaders awards. Justin Hayes, CPA and Amy Ring, CPA each received an Under 30 Award. J. Robert Browning, CPA and James Wainscott, CPA each received an Award of Excellence.
Furthering the CPA Designation
As seen on incpas.org/LinkedIn
Donna Hankins: A relationship with new accounting graduates whose goal is to obtain the certification, I personally feel, would be valuable to the profession, increase ethical commitment as well has facilitating a new CPA’s career toward professional gratification.
As seen on youtube.com/incpas
INCPAS: Episode Five – Legislative and Advocacy Efforts
INCPAS: Episode Six – Top 10 Reasons You Should Serve on a Board
INCPAS: Episode Seven – How You Can Increase the Value of Your Society Membership
CPA IN Perspective
incpas.org/Facebook & incpas.org/FacebookStudents SUMMER
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YOU GET TWO DOLLARS IN HEARTBURN FROM THIS CLIENT FOR EVERY DOLLAR IN FEES?
“LET’S TALK THIS THROUGH” Ron Klein, JD, CFE, VP Claims Counsel for CAMICO, discusses the risks faced by CPAs every day. OK, Ron, is this client relationship really a risk to me? Well, let’s look at the red flags. The client has careless record-keeping practices, is late in providing information and is often non-responsive, causing you delays. What happens if the business fails or you later discover the client had been deliberately withholding information due to unethical activity. How might you be blamed? Isn’t it better to fix the problem and keep the client? Sure, if you can. But at what cost to you, your staff and your firm? But disengagement is such an unpleasant business... Not nearly as unpleasant as getting sued. Proactively managing your risk through client selection and retention is really about upgrading your client base and thus upgrading your firm. OK, so I’m ready to disengage from this problem client. What’s the next step? Calling CAMICO is always your first step. Our risk management specialists will help you tactfully and securely end the relationship. We have dozens of sample disengagement letters and will even help you tailor your own letter to make sure all your bases are covered.
Not insured by us? Give CAMICO a call, and we can start the conversation about lowering your risk – and easing your heartburn – today. See a video of Ron Klein talking about how CPAs can best handle disengagements at www.camico.com/disengage
CE LE B RATI N G A QUARTE R CE NTU RY OF PR OFE S S I ONAL LIAB I LITY I N S U RAN CE F OR CPAS COM PR E H E N S IVE COVE RAG E • PR OACTIVE R I S K MANAG E M E NT R E S OU R CE S • E X PE RT CLAI M S HAN D LI N G
CAM I CO R E PR E S E NTATIVE
CAM I CO PR OFE S S I ONAL LIAB I LITY I N S U RAN CE I S S P ON S OR E D BY:
TOM WARNER WALKER & ASSOCIATES INSURANCE “SOLUTIONS AND SERVICE YOU CAN TRUST” CARMEL & INDIANAPOLIS LOCATIONS TOM@WALKERAGCY.COM 317-439-6611
W W W. CA M I C O . C O M AT L A N TA • N E W YO R K • S A N F R A N C I S C O B AY A R E A CA L L 8 0 0 . 6 5 2 . 1 7 7 2 O R E M A I L I N Q U I RY @ CA M I C O . C O M
On a dark night in Metro Indianapolis a signal is sent from the Indiana Roof Ballroom...
INCPAS members, we need you! Grab your cape and tights* and Join us November 18 FOr...
Fly, swing, climb or kerpow your way to the Indiana Roof Ballroom for a night to recognize successful Exam candidates, award Winners and outgoing leadership.
*Superhero and villain costumes encouraged, but not required.
(317) 726-5000 â€˘ 1-800-272-2054 â€˘ incpas.org/CPAcelebration