the FUTURE isNOW The AICPA’s Paul Stahlin on the accuracy and relevance of The CPA Vision Project, and where we go from here
2010 PAC Goals: Exceeded Evolution: State of the CPA Profession in Indiana CPA Exam Questions Answered Deliver Value. Respect the Public Interest.® incpas.org
Members 2 Chairâ€™s Perspective 3 Members on the Move 4 New Members 6 Day in the Life
Contents C PA I N P E R S P E C T I V E
The CPA Profession 8 Everything CPE 10 Successful Exam Candidates 11 Most Wanted 12 Academic Initiatives 14 Did You Know?
W I N T E R 2 0 11 V o l u m e 7 N u m b e r 4
Features 25 IRS Tax Issues 26 Industry Members 27 Surviving Tax Season 28 2010 PAC Goals: Exceeded 32 The Future is Now 34 Evolution: State of the CPA Profession in Indiana 36 CPA Exam Questions Answered
The Society 18 Regulatory Corner 20 On Your Behalf 22 CPA Celebration Award Winners 40 Socially Speaking
BOARD OF DIRECTORS
CPA IN PERSPECTIVE
O f f i c er s :
PRESIDENT & CEO:
Joseph A. Scheidler, CPA, Chair Charles Johnson, CPA, Chair-Elect Julia R. Barber, CPA, Vice Chair Steven A. Eichenberger, CPA, Vice Chair Kevin G. Kruggel, CPA, Vice Chair
EDITOR-IN-CHIEF/ ADVERTISING INFORMATION:
D ire c tor s :
Bettie A. Caldwell, CPA Matthew A. Cohoat, CPA Douglas L. Dell, CPA Lisa Fleck, CPA Jeffrey P. Fusile, CPA D. Michael Jack, CPA Jennifer Norris, CPA Cynthia L. Ransom, CPA Mark Shaffer, CPA Louis E. Stratton, CPA Kent J. Williams, CPA
Gary M. Bolinger, CAE
Dave Shatkowski MANAGING EDITOR: CONTRIBUTING WRITERS:
Tony Flack Allison Paul GRAPHIC DESIGNER:
P UBL 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: firstname.lastname@example.org web: incpas.org
P u b l i c M em b er s :
Steven R. Johnson Dan Lappin
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Taking a Look Ahead By Joe Scheidler, CPA
ore than 10 years ago the AICPA set out to assess where the profession was and to develop a “Vision” for the CPA profession for 2011 and beyond. It was a bold project, consisting of more than 200 meetings and 3,400 volunteers. Well, here we are, it’s 2011 and the world has changed. The economic climate is different, the political climate (regulation) is different, technology is different … and our profession has also changed. Paul Stahlin, CPA, recently-elected AICPA chair, spoke to the leadership cabinet and emerging leaders alliance in October (his first state society visit since being elected chair!) and discussed his goal of refocusing on the CPA Vision, looking to 2025 and beyond. The project again promises to be a large undertaking to understand the global environment and how CPAs fit in. On a smaller scale, yet no less important, your INCPAS Board of Directors recently participated in a retreat in which we strategically looked at our organization and, through task forces, sought to better understand our value proposition, assess risks, both positive and negative, and start down the path of knowledge management for the benefit of all our members. I’d like to summarize the results of our work. The board determined that a single, comprehensive value proposition was appropriate. Lengthy discussion examined
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the need for multiple value propositions for different member segments … public, industry, new CPAs and more experienced practitioners. But in the end, we determined that “The Indiana CPA Society is the Lifelong Professional Home for Indiana’s Leading CPAs.” In that regard, the Society provides tools and resources to guide members through their careers, upholds the integrity of the profession, enhances the value of the CPA designation, facilitates access, provides a forum for our members to connect, share experiences and have fun, and creates a trusted network of professionals for Indiana and beyond. The board adopted an annual risk assessment process to be conducted by an assigned group (possibly past board chairs) with ongoing review by the entire board. This process will become a natural extension of the strategic planning process and link to our SWOT analysis. Scenario planning work is continuing as we look at various “what if ” assumptions. We are also refining our list of key indicators that will form the foundation for our monitoring of high risk areas. A large portion of our time was consumed discussing knowledge management, which includes more than just CPE as it combines both technical information and experience. As professionals in a financial services role, managing and sharing knowl-
edge is critical to our professional success. Knowledge management was discussed in the context of our current CPE hour requirement, differentiating between continuing education for the sake of “hours” and maintaining professional competence in the areas we practice. Lifelong learning is more than a licensing requirement … it includes risk management, quality service and our own value proposition. A system to help our members manage knowledge needs to be simple (not simplistic), relevant and current. The result of our discussion was more questions, but the board decided to go down the path of exploring the feasibility of a knowledge management system. Stay tuned! When I think about the future, I can’t help but be impressed by the nearly 650 members and guests who attended CPA Celebration on Nov. 19, including over 100 new successful exam candidates. The 1980s theme brought out some interesting and fun reminders of the past, but the turnout makes me enthusiastic about the future for our profession. And to ensure we remain optimistic about the future, I urge you to contribute to the Indiana CPA-PAC and attend the Legislators Breakfast on Jan. 27 at the Embassy Suites in downtown Indianapolis. Have a great “high revenue” season. email@example.com
Members on the Move
Members on the Move Appointments Ali J. Lotfalian, Staff Accountant, Dunbar Cook & Shepard PC. Adam VanWagner, Accountant, Dulin, Ward & DeWald, Inc., Fort Wayne.
Daryn R. West, Tax & Accounting Services, Sanders Accounting, P.C., Evansville.
Promotions Michelle Barker, In-Charge Accountant, Chad Blair, CPA, Supervisor, Juliana Eichman, CPA, In-Charge Accountant, Amanda Garner, CPA, Supervisor, Jennifer Girod, CPA, Senior Accountant, Mark Landrigan, In-Charge Accountant, Kelli Patch, Senior Accountant, and Shawn Sollenberger, CPA, Manager, Baden, Gage & Schroeder, LLC, Fort Wayne. Felicia D. Brown, CPA, Chief Financial Officer, A2S04, Indianapolis. Liz Hemmelgarn, Senior-Tax Services Group and Mo Martz, CPA, Senior-Tax Services Group, Sponsel CPA Group, Indianapolis.
Jeremy Kopeck, CPA, Manager, Jason Phillips, CPA, Manager, Scott Shoemaker, CPA, Senior Manager, Jennifer Winget, CPA, Senior Accountant, RJ Pile, LLC, Indianapolis.
Amanda Meko, CPA, Director, Audit & Other Assurance Services Group, Greenwalt CPAs, Inc., Indianapolis. Cory A. Taylor, CPA, Senior Accountant, Brady Ware & Schoenfeld, Inc., CPAs, Dayton, Ohio.
Scott Walloch, CPA, Managing Advisor, BKD Wealth Advisors, LLC, Indianapolis.
Member News Dale Depoy, CPA, United Way of Central Indiana, has been awarded with an Indianapolis Business Journal CFO of the Year Award in the not-for-profit category and Brian Morris, CPA, St. Vincent Medical Group, has been awarded with an IBJ CFO of the Year Award in the private companies category. Other finalists included Stephen J. Alesia, Independent Concrete Pipe, Stephen Head, Interactive Intelligence, Cindy Konich, CPA, Federal Home Loan Bank of Indianapolis, and John Maas, CPA, Lumina Foundation for Education, Inc. Brian L. Hamil, CPA, Hamil, Lehman & England, PC, National Chair of American Red Cross Biomedical Services, has been awarded the American Red Cross Presidential Award for Excellence.
Katz, Sapper & Miller, LLP renamed its consulting practice to KSM Consulting LLC, and has been nationally recognized as one of the “Best of the Best” CPA firms by INSIDE Public Accounting. Riney Hancock CPAs received the 2010 Alfred P. Sloan Award for Business Excellence in Workplace Flexibility. Somerset CPAs, P.C. has received the 2010 Douglas Trolson Associates Image Award.
Deceased Norman R. Edwards, CPA, passed away in Fort Myers, Fla., last October. Bruce D. Allman, CPA, passed away in Indianapolis last December. Members on the Move announcements should be sent to Ali Paul at firstname.lastname@example.org.
Gino Johnson, CPA, Peachin, Schwartz & Weingardt, P.C., joined the board of directors of C.L.A.S.S. Education, Inc. The Indianapolis Business Journal’s Woman of Influence program recognized Anita W. Sherman, CPA, Greenwalt CPAs, Inc.
Firm News Brady Ware & Schoenfeld, Inc., CPAs has been named as one of the Top 200 firms in the United States on INSIDE Public Accounting’s inaugural Top 200 list. CPA IN Perspective
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New Members Affiliate Business Professional
James B. Cates, Eli Lilly & Co. Thomas L. Chrzanowski, Clifton Gunderson LLP Jacob R. Franklin, The National Bank of Indianapolis Francisco Garcia, Valmont Industries Sean P. Lepsky, BKD, LLP Mary E. Nally, McGladrey & Pullen, LLP Patricia R. Reynolds Rupal Thanawala, PricewaterhouseCoopers, LLP Jaleigh White, Fifth Third Bank
Art Arbuckle, Clifton Gunderson LLP Deidre J. Bailey, Root & Associates Brad Deck, Allman & Company Gregg Herke, Free Methodist Church of North America Jacqueline M. Lemke James Nestor, Katz, Sapper & Miller, LLP Tiffany Robertson, East Chicago Community Health Center Cynthia Rowe, Eye Surgeons of Indiana, PC Karen K. Springer, Midwest Tax Group Mikel G. Tiller, Indiana University
Natalie L. Herr, London Witte Group, LLC Carol Parmelee, Girardot, Strauch & Co.
Associate Corey J. Arvin, Deloitte Jayapradha Balakrishnan Brandon Barrientos, Crowe Horwath LLP Lee J. Bolka, Veolia Water North America Monica G. Castanon, Clifton Gunderson, LLP Spencer C. Conroy, Crowe Horwath LLP Kristopher R. Decker, Deloitte David M. Heuck, Evansville Water & Sewer Utilities Emily D. Jones, Deloitte Nicholas D. Jordan, BKD, LLP Jonathan E. Joseph John D. Niswonger, Crowe Horwath LLP Brittany Schutter, Katz, Sapper & Miller, LLP Craig B. Todderud, ent: imler, cpa
Candidate Zenovio Arreola Austin Basinger, Sherck, Hussey, Johnson & McNaughton, LLC Berry Bingaman, Myers & Stauffer LC Evan T. Brown, Petrow, Vincent & Kane, CPAs Travis L. Cheney, Rea Logan & Co. LLC Khadidiatou Cisse, Vasquez Group, LLC Mitchell A. Clark, Estep Burkey Simmons LLC Brittany Cooley, BKD, LLP Megan J. Cottingham, RJ Pile, LLC Monique Crowell, Lumina Foundation for Education, Inc. Laura A. Felker, Brown, Smith & Settle, CPA Nathan J. Fox, BKD, LLP Matthew Gadus, BKD, LLP
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INCPAS welcomes new and returning members from Aug. 1-Oct. 31, 2010.
Michelle L. Hedinger, BKD, LLP Alex D. Hilt, Umbaugh Tyler Johnston, BKD, LLP Carmen Keller, Dawes & Pugh CPAs, LLC Amy M. Kerr, L. M. Henderson & Company, LLP Brittney Knies, Watermark CPA Group Bradley Koenig, Kemper CPA Group, LLP Evan G. Meltzer, BKD, LLP Melissa Merrick, Greenwalt CPAs, Inc. Todd F. Moritz, GT Solutions Ryan P. Muller, Zehner, Maloy & Associates, CPAs, LLC Nicole N. Naragon-Blevins, Naragon & Purdy, Inc., CPAs Kylie N. Norman, Bradley & Associates Jennifer Pawlowski, McGladrey & Pullen, LLP Robert D. Reynolds, London Witte Group, LLC Felicia Rupp, Greenwalt CPAs, Inc. John D. Schmidlin, Sherman, Barber & Mullikin Jana Simurkova Derek C. Smith, BKD, LLP Richard Smith, BGBC Partners, LLP Brain K. Stalter, Crowe Horwath LLP Darryl N. Stevenson, BKD, LLP Kathryn Sursa, BKD, LLP Jacob Tobison, ent: imler, cpa Gregory Turner, Clifton Gunderson LLP Thomas Tursi, BKD, LLP Adam M. VanWagner, Dulin, Ward & DeWald, Inc. Casie Marie Williams, Weinzapfel & Co, LLC Heather Wilson, Central Indiana Ethanol LLC Hillary N. Winship, K.B. Parrish & Co, LLP Joseph Zender, BKD, LLP
Resident David R. Ahles, CPA Terri C. Anderson, CPA Katie R. Aurs, CPA, Century Aluminum of Ky. Eric F. Bischoff, CPA Kyle M. Bowman, CPA Kathleen A. Buck, CPA, Calumet Specialty Products Partners, LP Jordan J. Click, CPA, KPMG, LLP Kristine E. Conley, CPA, ArcelorMittal USA Adam Cookerly, CPA, K.B. Parrish & Co, LLP Jeremy J. Coon, CPA, JC Financial Services, Inc. David A. Crist, CPA, TransCorr LLC Amy C. Crow, CPA, Crowe Horwath LLP Bradley R. Davis, CPA, First Merchants Corporation Rebecca A. DePoy, CPA, The Braun Corporation Shannon Downs, CPA, NIBCO, Inc. Jessica A. Eckerle, CPA, Umbaugh Gregory W. Elkins, CPA, BKD, LLP Thomas W. Fink, CPA, Deig Bros. Lumber & Construction Co. Melissa K. Fischer, CPA, Aces Power Marketing, LLC Anthony R. Francis, CPA, Crowe Horwath LLP Wenona C. Freeman, CPA, Worms Way, Inc. Brittany K. Gerig, CPA, Crowe Horwath LLP Rebecca J. Gill, CPA, Blueprint Investment Advisors, Inc. Gregory A. Ginder, CPA, Marian University Jennifer M. Girod, CPA, Baden, Gage & Schroeder, LLC
Jonathan L. Goodburn, CPA, Lauth Group, Inc. Pankajamma Gunupati, CPA, Harding, Shymanski & Co. Keith E. Hall, CPA, Chempetitive Group, LLC Calvin J. Hamstra, CPA, Crowe Horwath LLP Jason T. Heck, CPA Rene M. Holle, CPA, Roche Diagnostics Corporation Stanley C. Hoskins, CPA, S.C. Hoskins & Co. Rebecca J. Howe, CPA, Worms Way, Inc. Marc A. Hunnicutt, CPA, Toyota Tsusho America, Inc. Eric A. Irwin, CPA, Crowe Horwath LLP Ting-Yu Juan-Roeder, CPA, Telamon Corporation Tyler P. Juckem, CPA, Crowe Horwath LLP William E. Kandel, CPA, American General Finance Adam J. Kellerhals, CPA Beth B. Kern, CPA, Indiana University South Bend Lisa K. Kipper, CPA Dianne M. Kliewer, CPA, State Wide Aluminum Joseph A. Kraus, CPA, Dorel Juvenile Group Trevor S. Kropf, CPA, Kruggel , Lawton & Company, LLC Patrick R. Lee, CPA, McGladrey & Pullen, LLP Mark A. Lennert, CPA, Dauby Oâ€™Connor & Zaleski, LLC Barry P. Lewis, CPA, Core Business Technology Solutions Brandon L. Lindsay, CPA Callie C. Mehling, CPA, Katz, Sapper & Miller, LLP Jeffrey L. Miller, CPA Melissa A. Miller, CPA, First Financial Bank Michael H. Mitchell, CPA, F. A. Wilhelm Construction Co., Inc. Eric A. Mlynarczyk, CPA Matt Nobles, CPA, KPMG, LLP Hiren J. Patel, CPA, The AES Corporation Zachary F. Paulson, CPA Jon S. Pilarski, CPA, Skyline Corporation Stephanie Pischalko, CPA, Crowe Horwath LLP Kathryn A. Pitts, CPA, Milestone Advisors, LLC Robert E. Rhee, CPA, Beers, Mallers Backs & Salin, LLP Kevin A. Rhoton, CPA, SC Bodner Kristie L. Richardson, CPA, Federal Home Loan Bank of Indianapolis David R. Ritzler, CPA, Butler University Aubrey D. Roberts, CPA, Kemper Technology Consulting Shane A. Rodgers, CPA, Zimmer, Inc. Carol S. Rudd, CPA, Solid Platforms, Inc. Donna M. Schroering, CPA Jason R. Schultz, CPA, Fitzgerald/Isaac LLC Benjamin A. Scoles, CPA, Horizon CPA Services, Inc. John R. Scudder, CPA, Vera Bradley Cecilia E. Sequeira, CPA, CLS Consulting Abigail L. Shorter, CPA, Column Capital Advisors, LLC Gregory J. Smith, CPA, cfd Accounting, Inc. Kyle C. Smith, CPA, Blue & Co., LLC Tanja S. Snively, CPA, Monroe County Bank Kyle F. Spina, CPA, L. M. Henderson & Company, LLP Joseph D. Stafford, CPA William J. Storey, CPA, Hill-Rom Services, Inc. Terrance J. Sullivan, CPA, T. J. Sullivan Shari Sutherland, CPA, Crowe Horwath LLP Nancy L. Thurber, CPA, Parkview Health
New Members John D. Toles, CPA, PricewaterhouseCoopers, LLP Matthew K. Troyer, CPA, Lippert Components, Inc. Todd A. Walker, CPA, Mead Johnson Nutritional Group Kyle P. Waninger, CPA, Kemper CPA Group, LLP Michael S. Wilson, CPA, University of Indianapolis Claire A. Wisecup, CPA, Dauby O’Connor & Zaleski, LLC Dan J. Wolke, CPA, WellPoint, Inc. Jonathan D. Worthington, CPA, PricewaterhouseCoopers, LLP Tracy L. Wyne, Sherman, Barber & Mullikin Patricia J. Yonkers, CPA, Logan Community Resources, Inc. Anna M. Zakrowski, CPA, Crowe Horwath LLP Jonathan D. Zurcher, CPA, Larry D. Zurcher, CPA
Student Allauddin Abdulghani, Purdue University Calumet Mohammed Abuzayda, Indiana Tech Rachell J. Acevedo, Purdue University Calumet Julie Adams, Indiana Wesleyan University Allison Aguilera, University of Evansville Kathryn L. Albers, Anderson University Amir Ali, Indiana University Sarah E. Ames, IUPUI Eric R. Barnard, Purdue University Calumet Zachary S. Baron, University of Saint Francis Vimal Bava, Ball State University Shivangi Baxi, Indiana University Lamarr M. Beal, Purdue University Calumet Robert Beemsterboer Jessica Bever, Butler University Nicholas A. Bobowski Celestine M. Bowens-Martin, Marian University Sean P. Boyle, Indiana University Northwest Grant K. Brackin, Marian College Kristie A. Browning, Indiana University Northwest Jade Buchanan Chad E. Buckley, Purdue University Calumet Erin Bulanda, Indiana Tech Michelle Burke, University of Indianapolis Marissa K. Butler Nicole L. Campton, Strayer University Ross E. Cerbus, Indiana University Kokomo Cheuk Shing Choi, Indiana University Angelika H. Clark, University of Southern Indiana Tyler Clarke, Marian University Laura Coffel, Indiana Wesleyan University Aimee J. Conard, Saint Mary of the Woods College Allison Courtney, Saint Mary’s College Angela M. Cox, Indiana State University Liming Cui, Indiana University Shanji Cui, Indiana University Kyla Dahl Anna Dai, Indiana University Carla L. Darce, IUPUI Zachary A. Davis, Marian University Maggie L. DePaola, Saint Mary’s College Amber L. Detmar, Purdue University Calumet Kaitlynn E. Dougherty Mary Duckworth Asia Dumas, Purdue University Calumet Jared R. Duncan, Marian University Amy N. Edwards, Indiana Wesleyan University Danielle Engle Andrew G. Epstein, Indiana University Clarissa Everhart, Indiana Wesleyan University LeSashea M. Feagin Aaron Field, University of Southern Indiana Lucia M. Flores, Purdue University Calumet Angela Funston, Indiana University Brittany L. Gadus Cassie Gdaniec, Trine University
Andrew Gentzkow, Indiana University Trent D. Gerbers John Gillard, Indiana University Nicole L. Goodale, Purdue University Calumet Margary L. Goodwin, Indiana University Kyler Gray, Indiana University Betsy J. Grogan, Indiana University South Bend Alexander C. Grunstein Reena Gupta Arwa T. Haddad, Purdue University Calumet Ashley M. Hancock, University of Southern Indiana Bonnie L. Harold, IUPUI Nakeama K. Harris, Purdue University Calumet Jennifer A. Harrison Peter Haupers, Indiana University Derek K. Hayes, Purdue University Calumet Kaycie Hibdon, University of Southern Indiana Micah A. Hill, Indiana State University Dylan Hollenberg, Indiana University David M. Holmes, Marian University Jessica L. Holubiak, Purdue University Calumet Carol Hooten, IPFW Tareef Horani, IPFW Ryan D. Hornback Michael J. Huff, University of Evansville Richard J. Jacobsen, Purdue University Calumet Alicia A. Jailor, Indiana Tech Fort Wayne Qiuyan Jiang, Indiana University Jinal J. Jinwala Katherine L. Jones, Indiana University Northwest Sarah Jones, Purdue University Bradley R. Kawiecki, Purdue University Jordan T. Keil, IPFW Adrian A. Kellams, Indiana University Shaun M. Kingston, University of Southern Indiana Sarah E. Knoch, Manchester College Mahek B. Kothari, Indiana University Kelsey Kreke, University of Southern Indiana Ben Kurey, Indiana University Amanda M. Laflamme, Anderson University Julie M. Latta, Purdue University Calumet Mary L. Lee Matthew N. Leist Hailey R. Letts Amy J. Liechty, Indiana Tech Fort Wayne Bryan M. Loiselle, Indiana University Yesenia Lopez, Purdue University Calumet Ali J. Lotfalian, IUPUI Herman Loyd, Purdue University Calumet Yuan Lu, Purdue University Calumet Joseph Macri Ryan Madison, Ball State University Rachel Majercik Christopher J. Mazzone, Indiana University Patrick McBride, University of Southern Indiana Tammy S. McCauley Amy B. McClaren, Indiana University Kokomo Steven M. McKinney, IUPUI Christopher J. Merkel, Indiana University David Merry, Indiana University Danielle Metzger, University of Southern Indiana Zach Meyer, IPFW Marli K. Miller, University of Indianapolis Milton J. Miller, Indiana University Jonathon Moulden, Indiana University Crystal L. Mullins, DeVry University Peter D. Novak, Purdue University Calumet Amanda O’Brien, Anderson University William T. Odenweller, Ivy Tech Fort Wayne Duk Y. Park, Indiana University Paul Patel Michael Patterson, Indiana University South Bend Nick Patterson, Indiana University
Ryan N. Peters, Indiana University Nicole E. Phillips, Indiana University Kamila Piorkowski, Purdue University Calumet Brittni M. Plys, Purdue University Calumet Michael Prendergast, Indiana University Justin D. Preston Feng Qu, Indiana University Genesis M. Randolph, Purdue University Calumet Michael L. Reed Kristin L. Reid, Indiana University Heather A. Reimschisel, Indiana University Fort Wayne Matthew Reinoehl Cheyenne N. Rench, Ball State University Kimberly A. Rethlake, IUPUI Nicholas W. Reuscher, Ball State University Zachary R. Roeda Jeremy D. Rollins Caressa Rospierski Daniel A. Rutigliano, Indiana University Tripthi Sabareesh Andres D. Santiago, Indiana University Northwest Emily C. Schminke, University of Southern Indiana Jessica Schuemann, IUPUI Julia K. Shafer Matt Sharp Aimee Shaw, Ball State University Wade Shidler, Butler University Teresa M. Sims, Indiana Tech Fort Wayne Karamvir Singh Lindsay Slavick, Valparaiso University Daniel M. Smith, Grace College Juanita M. Snyder, Purdue University Calumet Sarah J. Snyder Arthur N. Spencer, Marian University Leary E. Stamper-Williamson, IUPUI Jason Stanfield, Purdue University Melanie T. Stathkis, Purdue University Calumet Tiffany Steinbrunner Hannah M. Stowers, Indiana Wesleyan University Amber Stum, Indiana University James Stuthers, Indiana State University Lucas Taylor, University of Evansville Tyler R. Tedford, IUPUI Jeffery L. Thomas, University of Southern Indiana Katie Tormanen, Indiana University South Bend Derek E. Turner, University of Indianapolis Murtaza Udaipurwala, Purdue University Calumet B. Scott Ulm, Indiana Tech Clemence Umugwaneza, Indiana University South Bend Abigail M. Unternahrer, Anderson University Nicholas Dalton Vandergrift Joshua J. VanDusen, Indiana Tech Fort Wayne Nick Vicino, Indiana University Christine Walker Cynthia Wall, IPFW Daryn R. West, University of Southern Indiana Jeremy Widbin, Grace College Ilona A. Wiejak, Purdue University Calumet Victoria M. Willems, IUPUI Shontae Williams, IUPUI Gene B. Witchger, Marian University David A. Wohlreich, IUPUI Aiyan Xing, Indiana University Meng Xu, Purdue University Calumet Jonathan D. Yochum, University of Southern Indiana Xiaoqian Yu, Purdue University Calumet Syed M. Zaidi, Purdue University Calumet Want your name the list? on the list? Want youronname Become a member of the Indiana Become a member ofCPA theSociety by calling: 1-800-272-2054 or (317) 726-5000.
Indiana CPA Society by calling: 1-800-272-2054 or (317) 726-5000. CPA IN Perspective
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Day in the Life: Rick Tompos
“Day in the Life” is a new series that takes a detailed look at the day-to-day life of young CPA professionals. Here we follow a busy day in the life of Culver Academies Controller Rick Tompos, CPA. See how this INCPAS member balances it all. Name: Richard J. Tompos, CPA Position: Controller/Assistant Treasurer Company: Culver Academies, Not-for-profit, Co-ed College Preparatory School and Summer Schools and Camps Location: Culver School Sizes: 790 during the school year and 1,350 during the summer months History: I graduated from Valparaiso University with a bachelor of science in accounting in 1990. I began my career at Price Waterhouse (auditing Culver) and have been employed by Culver since 1997. Why I became a CPA: Respected profession helping organizations grow and prosper Favorite thing about being a CPA: I always tell my friends, it is not about counting beans…the computer does that. It is about the CPA’s broad base of knowledge and ability to help organizations remain efficient and effective in this dynamic world.
6:45 a.m. Wake up and help my wife get our three kids moving. They are very involved in sports, so making sure each has the necessary equipment for the day makes the mornings hectic. 7:30 a.m. Drop kids off at school and tell them to “make it a great day!” Next stop is the local coffee shop for a Chamber of Commerce in Culver board meeting. Giving back to the community has always been important to me. Being on several organizational boards allows this to happen rather frequently in a small town. 8:30 a.m. Arrive at the office and immediately begin responding to e-mails and voicemails. Culver Academies has 520 employees during the school year and 780 during the summer months, which creates a lot of communication opportunities! 9:30 a.m. Office meeting to make decisions and plan our office work for the upcoming week. Our team handles all cash management, accounts receivable, accounts payable, fixed assets, and departmental budgeting and reporting for the institution. I oversee these aspects and provide ideas to improve the processes.
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10 a.m. Call our insurance brokers to decide what changes are necessary to our property and casualty insurance policies. Culver Academies has 1.2 million heated square feet of buildings, 1,800 acres of land, 100 horses, and 400 watercraft to insure. The job of protecting this much property and those that utilize the property is very challenging. 10:45 a.m. Check e-mails and voicemails again. Review and take some notes for an upcoming meeting with the head of schools (like a company president). His busy schedule only allows us to meet once a week, so being prepared is critical.We talk about everything under the sun, which makes my position extremely interesting and creates a life-long learning environment. 11:30 a.m. A working lunch today is with our banking partners, strategizing the best way for us to meet our cash and debt needs, given the several construction projects currently in progress on our campus. A quick call to the development office allows me to anticipate when the very generous donations to help support these projects will occur. Without our generous alumni, parents, and friends we would not be able to offer such rich and diverse programs to our students! 1 p.m. Receive a call from our external auditors about planning the upcoming preliminary work and how that will best fit in our schedules. The overall foundation audit, a defined benefit retirement plan audit, the new 403(b) audit, and their review of our prepared Form
Day in the Life: Rick Tompos
990 are discussed. The first couple years after I left Price Waterhouse were very interesting … being on the other side of the audit!
1:30 p.m. Gather several department managers and discuss their budget needs for the remainder of this year. If some departments are having a tougher time than others in any particular year, we work together and develop a strategy so the organization can meet the overall budget. This sense of teamwork is very important for a not-for-profit organization. 2:30 p.m. Attend the weekly all-school meeting in our auditorium. Our students organize and run the 30-minute meeting. Awards, upcoming events, video clips and more formal presentations are a small sampling of what occurs when the entire student body, faculty and staff get together once per week. This truly builds a sense of community and allows students to learn and experience leadership characteristics. 3 p.m. After the all-school meeting, each faculty and staff member acts as a mentor and meets up with four to six student mentees for another 30 minutes. This one-on-almost-one contact allows students to discuss their lives with an adult on campus. Sometimes the mentors bring a topic for the group to discuss. 3:30 p.m. Another check on e-mails and voicemails. I review several reports and offer some suggestions and guidance to each preparer. 4 p.m. Conference call with the finance and investment committee of the board of trustees and our investment advisor. We talk about the past month’s endowment investment performance. The economic outlook is discussed and if any strategic changes to our asset allocation is necessary. I take the minutes and prepare them for inclusion in the full board of trustees upcoming board meeting materials. 5 p.m. Finish some loose ends and make a list of items to complete for tomorrow. Head home to pick-up our son and get to football practice by 5:30 p.m. (another great benefit to living in a small town…it only takes five minutes to get anywhere). I have been coaching for several years and enjoy the interaction with youngsters on the athletic field and encouraging them to give their best. 7 p.m. Practice is over and I get home to grab a quick bite to eat before heading out to attend a finance council meeting at our local church. Being a CPA allows you to assist other organizations in so many ways. We are looked upon as finance professionals and many of my CPA friends serve in this capacity tirelessly. 8:30 p.m. Get home and ask the kids about their day. My wife and I help the kids with any homework they could not quite understand. Each night we make it a point to tuck them in bed. 9:30 p.m. My wife and I get to spend some time reviewing the day’s activities and planning the personal side of our lives. High challenge and high reward is the best way to describe a day in the life of a CPA!
Do you think a day in your life would make a good addition to our new series? Contact INCPAS Senior Manager – Member Communications Stephanie Parton at email@example.com to find out how you can share your story. CPA IN Perspective
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The Indiana CPA Society is dedicated to your professional development. Check here for listings of notable upcoming INCPAS CPE opportunities, up-to-date information you’ll find helpful as you fulfill requirements, and statistics that support INCPAS as a sensible professional development option for all Indiana CPAs.
Your CPE savings through INCPAS is worth bragging about to your colleagues Do you have colleagues who need to fulfill professional development requirements, but are unaware they can save hundreds with an INCPAS membership? Fill them in on the facts. INCPAS professional development has a perk that is invaluable to INCPAS members with tight budgets – SAVINGS. Members receive discounted registration for seminars, conferences and webinars the Society offers throughout the year. Moreover, you can take advantage of early bird rates and save 25 percent off your total CPE for the year with the INCPAS Value Plus discount. The savings add up quick. Budgeting professional development is a main priority. When you crunch the numbers and take into account the cost of each course, the value of your CPE savings can easily exceed the cost of an INCPAS membership. In an unstable economy, the savings through INCPAS professional development is unwavering. Take a look at typical prices for 4- and 8-hour professional development courses, and compare prices. We’ve also crunched the numbers for INCPAS conferences. Your colleagues who aren’t members will be shocked!
VALUE PLUS $2,245 $1,495 - 25% - 25% $1,684 $1,121
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Typical nonmember cost per 40 hours
Typical member cost per 40 hours
Value Plus Discount
Value Plus Discount
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$225 $449 $474
INCPAS A&A Conference
$299 $324 member price
Value Plus allows you to save an additional 25 percent off your total professional development for the year if you register for 40 hours in any combination of seminars or conferences. Become a member and save even more – check out the savings!
$563 Amount saved by member using value plus (vs. nonmember)
Notable upcoming professional development Look Ahead to Spring Fever 2011 As we enter the third and final year of the reporting cycle, maintaining your license should be easy and painless. There is no better way to wrap-up your requirements than by attending a three-day event packed with CPE opportunities at one location. Mark your calendar for INCPAS Spring Fever on May 24-25. You’ll have your choice from 12 different seminars covering a variety of topics, and you can earn up to 16 hours of CPE over three days.
May 24, 2011
May 25, 2011
FASB Review for Industry: Targeting Recent GAAP Issues Governmental Accounting and Auditing Update Critical Skills for Creating Great Budgets: Maximizing Profits, People and Power
1-4:30 p.m. Real-World Business Ethics for CPAs in Business & Industry: How Will You React? Studies on Single Audit and Yellow Book Deficiencies Thirty-Plus Practical Tools and Techniques for Making Your Key Financial Decisions
Cash and Tax Basis Financial Statements – Preparation and Reporting Frequent Frauds Found in Not-for-Profits Controllers Update: Latest Trends for Today’s Financial Manager
1-4:30 p.m. Forensic Accounting: Fraudulent Reporting and Concealed Assets Right the First Time: Cases in Not-For-Profit Accounting and Auditing Lean Accounting and Management: Improving Profitability by Streamlining Operations
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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. :INCPAS Member
From the July/August 2010 Window Nichole R. Abbott Tina M. Angelo, CPA Kathleen A. Argus Lindsey M. Bauer, Kruggel, Lawton & Co, LLC Ronald J. Bennett Berry M. Bingaman, CPA, Myers & Stauffer LC Tyler K. Blake Andrea M. Bolyard, CPA, David L. Wade & Associates, P.C. Ryan K. Bowden, L. M. Henderson & Company, LLP Tomoka M. Brabham, CPA Tyson T. Brown, CPA Nathan C. Carpenter, CPA, McGladrey & Pullen, LLP Elizabeth A. Cedoz Bernadette M. Cetera Travis L. Cheney, Rea Logan & Co. LLC Jon Clydesdale Ryan J. Collins Shay J. Comoglio Kris E. Conley, CPA, ArcelorMittal USA Adam D. Cotter Kallie N. Crider, CPA Joshua R. Crow Alison N. Daeger Cheryl Dann-Barrick Kirk L. Davis, CPA Daniel F. Diagostino, CPA Sarah B. Dixon Krista Dozier, BKD, LLP Cori R. Eck Alfons Eggink Chase J. Emge, BKD, LLP Lyndy M. Errett, Ernst & Young Chance M. Finucane Samantha L. Fulkerson, CPA, Kemper CPA Group, LLP Josh Gallion, London Witte & Company, LLP Megan Galvin Tim Gates, CPA, K.B. Parrish & Co, LLP Jennifer M. Girod, CPA, Baden, Gage & Schroeder, LLC Amanda L. Gonterman, CPA Jessica K. Green Derek D. Grimm Guadalupe Guzman Sarah Haddon Ashley Hagan, Dauby O’Connor & Zaleski, LLC Daniel Halter
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Ashley D. Halterman Quinn Haselhorst John R. Hayden, CPA, Old National Bancorp Jason T. Heck, CPA, Basic American Financial, Inc. Bradley K. Hedlund Amanda E. Hedrick Matthew Hernley Christine M. Hickman, CPA Nick I. Holton, Katz, Sapper & Miller, LLP Rosa R. Houtsma, CPA, Swartz, Retson & Co., P.C. Marc A. Hunnicutt, CPA, Toyota Tsusho America, Inc. Christopher A. Hupe Jeremy N. Huser Brian C. Jamison, CPA Guangying Jiang, Clark & Leucht, P.C. Jason Jay Kempf, CPA Mackenzie M. Kinder Colin King Jessica M. Kline, CPA, McGladrey & Pullen, LLP Britt Knies, Watermark CPA Group Steven A. Kocaj, Crowe Horwath LLP Kay Komatsubara Brad A. Krause Kyle A. Kuczynski, CPA Charles J. Long Jim D. Lyons Mike R. Manship, CPA, Kemper CPA Group, LLP Brian J. Marchino, CPA, Harding, Shymanski & Co Misty L. Massey, Brown, Smith & Settle, CPA Kristin C. McCurdy Stephanie A. McLaughlin, CPA, Rodefer Moss & Co PLLC Timothy D. McLean Michael L. McVay Melissa A. Miller, CPA, First Financial Bank Matthew L. Miller, CPA Roxana Moghaddam, CPA, Eli Lilly and Company Kyle D. Nagy Michael Noth, CPA Nicholas A. Payne Carrie M. Perkins Reanetta Y. Perkins Vicent C. Petrescu, CPA Julie D. Phillips Tim Phipps, Granger Tax & Accounting David R. Puffett, CPA, DFAS Robert T. Recht Bryan K. Rector, CPA, Indiana University Health
Brett Reifers, Deloitte Bobby G. Riddell Jessica L. Rolle Scott J. Rudolf, CPA Katherine A. Schipp Jon J. Schwander, CPA, Dauby O’Connor & Zaleski, LLC Katie Sikorski, CPA, Covance Central Laboratory Services, Inc Chen Song Jason Stanfield Justin S. Stenberg, CPA, BKD, LLP Alex E. Storer, Blue & Co., LLC Bill J. Storey, CPA, Hill-Rom Services, Inc Chika H. Sunoto, CPA, Jurgonski & Fredlake CPAs Camecia L. Taylor, CPA Jake Tobison, ent: imler, cpa Craig B. Todderud, ent: imler, cpa Kathy J. Ton, CPA, Ondrovich & Associates, PC Tracey J. Traub, CPA, That’s Good HR, Inc Jayme L. Via, CPA Michael R. Vierk Tim E. Vogelgesang Leah C. Webb Jennifer Werner, CPA Travonna P. West, CPA, CNO Financial Group Noah L. Wethington, CPA Joseph G. White Daniel A. Wilder, CPA, BKD, LLP Krissy A. Wilkerson Scott A. Williams, CPA, Crowe Horwath LLP Trent B. Wilson Jeremy J. Wilson Thomas Wilson James T. Wolf Andrea J. Wright, RBSK Partners, PC Felix Wu Kyla M. Zartman Mingjun Zhu
Do you know someone on this list? Weâ€™re looking for these successful Exam candidates from 2009 who are not current members! If you know, or work with, any of these successful Exam candidates, contact Courtney Kincaid at email@example.com or 1-800-272-2054. Deanna L. Addison, CPA Rong W. Alexander Drew T. Allenspach Loreta Alminauskas Timothy D. Amlung Jorge L. Arredondo Aaron M. Babb Richard L. Baughman Jonella M. Beale, CPA Matthew C. Beaven Dillie S. Berberi Amanda K. Berberich Brian D. Berg Melody A. Blanchford Nicole J. Blue Jeff A. Bodkin Bernard J. Bolka Robert A. Bonds, CPA Adam R. Bostock Joshua B. Bowman, CPA David S. Boyer Michelle R. Bradley, CPA Cortney L. Brafford Kyle D. Brown Erin L. Brunette Hope M. Burdon Justin D. Burtner Sharon I. Busenbark Wesley G. Campbell Melissa D. Carandang David C. Carley Jeffrey D. Carr Matthew R. Catlin Caroline A. Chanzu George P. Chasteen Kayla Lynn Cheesman Wei Ching Chen Joseph M. Cholewa Anirvan Choudhury Matthew A. Clark Clint H. Coleman Katherine A. Colin James W. Colver Misty M. Cook Deborah K. Copeland Charissa M. Crouch Allison W. Culwell Charles L. Decker
Jessica L. Dupree Elizabeth A . Easterday Jeffrey M. Eastman Tara M. Eberhart Lynn L. Elms Kevin R. Farley Katie L. Fedler Julia R. Fike Victoria L. Foulke Jeff R. Fowler, CPA Gavin P. Fox Rockne M. Freitas Ryan S. Gage Sally A. Gardner Cintia A. Gudorf Matt W. Haakinson Steven H. Halber, CPA Michael J. Hart Bradley R. Haskell Kathryn L. Hatfield Sarah H. Hengesbach Mark R. Hildebrand Travis R. Hill Thomas M. Hinkle, CPA Lisa M. Hofferman Jessie Hu Xiaoli Hu Amber L. Hughes Christopher H. Irick Michael B. Jaarda Ieva M. Jansons Ben A. Jarvis Michelle R. Jerge Denise L. Jutte Julie M. Kaiser Zukhra Karasova Shawn C. Kaus Molly E. Kelly Kay Kim, CPA Aaron J. Kim Sunjin Kim Keith A. Knight, CPA Mikhail V. Kostikov Jamie L. Kueber Hunter M. Land Alyson N. Lantz Sarah Larew Rachelle C. Large
Myungchul Lee Ryan P. Leist Shannon N. Leitgabel Yangjin Li Todd A. Lindley Candice K. Lockhart Tiffany K. Longstreth, CPA Yuan Yuan Lu Philip D. Martin Michelle R. Martin Kevin M. McGuffey Scott A. Milkey Elizabeth J. Millis Leah B. Missi James W. Moore Amy L. Moreland Christina M. Moskal Ruth Ann A. Murray Bryan D. Netzly Molly A. Oâ€™Brien Chulmin Oh Nels E. Olson Masako Omae Victoria S. Overdorf Sara M. Padgett Cole W. Patuzzi Eric R. Pozgay Robert A. Puza James W. Rau Satish B. Ravella Jennifer Y. Rayburn David L. Reed Chad R. Reithmiller Eric M. Rexing Matthew Robinson Shannon E. Rose, CPA Shannon M. Rostorfer, CPA Justin M. Sanchez, CPA Nicole R. Sanderlin Steven M. Sapp Kimberly M. Schelling Lindsey K. Schmitt Beth A. Scott, CPA Jason D. Semple, CPA Craig M. Senciboy Donovan A. Sexton Mark A. Shanley, CPA Mark J. Shekleton
Yifan Shi Katherine A. Shoener Tyler J. Showalter Andrea C. Siebecker Janine M. Siefert Jason C. Sieman Erich R. Singer Clint M. Singleton Cynthia M. Slaven Livy D. Smith Stacy L. Smith Corey T. Snyder Laura M. Spinosa Joshua B. Stangle Maranda L. Stars Nicholas J. Stephenson Andrew W. Steury Lindsey M. Stevenson Kendra M. Strickler Evan J. Stroman Keith A. Stuart Steven M. Sullivan Kristin E. Swank Peter J. Szostak Anthony L. Teats Michael M. Thomas, CPA Sarah L. Thomas Benita P. Tilley Laura A. Toberman Nic G. Topoll Daniel Tritch Michael Tuttle Ouseph T. Vadakkumchery Arthur Vasquez Christina N. Viers Trenton W. Wargel Lisa K. Waters Bruce Weisman, CPA Adam C. Wernke Christopher C. Westerbeek Jacob R. White Darrell R. Woodman Ran Xu David M. Yates Xiaoling Ye
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The annual INCPAS Case Study Competition featured 48 brilliant future CPAs, and Game On: CPAs in Action exposed over 100 minority students to the CPA profession through interactive discussion and office visits.
INCPAS Case Study Competition INCPAS student members that participate in the annual case study competition work HARD! Let’s clarify, these students are such overachievers that the INCPAS Case Study Project Team put a limit on the number of pages the students could submit. Over the years, written reports expanded to 100-plus pages. Imagine judging 12, 100-plus page reports in 10 days. This year, the teams spent 10 days working cases for client retention. Exhibits, interviews, constant discussion and edit after edit led to all 12 schools turning in cases on Nov. 1. The judges had their work cut out for them and after two weeks of evaluation, the finalists were announced. Butler University, Indiana University, Indiana UniversityPurdue University Indianapolis, Saint Mary’s College, the University of Southern Indiana and Valparaiso University were named finalists and invited to present their findings to a panel of judges on Nov. 19, 2010. After impressive performances by all six teams, Saint Mary’s College was ultimately awarded first place. Valparaiso University placed second, while University of Southern Indiana captured third place. The three remaining finalists, Butler University, Indiana University and Indiana UniversityPurdue University Indianapolis, each earned honorable mention awards. The first place team from Saint Mary’s received $1,000 per student. Valparaiso and USI team members received $750 and $500
CPAs in action 12
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St. Mary’s College reacts to winning first place.
Case Study Sponsors each respectively. Fourth through sixth place team members each received $100. The winning team from Saint Mary’s included Allison Courtney, Maggie DePaola, Elizabeth Reed, and Maureen Temchuk. Mary Ann Merryman was the faculty advisor. The second place team from Valparaiso consisted of Ni Cai, Shaunna Dangremond, Rachel Majercik and Lindsay Slavick. The faculty advisor was Marc LeClere. The third place team from USI included Celeste Drew, Aaron Field, Patrick McBride and Anna Shade. The faculty advisor was Jeanette Maier-Lytle. The judges for the oral presentation included Jason Bainter, CPA, Somerset CPAs, P.C., Indianapolis; Brandon Cook, CPA, Greenwalt CPAs, Inc., Indianapolis; Jennifer Dalton, CPA, BGBC Partners, LLP, Indianapolis; and Rebekah Payne, CPA, K.B. Parrish & Co., LLP, Indianapolis. On Oct. 7, 2010, over 100 Marion County high school students gathered at the Hilton in downtown Indianapolis for the Society’s annual career awareness program, Game On: CPAs in Action. Game On focuses on the importance of graduating from high school and promotes careers in the CPA profession to minority high school students. Cat Farr, CPA, Justin Hayes, CPA, Charles Munsell, CPA, and Jose Rivera, CPA, kicked off the day with a panel dis-
Thank you to our sponsors who made the cash awards possible. Gold sponsors: $1,000 Kemper CPA Group LLP PricewaterhouseCoopers, LLP SIlver Sponsors: $750 Crowe Horwath LLP Bronze Sponsors: $500 Brady Ware & Schoenfeld, Inc., CPAs Bucheri McCarty & Metz LLP CAMICO Ernst & Young, LLP L.M. Henderson & Co., LLP H.J. Umbaugh and Associates, CPAs LLP Honorable mention sponsors: BGBC Partners, LLP Clifton Gunderson LLP James D. Carr, CPA First place: St. Mary’s O.W. Krohn & Associates LLP
cussion on their experiences in college and diving into their careers as young CPAs. The panelists raved about the perks (travel, compensation, meeting famous people … Justin’s annual list of famous people probably doubled from last year!) and the challenges (tough classes, long hours, etc.) of being a CPA. Not only did these passionate CPAs get students excited for what INCPAS had in store for them, but they shattered the student’s preconceived notions
of what CPAs do and the experiences that they’ll likely have in the profession. “I learned that the life of a CPA is far from a ‘trapped-in-a-cubicle number cruncher’,” said Eli Curry of Pike High School. One of the most important components of Game On is the office visit. This year BGBC Partners, BKD, Deloitte, Ernst & Young, Hamernik, Key Bank, KPMG, PwC, Sponsel CPA Group and RJ Pile, hosted students. Most visits included a tour, meetings with several staff members (including managing partners) and goodie bags. Students had a chance not only to tour CPAs’ various work spaces, but they continued the conversation over lunch. “My favorite part of Game On was being able to meet actual CPAs, hear their stories and speak to them on a level that would otherwise be unavailable to me,” said Curry. In addition to exposing students to CPAs, INCPAS invites its college student members to serve as mentors for the day. Ball State student Marques Fisher has participated in the past three Game On events. “My role, and goal, is to talk to students about the CPA profession from the perspective of a college student,” said Fisher. “I’ll
answer questions about the college curriculum and talk about what is expected from students majoring in accounting. “I think it is very important to expose students to the CPA profession because information that they obtain, by means of interacting with professionals, is not easily accessible. What they experience throughout the event can’t be simulated in the classroom, or viewed on the internet. If students see the opportunities that the CPA profession has to offer they may find their niche in the field. “I encourage other college students to serve as mentors. Personally, it is selfassuring and satisfying to be able to give information that aids high school students during the uncertain times of evaluating a career to pursue.” At the end of the day, students walk away with a better understanding of the CPA profession. Many of the students were energized after thinking about becoming a CPA. Ronald Baker, a student at Warren Central, is interested in combining his pasr i v a t e
sion for travel with his future career. “I want to become a CPA because numbers and math come easy to me,” Baker said. “I also learned that there are travel opportunities.” Baker encourages other students to participate in career awareness programs such as Game On. “It’s important to attend because many people don’t know about a lot of occupations,” Baker said. “It also helps them keep their mind open to other professions.” View highlights of Game On at the INCPAS YouTube channel: youtube.com/incpas.
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Dan Sease Vice President, Private Banker ©2011 The National Bank of Indianapolis 857 Sease PB_7x4.75.indd 1
Member FDIC 12/17/10 6:31 AM
Top Ten Strategic Technologies for 2011 Cloud computing, mobile applications and social analytics are a few technologies expected to have a significant impact for most organizations in the next three years, according to analysts from Gartner, Inc. The research suggests companies should factor these top technologies in their strategic planning process by asking questions and making decisions about them during the next two years.
View the complete top 10 list at gartner.com.
New AICPA Chair Is Poised for Challenges Ahead AICPA Chair Paul Stahlin, CPA has begun his one-year term that is on course to intersect with major changes in the profession including the possibility for different accounting standards for private companies and IFRS for U.S. public companies.
Accounting Makes Hoosier Hot 50 Jobs Top 10 List Accounting is one of Indiana’s fastest growing, high-wage jobs of tomorrow, according to the Indiana Department of Workforce Development’s recently released Hoosier Hot 50 Jobs list.
View the full report at netsolutions.dwd.in.gov/hh50/.
“We’re looking at a lot of very heady issues. I’m sure that every chair as they emerge into their position thinks, ‘This is a time of great change.’ And for every chair, I think that’s very true.” – AICPA
President Obama signed the Red Flag Program Clarification Act of 2010 to relieve CPAs from the FTC’s identity theft Red Flags Rule. This exemption comes after years of advocacy efforts from INCPAS, other state CPA societies and the AICPA. Read more at journalofaccountancy.com.
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Congratulations to Chris Hootman, recipient of the 2010 Indiana CPA Society Chair’s Award. Your dedication to our profession is an inspiration to all of us.
Chair Paul Stahlin, CPA
CPAs Get Permanent Exemption from Red Flags Rule
Christine K. Hootman, CPA Director
Fort Wayne, Indiana
CPAs Selected to Serve Congratulations those listed below who were selected to serve in AICPA leadership positions for 2010-11. ACA: Student Recruitment Committee
Stephanie Dunn, CPA Board of Directors
Financial Literacy Commission
Stephen Schelonka, CPA Forensic and Litigation Services Committee
Mark Hildebrand, CPA
Jarit Loughmiller, CPA
Business Valuations Committee
Forensic and Valuation Services Executive Committee
Randie Dial, CPA Shaun Duffin, CPA Council: Elected Members
Mark Lanning, CPA Anita Sherman, CPA Designated Council Representative for One Year
Joe Scheidler, CPA Exempt Organizations Taxation Technical Resource Panel
Angela Crawford, CPA Jeffrey Frank, CPA Finance Committee
Mark Hildebrand, CPA
Y O U Your clients us and
95 ways to give roots to your clientsâ€™ dreams.
Travis Chamberlain, CPA Insurance (Life and P&L) Expert Panel
Donald Schwegman, CPA International Taxation Technical Resource Panel
Kathryn Rice, CPA Investments Committee
Mark Lanning, CPA IRS Practice & Procedures Committee
You You listen. You educate. You inform.
John Slatten, CPA
Member Retirement Committee
Have dreams. Want to leave a legacy.
David Horvath, CPA Past Presidents/Chairmen Of The Board
Ron Cohen, CPA PCPS Executive Committee
Michelle Zimmerman, CPA Pre-certification Education Executive Committee
Steven Butler Professional Ethics Executive Committee
Us 95 Community Foundations in Indiana, including one in your clientsâ€™ 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:
Wes Williams, CPA Tax Practice Improvement Committee
David Holets, CPA Andrea Riffey, CPA
for good. for ever.
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Indiana CPA Society Wins Award of Excellence
AICPA Council Meeting AICPA and INCPAS leaders met recently at the AICPA Council Meeting in New Orleans. From L-R are AICPA President Barry Melancon, CPA, INCPAS President & CEO Gary Bolinger, CAE, INCPAS Chair-Elect Charles Johnson, CPA and AICPA Vice Chair Greg Anton, CPA.
INCPAS was recognized for excellence by the Indiana Society of Association Executives at the annual STAR Award banquet held Dec. 2. This year’s awards of excellence recognized the INCPAS Game On: CPAs in Action program in the over $750,000 annual budget category as outstanding membership program. Additionally, the Society’s annual CPA Celebration earned honorable mention in the outstanding individual program/event category. INCPAS staff serving in ISAE leadership roles include Courtney Kincaid with the professional development task force and Sherrill Rude, CAE on the board of directors and executive committee.
Protect Yourself By Maintaining Your CPE Records
2011 Save the Date
Be sure you maintain records of all completed CPE in case you’re audited. You can count on the Society to provide you with accurate records of the INCPAS professional development you have completed. To view your CPE transcript history online go to incpas.org, sign in and click on the members tab. Click on “My Account” in the menu bar and then click on “My CPE History” on the side navigation panel.
Jan. 27 Legislators Breakfast • Embassy Suites Downtown, Indianapolis March 25 Controllers Conference • Renaissance Indianapolis North, Carmel May 6 Educators Conference • INCPAS Prof. Dev. & Conf. Center, Indianapolis June 16 Not-for-Profit Conference • Indianapolis Marriott East, Indianapolis June 22 B&I Conference • Ritz Charles, Carmel Aug. 23 Fraud Conference • Indianapolis Marriott East, Indianapolis Sept. 21 A&A Conference • Indianapolis Marriott East, Indianapolis
Find Tomorrow’s Clients Today The Indiana CPA Society is the public’s most trusted source for all things CPA, so it’s no surprise that our number one request from the public is for CPA referrals. That’s why we’ve created Find a CPA – an online, ad-free directory that’s easy to find and use. It’s our answer to the public’s need to find top-notch, qualified CPAs in their area.
Oct. 21 Small Firm: Big Business • Horizon Convention Center, Muncie TBD Indiana Tax Institute TBD Financial Services Conference
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Sign up at incpas.org/facregistration
Resources You Need for Tax Season
Now is the Time
We have several great resources for you for the upcoming tax season. • INCPAS Tax ListServ – incpas.org/Login/login.aspx?redir= 10&ReturnUrl=/Forums/ListServ.aspx Ask Society members questions about tax issues and receive responses directly through e-mail. • INCPAS Community Tax Forum – incpas.org/Login/ login.aspx?redir=10&ReturnUrl=/forums/9.aspx • Indiana Department of Revenue Tax Practitioner’s Hotline – 1-800-462-6320. For tax preparers only. (If you have feedback you want to share with IDR regarding services, suggestions, problems, etc. call (317) 233-4017 or e-mail firstname.lastname@example.org.)
Gain immeasurable value as an INCPAS volunteer. Shape your future, strengthen your profession and influence your community. You’ll enhance the CPA designation and interact with other members. No matter if you’re in public or industry, new or experienced – you’re encouraged to find an activity that’s right for you. If you already volunteer, take advantage of new opportunities. Apply to volunteer by April 30 to be considered for terms beginning July 1. Get engaged – now is the time. Visit incpas.org/Member/Volunteers
In many cases this indicates cash flow problems. Congratulations to
Brian M. Alwine, CPA, ASA
Recipient of the 2010
For a confidential consultation to learn options, contact Mike Norris at 266-8888. • Debt Settlements • Bank Workouts • Corporate Reorganizations • Business Dissolutions • Business Litigation • Bankruptcy (if needed, as a last resort)
Emerging Leaders Award from the Indiana CPA Society www.claritybv.com
5260 AD.indd 1
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12/21/10 2:59 PM
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 The Demand for Your Expertise Has Never Been Higher When you become a peer reviewer, you’ll earn the respect of your peers, use best practices from other firms to sharpen your own skills, develop an additional profit center for your firm, and often receive referrals for additional services as a result of performing peer reviews. To qualify as a peer reviewer you must: • Be an AICPA member in good standing • Should possess current knowledge of applicable standards (such knowledge may be obtained from on-the-job training, training courses, or a combination of both) • Should have at least five years of recent public accounting experience • Be active in public practice at a supervisory level in the accounting or auditing function To learn more about qualifications, benefits of being a peer reviewer and to apply, visit incpas.org/Member/PeerReview.Ethics
defined to be an association of entities that cooperate to enhance capabilities to provide services and share characteristics. Items indicating that a firm may be part of a network include: sharing a common brand name; sharing common control; sharing profits or costs; sharing common business strategies; sharing significant professional resources; and, sharing common quality control policies and procedures. A network may comprise a subset of entities within an association if only that subset of entities cooperates and shows one or more of the characteristics mentioned above. See AICPA Code of Professional Conduct and Bylaws, (June 1, 2010 edition) section 101-17 for further guidance. At the Nov. 11-12 meeting, the AICPA Professional Ethics Executive Committee made a revision to the definition of “Client provided records” contained in interpretation 501-1, “Response to requests by clients and former clients for records” of the AICPA Code of Professional Conduct and Bylaws. The new definition will read “Client provided records are accounting or other records belonging to the client that were provided to the member by or on behalf of the client, including reproductions of such records.” The revision will appear in the February 2011 Journal of Accountancy and will be effective on that date.
Legislative Update By the Numbers
Around the Nation
Indiana peer review data through November 2010
The CPA profession won in last November’s midterm elections as seven CPAs were elected to the U.S. House of Representatives. All five CPA incumbents won their re-election bids: Mike Conoway, R-Texas, John Campbell, R-Calif., Lynn Jenkins, R-Kan., Collin Peterson, D-Minn., and Brad Sherman, D-Calif. Two CPAs beat Democratic incumbents and are serving their first terms in the Congress: Steven Palazzo, R-Miss., and Jim Renacci, R-Ohio. Several key committees have seen an overhaul now that Republicans control the House. Notably, as of Nov. 2 at least 46 percent of The Financial Services Committee consisted of new Republican members, according to the AICPA’s Journal of Accountancy.
reviews enrolled in completed 27 fi peerrmsreview 6 103 peer 193 system reviews 96 pass 434 engagement reviews 7 pass with deficiencies with 2010 154 fi duermsdates 0 fails (51 firms are not completed as of 11/16/2010)
Around the State
Ethics By Ted Zaleski, CPA Dauby O’Connor & Zaleski, LLC Chair, INCPAS Ethics Committee
INCPAS Ethics Update
Effective for engagements covering periods beginning on or after July 1, 2011, a firm that is part of a network must be independent of all other networks firms’ audit/review clients. A network is
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This was not an election year for the Governor’s office in Indiana; however, major changes in the House and Senate increase the likelihood of Republican Governor Mitch Daniels’ agenda being considered. Republicans gained a majority in the House, taking 60 seats, and they also now possess a supermajority in the state Senate with 37 of 50 seats. Daniels lists his top priorities as balancing the state budget without raising taxes, awarding automatic tax refunds in some situations, education reform including rewards for the best teachers, reducing unemployment benefits, and reforming local government.
Be Engaged: Serve as an INCPAS Legislative Key Person INCPAS helps facilitate your dialog with legislators, you don’t have to be an expert The Indiana General Assembly reconvened on Jan. 5, and there were many new faces in attendance – 25 total – due to the partisan shift resulting from the midterm elections. INCPAS Key Persons are currently on hand to bridge the gap between the interests of Indiana CPAs and these legislators, but there are still many legislators without a key contact. The INCPAS Legislative Key Persons are a network of CPA advocates that maintain and build relationships, assist in communicating information that affects the CPA profession and stay informed of proposed legislative initiatives. “Becoming a legislative key person for the Society is probably one of the easiest ways a member can serve as a volunteer at INCPAS,” said INCPAS key person Rae Koester. “The time commitment is truly minimal. “When I was first contemplating serving as a key person, I was a bit intimidated by the legislative process. After talking with the Society and other members, I discovered you didn’t have to be an expert to serve in this capacity.” Unless there is a major issue to address in the general session, key persons are asked to simply e-mail or call their legislator introducing themselves, and stay informed of issues by reading the Society’s KP Communicator e-newsletter. “The Society helps facilitate a dialog with your legislators by hosting an annual event to help connect you with your legislator,” Koester said. “When an ‘action alert’ is issued, INCPAS steps in and
prepares you with background information and talking points for the legislative issue being addressed.” The INCPAS Legislators Breakfast on Jan. 27 provides an ideal opportunity for legislative key persons to make contact with legislators. This has taken the place of the Legislative Insight program. Tours of the State House also will be available for members following the breakfast. The Society encourages you to educate yourself concerning CPA legislative initiatives and the legislative process in Indiana. View the online orientation on the legislative page of incpas.org. If you or a CPA you know of are interested in becoming a legislative key person, contact Sherrill Rude, CAE, at (317) 726-5016.
Board of Accountancy Notice of Intent: Professional Standards The Indiana Board of Accountancy approved issuance of a notice of intent to change a rule regarding professional standards. 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, 2005) 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’ve been created among a wide range of licensees. The Society proposed a solution for the Board of Accountancy to eliminate the rulemaking in the future to update the reference to professional standards. This would minimize confusion and eliminate the costly and time consuming process of rule adoptions to maintain current standards in the administrative code. The draft proposal also included incorporation of IASB and PCAOB standards. Instead licensees would be required to be in compliance with the adopted standards which are in effect 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.
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On Your Behalf
The Indiana CPA Society does many things on behalf of members to enhance your professional success. Its leadership groups are always hard at work making decisions or providing valuable guidance that strengthens the profession and enables members to constantly improve their knowledge and technical skills. Board of Directors
The final version of the value proposition is:
The INCPAS Board Retreat was Nov. 14-16, 2010. Board members reviewed metrics, and strengths, weaknesses, opportunities and threats, updated the Society’s strategic plan, and most importantly, discussed the three task force topics – value proposition, knowledge management and risk assessment.
The Indiana CPA Society is the Lifelong Professional Home for Indiana’s Leading CPAs. INCPAS … • provides tools and resources to guide members through their careers • upholds the integrity of the profession • enhances the value of the CPA designation • facilitates access • provides a forum for our members to connect, share experiences and have fun and • creates a trusted network of professionals for Indiana and beyond
Scenes from the 2010 INCPAS Board Retreat.
Strategic Plan Update The board approved updates proposed by staff and made a few of their own. Key changes included increase the percentage of active licensees and candidates (instead of the number) living in Indiana, leverage the value proposition to recruit and retain members, exploring the feasibility of a knowledge management system, implement a strategy for professional development, make the diversity and human resources goals more meaningful, mobilize members as media resources, and revise the goal to leverage financial literacy resources.
Value Proposition The task force presented its proposed value proposition statement designed to apply to all INCPAS members. After discussion and input from the full board, the value proposition was shortened to one sentence, with several supporting bullet points underneath. The INCPAS value proposition will emphasize different things to different segments, and the various bullet points can be used together or alone depending on who a message is targeted to. The key is to deliver, not merely communicate, the value proposition to members.
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“The value proposition task force accomplished its goal of defining, articulating and communicating a value proposition statement for the society,” said value proposition task force chair Julia Barber, CPA about the work of her group over the past several months. Next steps will include staff measuring programs and services against the value proposition, incorporating it in marketing and communications, enhancing programs that deliver value to members, and examining why members choose to join other organizations. “We received great input from LC/ELA in October, followed by the Board’s input and affirmation at the retreat,” added Barber. “We are pleased with the resulting value proposition with which we believe all members will relate.”
Knowledge Management The concept of managing knowledge is an exciting opportunity for the Society. The task force discussed the benefits of implementing a knowledge management system for INCPAS, considered tools and desired features, and proposed content buckets the system would house. The system would enable a member to gain knowledge whenever they need it. The task force envisions a system that would be both a repository of information as well as social networking functionality to provide for flexibility and a free flowing of information. “We were charged with reviewing the concept of knowledge management for the purpose of determining whether possible deployment and use of such principles and systems could enhance the INCPAS value proposition,” said knowledge management task force chair Kevin Kruggel, CPA. “It could be invaluable to our membership and leverage our collective experience for the benefit of us all.”
On Your Behalf
The task force recommended moving down the path of pursuing a knowledge management system. It must also be easy to use, contain relevant local content, and be updated and monitored. Champions will be needed to get started and maintain the flow of knowledge. The board agreed that further study is needed, and the next six to nine months will be for exploration. If successful, a knowledge management system would greatly increase our value proposition. The task force will continue to be involved in the further study. “I am pleased with the final recommendations and the results of the retreat,” Kruggel added. “We came together very well, we had excellent discussions, and give and take amongst the board members throughout the retreat. When all things were said and done, we were very unified in our recommendations.”
Risk Assessment Potential risk facing the Society was the focus of this task force. The group used the INCPAS strategic plan to develop a heat map that rated two factors – impact and likelihood – of potential risks, and combined the two for an overall risk rating. It also prepared a process manual. “Our initial task was to assess risk related to INCPAS, its membership, programs and strategic plan and to use scenario planning to evaluate future possible events,” said risk assessment task force chair Steve Eichenberger, CPA. “The task force developed a risk assessment framework that can be used in the future as an ongoing part of the strategic planning process.” “A draft scenario planning process was also developed. We discovered that to be done properly, scenario planning requires additional time and thought,” Eichenberger added. “The task force members have volunteered to move forward with specific scenario planning.” Recommendations were that risk assessment should occur annually with ongoing review by the board, staff should prepare monitoring reports on all high risk areas, and that scenario planning work should continue. The board will also be polled periodically to determine key performance indicators. “Presentation to and feedback from the board and the staff was very beneficial,” Eichenberger said. “This validation process assists in clarifying risks and opportunities as well as providing a focus for future work.”
Notice of Annual Business Meeting The INCPAS annual business meeting will be held in conjunction with the leadership cabinet/ELA meeting on May 20 at 8 a.m. at the Belterra Casino Resort & Spa in Florence. The meeting will include a financial report, election of directors and a report from the chairman of the board. If you plan to attend the INCPAS annual business meeting and are not on leadership cabinet or emerging leaders alliance, contact Mary McKinzie at the Society office at email@example.com, (317) 726-5018 or 1-800-272-2054 for meeting details.
Leadership Cabinet Advisory Council The Leadership Cabinet Advisory Council mentor program is off to a successful start. All 12 LCAC members have been matched with a past INCPAS Board member. After the kickoff dinner on Oct. 27, 2010, mentors and protégés were to meet or talk three times from November 2010 and May 2011. The purpose of the mentorship is to provide guidance and support to the protégé in how to successfully lead in the CPA profession. LCAC members also attended a Best Practices in Association Governance program on Nov. 19, 2010, at the Society office. Topics covered included the gratifying and frustrating aspects of board service, making sure board service is effective and efficient, a good model of governance, policy and law, the INCPAS governance structure, and the future of governance. The program was led by association management consultant Linda Shinn, CAE. For more information on leadership cabinet and ELA, contact Sherrill Rude, CAE firstname.lastname@example.org.
For more information on the INCPAS Board of Directors, contact Gary Bolinger, CAE email@example.com.
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CPA Celebration Award Winners
Best of the Best Every year, INCPAS honors the stars of the profession. Members are asked to nominate colleagues who define excellence in their respective areas of practice, and who dedicate time and effort to the betterment of their professional environment. After much consideration, these deserving candidates were recognized for their service and dedication at the annual CPA Celebration on Nov. 19.
CPA Advocacy Award
John P. K ane, CPA J.P. Kane & Co., LLC, Anderson John Kane has been an active INCPAS member and advocate for the CPA profession for 23 years. He has played a significant role with the Society’s government affairs as a legislative key person at the federal and state level and as a member of the AICPA Governing Council. Most recently, Kane was named by Governor Mitch Daniels to the Indiana Board of Accountancy. Kane has served as vice chair of the INCPAS Board of Directors (2008-10), chair of the finance committee and has contributed his expertise to a list of INCPAS committees, task forces and project teams. He is a current member of the leadership cabinet. Kane’s influence also is evident in the community with his involvement as the president of the Anderson Symphony Orchestra board and treasurer of the Anderson Rotary Club. He is the owner of J.P. Kane & Co. LLC, which provides financial statement and tax services.
Erl and C. Porter, CPA Brightpoint, Inc., Indianapolis
Emerging Leaders Award (Five recipients)
Erland Porter has been at the forefront of the Indiana CPA Society’s diversity initiatives. He is the chair of the INCPAS Diversity Task Force, he was an active participant at the inaugural INCPAS Diversity Summit in August 2010, and Game On: CPAs in Action, an annual event designed to promote the value of a CPA designation to underrepresented high school students. Outside of INCPAS, Porter is president of the Greater Indianapolis Chapter of the National Association of Black Accountants and a member of the Association of Latino Professionals in Finance and Accounting. While employed at Ernst & Young LLP, Porter co-developed the Ernst & Young Foundations in Leadership Program which resulted in a $500,000 donation to help the Indiana University Kelley School of Business to attract and retain underrepresented students.
ClarityBV, Inc., Osceola
David J. Danic, CPA
Brian Alwine has garnered professional success as the founding president of ClarityBV, Inc., the only firm dedicated solely to business valuation services in north-central Indiana. With an accreditation in business valuation and as an accredited senior appraiser (only one of 20 in Indiana), he has appraised hundreds of businesses throughout the U.S. He has engagement experience with intangible assets for financial reporting, tax compliance, litigation support and transaction
Dave Danic is a proven leader for the Society, the CPA profession and the community. He has been an INCPAS member since 2005, joining as a student member while attending IUPUI. His INCPAS involvement has included volunteering at Indiana Black Expo’s Summer Celebration and participating as a campus presenter and legislative key person. Danic is an INCPAS Emerging Leaders
Brian M. Alwine, CPA, ASA
consulting. Alwine has been a member of the Society since 2002 and is a member of the AICPA’s forensic and valuation services section. He is active in the community as a board member at St. Mark Missionary Church and a board member of Hope Crisis Response Network, a non-profit disaster relief agency.
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Bildner & Creger, P.C., Angola
CPA Celebration Award Winners
Alliance member and serves on the leadership and governance task force. He began his career at Blue & Co. LLC in Carmel and currently is a CPA at Bildner & Creger, P.C., in Angola. He has taught as an adjunct professor at Martin University. Active in his community, Danic serves as a board treasurer for The Miracle League of Indianapolis, and as a founding member of Giving+Sum, a not-forprofit organization of next generation leaders working together to improve Central Indiana.
Michael A. Cl arke, CPA Deloitte, Indianapolis Michael Clarke serves as Deloitte’s senior manager for the Global Employment Services Tax group in their Indianapolis office. He maintained a double-digit top line revenue growth throughout the economic downturn in 2008-09 while managing bottom line gross margin increases. Plus, he increased top line revenue 50 percent in the 2010 fiscal year. He’s demonstrated a commitment to the success of his team, his practice and has a passion to serve his community. Clarke was a graduate of the leadership united program at the United Way of Central Indiana in 2007, and has been active with the Eli Lilly Endowment & Investment Committee and the United Way Emerging Leaders Steering Committee. Clarke is a board member for Child Advocates in Marion County, and has been involved with the Central Indiana Community Foundation, Gleaners Food Bank, the Corporate Volunteer Council, Keep Indianapolis Beautiful, and Fishers Parks and Recreation.
Sarah L. Coffey, CPA Goodwill Industries, Indianapolis Sarah Coffey’s energetic passion to improve herself as a professional and better her community has inspired other young professionals to get more involved, according to her peers and INCPAS staff that work closely with her. She has capitalized on many opportunities to stay involved at the Indiana CPA Society – she’s a member of the emerging leaders alliance, the ELA leadership and governance task force, leadership cabinet evaluation task force, and she’s been involved as a financial literacy community outreach volunteer and campus presenter. With her former employer, Sponsel CPA Group, LLC, Coffey played a leading role in the firm’s community involvement, and plans to continue to do that with Goodwill Industries. She’s organized the
sponsoring of Salvation Army and United Way Christmas families and the firm’s BackPack Attack campaign. Coffey is an active board member at the Indy Early Learning Center and serves as a volunteer mentor for Common Goal, an organization that encourages at-risk youth to graduate and pursue high education. Outstanding Community Service Award
Deborah Freel and, CPA Clifton Gunderson LLP, Indianapolis Deb Freeland has been an INCPAS member for over 10 years and is a partner with Clifton Gunderson LLP in Indianapolis. She has made a significant impact in the community and on the growth of those around her. Freeland serves as treasurer of the Lutheran Disabilities Ministries Board of Directors and Carmel United Soccer Club. She has served on the finance committee of Carmel Lutheran Church and as a volunteer for the United Way of Central Indiana where she performed government and management reviews of various agencies receiving funding from the United Way. Freeland is the current co-chair for the Clifton Gunderson Women’s Initiative with a focus on promotion and retention of women in the CPA profession, and has served on the Ball State University Accounting Board where she spoke to college accounting classes about opportunities in the profession. She is a current member of the INCPAS Ethics Committee. Outstanding CPA in Business & Industry Award
Constance E. Lund OneAmerica Financial Partners, Indianapolis Connie Lund has been a member of the Society for 34 years. She shared her experience and expertise on the INCPAS Board of Directors from 1988-90 and with various committees and task forces. Lund serves as senior vice president, corporate finance at OneAmerica Financial Partners, Inc., where she directs the corporate finance division, a staff of 80. She serves as treasurer of the OneAmerica Mutual Fund and OneAmerica Securities, Inc., along with various corporate committees. Lund was one of four women nationally awarded with the 2003 Balance
Emerging leaders award winners, from left: David J. Danic, CPA; Brian M. Alwine, CPA, ASA; Sarah L. Coffey, CPA; Erland C. Porter, CPA; Micahel A. Clarke, CPA. We love that David and Erland dressed in the ‘80s theme! CPA IN Perspective
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CPA Celebration Award Winners
Achievement Award by the American Society of Women Accountants. She was named 2001 Executive of the Year by the Institute of Management Accountants and Accountants On Call — she was one of 23 financial leaders in the nation recognized. In the community, Lund has served as chair of the 500 Festival Board, the dean’s council for the Scott College of Business, and the insurance advisory board at Indiana State University. She has been involved with boards for Our Lady of Grace Monastery in Indianapolis and the United Way of Central Indiana. Outstanding CPA in Public Practice Award
Catherine P. Stewart, CPA Estep, Doctor & Co., PC, Muncie Cathy Stewart has spent over 30 years in public practice striving to promote the profession to business associates, peers and to the public. She first joined Estep Doctor & Co. in 1990 and now leads the firm’s audit department and serves as vice president and CFO. She has shown dedicated service to the Society as a member of the board of directors from 2006-09, chair of the finance committee, chair of the peer review committee, president of the education foundation, along with various other INCPAS committees. She is a member of the ethics committee and the leadership cabinet. Stewart is involved in her community with the Muncie-Delaware County Chamber of Commerce, where she’s served as treasurer and as a member of the board. She’s on board for the Muncie-Delaware County Community Foundation, and has dedicated her time and expertise to the United Way, Muncie Boys & Girls Club, United Cerebral Palsy of Delaware County and the Girl Scouts. Outstanding Educator Award
Beth Kern, CPA Indiana University South Bend, South Bend Beth Kern has experienced a year of achievements in 2010. In addition to the INCPAS Outstanding Educator Award, Kern received Indiana University’s Frederic Bachman Lieber Memorial Award for Teaching Excellence this past April. The award is Indiana University’s oldest teaching award. She has made a significant impression in accounting education as one of three authors of the AICPA’s Model Tax Curriculum. This project spanned four years and solicited input from AICPA committees and tax educators nationwide. She has held numerous leadership positions in the American Taxation Associa-
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tion, including a term as president from 2002-03, and her service was recognized with the 2009 ATA Distinguished Service Award. Kern has been involved in the community as a middle school coach for a Science Olympiad team and a board member and treasurer of Chapin Park, Inc., a nonprofit that restores distressed housing in the South Bend area. Chair’s Award
Christine K. Hootman, CPA Baden, Gage & Schroeder, LLC, Fort Wayne Chris Hootman is not only an outstanding consultant and business advisor to her clients, she is a mentor and advisor to other professionals. She has 30 years of professional experience, 23 years with Baden, Gage & Schroeder LLC, in Fort Wayne. She is an active member of the firm’s executive committee and M&A team. She also provided expert testimony, litigation support and investigative services, and has been a director in the firm for over 13 years. Hootman plays an active role in recruiting as she speaks to college students about the advantages of public accounting and the CPA profession. She has served on the Society’s nominating committee, and lent her expertise to the future issues task force. Hootman is active in her community on several boards, including Fort Wayne Sports Corporation and Financial Executives Internationals. Distinguished Service Award
Louis C. Schmitt, CPA Louis C. Schmitt, CPA, Carmel In his 37 years as a member, Lou Schmitt has made significant contributions to the Society and the CPA profession. He has been a pillar in INCPAS leadership as a member of the board of directors beginning in 1999, board chair from 2003-04, an AICPA committee member, legislative key person, and through his influence in various INCPAS committees and project teams. Schmitt also is a current member of Society’s Leadership Cabinet and the Government Relations Advisory Council. He served as CFO of United Presidential Life Insurance Company and performed consulting services with the Auctor Corporation. In 2003, he moved his focus to the community as he led the Junior Achievement of Central Indiana through significant expansions. In 2009, Schmitt reenergized his financial consulting practice and currently provides services to companies in need of a part-time CFO or controller.
IRS Tax Issues
AICPA National Tax Conference and AICPA/IRS National Meeting By Dave McDaniel, CPA
INCPAS Tax Resource Advisory Council
The annual AICPA/IRS National Meeting was combined with the AICPA National Tax Conference in Washington, D.C., on Oct. 25-26, 2010. The meeting brings leaders of major IRS divisions and offices to summarize their activities and plans. The AICPA invites a representative of each state CPA society for their input. The small business/self employed division is responsible for all business tax returns of small businesses and self employed individuals. Faris Fink, deputy commissioner of SB/SE, covered many issues: • Announced high income/high wealth examination strategy across all divisions • Global income squad – looking for structured transactions with related parties and flow through entities. • Ongoing national research project – 13,000 income tax audits from the Cincinnati correspondence center. • An ongoing project is auditing 2008-10 employment tax returns. Payroll taxes are close to passing individual income tax as the largest source of tax money collected. • The IRS will send out 10,000 letters to practitioners about Schedules A, C and E and make 2,500 visits. The update from the large business and international division was presented by Commissioner Heather Maloy. LB&I recently changed its name. It is responsible for business tax returns for business with over $10 million in assets. Highlights: • Examination times have decreased from 60 to 27 months • Uncertain Tax Position reporting. A new form was created to disclose uncertain tax positions. • 2011 focus of LB&I: --Better selection of examinations --Processing of UTP --Improve work efficiency and effectiveness • Centralize international tax auditors to improve coverage on topics and create specialists • Trying to initiate a more consultant-like environment – more consistent answers and quicker resolutions Richard Byrd, commissioner of the Wage and Investment division, provided an update. It is responsible for the processing of individual tax returns that do not have Schedules C, E or F. Here is their report:
• First time home buyer returns and processing was a huge drag on the system • 2010 Adoption Credit returns will need to be paper filed due to the supporting documents required • IRS.gov is one of the largest web sites in the world. • E-file processing was up three percent and is now approximately 70 percent of all returns filed. • Future processing problems for the IRS – low birthrates, aging population and immigration growth. IRS Commissioner Douglas Shulman gave a luncheon address during which he touched on the variety of challenges facing the IRS and new initiatives: • Information overload – 4,400 tax law changes since 2000 • Flow-through entity filings are up significantly changing the way information is processed • Global tax issues – IRS now has 1,800 Spanish speaking employees • The IRS has been used to distribute money (stimulus checks) and administer new programs (health care) because it processes information for a large number of people quickly and effectively. • Leveraging of tax preparers and IRS employees to work together on tax administration David Williams, director of the Office of Electronic Tax Administration, discussed electronic issues. The ETA is responsible for electronic filing, e-services and the web site. He addressed the preparer registration issue: • 90 percent of returns are now prepared on a computer • 60 percent of all returns are from a paid preparer • New registration process designed to: --Get a better idea of how many preparers there are --Monitor qualifications and competency --Build relationship to leverage tax processing process • IRS believes fringe preparers are responsible for many errors and fraud schemes • Opportunity to improve entire tax process Diane Ryan, chief of the Office of Appeals, gave an update from the independent office to resolve tax controversies. Some items of note: • Record number of closed cases (133,000) and money collected continued on page 38... CPA IN Perspective
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Looking out for our members in business and industry By Stephanie Parton firstname.lastname@example.org
INCPAS Senior Manager – Member Communications
More than half of all INCPAS members work outside public accounting. If you’re a CPA in business and industry, you have specific needs – and INCPAS can help. No matter where your career leads you, INCPAS is there with the tools you need to succeed. We are your professional home.
Know the Value of Your CPA License
CPAs in Business & Industry Conference
You worked hard to earn your CPA designation, and it shows everyone you associate with that you are dedicate to achieving a higher level of skills and expertise. It sets you apart from other accounting and financial professionals. The Society has tools available to help you get that message out to the people who need to understand the value of maintaining your license the most – your employer. The Society’s brochure titled “You’re not in public accounting… there’s no reason to worry about maintaining your designation, right? WRONG.” was designed specifically for members in business and industry. It includes a detachable flyer for you to share with your employer to show them the importance of maintaining your CPA designation. To receive a copy of the brochure, contact INCPAS Member Services at 1-800-272-2054 or email@example.com.
The Society’s CPAs in Business & Industry conference is the perfect opportunity for CPAs to get all the B&I topics they want in a one-day conference. Held each June, this conference is industry-focused, affordable and planned by business and industry CPAs like you.
INCPAS Social Media Looking for ways to connect with other CPAs working in a specific industry? Your first stop should be INCPAS Community. Log on to incpas.org and click on the Community tab. There you’ll find forums broken down by industry. You’ll also want to join the official INCPAS groups on Facebook and LinkedIn to connect with other members and stay on top of INCPAS news and networking opportunities. • incpas.org/Public/Networking/SmNewsroom.aspx
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Save the Date 2011 CPAs in Business & Industry Conference June 22 • Ritz Charles, Carmel
Professional Development Throughout Indiana The Society knows that many of our B&I members live outside Indianapolis and that’s why we offer top notch professional development throughout the entire state of Indiana. Our highly-rated speakers travel to: • Batesville • Bloomington • Evansville • Fort Wayne • Indianapolis
• Jeffersonville • Kokomo • Lafayette • Merrillville • South Bend
Loosen Up. Mix It Up. Young Pros Parties Come relax, and dare we say it? Have some fun with other young professionals! This networking series is for young CPAs and soonto-be CPAs. So loosen the ties, take off the jacket and change out of your high heels because who says you can’t have a little fun? Last year our young pros enjoyed a private wine micro party, laser tag, bowling and pool. Plans are being developed now for the 2011 series. Visit incpas.org for the exciting line-up.
Surviving Tax Season
Have The Endorphins Kicked In Yet? By Cheryl Leitschuh, Ed.D., RCC
Endorphins. They are that wonderfully natural hormone we all possess that gives us the feeling of sedation while operating at our peak performance. Through the release of endorphins we add energy and vitality to our everyday existence. In the midst of this tax season are you feeling sedated while operating at your peak performance? Do you feel increased energy and vitality in your everyday work? Dale Carnegie told the story of two men who were out chopping wood. One Performance Enhancement #1: RECOGNIZE WHEN YOU ARE ‘IN THE ZONE’
What does it feel like when you are working on a project in your target zone of performance? How do you know you are there? What makes the difference? What do you do to make this event occur? The more answers you have to these questions, the more likely you can “sharpen the ax” to achieve peak performance. Tip from the Coach: If you have no clue
to the answers to these questions, do not despair. This is a good time to become an observer of YOU, to see what answers appear. Just like the woodsman, take a few moments throughout the day to ask yourself if you are “in the zone.” If you are, what is happening to keep you from being in your ideal zone? If you were not, what would you need to do to move to the zone?
Performance Enhancement #2: PACE YOURSELF
If endorphins occur when you are in your target range then the question becomes, “how do you pace yourself to stay in this range?” Just like the woodsman, taking time to “sharpen the ax” leads to increased performance. Recognize that you are the “ax” to get the work done during this intense time of year. What do you
man worked hard all day, took no breaks, and stopped only briefly for lunch. The other chopper took several breaks during the day and a short nap at lunch. At the end of the day, the woodsman who had taken no breaks was quite disturbed to see that the other woodsman had cut more wood than he. He said, “I don’t understand. Every time I looked around, you were sitting down, yet you cut more wood than I did.” He associate said, “Did you notice that while I was sitting down, I was sharpening my ax?”
Professional athletes know that to achieve best performance they need to work in cycles. They need to keep the target range of performance in sight. Working too fast or too slow, you move out of the target range and decrease performance. Knowing what is the target range and self-managing to this range is the key to increasing your energy and vitality. Professional CPAs can use the same strategies during their peak performance time of the year, tax season. Following are three key tips to achieving this vitality and energy.
do to pace yourself and reenergize yourself throughout the day?
Tip from the Coach: Few of us are lucky
Tip from the Coach: Here are several ideas
I have used successfully with others:
• Rename “coffee breaks” into “energy breaks.” Coffee does not create energy. Try substituting nutritional snacks such as nuts, fruit, bagels and pretzels. • Take a short walk at various times throughout the day. This can be up and down the stairs, a quick break outside or even a walk around your office. • Take a power nap. Twenty to 30 minutes of rest and/or sleep will reenergize your system. Hang the “do not disturb” sign outside your office for this refreshing energy break.
enough to have a work schedule that follows our circadian rhythm. During tax season when you are working 10-15 hour days, it is impossible to only work at peak times. However, you can schedule your day based on your patterns. This means schedule high energy and creative tasks during your peak times and schedule maintenance and routine tasks during your lower times.
Performance Enhancement #3: FOLLOW YOUR CIRCADIAN RHYTHMS
We all have rhythms to our day when our energy and creativity are highest and when it’s the lowest. This is called your circadian rhythm and it varies from person to person. In general, some people are “night owls.” Their highest energy levels occur later in the day. Others are “early birds.” Their highest energy levels occur early in the day. By understanding your own circadian rhythm and designing your day around this pattern, you can use your natural rhythms to enhance your performance as a CPA professional.
For additional resources or to contact Cheryl Leitschuh, visit FromStaffToPartner.com CPA IN Perspective
2010 PAC Goals: Exceeded Staying informed and involved is part of being a CPA. The Indiana CPA-PAC serves as the voice of INCPAS members when it comes to legislative relations. Your PAC investment works both sides of the aisle in the House and the Senate. INCPAS officially exceeded PAC goals for 2010 with $34,810 contributed and 756 total contributors. The PAC contributed about $36,000 to elected officials. Contributions were made to 23 House and 11 Senate representatives supporting both Democrats and Republicans. This accomplishment speaks volumes to legislators and helps the Society carry out its mission of protecting and promoting the interests of Indiana CPAs. Thank you to INCPAS members, companies and staff who contributed. For more information or to submit the PAC contribution form, contact Sherrill Rude, CAE at (317) 726-5016 or firstname.lastname@example.org, or fax to (317) 726-5005.
The CPA-PAC supported 23 Indiana House Representatives: 11 House Democrats: 12 House Republicans:
And 11 Indiana Senate Candidates:
3 Senate Democrats: 8 Senate Republicans:
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Contributors as of Dec. 31, 2010
$1-$59 Thomas E. Adamczyk, CPA Mark A. Aiton, CPA Carlos Bruce Alexander, CPA Melissa B. Allen, CPA Terry J. Anderson, CPA C. Phillip Andorfer, CPA Mark Joseph Andorfer, CPA Shawn Antell, CPA Frederick F. Arand, CPA Staci Ann Armstrong, CPA Jessica H. Armstrong, CPA Gregory A. Arnott, CPA Dennis R. Austgen, CPA Kathleen Susan Bailey, CPA Paul Jeffrey Bailey, CPA Jason L. Bainter, CPA June L. Ball, CPA Jeffrey Balyeat Christopher M. Bane, CPA Richard L. Bartholomew, CPA, JD Dan D. Bastin, CPA Celesta Suzanne Bates, CPA Stephanie M. Bauer, CPA Jeffrey A. Baumann, CPA Catherine L. Beadle, CPA Michael D. Bedel, CPA Louis Belch Donald Eugene Bender, CPA Susan A. Berghoff, CPA Craig L. Berkeley, CPA Michael A. Berlier, CPA Kristine S. Berryman, CPA Jodi R. Bickel Lorita Knetzer Bill, CPA Heather R. Birky, CPA Chad R. Blair, CPA Chanda K. Blair, CPA Ronald A. Blake, CPA Patrick R. Blanda, CPA Kimberly A. Blanton, CPA Mark E. Blessing, CPA Daniel Z. Blomeke, CPA Nathan J. Bobay, CPA
Barbara A. Bohman, CPA Gary M. Bolinger, CAE Jeff R. Boomershine, CPA Tricia L. Borcherding, CPA Douglas Edward Born, CPA Kimberly Boster John E. Bourquard Christina Sue Brackin, CPA, CPCU, ARE Ronald L. Brackin, CPA Susan C. Bradford, CPA Sean Brady, CPA Jeanne A. Brady, CPA Richard Bramhill, CPA, CMA Robert W. Brandenburg, CPA Valerie K. Brennan, CPA Daniel T. Brickler, CPA Jennifer Briggs, CAE Allen J. Broussard, CPA Constance D. Brown, CPA Marvin D. Brown, CPA Barbara White Bryan, CPA Sherrell Bryant, CPA Jo A. Burke, CPA Patricia K. Burkhart, CPA Kimberly S. Burkholder, CPA Roger O. Busche, CPA Bettie A. Caldwell, CPA Stephen R. Cannedy, CPA, JD Nancy K. Carpenter, CPA, Series 6 Diana A. Castner, CPA Alan L. Chamberlain, CPA Clifford E. Chandler, CPA, CIA Sue Faust Chenoweth, CPA James S. Chesterfield, CPA Kaus J. Christopher, CPA Bernard F. Cinkoske, CPA Hilary Spalding Clendenning, CPA Lynn S. Clevenger, CPA J. Nelson Coats, CPA Chris Cobb, CPA Sarah L. Coffey, CPA Emanuel M. Cohen, MBA, CPA Jeremy Ryan Cole, CPA Lee A. Cole, CPA, CFS
PAC Contributions Douglas W. Collins, CPA, CLU, FLMI Michael K. Conn, CPA Karen M. Conner, CPA Ronald E. Cook, CPA Jacqueline W. Cordier, CPA David Corya, CPA Thomas P. Cottrell, CPA Angela N. Crawford, CPA Catherine C Crismore, CPA Jane H. Cromwell, CPA Erica Eck Crowell, CPA Charles V. Crowley, CPA, CISA Amy M. Cvetkovich, CPA Nicholas G. Dallas, CPA David J. Danic, CPA David Phillip Daum, CPA Lauren S. Davis, CPA Yvonne B. de Calonne, CPA Debra S. Deckard, CPA, PTR, CSEP Timothy R. Deisher, CPA, PFS Douglas Lee Dell, CPA, ABV Mark A Denien, CPA Molly J. Denien, CPA Andrew L. DePew, CPA Stephen E. DePue, CPA Jeremy E. DeWinter Theodore D. Dickman, CPA Gina L. Dillman Hoskins, CPA Stephen F. Dobias, CPA Christopher James Doemland, CPA Joseph F. Doninger, CPA Larry T. Dotson, CPA James R. Doty, CPA Shawn D. Dreiman, CPA Steven R. Dreyer, CPA, CMA Shaun P. Duffin, CPA, CMA, CFM, ABV Joyce A. Dulworth, CPA Steven T. Dum Norma J. Dunton Larry Dykes Patrick J. Early, CPA Clarence R. Ebersole, CPA Candace Ann Eck, CPA Tina K. Edge, CPA Jacinda L. Edman, CPA William L. Eisenmann, CPA Kathleen Elliott, CPA, FLMI Sandra L. Ellis, CPA Rebecca Lynn Ennis, CPA Michael J. Erler, CPA Michael A. Ernst, CPA Douglas C. Fahrnow, CPA Catherine N. Farr, CPA Steven F. Farrell, CPA, ABV David Louis Feinberg, CPA Jay A. Feller, CPA Glenda R. Fisher, CPA, CFA Lisa Fleck, CPA Joan M. Forthofer, CPA Larry D. Fouch, CPA David C. Frederick, CPA David S. Freeman, CPA, CMA, CFM George F. Freije, CPA Brian P. Friend, CPA Michael A. Fritton, CPA George P. Gabor, CPA Ronald L. Galle, CPA
Carol L. Gardner, CPA Lisa Garrage, CPA Harold Gatlin, CPA Stacie A. Gayheart, CPA Kurtis L. George, CPA Mark A. Gerber, CPA Jennifer L. Gher, CPA Michael Giannamore, CPA Troy Jeremy Gilstorf, CPA Grant G. Glackman, CPA, CFP David Lee Glesenkamp, CPA, CEBS Darlene Glesenkamp, CPA, CRPC John J. Goebel, CPA Joseph E. Gordon, CPA Aimee Gould, CPA Michael J. Gould, CPA, JD Ryan L. Greenwood, CPA Marjorie N. Griffith, CPA Marita Rae Grisel, CPA Kole Groninger Sui Yan Guo Elizabeth Elaina Gutierrez, CPA Anthony W. Hamlin, CPA John R. Haney, CPA Lisa D. Harber Eric T. Harber, CPA Jay A. Hargis, CPA Brindha Hariharan, MA,MBA,CPA Bradley J. Harmon, CPA Michelle L. Hartman, CPA Erica Renea Haston, CPA Pamela P. Hawkins, CPA Amy Lee Hay, CPA Justin M. Hayes, CPA Kenneth J. Hedlund, CPA Jay A. Heineman, CPA Joseph P. Helstrom, CPA Randall H. Hewitt, CPA, CBA Jeffrey A. Hicks, CPA Mary J. Hildinger, CPA Julie R. Hipsky, CPA Cheryl Holbrook Kenneth F. Honegger, CPA Nicholas C. Hopkins, CPA, CFP Natalie Hopkins, CPA Mary A. Horn, CPA Kurt E. Horner Lavonn R.D. Hostetler, CPA Brian K. Hostetter, CPA Patrick T. Houlihan, CPA William M. Howell, CPA, CFP Daniel K. Hubbard, CPA Edward F. Hums, CPA Jennifer M. Hurford, CPA Charles Erwin Husman, CPA Steven R. Imler, CPA Charity Elizabeth Inglis, CPA Brian A. Inniger, CPA David Michael Jack, CPA Philip K. Jackson, CPA Melvin P. Jarrett, CPA Stacey J. Jarrett, CPA Brandon S. Jeffers, CPA Gino Johnson, CPA Michele B. Johnson, CPA Matthew D. Johnson Allen B. Johnson, CPA, CFE
Karen S. Johnson, CPA James E. Johnson, CPA Shelley R. Johnson, CPA Michael E. Johnson, CPA Judith Ann Jones, CPA Elaine Rena Jones, CPA Shannon Elizabeth Kane, CPA Beth A. Karnes, CPA Karen S. Keinsley, CPA Kristen E. Kelleher, CPA Robert O. Kerney, CPA, PFS Michelle Kerr, CPA Tamara J. Kiefer, CPA Benjamin C. Kimmerling, CPA Andrea E. King, CPA Brian J. Kinnaman, CPA Margaret Ann Kirkpatrick, CPA, CITP Darlene L. Kittredge, CPA Stephen R. Kleifgen, CPA Jennifer A. Knecht, CPA Christopher T. Knox, CPA Robert D. Kohlmeyer, CPA Amy D. Koss, CPA John J. Kotlarczyk, CPA, ABV Peter J. Kozlowski, CPA Debra Melwid L. Ladyman, CPA Julie S Lakes, CPA Elizabeth D. Lanman, CPA Jayne A. Lanning, CPA William L. Lapcheska, CPA Jacob W. Lapp, CPA Ann Lathrop James S. Laudick, CPA Austin D. Lehman Karl F. Lehman, CPA Tyler D. Lehman, CPA Kristi A. Leininger, CPA David L. Leising, CPA Jenny Irene Lemmon, CPA Barry A. Levitt, CPA Tim L. Lewis, CPA, CFE David R. Lewis, CPA Richard T. Lich, CPA Terri C. Light, CPA Joel A. Lighty, CPA Dale E. Lindley, CPA B. J. Lippert, CPA Christine List, CPA Jason C. Llewellyn, CPA, PFS, CDFA Ali J. Lotfalian Lori A. Lucas, CPA Paul D. Lucas, CPA Richard A. Ludwig, CPA Timothy V. Luther, CPA Barbara J. Lutterbein, CPA Barbara A. Lynn, CPA Jennifer A. Lyons, CPA Patrick M. Malayter Deborah S. Maldeney, CPA/ABV/CFF, CVA Aaron Bradley Mares, CPA Angela Markey, CPA Janice K. Martin, CPA John H. Matthiesen, CPA Tina M. May, CPA Michael J. McCaslin, CPA Christopher A. McCauley, CPA, CFP Dru Elaine McCoy, CPA
Alicia J. McCracken, CPA Heather N. McCullough David Allen McDaniel, CPA Nancy A. McDivitt Chad McDonald, CPA Robert P. McGauley, CPA, CITP Dennis K. McGuire, CPA Valerie A. McHarry, CPA, CFE Mark S. McIntosh, CPA Michael McKay, CPA Denny G. Mellon, CPA Michael P. Merkel, CPA Keith M. Messmer, CPA Ronald J. Metz, CPA William C. Metzger, CPA Joseph D. Meyer, CPA Leslie D. Michael, CPA, CFP, PFS Karen Miiller Leslie R. Miller, CPA Chris Alan Miller, CPA, PFS, CFP Anthony Ridgeway Miller, CPA Thomas J. Miller John Joseph Minnich, CPA, MA Carrie Beth Minnich, CPA Christopher L. Moore, CPA Jon Moore Michael Steven Moore, CPA Robert L. Morris, CPA Angela Marie Morse, CPA, FLMI Kari A. Morwick, CPA Robert H. Mosser, CPA Stacey S. Mullis, CPA Jerry J. Murray, CPA Timothy C. Musholt, CPA Amy L. Myers, CPA Charles J. Naber, CPA Sandra J. Neel, CPA Glenda Lee Neff, CPA Mary M. Nelson, CPA Timothy J. Nierman, CPA Martha T. Nommay, CPA Christopher J. Norris, CPA Jennifer Norris, CPA J. Kevin O’Connell, CPA, JD Daniel J. O’Connor, CPA Jessica Ogle, CPA Rebecca L. Ogle, CPA Amy L. Oglesby Daniel G. O’Leary, CPA Scott A. Olinger, CPA Patricia M. Oppor, CPA Michelle G. Orme, CPA Elizabeth A. Pagett, CPA Kevin E. Pahud, CPA Holly M. Pantzer Troy M. Parton, CPA Rebekah S. Payne, CPA Douglas W. Perkins, CPA Harold L. Pfrang, CPA Cory E. Pickens, CPA Victoria L. Pierceall, CPA Patrick E. Pollard, CPA Gary M. Price, CPA, IUSB Kerri A. Price, CPA Patrick A. Primmer, CPA Chris Prothero-Cooke Robert J. Pruitt, CPA CPA IN Perspective
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PAC Contributions Alicia M. Rader, CPA Rebecca J. Radford, CPA Cynthia Lynn Ransom, CPA, CIA Patricia L. Rath, CPA Chad D. Reed, CPA, CFP Pamala D. Renninger, CPA Gregory Dean Rexing, CPA Roy R. Rice, CPA Carol A. Richards, CPA Steven J. Riddle, CPA, ABV, CVA, CFP, CFF Andrea L. Riffey, CPA Mary H. Riggle, CPA Rebecca K. Rissen, CPA, FLMI, AIAF, MBA Jose R. Rivera, CPA Travis L. Rivers, CPA Mark Alan Robbins, CPA Susan R. Robertson, CPA Lori Robertson, CPA Randy L. Rowe, CPA Sherrill Rude, CAE Richard John Rusch, CPA, CITP Michele Rutter Daniel J. Sailer, CPA, CFA Tabitha R. Salati, CPA Joseph C. Sanders, CPA Billie A. Sanders, CPA, PFS Casey J. Scheurich, CPA John D. Schlagenhauf, CPA Brian Schmidt Carol Flanders Schmidt, CPA Louis C. Schmitt, CPA Sarah J. Seacat, CPA, CFE Susan K. Seitz, CPA, FLMI Timothy J. Shafer, CPA Roger E. Shank, CPA Bernard J. Shepard, CPA Jerry E. Showalter, CPA Robert L. Shreiner, CPA John A. Shupe, CPA Josh Thomas Sickler, CPA Stephen A. Sienicki Curtis Simms Michelle L. Siner, CPA Deborah Sladen, CPA Donna S. Slater, CPA Craig A. Slater, CPA Cynthia A. Slaughter, CPA Kristie Faye Small, MBA Jessica A. Smith, CPA Jeni L. Smith, CPA Carolyn J. Smith, CPA Benjamin Lee Smith, CPA, CITP Matthew C. Snively, CPA Brett Alan Spangler, CPA Kelly Ann Spaulding, CPA Sara L. Spohr, CPA Paul V. Stahlin, CPA
Vernon J. Stanger, CPA Regina L. Stephenson, CPA Daniel B. Stichter Keith A. Stone, CPA James T. Stoner, CPA Ronald L. Stopher, CPA, FSA, MAAA Michael A. Strauch, CPA Ginger Strup Steven K. Stucky, CPA Joseph B. Sullivan James V. Svetich, CPA William H. Svihla, DBA, CPA, CFE Robert E. Swartz, CPA, CITP Jeff A. Taner, CPA Jack E. Taylor, CPA, CSEP Florence Ball Teskey, CPA Thomas J. Thieme, CPA, CMA, ABV Scott A. Thoman, CPA Mary Thompson, CPA Carol B. Tilley Arthur J. Timpe, CPA Arthur Timpe, CPA, CFP Gary M. Timpe, CPA, JD Gregory L. Tislow, CPA Enrico Jose Tolentino, CPA Andrew J. Toth, CPA Joseph P. Traeger, CPA James W. Treat, CPA Glendon W. Tudor, CPA Ronald W. Turpin, CPA, JD Janice M. Tyra, CPA Jeffrey H. Underwood, CPA Joseph P. Vande Bosche, CPA Stephen Richard Varner, CPA Jesse Vasquez Tod Vidovich, CPA Patricia L. Vollmer, CPA Igor O. Voytsekhivskyy, CPA Daniel H. Wagner, CPA Robert J. Wagner, II, CPA Kerri J. Walz, CPA Grace Wang, CPA Daniel J. Waninger, CPA Gregory R. Ward, CPA, ABV Robert A. Wedding, CPA Beth A. Wedmore, CPA Barbara A. Weir, CPA Linda Kay Wellman, CPA Garry D. Wells, CPA David A. Wertz, CPA Stephen M. Wessel, CPA Mark Steven Westerhausen, CPA, MST Wallace P. Wetherill, CPA, BA Michelle L. White, CPA Stephen J. Willem, CPA Cassandra Y. Williams Barbara A. Williams, CPA, CGFM
Deborah A. Williams, CPA Kent J. Williams, CPA Jeffrey L. Wilmes, CPA Jack Wilson, CPA James R. Wine, CPA Marilyn L. Wingstrom, CPA Cynthia M. Wirtner, CPA Daniel A. Wisley, CPA Michelle M. Withers, CPA Pamela S. Withey, CPA Michael David Wolf, CPA David G. Wolf, CPA Douglas A. Wolfe, CPA Hoagy J. Wright, CPA Harry A. Wright, CPA Samuel Wright, CPA John L. Wright, CPA, MST Bryan J. Wright, CPA Mary Pat Young, CPA Thaddeus B. Zaleski, CPA Joshua L. Zeigler, CPA Angela L. Zirkelbach, CPA
Richard S. Dennen, CPA Christopher Everett Denney, CPA, ABV, CVA Eugene H. Deutsch, CPA Stephen J. Diagostino, CPA Kory K. Dickerson, CPA Brian M. Dingman John P. Drake, CPA Jake D. Dunton, CPA, CFE E David Dycus, CPA Thomas P. Eastman, CPA Randall L. Effner, CPA Michael O. Elaman, CPA John M. Farrar, CPA, JD Rebecca A. Fitzsimmons, CPA Lisa Kay Fosnight, CPA Deborah J. Foster, CPA Ronald L. Foudy, CPA Randy D. Fry, CPA, CVA Jerry W. Fuhrmann, CPA, PFS, CFP Alan Joseph Furmankiewicz, CPA Michael E. Geiger, CPA Ryan W. Graber, CPA Deborah Kay Grammer, CPA Jeffrey W. Griggs, CPA, CFP Norris Groves, CPA, CMA, CFM Michael D. Gulley, CPA Donald H. Hanlin, CPA Mark L. Hartman, CPA Richard L. Helwig, CPA, JD Jeffry T. Herbst, CPA Scott Holland, CPA Darryl Wayne Hoover, CPA Elizabeth A. Hoover, CPA James A. Huber, CPA Stephen E. Hussey, CPA Howard Clay Jackson III, CPA Michael J. Jaicomo Laura Jaicomo, CPA James H. Johnson, CPA Stephen L. Johnson, CPA Charles Johnson, CPA Terry L. Johnson, CPA Carmen Lanette Johnson, CPA A Dave Jongleux, CPA Linda J. Keeney, CPA David C. Kehlenbrink, CPA, ABV Gayla B. Kempf, CPA Tony P. Key, CPA John P. Kiefer Michael J. Kindler, CPA Rebecca S. Kingry, CPA Kimberly M. Koch, CPA Rae Ann Koester, CPA Otto W. Krohn, CPA Joseph S. LaRosa, CPA, ABV, PFS, CFP Jeffrey Joseph Lathrop, CPA Thomas R. Lawrence, CPA
$60-$99 Alicia Aceves, CPA Mark A. Aiton, CPA Gordon M. Allen, CPA Brian M. Alwine, CPA/ABV, ASA Thomas J. Barnes, CPA Janet E. Basting, CPA Matthew K. Beardsley, CPA, JD Karen L. Behnke, CPA LeeAnn Boggs, CPA Daniel L. Boyle, CPA David C. Brown, CPA Charles A. Buechlein, CPA Mark William Buechlein, CPA Lawrence L. Buell, CPA Anthony T. Bultinck, CPA Rhett W. Burgess, CPA James D. Carr, CPA, MST Phoebe Poppas Carter, CPA Joseph K. Catron, CPA Karl J. Cender, CPA R. M. Chambers, CPA Shawn Lee Clawson, CPA Craig P. Coffman, CPA Ronald S. Cohen, CPA Matthew A. Cohoat, CPA Clinton C. Coon, CPA Billy L. Craigie, CPA David H. Cropper, CPA Jeffrey D. Curtis, CPA Frank A. Danner, CPA David M. Davis, CPA Haley A. Day, CPA Rhonda J. Deckard, CPA
CPA-PAC contributions have increased by nearly 75 percent since 2003 CPA-PAC Receipts ($) Total No. Contributors
2003 9,284 218
2004 13,807 275
2005 18,608 399
2006 20,491 418
2007 21,537 425
2008 27,672 589
2009 27,712 568
2010* 34,810 756
*(as of 12/31/2010)
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“Historically, CPAs have strived to provide leadership on legislative issues impacting our profession and the financial welfare of the public. The Indiana CPA-PAC provides us the opportunity to be heard. In 2010, the PAC exceeded its target contribution level thanks to both new contributors and our loyal long-time contributors. Every contribution enhances our ability to lend informative guidance to the legislative process thereby encouraging a reasonable approach to increasing regulation and financial reform. Please continue your support of the Indiana CPA-PAC, and encourage your peers to do the same. Thank you for giving your profession a voice.” – Jeff Kimmerling, CPA, Indiana CPA-PAC chairman
John S. Leemhuis, CPA, FLMI David W. Lemler, CPA Kerry Lenon, CPA, CFP John A. Lienhart, CPA, CFE Michael E. Lipp, CPA Eva L. Lowery-Yount, CPA Penny C. Lutocka, CPA, PFS, CFP S. Eric Marshall, CPA, JD Richard L. May, CPA Michael P. McCormick, CPA Jeffrey M. McGowan, CPA Jenni Lea McNaughton, CPA, JD Dale E. Meacham, CPA Karen I. Miller, CPA Jeffrey A. Milligan, CPA Bernard P. Montgomery Jr., CPA Mark H. Morris, CPA William F. Murphy, CPA, PFS, ABV, CFF, CVA Douglas Nisley John J. Nurkowski, CPA Michael J. O’Brien, CPA Tracy O. Osborne, CPA Bret A. Overdorf, CPA Nicole K. Palmer, CPA Seema Parikshak Verma, CPA Dale Alan Parkison, CPA Edward Thomas Pauckner, CPA Richard B. Peck, CPA Kimberly K. Peterson, CPA Daryl J. Petry, CPA Kurt Jacob Pickering, CPA Harold J. Plumley, CPA William J. Powlen, CPA G Michael Prugh, CPA John J. Quinn, CPA, CLU, FLMI John L. Race, CPA Linda R. Radaker, CPA Sarah Elizabeth Reisman, CPA Patty L. Renbarger, CPA Cynthia A. Riebersal, CPA Randall K. Riedy, CPA Gwendolyn E Risk, CPA Joseph H. Rodenberg, CPA Jessica N. Romine, CPA Douglas Roth, CPA
Norlin G. Rueschhoff, CPA Gregory L. Sale, CPA Kelvin G. Satchwell, CPA Michael E. Sawyers, CPA Lara C. Schmutte, CPA Anthony A. Schoen, CPA Perry M. Schroeder, CPA Patrick K. Sherck, CPA J. Robert Shine, CPA Kenneth L. Short Jr., CPA W. Alan Simmons, CPA Terra S. Skinner, CPA Jane A. Smiley, CPA Nancy Sue Sowers, CPA John E. Spiggle, CPA Julia A. Stauffer, CPA Randall J. Stoll, CPA George C. Stump, CPA William H. Svihla, DBA, CPA, CFE Terri J. Svihla, CPA James Thomas, CPA Robert Tiberi, CPA Mark A. Ticen, CPA Lewis J. Utterback, CPA Mark A. Vollmer, CPA David L. Wade, CPA James B. Wagoner, CPA Brenda S. Wagoner, CPA Curtis A. Whittaker, CPA Susi H. Willis, CPA Marshall K. Willis, CPA Vivian Winston, CPA Ellen F. Woods, CPA Douglas A. York, CPA Daniel L. Young, CPA C. Joseph Zauss, CPA Judy M. Zell, CPA, CSEP, CSRP Kevin T. Zerr, CPA
$100-$200 Kathryn A. Ahearn, CPA Michael R. Barker, CPA, CISA Quentin S. Blackford, CPA Roger A. Booth, CPA William F. Borgmann Jr., CPA
J. Robert Browning, CPA, PFS, CFP, AWMA Douglas L. Capper, CPA Timothy R. Deisher, CPA, PFS Stephanie R. Dunn, CPA Steven A. Eichenberger, CPA John Gerard Farrell, CPA Scott R. Frick, CPA Fred H. Gage, CPA Joel L. Gauthier, CPA Scott M. Geans, CPA Vikki L. Geras, CPA David E. Greene, CPA, JD David J. Hamernik, CPA, CIRA, CFF Kevin Jon Hamernik, CPA, CIRA David J. Haney, CPA Kevin E. Huston, CPA Steven R. Johnson Elizabeth A. Kachel, CPA, CMA John P. Kane, CPA Kenneth J. Keber, CPA Richard D. Keiffer, CPA Jeffrey C. Kimmerling, CPA Otto W. Krohn, CPA Kevin G. Kruggel, CPA William N. Kulsrud, CPA Mark Robert Lanning, CPA Dan Lappin Robert W. Lazard, CPA Steven W. Lee, CPA Ralph G. Meador, CPA Bruce W. Miller, CPA Michael L. Motter, CPA Daniel P. Naragon, CPA Ralph R. Naragon, CPA Sean M. O’Connor, CPA William R. Owen Jr., CPA, CFP® Gary B. Peters, CPA Kevin L. Petrow, CPA Ronald J. Pohl, CPA, CFP Linda L. Rea, CPA William H. Rea, CPA John D. Sauder, CPA Stephen P. Schelonka, CPA Karen L. Schenk, CPA Mark E. Shaffer, CPA
Stacy Hamilton Sheedy, CPA, JD Donald J. Smith, CPA Victoria K. Spartz, CPA Catharine P. Stewart, CPA Renee C. Stewart, CPA Max L. Stinson, CPA Louis E. Stratton, CPA, CITP Jeffrey B. Sturgis, CPA, CFP J. Tyler Thompson, CPA Mike Turpin, CPA Kathy J. Tyson, CPA
$200+ Julia R. Barber, CPA Steven L. Beardsley, CPA, CVA O. Earl Elliot, CPA Jeffrey P. Fusile, CPA Brian L. Hamil, CPA Rex E. Miller, CPA Matthew J. Pletcher, CPA Joseph A. Scheidler, CPA Anita Weaver Sherman, CPA Verne P. Seehausen, CPA Thomas J. Sponsel, CPA, CVA, ABV, CFF
FIRM SPONSORS Kemper Group CPA, LLP – Greenfield ($1,200) Agresta, Storms and O’Leary ($75) Kent J. Shipley, PC ($60) Aspire CPAs, PC ($50)
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The CPA Vision Project
theFUTURE isNOW The AICPA’s Paul Stahlin on the accuracy and relevance of The CPA Vision Project, and where we go from here
By Dave Shatkowski email@example.com INCPAS Vice President – Communications
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From 1996 to early 1998, the AICPA and state CPA societies embarked on a project to chart the vision of the CPA profession through the year 2011. The CPA Vision Project, or Process, was designed to help the profession stay ahead of the curve and prepare for the future. Fifteen years was an appropriate time frame to consider and seemed like a long way off at the time. But when the ball dropped at midnight on Jan. 1, the year 2011 was here. And now. So how visionary was the profession? To find out, we interviewed current AICPA Chair of the Board Paul Stahlin, CPA, who was in Indianapolis for the fall meeting of the Society’s Leadership Cabinet and Emerging Leaders Alliance. Not only will Stahlin be leading the CPA Vision revalidation project in 2011, but he was a member of the AICPA Council back in 1998 giving him broad knowledge of the entire vision process. “When you think about the core purpose – making sense of a changing and complex world – if you think about it, that was true then and it’s true today,” said Stahlin. “Today what you have is a rapidly changing world. It’s the instant messaging, instant information and the portals that send those messages to destinations all throughout the world. The time frame is compressed and much more rapid, and that’s what we’ve got to be ready to adapt to.” In the fall of 1997, numerous future forums were held throughout the country
The CPA Vision Project
including Indiana in which the AICPA and state society members at the grassroots levels had the opportunity to provide feedback that led to the identification of the CPA Vision’s national top five core values, core competencies, core services and significant issues. A National Future Forum in January 1998 crafted the core purpose and vision statement for the profession. “What they tried to do is have different individual groups to survey what the position of the AICPA was – what structure this project was going to take,” Stahlin added. “They interviewed futurists and distilled it down to a process of a year and a half to come up with the core values, core services, core competencies and the core purpose. They came up with a pretty finite set of attributes.” A promotional campaign was then launched throughout the profession with a new web site, cpavision.org, posters, articles, videos and even a handy wallet card with the top fives listed for easy reference. So why was a 15-year time horizon chosen? Given the known demographics but also the unknown technological advances, it was long enough to reasonably forecast, but also short enough to really understand with some degree of certainty. “It was a 15-year time period from start to finish,” said Stahlin. “When they looked at it, vision is more lasting than a mission. Vision should be out to the future and beyond. “We did have a renewal – a rechecking and a revalidation – in 2003 after the Enron crisis,” he added. “From a risk management standpoint, is the vision still set properly for the profession? We did validate that. It validated that the core purpose, the core values and the core competencies were all the same.” Stahlin went on to discuss many of the specific aspects of the CPA Vision, and remark about how accurate and relevant they have turned out to be. “I am just amazed. Integrity … number one,” Stahlin said. “I look back at my whole career, and that was how I grew up and that was part of my DNA. That’s what sets our profession apart from any other profession – the highest degree
“Today what you have is a rapidly changing world. It’s the instant messaging, instant information and the portals that send those messages to destinations all throughout the world. The time frame is compressed and much more rapid, and that’s what we’ve got to be ready to adapt to.” of integrity. Competence, the skill sets, lifelong learning, continuing education, those are all characteristics that make up the core values. That was the intelligence not only to be able to set this up, but to carry through and identify them. “Also objectivity and attuned to broad business issues … that was thinking out of the box back then, now it’s a necessity,” he said. The revalidation project will unfold in 2011 and set a vision for the profession through 2025. It’s only natural, according to Stahlin, to consider updates and modifications. “I think at some point there needs to be a re-look at it,” remarked Stahlin, who doesn’t think there will be a lot of radical changes to the vision despite many changes affecting the CPA profession. “We didn’t anticipate the technology. The social media, the regulatory changes, the economic changes … even the way people have changed their habits. We’re becoming more distant in terms of faceto-face communications than we were back then.” Unlike the original Vision Project, this time grassroots feedback will be acquired through the use of technology. Surveys and other online tools will be utilized to gather feedback from not only experiences members, but young professionals and non-CPAs as well. The goal will be to gain consensus on what needs to be updated. “We will look to see if there are any others we should add on to or any we should delete,” commented Stahlin. “That’s why we need to get youth involved
and some people outside the profession. Core services are one area we could take a look at and could expand and contract. Sustainability is one area that is a business discipline that we could add a lot to. Technology services could be expanded to a much broader concept. “We’ve got designations on financial planning, so we need to broaden that,” he continued. “We didn’t even know what international services were back then compared to today. Those are things we’re going to refine. Our core competencies – communications, strategic and critical thinking, leadership skills, those have not changed. The focus on the customer, client and market will have to be looked at. Maybe we’ll interpret it today a little differently than we did 15 years ago.” Developing a vision is more than just the right thing to do. It brings cohesiveness and continuity to the entire profession by uniting all CPAs with the same core values and competencies. It’s also something tangible that will help CPAs communicate and promote their profession. “We want to make sure the core values, the core services, the core competencies, the core purpose is understood by all CPAs,” said Stahlin. “It’s a great way to make sure everybody is on the same page. If that doesn’t change over time … if that just revalidates it, it just shows it is part of our own DNA. We need that to continue and to thrive. That’s the value of the CPA. To me, that’s what it’s all about.” In Stahlin’s own words, the wisdom of this vision was visionary.
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State of the CPA Profession
Evolution State of the CPA Profession in Indiana By Tim Deisher, Chair Indiana Board of Accountancy
It has been said that it is not the strongest of the species, or the most intelligent, but the most responsive to change that survive. The Indiana Board of Accountancy is striving to be responsive to changes in the world in which we live. As your board, we serve the public interest and CPAs in Indiana, and we strive to react to changes in the business and accounting environment, as well as to provide leadership moving forward.
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State of the CPA Profession
The board operates under the Indiana Professional Licensing Agency. In August 2010, Nicole Spears joined the board as director. During the past year, the board also began working closely with Lisa Bentley, IPLA deputy director, and Marty Allain, IPLA general counsel. In 2010, Anderson CPA John Kane was appointed by Governor Mitch Daniels to the board. We welcome all the new faces to the team. In last year’s article, I covered some of the proactive changes made, such as mobility, for CPAs. This allows a CPA who is not an Indiana resident, and whose principal place of business is outside Indiana, to have all the privileges granted an Indiana CPA, without the need to obtain a certificate or permit. Mobility is now in 47 states and three more are in process. The board also simplified the reciprocity process. If you have a current CPA license in a substantially equivalent state, you simply provide proof of that license with the appropriate fee and the Indiana board will approve your application. Thirty-one states have developed Accountancy Licensing Database, which allows the public to check for active licenses. As a result, nationally ALD currently features more than 550,000 licensee records. This is particularly useful in enabling employers to verify active licenses for prospective employees. The remaining states have a desire to add ALD and will do so once technology issues are resolved. An area on which our board has focused efforts in 2010 is developing a budget and implementing a structure for the use of revenue from the investigative fund established in 2007 by the Indiana General Assembly. The fund receives $10 per year for the renewal or issuance ($30 for the triennial renewal or issuance) of your Indiana CPA license. The fund was created to assist the board in compliance with the accountancy laws and rules. This is a historical event for Indiana CPAs, as it is the first time in our history that we have funds solely dedicated to us. Indiana had been one of only seven states without a designated budget to pursue compliance. During 2010, the board developed a budget and will be hiring a compliance officer in early 2011. Our budget includes funds to seek out those who do not comply with accountancy laws and rules and to be proactive through education – all to further the board’s mission of serving CPAs and protecting the public interest. In 2010, the board – through IPLA, as well as a volunteer CPA committee chaired by CPA Martha Nommay – conducted a random audit of CPE for the prior reporting period. In the audit, 302 CPAs were randomly selected, representing approximately three percent of state CPA licensees. Of the 302 audited, 87 were noncompliant. Of those, 20 appealed and had hearings to determine their compliance. Twelve
submitted additional documentation and were found to be in compliance, and the notice of noncompliance was waived. In addition to the random audit, 29 that failed the 2006 audit were re-audited, and all but a couple were found to be in compliance during this cycle. In October, the board held a public hearing and adopted a rule removing the term “for accountants” from the ethics requirement for CPAs. The board felt this term may restrict some CPAs from obtaining ethics education as it relates to the field in which they work. As a reminder, CPAs are required to take four hours of ethics CPE for each three-year renewal cycle. In late May 2010, the board instructed the National Association of State Boards of Accountancy – Exam Services to begin accepting CPA candidates’ applications within 60 days prior to completing the educational requirement. Often it will take close to 60 days to process the CPA Exam application. Prior to this change, if a May graduate applied to take the exam after graduating in early May, the earliest he or she could sit for the exam would have been July, given that June is a blackout month. Allowing the application to be made 60 days prior to graduating, the candidate would most likely be able to sit for the exam after graduation in May. In Indiana, we have a fairly high passage rate of exam candidates. The passing rate for all four sections among first-time candidates in Indiana is 40 percent, and among repeat candidates is 49 percent. Among first-time candidates, Indiana University-Bloomington (graduates without advance degrees) is rated seventh in the nation in passing rate for all four sections. The board is monitoring issues that have and will continue to affect our profession, such as International Financial Reporting Standards. As implementation of IFRS approaches, the board will focus more on the issues involved. Since the board’s rules reference professional standards, which include IFRS as acceptable standards, we have determined IFRS-based financial statements are currently acceptable in Indiana. Other areas that have an affect on Indiana CPAs include changes that occur nationally. During 2010, NASBA, AICPA and Prometic (which has administered the computer-based CPA Exam) renegotiated their agreement. The agreement was extended until 2024. There has also been a delivery agreement executed for the CPA Exam to be taken internationally for 2011 through a pilot process. Regardless of the exam location, the focus is on protecting states’ rights to issue licenses. Join us in this era of change to make tomorrow better than today. As questions or concerns arise, please contact the board or our executive director at IPLA. We can be reached by phone at (317) 234-3040 or via e-mail at pla11@pla.IN.gov. CPA IN Perspective
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The CPA Exam Process Is Tricky...
ABOUT THE EXAM: 14.00.00
Time A: + Q:
The CPA Exam is a four-part, computer-based test. Each section 14.00.00 includes three Multiple-Choice Question (MCQ) testlets. Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR) and Regulation (REG) will include one testlet containing six to seven short Task-Based Simulations (TBS). Business Environment and Concepts (BEC) will include three written communication tasks on BEC topics.
Auditing and Attestation (AUD)
Sections Auditing and Attestation (AUD)
Business Environment and Concepts (BEC)
Financial Accounting and Reporting (FAR) I. Conceptual Framework, Standards, Standard Setting & Presentation of Financial Statements (17-23%) II. Financial Statement Accounts: Recognition, Measurement, Valuation, Calculation, Presentation & Disclosures (27-33%)
III. Auditing & Attestation: Performing Audit Procedures & Evaluating Evidence (16-20%)
V. Accounting & Review Service Engagements (12-16%)
A: + Q:
II. Auditing & Attestation: Understanding the Entity & its Environment (including Internal Control) (16-20%)
A:& I. Auditing & Attestation: Engagement Acceptance 14.00.00 Understanding the Assignment (12-16%)
IV. Auditing & Attestation: Evaluating Audit Findings, Communications & Reporting (16-20%)
Financial Accounting and Reporting (FAR)
III. Specific Transactions, Events & Disclosures (27-33%)
IV. Governmental Accounting and Reporting (8-12%) V. Not-for-Profit Accounting and Reporting (8-12%)
IV. Professional Responsibilities (including Ethics & CPA Independence) (16-20%)
Business Environment and Concepts (BEC)
I. Corporate Governance (16-20%)
I. Ethics, Professional and Legal Responsibilities (15-19%)
II. Economic Concepts & Analysis (16-20%)
II. Business Law (17-21%)
III. Financial Management (19-23%)
III. Federal Tax Process, Procedures, Accounting and Planning (11-15%)
IV. Information Systems and Communications (15-19%)
V. Strategic Planning (10-14%) VI. Operations Management (12-16%)
IV. Federal Taxation of Property Transactions (12-16%) CPA V. Federal Taxation of Individuals (13-19%)
VI. Federal Taxation of Entities (18-24%) CPA
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Searching for reliable answers to your CPA Exam questions and keeping up with important changes can hold you up, leave you confused about what you need to know, and diving for the phone to call the Society. Throughout the year, we answer hundreds of questions from employers, CPA candidates and students about the Exam. We are more than happy to help, and we may be able to save you the confusion … and a phone call. Take a look at the helpful chart below, and test your exam knowledge. By Tony Flack firstname.lastname@example.org 14.00.00
INCPAS Marketing Communications Specialist
How to take the exam: Application Process
Applicants can apply to sit for the CPA Exam by completing the application for the Uniform CPA Exam. Applicants are asked to submit the completed first-time application, exam fees and official transcripts.
Applicants must reach 150-credit hours of college education before they can sit for the CPA Exam.
Students now have the opportunity to apply for the CPA Exam 60 days prior to completing the 150-hour requirement. Should a student apply early, they must complete the certificate of enrollment form and have their educational institution return the completed form to CPA Exam Services. It is the student’s responsibility to submit final transcripts no later than 60 days following graduation. Should a student not prove they’ve met the educational requirements in the allotted time, the Notice to Schedule will be revoked and any Exam scores will be invalidated.
Learn more Indiana CPA Society incpas.org/Public/Candidates/ CPAExamFAQs.aspx email@example.com (317) 726-5000
Indiana Board of Accountancy in.gov/pla/accountancy.htm pla11@pla.IN.gov (317) 234-3040
National Association of State Boards of Accountancy nasba.org/nasbaweb/NASBAWeb.nsf/ wpecsp?openform&stateabbrev=IN
The Uniform CPA Examination web site
CPA Candidates must successfully pass all four CPA Exam sections and have 24 months of full-time employment. Internships count!
Link to First-Time Application: nasba.org/862571B900737CED/0/82F6A 2188205F59B862571B90074425A/$file/ INFT&IA.pdf
Link to Education Requirements:
What about International Financial Reporting Standards (IFRS)? Test takers need to be bilingual. CPA Exam content will likely include both U.S. GAAP and IFRS for some time. Don’t freak out, your review course providers will prepare you.
http://www.nasba.rg/862571B900737CED/ ENL/IN%20FT%20INFO%20SHEET%20 ONLY/$file/INFTinfo%20Sheet%20only.pdf
Link to Certificate of Enrollment: nasba.org/862571B900737CED/ENL/ IN%20COE/$file/INCOE.pdf
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Congratulations Catharine Stewart
The entire team at Estep * Doctor & Co. is proud to recognize Catharine P. Stewart, CPA as the 2010 Outstanding CPA in Public Practice.
“Catharine’s dedication and leadership are greatly appreciated by all the individuals and organizations she is associated with.”
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• Collection cases now make up more than 50 percent of appeals cases • 700 new appeals employees in last two years • Use past track and early referral programs to speed time • Most appeals agents have been trained in mediation now National Taxpayer Advocate Nina Olson reported on efforts to assist taxpayers. The taxpayer advocate office is an independent office to assist taxpayers with unresolved problems. Olson spoke on these issues: • Record number of cases processed (not a good sign) • Significant problem is use of IRS time and resources to process and manage other programs • Problems areas: --Automatic liens --Global wealth --1099 rule --Amended return processing slowed down
Estep * Doctor & Co., P.C. Certified Public Accountants / Consultants 3737 W. Bethel Ave., Muncie, IN 47304 www.edcpa.com
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continued from page 25...
This is an important annual meeting between the IRS and AICPA to discuss challenging tax legislative and processing matters. The dialogue is helpful and opens the door for ongoing continued on page 39...
continued from page 38...
discussions on these topics. Items discussed most often were: • Preparer registration (PTIN) • International issues • Focus on high income/high wealth examinations • Challenge for the IRS doing other tasks such as stimulus checks and health care grant applications
Additionally, IRS stakeholder liaisons from Indiana, Ohio and Kentucky hosted a Tri-State Liaison meeting in Cincinnati in August. This was the first practitioner meeting held by IRS liaisons. Items discussed included: • Improving communication in correspondence audits • E-filing • Tax return processing • State tax issues with representative of Ohio, Kentucky and Indiana • Preparer registrations
Are you considering your options for the future? Do you need an exit strategy and transition plan? If so, Accounting Practice Sales can help. We’ll provide the professional guidance to assist you with finding the right buyer at the right price. Interested in a free valuation and consultation? Call us today at: 1-800-CPA-SELL (272-7355) or visit www.accountingpracticesales.com
This was a good program to discuss tax processing matters with local IRS and service center representatives. Along with the national meeting and national tax conference, they are good examples of how INCPAS is staying connected to national tax processing matters.
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What’s on your mind? Indiana CPA Society Indiana Jump$tart Coalition Financial Literacy Workshop for Educators – Muncie.
In this photo: INCPAS members and staff promote financial literacy
Indiana CPA Society Money Smart Week Indiana 2010 Kick-off Breakfast.
In this photo: Money Smart Kid award winner Jayon Hunter
As seen on incpas.org/Facebook Indiana CPA Society What’s in store for your firm in the future? What’s it going to take to improve client retention? How will you react to major issues facing your firm, such as healthcare reform? The 2010 Small Firm: Big Business conference sponsored by Tilson HR helped answer these pressing questions. In this photo: INCPAS members attending Small Firm conference
Indiana CPA Society Game
On: CPAs in Action hosted nearly 100 students at the Hilton in downtown Indianapolis for an exciting day of career exploration and networking.
In this photo: Students talk with an INCPAS Game On speaker
At the hearing today As seen on incpas.org/LinkedIn
IN Board of Accountancy approved changes to the CPE rule regarding the ethics “for accountants” requirement (872 IAC 1-3-3d). The words “for accountants” were removed from the rule. Reminder – CPAs must have 4 CPE hours in ethics for this license cycle.
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incpas.org/Facebook & incpas.org/FacebookStudents WINTER
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