Page 1

The Kentucky

CPA

Journal

Issue 4 2017

The Journal of the Kentucky Society of CPAs

Bourbonomics in the Bluegrass An inside look at Kentucky’s booming bourbon industry

Also: Pension reform update A case for firm mobility Making ethical decisions - a guide

kycpa.org


Online Certificate in Accounting M A K E A M O V E T H AT A D D S VA L U E TO Y O U R C A R E E R I N 2 1 C R E D I T H O U R S *

Offered by the School of Accountancy, this 100% online certificate is designed for professionals with non accounting degrees who want to: Gain skills that are in high demand Increase earning potential Prepare for greater leadership opportunities Become fluent in the language of business Excel in a global business Prepare to sit for the CPA exam in Kentucky

*Requirements include: • A bachelor’s degree from a regionally accredited college or university • Completion of prerequisites or their equivalent • A minimum cumulative GPA of 2.8

L E A R N M O R E TO DAY !

UofL.me/CAPonline | 800.871.8635 | online@louisville.edu


The Kentucky CPA Journal / Issue 4 2017

What’s inside

What’s inside Administration

President's message......................................... Page 4 Across the Board.............................................. Page 5

Business and Industry

How CFOs can help chief marketing officers drive growth....................................... Page 8

Ethics

Ethical decisions: How should we do it?...... Page 11

Tax in the Bluegrass

Updated Kentucky tax regulations on the horizon........................................................ Page 13 Kentucky DOR forms update........................ Page 15

Legislative

KyCPA supports CPA firm mobility............ Page 18

Cover

Bourbonomics: An american story............... Page 20

Technology

New management strategies to protect your business against cyber threats.............. Page 26

CPE

Calendar............................................................. Page 29 Spotlight: TEN HUT! CPE Boot Camps........ Page 32 Did you know?................................................. Page 33 On-site CPE training....................................... Page 33 Conferences...................................................... Page 34

Educational Foundation

Create a Legacy................................................ Page 38

The 2017-2018 KyCPA Board of Directors: Kevin Joynt, president, of Deloitte & Touche, Louisville William Jessee, immediate past president, of Henderman Jessee & Company, Louisville Rebecca Phillips, president-elect, of MCM CPAs & Advisors, Louisville Elizabeth Woodward, secretary-treasurer, of Dean Dorton, Lexington John Chamberlin of Van Gorder Walker, Erlanger Steve Daniels of T&C Contracting, Louisville, who is also a member of the executive committee Kris Kemp of Myriad CPA Group, Owensboro Skip Looney of Rudler, Fort Wright, who is also a member of the executive committee Wes Omohundro of Allen Company, Inc., Lexington Elizabeth Rankin of ANEW 401k TPA, Louisville Marisa Smith of Airgas MidAmerica, Bowling Green Douglas Allen of Kentucky Community & Technical College System, Versailles Heather Cochran of RFH in Lexington Esther Thompson-Long of LG&E and KU Services Company, Louisville Mike Campbell of Venminder, Elizabethtown and Cambell is also a member of the executive committee Editorial Board Chair: Mark Loyd of Bingham Greenebaum Doll, Louisville

CEO - Penelope P. Gold Editor - Matt Lambert Associate editor/Art director - Kimberly Lindsey Associate editor - Katherine Sproles

Accounting careers

Letters to the editor: If you have ideas to share, opinions to express or suggestions for future stories, please email Editor Matt Lambert, KyCPA communications director, at mlambert@kycpa.org.

Society

Advertising: If you would like to advertise in The Kentucky CPA Journal, please contact the Society at marketing@kycpa.org; 502.266.5272.

Scholarship applications accepted Dec. 1- Feb. 19.................................................. Page 41 Free CPA Exam workshop Nov. 9................ Page 41 KyCPA honors 100% Champions................. Page 42

Members

Welcome new members................................. Employment resources.................................. Members in motion........................................ KyCPA member profile.................................

Page 44 Page 46 Page 47 Page 48

Classifieds...................................................... Page 49 Watercooler

By the watercooler........................................... Page 51

Please note: this publication is not technically reviewed. Opinions expressed in The Kentucky CPA are those of the authors and do not necessarily reflect Society policy or editorial concurrence. Publication of advertisements does not constitute an endorsement of products or services. The editor reserves the right to accept or reject advertising and editorial material in accordance with editorial judgment and publication guidelines.

kycpa.org

3


The Kentucky CPA Journal / Issue 4 2017

Administration

President's message T

he KyCPA prides itself on its role as a leading advocate for financial professionals across Kentucky. Part of this responsibility includes keeping up-to-date on all major fiscal issues facing the Commonwealth, especially those emanating from the state legislature

in Frankfort. As I am sure you are well aware, Gov. Matt Bevin has called for a special legislative session this fall to address Kentucky’s public pension system. The latest report indicates that the system is at least $34 billion and as much as $64 billion short of what it needs to pay retirees for the next 30 years. But this is not just an issue for only those who paid into the system – it could affect every citizen in Kentucky. How do you make up for the shortfall? Just as you think – either raise taxes or cut services – both very uncomfortable choices. Senate budget committee chairman Sen. Chris McDaniel recently said the options were clear: Either raise taxes by 10 percent or cut vital services – including education – by at least 12 percent just to make a dent in the massive shortfall. This situation could impact Kentucky’s business climate for decades to come. It is clear that we have a big challenge on our hands and the KyCPA is determined to be part of the solution.

4

As an organization, we are engaging and offering insight to policymakers charged with reconciling this fiscal challenge. I urge all of our members, as financial professionals – and more importantly, taxpayers and citizens of Kentucky – to use your voice as well. Contact your legislators and let them know that this issue must be dealt with in a manner that resolves the shortfall, but does so without failing retirees and damaging our state’s business community. As I close this letter, I would be remiss if I did not offer my gratitude and best wishes to KyCPA CEO, Penny Gold, who is retiring in December. Under Penny’s leadership KyCPA has positioned itself as a proactive and influential force, by working with policy makers at both the state and national level, on behalf of Kentucky CPAs, their clients and our state’s business community. Over the last 14 years, she spearheaded efforts to keep up with a changing industry. We now offer training and opportunities in transformative areas – such as forensic accounting and real estate planning – as well as provide access to more than 6,000 online webcasts and training seminars for society members. Penny’s goal has always been focused on how to better serve our members and enhance our profession. As an organization, we are better due to her leadership and wish her the very best in her well-deserved retirement. About the author: Kevin Joynt is a managing director at Deloitte & Touche LLP in Louisville and can be reached at kjoynt@deloitt.com.


The Kentucky CPA Journal / Issue 4 2017

Administration

Across the Board By Penny Gold

I

am very pleased to introduce Matt Lambert, who recently joined us as the Society’s new communications director. Matt, who is originally from New Orleans, has spent his whole career in communications and marketing. He’s worked as an award-winning journalist, served as a communications director in the U.S. Congress in Washington D.C. and most recently in communications and marketing at the University of Louisville, where he managed the alumni magazine, among other duties. He brings a wealth of experience to KyCPA and I know that he looks forward to working with all of you.

KyCPA welcomes new communications director Matt Lambert

This month’s journal focuses on members that primarily work in the business and industry sector. You may be interested to know that approximately 50 percent of KyCPA members do not work in public practice but in the fields of business, industry, nonprofit, government and education. Industry members – much like public practice – need more CPAs in the workplace. According to Robert Half’s Salary Guide, business and industry CFOs have worries similar to those in public practice and are constantly concerned about staff retention. Among the findings: • 36 percent think they could lose staff within the next year • 45 percent are somewhat or very concerned about retaining their current staff A recent study by the AICPA examined the trend of young CPA professionals leaving public practice

and moving into the business and industry sector. The study showed that the main reason respondents considered the transition was simple - money - with 89 percent citing compensation as the top factor. While those who stick with public practice over the long-term may surpass the income of those working in industry, according to Robert Half’s salary guide industry positions offer higher starting salaries. The study also showed that unmanageable work pressure was a big reason for transitioning, coming in second in the survey at 85 percent. This has been an ongoing problem facing those in public practice, not only during tax season but also due to the extensive travel demands of the audit function. The lack of flextime and adequate support for professional development were also significant factors, registering at 84 percent in the study. Both can be easily remedied by industry and public practice, but are not always considered when structuring positions. Rounding out the top six are opportunities for career growth and mentoring toward partnership, at 78 and 70 percent respectively. This indicates that firm owners and partners need to look for ways to let younger professionals know they are being considered for higher positions, such as partnership. Earlier studies indicate a disconnect between the perception of firm owners and managing partner and those working their way up. If young professionals truly don’t understand the opportunities that lie before them, they may well get discouraged and move on. If firms want to retain young CPA talent, they must share their plans and vision for their future (including future financial opportunities). In another recent AICPA survey, conducted this April, business and industry CEOs shared their thoughts regarding major concerns facing the accounting profession. They are: • 79 percent - Over regulation • 74 percent - Exchange rate volatility • 73 percent - Government response to debt • 69 percent - Increasing tax burden • 65 percent - Social instability

Continued on p. 6 kycpa.org

5


The Kentucky CPA Journal / Issue 4 2017

Administration

Across the Board continued In March of this year, the AICPA conducted a survey, where business executives expressed that they were more optimistic about the current business climate compared to previous years. The results show that: • 69 percent were optimistic in Q1 of 2017 (Compared with 28 percent in Q1-2016, and 38 percent in Q3-2016) • 67 percent report business expansion plans (vs. 52 percent in 2016) • 72 percent of businesses with revenue of $10 million to $100

million expect to expand (63 percent in 2016) 61 percent of businesses with under $10 million in revenues plan to expand (up from 52 percent in 2016) 20 percent have plans to hire (compared with 15 percent in 2016)

The survey also examines the CPA’s standing among CEOs and business decision makers. CPAs had a 93 percent ranking for in-house CPAs and a 97 percent approval rating from investors. This reflects the CPA's importance to the health of the

financial markets. Even though external CPAs don’t always bring good news, they still scored an impressive 90 percent positive rating. The profession should be extremely proud of our standing within the business community. It is also worth noting that CPAs are well respected by the Kentucky General Assembly and by Congress. This is a direct result of your reputations back home. As we move closer to a special session on tax reform, I encourage business and industry members to take an active part in

The AICPA-endorsed CPA Value Plan provides industry-leading professional liability insurance that gives you the freedom to delve into new areas of practice with the confidence your firm is covered. Program features include: • Coverage specifically designed for small CPA firms • Limits from $100,000 to $2 million for qualified firms • A variety of credits to help reduce your premium • Optional CPA NetProtectSM for cyber network damage claims and privacy breaches*

GROW YOUR FIRM

• Subpoena assistance, regulatory proceedings coverage, and more

Please contact Jason Wolff at Schwartz Insurance Group at 800.366.8177. Endorsed by:

In Kentucky by:

Underwritten by:

Brought to you by:

WITH CONFIDENCE

*CPA NetProtectSM is offered for an additional premium as part of the AICPA Professional Liability Insurance Program. Aon Insurance Services is the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc. (TX 13695); (AR 100106022); in CA and MN, AIS Affinity Insurance Agency, Inc. (CA 0795465); in OK, AIS Affinity Insurance Services Inc.; in CA, Aon Affinity Insurance Services, Inc. (CA 0G94493); Aon Direct Insurance Administrator and Berkely Insurance Agency; and in NY, AIS Affinity Insurance Agency. One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. “CNA” is a registered trademark of CNA Financial Corporation. Certain CNA Financial Corporation subsidiaries use the “CNA” trademark in connection with insurance underwriting and claims activities. Copyright © 2017 CNA. All rights reserved. E-12399-917 KY

6


The Kentucky CPA Journal / Issue 4 2017

the debate. Because of your high ethical standards, knowledge, independence and objectivity, when you talk - policymakers listen. Also, be sure to let the Society know if there are specific tax laws or regulations negatively impacting your business. The Red Tape Reduction initiative of Gov. Bevin and the regulatory repeal effort of the Trump administration (repeal two regulations for every one passed) makes this a perfect time to improve our overall business and industry environment. Because Kentucky’s members work in so many diverse areas, we continually look for ways to bring members with similar interests together. For example, every year we host a variety of conferences including: • Business and Industry Conference • Manufacturing Conference • Governmental Accounting and Auditing Conference • Financial Institutions Conference • A new Agriculture, Food and Commodities Conference (see p. 34 for details) • Commercial Real Estate Conference (see p. 35 for details)

• Women's Leadership Conference (see p. 36 for details) • Construction Conference (every other year) • Nonprofit Conference (every other year) • Natural Resources Conference (every other year) The Society is always open to new ideas in Business and Industry that deserve special attention, so please share your suggestions with us. Of course, there is always a wide selection of technical CPA seminars for B&I members which are available in person or online at KyCPA.org. Many members may not be aware of the Society’s personalized service to help bring professional speakers to you (to your company, firm, town or region). Only 10 attendees are needed for us to work with you on an in-house program. If you are interested, just contact Suzanne Sturgeon at the Society: 502.736.1385 or ssturgeon@kycpa. org. Business and Industry members are always top of mind at the Society. According to our membership surveys, one of the most appreciated services are our Business Intelligence Briefs which

Administration

are released via email every morning. Economist Chris Kuehl - whom many of you have heard at a KyCPA conference - crafts these reports at 4 a.m. every morning to provide members with an in-depth industry and financial analysis. If you don’t open these briefs, you are missing some important insights that might impact a company’s financial strategies. Other Business and Industry benefits include: • A host of leadership opportunities • CFO and controllers roundtable • Talent pipeline development • Professional networking opportunities Most of all, membership in the Kentucky Society of CPAs provides a wonderful home base for members in Business and Industry. Never underestimate the value of membership for building competency and enhancing your professional network and career. We appreciate your membership and the Society will continue to work to earn your respect and loyalty. Please let us know what else we can do to help make you and your business more successful.

About the author: Penny Gold is the CEO of the Kentucky Society of CPAs. She can be reached at pgold@kycpa.org.

kycpa.org

7


The Kentucky CPA Journal / Issue 4 2017

Business and Industry

How CFOs can help chief marketing officers drive growth This article first appeared in CGMA Magazine. For more articles, sign up for the weekly email update from CGMA Magazine at http://bit.ly/UZ07NC.

By Sabine Vollmer

M

any CFOs have taken note of the valuable customer data that digital technology is generating for the marketing department and have sought a closer relationship with the chief marketing officer, a global EY survey on the changing role of the CFO suggests. Nearly two-thirds (63 percent) of the 652 CFOs polled by EY said their involvement with marketing has increased in the past three years, and 54 percent said they are collaborating more with the chief marketing officer (CMO) to develop new products and services. A strong relationship between finance and marketing can help a business achieve profitable, sustainable growth in the digital economy, but the CFO and the CMO have to first overcome relationship barriers such as the absence of common tools and processes and continued cultural differences. “For organizations to remain relevant and thrive, the CMO needs to call into question all aspects of the marketing mix – across products, price, distribution channels and promotions,” EY says. “The CFO, meanwhile, needs to make the strategic investments that will enable established companies to adapt without cannibalizing their inherent strengths, and new companies to leapfrog their competitors.”

Not enough collaboration

Traditionally, CMOs have had a closer relationship with the CEO than with the CFO. Sixty percent of executive managers polled in a 2014 EY study considered the business relationship between the CMO and the CEO strong. Only 43 percent said the CMO and the CFO had a strong business relationship.

8

Although many CFOs have recognized the value of working more closely with CMOs, EY’s 2015 poll suggests CFOs and CMOs still don’t collaborate enough: • Fewer than half (47 percent) of the polled CFOs felt they made a significant or very significant contribution to improving customer segmentation and insight, which can help a business differentiate itself from the competition. • Measuring marketing’s return on investment was a high or very high priority to more than half (59 percent) of CFOs polled, but only 13 percent said the agendas of marketing and finance were aligned. • Of the 20 percent of CFOs who considered product portfolio optimization a very high priority, 81 percent reported close collaboration with the CMO. Of the CFOs who prioritized product portfolio optimization less, only 47 percent reported a close relationship with the CMO. • Only 25 percent of CFOs said they are collaborating more closely with CMOs because of the shift to digital within the business. To overcome the barriers and for their relationship to be successful, CFOs and CMOs should: Agree on the metrics that matter for enterprise value. About one-third (32 percent) of the CFOs polled said the absence of a clear set of key performance indicators linking financial performance and the marketing agenda is one of the biggest barriers preventing a closer relationship with the CMO. To come up with metrics that work for both functions, finance leaders will have to be mindful to include hard financial measures and more nuanced, non-financial measures to assess factors such as the value of having a well-known brand name.


The Kentucky CPA Journal / Issue 4 2017

Bridge the cultural divide between the two functions. Thirty-one per cent of the CFOs polled blamed cultural differences for keeping finance and marketing from collaborating successfully. To overcome the barrier, CFOs should make both sides aware of their different mindsets and encourage dialogue to help accomplish the business’s strategic priorities while staying within the business’s risktolerance limits. Collaborate on marketing’s analytics transformation. One-quarter of polled CFOs

said marketing is too difficult to quantify, but Big Data and advanced analytics are transforming marketing. CFOs can ensure the structures and investments are in place to help marketing manage information security and turn the data into meaningful intelligence. Team up on the marketing planning process. Twenty-nine percent of polled CFOs didn’t see the value in collaborating with CMOs, but businesses are looking beyond what has worked and what hasn’t in the past. In the digital economy, effective

Business and Industry

marketing planning is essential for driving profitable growth, and finance can create value by helping ensure that marketing’s strategic planning is aligned with enterprise objectives. About the author: Sabine Vollmer (Sabine.Vollmer@ aicpa-cima.com) is a CGMA Magazine senior editor. Copyright © 2011-2015 American Institute of CPAs. Copyright © 2011-2015 Chartered Institute of Management Accountants. All rights reserved.

If you have a specialized interest, you can build on the value you offer clients by adding an AICPA advisory service credential: Personal Financial Specialist (PFS ), Accredited in Business Valuation (ABV ), Certified in Financial Forensics (CFF ) or Certified Information Technology Professional (CITP ). These credentials were developed for the profession by the profession. They set you apart, make a statement and get you noticed. And, they can seriously boost your career. ®

®

®

© 2015 American Institute of CPAs. All rights reserved. 18432A-326

WHERE CAN AN AICPA C REDENTIAL TAKE YOUR CAREER NEXT?

Explore your opportunities at aicpa.org/aicpacredentials. 18432-326_YCPA Credential Campaign SS Half Page_8.5X5.5.indd 1

9/16/15 5:51 PM

kycpa.org

9


kycpa.org 1735 Alliant Avenue, Louisville Ky. 40299 502.266.5272

Your best decisions

start

here.

BUSINESS & INDUSTRY

Member Benefits • • • • • • • • •

Industry-centric conferences Discounted CPE Professional networking Daily economic updates Volunteer opportunities Leadership opportunities Onsite CPE opportunities Cybersecurity analysis The Kentucky CPA Journal

• Resume building & career growth • Legislative advocacy • Promotion and protection of the CPA profession • Talent pipeline development • Chartered Global Management Accountant (CGMA) Designation • Financial professionals/Controllers Roundtable Join KyCPA at kycpa.org


The Kentucky CPA Journal / Issue 4 2017

Ethics

Ethical decisions: How should we do it?

R ecognize the problem Analyze all the facts I dentify possible solutions S elect the best course of action E xecute the resolution plan O

n Monday, Carla was reflecting on how things were going for her. It was January 1, the start of a new year. Carla was living the good life. Six months ago, she relocated to take a new job that was progressing her toward her dream of becoming a leading financial executive at a major company in the retail industry. Things were going well and she had her sights on another promotion she believed was coming soon. Carla enjoyed her holiday and was gearing up for what she thought would be a great year. On Tuesday, Carla had a productive morning, but after lunch things changed. The controller of the company came to Carla and asked her to do something that would later prove to be a lifealtering action for her and others. Carla was asked to record the date of a significant transaction closing on December 31, although it was not finalized until earlier that morning on January 2. Without realizing it, Carla was pulled into an unethical situation. Initially, Carla did what she was asked because of the way the situation was positioned. It seemed like a reasonable request. However, Carla later realized her actions violated regulatory rules. The situation Carla experienced is not uncommon in business today. Unfortunately, employees at all levels within an organization

can be pulled into questionable activities, many times without realizing it. To give individuals an understanding of how to assess and make better ethical decisions, I developed the RAISE Model for Ethical Decision-MakingŠ. The RAISE ModelŠ is a simple, five-step process an individual can use when making decisions or facing ethical dilemmas. The model is as follows: Recognize the problem. Many ethical situations become greater challenges because individuals do not recognize the problem early enough. Ethical issues cannot be defined in one box. Therefore, leaders must lean on their past experiences and intuition to first recognize and define the problem. To best recognize ethical issues, individuals must be attentive and aware of their environments, ask questions about things that seem unusual and use an appropriate amount of professional skepticism. Remember, the first step to resolving an ethical situation is recognizing one exists. Analyze all the facts. Often, decisions or conclusions are made without analyzing all the available facts. The decision-maker must investigate the situation to uncover and analyze all the information about the situation, so he/she is armed with what is needed to make the best decision.

Continued on p. 12

kycpa.org

11


The Kentucky CPA Journal / Issue 4 2017

Ethics

Ethical decisions continued Asking questions, reviewing data and making the effort to assess the entire situation is critical in this step. Identify possible solutions. Most ethical decisions have multiple possible solutions. Individuals must identify, assess and consider all potential options to resolve the situation. Too often people only see one right and one wrong way to address an ethical dilemma. However, this is usually not the case. The best decisions come when all possible options are identified and “on the table.� Before deciding on what action to take, make a list of potential solutions, their impact on the organization and the individuals involved. This step is crucial. Select the best course of action. After listing the potential solutions, wise decision-makers will consider all the options and select the best course of action. Making the best selection involves a thought process that encourages professionals to consider the implications associated with each option. Many times, leaders will seek input from other team members, mentors or independent parties before selecting the best course. In this step, it is appropriate to consider what superiors, respected family members and the public would think of the decision.

12

Execute the resolution plan. Once the decision is made, executing the plan to act on the decision is critical. In most cases, the decision will not be popular to all parties. For this reason, the decision-maker must have the ethical courage to execute the plan. This step can be the most difficult, depending on the stakes of the decision. If the professional believes they are doing what is right, they must keep in mind that the decision is the best overall option and use that belief to execute. Carla did not have a model as a guide for ethical decisionmaking. As a result, she made a

decision that she later regretted. Had Carla defined boundaries that she would not cross and used a process like the RAISE ModelŠ, she would have made a better choice. We will all face ethical decisions and ethical dilemmas in our careers. I encourage you to define your limits and adopt a process that will help you make the best ethical decisions in the future. About the author: Alfonzo Alexander is president of the NASBA Center for the Public Trust. He can be reached at aalexander@nasba.org.

Go to kycpa.org to register for Ethics CPE.


The Kentucky CPA Journal / Issue 4 2017

Tax in the Bluegrass

Updated Kentucky tax regulations on the horizon By Mark A. Loyd, Esq., CPA Taxpayers and their advisors need reliable guidance that helps flesh out Kentucky tax laws. The Kentucky Department of Revenue has administered administrative tax regulations that do just that for sales taxes, income taxes, property taxes and other taxes. While there are Kentucky tax regulations that provide guidance, there is a lot of potential for regulations to be even more helpful. Better regulations mean clearer tax laws, and this benefits the entire system, taxpayers, advisers and administrators. More and improved tax regulations can be expected in the near future.

Kentucky tax regulations: Where do I find these regulations?

Kentucky tax regulations promulgated by the department may be found in Title 103 of the Kentucky Administrative Regulations. Each chapter represents major subject matter, e.g., general administration, inheritance tax, ad valorem tax, income tax, sales and use tax. So, 103 KAR 16:060 refers to the department’s regulation in Chapter 16 (Income Tax; Corporation) specifically concerning “Income classification; business and nonbusiness.” The department’s regulations can be found on the website of the Legislative Research Commission (LRC), www.lrc.ky.gov. To access it, go to the “Kentucky Law” drop down menu and click “Kentucky Administrative Regulations.” You can then click on the “Listed by Title” link and then select Title 103.1* Commercial tax services like RIA and CCH are also places where they can be found.

Regulation subject matter: These don’t seem to cover everything.

Kentucky tax regulations appear to cover much of the subject matter of corporation income tax, including: business and nonbusiness income; property, payroll and sales apportionment factors; apportionment and allocation for specific industry; nexus; and many other subject matter areas. Some other tax areas, however, have comparatively few regulations. For example, there is only one regulation concerning estate and trust income tax, 103 KAR 19:010. Another example is ad valorem tax, which has only about 13. Of the areas of tax, sales and use tax have the most regulations. They address many circumstances such as certain service and professional occupations, miscellaneous retailer operations and some general exemptions. They do not cover every situation. Most notably there is not a regulation that addresses manufacturing supplies and industrial tools which is the subject of many disputes between taxpayers and the department.

Administrative regulation process: If not enough, just issue more!

The department cannot just issue tax regulations all by itself. There is a process dictated by statute in Kentucky Revised Statutes Chapter 13A to create or amend new regulations. The ordinary process for creating a regulation begins with the department filing the proposed regulation which is followed by its publication in the Administrative Register. It includes information about the date, time and place of the public hearing on the regulation and the deadline for the public to submit comments. After the public hearing is held and written comments are received, the department must file a statement of consideration. The Administrative Regulation Review Subcommittee (ARRS) may determine its status and report its findings to the Legislative Research Commission. If approved, it becomes

* Or, just go to http://www.lrc.ky.gov/kar/TITLE103.HTM. Continued on p. 14 kycpa.org

13


The Kentucky CPA Journal / Issue 4 2017

Tax in the Bluegrass

Tax regulations continued

effective. The process is time consuming and this explains why there are not more regulations.

Stale regulations: Should tax regulations be updated?

In the mid-2000s, the department updated many income tax regulations, including those pertaining to business and nonbusiness income, apportionment and nexus. In contrast, the individual income tax regulation concerning residence, 103 KAR 17:010, has not been updated since 1983. The trust income tax regulation, 103 KAR 19:010, has not been updated since 1975. Of course, a regulation may have been in place for less than a year and in need of an update when a tax statute is amended. Over the years, Kentucky’s tax laws have evolved. Clearly, Kentucky tax laws have likely evolved in some form or fashion since certain regulations were put in place or were last amended – 10, 30 or 40 years ago. It should be noted that the department has been working with the Kentucky Society of CPA’s Tax Committee to identify tax regulations most in need of updates.

Outdated regulations: Is there no expiration date? With some regulations that have been on the books for 40 plus years, it would seem that

14

they never expire. That used to be the case, but not anymore. In 2017, House Bill 50 changed that. According to the department, “House Bill 50 … requires that an ordinary administrative regulation will expire seven years after its last effective date. An administrative regulation that has a last effective date prior to July 1, 2012 shall expire on July 1, 2019.” Kentucky Dept. of Revenue, Tax Alert (May 2017). What this means is that many tax regulations will expire in 2019. Fortunately, “The bill provides a process for Executive Branch agencies to certify to the legislature the reasons for not letting a regulation expire.” The department “will evaluate its existing regulations to determine how many we will certify to the legislature and keep in existence.” As the department has recognized, regulatory guidance is important to taxpayers and their advisers. So, prudence dictates that tax regulations should not only be reviewed as to continuing relevance but should also be updated to make them even more useful.

Improving regulations: Add examples.

One way that the usefulness of tax regulations may be improved is by providing examples. There was a period of time when examples could not be used in tax regulations because they were often considered to

be demonstrative, non-exclusive lists. However, this changed in 2010, when KRS 131.130(1) was amended to allow the use of examples “[t]o assist taxpayers in understanding and interpreting the tax laws…includ[ing] demonstrative, non-exclusive lists of items….” KRS 131.130(1). Given the 2010 statutory authorization to use examples, when it evaluates its existing regulations, the department should consider amending certain regulations to include examples.

“Well, I hate your uptight, regulationspouting, Boy Scout horses--t.” —Nick Pulovski, The Rookie (1990).

Unlike some fields in which regulations are hated, tax is an area in which taxpayers and their advisers value them. In the next couple of years or so, it can be anticipated that tax guidance in the form of regulations should be more readily available. About the author: Mark A. Loyd, Esq., CPA, is a member of Bingham Greenebaum Doll in Louisville and chairs its tax and finance practice group. He chairs the Society’s Editorial Board and Tax Committee. He can be reached at MLoyd@ bgdlegal.com; 502.587.3552.


The Kentucky CPA Journal / Issue 4 2017

Tax in the Bluegrass

Kentucky DOR forms update A

The DOR sought to eliminate unclear and ambiguous language from the forms and instructions in an effort to better communicate with taxpayers in “first person active” as opposed to “third person passive.” The result should be forms and other documents that are easier to understand and use.

General updates

Declaration of representative: Form 20A100

By J. Todd Renner, CPA, CGMA fter tax season ends, the Kentucky Department of Revenue (DOR) quickly transitions into “forms update” season. Modifications and consolidations of forms have resulted in a reduction of the number of Kentucky business tax forms by about one-third. All Kentucky tax forms and instructions now have a new look and feel to make them more user-friendly. The form numbers most familiar to preparers and taxpayers were used in lieu of any internal DOR numbering. Also, the paid preparer signature block was updated to enable preparers to provide information that will facilitate better communication. Further, quick references to filing information, such as addresses and payment instructions appear below the signature section.

The DOR historically has accepted IRS Form 2848 or a power of attorney prepared by a lawyer and, for most cases, will continue that practice. However, the DOR accepts the new KY Form 20A100 “Declaration of Representative” as well. The form will be required for representatives of taxpayers involved with protest proceedings and may be requested by other DOR offices. Like IRS Form 2848, KY Form 20A100 authorizes representation for various tax types and periods.

Continued on p. 16

Kentucky State Tax Conference Nov. 30 | 8 CPE hours Holiday Inn Hurstbourne, Louisville The latest on state tax reform State Budget John Chilton, CPA, and national experts What’s new at the Kentucky Department of Revenue? Mark Loyd, JD, CPA, Bingham Greenebaum Doll, Louisville Commissioner Dan Bork, CPA, and other DOR representatives, Frankfort Local tax update Stephen Lukinovich, CPA, MCM CPAs and Advisors, Jeffersonville, Ind. Local tax administrators from across Kentucky, including Angela Dunn, Louisville, Rusty Cook, CPA, Lexington, and Kim Krugel, CPA, Boone Co. (invited)

Updates from our neighboring states Chris Futscher, JD, Ernst & Young, Cincinnati, Ohio David Gray, CPA, Ernst & Young, Indianapolis, Ind. Kris Hoffman, CPA, Carr Riggs & Ingram Nashville, Tenn. Kentucky litigation and tax case update Erica Horn, JD, CPA, Dean Dorton, Lexington State tax implications of mergers and acquisitions Michael Reynolds, JD, CPA, Kinkead & Stilz, Lexington Melissa Mattox, CPA, Kinkead & Stilz, Lexington Early Bird Fee: Register by Nov. 16 KyCPA member: $324 Nonmember: $424

Register at kycpa.org.

kycpa.org

15


The Kentucky CPA Journal / Issue 4 2017

Tax in the Bluegrass

Kentucky DOR forms continued

Individual income tax form changes

Schedule KW-2 – In order to limit the number of pages filed with paper returns and to allow taxpayers to retain original wage statements for their own records, the DOR created Schedule KW-2. Schedule KW-2 is to be used in place of submitting Forms W-2, 1099 and W-2G for paper-filed returns. Form 740-X – Form 740 now includes a checkbox to indicate that it is an amended individual income tax return. Amended Form 740 must be paper-filed and include IRS Form 1040-X with any supporting schedules. Form 740-X is still required for tax years prior to 2017.

Business form changes

LLET – In the past, the DOR required the attachment of Schedule LLET to Forms 720, 720S, 765, and 725. Schedule LLET has been eliminated beginning with tax year 2017. The information collected and calculations performed on that schedule are now an integral part of each major tax form and are incorporated through Schedule L. A clear warning reminds taxpayers to enter $175 if the gross receipts and gross profits calculations do not apply.

16

Schedules LLET-C, LLET(K), and LLET(K)-C have also been eliminated. The new Schedule L-C allows for calculations of LLET items from other passthrough entities. Schedules K and K-1 – Forms 720S, 765 and 765-GP have been updated for clearer passthrough of LLET items to owners. Schedule A apportionment information is also reported in a separate section and then reported on page 2 of Schedule A by owners. Form 725-EZ – To simplify filing for single-member limited liability companies (SMLLCs) that only owe $175, the DOR created Form 725-EZ. Form 725EZ has six qualifying questions and a six-line calculation. Along with Form 725, we expect most software vendors to support e-filing of this form for 2017. DOR has eliminated Schedule CP for reporting multiple SMLLCs. SMLLCs must file if the sole member is an individual, trust, estate or general partnership. Other SMLLCs are disregarded for federal income tax purposes and their results are reported on Forms 720, 720S, 765 or 725. Other Schedules Eliminated – Forms and schedules eliminated by the DOR will be posted on its website and will include references to the new schedules.

• Form 740NP-WH-P is discontinued; calculations are now worksheets in the instructions for Form 740NPWH. • Schedules A-C and A-N have been discontinued; the pertinent portions have been added to Schedule A. • Schedules CR-C and KCR-C have been discontinued; the pertinent portions have been added to Schedules CR and KCR. • Schedules DS-R and NOL-CF were eliminated. Tax Credit Packages – The DOR has combined almost all the forms and schedules associated with incentive tax credits offered by the Commonwealth into packages with complete instructions. For example, newly created Package KBI (for taxpayers eligible for the Kentucky Business Investment Program Tax Credit) combines Schedules KBI, KBI-SP and KBI-T. About the author: J. Todd Renner, CPA, CGMA, is the director of the Division of Corporation Tax at the Kentucky Department of Revenue. He can be reached at todd.renner@ ky.gov.


Our proven strategies will expose your practice to the greatest number of qualified buyers, provide you with expert representation, and maximize your value!

We realize

NOBODY can fill your shoes...

...BUT WITH OUR HELP, you will find someone who comes close. We partner with you to find the right

buyer and make sure they are the best fit for your practice. We also provide answers to the complex questions of valuation, marketing, and know how to ensure you receive the best price for your practice. We are the largest facilitator in North America for selling accounting and tax practices for a reason.

Call or e-mail Mark Hause on a confidential no obligation basis or visit APS.net today to get started.

877-345-7722

DELIVERING RESULTS - ONE PRACTICE AT A TIME

e-mail: markhause@contactaps.com Fax: 541-465-9410


The Kentucky CPA Journal / Issue 4 2017

Legislative

KyCPA supports CPA firm mobility A

t its meeting on August 23, the KyCPA Board of Directors unanimously voted to support the issue of CPA firm mobility, allowing CPA firms without a physical presence in Kentucky to perform attest services and issue reports in the state without registration or paying additional fees. Every state except Hawaii has passed an individual CPA mobility law. “Non-attest” services include items such as tax advice, financial planning and consulting services. Now, with the backing of the National Association of State Boards of Accountancy (NASBA) and the American Institute of CPAs (AICPA), states are moving to extend mobility to CPA firms that provide these services. Under current state

law, attest services must be performed by a CPA operating within a state registered CPA firm. These services include audits, reviews, compilations, engagements performed under the Statements on Standards for Attestation Engagements (SSAEs) and engagements required by the Public Company Accounting Oversight Board (PCAOB). KyCPA supports a CPA firm mobility law in Kentucky, joining 22 other states including Illinois, Indiana, Missouri, Ohio, Tennessee and Virginia. Such a law would allow CPA firms headquartered outside Kentucky to operate in the Commonwealth unencumbered, so long as they meet Kentucky peer review and non-CPA ownership requirements.

States with Firm Mobility

WA

OR

CA

NY

WI

SD

WY

AK

NH

MN

ID

NV

Thank You UT

IL

CO

KS

PA IN

MO

WV KY

TX

RI NJ

DE VA

MD NC

DC

SC

AR MS

GU

CT

OH

TN OK

NM

MA

MI

IA

NE

AZ

CNMI

VT

ME

ND

MT

AL

GA

LA

HI

FL PR

USVI

States that currently have firm mobility States with active legislation to adopt firm mobility States that do not have firm mobility

18

© 2016 American Institute of CPAs. All rights reserved. Updated 8.28.17


The Kentucky CPA Journal / Issue 4 2017

“With Illinois recently passing firm mobility, we are becoming more isolated among our surrounding states on this issue,” said KyCPA Government Affairs Director Charles George. “Thus far, firm mobility has operated smoothly around the country.

Recognizing our increasingly global economy, it’s time that Kentucky joins our surrounding states in passing this law.” CPA firms would follow the same model for individual CPA mobility, operating under “no notice, no fee, and no escape.”

Legislative

All the same strong regulatory protections would remain in place. By removing these barriers, CPA firms around the country are able to more readily serve individuals and businesses in Kentucky.

Inside the pension debate

This fall, Gov. Matt Bevin called a special session of the state legislature to find a solution to address the state’s underfunded public pension fund. And according to a recently released government study, the situation is dire, as the numbers in the below infographic clearly illustrate.

kycpa.org

19


The Kentucky CPA Journal / Issue 4 2017

Bourbonomics:

An American story By Colleen Thomas

Cover


The Kentucky CPA Journal / Issue 4 2017

C

ruising down the winding ribbon of US-150 towards Bardstown, Kentucky through the rolling hills of farmland and misty pastures dotted with hay bales, a serenity descends on the mind. Just as the car crests a hill, a group of rickhouses comes into view silent on the hill top, their grand stature was dwarfed by the infinite landscape of green and gold. Inside these massive structures, wooden ricks cradle thousands of Kentucky bourbon barrels aging to the rhythms of time and nature. It’s a scene from literature, almost purposely composed to arrest the reader and influence

Cover

emotion. Romantic, picturesque narratives are not new to the marketers of fine American whiskey. Tradition and heritage are the hallmarks of bourbon brand stories across Kentucky. Pastoral Americana aside, the elemental makeup of the spirit itself is enough to fuel the fire of Bourbon’s passionate and ever-growing fan base. Much like a novel, every bottle of Kentucky bourbon depends on years of careful character development. The recipe of cereal grains and the barrel in which the juice ages are arguably the main characters. However, it is the cast of supporting players that

Continued on p. 22

kycpa.org

21


The Kentucky CPA Journal / Issue 4 2017

Cover

Bourbonomics continued

enhance the rich depth of flavor and add complexity to the product. Kentucky bourbon is a prodigy of natural elements influenced by certain controllable variables during its manufacturing. Bourbon, by law, must be made from at least 51 percent corn, though most widely known brands are generally between 65 and 78 percent. The rest of the mashbill is made

22

up of the flavoring grain, most commonly wheat or rye, and malted barley, added more for its enzymatic properties than for its toasty, chocolaty flavor. Bourbon cannot be distilled higher than 160 proof, and water must be added so that the distillate is 125 proof or lower when it is put in the barrel. The law states that bourbon must be aged in a charred, new oak container, barrels being the container of

choice for distillers. Nothing can be added to the product other than water or more Bourbon. No coloring or flavoring agents and certainly no other spirit. With these standards in place, perhaps it would seem that all Bourbons would be quite similar in flavor and structure. However, there are variables throughout the manufacturing process that are adjusted to create the desired flavor profile. In addition to


The Kentucky CPA Journal / Issue 4 2017

the ratio of grains used in the recipe, the environment of the fermentation process is a huge influence on flavor. Yeast are complex organisms that consume sugars and produce alcohol. In fact, yeast produce many compounds, each with its own unique flavor. If the fermentation is too hot or the yeast are stressed by the presence of bacteria (yeast and bacteria are long-established adversaries), they will produce undesirable compounds that will show up in the flavor of the final product. The success of fermentations hinges on the ability to maintain happy, hungry yeast. The proof at which the product enters the barrel is another variable that can be changed to manipulate flavor. Proof is determined by the ratio of alcohol to water in the distillate. The more alcohol present, the higher the proof. Alcohol and water molecules interact differently with the individual compounds in the wood. A distillate put into the barrel at 125 proof will have a different flavor profile than one put in at 110, even if the grain recipes are the same. While time in the barrel will have the biggest impact on the flavor and structure of the final product, the aging process, too, has a considerable amount of variables that can be altered to obtain the desired effect. The species of oak, the method used season the wood, the amount of toasting, if any, and the depth

kycpa.org

of char all determine the types of changes that occur inside the barrel. The stoic display of a Kentucky bourbon barrel in repose belies the bustling activity inside. Heat causes the bourbon to expand into the wood. Water and alcohol molecules escape through evaporation. Cold causes retraction and sucks oxygen into the barrel. The distillate is pulling flavors from the wood while the char layer removes undesirable notes from the product. Oxygen replaces evaporated liquid and causes chemical reactions in the bourbon. This evolution of the product continues for as long as the bourbon is in the barrel. Yet with all of the controllable variables influencing the final product, so much of the outcome is left up to nature itself. Each barrel of bourbon is unique;

Cover

regardless of the meticulous process and attention to detail, no two will taste the same. This is the elemental mystery that captivates the audience and cultivates most ardent fans. This is the home-grown product that churns a multi-billion dollar economic engine for Kentucky. America’s original and only native spirit, Bourbon Whiskey was officially named a distinctive product of the United States by Congressional Resolution in 1964. Although bourbon can be made anywhere in the country, Kentucky produces 95 percent of the world’s supply. The American distilling industry is as old as the country itself, and Kentucky’s distinguished bourbon heritage is woven into the very fabric of the state.

Continued on p. 24

23


The Kentucky CPA Journal / Issue 4 2017

Cover

Bourbonomics continued

From the abundance of corn indigenous to the region to the limestone-filtered water, Kentucky is uniquely situated to be the birthplace of bourbon. In the late 1700s, Kentucky was the wild west, the last American frontier. While in the Northeast, industrial distilleries enjoyed the benefits of major shipping ports and access to cities packed with consumers. The state was virtually land-locked with mountains to the east, the Ohio River to the north and Mississippi River to the West. Then, in 1803, President Thomas Jefferson doubled the size of the country with the Louisiana Purchase, claiming the Mississippi for the U.S. A steady supply of Kentucky whiskey was soon making its way down one of America’s newest commercial waterways to New Orleans. As Kentucky bourbon’s availability increased, so did its popularity.

24

Today the demand for bourbon is higher than ever. Distilling is an $8.5 billion industry for Kentucky, according to a biennial study conducted by the University of Louisville’s Urban Studies Institute in conjunction with the non-profit Kentucky Distillers’ Association. The industry shows no signs of slowing down, as the signature spirit increased its economic output by $1 billion in the last two years alone and added another 2,000 distillery-related jobs to its workforce. “The powerful growth of Kentucky’s bourbon industry is a testament to our proud history of innovation, engineering and manufacturing,” says Kentucky Gov. Matt Bevin. “It is a genuine, home grown, only-in-Kentucky success story.” Bevin has been quite vocal about his agenda to cut bureaucratic red-tape to

open the door for more economic opportunity and job growth across all Kentucky industries, including distilling. In 2016, he signed into law landmark tourism reforms that, most notably, loosened the restrictions on alcohol sales at distilleries. Warehouses across the Commonwealth currently hold more than 6.8 million barrels of bourbon, the highest inventory in 44 years. With 1.5 barrels for every person living in the Bluegrass, the state’s signature industry today provides Kentuckians with as many as 17,500 jobs with over $800 million in payroll, and generates more than $825 million in local, state and federal tax revenue. The growth has had a tremendous impact on the state’s agriculture industry as well, with distillers’ local corn purchases up 65 percent over the last two years. Kentucky manufacturers of distilling and warehousing equipment also are racing to keep up with expanding facilities spurred by the growing global thirst for Kentucky bourbon. “The remarkable growth of Kentucky’s signature spirit has had an extraordinary ripple effect for adjacent industries,” Kentucky Distillers’ Association President Eric Gregory remarks. “With $1.2 billion in capital projects just finished or underway, the industry is utilizing local farmers, researchers, manufacturers, architects, builders, engineers and laborers. Kentucky bourbon


The Kentucky CPA Journal / Issue 4 2017

is new fuel for the Bluegrass economy.” Distilling companies are not only investing in production expansion. The bourbon boom is revolutionizing Kentucky tourism. Distilleries are establishing state-of-the art visitor centers and innovative programs to ensure their guests have one-of-a-kind, meaningful experiences. “It’s incredible,” says Adam Johnson, Director of the Kentucky bourbon Trail® tour which guides Bourbon lovers to distillery destinations across the state. “People don’t just want what’s in the bottle. They want to experience Kentucky’s bourbon culture.” This “culture” seems to pull from Kentucky’s bourbon heritage, family roots, a tradition of working hard and doing things right and some good oldfashioned Southern hospitality. Visitors made more than one million stops to Kentucky Bourbon Trail and Kentucky Bourbon Trail Craft Tour® distilleries in 2016, breaking the milestone mark for the first time since the KDA founded the popular tourist attraction in 1999. The booming tour has increased attendance by 300 percent in the last 10 years. In an article written for Whisky Magazine, Fred Minnick, author of Bourbon: The Rise, Fall & Rebirth of An American Whiskey, wrote that bourbon distillery visitor centers have “become their own signature to their

kycpa.org

respective brands and offer so much more than a few choice gifts to take home. Visitor centers are becoming so important that the visitor center management position has quickly become one of the more coveted positions in all of bourbon. If you think about it, the visitor centers are the

definitive gateway into bourbon.” Bourbon tourism has grown so significantly that cities like Louisville and small towns in distilling communities like Bardstown are using the boom to remake themselves as brand destinations, taking a page from Napa Valley’s remarkable success with wine tourism. Restaurants, retail and hotels are moving into these locations depending on and reaping the benefits of bourbon’s success, and nearly all

Cover

of Kentucky’s major universities have certificate or degree programs with concentrations in the production and hospitality business of bourbon. At a recent press conference, Louisville Mayor Greg Fischer told the audience, “We’ve seen firsthand how Bourbonism can boost economic development and revolutionize tourism. The combination of Louisville’s unique distillery attractions and growing restaurant scene is drawing national and international attention – and visitors.” As the economic impact of Kentucky’s signature distilling industry continues to surge across the Commonwealth, bourbon manufacturers remain committed to improving their infrastructure to meet the evergrowing demand here and abroad. There seems to be no end to the success in sight. Bourbon is as bold and distinct as America itself. It has all the character and intrigue of a bestselling novel, and its hospitality is as warm and inviting as an evening with dear friends. For now, bourbon is here to stay, and that is essential for a prosperous Kentucky. About the author: Colleen Thomas is the director of member and public affairs for the Kentucky Distillers Association. She can be reached at colleen@ kybourbon.com.

25


The Kentucky CPA Journal / Issue 4 2017

Technology

New management strategies to protect your business against cyberthreats B

usinesses today have an increasingly high risk of being attacked by cybercriminals. Experts predict that 1 in 5 companies will be attacked in the next 12 months. Of these businesses, 60 percent will not survive six months after the data breach. Cybercriminals are organized and sophisticated groups of people making a living extorting money and information. In addition to targeting high profile organizations, various attack campaigns are also continuously directed at medium size business organizations (SMB), which tend to be less prepared. Because of this, SMB’s are more appealing targets and constitute a much higher percentage of data breaches; they just don’t get the headlines. Up to 71 percent of breaches occur in businesses with fewer than 100 staff members. The potential impact from a cyberattack or data breach can be significant for any SMB organization, ranging from: • • • •

Financial damage Business process damage Credibility damage Legal implications and costs associated with various regulatory compliance requirements

The Ponemon institute, a leading cybersecurity research group sponsored by IBM, states that the average cost of a breach is $214 per record. A small business breach typically costs $32,000, according to the National Small Business Association. In addition to the high cost of a breach, there are a host of regulatory challenges a company must deal with including HIPAA, GLBA, PCI, and the IRS Tax Guidelines. Regulatory fines can reach $1.5 million and in some cases, include jail time! Tax refund fraud is also growing at an exponential rate. The cybercriminals are becoming more creative and sophisticated with tax refund fraud campaigns as well. Only a minimum amount of data is required to produce a fraudulent claim and the IRS is getting tough on those filing fraudulent claims, as well as the tax preparers who are not protecting personal information.

26

Traditional IT security measures no longer adequate

Traditional approaches for safeguarding confidential information are no longer adequate for protecting against cyber criminals focused on stealing your data. Today’s attacks can infiltrate your business from many directions and include social engineering, which has become quite sophisticated. Firewalls can’t block all inbound threats and antivirus software won’t block ransomware software, which is one example of an attack campaign using new software tools combined with social engineering techniques. Although IT security has traditionally been delegated to the technical IT staff with little executive management oversight or involvement, this approach is no longer considered adequate by cyber security professionals to provide an effective cyber risk management process.

New management strategies are required Whether your business is subject to regulatory compliance guidelines and penalties, or just has sensitive data you don’t want for sale on the dark web, data security has become a management issue; not just an IT issue. A more holistic management strategy is required in order to develop an appropriate level of cybersecurity preparedness. Since evolving threats target staff members from various directions, it is important to build a formal risk management culture across all business units. This effort requires top down management involvement to develop an effective risk management program consisting of appropriate administrative, physical and technical controls. Guidelines for compliance with FTC’s GLBA safeguards, as well as HIPAA, include establishing an effective cyber risk management program based on the following core components:


The Kentucky CPA Journal / Issue 4 2017

Technology

Cyberthreats continued

 Conducting an annual risk analysis to identify data resources to be protected and assess the status of current controls  Develop an annual Security Risk Management Work Plan  Assigned responsibility for risk management functions  Develop a written information security policy  Implement security awareness training  Improve your vendor oversight management program Note - An annual risk analysis is the cornerstone of an effective risk management program, based on established industry (NIST) guidelines.

What does cyber preparedness involve?

The risk analysis is not the only thing needed for a cyber prepared organization. You need a program to continually revisit your risk analysis and mitigation plan to reduce your risks and monitor for new vulnerabilities. This needs to be monitored by a governance program led by executive management.

Common cyber issues companies face

Common cyber issue 1 – Assessing risk • Businesses underestimate their risks • Needed – Fact based evidence of risks through a security risk assessment

Common cyber issue 2 – Training • Employees lack security training • There are too many potential traps where employees can make mistakes. • Needed – Comprehensive security and awareness training Common cyber issue 3 – Policies • Businesses lack formal security policies • Employees are not aware of current policies • Needed – Formal information security policies communicated to all employees Common cyber issue 4 – Businesses are not prepared for a breach • Businesses do not have plans in place to react to security incidents or data breaches

Continued on p. 28

kycpa.org

27


The Kentucky CPA Journal / Issue 4 2017

Technology

Cyberthreats continued • There are no resources to respond to a breach • Needed – Breach response services Common cyber issue 5 – Vendor management • Organizations are susceptible to their vendors cyber defenses • Businesses do not have resources or expertise to monitor their vendors • Needed – Vendor managed services

Summary recap

Many businesses are not asking the correct questions, or taking cyber threats seriously enough. Cyberattacks are damaging businesses. You must make sure your business is prepared. Developing new management strategies is an

essential step to protect your business assets and this requires management’s attention. A risk analysis creates a risk profile that provides direction to developing an annual security risk management plan, and directswhich investments in technology measures are warranted. Cyber risk management must be an ongoing process. Implementing new management strategies to protect your business from cyberthreats does not happen overnight and requires change. The most important thing you can do is to start the process and get proper input and assistance as needed. Ignoring the challenge of security and compliance only makes matters worse. Seeking an outside consultant for help with cybersecurity and compliance is

recommended if you do not have such experience on staff. If you have any questions about how to assess and prepare for the risks facing your company, visit our website at www.Cyber-RiskMgt.com, or feel free to contact the authors below. About the authors: Jason Guyler is the business development partner at CyberRisk Management. Guyler may be reached at JGuyler@CyberRiskMgt.com or 513.519.3533 David Reedy is the managing partner at CyberRisk Management. Reedy may be reached at Dreedy@Cyber-RiskMgt.com or 859.608.9878.

K2 Enterprises presents:

Kentucky Technology Conference Dec. 14-15 16 CPE hours

Holiday Inn Hurstbourne, Louisville

See page 37 for details. Register at kycpa.org 28


The Kentucky CPA Journal / Issue 4 2017

CPE

CPE Calendar Date

Code

Title

City

CPE CPE Credit Type

Member

10/26

BFTU1026

Best Federal Tax Update

Ashland

8

Tax

274

10/26

CRAU1026

Compilation & Review Update

Lexington 8

A&A

274

10/26

FCC1026

Agriculture, Food and Commodities Conference X

Louisville

8

CPE

324

10/27

BFTU1027

Best Federal Tax Update Florence

Florence

8

Tax

274

10/30

4CSP1030

A+ College Savings Planning: Maximizing Resources & Tax Benefits AM

Louisville

4

Tax

159

10/30

4PMI1030

Select Estate & Life Planning Issues for the Middle-Income Client PM

Louisville

4

Tax

159

10/31

4EXI1031

IRS Tax Examinations & Hot Issues AM

Louisville

4

Tax

159

10/31

4SCA1031

S Corporation Taxation: Advanced Issues PM

Louisville

4

Tax

159

10/31

NSSA1031

National Social Security Advisor Course

Louisville

8

CPE

See kycpa. org

11/1

ELC111

CPAs and Seniors Conference X

Louisville

8

CPE

324

11/2

FTUI112

Federal Tax Update Individuals X

Louisville

8

Tax

289

11/2-3

FTUIB112

Federal Tax Update Individuals and Business X

Louisville

8

Tax

529

11/3

FTUB113

Federal Tax Update Business X

Louisville

8

Tax

289

11/6

GAU116

Governmental Accounting & Auditing Update X

Louisville

8

YB

289

11/6

K1SL116

K-1 Boot Camp for S Corporations & LLCs

Louisville

8

Tax

289

11/7

SATD117

Single Audit Testing & Documentation

Louisville

8

YB

289

11/7

TPGS117

2017 Annual Tax-Planning Guide for S Corporation, Partnerships, & LLCs

Louisville

8

Tax

289

11/8

CCAF118

Common Causes of Audit Failures (How to Avoid Them)

Louisville

8

A&A

289

11/9

REC119

Commercial Real Estate Conference X

Louisville

8

CPE

324

11/10

WLC1110

Women's Leadership Conference

Louisville

TBD

CPE

199

11/13

FSNP1113

Accounting & Reporting for Not-for-Profit Organizations (A)

Lexington 8

YB

274

11/13

IEFP1113

Best Income Tax, Estate Tax, & Financial-Planning Ideas of 2017 X

Louisville

8

Tax

289

11/14

GARU1114

Governmental Accounting & Reporting Advisor (A)

Louisville

8

YB

289

11/14

IRAB1114

IRA Boot Camp

Louisville

8

Tax

289

11/15

CORU1115

Annual Update & Practice Issues for Preparation, Compilation, & Review Engagements (A)

Louisville

8

A&A

289

11/15

RETC1115

Real Estate Tax Boot Camp

Louisville

8

Tax

289

11/16

CCAI1116

Construction Contractors Advanced Issues (A)

Louisville

8

A&A

289

11/16

GSGC1116 Real Estate: The Many Complexities of GAAP, SSARS, & GAAS

Louisville

8

A&A

289

11/17

BANK1117

Audits of Banks & Other Financial Institutions (A)

Louisville

8

A&A

289

11/21

PEC1121

Ethics Update for CPAs

Lexington 2

Ethics

79

Compliance

X Live Webcast option

Early Fee

Continued on p. 30

kycpa.org

29


The Kentucky CPA Journal / Issue 4 2017

CPE

CPE Calendar continued Date

Code

Title

City

11/21

PIU1121

Professional Issues Update

Lexington 4

CPE

39

11/27

4DAT1127

Data Breaches & Other Cyber Frauds: A 21st Century Risk to Your Organization AM X

Louisville

4

CPE

159

11/27

4FSM1127

Fraud in Small-to-Medium-Sized Entities PM X

Louisville

4

A&A

159

11/27

AP411127

Advanced 1041 Boot Camp

Louisville

8

Tax

289

11/28

AUDA1128

Integrating Audit Data Analytics into the Audit Process (A)

Louisville

8

A&A

289

11/28

TABP1128

Getting the Tax Aspects of Business Planning Right from Formation to Termination

Louisville

8

Tax

289

11/29

PEC1129

Ethics Update for CPAs

Louisville

2

Ethics

79

11/29

PIU1129

Professional Issues Update

Louisville

4

CPE

39

11/3012/1

AAUW1130 Annual Accounting & Auditing Workshop (A)

Louisville

16

A&A

409

11/30

KSTC1130

Kentucky State Tax Conference

Louisville

8

Tax

324

12/4

4AMP124

Accounting Methods & Periods: Including Form 3115 AM

Louisville

4

Tax

159

12/4

4TLL124

Tax Consequences & Reporting Issues of LLCs, LLPs & Other Partnerships PM

Louisville

4

Tax

159

12/4

4AUAA124

Accounting & Auditing Update AM

Lexington 4

A&A

159

12/4

4COM124

Preparation, Compilation, & Review Engagements: Update & Review PM

Lexington 4

A&A

159

12/4

INUG124

Applying the Uniform Guidance in Your Single Audits (A) X

Louisville

8

YB

289

12/5

CYCT125

Cut Your Client’s Tax Bill: Individual Tax Planning Tips & Strategies (A)

Louisville

8

Tax

289

12/5

ICSM125

Internal Control Best Practices for Small & Medium-Sized Entities Louisville (A)

8

A&A

289

12/7-8

FTU2127

Vern Hoven 2-day Federal Tax Update

Louisville

16

Tax

529

12/11

4HCR1211

Health Care Reform Act: Critical Tax & Insurance Ramifications AM X

Louisville

4

Tax

159

12/11

4SSM1211

Social Security & Medicare: Maximizing Retirement Benefits PM X

Louisville

4

Tax

159

12/12

4CIA1212

Your A & A Migraine: 5 Critical Issues for 2017 AM X

Louisville

4

A&A

159

12/12

4DRF1212

Fraud Basics: Protecting the Company Till PM X

Louisville

4

A&A

159

12/12

RPTR1212

Reviewing Pass-Through Tax Returns: What Are You Missing? (A) Louisville

8

Tax

289

12/13

4FUR1213

Annual FASB Update & Review AM

Louisville

4

A&A

159

12/13

4GSM1213

Financial Statement Disclosures: A Guide for Small- & MediumSized Businesses PM

Louisville

4

A&A

159

12/14-15

KTC1214

Kentucky Technology Conference

Louisville

16

CPE

449

12/18

ITEB1218

Advanced Selected Issues for Trusts, Estates, & Their Beneficiaries

Louisville

8

Tax

289

12/18-19

BC21218

Boot Camps for Individuals and LLCs Partnerships and S Corps

Louisville

16

Tax

478

12/18

TPBC1218

Tax Prep Boot Camp-Individuals

Louisville

8

Tax

289

12/19

4CCD1219

Capitalized Costs & Depreciation: Key Issues & Answers AM X Louisville

4

Tax

159

12/19

4TAI1219

Tax Accounting for Inventories PM X

Louisville

4

Tax

159

30

CPE CPE Credit Type

Member

Early Fee


The Kentucky CPA Journal / Issue 4 2017

CPE

Date

Code

Title

City

CPE CPE Credit Type

Member

12/19

TFBC1219

Tax Forms Boot Camp: LLCs, Partnerships, & S Corporations

Louisville

8

Tax

289

12/20

ERTW1220

Effective & Efficient Senior-Level Review of Individual Tax Returns

Louisville

8

Tax

289

12/20

SCORP1220

S Corporations: Key Issues, Compliance & Tax Strategies (A)

Louisville

8

Tax

289

1/3-4/18

FTU213

Vern Hoven 2- day Federal Tax Update

Lexington 16

Tax

529

1/5/18

FTU115

Vern Hoven 1-day Federal Tax Update

Louisville

Tax

369

Register • • • •

Online: Visit our Web site at kycpa.org and register using your VISA, MasterCard or AMEX. By mail: Mail registration form in CPE Catalog with payment to the Kentucky Society of CPAs, 1735 Alliant Avenue, Louisville, KY 40299. By fax: Registrations may be faxed to the Society office at 502.261.9512. By phone: Call the Society at 800.292.1754 (in Kentucky), or 502.266.5272. You may register by phone and be invoiced

Save money •

Member discount: KyCPA members save $100 on most 8-hour programs; however, attendance at CPE programs is open to the public. You qualify for the member discount fee if you are a current KyCPA member, you are a member of another state CPA society or you are a non-CPA staff member.

8

Early Fee

Early bird discount: Register for at least two weeks in advance to receive a $50 discount on most 8and 16-hour conferences and seminars and a $25 discount on most 4-hour seminars.* Group discount: Save $25 per person when 4 or more from one organization register for the same 8-or 16-hour event. Please register and pay together.* AICPA discount: AICPA members are eligible for a $30 discount per 8 credit-hour day on most AICPAproduced seminars. These are marked (A) in the seminar title. Self-study packages: See our list of discounted online CPE packages at kycpa.org under promotions in the online CPE course catalog.

*Some programs excluded—see descriptions at kycpa.org for complete pricing information.

See kycpa.org>MyKyCPA>CPE for more information.

X Live Webcast option

kycpa.org

31


The Kentucky CPA Journal / Issue 4 2017

CPE

CPE Spotlight: TEN HUT! CPE Boot Camps provide training for accounting combat CPE Boot Camps will be held at the Gratzer Education Center in Louisville and each are 8 CPE hours.

Real Estate Tax Boot Camp Nov. 15 This course takes a “deep dive” into all things real estate tax related for the mid-level practitioner moving into this complex area. Deepen your understanding of the complex considerations and strategies that individuals must navigate in acquiring, holding, managing, constructing and disposing of real estate. You will leave the course able to navigate critical issues associated with the relevant returns and plan strategically for your company or clients.

K-1 Boot Camp for S Corporations & LLCs - Nov. 6 The schedule K-1 has become the universal report of tax information to business owners. This course will be valuable to those who prepare complicated federal individual income tax returns and for those who prepare the underlying Schedule K-1s for passthrough entities. As business owners increasingly utilize trusts in their estate planning, the course also includes an overview of issues associated with Form 1041 Schedule K-1.

IRA Boot Camp - Nov. 14 Many individuals will accumulate a significant amount of wealth through contributions or rollovers from qualified plans into IRAs. Although the rules in this area provide tremendous planning opportunities, they are very complex. This course will provide insight and practical planning suggestions into this important area of practice by utilizing forms, worksheets, examples, exercises, tables, case studies, and mini cases to enhance and enliven the learning experience and to hone retirement planning skills.

32

Tax Prep Boot Camp Individuals - Dec. 18 This hands-on class was designed specifically for KyCPA. It reviews forms and common tax preparation software for new hires and for those needing a refresher on individual taxes. Learn to avoid common mistakes in tax preparation, get research guidance and time-saving tips and walk away with helpful checklists. Register for both Boot Camps on Dec. 18 and 19 and save $50 on each—please call 502.266.5272 for this discount.

Tax Forms Boot Camp: LLCs, Partnerships, & S Corporations - Dec. 19 The course provides a comprehensive understanding of the preparation of both S corporation and partnership/LLC tax returns, along with the underlying laws, regulations, etc. It begins with basic understanding and progresses to complex issues. The boot camp allows staff to discover the connections and alterations of these widely held entity structures, while also providing a valued reference for the participant's future use. This course has been updated for the impacts of the PATH Act of 2015.


The Kentucky CPA Journal / Issue 4 2017

CPE

Did you know? KyCPA members can now purchase unlimited CPE packages from the AICPA and Surgent. Visit kycpa.org and click on the Promotions tab of the CPE catalog. For between $249 or $299, you can take as many courses as you need, when you need them. Packages are good for one calendar year from date of purchase. KyCPA offers special options for groups. Save $25 for each registration when groups of four or more from the same organization register for the same event at the same time. That’s a savings of at least $100 per event! Groups of two or more can even view webcasts together. For more information, contact the CPE department at 800-292-1754.

KyCPA offers flexible options to obtain your ethics hours. License renewal requires CPAs two earned CPE credits in ethics during the two calendar years prior to your renewal year. These two hours count towards your total of 80 or 60 hours of CPE. Visit kycpa.org for more than 100 ethics programs, from 1-4 hours, beginning at $39. On-demand, webcasts (some evenings and Saturdays) and live in-person courses are available.

For your convenience Schedule customized training for your team at your office, the Gratzer Education Center or another site.

On-site CPE Training kycpa.org

Contact Suzanne Sturgeon at 502.736.1385 or ssturgeon@kycpa.org to learn more about KyCPA on-site training.

• Train your staff as a team and get everyone on the same page • Save money on travel • Choose a date that works for you • Tailor the course to meet the specific needs of your company and employees • Discuss confidential information without competitors present • Access to top-rated instructors and courses • Only 10 participants needed for a custom program Onsite Learning is offered in two formats: • Turnkey Presentations include both a qualified instructor and high-quality learning materials • Materials Only offers the flexibility of purchasing high-quality learning materials and selecting and securing your own instructor Simplify CPE planning for your office and let us handle the details for your customized team training. We will: • Work with you to pinpoint the appropriate educational program for your team • Identify and contract top-rated, expert instructors (or you can provide your own speaker)

kycpa.org

33


The Kentucky CPA Journal / Issue 4 2017

CPE

Conferences

Agriculture, Food and Commodities Conference Oct. 26 8 CPE hours Gratzer Education Center, Louisville X

Topics: •

• • • • • •

Engage Agriculture – State of AG in KY Kentucky Agriculture is a $6.548 billion industry in Kentucky. Since 1950, agriculture in Kentucky has changed and we are producing more with less and feeding more people. How? Agricultural financing considerations - Panel discussion Sales and use tax: How to avoid trouble and navigate a sales & use tax audit Commodity pricing trending and hedging strategies The importance of the liquor industry in Kentucky: Grain and corn as a commodity and profit center Consumer trends and supply chain issues in food and commodities Integrated food production: Financial opportunities and creative spin-off industries Estate planning for agriculture: Guidance for family farmers and agri-business Early Bird Fee: Register by Oct. 12 KyCPA member: $324 Nonmember: $424 Regular Fee: After Oct. 12 KyCPA member: $374 Nonmember: $474

34

CPAs and Seniors Conference

Nov. 1 8 CPE hours Gratzer Education Center, Louisville X

Topics:

• Industry update: The global economy and alignment of innovation

• How to protect your assets as you age • Time to consider assisted living: How to advise • • • •

your clients Changes in long term care solutions that CPAs should know Improving your customer service in working with older adults How CPAs can help resolve elder fraud Why it’s important for CPAs to identify and report elder abuse Early Bird Fee: Register by Oct. 18 KyCPA member: $324 Nonmember: $424 Regular Fee: After Oct. 18 KyCPA member: $374 Nonmember: $474


Nov. 9, 2017

C O M M E R C I A L

Estate Conference Real

8 CPE hours

Incentives for development

Gratzer Education Center, 1735 Alliant Avenue, Louisville

kycpa.org

Program

• Developing Louisville: Obstacles and opportunities • Real estate incentives: Capital raise, revenue bonds, TIFs • New market tax credits: What you need to know • Financing opportunities for real estate projects • Using engineered studies as a tool for fixed asset management including tax implications • Property tax protests • Kentucky’s investment incentives • Section 704 (allocation considerations in real estate development projects) • Real estate forecasting trends

Registration | REC119 Also available as a live webcast. Early Bird Fee: Register by Oct. 26 KyCPA member: $324 Nonmember: $424 Regular Fee: After Oct. 26 KyCPA member: $374 Nonmember: $474

_________________________________________________

Fee includes 8 CPE hours, electronic manual, continental breakfast, lunch, and refreshment breaks. Group discount: Register 4 or more from the same firm or company at the same time and save $25 per person. All courses include electronic manuals. We can provide a printed copy for $30. Please order when registering. If you have special dietary or other needs, please contact the Society office at 502.266.5272 or 800.292.1754.


g

r .o

a p c

ky

Women’s Leadership Conference Nov. 10, 2017 Fear less Debbie Scanlon, CPA, Partner, BKD, LLP A Powerful You Kate Bringardner, owner, The Speaker’s Studio Taking Calculated Risks Dr. Sharon Kerrick, Dean of the Rubel School of Business at Bellarmine Owning Your Strengths Rachel Bauer, Co-founder and CCO, Gild Collective Kelsey Pytlik, Co-founder and CEO, Gild Collective Deconstructing Fear Julie Hermann, former Executive Senior Associate Athletic Director at the University of Louisville FearLess Public Speaking and Presenting Madison Cork, President and Founder, Cork Communications

Registration and networking breakfast 7:30 – 8:30 a.m. Sessions 8:30 a.m. – 4:15 p.m. Cocktail reception 4:30 – 6 p.m. Gheens Foundation Lodge at the Parklands of Floyds Fork 1421 Beckley Creek Pkwy., Louisville Fee: $199 (No additional discounts available.) 4.5 CPE Hours Fee includes electronic manual, continental breakfast, lunch, and refreshment breaks.

Register online at kycpa.org. A registration form that you may print and send in is also available at kycpa.org.


The Kentucky CPA Journal / Issue 4 2017

CPE

Kentucky State Tax Conference Nov. 30 8 CPE hours Holiday Inn Hurstbourne, Louisville

Topics: • • • • • •

The latest on state tax reform What’s new at the Kentucky Department of Revenue? Local tax update Updates from our neighboring states Kentucky litigation and tax case update State tax implications of mergers and acquisitions

Early Bird Fee: Register by Nov. 16 KyCPA member: $324 Nonmember: $424 Regular Fee: After Nov. 16 KyCPA member: $374 Nonmember: $474

Kentucky Technology Conference Dec. 14-15 8 CPE hours Holiday Inn Hurstbourne, Louisville

General session topics include: • • • •

Tech update 2017 Security blocking & tackling Excel guru - tips to make your head spin Detecting & preventing computer fraud

Breakout topics include: • • • • • • • • • • • • • • •

Reporting tools for productivity The CPA firm of now Excel tips & tools for better budgets & forecasts Excel data models, combinations, & consolidations Small business accounting What’s new with Microsoft Office 365, Zoho Docs, & G Suite by Google Cloud Microsoft Word tips & tricks Hot tech tools, apps, & services Working effectively from anywhere Good fences make good neighbors Beyond small business accounting Password management tools - why they are necessary Creating an incident response plan Introduction to Array Formulas Implementing DLP for better security & privacy Early Bird Fee: Register by Nov. 30 KyCPA member: $449 Nonmember: $649 Regular Fee: After Nov. 30 KyCPA member: $499 Nonmember: $699

kycpa.org

37


The Kentucky CPA Journal / Issue 4 2017

Educational Foundation

Create a Legacy Legacy Named Scholarships AssuredPartners NL Baldwin CPAs PLLC BKD True Expertise Accounting Blue & Co., LLC Brandon Lloyd Warden Memorial Brown-Forman Diversity

• BKD LLP • Crowe Horwath LLP • Deloitte & Touche LLP • Ernst & Young LLP • KPMG LLP • Louis T. Roth & Co., PLLC • MCM CPAs and Advisors • Patterson & Company PLLC

Crowe Horwath LLP

Heritage CIRCLE

Dave Calzi

Freibert CPA Group PLLC

• Baldwin CPAs PLLC • Blue & Co., LLC • Bramco, Inc. • Brown-Forman Corporation • Buetow LeMastus & Dick PLLC • DMLO CPAs • Kelley Galloway Smith Goolsby PSC • Strothman & Company

Gordon Ford Memorial

Destiny CIRCLE

Dean Dorton PLLC Deloitte & Touche LLP DMLO CPAs Ernst & Young LLP

Henderman, Jessee & Co. PLLC Kelley Galloway Smith Goolsby PSC KPMG LLP KyCPA Presidents Louis T. Roth Memorial MCM CPAs and Advisors National Insurance Agency Papa John’s International Patterson & Company PLLC PricewaterhouseCoopers LLP Sadie Mae Strothman & Company Accounting William J. Caldwell 38

Legacy LEADERS CIRCLE

(Henderman Family Foundation)

• Cloyd & Associates PSC • Dean Dorton PLLC • Fister, Williams & Oberlander PLLC • Freibert CPA Group PLLC • Henderman Jessee & Co. PLLC • Jones Nale & Mattingly PLC • Stephen Lukinovich, CPA • Allen Norvell, CPA • Republic Bank & Trust Company • RFH PLLC • Rudler PSC • SKW CPAs & Advisors PLLC • Stock Yards Bank & Trust Co. • Rick Ueltschy, CPA


The Kentucky CPA Journal / Issue 4 2017

Honors CIRCLE • Steve Allen, CPA

• Chris Anderson, CPA • AssuredPartners NL • Breeding Henderson & Hord PLLC • Dave Calzi, CPA • William Carroll, CPA • John Chilton, CPA • Christian Sturgeon & Associates PSC • David Conway, CPA • Craft Noble & Company, PLLC • Nancy Davis, CPA • Lori Dearfield, CPA • Randy Franklin, CPA • Greg Greenwood, CPA • Rowe Hamilton, CPA • Harrod & Associates PSC • Greg Hintz, CPA • Jennifer Hughes, CPA • International Systems of America LLC • Steve Jennings, CPA • Bill Jessee, CPA • Joe Johnston, CPA • Steven Kerrick, CPA • Kelly King, CPA • John Layne, CPA • Phil Layne, CPA • Steve Lenarz, JD, CPA • Mike Lenihan, CPA • Alan Long, CPA • Mark Loyd, JD, CPA • Jack Lynch, CPA • Colleen Lyons, CPA • Jennifer McGill, CPA • Diane Medley, CPA • William G. Meyer III, CPA • Jennifer Monaghan, CPA

• Mike Mountjoy, CPA • Myriad CPA Group LLC • National Insurance Agency, Inc. • Bob Patterson, CPA • Elizabeth Rankin, CPA • Rankin, Rankin & Company • Chris Reid, CPA • Retirement Management Services LLC • L. Porter Roberts, CPA • Michael Robinson, CPA • Jennifer Sanders, CPA • Mark Schmitt, CPA • David Smith, CPA • Jim Sparrow, CPA • Jason Stockton, CPA • Dr. Bill Stout, CPA • Ray Strothman, CPA • Lori Warden, CPA

Gratzer CIRCLE

• Jaclyn Badeau, CPA • David Bradley, CPA • Tony Brutscher, CPA • Deborah Burcham, CPA • Jennifer Burke, CPA • Jeffrey Calderon, CPA • Earl Calhoun, CPA • Jennifer Chinn, CPA • Angela Clark, CPA • Diane Cornwell, CPA • Steve Daniels, CPA • Delta Natural Gas Company, Inc. • Ken Drozt, CPA • Dulworth Breeding Karns & Pleasants LLP • Louis Fister, CPA • Melissa Fraser, CPA • Kevin Fuqua, CPA • Ritu Furlan, CPA • Paula Hanson, CPA • Henry Hawkins, CPA

Pave the Way Campaign Contributor Create a Legacy Campaign Contributor kycpa.org

Educational Foundation

• David Heintzman, CPA • Jerry Hensley, CPA • Kevin Heyde, CPA • Margaret Jolly, CPA • Mimi Kelly, CPA • Dr. Harold Little, CPA • Miller Mayer Sullivan & Stevens LLP • Chris Moore, CPA • David Morgan, CPA • Neikirk Mohoney & Smith CPAs PLLC • Wes Omohundro, CPA • Becky Phillips, CPA • Earl Reed, CPA • Riney Hancock CPAs PSC • Steve Schulz, CPA • Brad Smith, CPA • Gary Stewart, CPA • Clay Stinnett, CPA • Tom Strohmeier, CPA • Greg Stump, CPA • Van Gorder Walker & Company Inc. • Nick Walker, CPA • Elizabeth Woodward, CPA • Joshua Zik, CPA

Scholars CIRCLE

• Thomas Buetow, CPA • Vicki Buster, CPA • Dr. Margaret Combs, CPA • W. Thomas Cooper Jr., CPA • Trish Deatrick, CPA • Frank Farris, CPA • Lisa Foley, CPA • Geoffrey Griffith, CPA • Quinn Hart, CPA • Ann Holt, CPA • Joseph King, CPA • Todd Klimek, CPA • Mark Kristy, CPA • John T. Lane & Associates, LLC • Roger Johnson, CPA

Continued on p. 40

Pave the Way and Create a Legacy Campaign Contributor

39


The Kentucky CPA Journal / Issue 4 2017

Educational Foundation

Legacy continued • Skip Looney, CPA • Brian Malthouse, CPA • Melissa Marvel, CPA • Rebecca Myers, CPA • Kevin Rose, CPA • Rory Satkoski, CPA • Michelle Seifert, CPA • Snider Corales & Associates PSC • Tom Strohmeier, CPA • Ann Sullivan CPA • VonLehman & Co. Inc. • Melissa Wasson, CPA • Ann Wells, CPA • Ashley Williamson, CPA • Michael Wilson, CPA

Caring CIRCLE

• RoRobert Abner, CPA • Charles Albright, Jr., CPA • John Backer, Jr., CPA • Thomas Baer, CPA • Joseph Baker, CPA • Bobby Baldwin, CPA • Roger Bean, CPA • Janet Berry, CPA • Jason Bigg, CPA • Ann Bongiolatti, CPA • Joshua Bramucci, CPA • Christopher Breslin, CPA • Jerome Bressler, CPA • Gail Broady, CPA • Robert Bruce, Jr., CPA • Shirley Buckner, CPA • Ellen Budde, CPA • Erin Bukowski, CPA • J. Robert Buschermohle, CPA • Buschermohle & Company PSC • Kelly Cappy, CPA • Ashley Carrico, CPA • Jordan Carter, CPA • Lisa Castle, CPA • Michael Caudill, CPA • Philip Ciafardini, CPA • Donya Clark, CPA • Heather Cochran, CPA

• Travis Collins, CPA • Donnie Cox, CPA • John Craft, CPA • Carrie Crouch, CPA • Carroll Crouch, CPA • Richard Crowder, CPA • James Daugherty, CPA • Anthony Davidson, CPA • W. Garrett Dering, CPA • Michael Dicken, CPA • Meaghan Dixon, CPA • Lisa Dunagan, CPA • Faye Dykstra, CPA • Olubunmi Dosunmu, CPA • Haley Edlin, CPA • Timothy Eldridge, CPA • Stephen Elliott, CPA • Dennis England, CPA • Patricia Featherston, CPA • Myron Fisher, CPA • David Flanery, CPA • Beth Freibert, CPA • Harry Freibert, CPA • Dr. Dan Fulks, CPA • Jeanette Garber-Zemsky, CPA • C. Rose Garvey, CPA • Kevin Gibbs, CPA • Andrew Gladden, CPA • Jeffrey Gooch, CPA • Scott Grant, CPA • Joseph Graviss, CPA • Ollie Green, CPA • John Grider, CPA • Lee Groza, CPA • Joseph Guelda, CPA • Tom Hackney, CPA • Julie Hagen, CPA • John Hampton, CPA • Ralph Hannah, CPA • Danny Hardin, CPA • Robert Harris, CPA • Christopher Hatcher, CPA • Jeffery Hatfield, CPA • John Hawkins, CPA • Mindy Heck, CPA • Mark Henderson, CPA • Arthur Henson, CPA • Janet Jackson Hill, CPA • Ben Holbrook, CPA

• Laurie Holloway, CPA • David Hostetter, CPA • Catherine Hunt, CPA • William Jessie, CPA • Dennis Joseph, CPA • Simon Keemer, CPA • Charles Kington, CPA • Edward Kirn, CPA • Kari Kollenberg, CPA • Harold Kremer, CPA • Edwinna Lambert, CPA • Joel Lane, CPA • John Lane, CPA • Regina Lankswert, CPA • Stephen Larimore, CPA • G. Don Lawson Jr., CPA • Brian Leedy, CPA • Thomas Lirot, CPA • Julie Long, CPA • Thomas Lonnemann, CPA • Barry Lucas, CPA • Edward Maley, CPA • Jeffrey Mallory, CPA • Leonard Mariani, CPA • Marr Miller & Myers PSC • Frank McCracken Jr., CPA • William McNeill, CPA • James Medina, CPA • Michael Mills, CPA • Kathleen Mitts, CPA • Moffitt & Company PLLC • Charles Moffitt, CPA • Lamarr Moore, CPA • David Morgan, CPA • Rita Morgan, CPA • Donald Morris, CPA • Mary Morrow, CPA • Michelle Musacchio, CPA • Lori New, CPA • Glenn Norvell, CPA • Thomas O’Bryan, CPA • George Owens, CPA • Marilyn Owens, CPA • Tony Page, CPA • David Parks, CPA • Bryan Peck, CPA • David Price, CPA • Reed & Co. of Mayfield PSC • Vickie C. Richardson, CPA, PSC

• Deborah Riley, CPA • Mark Ritter, CPA • Caprice Roberts-Price, CPA • John Rodes, CPA • Suzan Ross, CPA • Paul Roth, CPA • Kevin Schwartz, CPA • Karen Sensenbrenner, CPA • Jerry Shelton, CPA • J. Robert Shine, CPA • Joyce Smith, CPA • George Sparks, CPA • Laura Stallard, CPA • Beth Stenberg, CPA • Theodore Stiles, CPA • James Stilz, CPA • Stephen Stovall, CPA • Trenton Stover, CPA • Kristin Stuedle, CPA • Kevin Stumbo, CPA • Wayne Sturgeon, CPA • Summit Strategic Advisors LLC • Douglas Sumner, CPA • John Taylor, III, CPA • Harvey Thompson, CPA • Mark Thompson, CPA • William Upchurch, CPA • Shellie Utley, CPA • Michael A. Veneman, CPA • Michael B. Veeneman, CPA • Bobby Webb, CPA • Anne Wells, CPA • Arthur Wissing, CPA • Kathleen Wright, CPA • Michael Wurth, CPA • David Wyatt, CPA • Stephen Zink, CPA • Kevin Zins, CPA

IN Kind Gifts

• Becker Professional Education • Brown-Forman Paid Summer Internships for African-American Students • Deloitte & Touche LLP • John Hawkins, CPA

Thank you for supporting the KyCPA Educational Foundation. By doing so, you are truly creating a legacy. If you would like to support the future of the profession by giving to the Foundation, go to kycpa.org or call KyCPA at 502.266.5272 or 800.292.1754. We make every effort to ensure this list of donors to the Create a Legacy or both Create a Legacy and Pave the Way campaigns is accurate. However, if you see an error, please contact Julie Salvaggio at jsalvaggio@kycpa.org.

40


The Kentucky CPA Journal / Issue 4 2017

Accounting careers

Scholarship applications accepted Dec. 1 - Feb. 19 T he KyCPA Educational Foundation is getting ready to give away thousands of dollars in academic scholarships and needs your help in finding the best and brightest candidates. Applicants must be college accounting students enrolled in an accredited Kentucky-based college or university and at least a sophomore in academic standing. Scholarship levels range between $1,000 and $2,500. Applications will be accepted Dec. 1, 2017 through Feb. 19, 2018. For more information or to apply, visit kycpa.org or contact Julie Salvaggio at jsalvaggio@kycpa.org.

kycpa.org

Past scholarship recipient celebrating at the 2017 Spring Awards Banquet.

41


The Kentucky CPA Journal / Issue 4 2017

Society

KyCPA honors 100% Champions T



















 









he following firms and businesses ensure all eligible CPA employees are members of KyCPA. This demonstrates their commitment to the profession, to the Society’s high ethical standards and a commitment to life-long learning. We appreciate their support of KyCPA and its mission. The information below is verified annually at the time of membership renewals. Inclusion on this list is an opt-in basis. If your organization would like to join the list of 100% Champions, or you have questions about the program, please contact Heather Hibbs at hhibbs@kycpa.org or 502.736.1368. 



























We make every effort to ensure the accuracy of this list. If you have voluntarily notified us of your 100% Champion status and we have left your name off this list, please let us know immediately, by contacting Heather Hibbs at hhibbs@kycpa.org.

100% Champions as of Sept. 26 • • • • • • • • • • • • • • • • • • • •

42

Addington & Mills, PSC, Lexington Alexander & Company, PSC, Owensboro Alexander Toney & Knight, PLLC, Madisonville Alford Nance Jones & Oakley, LLP, Madisonville The Allen Company, Inc., Lexington Allen CPAs & Advisors, PLLC, Lexington Allston Advisory Group, LLC, Louisville Anderson Jones CPAs, PSC, Maysville Andrews Tackett & Associates, PSC, Flatwoods ANEW 401K TPA, LLC, Louisville Anneken Huey & Moser, PLLC, Ft Thomas Anneken Huey & Moser, PLLC, Ft Wright Associated Pallet, Inc., Bremen Baldwin CPAs, PLLC, Lexington Baldwin CPAs, PLLC, Maysville Baldwin CPAs, PLLC, Flemingsburg Baldwin CPAs, PLLC, Louisville Baldwin CPAs, PLLC, Richmond Bennett & Company, CPAs, Louisville Berry Kington & Utley, PSC, Madisonville

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Blue & Co., LLC, Lexington Blue & Co., LLC - Commercial, Louisville Bowden & Wood, PLLC, Louisville Bramel & Ackley, PSC, Ft Wright Buckles Travis & Hart, PLLC, Leitchfield Buetow LeMastus & Dick, PLLC, Louisville Buschermohle & Company, PSC, Louisville Calhoun & Company, PLLC, Hopkinsville Campbell Myers & Rutledge, Glasgow Carr Riggs & Ingram, LLC, Bowling Green Carr Riggs & Ingram, LLC, Russellville CHAN Healthcare, Louisville CHAN Healthcare, Lexington Charles T. Mitchell Company, PLLC, Frankfort Charles T. Mitchell Company, PLLC, Versailles Christian Sturgeon & Associates, PSC, London Compton Kottke & Associates, PSC, Louisville Craft Noble & Company, PLLC, Richmond Crowe Horwath, LLP, Louisville Crowe Horwath, LLP, Lexington Dean Dorton, PLLC, Lexington Dean Dorton, PLLC, Louisville Delta Natural Gas Co., Inc., Winchester DMLO CPAs, Louisville Drane & Company, PLLC, Hardinsburg Duncan Smith & Stilz, PSC, Lexington Ebelhar Whitehead, PLLC, Owensboro Elmcroft Senior Living, Louisville Embry & Watts, PLLC, Morgantown Embry & Watts, PLLC, Beaver Dam Faulkner King & Wenz, PSC, Mt Sterling Fister Williams & Oberlander, PLLC, Lexington Flynn Accounting, LLC, Jeffersonville, Ind. Fowler Durham CPAs and Advisors, PLLC, Munfordville Franklin Financial Group, Madisonville Freibert CPA Group, PLLC, Louisville Garstka Gander & Crabb, PSC, Lexington Shirley E. Gifford, CPA, Ferguson Grover Greweling & Company, PSC, Louisville Hamilton Thomas & Co., PLLC, Louisville Harding Shymanski & Company, PSC, Louisville Harris & Associates, PSC, Somerset Harrod & Associates, PSC, Frankfort Hoover and Morris, PLLC, Livermore Jaynes and Jaynes, PSC, Richmond John T. Lane and Associates, LLC, Mt Sterling Jones Nale & Mattingly, PLC, Louisville Kauffmann & Associates, CPAs, Louisville Kelley Galloway Smith Goolsby, PSC, Pikeville Kelley Galloway Smith Goolsby, PSC, Ashland Kelley Galloway Smith Goolsby, PSC, Cold Spring


The Kentucky CPA Journal / Issue 4 2017

• • • • • • • • • • • • • • • • • • • • •

Kemper CPA Group, LLP, Henderson Kinkead & Stilz, PLLC, Lexington Kirby & Moore, LLP, Bowling Green Louis T. Roth & Co., PLLC, Louisville Lutz & Associates, Inc., Madisonville Marr Miller & Myers, PSC, Corbin McKinney & Associates, LLC, Scottsville MCM CPAs and Advisors, LLP, Jeffersonville, Ind. MCM CPAs and Advisors, LLP, Louisville MCM CPAs and Advisors, LLP, Cincinnati, Ohio MCM CPAs and Advisors, LLP, Lexington Miller Mayer Sullivan & Stevens, LLP, Lexington Morgan & Associates, LLC, West Liberty Munninghoff Lange & Co., CPAs, Covington Owensboro Municipal Utilities, Owensboro Padgett & Mastronardo, PLLC, Walton Tony Page CPA, PLLC, Murray Patterson & Company, PLLC, Louisville Peck & Milford, LLP, Paducah Radwan Brown & Co., PSC, Lexington Reed & Co. of Mayfield, PSC, Mayfield

• • • • • • • • • • • • • • • • • • • • • •

Society

Retirement Management Services, LLC, Louisville RFH PLLC, Lexington Vickie C. Richardson CPA, PSC, Mt Sterling Robinson Hughes & Christopher, PSC, Danville Rueff and Associates, PLC, Louisville SKW CPAs & Advisors, PLLC, Lexington Smith & Company CPAs, PLLC, Bardstown Southern Star Central Gas Pipeline, Owensboro Stephens & Lawson, PSC, Louisville Stiles Carter & Associates, PSC, Bardstown Strothman & Company, Louisville Stuedle Spears & Company, PSC, Louisville Sullivan & Curry, LLP, Greenville Sullivan Morris Sullivan & Hart, PSC, Lexington Summit Strategic Advisors, LLC, Louisville Tallent & Associates, CPA, Louisville Van Gorder Walker & Company, Inc., Erlanger Verbeck & Kaleher CPAs, Inc., Taylorsville Welenken CPAs, Louisville Williams Williams & Lentz, LLP, Paducah Wise Buckner Sprowles & Associates, Campbellsville Young & Wadlington, PLLC, Lexington

A partner you can count on Talk to your broker today or visit anthem.com to learn how we can make a difference for your business. In an ever-changing business world, it pays off to have a partner that’s always looking out for you. We do this by: 

Working with you to find a health plan that lets you control how you spend your health care dollars

Engaging employees in programs that help them lead a healthy lifestyle

Investing in technology for easy and quick access to benefits

Anthem Blue Cross and Blue Shield is the trade name of: In Colorado: Rocky Mountain Hospital and Medical Service, Inc. HMO products underwritten by HMO Colorado, Inc. In Connecticut: Anthem Health Plans, Inc. In Indiana: Anthem Insurance Companies, Inc. In Kentucky: Anthem Health Plans of Kentucky, Inc. In Maine: Anthem Health Plans of Maine, Inc. In Missouri (excluding 30 counties in the Kansas City area): RightCHOICE® Managed Care, Inc. (RIT), Healthy Alliance® Life Insurance Company (HALIC), and HMO Missouri, Inc. RIT and certain affiliates administer non-HMO benefits underwritten by HALIC and HMO benefits underwritten by HMO Missouri, Inc. RIT and certain affiliates only provide administrative services for self-funded plans and do not underwrite benefits. In Nevada: Rocky Mountain Hospital and Medical Service, Inc. HMO products underwritten by HMO Colorado, Inc., dba HMO Nevada. In New Hampshire: Anthem Health Plans of New Hampshire, Inc. HMO plans are administered by Anthem Health Plans of New Hampshire, Inc. and underwritten by Matthew Thornton Health Plan, Inc. In Ohio: Community Insurance Company. In Virginia: Anthem Health Plans of Virginia, Inc. trades as Anthem Blue Cross and Blue Shield in Virginia, and its service area is all of Virginia except for the City of Fairfax, the Town of Vienna, and the area east of State Route 123. In Wisconsin: Blue Cross Blue Shield of Wisconsin (BCBSWi), underwrites or administers PPO and indemnity policies and underwrites the out of network benefits in POS policies offered by Compcare Health Services Insurance Corporation (Compcare) or Wisconsin Collaborative Insurance Corporation (WCIC). Compcare underwrites or administers HMO or POS poilicies; WCIC underwrites or administers Well Priority HMO or POS policies. Independent licensees of the Blue Cross and Blue Shield Association. ANTHEM is a registered trademark of Anthem Insurance Companies, Inc. The Blue Cross and Blue Shield names and symbols are the registered marks of the Blue Cross and Blue Shield Association. Independent licensees of the Blue Cross and Blue Shield Association. ANTHEM is a registered trademark of Anthem Insurance Companies, Inc. The Blue Cross and Blue Shield names and symbols are registered marks of the Blue Cross and Blue Shield Association. 66204MUEENABS 04/17

kycpa.org

43


The Kentucky CPA Journal / Issue 4 2017

Members

Welcome new members Student

Devin Earl Casey, Northern Kentucky University Victoria J. Chubaruk, University of Kentucky Kathleen Johnston, Maryville University Emma Clare Nolan, RFH, PLLC, Lexington Hannah Shae Pritchett, Transylvania University Elizabeth Marie Secen, Liberty University Online Mary Rachel Short, RFH, PLLC, Lexington Brandi Trout, Sullivan University Sydney Carol Vogt, Western Kentucky University Lauren N. Welch, Morehead State University Austin Bentley Workman, Morehead State University

Firm Administrator

Linda Milligan, Duncan Smith & Stilz, PSC, Lexington

Non-CPA Associate

Andrew William Argo, VonLehman & Co., Inc., Ft. Wright Sydney Grace Bounds, BKD, LLP, Louisville David Adam Brown, Blue & Co., LLC, Lexington Jessica T. Fisher, Myriad CPA Group, LLC, Owensboro Brooklyn Gamble, RFH, PLLC, Lexington Michael Kyle Gravens, Kelley Galloway Smith Goolsby, PSC, Ashland Michael H. Gross, Cornerstone Wealth Advisors, Louisville Gloria June Haley, Jones Nale & Mattingly, PLC, Louisville Janessa Sha Huffman, VonLehman & Co., Inc., Ft. Wright Nefty Omar Lopez Cruz, Blue & Co., LLC, Lexington Randan Evan Salyers, BKD, LLP, Bowling Green Bryan Patrick Spalding, Blue & Company, LLC, Lexington Stephanie Spillers, VonLehman & Co., Inc., Ft. Wright Destiny L. Stewart, PricewaterhouseCoopers, LLP, Louisville Jonathan Samuel Wright, Freibert CPA Group, PLLC, Louisville Michael Ydoate, BKD, LLP, Louisville

Regular

Joni Marie Atzinger, Monroe Shine & Company, Inc., New Albany, Ind. Caitlin Brooke Bailey, Crowe Horwath, LLP, Louisville Jonathan Allen Bickers, Crowe Horwath, LLP, Louisville Anne J. Brooks, PricewaterhouseCoopers, LLP, Louisville Brandon L. Bodine, Ernst & Young, LLP, Louisville

44

Garrett Overstreet Booth, Alexander & Company, PSC, Owensboro Amanda Martin Borden, Radwan Brown & Co., PSC, Lexington Esther Renee Caudill, Collins & Slone, CPAs, Pikeville Gregory Scott Collins, Enderle Besten Dieruf, PLLC, Lexington Ian Lawrence Cooke, Charles T. Mitchell Company, PLLC, Frankfort Megan Cooper, Kelly King & Company, CPAs, Crestwood Timothy Robert Cooper, Stiles Carter & Associates, PSC, Elizabethtown Nathan Lee Crawford, Kemper CPA Group, LLP, Paducah Sara C. Cunningham, Hilliard Lyons, Louisville Adam M. Dicken, Monroe Shine & Company, Inc., New Albany, Ind. Tyler J. Ellegood, Alexander Thompson Arnold, PLLC, Murray Marcus Trent Ellis Emberton, Carr Riggs & Ingram, LLC, Bowling Green J. Michael Flynn, Fifth Third Bank, Cincinnati, Ohio Alexander Bleakley Gans, MCM CPAs and Advisors, LLP, Louisville Brandon Scott Gardner, MCM CPAs and Advisors, LLP, Lexington Paul Douglas Goforth, Kentucky League of Cities, Lexington Matthew S. Hazel, Wise Buckner Sprowles & Associates, Campbellsville Gregory McKale High, Stephens Manufacturing Company, Tompkinsville Chris A. Humphrey, Baldwin CPAs, PLLC, Lexington Bert R. Layne, Melbourne, Fla. Megan Renee Madden, MCM CPAs and Advisors, LLP, Jeffersonville, Ind. Juan Wang Matzner, MCM CPAs and Advisors, LLP, Louisville Justin Tyler McKinley, Alexander & Company, PSC, Owensboro Frederick G. Meuter, LG&E and KU Services Company, Louisville Margaret E. Meyer, Blue & Company, LLC, Louisville Patrick Leo Oster, Crowe Horwath, LLP, Louisville Bryce Hunter Perry, Ephraim McDowell Health, Danville Karen D. Phelps, Thurman Campbell Group, PLC, Princeton Garrett Michael Rackley, Williams Williams & Lentz, LLP, Paducah


The Kentucky CPA Journal / Issue 4 2017

Annamarie Reilly, MCM CPAs and Advisors, LLP, Cincinnati, Ohio Emily A. Rives, Deloitte & Touche, LLP, Louisville David B. Sanders, David K. Sanders, CPA, PLLC, Paducah Steven D. Sandman, Louis T. Roth & Company, PLLC, Louisville Carissa Leigh Schupp, Compton Kottke & Associates, PSC, Louisville Nicholas Peter Shipley, MCM CPAs and Advisors, LLP, Cincinnati, Ohio Frances C. Stokes, UK Coldstream Research Campus, Lexington Phillip W. Strange, Bramel & Ackley, PSC, Ft. Wright

kycpa.org

Members

Wayne Alan Tervo, Murray State University, Murray Matthew Lee Warren, PYA, PC, Knoxville, Tenn. Brigette Kay Wayne, Owensboro Municipal Utilities, Owensboro Adam C. Woomer, RFH, PLLC, Lexington

Resolution of Respect

John J. Balbach, Dean Dorton, PLLC, Louisville Joseph Edward Blandford, Stiles Carter & Associates, PSC, Bardstown Kenneth Brock, Shelbyville Douglas S. Spurr, Buchenberger Eggers & Spurr, LLC, Louisville

45


The Kentucky CPA Journal / Issue 4 2017

Members

Employment resources Want to attract new talent to your team? KyCPA can help. KyCPA now offers members the opportunity to create a short video that will show potential new accounting talent the company/firm culture and opportunities for them in the accounting field. These videos are produced at minimal cost to members and KyCPA will promote your firm/ company on kycpa.org, all KyCPA social media outlets and more. You also will receive a copy of the video to promote on your own web site and other media. Email Kimberly Lindsey at klindsey@kycpa. org for more details.

Recently, KyCPA went to Patterson & Company CPAs, PLLC to create the first of many recruitment videos. You may check their video out now at kycpa.org.

Find your new job Find the perfect employee Visit our Employment Resources page at kycpa.org and join the KyCPA LinkedIn group to see job postings or post an accounting related positon.

46

kycpa.org


The Kentucky CPA Journal / Issue 4 2017

Members

Members in motion Public accounting

Kathy Herbig was named managing director in tax consulting at Crowe Horwath LLP, one of the largest public accounting, consulting and technology firms in the U.S. She’s responsible for tax consulting and compliance services to both C-Corporation and S-Corporation financial institutions. Dean Dorton Technology was honored with the 2017 Sage Intacct Rookie of the Year Award, as well as being named to the 2017 Sage Intacct President’s Club and selected the New Partner of the Second Half. The company also recently announced a partnership with Intacct, a leading provider of cloud financial management and accounting software.

Robert Patterson, founder and president of Patterson & Company CPAs, and Mimi Kelly, an accountant at LG&E and KU Energy have been appointed to the State Board of Accountancy. They will represent certified public accountants and serve a term expiring June 30, 2021. Blue & Co., LLC recently announced that Nancy Orben and Dominique Waits have been named on the 2017 Top 100 PROADVISOR list by Insightful Accountant.

Fastest smartest malpractice insurance. Period.

800.906.9654 GilsbarPRO.com kycpa.org

47


The Kentucky CPA Journal / Issue 4 2017

Members

KyCPA member profile: Teresa Pleasants Teresa Pleasants, CPA, is the director of human resources at Fasig-Tipton Co. in Lexington.

KyCPA: What inspired you to become a CPA?

Pleasants: Upon completion of high school, my intent was to earn a degree in secondary education and teach business classes, including accounting. However, after some very persuasive conversations with my father regarding the fact that I would probably be more successful working with grown adults versus young adults, I followed his advice and chose the accounting profession. Thank goodness for his fatherly insight! After having three children of my own, I could not have survived a classroom environment every day! In addition, I truly enjoyed accounting and the process of learning the concepts of accounting came quite easily and naturally for me.

KyCPA: What’s a typical day for you in the office?

Pleasants: I am Fasig-Tipton Company, Inc.’s inhouse tax accountant and human resource manager. I wear many hats throughout the year based on the time of the year. We are a multi-state organization, so I might be preparing various monthly, quarterly or annual tax returns, payrolls and estimated tax deposits for different states and localities. On the other hand, I may be spending time managing our 401K plan compliance, health insurance and other employee benefits.

KyCPA: What’s the best part of your job?

Pleasants: Typically, I work independently of our other office personnel due to the confidentiality of my job. However, when we conduct our thoroughbred auctions, I get to travel with our sales team and work directly with the public in a capacity that is outside my normal day-to-day routine. I am a very outgoing person, so I enjoy the interaction

48

with our clients and working in a customer service capacity. Working in the equine industry with one of the top thoroughbred auction companies in the world allows one to meet very unique and interesting individuals from everywhere imaginable. It’s a great aspect of my job. On the other hand, I will admit, being part of the Fasig-Tipton team is, actually, the very best part of my job. I cannot imagine working for another organization whose management team and personnel could top the quality of service that FasigTipton offers its clients. We literally have no turnover and that speaks for itself.

KyCPA: What advice do you have for young people considering a career in accounting? Pleasants: Accounting opens the door for almost any career one chooses to pursue. Every business needs an experienced accountant to take care of the day-to-day financial needs of its company. Small or large, profit or non-profit, the opportunities are endless. In addition, certified public accounting firms are also offering more advancement and career opportunities for their new hires due to the numerous types of services they offer. If you have the accounting knack, stick with your plan, young people. Accounting can lead you to an enjoyable and exciting career.

KyCPA: Since you’ve been at FasigTipton for 29 years, how have you seen your job change as the industry evolves?

Pleasants: The technological advances over the past 29 years have provided a tremendous efficiency factor in my job on a day-to-day basis. New, young college accounting majors will probably never see a five-pound general ledger that has handwritten debit/credit entries nor those green/buff columnar pads, but that was the way I worked way back in the beginning before computers became available! Payroll checks were handwritten, tax deposits had to be mailed or taken to the bank for deposit, letters were typed and mailed and we waited and waited for a return reply.


The Kentucky CPA Journal / Issue 4 2017

In relation to the equine industry, technology has also played a significant role in streamlining the tremendous amount of paperwork involved for both Fasig-Tipton itself and its equine buyers and sellers across the board. Items needed to conduct a thoroughbred auction can now be emailed, scanned, imported, exported and easily

shared throughout our company by those that need access to the documentation and kept in one location.

KyCPA: What do you do for fun? Pleasants: I love to travel to various beach locations. I am a warm weather fan. I have swum with the nurse sharks and

Members

zip-lined through the jungle in Belize. I have snorkeled in the most beautiful waters along the coast of St. John and I have spent many fun-filled vacation days with friends and family in the Clearwater, Florida area---just to name a few memorable occasions. At home, I like to read, grill out and just enjoy life!

Classifieds Classified ads: Include businesses for sale or volunteer, nonprofit board positions; 50-75 words, max.

Cost is $50 for KyCPA members; $100 for non-members. Email Matt Lambert at mlambert@kycpa.org and include your billing information. You may post open positions in the job section of the KyCPA linkedin page. Middletown, Kentucky CPA practice looking for CPA to share current office space and expenses. Sale or merger of current practices possible. Please send response to: Blind Box 2, KyCPA, 1735 Alliant Ave., Louisville, KY 40299. Selling your firm is complex. We can help. Knowing what your firm is worth is the first step. Contact us TODAY to receive a free no-obligation market analysis of your firm. Accounting Biz Brokers has been offering personalized business brokerage services to CPAs for over 12 years. We know your market and our process is strictly confidential. Visit us at www.AccountingBizBrokers.com. NEW LISTING: St Thomas, Virgin Islands gross $70k. Kathy Brents, CPA, CBI. Cell 501.514.4928 Office 866.260.2793. Email: Kathy@AccountingBizBrokers.com.

kycpa.org

49


A 35 year old CPA can apply for $36,000/year of tax free disability income insurance protection without an exam or blood test, and without submitting tax returns*....All for less than $36/month.

CALL OR EMAIL TODAY 800-928-6421 wrl@niai.com www.NIAI.com *Unless required by medical history. Consult your tax advisor. See full policy contract for complete features and provisions.


The Kentucky CPA Journal / Issue 4 2017

Watercooler

By the watercooler “I was brought up to believe that Scotch whisky would need a tax preference to survive in competition with Kentucky bourbon.” - Hugo Black “Keep your friends close and your bourbon closer” - Old Kentucky Proverb

Top private

industry and business sectors

in Kentucky

Mark Twain

Healthcare Nearly 30,000 people work in Kentucky’s healthcare sector

Distribution/ logistics

Food and Beverage

Automotive Kentucky produces 95% of the world’s bourbon supply and is home to more than 300 food and beverage facilities, employing close to 50,000 people kycpa.org

More than 61,000 Kentuckians work in the distribution/ logistics field for mega-companies such as Amazon and UPS

Kentucky is the #1 producer of cars, light trucks and SUVs per capita and was responsible for $5.5 billion in automotiverelated exports last year

Aerospace

Kentucky h a s 7 5 aerospacer e l a t e d facilities that employ nearly 17,000 people with aerospace e x p o r t s increasing 183% over the last five years

51


1735 Alliant Avenue Louisville, KY 40299-6326 kycpa.org

PRSRT STD U.S. POSTAGE PAID LOUISVILLE, KY PERMIT No. 1410

Scan this QR Code to view The Kentucky CPA Journal instantly! www.issuu.com/kycpa

AssuredPartners NL is KyCPA’s official partner in health insurance. 2017 rates are highly competitive get your quote today.

assuredptrnl.com

KyCPA member benefit AssuredPartners NL is KyCPA’s sole agency of record for your health insurance needs. We chose AssuredPartners NL to represent the Society’s membership regarding our group health and dental programs because we want the best and we are confident that you will receive great service from AssuredPartners NL. For more than 20 years, AssuredPartners NL has helped businesses in nearly every industry develop specialized solutions tailored for their needs, and it has done the same for the Kentucky Society of CPAs group health insurance program. Please contact any member of your AssuredPartners NL team if you have questions regarding your renewals or would like to enroll in the group health insurance plan.

Your AssuredPartners NL team Tom Schifano Lane Hettich

tom.schifano@assuredptrnl.com (502.259.9217) lane.hettich@assuredptrnl.com (502.259.9211)

Working together to develop solutions that fit your health and dental insurance needs.

The Kentucky CPA Journal - Issue 4, 2017  

Bourbonomics in the Bluegrass An inside look at Kentucky’s booming bourbon industry. Also: Pension reform update A case for firm mobility Ma...