Accounting Connect - Summer 2022

OSCPA www.orcpa.org SUMMER 2022

A publication of Oregon Society of CPAs

Introducing the new OSCPA Bridge 14 TM

Municipal Audit Law 101 11

Educational Foundation Annual Report Center

Taking tokens: the CPA’s guide to NFTs 15

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Accounting Connect

SUMMER 2022

CONTENTS FEATURES Municipal Audit Law 101 11 The Municipal Audit Law promotes transparency of local governments to their constituents. Here's how to navigate the process and stay compliant.

Introducing the new OSCPA BridgeTM 14 OSCPA's BridgeTM online community has a new look and feel. Here are some tips for using the new site.

Taking tokens: the CPA’s guide to NFTs 15 The market for nonfungible tokens (NFTs) is growing rapidly. Despite the popularity of this digital asset, navigating tax guidelines can be a challenge.

COLUMNS AND ANNOUNCEMENTS The Chair’s Message 4 OSCPA Chair Geoff Dougall reflects on the profession's strengths and opportunities to build a diverse pipeline.

A Message from Sherri McPherson 6 OSCPA President/CEO Sherri McPherson shares about OSCPA’s online community, BridgeTM, and the transition to a new platform.

DEPARTMENTS Member News 7 Kudos & accomplishments, new CPAs, member spotlights, new members, and more The OSCPA Educational Foundation Annual Report Center OSCPA News 18 Career Showcase, OSCPA Fall Basketball League, Circle of Excellence awards, and more Professional Development 23 August-November 2022 OSCPA-SelectTM CPE Calendar, on-demand CPE, Oregonspecific ethics courses, and more Classified Ads 26 2022 Fall & Winter Conferences 28 Advertisers in this issue: Accounting Practice Sales 27 CPACharge 2 Kernutt Stokes 22 Paychex 17 Private Practice Transitions 17

Oregon Society of CPAs Mailing address PO Box 4555 / Beaverton, OR 97076-4555 Location 10206 SW Laurel St. / Beaverton, OR 97005-3209 503-641-7200 / 800-255-1470 • Fax: 503-626-2942 www.orcpa.org / oscpa@orcpa.org Chair Geoffrey T. Dougall Chair-Elect Tracy M. Allen Vice Chair John D. Hawkins Past Chair Charles R. Mello Board of Directors Adam R.K. Abplanalp Karen C. Anderson Cynthia A. Granatir Gary A. Holcomb Megan S. Kurz Pedro J. Nunez Dieguez David S. Porter Harriet A. Strothers Chapter Council Chairs Ross E. Holliday Benton-Linn Chapter Yvonne D. Zbranak Central Oregon Chapter Cameron W. Anderson Eastern Oregon Chapter Dennis M. Quigley Emerald Empire Chapter R. Angelo Sampson Mid-Columbia Chapter Larry A. Reiber South Coast Chapter Elena L. McKee-Dabbs Southern Oregon Chapter President/CEO Sherri L.D. McPherson, IOM, CAE Managing Editor Leslie R.P. Konst, MS lkonst@orcpa.org Assistant Editor Natalie Conway nconway@orcpa.org Content Manager Susan Fleming sfleming@orcpa.org The Oregon Society of CPAs assumes no responsibility for statements or advertisements herein and reserves the right to reject any advertising. Statements and opinions expressed are those of the authors and not necessarily those of the OSCPA. Publication of an advertisement does not constitute an endorsement of the product or service by Accounting Connect or the OSCPA. Send address changes to OSCPA / PO Box 4555 / Beaverton, OR 97076-4555 Or update your member profile online at www.orcpa.org/my-oscpa/profile Copyright© OSCPA 2022 Magazine design by Joleen Funk joleen.funk@gmail.com Stock images by istockphoto.com & stock.adobe.com Printed by Ad-Graphics, Portland, Oregon

Oregon Society of CPAs • www.orcpa.org

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THE CHAIR’S MESSAGE

Strengths and opportunities within the profession Contact Geoff Dougall at ChairGeoff@orcpa.org

Geoffrey (Geoff) T. Dougall 2022-23 OSCPA Chair This past month I’ve engaged with CPAs within Oregon and from across the nation and I am impressed at the dynamic nature and trustworthiness of our profession.

I observed the dynamic nature of our profession when longtime members of OSCPA and new members in the profession were celebrated and welcomed at the Circle of Excellence event in May. The OSCPA Educational Foundation generously provided 58 scholarships to top Oregon and Washington accounting students worth nearly $150k. Through the evening we heard many stories about the recipients that exemplify dynamic and resilient qualities. In addition to recognizing these students and recent graduates, it was impressive to honor nearly 20 members with 40+ years of membership in the OSCPA. It was touching for me to recognize my own father and his 53 years of membership that evening, and it was enjoyable to watch the interactions, hear the stories, and see the pride of the accounting profession.

The energy and enthusiasm of our new members of the profession is

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infectious. I invite new and seasoned professionals alike to volunteer and interact with each other in a meaningful way and to inspire a diverse pipeline into the profession (something incoming AICPA chair Anoop Mehta recently challenged us to do). This includes advocating for CPAs, highlighting the varied careers that an accounting degree offers, and helping those around us grow and develop. You will come away with a renewed optimism in the future of accounting.

One of the reasons students have chosen to study accounting is because of the trust and public confidence we strive for within our profession. At a recent AICPA meeting the continuing importance of trust and integrity in our profession was highlighted.

Almost without regard to the specific areas we may work in, there are outside parties looking to us to provide clarity of information in an honest, transparent manner. This continues to be an area of strength we need to capitalize on as we speak to those considering careers in the accounting industry.

We have been asked to highlight the positive results of our work rather than dwelling on the “busy season,” long work hours or other attributes so often associated with public accountants.

In many areas of society trust is decay-

• SUMMER 2022

ing, yet this is one of the largest strengths our profession offers. We have a myriad of opportunities to strengthen society and serve the public interest through our efforts, including improvements to financial reporting, assurance services in areas such as Environmental, Social, and Governance (ESG), cybersecurity, and digital finance. Clients continue to look to us as one of their most trusted advisors whether it be assurance, tax, advisory, or other planning services.

As we collectively step forward to meet this expectation, our profession continues to advance and provide more meaningful opportunities.

The recent annual OSCPA Strategic Leadership Forum and Annual Meeting was an opportunity to help us advance.

We engaged with other accounting professionals and learned to make ourselves better individuals and leaders, think about opportunities to strengthen our firms and businesses, and understand the challenges and opportunities facing us, our employees, our clients, and customers. This year’s keynote speaker, Hamish Taylor, spent a day helping us change the way we view our customers. Ultimately customers care about how they benefit from our efforts, not what we do. Using this as a platform, he taught us about customer promises and how to use promises as a tool to guide organizational decisions

THE CHAIR’S MESSAGE and communication. Whether our customers are internal departments relying on our accounting and reports or external clients requiring our expertise, understanding how they benefit from our work is key to a successful and meaningful relationship.

With the knowledge we have and the trust our customers have in us, we should all feel confident providing the advice and insights that are so critical at this time. The strong economic trends many of us have benefited from the last few years are shifting. This makes our work ever more important. Whether it is improved forecasting, greater confidence in reporting, an increased understanding of tax and regulatory requirements, thorough analysis, or honest advice — our customers and clients trust us to navigate forward. Let us rise to the challenge before us.

Over the next few months, I hope we all find opportunities to have meaningful, personal interactions with one another.

Many of us have attended some great continuing education courses offered by the Society. The OSCPA has done a great job of ensuring we have relevant courses and utilizing technology to bring these courses throughout the state. We will

continue to navigate in-person, hybrid, and remote courses and conferences. Please show your support by attending, volunteering, and providing meaningful feedback.

I would like to personally encourage our chapters to organize an event or two as a way of bringing people together.

These events may be small, providing a great opportunity to reconnect with old colleagues, forge new acquaintances, and strengthen one another. I welcome the chance to mingle with your chapter and share ways we can grow the profession.

Have you looked for opportunities to engage within your community? What gifts and experiences have you been able to provide to those around you? Many of us are finally getting a chance to get out and enjoy time with family and friends outdoors. Let us also use this time of year to seek opportunities to serve in our communities. There are so many ways to get involved. Do something small. Reach out to trusted organizations to find ways to volunteer. Look for anonymous ways to serve a friend or neighbor. I look forward to hearing how individual members of our Society are impacting their communities. Please share your stories — I know they will inspire and energize all of us to do more.

Together our voice is heard.

The Oregon CPA/Legislative Action Committee represents YOU. Protect your profession, contribute today.

Together our voice is heard.

• Protect the license.

Nationally, there is continuing pressure to deregulate professional licensing. The risk is that unlicensed individuals would be able to provide services traditionally performed by CPAs. If this issue comes to Oregon, our efforts will be critical.

• Protect the public.

Disconnecting from the federal tax code would create undue complexity for the taxpaying public and reduce CPAs’ ability to serve clients.

• Build understanding between the CPA profession and state legislators.

Your contributions provide opportunities to connect with legislators and explain the issues that matter to CPAs. • Build on our history of success in the Oregon Legislature.

Each year, members review, provide input, and testify on bills impacting the profession, weighing-in on bills that could have serious repercussions for Oregon CPAs and taxpayers.

To contribute, visit www.orcpa.org/advocacy/contribute Oregon Society of CPAs • www.orcpa.org

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CEO'S MESSAGE

OSCPA — Strength in community Contact Sherri McPherson at smcpherson@orcpa.org

Sherri L.D. McPherson, IOM, CAE President/CEO Over the last two years, we’ve found our way together, as a community, through numerous challenges and changes. The CPA profession’s continued ability to adapt and thrive is an outgrowth and testament to the strength of our community.

As I mentioned in my last CEO’s message, the Society recently underwent rebranding. In this rebranding process, there was lengthy discussion about the continued use of “OSCPA” as our preferred acronym versus converting to “ORCPA,” a stateoriented format used by several other CPA societies. We also discussed how “S” for “Society” represents our enduring community. We come together with others to accomplish more than we can on our own for advocacy, strength, and professional advancement.

I am never surprised by the level of generosity members have for one another and never take for granted the many ways members give of themselves to help each other.

I regularly see our community in action through the hundreds of OSCPA volunteers who come through for each other year after year in so many ways: producing conferences, participating in advocacy, raising scholarship funds through the OSCPA Educational Foundation — to name just a few acts of service.

Another way OSCPA members continue to support each other is through Bridge , the OSCPA online community.

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OSCPA leaders created the Bridge community in 2012.

Since, it has connected members through discussion threads on a variety of professional topics and late-breaking updates.

On Bridge , members help each other solve issues when someone posts a question. Despite being busy professionals, members still make the time to post answers and contribute.

CPAs are a helping community.

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Through the Bridge community, OSCPA members have also been able to immediately post on which topics are timely and pressing for them. Projects that originated from Bridge include two recent CPE courses. Another very active thread on succession planning led to an OSCPA member writing a two-part article for our Accounting Connect magazine. The article was then shared with other state CPA societies, four of which chose to reprint the article in their own publications. This act of sharing by our member has benefitted CPAs around the country, not just locally.

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We enhanced the Bridge platform to increase our community’s ability to further support one another. There are more specifics about this on page 14 of this issue. With the new technology we look forward to an enhanced experience for members and we hope you will find it to be one more way to reach out, support each other, and strengthen your professional community for the benefit of the profession, as well as the larger community that you serve.

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MEMBER NEWS

Kudos & accomplishments Send your news and announcements to communications@orcpa.org.

Adam Abplanalp

Tom Achor

Colleen Belford

Trever Campbell

Rene Deras

Evan Dickens

Olga Gira

Jamie Grassl

Amy John

Malena Kester

Todd Kimball

Jenna McRae

Tonya Moffitt

Tricia Morris

Ryan Northcutt

Pedro Nunez Dieguez

New hires Colleen M. Belford joined Talbot Korvola & Warwick LLP, Portland, as an audit manager.

Thomas Achor, Sensiba San Filippo LLP, Bend, spoke at OSCPA’s Not-for-Profit Knowledge Network: Both Sides Now – Pros & Cons of Cloud Solutions.

Olga Gira will join Delap LLP, Lake Oswego, as a summer 2022 intern.

Trever E. Campbell, Kernutt Stokes LLP, Eugene, graduated from the 2021-22 Leadership Eugene Springfield program.

Kelsey Halls will join Moss Adams as a member of their tax staff.

Rene D. Deras, Portland Art Museum, Portland, and Todd D. Kimball, CFO Selections LLC, Portland, spoke at OSCPA’s Not-For-Profit Conference.

Erik A. Peterson joined Delap LLP, Lake Oswego, as a tax senior.

Ashley T. Strain will join Perkins & Co., Portland, as a summer 2023 accounting intern.

Promotions Trever E. Campbell was promoted to partner at Kernutt Stokes LLP, Eugene. Trever began working at Kernutt Stokes in 2011 and is currently part of the audit and attestation department. He leads the firm’s forensic and fraud accounting practice.

Jamie Grassl was promoted to partner at Davis & Graves CPA LLP, Gresham. Jamie began working at the firm in 2015 as a tax preparer and received her CPA credential in 2021.

Patricia M. Morris was promoted to partner at Grove Mueller & Swank PC, Salem. Tricia joined GMS in 2017 with over 20 years of experience in public accounting.

Bethany A. Sweany was promoted to senior associate at Grove Mueller & Swank PC, Salem.

Recognition Adam R.K. Abplanalp, Cobalt PC, Portland, and Harriet A. Strothers, Delap LLP, Lake Oswego, spoke at OSCPA’s Metro SHS and Multnomah County PFA Taxes: Practitioner Perspectives webcast.

Evan B. Dickens, Jones & Roth PC, Bend; Jenna S. McRae, Moss Adams LLP, Portland; Ryan A. Northcutt, Aldrich CPAs + Advisors LLP, Lake Oswego; and Tenille M. Woodward, Prime Pensions Northwest LLC, Eugene, spoke at OSCPA’s ERISA Conference.

The following emerging leaders, identified by their employers as rising stars, attended the annual Strategic Leadership Forum, May 3-4, at Salishan Coastal Lodge in Gleneden Beach, Oregon: Laura Engel, Grove Mueller & Swank PC, Salem; Toby S. Roth, Grove Mueller & Swank PC, Salem; and Elizabeth S. Thiesen, Talbot Korvola & Warwick LLP, Portland.

Amy I. John, Oregon Secretary of State Audits Division, Salem; Tonya M. Moffitt, Merina + Co., Tualatin; Keith E. Simovic, Moss Adams LLP, Portland; Ashley Tuttle, Clean Water Services, Hillsboro; and Nancy L. YoungOliver, TriMet, Portland, spoke at OSCPA's Governmental Accounting & Auditing Conference.

Malena Kester, City of Portland, Portland, spoke at OSCPA’s InfoBites: Career Transitions in Accounting.

Jay Richardson, Cosgrave Vergeer Kester LLP, Portland, received his CSCA® (Certified in Strategy & Competitive Analysis) certification.

Oregon Society of CPAs • www.orcpa.org

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MEMBER NEWS

Madelyn Parsons

Erik Peterson

Jay Richardson

Toby Roth

Romita Sekar

Keith Simovic

Kay Sohl

Brooke Stout

Ashley Strain

Diana Strassmaier

Harriet Strothers

Penny Sweeting

Betsey Thiesen

Ashley Tuttle

Bailey Vetter

Tenille Woodward

Kathleen L. Sohl, Kay Sohl Consulting, Portland, spoke at OSCPA’s Not-for-Profit Knowledge Network: Presenting Financial Information to Key Stakeholders.

Brooke A. Stout, Eastern Oregon University, La Grande, was honored as the IMA® Accounting Faculty of the Year.

Diana B. Strassmaier, Aldrich CPAs + Advisors LLP, Lake Oswego, spoke at OSCPA’s Construction Industry Conference and OSCPA’s Oregon Corporate Activity Tax (CAT) 2022 Update.

Penny M. Sweeting, Geffen Mesher & Company PC, Portland, spoke at OSCPA’s State Pass-Through Entity Tax (PTE): State Tax Workarounds to Federal State Tax Deduction Limitation.

Firm & business news Ashland Partners & Company LLP, Medford, spoke with students about the CPA profession at a Southern Oregon University career fair.

Geffen Mesher & Company PC, Portland, participated in a month-long walkathon in support of International Women’s Day. Perkins & Co., Portland, received ClearlyRated's 2022 Best of Accounting Award for Service Excellence, and was recognized by the Portland Business Journal as the second Most Diverse Accounting Firm in the Portland metro area in 2022.

The following firms and businesses were named in Oregon Business’ 2022 100 Best Companies to Work for in Oregon list: Walsh Construction Co., Portland; Hayden Homes LLC, Redmond; Milestone Systems Inc., Lake Oswego; The Partners Group, Portland; Perlo Construction, Tualatin; Vernier Software & Technology LLC, Beaverton; Lone Rock Timber Management Co., Roseburg; Aldrich CPAs + Advisors LLP; Fortis Construction, Portland; KDP Certified Public Accountants, Medford; Pittman & Brooks PC, Portland; Fairway America, Portland; S&B James Construction Management Co., White City; McDonald

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Accounting Connect

• SUMMER 2022

Jacobs PC, Portland; Madden Industrial Craftsmen, Beaverton.

The following firms and business were named in Portland Business Journal’s Most Diverse Accounting Firms in the Portland metro area of 2022: Cobalt PC, Portland; Perkins & Co., Portland; Van Beek & Co. LLC, Tigard; Moss Adams LLP; Irvine & Company LLC, Portland; Foster & Associates CPA LLC, Portland; McDonald Jacobs PC, Portland; Geffen Mesher & Company PC, Portland; Alten Sakai & Company LLP, Beaverton; Pittman & Brooks PC, Portland; Aldrich CPAs + Advisors LLP, Salem; Hoffman Stewart & Schmidt PC, Lake Oswego; Kern & Thompson LLC, Portland; Hansen Hunter & Company PC, Portland; Dougall Conradie LLC, Portland; Isler Northwest LLC, Portland; Morones Analytics LLC, Portland; KBF CPAs LLP, Lake Oswego; Fordham & Co. LLP, Hillsboro; Talbot Korvola & Warwick LLP, Portland; Schultz Group CPAs PC, Portland; Maginnis & Carey LLP, Portland; Jones & Roth PC; Barrett & Company PLLC, Camas, WA.

Academic news Thank you to Keith Dussell of University of Oregon, Kim Eitner of University of Oregon, Logan Steele of Oregon State University, and OSCPA Member and Young Professionals Committee member Madelyn Parsons of Portland State University for organizing the Spring 2022 Accounting Career Expo.

Thank you to Pedro J. Nunez Dieguez, People First Consulting LLC, Beaverton, for volunteering to speak with students about OSCPA and the accounting profession. The Spring 2022 Accounting Career Expo, hosted by Portland State University, University of Oregon, and Oregon State University, introduced college students from around the state to employment opportunities within the accounting profession.

Congratulations to Romita Sekar and Bailey Vetter for winning 1st place in the Beta Alpha Psi Northwest Region at Deloitte’s Best Practices Competition. They will now move forward to compete against the other regional winners in the nation at the Beta Alpha Psi Annual Meeting in July.

MEMBER NEWS

Congratulations new CPAs These members became certified in March, April, and May 2022.

Lucas Ellis

Jessica Garner

Raelyn Lambert

Seth Mack

Blaine L. Bradford, McDonald Jacobs PC, Portland Asheley T. Carlson, Perkins & Co., Portland Sara DeMaster Smith, Johnson & Mohr CPAs, McMinnville Lucas F. Ellis, Kuenzi & Company LLC, Salem Jessica Garner, Jones & Roth PC, Eugene Morgan Healey, St Helens

Raelyn Lambert, Alliance Professionals LLP, Redmond

Member Spotlights

The CPA credential opens doors! Read your colleagues’ unique professional journeys at www.orcpa.org/my-oscpa/ memberspotlights and on Instagram at www.instagram.com/ oregoncpas.

Patricia Buescher Patricia Buescher was the first woman to serve as Chair of the OSCPA Board of Directors.

Read why the advice she would give to new professionals is the same advice she would give to world travelers.

Jessica Yoder Jessica Yoder of McDonald Jacobs shares what she loves most about her job, and what those three CPA letters mean in the business community.

Anna Mar

Shae McCulloch

Jason Short

Ben Tellin

David Lindsay, Moss Adams LLP, Portland Seth T. Mack, Kuenzi & Company LLC, Salem Anna Mar, City of Portland Revenue Division, Portland Shaelline N. McCulloch, Burns & Company CPAs LLC Dba Reid Hanna Johnson, Ashland Jason Short, Dickey and Tremper LLP, Pendleton Benjamin A. Tellin, Moss Adams LLP, Portland

In memory The OSCPA regrets the loss of the following members: Name

Year Joined

Lyle F. Adams........................................................ 1974 Susan J. Adkison...................................................1987 Ted E. Anderson...................................................1967 Lester L. Fordham Jr............................................. 1977 William H. Gregory..............................................1962 James A. Hall........................................................1998 George E. Hodgson..............................................1967 James F. Koch........................................................2014 Paul L. Schibig......................................................1982 William S. Trope Jr...............................................1983

Jamie Grassl Jamie Grassl of Davis & Graves CPA shares her journey to earn the CPA credential and the many sources of inspiration that motivated her to succeed.

Share your news Been published? Interviewed? Is your firm or business helping out in your community?

To share your professional news with your peers, contact communications@orcpa.org

Oregon Society of CPAs • www.orcpa.org

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MEMBER NEWS

Welcome members

These members joined or re-joined in March, April, and May 2022.

Central Oregon

Julie C. Klein, Perkins & Co., Portland

Patrick H. Kearns Jr., Bend

Alyssa Kuchenreuther, Wilsonville David R. Larson, West Linn

Eastern Oregon Jason Short, Dickey and Tremper LLP, Pendleton Erin Voss, Connected Professional Accountants LLC, La Grande

David Lindsay, Moss Adams LLP, Portland Taylor Montgomery, Holmes & Company PC, Portland Tenzin Naljor, Dougall Conradie LLC, Portland Amanda Pease, Moss Adams LLP, Portland

Metro Portland Bryant P. Abaricia, Cobalt PC, Portland

Alicia M. Ramsey, Perkins & Co., Portland

Jonell Alvi, Deloitte LLP, Portland

Ronald L. Rawls, Oregon Department of Corrections, Salem

Shawn Ball, Foster & Associates CPA LLC, Portland

Philip Shane, Portland

Colleen M. Belford, Talbot Korvola & Warwick LLP, Portland

Angela Spieker, Portland

Glen Carney, Alten Sakai & Company LLP, Beaverton

Benjamin A. Tellin, Moss Adams LLP, Portland

Muy Chou, Boldt Carlisle + Smith a Division of SingerLewak LLP, Salem

Kelly Vingelen, Newberg

Diego De La Torre, Alten Sakai & Company LLP, Beaverton

Jake A. Zusman, Perkins & Co., Portland

Sasha N. Edwards, Irvine & Company LLC, Portland Lucas F. Ellis, Kuenzi & Company LLC, Salem Christina M. George, Bottaini Gallucci & O’Hanlon PC, Portland Deborah Gilman, Deborah Gilman CPA, Beaverton Kristen M. Guzman, Aldrich CPAs + Advisors LLP, Salem Morgan Healey, St Helens

Jennifer M. Wildermuth, Richman & Associates LLC, Portland

Mid-Columbia Ryan Boroughs, Friend & Reagan PC, The Dalles

Southern Oregon Michael S. Latham, Moss Adams LLP, Medford

Eastern Oregon Joey M. Adams, The Nichols Accounting Group PC, Ontario

Welcome student members These members joined during March, April, and May 2022.

Andrew Adamson, Hillsboro

Drew I. Knox, Salem

Amani Thrower, Portland

Tasneem Anjary, Portland

Elise N. Luke, Eugene

Andrea Torrez-Almazan, Bend

Carolyn Boyle, Bend

Lal Pian Mawii, Portland

Jonathan Trapero, Portland

Sonya E. Bristlin, Grants Pass

Tanya I. Mena, Happy Valley

Morgan N. Correa, Connected Professional Accountants LLC, La Grande

Maya Muramoto, Beaverton

Tracy Tunnell, Tonkon Torp LLP, Portland

Effiong A. Omon Jr., Fairview

Zayne T. Vacheresse, Portland

Loan H. Phan, Vancouver, WA

Chelsea M. Van Midde, Portland

Randall L. Roberts, Portland

Cristyna Wiggins, Beaverton

Samantha Roberts, Brookings

Molly J. Wildman, Springfield

Jessie S. Rogers, Albany

Alyssa Wong, Portland

Phillip L. Schneeman, Portland

Mark Workman, Portland

Ngan N. Dinh, Beaverton Olivia M. Gibson, Newberg Charletta D. Gullatt, Klamath Falls Hollie Johnson, Vancouver, WA

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• SUMMER 2022

Municipal Audit Law 101

By Amy John, CPA Oregon Secretary of State Audits Division

What is Municipal Audit Law? Annual audits of municipal corporations have been required by law since 1913. The Municipal Audit Act of 1941 brought all local governments under the present-day Municipal Audit Law, which is overseen by Oregon’s Secretary of State.

The law provides instructions for annual reports that local governments are required to submit to the Secretary (Oregon Revised Statutes 297.405 to 297.990). The law requires the Secretary, in cooperation with the Oregon Board of Accountancy and the Oregon Society of Certified Public Accountants, to prescribe the minimum standards for the conduct of each audit; these standards are published in Oregon Administrative Rule Chapter 162. Independent accountants must also follow professional auditing standards promulgated by the American Institute of Certified Public Accountants (AICPA) and issue financial reports in accordance with generally accepted accounting principles.

The reports are a mechanism to help governments be transparent and accountable to the people.

Who is subject?

There are about 1,800 local governments in Oregon, including counties, cities, school districts, fire districts, and other special districts.

While all local governments are subject to annual reporting requirements, not all are subject to an audit. Municipal Audit Law employs a three-tiered reporting responsibility: • All counties, school districts, and public charter schools are required to have their financial statements audited each year.

Local governments with total annual expenditures exceeding $500,000 are also required to be audited. Most

local governments operate on a July 1 to June 30 fiscal year to align with property tax collections and budgeting.

Audits are performed by local CPA firms and reports are to be filed with the Secretary of State by December 31.

• Local governments with total annual expenditures between $150,000 and $500,000 are not required to have an audit; instead, they may have a financial statement review performed by an independent accountant.

• Municipalities with total annual expenditures of $150,000 or less may submit reports in lieu of audit where they selfreport expenditures on forms prescribed by the Secretary of State.

To be exempt from the audit requirement, reports must be filed on time, and the principal official of the municipal corporation — or the official responsible for receiving and disbursing moneys on behalf of the municipal corporation — must be covered by a fidelity or faithful performance bond sufficient to protect the government from loss.

Financial reports filed with the Secretary of State can be accessed through the Secretary of State’s website on the municipal audit search page.

Do all states have this requirement?

Most states have a mechanism for local governments to report financial information to the state or otherwise make reports available to the public. Some states, such as Washington, have a central audit function that performs local government audits. Others require local governments to use a chart of accounts and report on forms created by the state.

Oregon requires annual reports and allows local CPA firms to perform the work, like most other states. What sets Oregon apart is the requirement that CPAs conducting audits of our local governments maintain a municipal auditor license. A

Oregon Society of CPAs • www.orcpa.org

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MUNICIPAL AUDIT LAW test is no longer required, but applicants for the license must be a CPA in good standing and apply to the Oregon Board of Accountancy after having obtained the required education hours and courses. The Oregon Municipal Roster is maintained by the board and can be viewed on their website.

While other states ask local governments to comply with state laws and rules, Oregon goes a step further — auditors must comment on compliance within the annual report. Minimum standards require auditors to perform procedures and comment on compliance with a number of factors, as they apply to the local government being audited. This includes local budget law, procurement and contracting rules, the investment of public funds, the use of highway funds, and a school district’s calculation and reporting of factors used to compute the State School Fund distribution, among others.

Municipal audit program mission Municipal Audit Law exists to promote transparency and accountability of governments to their constituents. There is even a provision in the law for residents to request a financial statement audit when one is not otherwise required.

As the administrator of the law, the Audits Division of the Secretary of State crafted the following program mission used to set priorities and guide our work.

In the interest of transparency and accountability, the Audits Division assists municipalities and auditors with understanding and complying with Municipal Audit Law. This is accomplished through: 1. Adopting and maintaining minimum standards for audits and reviews of Oregon’s local governments; 2. Ensuring adequate education, resources, and oversight exist to help local governments and their auditors comply with Oregon Statutes and professional accounting and auditing standards; and 3. Ensuring public access to, and interpretation of, accurate and complete local government financial information.

In short, the Audits Division regulates, educates, and promotes access to information.

Filing requirements and annual summary report The 2015 Legislature revised Municipal Audit Law to promote accountability. When an auditor communicates deficiencies, they are required to file a copy of the letter or report with the Audits Division of the Secretary of State. The governing body of the local government must then adopt a plan of action addressing those deficiencies. The plan must include the estimated period of time necessary to complete the actions and

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be filed with the Audits Division within 30 days of filing their audit report.

The Secretary of State also has reporting requirements.

An annual summary report of audits is prepared for the Legislature each year on or before March 1. The report includes information about each local government that filed an audit, a list of governments required to obtain an audit, information about the timeliness of filings and whether an extension was received, the number and type of deficiencies reported, and whether the entity filed the required plan of action.

The annual summary report for 2021 was released in March 2022 and can be found on the Oregon Secretary of State website.

Since that first report in 2015, we have noticed encouraging trends. More entities are filing on time; about 75% of entities filed on time or with an approved extension. More entities with reported deficiencies are filing the required plan of action; about 75% of the entities with deficiencies are filing their plan of action, compared to just over 30% in 2015.

Yet not all the trends are favorable. More entities are reporting more audit findings. I suspect this is due, in part, to more of the smaller entities crossing the threshold to require audits rather than self-prepared financial reports. In addition, many smaller entities don’t have volunteers or employees who are able to prepare financial statements or don’t have enough staff to properly segregate duties for optimal internal controls.

These two issues are the most common deficiencies noted.

Often, the governing body accepts the risks associated with these deficiencies and submits a plan of action stating they do not plan to make corrections. The law does not require a government to correct all deficiencies; the law is there to ensure elected officials take responsibility for addressing the risk and that the decision is transparent to the public.

More entities are filing extension requests. This is indicative of the challenges of the past two and a half years, including COVID-19, wildfires, ice storms, and other events. This doesn’t seem to be letting up any time soon.

There are increasing accounting and audit standards, staffing challenges, and more local governments subject to the audit requirements as their spending increases. A significant influx of federal funding to address the natural catastrophes mentioned has created more regulation and more work for everyone. The municipal audit community is over capacity and contributes to later filings. Everyone is doing their best to keep up and comply with requirements.

MUNICIPAL AUDIT LAW How to stay in compliance The Audits Division fields a lot of calls from governments worried they may not be able to find an auditor and file a timely report. While there are challenges in finding and retaining an auditor, there are several things that governments can do to be successful.

1. Know what the requirements are and keep an eye on your budget.

2. Start early. When you prepare next year’s budget, be aware of planned spending. If you’re getting close to a reporting threshold ($150,000 or $500,000), consider contracting with a licensed municipal auditor. If your current audit contract is in the last year, begin the renewal or RFP process sooner rather than later. Likely, if you’re reading this and don’t have an auditor engaged for the 2022 filing year, you’re already late. Don’t assume your current auditor will automatically renew your engagement the next year.

3. Maintain current policies and procedures that reflect actual operations.

4. Keep your books current and complete timely account reconciliations.

5. Be ready when your auditors have scheduled to be onsite or conduct fieldwork remotely. Good communication and clear expectations between the audit firm and government client can help the audit move along smoothly.

How to stay current There are many resources for local governments and auditors; it can be challenging to know where to start. If you’re reading this article, chances are you’re off to a good start as a member of the OSCPA. The OSCPA has resources available, including suggested audit programs for minimum standards procedures, and funnels related projects through the Governmental Accounting & Auditing Strategic Committee.

Auditors and finance professionals can use AICPA practice aids, reference GASB implementation guides or the GASB technical hotline, network with similar firms or government types, and utilize resources such as the GFOA checklist or the Governmental Accounting, Auditing, and Financial Reporting Blue Book.

Resources are also available through other membership organizations such as the League of Oregon Cities, Special Districts Association of Oregon, and the Oregon Government Finance Officers Association (OGFOA).

Lastly, the Audits Division maintains resources and communications. The Municipal Audit Law webpage has resources that are periodically updated as needed or requested. We

communicate with subscribers using an email list, informing them about changes in Municipal Audit Law, administrative rules, financial reporting requirements, audit standards, or changes to program forms or processes. The list is also used to communicate reminders or other items of interest related to municipal audits and annual reporting. Subscribe to “Municipal Audit Program” emails on our website.

Looking ahead Don’t hesitate to contact me if you have questions about the Municipal Audit Program or need help understanding and navigating the audit process. Our office is also interested in hearing any suggestions for improving our information, processes, and forms.

Contact Information: Amy John, CPA Oregon Secretary of State, Audits Division (503) 986-5160 Municipalfilings.sos@oregon.gov

Resources Municipal audit search page: secure.sos.state.or.us/muni/public.do Oregon Board of Accountancy: www.oregon.gov/boa/Pages/Home.aspx Oregon Secretary of State annual summary report: sos.oregon.gov/audits/Documents/2022-05.pdf GFOA checklist: www.gfoa.org/comprehensive-general-purpose-checklist Municipal audit law webpage: sos.oregon.gov/audits/Pages/muniaudits.aspx Subscribe to Municipal Audit Program emails: sos.oregon.gov/audits/Pages/default.aspx

About the author Amy John joined the Secretary of State Audits Division in 2000 as a staff auditor and has spent 20 years leading financial and federal compliance audits for a variety of state agencies and programs. During that time, she spent several years as the in-charge auditor for the Municipal Audit Program and has been managing the program since 2017. Amy is a CPA and licensed municipal auditor.

Amy has participated in the OSCPA since 2005 when she joined the Governmental Accounting and Auditing Committee and served as Committee Chair in 2012. She also served on the OSCPA Board of Directors from 2013 through 2020, serving as Chair in 2018-2019.

Oregon Society of CPAs • www.orcpa.org

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THE NEW OSCPA BRIDGE TM

Introducing the new OSCPA Bridge

TM

Your online member community has a new look and feel!

For the past 10 years, OSCPA Bridge has been the go-to resource for OSCPA members to connect on professional issues and hot topics, share insights, and seek advice.

TM

The new OSCPA Bridge online community website launched mid-July. Here are some tips for using the new site.

TM

It’s easy to get started!

To post a discussion, enter your topic under “Start a Discussion” (right below the banner).

• Enter the topic of your discussion • Write your question or comment in the post editing box • Select where you want to post the discussion, such as Open Forum or one of your group forums.

To reply to posts on OSCPA Bridge , click “Reply Privately” to reply only to the person who posted the discussion. Or, click “Reply” to send your reply to everyone in the group.

TM

1. Login to BridgeTM:

You can go directly to OSCPA Bridge by visiting https://bridge.orcpa.org/home and logging in with your OSCPA website username and password.

TM

You can also login at www.orcpa.org, and click “Bridge” on the homepage to go to the OSCPA Bridge .

TM

2. Set (or review) your profile and notification

settings:

Click on My Account > MyProfile in the blue navigation bar on the left side of the page.

From here you can upload a photo, add bio information, and select your notification settings.

3. Participate in discussions:

You can post a discussion in the OSCPA Bridge Open Forum or in other group forums that you belong to.

TM

You can also reply to messages from your Daily Digest email by clicking “Reply Privately” or “Reply to Group.”

To participate in groups you belong to or find groups that you can join: • Go to My Group Pages > My Groups to see the committees, chapters, and groups in which you are currently a member.

• Use Find Group to Join to find and join specialized group discussion forums.

We welcome your feedback!

OSCPA is committed to providing you, our members, with an exceptional user experience whenever you connect with us online. We appreciate your feedback on the new OSCPA Bridge online community. Send your comments to communications@orcpa.org.

TM

With the new OSCPA BridgeTM, you can: • Read and participate in discussions or start a new one.

• “Like” a discussion post.

• Send private messages to individuals.

14

Accounting Connect

• SUMMER 2022

• Join and connect with specialized groups.

• Participate via email. Set your notification preferences to receive email immediately or in a daily digest.

ANNUAL REPORT M A KING DR E AMS C OME TR UE

A Message from the 2022-23 Foundation Board President Dear OSCPA Members, After serving on The OSCPA Educational Foundation board for several years, I am excited and honored to serve as the 2022-23 president. I would like to thank outgoing President David Sacoolas for his guidance and leadership over the last year.

As the daughter of a CPA, I have spent my entire life in this industry. Having had wonderful role models of service in my life, I have always considered it a privilege and a right to serve and give back to others. I am honored to share my passion for accounting with others who are just beginning their professional journey.

The last few years have presented many challenges to say the least. Our profession continues to adapt to these challenges. The need for skilled accounting graduates grows as firms struggle to deal with the “Great Resignation.” Our changing environment has also created new opportunities for those entering the workforce, as firms strengthen their commitment to greater flexibility, improved technology, and employee wellbeing.

Annually in May, members of the OSCPA, educators, and friends of the profession gather to recognize Oregon’s newest CPAs, successful exam candidates, top exam scorers, and our scholarship recipients at the OSCPA Circle of Excellence awards dinner. After pausing in-person meetings due to the pandemic, it was amazing to be able to meet face-to-face for this event this past May. Since its inception in 1985, the Foundation has awarded financial aid of more than $2.5 million to over 1,400 college students who study accounting at Oregon colleges and universities as well as Washington State University-Vancouver. For many recipients, receiving a scholarship makes it possible for them to continue their education. With the current rates of inflation, education costs are rising, and the need for scholarships is even more critical.

We need your help to continue our efforts to grow and strengthen the next generation of leaders in our industry.

The scholarships we award would not be possible without the contributions of members like you. We are deeply grateful for the support provided by our generous donors over the years. Every dollar makes a difference, and we encourage you to please donate now or consider making an annual contribution when you renew your OSCPA membership.

Accounting students are the future of our profession. We hope that you will join us in our efforts to provide these students with the support they need to pursue this rewarding career.

Sincerely, Patricia (Tricia) M. Morris, CPA 2022-23 President The OSCPA Educational Foundation

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OSCPA Educational Foundation Report 2021-22

2021-22 Corporate Donors

RECOGNIZING CORPORATE DONORS Thank you for supporting The Foundation’s mission to build and sustain the accounting profession in Oregon.

Champion: $7,500+

Platinum: $5,000–$7,499

Gold: $2,500–$4,999

Silver: $1,000–$2,499 Alten Sakai & Company LLP

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RECOGNIZING INDIVIDUAL DONORS The following donors generously made contributions between July 1, 2021, and June 30, 2022.

Champion: $2,500 (or more)

Carol-Ann Simon Donald C. Warnecke

Nichols M. Cutting John P. Knox Selma I. Starns

Bronze: $100 – $249

Platinum: $1,000 – $2,499 Anthony & Elizabeth Almer Rob Douglas Nikki L. Kobliha Stephen S. McConnel Sherri L.D. McPherson Pacific Power Foundation Nelson E. Rutherford Dale W. Suran The Filkins Group Scott R. Wright

Gold: $500 – $999 Phyllis B. Barker Jack D. Birnbach Yvonne S. Blewett Harry E. Bose Thomas B. Brenneke Stanley C. Compton Douglas R. Henne Dennis C. Johnson Elise C. McGuire Rick G. Nissen Jan Ellen Pailthorp Paula J. Palmer Douglas C. Parham Jordan P. Patterson Paris E. Powell Vickie Rapp Robert M. Wynhausen Luke Zakariasen

Silver: $250 – $499 David E. Adams Jennifer A. Curran Alyce L. Dawes Frederick K. Erickson Jr. Robert G. Fligg Jared A. Holum Lonny L. Hytrek Sultan N. Khan Michael E. Lynch Patricia M. Morris

Jerrold D. Aljets Cameron W. Anderson Karen C. Anderson James E. Bisio David O. Blumhagen Leo J. Bottaini Callan Accounting CPAs & Advisors LLC James A. Carnegie Charles R. Carpenter Lyle F. Chadwick Brooke D. Clifford Stacey A. Danner Kalindi Devi-Dasi Mary F. Downs Tricia S. Duncan Janice M. Essenberg Sara L. Fagan Robert L. Faler Jan T. Fancher Mary E. Gilbert Randell C. Guyer Jr. Richard C. Hall Oren A. Hampton Michele C. Henney Vicki M. Holland Deborah J. Hollingsworth Travis Irving Amy I. John Karen L. Katzbeck Jennifer Kelson Leslie R.P. Konst Karen J. Kopplien TeriAnn Kruse Teresa L. Kunz John P. Lazo Linda W. Liebeno Jason D. Lukaszewicz Leslie A. Marbott Areena McLaughlin Kathryn M. McLaughlin Michigan Association of CPAs Robert G. Moody Jr. Shannon M. Moxley

John F. Moyer Mark F. Mueller Colleen Murray Sandra B. Obradovich Daniel M. O’Leary Jason R. Orme Kari T. Patterson Don L. Pinkham David S. Porter Katrina Z. Powell Jay H. Rathe Kenneth R. Ribb Jay Richardson James J. Rigos Janice W. Romano Joseph R. Rosevear Kenneth B. Ross Drinda Roth Sara R. Schmitz Kimberly Scott Christopher M. Selid Wayne J. Slovick Sandra A. Suran Richard E. Surroz John H. Warwick Stuart E. Weiss James S. Welch Kim L. Wilcox Lori K. Woodbury Yvonne D. Zbranak

Other: Up to $99 Cindy & Allen Adams Amazon Capital Services Anna Barnsley Werblow Kathleen L. Bernards Darlene E. Boles Nancy L. Bolton Rustin P. Brewer Paul A. Brodie Gerald W. Burns Cambia Health Foundation Wee Yuen Chin Krystal F. Davis Kristina Dougharty David G. Evans Kerrilou A. Fanger Darlien & Darrell France

Daniel & Katie Fuller Don R. Groth Georgette G. Hagerman Wesley B. Hansen Cynthia A. Harelson Sajida Hasso Tonna M. Hollis Lance Y. Inouye Allegra E. Jasper Isabel B. Johnson Bradley W. Jones Wayne S. Kaufmann Anna Mar Roy T. Matsunaga Roger W. Mills Teresa L. Mills Randall E. Mitchell Kathleen M. Murphy Ben G. Neumayer Larry A. Olson Paul J. Opperman Charles W. Parks Charles S. Rosenblum Kurt M. Sand James A. Schatzel George C. Scott James T. Searcy Martin F. Seiler William J. Sleasman Konya L. Smethers Harriet A. Strothers Allen R. Tanner Brian M. Thompson Melonie J. Waters Linda Wedul Justin J. Wolfe Samuel E. Woodell

Every effort has been made to ensure the accuracy of this list. Please contact The OSCPA Educational Foundation at 503-641-7200 / 800-255-1470 or edfound@orcpa.org to report errors or omissions.

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OSCPA Educational Foundation Report 2021-22

INVESTING IN THE PROFESSION Your partnership with The OSCPA Educational Foundation helps ensure the success of the profession for future generations.

Corporate Donor Levels Brand your business as a leader in the CPA profession, and gain year-long exposure to students and professionals.

• • • • •

Champion $7,500+ Platinum $5,000–$7,499 Gold $2,500–$4,999 Silver $1,000–$2,499 Bronze $500–$999

Pledge today! For more information and to make your pledge, contact Tonna Hollis at 503-597-5471 / 800-255-1470, ext. 129; thollis@orcpa.org.

Personal Contribution Levels Show your commitment to the future, and help keep accounting a vital option for high-achieving Oregon students.

• • • • •

Champion $2,500+ Platinum $1,000–$2,499 Gold $500–$999 Silver $250–$499 Bronze $100–$249

All contributions, whether a one-time donation or through a sustained giving option, benefit future CPAs with scholarship monies awarded to worthy Oregon students.

Make your contribution today at: www.orcpa.org/ed-foundation/contribute

Planned Giving — Consider One or More of These Options • Endowment Funds — establish your own (minimum $50,000) or contribute to an established fund • Retirement Funds • Estates • Real Estate • Life Insurance • Gift Annuities • Charitable Trusts

Established Endowment Funds • • • • • • • • • • • • • • • • •

Lynne M. Angland Memorial Endowment Stephen P. & Mayno Blanding Endowment Myron J. Fleck Endowment James B. Gaffney Endowment Robert L. Gantenbein Memorial Endowment Randell C. Guyer & Son Endowment Robert F. Isler Memorial Endowment Raymond & Marilyn Johnson Endowment Anna L. May Endowment Anna L. May 5th Year Endowment Suzanne P. McGrath Endowment Melvin T. Nygaard Endowment Jan Ellen Pailthorp Endowment Selma I. Starns & Alexander R. ‘Dick’ Bartley Endowment Alan L. Steiger Endowment Donald L. Tang Endowment The Willow Endowment

Learn more: To learn more about how to include The OSCPA Educational Foundation in your planned giving strategies, contact Tonna Hollis at 503-597-5471 / 800-255-1470, ext. 129; thollis@orcpa.org. www.orcpa.org/ed-foundation/planned-giving

5

2022-23 SCHOLARSHIP AWARDS

Tasneem Anjary

Caleb Baca

Abdiaziz Belel

Caleb Broyles

Lydia Cuff

Jared Debban

Ngan Dihn

Audrey Fu

Rahmir Hester

Caitlin Hillman

Prince Jones

Drew Knox

Trent Lawrence

Derek Leneve

Catherine Lomprey

Phuong Loveall

Adilene Uribe-Rodriguez

Thi Vo

Xiaofang Wang

Collin Weeks

Dashiel Weidman

Alexandar Wells

Allena Wong

Lucas Wright

Tasneem Anjary, Portland State University, McDonald Jacobs PC Scholarship Caleb M. Baca, Oregon State University, Merina + Co Scholarship Abdiaziz Belel, Portland State University, Deloitte LLP Scholarship Caleb M. Broyles, Portland State University, Pauly Rogers and Co PC Scholarship Lydia H. Cuff, Eastern Oregon University, OSCPA Educational Foundation Scholarship Jared M. Debban, Pacific University, OSCPA Educational Foundation Scholarship Ngan N. Dihn, Portland State University, OSCPA Educational Foundation Scholarship

Liviya D. Greer, Oregon State University, Moss Adams LLP Scholarship Brooke B. Groom, Portland State University, McDonald Jacobs (Pro-Bono) Scholarship Elizabeth Y. Harper, Pacific University, OSCPA Educational Foundation Scholarship Alexander D. Hart, University of Oregon, OSCPA Educational Foundation Roberto D. Hernandez, Portland State University, PricewaterhouseCoopers LLP Scholarship Rahmir D. Hester, Portland State University, OSCPA Educational Foundation Scholarship Caitlin E. Hillman, Linfield University, Delap LLP Scholarship

Audrey Y. Fu, University of Oregon, PricewaterhouseCoopers LLP Scholarship

Prince K. Jones, University of Oregon, PricewaterhouseCoopers LLP Scholarship

Estevan Garcia, University of Oregon, John & Catherine Knox Accounting Scholarship

Drew I. Knox, Corban University, Aldrich CPAs + Advisors LLP Scholarship

Michael A. Gebreteusae, Portland State University, Jones & Roth PC Scholarship Olga Gira, Washington State UniversityVancouver, The Willow Endowment Scholarship

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Trent J. Lawrence, Linfield University, Hansen Hunter & Co PC Scholarship Derek K. Leneve, University of Oregon, John & Catherine Knox Accounting Scholarship

OSCPA Educational Foundation Report 2021-22

Catherine L. Lomprey, University of Oregon, John & Catherine Knox Accounting Scholarship Phuong V. Loveall, University of Oregon, Perkins & Co Peter Kwong Memorial Scholarship Maya J. Muramoto, Portland State University, OSCPA Educational Foundation Scholarship Jessie S. Rogers, Western Oregon University, Grove Mueller & Swank PC Scholarship Kent E. Schoenborn, University of Oregon, John & Catherine Knox Accounting Scholarship Dylan L. Spisla, Oregon State University, Bold Carlisle + Smith a Division of SignerLewak LLP Scholarship Ethan R. Stephens, Oregon Institute of Technology, OSCPA Past Presidents & Chairs Scholarship Erika Tellez-Mendoza, Portland State University, Ernst & Young LLP Scholarship Meredith M. Thomas, University of Oregon, Deloitte LLP Scholarship William True, Corban University, Alexander R. ‘Dick’ Bartley Memorial Scholarship

This year, the foundation is pleased to award 57 university scholarships ranging from $2,000 to $4,000 and one $500 community college scholarship for a total of $149,400 to these college students as they pursue a career as a CPA:

Estevan Garcia

Michael Gebreteusae

Olga Gira

Liviya Greer

Brooke Groom

Elizabeth Harper

Alexander Hart

Roberto Hernandez

Maya Muramoto

Jessie Rogers

Kent Schoenborn

Dylan Spisla

Ethan Stephens

Erika Tellez-Mendoza

Meredith Thomas

William True

Adilene Uribe-Rodriguez, Portland State University, Selma I. Starns & Alexander R. ‘Dick’ Bartley Endowment Scholarship Thi L. Vo, Portland State University, Maginnis & Carey LLP Scholarship Xiaofang Wang, University of Oregon, John & Catherine Knox Accounting Scholarship Collin P. Weeks, Washington State University-Vancouver, Stephen P. & Mayno Blanding Endowment Scholarship

Also receiving a scholarship but not pictured: Jordan Brewer, University of Oregon, John & Catherine Knox Accounting Scholarship

Christina Meehan, Eastern Oregon University, OSCPA Educational Foundation Scholarship

Avery Bright, Oregon State University, Suzanne P. McGrath Endowment Scholarship

Nzitonda Nsengiyumva, Portland State University, Kernutt Stokes LLP Scholarship

Yasmine Cida Guzman, University of Oregon, PricewaterhouseCoopers LLP Scholarship

Rajvi Patel, Oregon Institute of Technology, Boldt Carlisle + Smith a Division of SignerLewak LLP Scholarship

Dashiel M. Weidman, Oregon State University, Talbot Korvola & Warwick LLP Scholarship

Hillary Dochow, Eastern Oregon University, Lynne M. Angland Memorial Endowment Scholarship

Alexandar Wells, University of Oregon, OSCPA Emerald Empire Chapter Scholarship

Karen I. Jackson, University of Oregon, Anna L. May 5th Year Endowment Scholarship

Allena Wong, Linfield University,

Fiston Kamana, Portland State University, KBF CPAs LLP Scholarship

Wilcox Arredondo & Co Scholarship Lucas R. Wright, University of Oregon, Fluence PC Scholarship The list of scholarship recipients represents individuals who were awarded scholarships by the Foundation at their spring selection meeting. Occasionally, circumstances change and the recipient may be disqualified or otherwise unable to accept the scholarship.

Avery Kim, Oregon State University, OSCPA Educational Foundation Scholarship

Haley R. Rager, Portland State University, Perkins & Co Scholarship Seangmey Srou, University of Portland, Perkins & Co Scholarship Merci Steagall, Portland State University, Geffen Mesher Scholarship Judy Wanjiku, Portland State University, Jones & Roth PC Scholarship

Vy Le, University of Portland, OSCPA Educational Foundation Scholarship

Duncan Welsh, University of Oregon, OSCPA Past Presidents & Chairs Scholarship

Justice A. Liberty, Portland Community College, OSCPA Educational Foundation Scholarship

Danielle K. Wisian, Portland State University, Isler Northwest LLC Scholarship

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2021–22 Board of Directors President David M. Sacoolas, CPA Deloitte LLP, Portland

President-Elect Patricia (Tricia) M. Morris, CPA Grove Mueller & Swank PC, Salem

Secretary/Treasurer Darlene E. Boles, CPA Oregon Society of CPAs, Beaverton

Directors David E. Adams, CPA Geffen Mesher & Company PC, Portland

Matthew D.T. Hilton Delap LLP, Lake Oswego

Sherri L.D. McPherson, IOM, CAE Oregon Society of CPAs, Beaverton

Amy S. Bourne, CPA-TX Oregon State University, Corvallis

James J. Jurinski, CPA-WA University of Portland, Portland

Roger W. Mills, CPA PricewaterhouseCoopers LLP, Portland

Christopher Dahlvig, CPA, MBA Linfield University, McMinnville

Nikki L. Kobliha, CPA PacifiCorp, Portland

Aaron T. Spencer, CPA Maginnis & Carey LLP, Portland

Tricia S. Duncan, CPA Jones & Roth PC, Eugene

John R. Lauseng, CPA Aldrich CPAs + Advisors LLP, Lake Oswego

Brady Twedt, PhD University of Oregon, Eugene

Katherine (Kathy) S. Haines, CPA Perkins & Co, Portland

Haley C. Lyons, CPA Kernutt Stokes LLP, Eugene

Cass Hausserman, CPA-IL, PhD Portland State University, Portland

Suzanne (Sue) P. McGrath, CPA (Inactive) Vision Capitol Management Inc, Portland

Thank You for Making Dreams Come True!

The OSCPA Educational Foundation in affiliation with the Oregon Society of CPAs PO Box 4555 Beaverton, OR 97076-4555 503-641-7200 / 800-255-1470 edfound@orcpa.org www.orcpa.org

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OSCPA Educational Foundation Report 2021-22

Taxing tokens: the CPA’s guide to NFTs

By Jeff Stimpson

Three new letters have burst onto the scene: NFTs, or nonfungible tokens. And as confusing as that is as a concept, it’s even more confusing when taxes come into play.

since the IRS hasn’t explicitly released guidance yet on NFTs. Accountants are using the current accounting guidance by analogy.”

NFTs are digital assets, essentially unique, with a growing multi-billion-dollar market. At least for the moment, the NFT market still revolves around such collectibles as digital artwork, sports cards, novelty sneakers, celebrity self-portraits, and tweets. NFTs use the same technology and have many of the same tax challenges as cryptocurrency, and, like cryptocurrency, are virtual assets that the IRS and state tax authorities are only beginning to build compliance standards around.

A recent search for “non-fungible tokens” on the IRS and the Illinois Department of Revenue websites, for instance, returned no results. A broader search on the taxability of NFTs turns up conflicting information and interpretations, though consensus is that NFTs, which are digital, will be taxed as a physical asset.

According to a 2021 Security.org survey, over 4 million people in the United States have bought or sold NFTs and 20 percent of survey respondents were familiar with NFTs — not bad for a somewhat esoteric and relatively new asset class.

“NFTs are growing in popularity and are here to stay, but most practitioners aren’t familiar with the technology or the tax rules,” says Andrew Gordon, a CPA and attorney with the Northfield, Ill.-based Gordon Law Group Ltd., and a founding director of The Blockchain Institute. (He’s also participated in creating an NFT Tax Guide as an NFT.) Because of this surge in popularity and consequent rise in regulatory attention, CPAs should wrap their heads around both NFTs as a concept and the way they should be taxed.

NFTs vs. cryptocurrency What’s most confusing right now about taxing NFTs? “Classification,” says Mark Eckerle, CPA, senior manager of technology and emerging growth and team leader of digital currency and blockchain technology with Withum. “The classification can go many different ways, and I’m sure there are gray areas where users can receive some tax advantages

Despite the lack of formal guidance on NFTs, the IRS has told news outlets that both NFTs and cryptocurrencies have the potential for “mountains of fraud.”

NFTs, like cryptocurrencies, use blockchain technology and are generally encoded with the same underlying software. But NFTs differ from cryptocurrencies in that the former contains specific and unique information. “An NFT cannot be exchanged for another NFT, unlike how cryptocurrencies are exchanged,” says Jim Brandenburg, CPA, tax partner at Sikich.

“The lack of IRS guidance is somewhat similar to the uncertainty that existed when cryptocurrency was first rolled out.”

“If you exchange one cryptocurrency for another, it’s taxable.

If you exchange or sell one NFT for another, it’s also taxable,” Gordon says, adding that some NFTs also entitle the holder to rewards or “airdrops.” “These are typically taxable as income at the fair-market value at the time received,” he notes. “This means the taxpayer may owe tax on an unsolicited airdrop even if they don’t sell for cash.”

“Buying NFTs with cryptocurrency is also a taxable event since you have a new basis in a new asset. You’ll pay tax on any realized capital gains on your cryptocurrency sale. You can also leverage any losses incurred from transactions to offset gains,” Eckerle explains.

Oregon Society of CPAs • www.orcpa.org

15

GUIDE TO NFTS Clients are often shocked to learn of the tax implications of buying and selling NFTs. “For instance, NFTs are almost always purchased with cryptocurrency,” Gordon says. “When you convert the cryptocurrency to an NFT, it’s treated as if you sold the original cryptocurrency, generating a taxable gain or loss. Additionally, when you later sell the NFT, you have another capital gain or loss to account for.”

Untangling tax treatment While NFTs are currently being framed as collectibles, it’s unclear whether the tax law on collectibles will apply to NFTs for a couple of reasons. “First, are NFTs actually similar to art or collectibles? For some NFTs, the answer is certainly yes, especially unique art NFTs,” Gordon says. “Second, the tax law on collectibles refers to ‘other tangible property,’ but NFTs aren’t tangible. Therefore, a strict reading of the tax law would make it seem that a collectible must be tangible.

However, a looser reading while considering Congress’ intent would likely be that NFTs can be collectibles. I expect that we’ll get clarity from the IRS or Congress on whether NFTs are collectibles soon.”

Gordon notes that NFTs currently follow the general tax rules on property, so sales or exchanges of NFTs would be subject to short-term or long-term capital gains tax depending on the holding period. If they’re deemed collectibles, NFTs would carry a 28 percent top federal tax rate on long-term capital gains, according to tax experts. That’s opposed to the 20 percent top federal rate that applies to long-term capital gains on stocks, bonds, and cryptocurrencies such as bitcoin. Under “rare circumstances,” Eckerle says, NFTs can be classified as “inventory” subject to income tax rates.

Additionally, NFT transactions come in what Brandenburg calls “many formats.” Some offer full transfer of all rights of the underlying digital assets linked to the NFT, while others offer limited transfer of rights. “There are separate platforms, each with unique features and provisions, and varied processes for NFTs that are ‘minted,’ a process where the NFT is connected to a digital asset, which is often warehoused separately,” Brandenburg explains.

“Each of these steps and processes, each on different platforms, creates questions on the appropriate federal tax treatments,” he says. “Might the NFT transaction be treated like a leasing arrangement, a royalty, or might it qualify as a sale or exchange? If it’s a sale or exchange, does it qualify for favorable capital gain treatment? If it’s a capital gain, could some of the NFT transactions be treated as collectibles and subject to the higher capital gains rate? How should the NFTs that are minted be handled for tax purposes? What other federal tax rules might be applied for NFTs that are now in place for

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• SUMMER 2022

computers, software, and digital assets?”

Complex international and foreign tax issues can also apply, and state tax consequences of NFTs will need to be dealt with, especially as the IRS unveils new guidance.

“For instance, where should NFT transactions be sourced for state tax purposes? This can be a complex matter, and again could vary depending on the specific terms in an NFT contract, its platform, and other factors,” Brandenburg says.

“Hopefully, states will work together to have a consistent set of rules from one to another, but it may take a while to sort out all these issues.”

Educating clients Count on it: Clients are going to start arriving with questions.

Brandenburg says CPAs and other tax practitioners should understand and educate clients on: • NFTs’ functions, basic features, and underlying terms • Major players in the NFT space • Existing NFT platforms and how they differ, as well as alternative ways to create NFTs • How one can invest in NFTs • How one can distinguish themselves in the NFT marketplace Brandenburg expects more continuing professional education opportunities on the topic of NFTs will start to crop up.

Congress recently expanded the reporting requirements on cryptocurrencies in the Infrastructure Investment and Jobs Act, and the IRS is expected to provide additional guidance on implementing this new law later this year, which could include some insights on taxing NFTs. “Even once IRS guidance is issued, impacted parties and tax practitioners may have different views on the guidance and suggest changes,” Brandenburg cautions. “They may also look at new features in NFTs to develop better tax treatments.”

Above all, don’t expect this new technology to just vanish into the ether: “The metaverse and NFTs are growing in popularity and are here to stay,” Gordon says. “CPAs that stay ahead of the curve will be able to deliver high-value advice and stake a claim to a nascent market.”

Reprinted courtesy of Insight, the magazine of the Illinois CPA Society. For the latest issue, visit www.icpas.org/insight.

About the author Jeff Stimpson is a New York-based writer covering tax concerns for more than 20 years for various industry publications, including Accounting Today and Financial Advisor.

Retirement Plans: A Benefit that Works for Your Clients and Their Employees With the search for good people becoming increasingly competitive, many businesses are turning to better benefits as a differentiator. Consider a 401(k) Pooled Employer Plan (PEP): • Simplified administration and enrollment assistance • Reduced fiduciary responsibilities and liability • Improved recruitment and retention

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Paychex is proud to be the preferred provider of payroll services for the OSCPA © 2022 Paychex, Inc. All Rights Reserved. | 04/25/2022

Oregon Society of CPAs • www.orcpa.org

17

OSCPA NEWS

InfoBites

Save the date: Not-for-Profit Knowledge Networks return!

Earn complimentary CPE with Knowledge Networks Knowledge Networks offer a great opportunity to explore important professional topics in one-hour informal discussions with experts and peers — and to obtain valuable CPE.

InfoBites is designed for young professionals with up to five years of experience and provides relevant accounting information to help you learn and grow personally and professionally.

Earn an hour of CPE credit for each program you attend.

InfoBites: Imposter Syndrome – #W66443 [NT]

The OSCPA Not-for-Profit Strategic Committee has seven knowledge networks in production. Mark your calendar and watch your inbox for more details!

• September 23, 2022

• Wednesday, September 7, 2022 • Wednesday, October 5, 2022 • Wednesday, November 2, 2022 • And more All programs begin at 8:00 a.m. Virtual and in-person attendance options available.

InfoBites: Stress Management & Self Care – #W66293 [NT]

Questions? Contact Professional Development at 503-641-7200 / 800-255-1470, ext. 3; profdev@orcpa.org

InfoBites: Advanced Excel Tips – #W73068 • October 19, 2022

• November 15, 2022 Member Fee: Complimentary / Nonmember: $20 Register: www.orcpa.org/InfoBites Questions? Contact OSCPA at 503-641-7200 / 800-255-1470, ext. 3; profdev@orcpa.org

OSCPA Career Center — Career advancement made easy OSCPA Career Center helps employers and job seekers find each other. Now through August 31, 2022, post a single, three, or five 30-day job postings using SUMMER22 to receive 25% off. Good for up to two uses per employer. Offer also valid for 30-day Featured Employer posting.

November 2-3, 2022 – #A22005 Now more than ever, leaders in the profession need to provide high-quality staff development opportunities that will help rising stars take the next step in their careers.

2022 OSCPA Leadership Academy Leadership Excellence Advancing ProfessionalsTM (LEAPTM) 18

Accounting Connect

The OSCPA Leadership Academy is the opportunity you’ve been waiting for!

With several years of experience growing their technical skills in place, it’s now time for advancing professionals to build their management skills, enhance their communications know-how, and develop their leadership potential. The two-day, members-only, OSCPA Leadership Academy is designed to do just that.

LEAP™ is developed by the OSCPA Leadership Development Strategic Committee specifically for OSCPA members.

Is your rising star not yet a member?

Sign them up today! www.orcpa.org/join

• SUMMER 2022

OSCPA NEWS Save the date: Exploring Licensure & the CPA Exam October 24, 2022 – Webcast – #C22008

OSCPA Fall Basketball League

Member Fee: Complimentary Nonmember Fee: $20 Those looking to apply to take the Uniform CPA Exam and/or apply for their CPA licensure in Oregon are encouraged to attend the dynamic presentation by the Oregon Board of Accountancy (BOA) and AICPA. BOA will provide an overview of the licensure application process in Oregon, while AICPA will provide an overview of the Uniform CPA Examination and best study practices to help you prepare for the Exam.

Basketball is back! Gather your team together for the OSCPA Fall Basketball League at Beaverton Hoop YMCA. The league is limited to eight teams and 50% of your team must be your company’s employees. The season begins on September 13 and runs through October 18 with a single-elimination tournament.

This is a great way to build camaraderie among peers as well as network with other CPAs.

Register: www.orcpa.org/event/C22008

To register and review league requirements, please visit: www.orcpa.org/event/A22008

Questions? Contact OSCPA at 503-641-7200 / 800-255-1470, ext. 4; membership@orcpa.org

Questions? Contact OSCPA at 503-641-7200 / 800-255-1470, ext. 4; memberhsip@orcpa.org.

OSCPA office closed for holiday

Financial audit available The annual financial audit for fiscal year 2021–22 is complete.

For more information, contact Darlene Boles, CPA, Director of Finance & Business Services, at 503-597-5470 / 800-255-1470, ext. 117; dboles@orcpa.org.

The Society office will be closed on Monday, September 5, 2022 in observance of Labor Day.

Annual drawing with Surgent CPA Review Enter a drawing to win one full, four-part scholarship (a $1,599 value) from Surgent! Only OSCPA student and CPA Candidate members are eligible to enter.

Enter between August 1 and September 20, 2022.

Visit: www.orcpa.org/news-resources/482/article

Save the date: Career Showcase Meet students and candidates in person on September 29, 2022! This annual recruiting event is your opportunity to meet your future interns face-to-face. Hosted at the Oregon Convention Center, OSCPA is inviting students and recent college graduates from all over Oregon and southwest Washington to meet firm and business representatives and learn about internships and employment opportunities.

Employers: To register as an exhibitor, please visit www.orcpa.org/event/C22002 Students and candidates: To register to attend, please visit www.orcpa.org/event/C22007 Questions? Contact OSCPA at 503-641-7200 / 800-255-1470, ext. 4; membership@orcpa.org

Oregon Society of CPAs • www.orcpa.org

19

OSCPA NEWS

Celebrating

the accounting profession OSCPA members and honorees along with family and friends gathered for an in-person celebration on May 12, 2022. This was the first major social event the Society has held since the beginning of the pandemic. It was amazing to be back together with over 150 people in attendance to celebrate the CPA profession.

OSCPA Chair Geoff Dougall was the master of ceremonies for the event. OSCPA Educational Foundation President David Sacoolas recognized top accounting students and the Foundation’s 2022 fall scholarship recipients. Guest speakers Nancy Oliver-Young, Chair of Oregon Board of Accountancy, and Jason Robinson, Treasurer of Oregon Board of Accountancy, helped OSCPA recognize individuals who passed the CPA exam and newly licensed CPAs.

Congratulations to OSCPA Educational Foundation scholarship recipients.

Please visit: www.orcpa.org/2022-Circle to view the video compilation, photos, and honoree lists.

OSCPA honors and appreciates members celebrating membership milestones.

OSCPA celebrates Educational Foundation scholarship recipients and top accounting students.

McKenzy Starns, the third-highest exam scorer in Oregon.

OSCPA Chair Geoff Dougall with 2021-22 OSCPA Educational Foundation President David Sacoolas.

OSCPA Chair Geoff Dougall with top accounting student Purity Maina and Dr. Latrissa Neiworth of Bushnell University.

Kudos to successful exam candidates who were recognized.

20

Accounting Connect

• SUMMER 2022

OSCPA NEWS

OSCPA leaders navigate the profession at the 2022 Strategic Leadership Forum OSCPA leaders met May 3-4 for the Strategic Leadership Forum, designed to give Society volunteers the knowledge and training to continue leading and thriving in a rapidly changing world.

Headlining this year’s program, the Forum’s internationally recognized keynote speaker was Hamish Taylor, an awardwinning CEO and inspirational speaker/broadcaster. Hamish led four interactive sessions focused on the umbrella theme: Your success is not about you! Participants gained insights on engaging with customers and adapting to the rapidly changing world around them.

Newly installed 2022-23 OSCPA Chair Geoffrey Dougall led the first Board of Directors meeting of the year, while Past Chair Charles Mello reviewed the previous year at the OSCPA Annual Meeting.

Rob Douglas, OSCPA Legislative Counsel, gave an overview of the Society’s legislative activities in Salem, noting the work of OSCPA volunteers in reviewing bills and providing testimony during the 2022 Oregon legislative session. OCPA/ Legislative Action Committee Chair Jay Richardson shared the committee’s important role as a resource to various legislative committees and lawmakers on behalf of members.

Tracey Golden, CPA, CGMA, and past chair of the AICPA, provided a Professional Issues Update on the latest topics impacting the profession and the pipeline. Golden has been recognized for her experience and leadership in the accounting profession and presents at many AICPA and state CPA society conferences.

Mindful of the pipeline, three of the profession’s emerging leaders, identified by their employers, attended the annual conference. See “Kudos & accomplishments,” on page 7, for the list of this year’s rising stars.

2020-21 AICPA Board of Directors Chair Tracy Golden, 2022-23 OSCPA Chair Geoffrey Dougall, 2020-21 Chair Selene Sullivan, 2021-22 Chair Charles Mello, and OSCPA President/CEO Sherri McPherson.

Chair Geoffrey Dougall recognizes Past Chair Charles Mello for his service as board chair.

Attendees enjoy a night of games and prizes at Tuesday evening‚ social: “Experience the Roaring 1920s.”

Keynote speaker Hamish Taylor's sessions engaged participants in interactive workshops.

Oregon Society of CPAs • www.orcpa.org

21

OSCPA - Half Page Ad.indd 1

6/1/22 4:50 PM

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Filing tax returns is a service a CPA provides, but it shouldn’t be the only one.

The complexity of business today means your clients need a partner that considers all facets of their business, from hiring strategies, to retirement plans, to succession planning, and beyond. When they’re ready to think beyond the tax return, give us a call.

Expect more from your CPA. Get more with Kernutt Stokes.

Bend | Corvallis | Eugene | Lake Oswego kernuttstokes.com | (541) 687-1170

22

Accounting Connect

• SUMMER 2022

PROFESSIONAL DEVELOPMENT

August-November 2022 OSCPA-Select™ CPE Calendar Upcoming in-person and livestream webcast courses OSCPA continues to monitor local, state, and federal guidelines to responsibly and thoughtfully implement safety protocols to provide everyone with a safe, enjoyable onsite experience for our in-person events, which we are excited to offer again in 2022.

Register early to secure your seat at in-person events. Can’t attend in-person? Experience OSCPA livestream events from the comfort of your home or office.

Date

Course Title

Location

Member Fee

Nonmember Fee

August 2022 Aug 04

How Accountants Create Value via ESG (4 hours - morning) – NEW! – Webcast – #W69049

Online

$189

$239

Aug 11

A Closer Look: Oregon's Pass-Through Entity Elective Tax (PTE-E) (2 hours - morning) – NEW! – Webcast – #W73069

Online

$49

$69

Aug 11

A Closer Look: Metro SHS and Multnoma County PFA Taxes (2 hours - late morning) – NEW! – Webcast – #W73070

Online

$49

$69

Aug 18

Leading/Succeeding in a Hybrid Environment (1 hour - morning) [NT] – Webcast – #W66393

Online

$0

$15

September 2022 Sep 13

Advanced Controller and CFO Skills [NT] – Webcast – #W66394 *(AICPA members: take a $30 discount)

Online

$299*

$374*

Sep 16

Critical Issues That CPAs in Industry Will Need to Face This Year (4 hours - morning) – Webcast – #W66395

Online

$189

$239

Sep 20

FASB Update for Small and Medium-Sized Businesses: A Practical Implementation Guide – Webcast – #W73072

Online

$259

$309

Sep 22

2022 Oregon Ethics Update (4 hours - morning) – Webcast – #W66396

Online

$179

$229

Oct 17

Working Paper Documentation (2 hours - late morning) – Webcast – #W73073

Online

$79

$94

Oct 18

Business & Industry Conference – #11015

Beaverton

$299

$374

Oct 18

Business & Industry Conference – Webcast – #W66297

Online

$299

$374

Oct 19

Estate Planning for 2022 & Beyond: Oregon & Washington Issues – #11052

Beaverton

$299

$374

Oct 19

Estate Planning for 2022 & Beyond: Oregon & Washington Issues – Webcast – #W66397

Online

$299

$374

Oct 20

The Complete Guide to Oregon Death Taxation – #11053

Beaverton

$299

$374

Oct 20

The Complete Guide to Oregon Death Taxation – Webcast – #W66398

Online

$299

$374

Oct 21

Form 990: Best Practices for Accurate Preparation – Webcast – #W73074 *(AICPA members: take a $30 discount)

Online

$259*

$309*

Oct 24-25

Northwest Federal Tax Conference™ (2 days) – #11016

Beaverton

$529

$629

Oct 24-25

Northwest Federal Tax Conference™ (2 days) – Webcast – #W66298

Online

$529

$629

Oct 26

Basis, At-Risk, Passive Activity Loss, §163(j), Excess Losses (§461(I)) and NOLs – Webcast – #W66399

Online

$299

$374

Oct 27

International Taxation – Webcast – #W73075 *(AICPA members: take a $30 discount)

Online

$259*

$309*

Oct 27

Oregon Ethics and New Developments (4 hours - morning) – Webcast Replay – #W66400

Online

$179

$229

Oct 28

IRS/Practitioners Forum – #11017 *Early Registration Fee (Register by 10/3/22 = $135)

Portland

$150*

$150*

Oct 28

IRS/Practitioners Forum – Webcast – #W66299 *Early Registration Fee (Register by 10/3/22 = $110)

Online

$125*

$125*

October 2022

Oregon Society of CPAs • www.orcpa.org

23

PROFESSIONAL DEVELOPMENT

Date

Course Title

Location

Member Fee

Nonmember Fee

Beaverton

$299

$374

Online

$299

$374

Beaverton

$459

$559

Online

$459

$559

Beaverton

$299*

$374*

November 2022 Nov 01

Cutting Edge Tax Strategies for Real Estate – #11054

Nov 01

Cutting Edge Tax Strategies for Real Estate – Webcast – #W66401

Nov 07-08

2022 Federal Tax Update (2 Days) – NEW! – #11055

Nov 07-08

2022 Federal Tax Update (2 Days) – NEW! – Webcast – #W66402

Nov 09

Annual Update for Accountants and Auditors – #11056 *(AICPA members: take a $30 discount)

Nov 09

Annual Update for Accountants and Auditors – Webcast – #W66403 *(AICPA members: take a $30 discount)

Online

$299*

$374*

Nov 10

Oregon Ethics and New Developments (4 hours - morning) – #11057

Beaverton

$179

$229

Nov 10

Oregon Ethics and New Developments (4 hours - morning) – Webcast – #W66404

Online

$179

$229

Nov 11

Financial & Retirement Planning Conference – #11018

Beaverton

$299

$374

Nov 11

Financial & Retirement Planning Conference – Webcast – #W66300

Online

$299

$374

Nov 14

Breaking Down the New Auditors’ Reporting Suite of Standards for Non-ERISA Plan Private Entities – NEW! – Webcast – #W66405 *(AICPA members: take a $30 discount)

Online

$299*

$374*

Nov 18

Oregon Ethics for CPAs (4 hours – morning) – Webcast – #W66406

Online

$179

$229

Nov 21

Year-End Tax Planning: Thinking Outside the Box – #11059

Beaverton

$299

$374

Nov 21

Year-End Tax Planning: Thinking Outside the Box – Webcast – #W66407

Online

$299

$374

Nov 22

Key Tax Issues for Business and Industry – #11060

Beaverton

$299

$374

Nov 22

Key Tax Issues for Business and Industry – Webcast – #W66408

Online

$299

$374

Nov 29

Walter Haig’s Prep, Comp & Review Standards Update – #11062

Beaverton

$315

$390

Nov 29

Walter Haig’s Prep, Comp & Review Standards Update – Webcast – #W66409

Online

$315

$390

Nov 29

The Best Federal Tax Update Course by Surgent – Eugene – #11061

Eugene

$309

$384

Nov 30

Oregon Ethics and New Developments (4 hours - morning) – Webcast Replay – #W66411

Online

$179

$229

Nov 30

The Best Federal Tax Update Course by Surgent – Bend – #11063

Bend

$309

$384

Nov 30

The Best Individual Income Tax Update Course by Surgent – Medford – #11064

Medford

$309

$384

Nov 30

Walter Haig’s GAAP for SMEs, Tax & Cash Frameworks Update – #11065

Beaverton

$315

$390

Nov 30

Walter Haig’s GAAP for SMEs, Tax & Cash Frameworks Update – Webcast – #W66410

Online

$315

$390

Register: www.orcpa.org/online-catalog and enter the event number.

Questions? Contact OSCPA at 503-641-7200 / 800-255-1470, ext. 3; profdev@orcpa.org.

24

Accounting Connect

• SUMMER 2022

PROFESSIONAL DEVELOPMENT Participate in the annual CPE survey Your input is essential to our mission to bring you the best in continuing education. Your feedback helps determine what topics will be offered in the 2023-24 OSCPA-Select™ curriculum.

Take the survey: www.surveymonkey.com/r/2023CPE | Survey opens by July 25, 2022.

Questions? Contact Tonna Hollis, Director, Professional Development, at thollis@orcpa.org; 503-641-2700 / 800-255-1470, ext. 129.

Check this off your list

Take the survey by August 12, 2022, for a chance to win a free OSCPA-Select™ 8-hour course!

Convenient on-demand CPE? Check.

On-demand CPE gives you the flexibility you need to maximize your time. Gain access to convenient learning option packages at special member savings through our partnerships with Surgent CPE and AICPA.

To order on-demand/self-study CPE packages, visit: www.orcpa.org/online-catalog and click the On-Demand / Self-Study tab

Oregon-specific ethics required for ALL active and inactive Oregon Licensees.

Oregon Ethics and New Developments (4 hours - morning) • October 27, 2022 – Webcast Replay* – #W66400 • November 10, 2022 – In-person – OSCPA Center, Beaverton – #11057 • November 10, 2022 – Webcast – #W66404 • November 30, 2022 – Webcast Replay* – #W66411 • December 28, 2022 – Webcast Replay* – #W66420 • January 20, 2023 – Webcast Replay* – #W66430 CPE: 4 / Level: 4 (Update) Producer: Mark Hugh PLLC *Webcast Replay Producer: ACPEN & Mark Hugh PLLC

2022 Oregon Ethics Update (4 hours - morning) • September 22, 2022 – Webcast – #W66396 CPE: 4 / Level: 1 (Basic) Producer: Galasso Learning Solutions LLC

Oregon Ethics for CPAs (4 hours - morning)

Register Today!

• November 18, 2022 – Webcast – #W66406 CPE: 4 / Level: 2 (Intermediate) Producer: Surgent CPE

Professional Conduct & Ethics - AICPA and Oregon Board CPA Regulatory Update by Jim Rigos (4 hours - morning) • December 13, 2022 – In-person – OSCPA Center, Beaverton – #11072 • December 13, 2022 – Webcast – #W66414 CPE: 4 / Level: 4 (Update) Producer: Rigos Professional Education Programs, Ltd Note: These courses meet the Oregon Board of Accountancy's biennial four-hour Oregon-specific ethics requirement.

2022-23 OSCPA Professional Conduct & Ethics CPE courses are available in the online catalog!

For more information and to register: www.orcpa.org/online-catalog and enter the event number.

Questions? Contact OSCPA at 503-641-7200 / 800-255-1470, ext. 3; profdev@orcpa.org.

For the most current Oregon Administrative Rules (OARs), refer to the BOA website: https://tinyurl.com/OR-BOA-Rules.

Oregon Society of CPAs • www.orcpa.org

25

CLASSIFIEDS PURCHASE/SALE/MERGER CONSIDERING THE SALE OR PURCHASE OF A PRIVATE PRACTICE? As the preeminent provider of business brokerage and consulting services in the Northwest, we work exclusively with owners of professional practices in the legal, healthcare, financial services and tech industries. Need to prepare your practice for sale? Looking for a business valuation? Ready to sell your practice for top dollar? Let our team guide you through this life changing transition. Call us at 253.509.9224 or visit our website to learn more about our services and top-notch team waiting to help you: PrivatePracticeTransitions.com

TRUSTED SEATTLE TAX AND ACCOUNTING FIRM (WA 1135): Private Practice Transitions is assisting a client in Seattle, Washington with the sale of a busy tax firm. The Practice’s service by revenue breakdown is 94% Tax Preparation, 3% Consulting, 2% Financial Statement Review and 1% Bookkeeping. In 2020, the Practice reached an impressive gross revenue of $694,920. Owner is willing to provide transition assistance and help with goodwill transfer, business development, and other “mentoring” functions for an agreed-upon period of up to two years to ensure new owner’s ROI is realized. With a dedicated staff, an outstanding reputation and proven YoY growth, this is a great opportunity for any buyer. To learn more, call 253.509.9224 or email info@privatepracticetransitions.com.

CPA TURNKEY OPPORTUNITY IN OREGON-IDAHO TREASURE VALLEY (1136): Private Practice Transitions is assisting in the sale of a long-established, highly profitable CPA Firm located in the Western Treasure Valley of Oregon and Idaho. The firm’s two largest revenue streams are from Income Tax Preparation (48%) and Bookkeeping/Payroll (32%). The rest is made up of Management Advisory, Reviews, and Compilations. The Practice has shown increasing revenues year-over-year even during the COVID-19 pandemic. With average gross revenues (2018-2020) of nearly $465,000 and ~430 active clients, the firm is poised to have another successful year. There are currently four staff including the owner who is willing to provide transition assistance for up to a year to help ensure the new owner’s success. This firm is a turnkey opportunity for the right buyer. For more information, call us at 253.509.9224 or send an email to info@privatepracticetransitions.com, with “#1136 / CPA Turnkey Opportunity in Oregon-Idaho Treasure Valley” in the subject line.

KITSAP COUNTY TAX AND ACCOUNTING FIRM (WA 1150): Established in 1979, this Washington tax and accounting firm is highly respected in the greater Kitsap County community. The Practice has developed good long-standing relationships with local law firms that have proven to be terrific referral sources. The Practice’s service by revenue breakdown is 80% Tax Preparation and Planning, and 20% Accounting and Bookkeeping. In 2021, the Practice brought in approximately $820K in gross receipts. The Practice has nine loyal staff members proudly serving its 1,222 active clients. With dedicated staff and proven YoY growth, this is one opportunity you don’t want to miss. If interested, call 253.509.9224 or email info@privatepracticetransitions.com.

PROFITABLE KING COUNTY TAX AND ACCOUNTING FIRM (WA 1155): Established in 2009, this tax and accounting firm is a one-stop shop for all tax and accounting services. The Practice owes its success to its established name, loyal clients, and collaborative staff amenable to helping the Practice continue to thrive. The Practice’s service by revenue breakdown is 68% Tax Services, and 32% Accounting and Controlling. In 2021, the Practice brought in an impressive $5,126,147 in gross receipts. Of its ~2,424 active clients, ~500 are business client groups and ~1,924 are a mixture of high-net-worth individuals, young professionals, investors, and community leaders. The Practice has incredible workflow efficiency, is entirely paperless, uses cloud-based software, and has an efficient remote working environment. With a great reputation and such a robust client base, this is an excellent opportunity for any buyer. If interested, call us at 253.509.9224 or, send an email to info@privatepracticetransitions. com, with “1155 Profitable King County Tax and Accounting Firm” in the subject line.

SUCCESSFUL TAX AND ACCOUNTING FIRM IN SOUGHT-AFTER CLARK COUNTY, WA (1166): For over 29 years, this Washington tax and accounting firm has offered a wide range of tax and accounting services to both business and individual clients. The Practice’s service by revenue breakdown is 58.8% Tax Prep and 42.8% Accounting. The Practice has experienced year-over-year growth each of the last two years with an incredible 19.6% increase from 2018-2019 and a 6.7% increase from 2019-2020 even amidst the pandemic. The owners are willing to provide transition assistance and help with goodwill transfer, business development, and other “mentoring” functions for an agreed-upon period of up to one year to ensure the new owner’s return on investment is realized. To learn more, call 253.509.9224 or email info@privatepracticetransitions.com.

26

Accounting Connect

• SUMMER 2022

KING COUNTY TAX AND ACCOUNTING FIRM WITH INCREDIBLY HIGH SDE (WA 1170): For 28 years, this firm has provided tax, accounting, and financial services to countless clients. The Practice’s service by revenue breakdown is 74% Tax, 20% Accounting, and 6% Financial and Consulting. The Practice is known for its incredible staff who continually deliver excellent customer service to its ~1500 active clients. The Practice has an incredibly high percentage of seller’s discretionary earnings (SDE) to revenue (57%) which makes this a lucrative opportunity for any buyer. The weighted projected gross revenues are over $1M with over $575,000 in SDE. To learn more, call 253.509.9224 or email info@ privatepracticetransitions.com.

SUCCESSFUL KING COUNTY TAX AND ACCOUNTING FIRM (WA 1174): Established in 2003, this King County tax and accounting firm is highly respected in the community and prides itself on providing top-notch personalized customer service. The Practice’s service by revenue breakdown is 68% Tax Services, 26% Accounting Services, 3% General and 3% Consulting Services. As of September 2021, the Practice has approximately 804 active clients and four dedicated staff. Over the past three (3) years, the Practice has averaged gross revenue of approximately $979,355 (2019-2021). Additionally, the Practice has experienced year-over-year (YoY) growth each of the last three years! With impressive revenues, stellar SDE, and YOY growth, this is one opportunity you don’t want to miss. To learn more, call 253.509.9224 or email info@privatepracticetransitions.com.

CLACKAMAS COUNTY CPA FIRM SELLING 30% OWNERSHIP (WA 1178): Established in 1954, this CPA Practice has provided tax preparation and planning, and other accounting services to countless clients. The Practice is owned by three partners, one of which is looking to retire. The remaining two Partners will stay on as 35% owners each, and they are looking for a third Partner to buy in at 30% ownership. The Practice receives a lot of word-ofmouth referrals and has incredibly high client retention. As of September 2021, the Practice has already exceeded 2020 revenues with YTD gross revenues over $1,015,000. The retiring partner is willing to stay on as a consultant through the end of 2022 if desired. For more information, call 253.509.9224 or email info@privatepracticetransitions.com.

PROFITABLE SOUTH KING COUNTY TAX AND ACCOUNTING PRACTICE (WA 1180): Established in 1985, this south King County tax and accounting firm has become well-known for its integrity, service, and reputation for going above and beyond for each client. The Practice’s service by revenue breakdown is 59% Tax, 24% Controller Services, 13% Bookkeeping, 2% Financial, and 2% Other. As of November 2021, the Practice has approximately 413 active clients comprised of ~80% individuals and ~20% businesses. Over the past three years (2018-2020), the Practice has averaged gross revenue of approximately $475,000. The Practice employs three (3) full-time employees and two (2) part-time/seasonal employees, including the Owner. The Practice is stable, profitable, and poised for growth under new ownership. To learn more, call 253.509.9224 or email info@privatepracticetransitions.com.

100% VIRTUAL BOOKKEEPING PRACTICE (WA 1196): For 23+ years, this Washington Practice has offered bookkeeping and consulting services to several small business clients. The Practice’s success can largely be attributed to its established name, trusted referral partners, and loyal long-standing clients. The Practice’s service by revenue breakdown is 80% Bookkeeping and 20% Consulting. Over the past three (3) years, the Practice has averaged gross revenue of approximately $131,937 (2019-2021). The5/ Owner works part-time (~ 25 hours per week) and has one hourly employee who also works part-time (~ 14 hours per week). This virtual Practice is going to go fast. If interested, call 253.509.9224 or email info@privatepracticetransitions.com, with “1196 100% Virtual Bookkeeping Practice” in the subject line.

Call Today...

Sell By Year End!

Delivering Results - One Practice At a time 877-632-1040

www.APS.net

Oregon Society of CPAs • www.orcpa.org

35

OREGON SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS PO Box 4555 Beaverton, OR 97076-4555 ADDRESS SERVICE REQUESTED

Fall & Winter Conferences Business & Industry Conference

• October 18, 2022 – In-person – OSCPA Center, Beaverton – #11015 • October 18, 2022 – Webcast – #W66297 CPE: 8 / Level: 4 (Update) / Producer: OSCPA

Northwest Federal Tax Conference™ (2 days)

• October 24-25, 2022 – In-person – OSCPA Center, Beaverton – #11016 • October 24-25, 2022 – Webcast – #W66298 CPE: 16 / Level: 4 (Update) / Producer: OSCPA

IRS / Practitioners Forum

• October 28, 2022 – In-person – Embassy Suites by Hilton Portland Washington Square, Tigard – #11017 • October 28, 2022 – Webcast – #W66299 CPE: 8 / Level: 4 (Update) / Producer: IRS, OAIA, OATC, ORSEA, OSB-TS, OSCPA, OSTC

Financial & Retirement Planning Conference

• November 11, 2022 – In-person – OSCPA Center, Beaverton – #11018 • November 11, 2022 – Webcast – #W66300 CPE: 8 / Level: 4 (Update) / Producer: OSCPA OSCPA continues to monitor local, state, and federal guidelines to responsibly and thoughtfully implement safety protocols to provide everyone with a safe, enjoyable on-site experience for our in-person events, which we are excited to be offering again in 2022-23.

2022 OSCPA Professional Issues Update (4 hours - morning) – 3 Tech & 1 [NT]

• December 2, 2022 – In-person – OSCPA Center, Beaverton – #11019 • December 2, 2021 – Webcast – #W66301 CPE: 4 – 3 Tech & 1 [NT] / Level: 4 (Update) / Producer: OSCPA

State & Local Tax Conference

• January 6, 2023 – In-person – Oregon Convention Center, Portland – #11020 • January 6, 2023 – Webcast – #W66302 CPE: 8 / Level: 4 (Update) / Producer: OSCPA

Tax Advisors Update featuring John Werlhof

• January 17, 2023 – In-person – Oregon Convention Center, Portland – #11084 & Webcast – #W66427 • January 18, 2023 – In-person – Graduate Eugene, Eugene – #11085 & Webcast – #W66428 CPE: 8 / Level: 4 (Update) / Producer: CliftonLarsonAllen LLP

Winter Governmental Auditing & Accounting Conference

• January 23, 2023 – In-person – OSCPA Center, Beaverton – #11021 • January 23, 2023 – Webcast – #W66303 CPE: 8 / Level: 4 (Update) / Producer: OSCPA

Register: www.orcpa.org/online-catalog and enter the event number.

Group & Volume Discount Webcast Viewing Options: Forms are available for both viewing options at www.orcpa.org/cpe-oscpa-events/conferences.

Questions? Contact Professional Development at 503-641-7200 / 800-255-1470, ext. 3; profdev@orcpa.org

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Accounting Connect

• SUMMER 2022