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CPA Report South Carolina Association of Certified Public Accountants

ECONOMIC OUTLOOK: The South Carolina Tourism Industry

PLUS Despite Effects of Estate Tax Relief, Trust Remains Attractive Planning Tool

Accounting and the Arts

Will the United States Ever Accept IFRS?


2430 Mall Drive, Suite 360



Charleston, SC 29406



South Carolina CPA Report

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CPA Report South Carolina Association of CPAs

South Carolina Association of Certified Public Accountants Magazine Volume 41, Fourth Edition 2011 Officers Timothy L. Baker, CPA, President Michael R. Putich, CPA, President-elect Sharon E. Mann, CPA, Vice President Malynda M. Grimsley, CPA, Secretary-Treasurer Charles E. “Eddie” Brown, CPA, Past President BOARD OF DIRECTORS William R. Barefoot, CPA Patrick P. Carey Jr., CPA Clarence Coleman Jr., CPA, Ph.D. Alys Anne Dennis, CPA J. Bratton Fennell, CPA Cheryl O. Lang, CPA Penny A. Lewis, CPA A.D. “Dave” Masters, CPA J. Patrick McDermott, CPA James W. McIlrath, CPA Philip R. Snipes, CPA Michael J. Targia, CPA, CFA Robert M. Tilton, CPA Beth T. Zamorski, CPA EXECUTIVE DIRECTOR Erin P. Hardwick, CAE MANAGING EDITOR Maureen Taylor GRAPHIC DESIGNER Lisa S. McGee Contributing writers April Blake Reva Brennan, MPA, CAE, IOM Amanda S, Colgate, CPA John L. Daly, CPA, CMA, CPIM Erin P. Hardwick, CAE Mark T. Hobbs, CPA, CFF J. Patrick McDermott, CPA Debbie McDonough, CPA Derrick B. Stark, CPA Maureen Taylor V. Carroll Webster , CPA Walda Wildman, CPA 2011 Editorial Board Charles E. Alvis, CPA, MPA, MBA, Chair Ellen K. Adkins, CPA, MBA John B. Brantley, CPA Neil A. Brown, CPA, MAcc, CFP Amanda S. Colgate, CPA Lisa S. Cooke, CPA Erin P. Hardwick, CAE Karen A. Hursey, CPA Lesley H. Kelly, CPA Margaret L. Lattimore, CPA Marsha G. LePhew, CPA Anthony G. Masino, CPA A. D. “Dave” Masters, CPA Derrick B. Stark, CPA V. Carroll Webster, CPA, MBA

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Features 10 13 15 16

Economic Outlook: The South Carolina Tourism Industry Accounting and the Arts: Charleston CPA Tells Stories with Words and Numbers Accounting and the Arts: Double Life Puts This CPA in the Spotlight Despite Effects of Estate Tax Relief, Trust Remains Attractive Planning Tool

In This Issue 7 19 20 21 22 24 27 29 33 35 36

SCACPA, AICPA to Honor Women to Watch Award Recipients Will the United States Ever Accept IFRS? Give Back to Your Community with VITA Program What You Need to Know About PTIN Don’t Miss a Beat – Renew Early! Affinity Program Continues to Grow Ethically Speaking 2011 Emerging Leaders Conference Offers Foundation for Success CPE Reporting Deadline Reminder New Learning Model Takes Onsite CPE to the Next Level of Engagement Accounting & Auditing Conference Preview

In Every Issue 4 6 9 28 30

From the President Association News On Your Behalf Board of Accountancy News Welcome New Members

30 31 37 38

Member News Chapter Connections Upcoming CPE Classifieds/Advertiser Index

Statements of fact and opinion are made by the authors alone and do not imply an opinion on the part of the officers or members of SCACPA. Advertising rates will be furnished on request to SCACPA, 570 Chris Drive, West Columbia, SC 29169, (803) 791-4181. Publication of an advertisement in The CPA Report does not constitute an endorsement of the product or service by The CPA Report or SCACPA. South Carolina CPA Report


Timothy L. Baker, CPA, CITP, CMA 2011 SCACPA President SCACPA member since 1994


s the year began, my goal was to guide the work on the association’s strategic plan, which seeks to advance the organization and its members, as the profession evolves. There are five primary goals in our plan (see below) and all seek to make SCACPA a continually relevant and evolving organization that helps members every day. It has been important for me to dedicate my time to ensuring the association is and remains a professional home, as it has been for me. During the last few months, I traveled the state, attended many SCACPA and committee meetings, visited with chapters and connected with SCACPA volunteers and members. Through SCACPA involvement, I’ve made personal and professional friends, and it’s my hope that all members can establish these kinds of relationships. One of the strengths of SCACPA membership is the opportunity to develop a network of support with colleagues who have shared experiences. CPAs are subject to rules, regulations and professional standards. One of the functions that SCACPA does well is to monitor legislative and regulatory changes that are not in the members’ best interest and to serve as a champion for the profession. During the year I have encouraged members to call SCACPA and/or me for assistance with professional issues. And many have done just


...all seek to make SCACPA a continually relevant and evolving organization that helps members every day.


South Carolina CPA Report

u CPE Delivery & Marketing

Making SCACPA’s CPE programming high quality, competitive, taking into consideration the market, delivery method, cost structure, content and sales

v Communication, Marketing & Branding

Ensuring that SCACPA’s messaging is current, engaging and most of all effective

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that. Thanks to calls from members we learned early on about regulatory concerns at state agencies, such as the S.C. Department of Employment and Workforce, as well as the S.C. Department of Revenue. As a result, SCACPA has effectively advocated for the interests of members and found resolution to many of these issues. In the area of ethics, SCACPA’s Behavioral Standards Committee has taken on a more active role in providing education for our members. As a result of the S.C. Board of Accountancy’s work to include an ethics education requirement, this committee responded with guidelines it could support. It’s important to focus our attention on the new and future generations of CPAs, so it was my pleasure to speak to SCACPA’s Young CPA Leadership Cabinet in May. It is imperative to the future of SCACPA and the profession in our state that the association works to find ways to incorporate the talents of these young professionals into SCACPA and other leadership positions. As we finish out the year, I thank you for giving me the opportunity to serve as your president for 2011. It was an experience that has meant a great deal to me and one I’ll never forget. Let’s move forward to make our association more vibrant and stronger than ever as we move into the future. n

Timothy L. Baker, CPA, CITP, CMA, is vice president of consulting for Blytheco, LLC. He can be reached at 803-612-7500 ext. 2641 or via email at

p Pictured left to right: (1) Tim (far right) with Michael Putich and Erin Hardwick met with Congressman Joe Wilson (second from right) while in Washington, DC. (2) Former President Eddie Brown passes the gavel to Tim at the 2010 Annual Summit. (3) Tim enjoying a day off at the Charlotte Motor Speedway. (4) Preparing lunch at the January SCACPA staff recognition event.

We Want to Hear From You! You are KEY to our success.


ver the next few months SCACPA will be soliciting information about the services and value provided you by your membership in SCACPA. All members will be asked to complete a short, confidential online survey. Look for more information on the website, via emails from your board and membership committee, and reminders from Work Volf Consultants, an independent consulting firm. Your input will allow SCACPA to better understand and meet your membership needs. We look to hear from you on these important issues. If you have project questions, please contact SCACPA Member Services Manager Maureen Taylor at mtaylor@scacpa. org, Membership Committee Chair Larry Mack at or SCACPA Board Chair Tim Baker at

w Profession Advocacy

x Young Professionals

Being more proactive in creating a voice for South Carolina CPAs in standard-setting, regulation writing and law creation

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Engaging CPA candidates, new licensees and young CPAs

y Association and Governance Structure

Reviewing and evaluating how SCACPA best meets the needs of its members

South Carolina CPA Report


Support the Next Generation of CPAs

Do you need a tax deduction? Don’t forget to make a contribution to the SCACPA Educational Fund Inc, 570 Chris Drive, West Columbia, SC 29169. Your contribution is 100 percent tax deductible and is awarded to S.C. juniors, seniors or graduate students majoring in accounting at S.C. colleges and universities. Interested in establishing an endowed scholarship in honor or memory of an individual or for your firm? Contact Glenna Osier at 803-791-4181 ext. 107 or today for more information.

Brennan Elected to Diversity Council

SCACPA Associate Director Reva Brennan has been elected to the South Carolina Chamber of Commerce Diversity Council. The Diversity Council seeks to engage, support and educate employers as they seek to value and strengthen diversity in the workplace.

Congratulations to Glenna (Minor) Osier

Congratulations to SCACPA’s Peer Review & Member Services Manager Glenna Minor. In June, Glenna married Chris Osier. In addition to changing her last name, Glenna’s email address has also changed. She can now be reached at

Expanded CPA Report SCACPA recently launched the Expanded CPA Report online at www. This members-only area includes videos, photos, and additional information on articles that are featured in the CPA Report.

Click to Learn More

Look for the Click symbol for additional information on an CLICK author, subject or article.


Lyndall Danzler of Southeastern Management Group, Inc. in Charleston was listed as Lynn in the Q3 Member Profile. We apologize for the error.

PROMOTING THE PROFESSION SCACPA members connected with small business owners at the South Carolina Small Business Lender Matchmaking program Aug. 31 in Columbia. Gayle H. Wenzel, CPA of Lexington and Nancy R. Waring, Waring and Associates CPAs, PA in Florence, represented SCACPA at the afternoon matchmaking event. The program was hosted by the South Carolina Department of Commerce, the Federal Reserve Bank in Richmond, Virginia, the Small Business Administration and state economic development partners. The event connected small businesses with service provider and lenders to educate business


South Carolina CPA Report

owners on how to best position themselves to access capital. “A lot of times, small business owners don’t realize what CPAs do,” said Wenzel. “It’s important for CPAs to be at events such as this… to educate them.” Waring echoed the statement adding that CPAs need to do a better job of letting the business community know what an integral part they play in all aspects of a business. n

Are YOU out in the community promoting the profession? If so, please email mtaylor@scacpa. org and let us highlight you in the next issue of the CPA Report.

p Nancy Waring (left) and Gayle Wenzel talk to a participant at the S.C. Small Business Lender Matchmaking program.

Watch the video of Gayle Wenzel and Nancy CLICK Waring discussing why it’s important to promote the profession.

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SCACPA, AICPA to Honor Women to Watch Award Recipients


our female CPAs from South Carolina are recipients of the Women to Watch Award, co-sponsored by the Women’s Initiatives Executive Committee of the American Institute of Certified Public Accountants and the South Carolina Association of CPAs.

570 Chris Drive, West Columbia, South Carolina 29169 (803) 791-4181 or Toll-free (888) 557-4814 Fax (803) 791-4196 |

The Women to Watch Award, which is in its second year, highlights the accomplishments of women in the CPA profession. There are two categories of awards: Experienced Leaders, given to more established members of the profession, and Emerging Leaders, for new professionals. Winners were selected based on: u Major or unique contributions to the accounting profession u Demonstration of leadership characteristics u Public and/or community service u Mentoring of emerging professionals.

Congratulations to the 2011 South Carolina Women to Watch EXPERIENCED LEADERS





Patricia K. Biscopink, CPA Elliott Davis, LLC, Greenville, SC 1

Mary Ann Prater, CPA 2 Clemson University, Clemson, SC

EMERGING LEADERS Amanda S. Colgate, CPA 3 Godshall & Colgate, LLC, Columbia, SC

Glenna P. Osier Peer Review & Member Services Manager Ext. 109,

Sherri L. Freudiger, CPA 4 Sherri L. Freudiger, CPA, PA, Myrtle Beach, SC The South Carolina Women to Watch will be honored on Nov. 17 at the South Carolina Association of CPAs’ Women in Leadership Conference in Columbia. The awards will be presented by Todd Mitchell, member of AICPA’s Women’s Initiatives Executive Committee, and SCACPA President Tim Baker. The Women in Leadership Conference offers informative sessions such as Professional Vision: Where Do You Want to Be with Sheri Callahan, MBA, and Networking for Results and Six Steps to Keeping Yourself Motivated with Denise Ryan, MBA, CSP. For information about the individual award winners, visit the South Carolina Association of CPAs website at A diverse profession is a sustainable profession! SCACPA and AICPA are committed to the attraction and retention of women in the profession through the advancement and visibility of women n

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South Carolina CPA Report


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August 2011


or the profession, by the profession – that’s what the South Carolina Association of CPAs is all about. SCACPA’s board of directors, committees and task forces and Young CPAs Leadership Cabinet are hard at work making decisions, providing guidance and embarking on projects and programs that strengthen the profession and enable members to improve their knowledge, network and technical skills.

STRATEGIC PLAN UPDATE The SCACPA Board of Directors met for a day and a half at Buck Ridge Plantation in August to review and update its five-year strategic plan. The board revalidated its five overarching goals for the association, which include: CPE innovation, advocacy for the profession, branding and marketing for and on behalf of members, new and young CPAs and modernizing SCACPA’s governance and structure. Task forces made up of members are working on these five goals to see that meaningful progress is made.

NOMINATING COMMITTEE REPORT The 2011 Nominating Committee, under the chairmanship of Past President Bob Baldwin, has developed a slate for 2012, which will be presented to the membership for approval at the Annual Business Meeting on Thursday, November 3. The slate is as follows: OFFICERS: • Sharon Mann, president-elect. Sharon serves as CFO for General Information Systems in Chapin. • Malynda Grimsley, vice-president. Malynda is a shareholder at The Hobbs Group in Columbia.

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• Bratton Fennell, secretarytreasurer. Bratton is CFO at Burroughs and Chapin in Myrtle Beach. DIRECTORS: • Penny Lewis, of Penny A. Lewis, CPA, PA in Isle of Palms (Term: 2012-2014) • Suzanne Harnois, of Bernie Ackerman CPAs in Rock Hill (Term: 2012-2014) CHAPTER BOARD SEATS: p 2011 Board Retreat at Buck Ridge Plantation in • Zoe Davis of Hubbard Orangeburg County. Davis, CPAs, LLP, Mt. Pleasant, is the Coastal Chapter representative PRIVATE COMPANY FINANCIAL • Mandy Hallman of Logan’s REPORTING Roadhouse, Myrtle Beach, is the The SCACPA Board unanimously Grand Strand representative approved in its August meeting to • Phil Snipes, of Ernst & Young, support differential standards for Greenville, is the Piedmont Chapter private companies and a separate representative oversight board to administer these standards. Members are asked to AUGUST BOARD MEETING write a letter of support now to the HIGHLIGHTS Financial Accounting Foundation The SCACPA Board approved a expressing your support as well. recommendation by the Benefits Committee to offer a long-term care group policy to members and their firms or companies. Organizations with eight or more employees are eligible for this insurance product, offered by UNUM. With recommendation by the Membership Committee, the new deadline for annual membership renewals is March 1 after which a $10 fee will be imposed. The Young CPAs Leadership Cabinet will create a new membership division for members under 35. There will be a $20 annual fee to be a part of this division, which will be credited toward the annual Emerging Leaders Conference registration fee.

Writing this letter is easy with an online tool. Just go to the SCACPA website to find this tool at www. Please send us a copy of your letter once it’s prepared! Thank you. n

Erin P. Hardwick, CAE, has served as SCACPA’s executive director since 2005. She currently serves as secretary/treasurer of the CPA Society Executives Association, a member of the AICPA Horizons 2025 Advisory Panel, a member of the S.C Secretary of State’s Nonprofit Advisory Council and the S.C. Economics Board of Directors.

South Carolina CPA Report



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The South Carolina Tourism Industry – Still in Recovery Mode by Harry W. Miley, Jr., Ph.D.


s with just about every sector of the Palmetto State’s economy, the tourism industry has been buffeted by the Great Recession. The resulting impact on the overall health of the economy has been substantial due to it being such a major force in the economy. According to the South Carolina Department of Parks, Recreation and Tourism (SCPRT), tourism generates over $18.4 billion in economic activity statewide and supports more than 192,000 jobs (roughly 10 percent of all jobs statewide). SCPRT estimates that the industry generates about $1.2 billion in state tax revenues which represents about 20 percent of the total state budget.i So downturns in the tourism industry translate into downturns in jobs, economic activity and state revenues across the state.

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“SCPRT estimates that the industry generates about $1.2 billion in state tax revenues which represents about 20 percent of the total state budget.” Just to refresh everyone’s memory, the state’s unemployment rate rose from 5.5 percent in December 2007 and peaked at 11.6 percent in June 2009. Total employment dropped by over 78,000 jobs during that time. While in many respects the economy has recovered, as of the latest data available, total employment was still 60,500 below what it was in December 2007.ii So the recession and its effects are still with us. However, the impacts of the tourism industry and the effects of the recession are not evenly distributed across the state. This brief update highlights how the recent fluctuations in the tourism industry have varied in two important regions of the state.

Dreher Island


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For the purposes of this analysis, we focus on two major areas of South Carolina – the Upstate area which is comprised of the Spartanburg, Greenville and Anderson/Clemson markets and the Lowcountry area which is comprised of all of the counties on the coast of the state. Measuring tourism is always a challenging task, but for the purposes here, we will concentrate on hotel rooms and utilize data from the South Carolina Department of Parks, Recreation and Tourism (number, room rates, etc.). According to the SCPRT data, the number of hotel rooms in the Upstate in August 2011 totaled about 12,000 while the total in the Lowcountry was over 29,500, more than twice the size.iii These two markets differ in terms of average room rates and occupancy as well as size. SCPRT uses a combination metric – RevPar – which is a combination of revenue per available room.iv It is the preferred measure of economic activity for hotels and used throughout this analysis. The average RevPar for the Upstate in August 2011 was $35.60 with a high of $45.86 and a low of $37.47. The Lowcountry average was $72.40 with a high of $111.81 in the Mt. Pleasant area and a low of $23.25 in the Hardeeville area. Another distinguishing factor between these two areas is how they have weathered the Great Recession. Both areas saw sharp declines in 2007 and 2008. The Lowcountry average RevPar declined by 6.4 percent in 2008 and 11.7 percent in 2009. The Upstate average RevPar declined by 7.0 percent in 2008 and 17.5 percent

The CPA Perspective SCACPA recently asked some of its members how the 2011 tourism season has impacted their business. People are still coming to the beach, but they appear to much more budget conscious than in the past. I believe that Myrtle Beach has fared better than others areas of the state. Our property at Broadway at the Beach had a record year in 2011. People are still taking vacations and Myrtle Beach is offering a relatively low cost alternative. Some areas of tourism are mixed. Hotel room stays and rates have increased in the last two years, but not yet to pre-recession levels. Golf rounds at the beach are up from 2009, but not back up to 2007 levels. Sales of vacation property are still slow and I do not see that market coming back to pre-2007 levels any time very soon. Bratton Fennell, CPA Burroughs & Chapin Co., Inc., Myrtle Beach Tourism has a tremendous impact on Isle of Palms businesses. As small business owners on the Isle of Palms, my family has been very fortunate in maintaining our sales revenues over the last two years. In 2010, the Gulf oil spill diverted vacationers to the East Coast which helped our summer sales. Economic conditions, as well as high gas prices, have also prompted families to vacation closer to home. In addition, we have seen distinct changes in shopping patterns with our customers using more private

label brands, trading down on meat selections, and choosing more valuepriced beer and wine. Betsy Moseley, CPA Red & White, Isle of Palms Logan's

Roadhouse has two coastal Grand Strand locations. Our North Myrtle Beach location is a more tourist oriented location and was down 2.5 percent over last year. Our Myrtle Beach location, which more locals frequent, was up about 2.5 percent. Mandy Hallman, CPA CMAC Inc. d/b/a Logan's Roadhouse, Myrtle Beach

For the 2011 tourist season in Myrtle Beach, our miniature golf courses were down approximately 12 percent compared to our prior season in 2010. This has hit our bottom line and will make our winter months leaner than we would like. However, our Family Fun Center actually saw an increase in business during the months of June, July and August, mostly attributable to the tourists. May and September have not been as good, and we credit this to locals being busy with school and the weather is just too nice to be indoors. Leigh Ann Marks, CPA Fun Warehouse, Myrtle Beach

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South Carolina CPA Report


“Without substantial job growth, it is unlikely to see strong rebounds across the state in the tourism industry.” in 2009. And both areas saw healthy rebounds in 2010. For example, the Upstate area average RevPar bounced by with a 13.5 percent increase from August 2009 to August 2010. The strongest growth was in the Greenville area (19.0 percent) and the weakest rebound was in the Anderson/Clemson area (3.6 percent). The Lowcountry bounced back as well, but not as strongly. The average RevPar in the Lowcountry increased by 10.1 percent in 2010 from 2009. The strongest growth was in the Charleston area (12.4 percent) and the weakest growth was in the Hilton Head area (4.8 percent).

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South Carolina CPA Report

low of $21.97 in the Hardeeville/I-95 area. Again, the average RevPar in the Lowcountry is still 11.1 percent below what it was in December 2007.

But that is where most of the similarity ends. While the Upstate has seen another double digit increase, the Lowcountry has seen another reversal in 2011. From August 2010 to August 2011, the Upstate experienced an average increase in RevPar of 11.6 percent with a high of 19.8 percent in the Anderson/Clemson market and a low of 5.4 percent in the Greenville market.

So while both regions have experienced some rebound from their respective recession lows, neither could be considered “recovered” to their pre-recession levels. Activity is up in some areas, but overall room revenues are still well below their December 2007 levels.

However, the Lowcountry average RevPar declined by an average of 2.3 percent in August 2011 compared to August 2010. The worst declines were felt in the Hardeeville/I-95 area with a 10.6 percent drop and the Hilton Head area that saw an 8.4 percent decline. The best performing market was the North Charleston area with a 13.7 percent increase.

What does this mean for the tourism industry and the rest of the state? First, the industry will most likely not recover to its pre-recession levels until the national and state unemployment rates improve dramatically. Without substantial job growth, it is unlikely to see strong rebounds across the state in the tourism industry. Second, as a result of this sub-par growth and recovery, the state’s tax revenue picture is unlikely to see as strong a rebound as one might expect during a normal recovery. Given that the industry generates an estimated 20 percent of all state tax revenues, without a robust recovery in tourism, it will be difficult to generate robust state revenue growth. n

While some markets have experienced continued growth in 2011 and others have felt a double dip decline, the industry is still in a recovery mode. For example, the average RevPar for the Upstate in August 2007 was $41.20 with a high of $45.86 in the Greenville area and a low of $37.47 in the Spartanburg area. As of August 2011, the average RevPar in the Upstate was $35.60 with a high of $39.82 in the Greenville area and a low of $33.14 in the Spartanburg area. That is, the average RevPar in the Upstate is still 13.5 percent below what it was before the Great Recession.

Harry W. Miley, Jr., Ph.D., is a visiting assistant professor of Economics at SC State University and founder of Miley & Associates, Inc. i


The same thing has occurred in the Lowcountry. The average RevPar for the Lowcountry in August 2007 was $81.40 with a high of $111.81 in the Mt. Pleasant area and a low of $23.25 in the Hardeeville/I-95 Spartanburg area. As of August 2011, the average RevPar in the Lowcountry was $72.40 with a high of $98.06 in the Charleston area and a

Many thanks to Pat Mason, CEO of, data are from August 2011, various publications. ii South Carolina Department of Employment and Workforce, Labor Market Information, Monthly Labor Force Trends, September, 2011. iii The number of rooms may not equal the total in these areas, but rather reflects the totals in SCPRT’s sample data collected and published by Smith Travel for SCPRT. iv South Carolina Parks, Recreation and Tourism, South Carolina Tourism Statistics, Monthly Reports, RevPar = Revenue Per Available Room, i.e., total room revenue divided by total number of room nights. South Carolina tourism images provided by the South Carolina Department of Parks, Recreation and Tourism, the Columbia CVB and the Greenville CVB.

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p Left: Marcia Rhea on the set of The Patriot. Right: Bob Cooper in an ad for Gwinnett Medical Center

Accounting and the Arts South Carolina’s natural beauty is a draw for tourists from the coast to the mountains. The Palmetto State’s rural settings, pristine waterways and urban environments have also served as a scenic backdrop to more than 100 feature films, 70 television movies and series, and over 500 print ads and catalog shoots. Even when film locations don’t spark ongoing flocks of tourists, they can bring a temporary increase to local business, according to an article featured in the March/April 2011 issue of South Carolina Business. Two SCACPA members are actively making a contribution to film tourism – Marcia Rhea, CPA, Charleston and Bob Cooper, CPA, Greenville. Turn the page to learn how Marcia and Bob have successfully combined their love of accounting with the arts.

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South Carolina CPA Report


t Marcia Rhea with the 2007 Beaufort International Film Festival Award for Best Screenplay.

Marcia Rhea, CPA Charleston, SC SCACPA member since 1993


ords tell stories and for Marcia Rhea numbers do as well. It’s her ability to share these tales that has translated into success for the Charleston CPA, author and award-winning screenwriter. “As an accountant, numbers tell the story of a business’ journey, where it has been and where it will likely go,” Rhea explained. “It’s the same thing as a character arc in a story. You can take a character from a very dark place in their lives and make a 360 degree change.” Whether as a writer or a CPA, Rhea sees her work as changing people’s lives. Ties to both professions run deep. Her father, Foster Chandler, was one of the top agents for the Internal Revenue Service and was involved in such high profile audits as Jim Baker’s PTL Club and Vice President Spiro Agnew. Her mother’s side of the family included writers, musicians and actors. In fact her cousin is actor/director David Birney known for his roles in St. Elsewhere and Serpico. Since her childhood the two have been intertwined. Rhea grew up hearing her father’s stories about his work and from them learned of his strong work ethic and sense of


South Carolina CPA Report

Charleston CPA Tells Stories With Words and Numbers by Maureen Taylor SCACPA Member Services Manager

“As an accountant, numbers tell the story of a business’ journey, where it has been and where it will likely go.” fairness. And as a young girl, she began crafting her own stories. By the time she entered college the creative pull prevailed and Rhea graduated from College of Charleston with a major in English. She went to work for the U.S. Army Corps of Engineers as an acting public affairs officer, utilizing her writing skills and also worked on films for the Corps. Around that same time she penned her first non-fiction book The Gene Dillard Story. After leaving the Corps, Rhea began working independently in film and commercials in a variety of areas including casting, set decoration and props. Working on the sets of The Patriot and Made in Heaven, she worked with such names as Timothy Hutton, Kelly McGillis, Debra Winger, Timothy Daly and Mel Gibson. When travel entered the picture, Rhea’s strong sense of community (which she also attributes to her father) led her to rethink that path. By that time her father had retired from the IRS and started his own accounting practice. So, he suggested Rhea come on board. “He loved accounting so much and suggested I see if I would like it

as well,” Rhea said. “I was always interested in business and actually always wanted to have my own. Plus, I could continue my writing.” Not one to do things half way, Rhea went back to school for accounting and sat for the CPA exam. She interned with both her father’s firm and Hyland Ruddy & Garbett in Mount Pleasant and then went to work full time with her father, all the while continuing her writing. After her father’s death, Rhea opened her own public accounting firm and also obtained her securities license allowing her to work on investments with her clients. Today, Rhea works with individuals and small businesses in a variety of industries. “I love helping people. In this economy, I see people who have lost their homes and businesses and help them through that transition time,” she said. Rhea also shares her love of accounting, and her father’s, with the next generation of CPAs by providing internships.

Watch the video of Marcia Rhea talking CLICK about her life as a CPA and award-winning screenwriter.

continued on page 38

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Double Life Puts This CPA in the Spotlight by April Blake Office & Member Services Coordinator

Bob Cooper, CPA Greenville, SC SCACPA member since 1965

“ ...with every movie it became easier to anticipate what was going to happen on the set.”


hat do Clark Kent, Miley Cyrus and Bob Cooper, CPA, have in common? They all have great genes that led to their better-than-average good looks, and they all lead double lives. The person with the most interesting story of the three is Bob Cooper, a South Carolina CPA and a professional model-actor. It all began in the 1940s when a young Bob was growing up in Columbia and attending a Catholic school. Nuns arranged for several of the children to model for the department stores on Main Street, as well as perform in operettas and school plays. In addition to these activities, Bob visited the five movie theaters on Main Street every day after school in a rotation. With the movies at these theaters changing weekly, he estimates that he has seen every movie that was made from the 1940s through the late 1950s and watching his on-screen favorites Cary Grant, Humphrey Bogart and Gary Cooper (no relation) sparked the imagination of this young man. His movie star dreams were set aside for college, a tour of duty in the Navy and starting his career as a CPA.

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After moving from Columbia to Greenville, Bob became involved with local arts and civic organizations, where his fellow cast mates encouraged him to sign on with an agent. Over the years, Bob says that his many agents have been a great source of information for the movie roles and modeling jobs that he landed over the years. The agents would contact him about a potential role, and if interested, he would send his headshot and a resume, which began the process. Bob can be seen in five motion pictures: Sleeping with the Enemy, The Program, Ace Ventura: When Nature Calls, Eddie, and Leatherheads. He thoroughly enjoyed each experience, and with every movie it became easier to anticipate what was going to happen on the set.

As a practicing CPA, Bob said that some of his clients are surprised to find out that he has this other side to him that most people do not expect from a CPA. To show clients his flair for the dramatic, he invited a group of them to see him perform as Ebenezer Scrooge in live performances of A Christmas Carol so that they could see him as more than the man behind the calculator. When asked if he planned to continue as a model-actor, Bob said, “I have no desire to retire,” which seems to be a broad statement for his whole life. An avid traveler, Bob takes frequent vacations with his wife of 50 years in between juggling his two careers and breaking the mold of a traditional mild-mannered CPA. n

South Carolina CPA Report


Despite Effects of Estate Tax Relief, Trusts Remain an Attractive Planning Tool THE FOLLOWING ARTICLE IS THE FIRST IN A TWO-PART SERIES ON ESTATE TAX RELIEF AND TRUSTS. by James C. Hardin III


n December 2010 President Barack Obama signed into law the “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010,” (the “Act”), which reinstated the estate tax, but with an unprecedented $5 million per person applicable exclusion amount. With the introduction of portability of the deceased spousal unused exclusion amount, the Act appeared to render credit shelter or bypass trusts less necessary as a part of the estate plan of more affluent clients. Despite these changes, however, the professional advisor should continue to recommend trusts for both tax and nontax reasons.

“With judicious planning, the enhanced applicable exclusion amount and portability can now mean that a married couple can take advantage of a $10 million combined applicable exclusion amount from estate tax.”


South Carolina CPA Report

The Act raised the estate tax applicable exclusion amount (sometimes referred to as the unified credit or the credit shelter amount) to $5 million, an increase that was supported by President Obama and Congressional Republicans and many Democrats alike. The former $3.5 million applicable exclusion amount in effect prior to the one-year repeal of the estate tax in 2010 had already removed the threat of estate taxation from the vast majority of clients. With judicious planning, the enhanced applicable exclusion amount and portability can now mean that a married couple can take advantage of a $10 million combined applicable exclusion amount from estate tax. This may obviate the former popularity of the marital deduction/bypass or “A/B Trust” format for all but those clients with significant

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wealth. With the increasing applicable exclusion amount since 2001, many planning professionals have suggested to their clients that only an optional credit shelter or bypass trust be included in the will, with that trust being activated through a qualified disclaimer by the surviving spouse within nine (9) months after the first spouse's death. Even that optional approach, with its attendant flexibility, now seems less necessary. Portability, if it remains after 2012, fundamentally changes the tax planning paradigm. Prior to the enactment of portability, counselors often suggested that a married couple balance their estates so that irrespective of which one of them died first, the first spouse's estate

“Portability, if it remains after 2012, fundamentally changes the tax planning paradigm.” would take maximum advantage of that spouse’s applicable exclusion amount. At least on its face, portability removes the necessity for balancing. Under portability if any portion of the applicable exclusion amount of the first spouse to die is underutilized, then so long as the executor of the first spouse's estate makes an election to allow the surviving spouse’s estate to utilize that unused portion, then at the death of the surviving spouse, the unused portion of the applicable exclusion amount at the first spouse's death will be available to offset estate taxation at the surviving spouse's death. Portability has limitations, including the critical necessity of the executor of the first spouse's estate making the portability election. This election

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requires the filing of an estate tax return at the first death even if the estate is under the filing threshold, no estate taxes are due, or both. Further, portability is inapplicable if the surviving spouse remarries. Also, portability is not applicable to the $5 million generation-skipping transfer tax exclusion. Finally, prudent counselors advise their clients that the $5 million applicable exclusion amount and portability will expire on December 31, 2012, unless the Congress acts to extend those benefits. With the recent gridlock in Congress over the raising of the debt ceiling, some advisers are skeptical that the Congress will be able to take any action to forestall the expiration of these benefits. Without these provisions being extended, the estate tax applicable exclusion amount will return to the $1 million level that was applicable in 2001 and the necessity of the “A/B Trust” format would be applicable to a much larger number of clients. Further, relying on portability and not using the bypass trust in the first spouse's estate seems attractive for an income tax reason, since typically assets passing into the bypass trust at the first spouse's death do not obtain a stepped-up cost basis at the surviving spouse's death, which stepped-up basis would be available if the spouses decided not to utilize trusts, simply willed their assets to each other outright, and relied on portability. The U.S. Department of Treasury has provided income tax compliance incentives for those persons desiring to establish and fund a revocable living trust. First of all, so long as the trust is a grantor trust under Internal Revenue Code Sections 671 through 678, all income, deductions

and credits of the trust are taxed to the grantor. In addition, so long as the grantor or the grantor's spouse are the trustees of the revocable living trust, no fiduciary income tax return is required to be filed for the trust, and trust income, deductions and credits are reported on the client’s personal income tax return. Incentives for the use of the revocable living trust continue after the client’s death. Where the client dies having a revocable living trust and where the client may bequeath additional assets to the trust through the client’s will, Internal Revenue Code Section 645 allows Trustees to make an election whereby for the first two (2) tax years after the decedent's death, all of the income, deductions and credits of the formerly revocable living trust can be included on the fiduciary return for the decedent’s estate. This means that the normal requirement for the filing of quarterly income tax estimates is obviated for the trust. Additionally, while trusts must file their income tax returns on a calendar year basis, estates may elect any fiscal year. During the pendency of the 645 election trusts enjoy this advantage. n

James C. Hardin III has practiced law in the field of estate planning, probate and trust for over 37 years. He is licensed in both South Carolina and North Carolina and is a certified specialist in estate planning and probate law in both states. He maintains his principal office in Rock Hill with a satellite office in Charlotte, where for 20 years he practiced with Charlotte’s largest law firm, Kennedy Covington Lobdell and Hickman. He is a fellow and past state chair of the American College of Trust and Estate Counsel. He has been listed under estate planning in the Woodward and White publication, The Best Lawyers in America for 25 straight years. He is a co-author with Professor S. Alan Medlin of the U.S.C. Law School of the book, The South Carolina Trust Code. Mr. Hardin is a graduate of the Duke University School of Law.

South Carolina CPA Report



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Will the UNITED STATES Ever Accept IFRS?


by Derrick B. Stark, CPA SCACPA member since 1996


ver 120 countries currently permit or require financial statement reporting using International Financial Reporting Standards (IFRS). Many more are currently developing or implementing IFRS adoption. While IFRS matters now to U.S. companies that have foreign reporting requirements, the United States is largely seen as a major hold out in the global acceptance of the international standards. According to the latest AICPA IFRS Readiness Survey, 76 percent of public companies are waiting for the SEC to support adoption before implementing IFRS statement preparation and many have not yet acquired the expertise they will need to do so. All of this begs the question, will the US ever accept IFRS? At a glance, IFRS, a principles-based set of standards, seems to contradict the revered objective of comparability baked into U.S. GAAP. The flexibility necessary to foster broad acceptance leaves open the door for wider interpretation and varied results. Adopting IFRS, moreover, seems like an about face to the post-Enron deluge of specifics in our rules-based system. Terry Grayson-Caprio, a partner at KPMG LLP in Greenville, thinks the gap between the principles-based

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IFRS and rules-based U.S. GAAP is narrowing. While Grayson-Caprio is a fan of principles-based standards, she acknowledges, "They [IFRS] are changing to become more rules-based." In addition to more specifics in IFRS, broadly accepted interpretations by practitioners will aid preserved comparability. "Companies establish internal policies within the [IFRS] principle, and the companies have to be consistent from year to year," according to Grayson-Caprio. Many of those internal policies naturally find their genesis in the copious amounts of U.S. GAAP literature and historical practice. As a result, the professional judgment of the internal policy drafters, financial statement preparers, and auditors is expected to smack of U.S. GAAP except for the places where there are direct contradictions. Thus, comparability between companies is likely preserved at a practical level in the United States even under IFRS. Assuming that IFRS does gain some traction by the authoritative accounting bodies here, one cannot help but wonder how much comparability abroad is likely given contradiction between flexibility and comparability.

In an article co-authored by University of South Carolina professor Timothy Doupnik, research suggests that, even in those countries that have implemented IFRS, cultural differences among nations can lead to materially different interpretations of the standards (http://www.journalofaccountancy. com/Issues/2009/Feb/ IFRSBeyondtheStandards). Words like "probable" have very different meanings to preparers based on national culture and values, and as such, recognition and disclosure will vary significantly based on locale regardless of the common standards. Perhaps, then, a single set of high quality accounting standards does not necessarily provide the global comparability we pursue. The destiny of IFRS in the United States may be that of soccer. Sure it has a loyal following in America among those with a reason to participate, but Hank Williams, Jr. may never wail, "Are you ready for" n

Derrick B. Stark, CPA, is managing member of ClaraVista LLC, a reimbursement and consulting firm serving home medical equipment suppliers throughout the United States. Derrick’s areas of expertise include data analytics and application development. Derrick can be reached at

South Carolina CPA Report


Volunteer in Your Community with the VITA Program by Anthony Masino, CPA SCACPA member since 2002


s a society, one of our core characteristics is our outreach in our local communities. As such, are we doing enough in this economy to assist South Carolina residents? With the upcoming tax season, there is a way for SCACPA members to assist. The IRS has a need for CPAs to assist with the IRS Volunteer Income Tax Assistance (VITA) program. The VITA program offers free tax help for qualifying low to moderate income taxpayers. While individuals across the state may wish to volunteer, the IRS always has a need for our experience as certified return reviewers, volunteers, and instructors. You can even earn free CPE credits for instructing!

and their families worldwide receive free tax preparation assistance at offices within their installations. These VITA sites provide free tax advice, tax preparation, and assistance to military members and their families. They are trained and equipped to address military specific tax issues, such as combat zone tax benefits, its affect on the Earned Income Tax Credit and rental of their home. Most service members file their tax returns electronically at their tax centers and, by selecting direct deposit, receive their refunds in as little as one week. This combined effort ensures that service members receive free tax assistance from welltrained and equipped military tax preparers.

The VITA program offers free tax help to low to moderate income (generally, $50,000 and below) taxpayers who cannot prepare their own tax returns. Volunteers sponsored by various organizations receive training certifying them to help prepare basic tax returns in communities across the country. VITA sites are generally located in community and neighborhood centers, libraries, schools, shopping malls and other convenient locations. Most locations are open only a few hours or days a week.

Volunteers are able to set their own schedule and provide as many hours

as they want. The IRS welcomes any and all assistance. Interested parties should contact the IRS education office to be connected with the relationship manager for your county and to learn more about the program and how you may help. For more information contact:


(803) 253-3341 (803) 253-3743

Anthony Masino, CPA, is an assistant professor with South Carolina State University as well as a practicing CPA and attorney. He currently serves on SCACPA’s Editorial Board Task Force, the CPE Committee, the Taxation Committee, the Behavioral Standards Committee and the Financial Literacy Task Force.

In addition, South Carolina VITA locations have a strong history of assisting military members. Airmen, soldiers, sailors, Marines, guardsmen,


South Carolina CPA Report

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What You Need to Know about PTIN by Anthony Masino, CPA SCACPA member since 2002

“While CPAs are exempt from PTIN tax knowledge exam certification, CPAs are still required to register on an ANNUAL basis.�

PTIN FAQs Q. When can I renew my PTIN for the 2012 filing season? A. PTIN renewal is expected to be available in Oct. 2011. Check irs. gov/ptin for updates. Q. When does my PTIN expire? A. PTINs now expire on a calendar year basis. If you obtained or renewed your PTIN for the 2011 filing season (e.g. between Sept. 28, 2010 to present) your PTIN expires on Dec. 31, 2011. Source:

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his past tax filing season, the IRS reported over 100,000 paid tax preparers had not registered under the new Preparer Tax Identification Number (PTIN). In 2010, the IRS launched an initiative to increase its oversight of the tax return preparation industry and regulate the conduct of tax return preparers. All paid tax return preparers must obtain a PTIN and, when required to do so, sign their names and include their PTINs on the returns and refund claims they prepare for compensation. Starting in July 2011, the IRS began sending letters to about 100,000 tax return preparers who either used outdated PTINs or used social security numbers as identifying numbers on returns they prepared this filing season. The letters explain the new oversight program, inform preparers of how to register for a new PTIN, or renew an old PTIN, and where to get assistance. A common misconception is CPAs are not required to register. While CPAs are exempt from PTIN tax knowledge exam certification, CPAs are still required to register on an ANNUAL basis. Effective Jan. 1, 2011, all paid preparers were required to have a PTIN before preparing returns. For those that registered, PTINs that were obtained for the 2011 filing season will expire on Dec. 31, 2011. Renewal will be available in mid-October 2011. Preparers who applied for their PTINs on paper will be able to renew either

online or on paper. Paper renewal will take four to six weeks to process. You must renew your PTIN before Jan. 1, 2012. Some preparers will have additional requirements in the future. Attorneys, Certified Public Accountants, and Enrolled Agents (EA) who are active and in good standing with their licensing agency have no additional requirements other than to renew their PTIN annually. Supervised Preparers and Non-1040 Preparers will need to renew their PTIN annually and submit fingerprints for a background check. Supervised Preparers are those who do not sign returns and who are employed by attorney, CPA or EA firms and are supervised by an attorney, CPA or EA. Non-1040 preparers are those who do not prepare any Form 1040 series returns. Note: Form 1040PR and 1040-SS are not considered Form 1040 series returns for this purpose. All other preparers will need to renew their PTIN annually; submit fingerprints for a background check; pass a competency test; and take continuing education courses annually. The IRS anticipates the offering of the exam and fingerprinting in Fall 2011. Those who already have a PTIN will have until the end of 2013 to take and pass the exam as well as pass the background check. The continuing education requirement is expected to start in 2012. n

South Carolina CPA Report




our 2012 SCACPA membership dues statement will soon arrive in your inbox and the sooner you renew the better. Not only does your prompt payment save the association the cost of additional mailings, it also means you won’t miss a beat when it comes to SCACPA’s membership benefits.


While this year’s dues will include a slight increase, the benefits you receive continue to grow – legislative advocacy, CPE discounts, subscriptions to quality publications including the CPA Report and Current Asssets, SCACPA insurance and discount programs, outstanding networking opportunities and much more.

Q. What period does my dues payment cover?

Your renewal statement also includes an opportunity to join your local chapter, contribute to the Educational Fund and make a donation to the Political Action Committee. For CPAs 35 and younger, you can also join the Young CPA Network for $20. The network offers young CPAs an opportunity to interact with peers, exchange information and ideas and if you attend the Emerging Leaders Conference, your dues will be applied to the conference registration fee.

A. Your membership investment covers the 2012 calendar year from Jan. 1 to Dec. 31.

Q. Are my SCACPA dues tax deductible? A. Dues are not deductible as a charitable contribution but may be deducted as an ordinary business expense. A portion of your dues (estimated at 10 percent) are not deductible as an ordinary and necessary business expense to the extent that SCACPA engages in lobbying.

Q. When should I pay my dues? A. Dues are payable upon receipt of the renewal notice – due by Dec. 31, 2011. Dues that are not paid by March 1 will incur an additional fee.

Members are encouraged to renew prior to Feb. 28, 2012. Renewals received after March 1 will incur an additional fee. The fastest and easiest way to renew is online at

Q. What form of payment does SCACPA accept?


Q. Can I pay my dues online?

u Log into your membership account v Select “Manage My Membership” w Select “Pay My Dues” x Either renew for yourself or multiple people within


The following are the most common questions our membership department receives.

your firm or organization.

South Carolina CPA Report

A. Dues can be paid by personal check, firm or company check or VISA, MasterCard, American Express or Discover credit card.

A. Yes, in fact we prefer online dues payments. Pay online at Simply log in and click on the Membership Area, Pay Dues Online link. Need help logging in? Contact

Q. My contact information has changed. How do I update my information with SCACPA? A. Update your information online in your membership account, on the mailed renewal notice or by emailing We require all membership contact information updates in writing.

(888) 557-4814 |

Q. I’ve recently retired or am planning to retire this year. Can I pay the retired rate?

Q. At this time I no longer wish to remain a member. Can I just ignore the statements?

A. No, please contact SCACPA via email, mail or fax to have the change approved. We require notification of all membership changes and requests in writing and handle these on a case by case basis.

A. No. Per the SCACPA Constitution you must resign from membership by sending a letter or email to request resignation. In addition, we require you return your certificate of membership to the association office. Members who have not renewed within 90 days are no longer members in good standing. Membership dues must be paid in order to register at member rates for CPE seminars and other events, participate in chapter events and to be eligible for SCACPA insurance and discount programs.

Q. I’m semi-retired, only working during tax season or seasonally. Is there a special membership rate for me? A. Yes. We have an unemployed/other membership classification that offers reduced dues. You must request this special rate in writing and complete an inactive membership waiver form.

Q. I’m unemployed or work only part-time (less than 20 hours per week). Is there a special membership rate for me? A. Yes. We have an unemployed/other membership classification that offers reduced dues. You must request this special rate in writing and complete an inactive membership waiver form.

Q: I allowed my membership to lapse and would like to rejoin. Can I pay the pro-rated dues amount? A: The pro-rated dues amount is available only to those that have never been a SCACPA member. Former members must also pay a reinstatement fee of $35. n

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This credit card program is issued and administered by FIA Card Services, N.A. The WorldPoints program is managed in part by independent third parties, including a travel agency registered to do business in California (Reg. No. 2036509-50); Ohio (Reg. No. 87890286); Washington (6011237430) and other states, as required. MasterCard is a registered trademark of MasterCard International Incorporated, and is used by the issuer pursuant to license. WorldPoints, the WorldPoints design and Platinum Plus are registered trademarks of FIA Card Services, N.A. Bank of America and the Bank of America logo are registered trademarks of Bank of America Corporation. WP.MCV.0908 © 2011 Bank of America Corporation ARD0T3I3-102010 AD-01-09-0012.C.WP.NT.0109

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South Carolina CPA Report


Affinity Program Continues to Grow – and the Benefits Do Too!


CACPA’s Affinity Partner Program is designed to offer you access to high quality products and services, often at a substantial savings. SCACPA staff realizes that members’ needs vary widely and we are continually looking for offerings that would benefit you. If you have suggestions for the Affinity Partner Program, please contact


IMG Benefits, LLC is SCACPA’s newest partner in the Affinity program. IMG has two new products that may hold potential for your firm - an individual disability insurance product and a long term care insurance product from Unum. These are not for everyone. The disability product has a minimum three employee participation requirement. The long term care product requires at least eight employees. These are guaranteed issue products which means that no medical underwriting is required, a significant plus compared to alternatives. In order to be eligible at least one employee must be a CPA and SCACPA member. This offer is open to CPA firms as well as those in business and industry. The disability product does not require financial underwriting and there is no medical underwriting as previously mentioned. Rates are fixed and do not change. It is completely portable and does not offset for any other source of benefits during a claim. The long term care product is available without medical underwriting. The benefit available


South Carolina CPA Report

goes up to $6000 a month for up to six years with a 5 percent uncapped inflation rider if desired. It is completely portable and premiums do not increase through age bands. Family members are eligible for the same discount but must answer medical questions. Tax treatment is usually favorable and the deduction amount is a function of how the business is organized. This is an indemnity design contract and there are no offsets based on income from other sources during a claim. To find out more about the disability and long term care insurance products, contact Buzz Smythe at


ADP's program for SCACPA delivers valuable and important human resources, payroll and benefits administration related services to help you and your firm succeed. ADP provides: a Value that can help you and your clients improve cash flow, mitigate risk and manage talent a Complimentary and discounted resources and tools that help eliminate your back-end office tasks and assist with your professional development and marketing initiatives a A dedicated ADP service line for accountants. Benefits include: a Free standard payroll processing for your accounting firm a Discounts on payroll processing services for your firm's small business client with RUN Powered by ADP®


Targeted industry profile information from First Research® a HR business process outsourcing such as Professional Employment Organizations (PEO), HR benefits and payroll administration a International payroll and HR outsourcing To find out more about ADP visit the website for accounting professionals at or contact Scott Seiler at 704-714-5929 or

Bank of America

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BB&T Insurance the AICPA Plan

The AICPA Insurance Programs offer members quality insurance coverage provided by one of the leading insurance companies in the country. Coverage available includes professional liability and employment practices liability insurance. CNA,

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the plan underwriter, is rated “A” (Excellent) by A.M. Best and has been providing accountants professional liability insurance since 1962. The program is administered locally in the Carolinas by BB&T Insurance Services, an agency endorsed by the South Carolina Association of CPAs. BB&T Insurance Services, Inc., offers a number of AICPA-endorsed professional liability insurance products to meet the unique needs of your firm: a CPA Value Plan: for smaller CPA firms, with up to three professionals and annual revenues up to $400,000. a Premier Plan: for mid-sized CPA firms and the unique services their clients demand. a Regional Firm Plan: for firms billing in excess of 10 million, excluding the Big Four. For more information or to request a quote, please log on to www.cpai. com/SCACPA.


CAMICO’s comprehensive risk management resources are backed by 25 years of experience and exclusive focus on CPAs.


Deductible credits of 50 percent up to a maximum of $50,000 if firms report a potential claim prior to the claim being made OR for use of mediation to resolve claims a Proactive approach to claims handling a Engagement and disengagement letter review services to help spot potential risk exposures a Access to CAMICO’s members only site which includes client assessment checklists, sample engagement letter language, engagement and disengagement letter checklists, 85+ sample engagement letters downloadable in Word, a risk management knowledge tree, resource centers and much more. Visit to learn more, or call 800-652-1772 to speak with a CAMICO representative.

Career Bank is the industry’s largest career center network reaching more than one million accounting, finance, banking, mortgage and insurance professionals.

CAMICO was founded by CPAs in 1986, introducing a new way of approaching accountants’ professional liability insurance that focuses on helping firms reduce their risk exposures. In addition to comprehensive policy coverage, policyholders have access to a wide range of practice and risk management knowledge and tools, created by CPAs for CPAs. provides job postings and candidate search tools for employers. The site also provides resume posting, job search and career development resources for job seekers.

Program benefits include: a Premium credits - New policyholders may be eligible for a 6 percent credit on their first year premium. In addition, all insureds selecting the Suit for Fees exclusion receive an ongoing 5 percent credit.

Post your job, or resume, online at

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Other features include up-todate news, original articles and newsletters on the profession and career development.


The South Carolina Association of Certified Public Accountants and

CCH have joined forces to offer you an incredible member benefit that provides exclusive discounts on an array of CCH’s industry-leading portfolio of products. This includes substantial discounts of up to 40 percent on CCH’s premier selection of tax and accounting books, as well as 5-10 percent discounts on awardwinning software and research subscription products. You can also download CCH’s eBooks and still get the same great discounts. Be sure and check out the monthly specials featuring new and relevant promotions. Visit the SCACPA website to find out more.


As a SCACPA member you can save up to 30 percent off your shipping charges with UPS. Whether you send 50 shipments a month or two shipments a week, the savings add up. Of course, the higher the volume, the higher your savings. With UPS even small businesses can save big. For example: UPS Next Day Air® – Save 16-30 percent * UPS 2nd Day Air A.M.® Letters and Packages - Save 12-23 percent * UPS Worldwide Express /Saver/ Expedited Export ® – Save 16 – 30 percent * (* discount based on volume of total weekly gross transportation charges) Sign up today and start saving at n

To learn more about SCACPA’s Affinity CLICK Program partners log into the SCACPA website at and select Member Exclusives. South Carolina CPA Report



“LET’S TALK ABOUT YOUR NEXT MOVE� “LET’S TALK THIS THROUGH� Ronald Parisi, CPA, J.D., EVP of RiskCounsel Management for CAMICO, discusses the faced risks faced by CPAs Ron Klein, JD, CFE, VP Claims for CAMICO, discusses the risks by CPAs every every day. day. OK, Ron, what’s the best strategy in a case like this? OK, Ron, is this client relationship really a risk to me? Accept the subpoena or summons, then tell this Well, you let’s will lookrespond at the red flags. Theconsult client has person once you yourcareless risk record-keeping practices, is late in providing information BEWJTPS8IBUFWFSZPVEP EPOUTQJMMUIFCFBOT and is often non-responsive, causing you delays. What happens if the business fails or you later discover the But doesn’t a subpoena mean they have a right to client had been deliberately withholding information ask questions and search our files? due to unethical activity. How might you be blamed? Not necessarily. Providing information now, without proper at risk of keep a lawsuit later. Isn’tcounsel, it better could to fix put the you problem and the client? " TVCQPFOB JT KVTU B MFHBM SFRVFTU GPS JOGPSNBUJPO *U Sure, if you can. But at what cost to you, your staff and NBZOPUFWFOCFFOGPSDFBCMF#VUXIBUFWFSUIFDBTF  your firm? the court allows you time to respond properly. But disengagement is such an unpleasant business... OK, so I don’t spill the beans. What’s the next step? Not nearly as unpleasant as getting sued. Proactively $BMMUIF$".*$0)PUMJOF$".*$0TTQFDJBMJTUTIBWF managing your risk through client selection and CFFO UISPVHI UIJT XJUI IVOESFET PG PUIFS $1"T  BOE retention is really about upgrading your client base and they will guide you through lawful compliance without thus upgrading your firm. compromising your professional standards or the right of privacy between you and your client. OK, so I’m ready to disengage from this problem client. What’s the next step? But legal counsel is expensive. How much is this Calling CAMICO is always your first step. Our risk going to end up costing me? management specialists will help you tactfully and "Tsecurely B $".*$0 UIFSFTWe OPhave FYUSBdozens DIBSHF of endQPMJDZIPMEFS  the relationship. forsample legal advice and representation, and you can callyou disengagement letters and will even help PVStailor )PUMJOF BT PGUFO BT ZPVE MJLF 1MVT  ZPV NBZ CFare your own letter to make sure all your bases entitled to cut your deductible in half if you report a covered. matter before it becomes a claim.

Not insured by us? Give CAMICO a call, and we can start the conversation about lowering riskcan – and Not insured by us? Give CAMICO a call, your and we easing your heartburn – today. start the conversation about lowering your risk –

and your stress level – today.

See a video of Ron Klein talking about how CPAs can best handle disengagements at

See a video of Ronald Parisi sharing how CPAs should handle subpoenas and summons at

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Ethically Speaking…

Education Priority for Behavioral Standards Committee by Eddie Dutton, CPA SCACPA member since 1988


ave you ever been faced with a decision on the ethical impact of a transaction and didn’t know where to turn for assistance? Have you read a published sanction of a member of the CPA community and wondered how that process worked? A solution for each scenario and more is SCACPA’s Behavioral Standards Committee. An element of SCACPA’s mission is “the promotion of high ethical standards…for both the public good and the profession.” This is addressed by the Behavioral Standards Committee by providing education to the members of the association through continuing education courses that address both the regulatory background of the Code of Conduct and practical examples of how the rules

The AICPA’s Professional Ethics Division educates members and promotes the understanding of ethical standards contained in the Code by responding to member inquiries on the application of the Code to specific areas of practice. If you have questions, e-mail or call 888-777-7077. For information on the CPA professional code of conduct, standard setting and enforcement: InterestAreas/ProfessionalEthics/Pages/ ProfessionalEthics.aspx SCACPA staff contact for the Behavioral Standards Committee: Erin Hardwick, CAE,

(888) 557-4814 |

are applied. Most states are moving to mandatory ethics training for licensees as a condition of continued licensing and the South Carolina Board of Accountancy appears to be part of that movement. In addition, the association is charged with investigating and resolving complaints of violations of the association’s Code of Conduct by members. These referrals may come through various channels such as 1) clients, 2) public sources such as court records, 3) third parties such as banks or other recipients of CPA work products, 4) fellow CPAs or 5) regulatory bodies. To effectively and efficiently complete these investigations, SCACPA has an agreement with the AICPA for their full-time investigative staff to actually conduct the inquiries. Recommended actions may include no action, dismissal of the complaint, admonishment, suspension of membership, expulsion, or a letter of corrective action. The case files and recommended actions are then presented to the association’s committee for concurrence or amendment. We are fortunate that as CPAs we are allowed to investigate and discipline members for ethics violations through the AICPA and state associations. We must be the stewards of this privilege and continue to demonstrate our commitment to the processes to avoid other bodies seeking authority for oversight. The primary focus of the Behavioral Standards Committee is the contin-

ued education of association members. Through annual CPE offerings, publishing of case study examples, a dedicated page on SCACPA’s website to be launched in January 2012 and regular articles in the CPA Report, information on ethical behavior and the creation of an ethical environment in our practices will be shared. This focus will hopefully reduce the need for resources allocated to investigation and discipline of violators. Significant resources are available to assist members with decisions relating to ethics. The AICPA has posted to its website a series of interpretations that can be reviewed for those situations addressed; a hotline is available for assistance with specific factual inquiries. SCACPA will be providing links on its website to these resources for ease of members’ use. The Behavioral Standards Committee is becoming a more proactive resource for you, as a SCACPA member. While historically viewed as a disciplinary body, the committee exists primarily for the education of association members and we actively seek your input on ways we can contribute to your success and professional growth. n Eddie Dutton, CPA, is chief quality, compliance and risk officer for Cherry, Bekaert & Holland, LLP. Located in the firm’s Spartanburg office, Eddie serves as chairman of SCACPA’s Behavioral Standards Committee, is a member of the Technical Standards Committee and a past president of the Foothills Chapter.

South Carolina CPA Report


Fourth Quarter Report by Mark T. Hobbs, CPA SCACPA member since 1981


he Board of Accountancy recently elected officers for the year July 1, 2011 – June 30, 2012 and welcomed two new members. Elected to the board were Mark T. Hobbs, CPA, chairman; Bob Baldwin, CPA, vice chairman; and Gary Forte, secretary. New board members are Mark Crocker, CPA, and Tanya Greenlee, CPA. Mark replaced Tony Callander, CPA, while Tanya replaced Bobby Creech, CPA. Mark Crocker is a partner with Dixon Hughes Goodman LLP and has responsibilities for the firm's Asheville, Charleston, Greenville and Spartanburg offices. He was among the firm’s founding partners in the 1980s and began his career with KPMG, an international accounting firm. Long active in the profession, Mark has served in elected and volunteer roles with the American Institute of CPAs and the Institute of Management Accountants. He previously served as a member of the SCACPA board, the Technical Standards Committee and president of the Piedmont Chapter. As senior vice president of finance with Burroughs & Chapin Company in Myrtle Beach, Tanya’s responsibilities include tax, budgeting, treasury and financial reporting and analysis. She started her accounting career in the Spartanburg office of Coopers & Lybrand (now PwC) and audited a variety of clients including large public companies, hospitals, not for profits and colleges. She also served


South Carolina CPA Report

as controller of Beaufort Memorial Hospital where she was responsible for the accounting, business office and admissions departments. The Board of Accountancy also identified several areas of focus for the 2011-12 fiscal year including: u Peer Review Implementation – Ascertain that all registered firms are appropriately enrolled in peer review v CPE and better communications of qualifying CPE w Ethics Education Development – Requirement to have two hours on S.C. law every six years x Consideration of development of a peer review oversight committee y Amendments to S.C. Accountancy Law z Improve communications to target audiences, the public and the users of financial information of licensees One of the most immediate concerns is to assure that we have a level playing field in South Carolina for all firms. We will be researching and comparing the data base of registered firms to those firms in the peer review program. n

Mark Hobbs, CPA is the managing partner of The Hobbs Group, PA in Columbia. A past president of SCACPA, Mark currently serves on SCACPA’s Investment Committee as well as the Long Range Planning Task Force and the Women to Watch Awards Task Force. He may be reached at

Online Tool Helps CPAs Navigate Mobility


majority of states have adopted mobility legislation, a practice privilege that allows CPAs to more easily practice across state borders. To help CPAs navigate the new practice privilege requirements, the National Association of State Boards of Accountancy (NASBA) and the American Institute of Certified Public Accountants (AICPA) recently launched The website provides helpful information, updated regularly, on state practice privilege requirements for CPAs, commonly referred to as “mobility” laws, for all 50 states and five U.S jurisdictions. In four simple clicks online, CPAs can learn whether their existing home state registration is mobile and allows them to work in other jurisdictions without additional notice, or whether further paperwork is required. The site works by posing three targeted questions to CPAs interested in exercising cross-border practice privileges. The questions are: u u u

Where is your principal place of business? Where are you going to perform services (target state)? What type of services will you perform?

Information on licensing and registration requirements is then produced allowing CPAs to move quickly to address new business opportunities. To learn more about mobility or to research crossborder practice privilege requirements, visit n

(888) 557-4814 |

2011 Emerging Leaders Conference Offers Foundation for Success by Emily Allen SCACPA Communications Coordinator


n August 18 and 19, SCACPA’s Young CPA Leadership Cabinet hosted 42 of South Carolina’s upand-coming accounting professionals in Charleston at this second annual event. The Emerging Leaders Conference was created to develop future leaders of the association, the profession and the community by providing leadership development and networking opportunities for the next generation of professionals.

“This was the most beneficial CPE I’ve attended. Very interesting and helpful topics.”

Motivational speaker Mike Collins kicked off the conference early Thursday morning with a session titled The Perfect Workday during which attendees learned that successful leaders make time for themselves. Next, Agent John Kenney of the FBI spoke on Red Flags and Internet Fraud, where attendees discovered how forensic accountants aid in efforts against fraud, money laundering, counterfeiting and identity theft. Other notable sessions included First Impressions and Personal Branding, Fraud Investigations and Forensic Accounting in Criminal Prosecution and Civil Litigation and a Technology Update. Attendees traveled from as far away as Waynesboro, Ga. and Charlotte, N.C. to gain 16 hours of continuing education and socialization time with their peers. A networking event at Southend Brewery offered the opportunity to polish skills gained during the personal development sessions. Cabinet members and conference attendees alike enjoyed the opportunity to transfer ideas and knowledge amongst their peers outside of the educational atmosphere of the conference room. One young CPA remarked, “This was the most beneficial CPE I’ve attended. Very interesting and helpful topics.” Start making plans now to attend the 2012 Emerging Leaders Conference (date and location TBA), because this is one event you won’t want to miss! n

t Pictured left: (From top) Attendees enjoy the view of downtown Charleston during a break at the Emerging Leaders Conference. Cynthia Grosso, Charleston School of Etiquette and Protocol, instructs young CPAs on the importance of first impressions. Conference attendees network before lunch. Dr. Linda BradleyMcKee, College of Charleston, discusses tax updates.

(888) 557-4814 |

South Carolina CPA Report


F ocus O n M e m be r s hip Welcome New Members

*as of 9/23/11

Caroline W. Barfield Greenville, SC

Katherine D. Musselman Greer, SC

Elizabeth B. Robinson Clover, SC

Dayvon E. Goddard Simpsonville, SC

Virginia H. Greene Columbia, SC

Diego Padelford Fort Mill, SC

Eric V. Schmid Greenville, SC

Jeremy Helms Lancaster, SC

Amy H. Payne Mount Pleasant, SC

Andrew J. Preston Charleston, SC

Raymond H. Schmitz Indian Land, SC

Amber Hollenbeck Charleston, SC

Heather M. Powers Irmo, SC

James D. Rogers Columbia, SC

Philip G. Simoneaux, II Fred Mattocks III Columbia, SC Cowpens, SC


Allyson O. Scott Florence, SC

Chadwick D. Sweatman Jack P. Murphy Moncks Corner, SC Simpsonville, SC


Brian Gunther Lexington, SC Emily S. McCorkle Simpsonville, SC Christine L. McKeag Hilton Head Island, SC

Kristen L. Searcy Columbia, SC


Melissa L. Barbour Charleston, SC

Scott J. Rudolf Summerville, SC

Dianne S. Crocker Inman, SC

Michael H. Winiarski Sumter, SC

Delaney A. Curlee Columbia, SC

CPA Candidate

Bret H. Davis Myrtle, Beach, SC

India F. Aycock Patrick, SC

April A. Filyaw Florence, SC

Della J. Barnhill Charleston, SC

Kara Horner Laurens, SC

David. P Carney Columbia, SC

Cristen Jones Charleston, SC

Erin M. Doyle North Augusta, SC

John P. Keller Greer, SC

Ekpenyong E. Effiong Monte D. Leath Clifton, NJ Bluffton, SC Michelle S. Gneisig Kathleen P. Matheny Spartanburg, SC Beaufort, SC


Valerie J. Gray Lexington, SC

Alicia S. Mathers Mauldin, SC

John W. Mitchell Charleston, SC

Ridgely E. Miller Charleston, SC

Juan G. Mora-Tobon Easley, SC

Leslie Platt Charleston, SC

South Carolina CPA Report

Fellow Government

Christine S. Brown Mount Pleasant, SC Cheryle S. Weal Aiken, SC


John B. Becza Myrtle Beach, SC


Christian A. Balser Mount Pleasant, SC Susan M Blake Columbia, SC April Cook Dalzell, SC Garrett Copeland Fort Mill, SC David L Culley, Jr. Johns Island, SC Amber Davis Simpsonville, SC Melissa G. Davis Florence, SC Bindi Desai Greer, SC Brian J. Ewalt Rock Hill, SC

Justin A. Rice Rock Hill, SC Ariel Stewart Blythewood, SC Kimberly Taylor Mullins, SC Todd Thibodeau Conway, SC

Member News Natalie R. Clayton, CPA, has been promoted to manager in the tax and consulting services practice in Moore Beauston & Woodham L.L.P’s Charleston office. Amanda J. Dearing, CPA, has been

promoted to senior accountant in the tax and consulting services practice in Moore Beauston & Woodham L.L.P’s Charleston office. Colleen M. Fellows, CPA, has been promoted to manager in the tax and consulting services practice in Moore Beauston & Woodham L.L.P’s Charleston office. Kimberly L. Garmany has been promoted to senior accountant in the tax and consulting services practice in Moore Beauston & Woodham L.L.P’s Charleston office.

George A. Trabookis Charlotte, NC

Erin E. Gilbert, CPA, has been promoted to senior accountant in the tax and consulting services practice in Moore Beauston & Woodham L.L.P’s Charleston office.

Kevin B. Tucker, Jr. Rock Hill, SC


Jonathan Wiggins Lugoff, SC Michael White Greenwood, SC Terri K. Wilson Lexington, SC Celia Woodward West Columbia, SC

Elliott Davis, LLC, one of the largest accounting, tax and consulting services firms in the Southeast, is pleased to announce the expansion of its international practice. Recent hires include Eric Schmid, CPA, an international assurance shareholder with more than 20 years of public accounting experience, who will be located in the firm’s headquarters in Greenville, S.C. The shareholders of Elliott Davis, LLC, recently admitted seven new shareholders, five of which are SCACPA members. This brings the total number of firm shareholders to 56. The SCACPA members include Richard F. Hewitt, Jr., CPA, Columbia office; Eric Levy, CPA, and personal financial specialist, Charleston office; James M. Manley, Jr., CPA, Greenwood office; Terri G. McNaughton, CPA, and Eric D. Pitts, CPA, Greenville office.

(888) 557-4814 |


Ed Kingsmore, CPA, CHAE, controller at the Dunes Golf and Beach Club in Myrtle Beach has been named 2011 Certified Hospitality Accountant Executive (CHAE) of the Year by Hospitality Financial and Technology Professionals (HFTP). In its 28th year, the CHAE of the Year honors the individual that scored the highest on the CHAE certification exam in a given year. HFTP is the global professional association for financial and technology personnel working in hotels, clubs and other hospitality-related businesses. Dixon Hughes Goodman, LLP and Elliott Davis, LLC were recently recognized as 2011 Best Places to Work in South Carolina. Produced by the South Carolina Chamber of Commerce and the publishers of SC BIZ, the initiative is dedicated to identifying and recognizing South Carolina’s most innovative and top-notch employers. Both firms were recognized in the large employer category, 250 or more U.S. employees. Elliott Davis, LLC, has been recognized among the Best Midlands Companies for Working Moms by the March of Dimes and Greater Columbia Business Monthly. The Best Midlands Companies for Working Moms selection process included a survey completed by each nominee regarding its corporate policies and culture promoting employee wellness and family-work life balance.


Lewis Moyer Henderson died July 13, 2011. Born Feb. 2, 1954 in Xenia, Ohio, Lewis was a graduate of Wake Forest University and received his law degree from the South Carolina School of Law. A SCACPA member since 1984, he worked for several large accounting firms before founding his own CPA firm, Henderson & Associates. Lewis served on several boards in Columbia and was chairman of the Audit Committee of First Citizens Bank. He was recognized as an expert witness in forensic accounting. Brian Eliot Holmes of Columbia, died July 18, 2011. Brian was born Dec. 17, 1977, in Goldsboro, North Carolina. A graduate of the The Citadel, Brian was a SCACPA member since 2002 and was also a member of the Young CPAs Leadership Cabinet and the AICPA. n

(888) 557-4814 |


Dues: $60, includes discounted registration to CPE seminars and free family/networking event • November: Annual Tax Update (8 hours) • Winter: Family/ Networking Event


Dues: $50, includes discounted registration to CPE seminars, free Oyster Roast, Family Day and Business Meeting Dinner; invitation to Professional Night and Golf Tournament • Nov. 10: Corporate Law for Accountants (3 hours, CE111011) • Nov. 30: Tax Update (8 hours, CE113011)


Dues: $130, includes free registration to CPE seminars (additional registration fee for Tax Update) and free registration to family/ networking event


Dues: $40, includes discounted registration to CPE seminars and three free social/networking events • Nov. 10: Professional Issues Update (4 hours, 70411SP) • Nov. 18, a.m.: Corporate Tax Update (4 hours, FO1118AM) • Nov. 18, p.m.: Individual Tax Update (4 hours, FO1118PM) • December: CPE Seminar • December: Social Event


Dues: $125, includes free registration to CPE seminars; Holiday Party and Student Recruitment Fair • Nov. 11: A&A Update with Mark Hobbs (8 hours, GR1119A) • December: Holiday Dinner/Social


Dues: $50, includes discounted registration to CPE and free social events • November: Chapter/ Student Bowling Night


Dues: $50, includes registration for CPE at a nominal fee and free holiday luncheon • Nov. 11: Professional Issues Update (4 hours, 70411GR) • Nov. 17: Corporate FIT/ Sales Tax or International Tax/UCP, 1099, Wage (4 hours PITMG1) • Dec. 15: Property Tax/ Canadian Tax or Tax Managers/SALT, Income (4 hours PITMG2) • December: Annual Holiday Charity Luncheon


Dues: $135, includes free registration to CPE seminars and two special events, Tax Breather Social and Professionals’ Night • November: Professionals’ Night • December: CPE (8 hours)

South Carolina CPA Report



Registering for, keeping up with, and tracking CPE courses is almost a full-time job itself, which leaves less time for accounting. For your convenience, SCACPA has lessened the chore of registering for CPE by offering easy online registrations. To register online, visit

5 4

Instant Gratification

Your registration goes into our system on the spot, and you can expect your confirmation email from SCACPA within minutes.

No “Oops, My Bad”

The chances of a registration getting lost or delayed in the mail or caught up in the fax machine lines are much greater than the chances of a registration getting lost through the website.


PCI Compliance

Our website is Payment Card Industry Compliant, so you do not have to worry about your information being compromised within our system.


Keep Up With It

Online registrations are immediately added to the Event Calendar under your Membership tab on the SCACPA website. Keep track of your classes the easy way.


Best of All : The Early Bird Gets the Great Rate Be assured that you won’t miss out on catching the early bird registration discount by losing your registration because you’ve already signed up through!

For assistance in logging in to the website, contact April Blake, 803.791.4181 ext. 100 or

How to Reduce the Stress of CPE Reporting by Reva Brennan, MPA, CAE, IOM SCACPA Associate Director


o you stress about meeting the annual CPE reporting deadline of Dec. 31? If yes, here are five things you can do to reduce the anxiety of meeting the requirements. 1. KNOW THE RULES The South Carolina Board of Accountancy requires CPAs to obtain 40 hours of CPE annually. Of those hours only eight can be in the area of personal development and only 20 can be earned as self-study. The self-study programs must be Quality Assurance Services (QAS) approved by the National Association of State Boards of Accountancy (NASBA).

2. STAY ABREAST OF CHANGES Specialized conferences keep you informed of the changes. The format of various speakers on multiple topics provides a snap shot of what is hot and helps you determine topics you may need to delve into deeper with a full day seminar.

Learn more about conferences at

3. MAKE INFORMED CHOICES After attending conferences and reading the CPA Report review the SCACPA CPE catalog at and use the advanced search option to determine the seminars or webinars you need to attend to ensure you are receiving the technical information needed to provide quality services and advice to your clients, and grow your practice and career. (888) 557-4814 |

4. SAVE TIME AND MONEY If you and your staff still have hours to earn, save money with the SCACPA Choice Card. The Choice Card offers discounts on CPE that can be shared with SCACPA members within your firm and can be purchased for 20 or 40 hours. You can also save money with the SCACPA Onsite Customized Training program, if you have 10 or more employees you would like to train. If you need a few hours and you don’t want to leave your home or office to earn them, choose from SCACPA’s selection of online live webinar partners.

CPE REPORTING DEADLINE REMINDER Effective with calendar year 2011, CPE will be reported annually to the South Carolina Board of Accountancy by completing a CPE report and submitting all certificates of attendance/completion associated with the report to the Board office on or before Jan. 31 of each year.

Learn more about these options at, onsitetraining and

5. REPORT PROMPTLY You will receive a reminder from the South Carolina Board of Accountancy regarding your renewal. Don’t wait until the last minute to complete your hours and renew your certification. However, we understand that circumstances arise and we have to make adjustments. When they do, SCACPA’s got you covered with the Last Chance CPE Frenzy on Dec. 28-29 at the SCACPA office. This two day frenzy offers two – four seminars to help you cover the few hours you are short or cram in the last 16 hours you need to complete your 40. To learn more about the benefits and services SCACPA has to offer contact us at 888-557-4814 or visit us online at To learn more about your certification renewal and CPE requirements contact the Board of Accountancy at 803.896.4770 or online at Accountancy/. n

Emerging Trends in Accounting

CORPORATE SUSTAINABILITY CONFERENCE December 7 • Columbia, SC The green movement offers bottom line appeal and CPAs are taking notice. Whether you’re in the business environment or in public practice, we’re seeing CPAs going for the “other green,” the new financial advantage of understanding and engaging in sustainability measures. Make plans now to attend on Dec. 7 SCACPA’s first conference devoted to corporate sustainability and learn ways your company or firm can benefit. cPe

Register now at emergingtrends

South Carolina CPA Report





CPATechnologyBootCamp:KeyTrends andStrategiesEveryCPAShouldKnow andUnderstand

Thursday, December 15, 2011

Today there are virtually unlimited opportunities available for CPAs to leverage technology to automate their processes, expand their services and improve the profitability of their organization. This course will provide an engaging review of the top IT trends and strategies that you should assess to help you develop an IT roadmap optimized for your organization, and learn how to better communicate with IT professionals.

Outlook,Word,Excel&Adobe Tips,Tricks&Techniques 


PaperlessCPE! The South Carolina Association of CPAs is offering an exciting NEW innovation in CPE seminars by delivering the courseware on interactive tablets to replace paper manuals. Experience a combination of live seminar instruction with innovative, paperless materials via electronic tablets featuring:

9 Vividcolordisplayscreens

Friday, December 16, 2011

Learn how to take advantage of the features and functions of the software programs that you use every day and maximize your efficiency and minimize your frustration. This comprehensive, fast paced review of practical time saving tips and techniques will provide you with a live demonstration of best practices for increasing your personal productivity with these software tools. Location: SCACPA Office, West Columbia, SC Registration Fee (each seminar): EB:$250, M:$275, NM$350 Recommended CPE Credit (each seminar): 8 Hours


9 Electronicbookmarksforspeedier navigationofcoursematerials 9 Onscreenannotationtoolstotrack personalnoteselectronically All of these features add up to a more engaging learning experience.



South Carolina


New Learning Model Takes Onsite CPE to the Next Level of Engagement by John H. Higgins, CPA, CITP, Strategic Advisor, CPA Crossings, LLC


ontinuing Professional Education (CPE) is a required component of an accounting professional’s life, and today there is no shortage of online and onsite sessions available. Both types of CPE learning, that is face-to-face and web-based, provide attendees with valuable, timely information required to remain current in such areas as tax law, compliance, client data security, technology, and more. And while online sessions have gained momentum over the past few years based on convenience and affordability, the effectiveness of live onsite learning cannot be overstated. The onsite learning model is a longstanding, tested and proven platform for interactive and rich exchange of information. Unlike online forums, onsite education provides participants with a level of energy and discussion that is difficult to reproduce in a webbased environment. And now, with the introduction of a new learning model that integrates electronic tablets, Wi-Fi, and the Cloud into the education process, on-ground CPE is positioned to accelerate participant engagement to a whole new level.

Converging Technologies and the New Learning Model The convergence of electronic tablets (for example, Apple’s iPad) Wi-Fi, and cloud computing have enabled the transformation of today’s onsite CPE delivery. Learners no longer need to be saddled with cumbersome manuals. Tablet-based learning eliminates the need for paper and

pencils, allowing students to follow a presenter and participate in interactive exercises through a Wi-Fi-powered device. Annotation functionality allows learners to takes notes directly on the tablet. This advanced new CPE model also supports electronic delivery of post-session resources. At the completion of a workshop, students are emailed a copy of course materials, complete with personal notes. The entire learning experience is completely paperless.

This scenario should sound familiar. In fact, it’s too familiar for many accounting professionals, which is why so many have turned to online CPE modules. With the new model firmly in place, tides may turn again— enticing professionals to attend onsite events over web-based sessions. Tablet-based learning takes onsite courses to a new level—pairing the synergy onsite forums innately offer with advanced technology for learning that is fun, engaging, and two-way.

Also consider the potential for heightened learner engagement. Working interactively via a handheld tablet eliminates the need for traditional PowerPoint presentations, which tend to only support one-way discussion—presenter to participants. Tablet learning opens up a world of opportunity to create a far more dynamic learning environment—for example, by including polling questions and interactive charts and graphs within course sessions.

The immense value of the new onsite learning model will become more apparent as more practitioners take part in these advanced learning forums. Consider all the benefits:

In comparison, consider the following example of a traditional CPE workshop experience. An accounting professional attends a typical CPE-based seminar or conference. Chances are high that the presenter facilitates the session using a standard PowerPoint presentation and supplies attendees with paper copies of slides and manuals. Notes are taken manually, and all paper copies are transported back to the practitioner’s office and filed among volumes of other paper—likely to not be viewed again.

• Eliminates the need for paper manuals and copies of presentations. • Provides learners with convenient electronic versions of annotated course materials for easy retrieval and review. • Enables two-way, interactive dialogue during sessions via such features as polling questions. • Offers course materials within a high definition display, supporting vivid, multi-color collateral (also eliminates the high cost of printing color materials). • Eliminates capacity restrictions. Presenters can download as much material as needed to tablets. • Provides advanced functionality to customize the learner continued on page 36

(888) 557-4814 |

South Carolina CPA Report


Accounting & Auditing Conference Preview by Reva Brennan, MPA, CAE, IOM SCACPA Associate Director


egistration is now open for the 2011 Accounting and Auditing Conference, December 8-9 in beautiful downtown Charleston at the Marriott Hotel. SCACPA members save $125 when registering by November 17. Our conference features several dynamic speakers that will discuss a variety of topics you don’t want to miss. The format of the conference offers you the flexibility to choose the sessions that best meet your needs. So make sure we count you in! • The A&A Conference spans two days with 16 CPE credits, two tracks and eight concurrent sessions. • The kick-off general session is an A&A Update with Jeff Lewis, CPA, Dixon Hughes Goodman, LLP. This session will review newly issued accounting principles and other activities of the Financial Accounting Standards Board (FASB), including emerging issues in revenue recognition, lease accounting and contingencies.

• The highlight of this conference will be the Private Company Financial Reporting Standards Panel moderated by South Carolina’s very own Rebecca Lee, CPA with Sheehan, Hancock & Goodwin, LLP. Panelists include: Jeff Lewis, CPA, Dixon Hughes Goodman, LLP; Townsend Clarkson, CPA, Kiawah Development Partners; Jeffrey Mechanick, CPA, Assistant Director, FASB; Robert Durak, CPA Senior Technical Advisor, AICPA Accounting Standards Team. • Michael Auerbach, CPA, chief of the Division of Accounting Services Employee Benefits Security Administration of United States Department of Labor will discuss the new benefit plan guidelines. • Technology guru Val Steed, CPA. MA, CITP will offer two sessions: Cloud Computing, which covers the benefits and risks of this cutting edge technology, and Excel – The Business Analytics Tool which demonstrates how Data Tables, PivotTables, Solver, Goal Seek can become a powerful analytics tool that can report results via dashboards.

• South Carolina favorite Rebecca Lee, CPA, will lead discussions on Fair Value Accounting and Accounts Payable Fraud. These sessions run back to back which allows you get a double dose of her southern flavor during these very informative sessions. • Annual favorite Bradley Newkirk, CPA is back with a change in roles. He will lead a breakout session on Auditing Fair Value and close the packed two-day conference with a review of the New Lease Accounting Standards. • Other sessions to choose from are: Data Extraction with Don Sparks of Audimation Services, Inc.; Life Cycle of Employee Fraud with Roy Strickland, CPA, Dixon Hughes Goodman, LLP; and Ethics and Compliance with Bill Ellis, Jr., CPA, MPAcc, A&A Update Review, Inc. We are pleased to announce CCH, a Wolters Kluwer business as a sponsor of this event. n

to many updated features such as easy implementation of video, audio, and web content. It also expands the shelf life of course materials, allowing real-time updates to materials when needed. For participants, the combination of interactive tools and resources and two-way interaction promises a much richer and engaging learning experience. The new era of onsite CPE learning has begun! n

John Higgins, CPA, CITP, is a strategic advisor for CPA Crossings, LLC—a leading technology solutions consulting firm that offers a comprehensive catalog of CPE topics for State CPA Society members and the broad accounting profession. John is also a regular contributor to CPA Practice Advisor. For more information on the tabletbased CPE learning model, contact John at jhiggins@

For conference details or to register, visit

New learning model, cont. experience—Tablets enable learners to zoom in or out, create bookmarks and links to information, quickly conduct searches for specific information, and take notes using intuitive annotation tools. For course developers and presenters, this new model eliminates the reliance on paper, while also opening the door


South Carolina CPA Report

(888) 557-4814 |

Last Chance - CPE Frenzy! Dec. 28, 2011

Dec. 29, 2011

This course will delve into complex issues that not-for-profits and their auditors face today. The literature will be discussed followed by a case study that will provide participants with the opportunity to explore the ways the case could be handled. This module will concentrate on organizations of moderate size and larger. CPE Credits: 4.00 - Accounting

This four hour module will help auditors and those working in not-for-profit organizations identify and address the most common fraud and abuse schemes that are perpetrated against them. Using a case study format, participants will learn how these fraud schemes can be prevented and detected. The issue of fraud is especially important to understand in an economy where incentive and pressure to commit a fraudulent act is intensified. CPE Credits: 4.00 - Auditing

Loscalzo's Case Studies in Complex Not-for-Profit Accounting and Disclosure Issues (79911AM)

Using Tax Basis and Other OCBOA Presentations Effectively (79911PM) With the complexities and cost of GAAP financials, many practitioners have encouraged clients to use tax basis and other OCBOA financial statements. This program will address OCBOA reporting and disclosure requirements, including the AICPA interpretation and practice aid on OCBOA. Note: This program is a four hour version of Loscalzo's Tax, Cash and Modified Cash Basis Financial Statements and Other Alternatives to GAAP. CPE Credits: 4.00 - Accounting

Identifying and Addressing the Risk of Fraud in Not-for-Profit Organizations (70111AM)

Analytical Procedures for Reviews and Audits (70111N) There's no question that analytical procedures require a great deal of judgment in deciding just how much "digging" must be done to develop expectations and evaluate fluctuations and other anomalies that are discovered. This program is designed to clear up misconceptions in implementing professional performance standards and increase effectiveness and efficiency in the performance of analytical procedures. CPE Credits: 2.00 - Auditing

High Risk Areas-Inventory and Receivables (70111PM)

For event details or to register, go to coursecatalog

(888) 557-4814 |

Covers guidance on analytical procedures included in both SSARS and audit guidance. The headlines continue to "blast" accounting firms for fraud and misstatement of inventory and accounts receivable, and those are only the ones that make it into the newspapers. This program deals with the key exposure areas for inventory and receivables and how accountants can reduce risk when performing a compilation, review or audit. CPE Credits: 2.00 - Auditing

TAX SEASON SURVIVAL GUIDE The Best Income Tax, Estate Tax, and Financial Planning Ideas of 2011 (78411) City: Greenville Date: 11/29/2011 Credits: 8.00 Advanced Tips and Tricks of Investment Tax Management to Enhance Client Wealth Accumulation and Retirement Security (78511) City: Greenville Date: 11/30/2011 Credits: 8.00 The Complete Trust Workshop (79811) City: West Columbia Date: 12/21/2011 Credits: 8.00 Complete Guide to Preparing Limited Liability Company, Partnership and S Corporation Federal Income Tax Returns (80012A) City: West Columbia Date: 1/10/2012 Credits: 8.00 Payroll Taxes, Benefits and 1099 Reporting: Everything You Need to Know (80112A) City: West Columbia Date: 1/11/2012 Credits: 8.00 Preparing Individual Tax Returns for New Staff and Para-Professionals (80212) City: West Columbia Date: 1/17/2012 Credits: 8.00 The Complete Guide to Preparing Limited Liability Company, Partnership, and S Corporation Federal Income Tax Returns (80312) City: West Columbia Date: 1/18/2012 Credits: 8.00

South Carolina CPA Report


CPA Tells Stories With Words and Numbers continued from page 14 LOCAL FOCUS - PERSONAL SERVICE The focus of our firm is only on CPA practices in North and South Carolina. This gives us the time to understand local issues and opportunities and allows is to be close enough to provide personal service. Our purpose is to help owners decide if and when they should sell or transition out of their practice. As part of the process we help them develop and implement a plan to maximize the firm’s value and address any concerns about transitioning it to a new owner. This allows is to offer potential buyers firms with demonstrated value and a plan to sustain that value through the transition. To learn more, visit or call Bill Britt @ 866-768-0089.


Get Your Ad In Front of the Right Audience Whether you’re looking for a potential buyer, renter, consumer or new staff member, the CPA Report will put your ad in front of more than 4,000 CPAs and accounting professionals in South Carolina. Classified advertising rates are $1 per word for members and $2 per word for nonmembers with a $30 minimum. Contact Emily Allen at or call 803-791-4181 to find out more.

And Rhea continues to entertain and inspire audiences. Her screenplay, The Carolina Storyteller, which she co-wrote with Margaret Ford Rogers, has garnered honors at the Beaufort International Film Festival and the Austin Film Festival. The script, which is set in the South in the 1920s focuses on two young boys who discover a dark secret in their small town. In 2009, it earned outstanding achievement from the Academy of Motion Pictures Arts and Sciences for its unique style and voice. The script is currently being pitched in Hollywood. The Grey Man, a script she also wrote with Rogers, was a finalist in this year’s Beaufort International Film Festival. As she looks to the future, accounting and writing are still intertwined. “Being a CPA, I’m all about the money. My goal is to create a development fund that would develop South Carolina stories, and bring them to the screen. We could produce films in South Carolina from South Carolina writers,” Rhea said. “By bringing in investors, they would be eligible for tax credits, at least for now. As a CPA, I look at can you make money for your investors. But it’s not just the money. It’s about creating entertainment that can change peoples’ lives.” n


At MG&C, our experienced professionals are committed to excellent service and innovative solutions for diverse legal and business challenges.

Accounting Practice Sales Inside Back Cover

Camico Page 26

Aon/BB&T Insurance Services/ AICPA Professional Liability Insurance Program Page 8

CPA Crossings Page 34

American Pensions Inside Front Cover

Experience. Service. Results.

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South Carolina CPA Report




John F. Hamilton, CPA Page 20 Haynsworth Sinkler Boyd, P.A. Page 18 McAngus Goudelock & Courie, LLC Page 38

Myrtle Beach (888) 557-4814 |



UV^H]HPSHISLÂś(JJV\U[HU[ÂťZĂ…PNO[WSHU Using real-world scenarios, practice owner testimonials, and written exercises, CPA and author Brannon Poe offers keen insights for developing customized, straightforward approaches to hone your focus, eliminate frustration, grow your bottom line, and achieve meaningful work-life balance while increasing profitability. for more information

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South Carolina Association of CPAs

570 Chris Drive, West Columbia, SC 29169


Q42011 CPA Report (video)  

Q42011 CPA Report (video)