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Director’s Fiduciary Responsibility ISSUE Skyscapes August 2013 STRATEGIC PLANNING BY LYNN FOUNTAIN, CPA, CGMA, FOUNTAIN GRC LLC

Preparing for a CFO Role


Director’s Fiduciary Responsibility

T 3 4 7 8 13 14 15 17 21 22 22 24 28


Board Retreat Report


raditionally, being appointed to a company’s Board of Directors has been considered an indicator of reaching a level of professional expertise and recognition. Especially in the pre Sarbanes Oxley years, presence on a corporate Board whether it be public, private or not-for-profit, was considered a great resume attribute. It was also a nice way to earn a bit of extra cash during the declining years of a person’s career. Post the occurrence of the Enron incident and the passing of the Sarbanes-Oxley legislation, the responsibilities and liabilities of individuals who serve as members of corporate boards has dramatically risen. Legislation is holding director’s strongly accountable to their fiduciary duties and shareholders and stakeholders are supporting that stance. To serve on a corporate board in today’s economy, an individual must be ready to spend considerable time understanding and executing on their fiduciary responsibilities to the organization. It is no longer acceptable to just appear at the quarterly meetings, provide input, and collect your director fees. Now directors are expected to be well prepared for meetings and step above and beyond traditional duties of quarterly board meetings.

From the Chair

© Copyright 2012 Lynn Fountain, used with permission.

Preparing for a CFO Role Nonprofit of the Month Director’s Fiduciary Responsibility Affordable Care Act Seminars “20 up to 40” August Session Board Retreat Report Professional Development Member & Vendor News April/May CPA Passers New Members Classified Ads Mark Your Calendar! Events & Conferences

Statements of fact and opinion are made by authors alone and do not imply an opinion on the part of the officers or members of the KSCPA. Publication of an advertisement in Skyscapes does not constitute an endorsement of the product or service by Skyscapes or the KSCPA. Copyright © 2013 Kansas Society of CPAs; Topeka, KS. All rights reserved.




With the End of august comes the unofficial end to summer.

Executive Committee M. Aron Dunn, Chair, Designated Member of AICPA Council

Kids are heading back to school and many of us parents are thankful for the return of a regular routine.

Board of Directors

August also brought the annual strategic planning Board retreat for the KSCPA and this year’s retreat was fantastic. The facilities at The Elms were great (and the ghost stories were quite entertaining). We had a tremendous turn out of Board members, chapter leaders and other invited guests (See page 16). Our facilitator, Tom Hood (of Maryland!) did a great job

Melinda A. Hitz, Vice Chair Michelle A. Schneider Secretary/Treasurer Robert J. Schuster, Immediate Past Chair (Term Expires 2013)

James K. Boomer Ginger L. Farney Carolyn C. George Kathryn J. Mitchell, KSBOA Liaison Matthew R. List Mindi A. Ormiston

Board of Directors

as usual.

(Term Expires 2014)

Rebecca J. Casey Sean M. Copp Charles Gnizak James A. Wurbs Gary C. Allerheiligen, Elected Member of AICPA Council

Board of Directors (Term Expires 2015)

Chad M. Allen Stephanie L. Bowen Mitchell Fiser Amber K. Goering Gregg C. Goodwin Dominic Ortiz, AICPA Member at Large of Council

Educational Foundation Board of Trustees Norman P. Hope, Chair Kenneth A. Selzer, Vice Chair Cheryl G. Hayward, Secretary/Treasurer John W. Denney M. Aron Dunn Johanna D. Lyle Paul T. Mason Gary A. Schlappe Gail L. Yarick Political Action Committee Denis W. Miller, Chair James T. Clark, Treasurer Amber K. Goering DeAnn A. Hill Eric T. Larson Kathryn J. Mitchell Michael V. Rogers Mary Rapp MacBain, CPA.CITP, CGMA President/CEO; Editor for Skyscapes Karen Mitchell, CPA, CGMA Finance Director Danielle Bulson, Marketing & Communications Manager; Copy Editor for Skyscapes Marlene Shellenberger, Administrative Manager Rita Barnard, Peer Review Administrator Contributing Writers: Thomas G. Stephens, Jr., CPA.CITP Lynn Fountain, CPA, CGMA Mary MacBain, CPA.CITP, CGMA

The big rocks were adjusted slightly with Member Engagement being combined with Member Growth into one initiative due to the interrelated aspects and shared action steps and desired outcomes. The big rocks for Advocacy and Professional Development have remained which is consistent with the Mission and Vision of the KSCPA. A new rock was developed this year: Promotion of the CPA brand. This new rock is also firmly aligned with the KSCPA’s Mission and Vision. These four big rocks will be the high level initiatives that staff and volunteers will be working on over the coming year with many action steps under each. Further, the retreat participants spent some time this year taking a deeper dive into the concept of engagement. They were asked to consider what exactly engagement is, what it means, what it looks like and what would define successful engagement. This process resulted in some dynamic action steps that staff and volunteers alike will be asked to implement over the coming year and should result in advancing the big rocks mentioned above. I participated with the team that worked on engaging the local chapters and can tell you, it will be exciting to see what can be accomplished at the local level that will ultimately drive additional engagement at the state level. There are plenty of opportunities for all members to become more engaged in the activities of the Society. The “20 up to 40” also participated in a leadership session at The Elms facilitated by Dr. Gerald Graham. Those participants had the opportunity to interact and network with the Board during a mutual reception and dinner. Unfortunately (for me) an impromptu birthday party interrupted the serving of dessert. Every member should be proud of what the Society has accomplished in the past few years and where we are heading. The Board has developed a sound strategic plan with action steps that staff and volunteers can marshal forward. The Society will continue to grow and strengthen through the diligence of the many volunteers and outstanding work by Mary and her team. Finally, don’t forget some important events coming up including the “Women to Watch” Awards Luncheon on September 13 in Wichita and the annual meeting on November 20 in Overland Park. Check out the KSCPA web site for additional events, conferences, CPE opportunities and more.

The Kansas Society of Certified Public Accountants, Inc. 100 SE 9th Street, Suite 502 Topeka, KS 66612-1213 Phone: 785.272.4366, FAX: 785.272.4468

Fully engaged,





Preparing for a CFO Role How does someone become a Chief Financial Officer (CFO)? While no single route to the “C-suite” exists, I hope to provide insights that could significantly increase your chances becoming CFO. According to a CFO magazine article, majoring in accounting or becoming a CPA has not historically been the best route to becoming CFO. The article reveals prior to the Sarbanes-Oxley Act, only 26% of all Fortune 1000 CFOs were CPAs. Most CFOs came from treasury, securities or banking backgrounds, not from accounting. Only after Sarbanes-Oxley did the CPA percentage rise to 45%. The same article suggests broad experience outside accounting is a key common denominator among CFOs. In the several year, I have shown accounting groups two resumes. The first resume has stellar accounting credentials:

When asked to predict this person’s logical next job, most accountants predict Resume A will become a large company tax or SEC compliance manager. These roles rarely lead to a CFO position. The second resume is vastly different:

Obviously, the second resume has far less financial experience. After all, they only have twelve weeks working experience in accounting! Yet, veteran financial managers say Resume B is more likely to become a CFO than Resume A. Conference participants often guess Resume B’s next job will to become the “only financial officer” (OFO) of a small to medium sized company. When asked what Resume B could do next, one CPA said “anything.” Your chances of obtaining the top financial spot are obviously much higher if you go to work for a smaller organization than a Fortune 1000 company. Smaller company accountants receive much broader experiences than someone in a large organization. If you do cash management for a Fortune 1000 company, you probably know your area very well, but not much about other financial issues. However, a small company financial manager may have experience in every financial area. When I took my first OFO job, my background looked much like Resume B. I had never closed a set of books in the real world yet found myself in charge of accounting, information systems and human resources. However, my broad background and corporate strategy knowledge allowed me to contribute to a major directional change for our company in my first six months. This lead to a sixfold sales increase over the next ten years. I then found myself as a large company CFO, with other financial professionals working for me. How are you progressing toward CFO level skills? There is a lot more to know to be an effective CFO than most accountants imagine. Anyone aspiring for a high-level job of any type should embark on a personal mission of lifelong learning. What can you do to increase your chances of rising to CFO? Passing the CPA exam is a great



start. However, you should view it as your journey’s beginning, not a guaranteed success ticket. The knowledge a CFO needs is much broader than what the CPA exam tests. If you are already a CPA, you already have the financial accounting background to become CFO. However, you may not know enough about strategy, finance, information systems, people management, negotiating and operations management.

I realize that reading twenty to forty books may seem like an insurmountable task. Most accountants are probably reading 12 books a year, not books that will help them in their job, but fiction for entertainment. For your career advancement, I suggest that you substitute something that will help you in your career for every third book. At that rate, you will have read 20 books in 5 years and 40 books in ten years. It will help your career. I guarantee it.

A good way to continue developing your skills is to enroll in an MBA program. The difference in program quality is immense. Top MBA programs focus on turning out top-level executives. Stretch yourself and try to attend the highest rated program that you can. U.S. News and World Report publishes a list of top MBA programs every year to help you evaluate your choices.


No time or money to get an MBA at this stage of your life? You can acquire the same knowledge through reading. Reading twenty to forty good business books will give you the equivalent knowledge of an MBA. If you ask accountants if they know anyone who reads that many business books, they will usually answer “the CFO or CEO.” If you want to rise in the corporate world, you should be reading too.

The Top Spot: Why More Companies are tapping their Finance Chiefs for CEO.

Don Durfee, CFO Magazine, October 1, 2005

About the Author

JOHN L. DALY, MBA, CPA, CMA, CPIM, is President of Executive Education, Inc., a developer of continuing education seminars specifically designed for corporate financial executives. Forty accounting associations offer Executive Education’s seminars. Before that, John spent fifteen years as chief financial officer for a Tier 1 automotive supplier and a large restaurant chain. He also has been interim CFO for several companies. You can reach him at

2013 KSCPA Business & Industry Conference October 16, 2013 Arrowhead Stadium Kansas City, Missouri CLICK HERE TO REGISTER Sponsored by 5

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Nonprofit of the Month

A gift to EmberHope, Inc. helps more than 2,300 at-risk youth and families receive the vital support and services to improve their lives. “Baby Cody was placed in Jackie’s foster home with a misshapen head. A helmet to reshape the skull cost $4,000. Our agency was able to help Cody because of the support we receive from generous supporters.” Our agency’s vision is to improve the lives of at-risk youth and families by offering innovative programs rooted in faith to inspire hope. Our program divisions Youthville, FCS Counseling and STRIVE use evidence based practices that focus on the needs of the individual so that they can be the catalyst of change. Our services include foster care, child specific adoption recruitment, residential treatment, secure care, counseling, parenting support and a strengths focused young adult transitional program. We strive to increase our reach to help more people change their lives, consider helping us, together we can build stronger communities. To learn more about how you can get involved or donate, visit

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Director’s Fiduciary Responsibility BY LYNN FOUNTAIN, CPA, CGMA, FOUNTAIN GRC LLC


raditionally, being appointed to a company’s Board of Directors has been considered an indicator of reaching a level of professional expertise and recognition. Especially in the pre Sarbanes Oxley years, presence on a corporate Board whether it be public, private or not-for-profit, was considered a great resume attribute. It was also a nice way to earn a bit of extra cash during the declining years of a person’s career. Post the occurrence of the Enron incident and the passing of the Sarbanes-Oxley legislation, the responsibilities and liabilities of individuals who serve as members of corporate boards has dramatically risen. Legislation is holding director’s strongly accountable to their fiduciary duties and shareholders and stakeholders are supporting that stance. To serve on a corporate board in today’s economy, an individual must be ready to spend considerable time understanding and executing on their fiduciary responsibilities to the organization. It is no longer acceptable to just appear at the quarterly meetings, provide input, and collect your director fees. Now directors are expected to be well prepared for meetings and step above and beyond traditional duties of quarterly board meetings.

8 AUGUST 2013 © Copyright 2012 Lynn Fountain, used with permission.

You might say to yourself, sure…accountability for all positions in an organization is much stronger these days. It is only reasonable to ensure Directors responsibilities are following the same trends. That is so very true. But as we have evaluated many various organizational roles throughout this webinar series, we’ve asked ourselves to view the current operation a bit deeper than just what we see visually. Most organizations have done a good job of ensuring their Board has an updated charter and aligns with all regulatory requirements. They have also followed the recommendations and mandates around ensuring a certain level of financial expertise exists on their Audit Committees. Those things are all very positive advancements in moving into the new arena of responsibility. But as in any case, there can be so much more that should be focused on. Here are a few questions to consider when evaluating the composition and performance of your Board: How were Board members selected? In year’s past, Board seats were often assigned by the CEO or executive team through personal appointments or recommendations for placement on the company’s proxy. Often, these recommendations came with long-term relationships and ties to the company or members of the executive team. CEO’s would surround themselves with individuals whose philosophy was much like their own. Thus the concept of “fiduciary duty” and “independent thinking” were sometimes hard to execute in reality. In today’s world, companies are encouraged to develop a robust process when selecting directors. Directors should be able to appropriately challenge management and ask the tough questions on issues such as strategy and budget. This requires the director to have a strong knowledge of the company’s business model but also to have a level of independence that will allow them to maintain an arm’s length relationship with the CEO. Do Directors have a full understanding of all relevant governance requirements, including their implications to directors and to existing board structure and dynamics? When was the last time your Board underwent a comprehensive training session executed by a third party or independent trainers? Does the board really understand all of the governance requirements they must abide with? Do © Copyright 2012 Lynn Fountain, used with permission. 9 AUGUST 2013

they take their role of risk oversight seriously? Do they properly communicate with the internal audit function and take a strategic interest in compliance and enterprise risk processes? If the answer to any of these questions is “no” or “I’m not sure”, then consider evaluating the need for independent training of your board members. If Board’s are to be held accountable for their responsibilities, as is appropriate, then it is only appropriate to ensure they receive relevant, timely and independent training on all areas of their fiduciary duty. Have you evaluated the composition and charters of each board committee in light of the listing and legal requirements, especially the nominating, compensation and audit committees? Legal requirements and potential personal liability are a strong concern for individuals who hold Board seats. It is important that both organizations, as well as directors, ensure individuals serving on committees are sufficiently qualified to discharge the expanded responsibilities of those committees. Also, companies must find ways to adequately evaluate how many members of their board are truly independent. Independence can be hampered by more than just the obvious conflict of interest. Long-term relationships or external interests can often complicate Board efficiency and effectiveness. If an independent director has served on the Board for an extended period of time, companies should question whether that director’s independence is impacted when they are attempting to execute their responsibilities. They may have unintended obligations or alliances to the CEO or other members of management that can inhibit their fulfillment of responsibilities. Long-term relationships are often difficult to severe however, in the best interest of both the company and the director; sometimes the severance of those relationships will create a more independent culture. What is the acceptable practice of Board communication with individuals outside of senior management? How often do members of your Board communicate with employees and or management that hold positions outside of the executive committee? Is this type of communication and interaction encouraged, discouraged, ignored? Some individuals may question whether this practice is even something that should be engaged in. There is probably no right or wrong answer here and it could very well depend on the organization as well as the director’s time

commitment. But, if the decision for limited communication is something that is championed by management, companies should evaluate their reasoning. Truly independent directors should be able to communicate with whoever they believe necessary to understand the innerworking’s of the company. This should not be limited to the executive team or individuals “approved” by management. Management must also evaluate whether they are sending unintended messages regarding the access of the Board to employees. In addition, frequent and open communication should be encouraged between Board members and the internal auditors, compliance professionals and legal professionals. If communication is limited to quarterly meetings, Board members themselves should be reaching out to these positions to gain clarity on issues. Does the Board have input into corporate strategy? The Enron, World Com and Tyco scandals all support the reasons why it is important for the Board to be actively engaged in the company’s corporate strategy. Pre Sarbanes-Oxley, Boards were often the “yes men” to management and were only included in corporate strategy discussions at the back-end when strategies were approved. By this time, management had fairly effectively developed the “company line” on the strategy direction. Boards were being told what management felt they needed to hear to approve the strategy of the company. New risk management procedures strongly suggest that the Board should be integrally involved in the strategy discussions and decisions. If the Board has not been sufficiently exposed to strategy discussions and alternatives, they may not have the information needed to make informed decisions that are best for shareholders. What is the Board’s role in understanding fraud investigations, whistleblower issues and corporate misconduct? One of my favorite phrases is “Sarbanes-Oxley was not put in place because someone forgot to document accounts payable from beginning to end.” Sounds simple, but we sometimes forget the importance of the concept of tone at the top, culture, code of conduct, conflict of interest, segregation of duties etc. Management can often get so caught up in the tactics of conforming to SarbanesOxley requirements that sometimes the forest gets lost in the trees!

If you don’t agree, ask yourself…what information is the Board given on fraud investigations, whistleblower issues or conflict of interest issues? Management will be quick to indicate “We report to our Board on these issues quarterly!” But is the reporting focusing on quantitative concepts and lack the quality reporting that allows the Board to appropriately evaluate the issues and ask probing questions. Many companies report to their Board’s the number of calls coming through the whistleblower hotline. But how often does the Board hear the true details behind those numbers? Are the true details known? Have the complaints been adequately investigated by the appropriate independent parties? Also, if corporate misconduct has been identified within the organization, are assessments made as to what, when and how the Board will be informed? If so, does this make sense? Of course you don’t want to overload your Board with insignificant issues, but who is making the determination of what is/isn’t significant? If the concept of corporate tolerance has not been fully vetted, ask yourself and your organization why. Does the Board have input to performance appraisals of the CEO, CFO, CAO officer? Can you ask this question of your management or is it considered a political question that is only relevant to a few insiders? This may sound harsh, but part of tone at the top is the Board assisting in the establishment of the culture. What better way to have an impact on the corporate culture than to have direct say into the performance evaluation of individuals within the organization who hold roles that have specific fiduciary duties to the company and to shareholders. I once had a Chief Audit Executive tell me that he had recommended to his management that the Audit Committee have input into his performance appraisal. That recommendation became a political career killer for the audit executive. Management took this recommendation as “inappropriate” and outside of the audit executive’s realm of authority. The CAE indicated that the recommendation came subsequent to a peer review conducted by the Institute of Internal Auditors. The peer review was sanctioned by the Audit Committee and management. However, of the handful of recommendations made by the reviewing body, the vast majority had to do with the Internal Audit department’s independence and connection to the Board and Audit Committee. Not only were none of the recommendations accepted, but the Audit © Copyright 2012 Lynn Fountain, used with permission.



Executive ended up leaving the company within the succeeding months. Regardless if these actions were connected, the fact that the recommendations were ignored and a long-term employee of the company (the CAE), left within months of the review, might beg some questions around the true independence of the Internal Audit department within the organization. If there are certain roles within the organization that “by charter” and “by design” have responsibilities requiring direct access to the Board or a Committee, some level of input by that body to the lead executive’s performance appraisal should be looked at as a proper governance step. This input is not an indicator of trying to elude management’s authority over personnel evaluations; it is an important consideration of the true independence and reporting relationship of individuals tasked with Board reporting responsibility. How is the evaluation of the Board of Directors conducted? This exercise can take on multiple scenarios. The most important aspect of the exercise will be strongly tied to the true intent of the evaluation. If the evaluation is just to comply with SEC regulations or other charter requirements, the process employed may not always be the most effective. Board evaluation processes can be tricky. There is the need to truly evaluate the performance of the Board and respective members while appropriately balancing any legal issues that could ultimately surface. Board evaluation processes are as varied as Boards themselves. Consider the variance in the following methods: Scenario One A high level board survey provided separately to each Board member. The survey is a set of standard questions related to fiduciary requirements with a simple “yes” or “no” check the box response. Scenario One – Benefits • A high level Board survey will still provide an overall evaluation of the performance of fiduciary duties. • If the survey is completed independently, each director will have the opportunity to answer the questions without any immediate pressure from management or other members. • From a legal viewpoint, this method may be © Copyright 2012 Lynn Fountain, used with permission. 11 AUGUST 2013

less controversial than open ended questions. Scenario One – Challenges • As with any survey process, individuals may interpret questions in different ways. Lack of some type of consistent delivery method may result in inconsistencies with interpretations. • A simple “yes” or “no” response does not provide a true evaluation of how effectively responsibilities were executed. • A survey that is only provided to the Board may not allow for a full 360 degree assessment of performance. Scenario Two A third party independent review of the Board performance that includes: individual interviews, facilitated Board discussion, review of charters and Board minutes and a complete independent assessment of effectiveness. Scenario Two – Benefits • The ability to execute an independent third party assessment may provide the best insight into your company’s governance process. An outside party assessing governance elements would not be encumbered by political ties or other relationships that could make evaluation techniques difficult. • The ability to separately interview Board members and management utilizing open ended questions may provide the best insight to process effectiveness. • The ability to facilitate an interactive discussion with the Board can provide valuable insight to how duties are being executed. Scenario Two – Challenges • If proper due diligence is not performed when selecting the independent third party to perform the assessment, the organization may experience challenges. These challenges can be both positive and negative. - If an assessment body is selected that utilizes very strict, standard evaluation attributes that are not in line with the objectives and processes of the organization, the evaluation assessment may not be reflective of the needs of the organization. - On the other hand, if the assessment body selected has some connection to the company either with past engagements or individual relationships, the assessment may not be as independent as expected. • The effective execution of a truly independent

assessment, interview process and facilitated session can bring with it many organizational and political challenges. This fact can often be limiting factor in being able to execute such an assessment. Scenario Three An internal review by someone within the Legal, Compliance or Internal Audit group that includes individual interviews, review of charters, discussion with management and an overall assessment of effectiveness. Scenario Three Benefits • Utilizing someone internally to perform the assessment can provide advantages. An internal evaluator may understand certain intricacies and aspects of how the Board operates and is managed that may provide them with some insight into Board effectiveness. • Utilizing an internal resource may be more cost effective for the organization. Scenario Three Challenges • This method may present the largest “political” challenges and implications related to assessment accuracy. An internal resource may have unintended pressures and expectations established on the manner in which they execute the assessment as well as the overall results. Which alternative would you view as that which would provide the best assessment for your organization? There is no one right answer. It can depend upon your organization culture, regulatory requirements as well as overall reason for performing the assessment. Whatever method selected, the organization should understand both the benefits and the challenges of the assessment process. How does the Board respond to identification of internal control issues? Yes, we like to believe that the Board has better things to do than to listen to control gap issues identified by internal audit, compliance or the external auditors. But, part of their fiduciary duty is oversight of the audit process as well as Sarbanes-Oxley compliance. So as hard as it is to listen to what may be deemed as control issues that management should address, the Board must “set the right tone”, and ensure they focus on issues brought to their attention.

Of course, it would be helpful if the Board could provide some guidance to those functions on their risk tolerance and or risk appetite. Ultimately, everyone wants to utilize the Boards time wisely. Knowing their expectations surrounding when they feel they need to be knowledgeable about issues identified can be a very important attribute to strong communication. But ultimately, the Board must remember that all of the groups that will provide them input on issues also have their own fiduciary duty. Sometimes judgment and personal assessment drive the need to further discuss an issue with Board members. If the Board isn’t willing to accept those occasional inputs, they may be sending a message to the organization that they don’t fully trust the personal judgment of those hired to assess various issues. That can be a troubling situation. Summary Accurately assessing Board performance and effectiveness is a crucial aspect in today’s corporate governance world. Boards and management must all understand not only their individual responsibilities related to execution of Board duties but also the challenges related to effectively assessing the execution of those responsibilities. Ultimately, if it was an easy process to do, there probably wouldn’t be so many alternatives and debates surrounding the manner in which it should be executed.

Click here to register for this self-study session Part of a 14-part Series Governance, Risk & Compliance Click Here to View More Don’t Miss Business & Industry Conference Whether your’re in Public Practice or Business & Industry, this a can’t miss conference!

October 16, 2013 - Arrowhead Stadium Click Here to Register!

© Copyright 2012 Lynn Fountain, used with permission. 12


What Every CPA Needs to Know About Patient Protection & Affordable Care Act

September 30-October 4 • 6 Hours CPE, CLE & Insurance Credits Dennis Gerschick, JD, CPA, CFA, Regal Seminars HIGHLIGHTS: • Receive an overview of the law and its impact on small businesses in Kansas and Missouri. • Learn how to address the most frequently asked questions by small business owners about the “Act.” • Learn how to address law from the business (including HR) and financial perspective of a business. • Receive specific answers and strategies designed to help clients maximize the benefits of the “Act.” • Receive tips on how to increase your consulting, financial planning, and tax practices to current and new clients.

• Learn how to market your services through community outreach activities (PowerPoint, brochure ads available to course participants). Brochures sponsored by Ken Selzer, CPA. • Learn where to find the information you need to answer questions.

Register Today! September 30 - Topeka - Kansas Association of Insurance Agents - 9:30a.m.-3:15p.m. October 1 - Wichita - Wichita Area Association of Realtors - 10:30a.m.-4:10p.m. October 2 - Dodge City - Dodge City Public Library - 9:30a.m.-3:15p.m. October 3 - Salina - Rolling Hills Wildlife Adventure Center - 9:30a.m.-3:15p.m. October 4 - Lenexa - Lenexa Chamber of Commerce Center, The Barn - 8:00a.m.-1:40p.m.

Can’t attend in person? We’ve got a webcast just for you! September 30 - Webcast - 9:30a.m.-3:15p.m. 13


“20 up to 40” Session 3: Leadership Training The “20 up to 40” Leadership Program held its third session at The Elms Hotel and Resort in Excelsior Springs, Missouri on the 8-9 of August. The group was led in leadership training by Dr. Gerald Graham. Dr. Graham is currently the R. P. Clinton Distinguished Professor of Management and former Dean of the Barton School. He also has been the recipient of the Wichita State University Excellence in Teaching Award and the Barton School of Business Teaching Award (multiple times). His latest book is titled, Lead: How Effective Leaders Get Things Done. The “20 up to 40” participants also had an opportunity to network the KSCPA board of directors during a networking dinner on the evening of August 8.

It’s About Relationships

It’s About Leadership It’s About Your Career.

Click here to see more photos from the reception 14


KSCPA Board Retreat KSCPA Board of Directors Holds Retreat to Update Strategic Plan The KSCPA Board of Directors, Chapter Presidents, and Ad Hoc members of the board met at The Elms Hotel and Resort in Excelsior Springs, MO to update the KSCPA strategic plan. Tom Hood, CPA, CITP, CGMA, president and CEO of the Business Learning Institute, facilitated the very productive meeting. The event culminated in the identification of the “big rocks” for the coming years as well as action plans to be implemented by the KSCPA team and leadership. Action plans will be reviewed at the annual meeting on November 20. “Big Rocks” for the coming year are: Member Engagement & Growth Promotion of the CPA Brand Advocacy Professional Development Click here to read the complete report from Tom Hood, CPA, CITP, CGMA.


Click here to see more photos from the retreat AUGUST 2013

THANK YOU! Thank you to the following Board members and chapter officers who attended the 2013 KSCPA Strategic Planning meeting. This meeting is imperative to the success of the KSCPA. Chad Allen - Acord Cox & Company Matt Bellomo - Davis & Bellomo, PA Gary Boomer - Boomer Consulting, Inc. Jim Boomer - Boomer Consulting, Inc. Becky Casey - Pittsburg State University Sean Copp - Independent Salt Company Aron Dunn - Allen Gibbs & Houlik, L.C. Heather Eichem - Wendling Noe Nelson & Johnson, L.L.C. Mitch Fiser - Fiser Group, PA Carolyn George - The Federal Savings Bank Charlie Gnizak - Fort Hays State University Amber Goering - Amber K. Goering, CPA, P.A. Gregg Goodwin - Bever Dye LC, Attorneys at Law Kate Grant - Kirkpatrick Sprecker & Company, LLP Michele Herzog - Herzog Financial Solutions, LLC Christine Hilton - Grant Thornton LLP Melinda Hitz - City of Garden City Jay Langley - Clubine & Rettele, Chtd. Matt List - BKD, LLP Mary MacBain - KSCPA Karen Mitchell - KSCPA Dominic Ortiz - Prairie Band Potawatomi Entertainment Corporation Christina Ricke - Kennedy and Coe, LLC Michelle Schneider - Adams Brown Beran & Ball, Chtd. Bob Schuster - Kennedy and Coe, LLC Jennifer Wold - Grant Thornton LLP Jim Wurbs - Dunning & Associates CPAs LLLC 16


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Financial Reporting Framework for Small and Medium-sized Entities - Wells

Kansas City, MO 8/AA


Audit Workpapers: Documenting Field Work - Rouse

Kansas City, MO 4/AA


Audit Workpapers: Reviewing Field Work Documentation - Rouse

Kansas City, MO 4/AA


Compilation Review Update - Rouse

Kansas City, MO 4/AA


Advanced Compilation and Review Issues - Rouse

Kansas City, MO 4/AA


A&A Year in Review: Exploring the Latest Issues and Challenges


The Best Individual Income Tax Update Course by Surgent McCoy - Kravit Kansas City, MO 8/TX


12/5 How to Identify, Explain & Present Pertinent Financial Infoto Non-Accountants - Park 12/19

Trusted Business Adviser II - Rigby

AA - Accounting & Auditing ET - Ethics

TX - Taxation

ACPEN, CalCPA, CPA Crossings & Surgent McCoy offer webcasts and webinars to KSCPA members. Click the icons to learn more!



Kansas City, MO


CS - Consulting Services

YB - Governmental-Nonprofit - Yellow Book


Kansas City, MO 8/AA

Kansas City, MO 8/AA

KEY CLE - Continuing Legal Education TC - Technology


KSCPA ONLINE SELF-Study Click here Register NEW! The Psychology of Fraud by Toby Groves ( 2 hours Ethics) Coming Soon! Gary Allerheiligem Update on the Governor’s Tax Bill

ANDERSON’S AUDIT EXPRESS Anderson’s Audit Express is a unique, practical-knowledge series designed to help you improve the audit process and be more profitable. It was created and led by an experienced auditor following the audit the process from planning to opinion. The series provides tips for successful auditing for the audit team and client.

ANDERSON’S NONPROFIT EXPRESS Anderson’s Nonprofit Express - 6 Sessions - Designed for CPAs and auditors in public practice that perform audits of nonprofits or governmental entities. . It was created and led by an experienced auditor following the audit the process from planning to opinion. The series provides tips for successful auditing for the audit team and client.

DRINON’SLEADERSHIPEXPRESS Drinon’s Leadership Express is based on a highly-researched and applicable four-point concept. It is targeted to intermediate to advanced leadership levels in business and industry. It focuses on managing relationships, results, change and decisions and provides practical information for improving communication with followers. It offers: unique ideas for getting things done in this busy day and age; essential concepts for navigating today’s rapid change curves; and useful approaches to solving problems and making decisions.

FOUNtain’s governance express Fountain’s Governance Express is a series designed allow participants to see into the inner workings of the corporate world and how Governance, Risk and Compliance (GRC) function in that environment. The series shows participants how to build and monitor effective GRC programs. Enterprise Risk Management (ERM) and Fraud are also emphasized.



MEMBER/VENDOR NEWS Jennifer Bering, CPA From the Hutchinson News: Jennifer Berning, Hutchinson, has joined Adams, Brown, Beran & Ball, Chartered. She graduated Summa Cum Laude from Kansas State University with her Bachelor of Science in Business Administration. Berning has over 19 years of experience in the accounting industry. Congratulations, Jennifer! Jim Clark, CPA Jim Clark, Topeka, has been nominated as Secretary of Administration by Governor Sam Brownback. Jim is former Vice President of Kansas Gas Service, now a division of Oneok, Inc. Prior to that he was Vice President at Westar, Inc. Jim earned a bachelor degree in Accounting from Regis University in Denver and is a Certified Public Accountant. Jim currently serves as the Chairman of the Ethics Committee of the Kansas Society of Certified Public Accountants. He was also the President of the society for a one-year term in 1999-2000. The appointment will require confirmation by the Kansas Senate. Congratulations, Jim! DeAnn Hill, CPA DeAnn Hill, Baxter Springs, has been hired as the Chief Financial Officer for the State of Kansas. She has her own firm, DeAnn Auman Hill, CPA in Baxter Springs. DeAnn was a 2012 AICPA/ KSCPA “Women to Watch� experienced leader. She is also a past president of the KSCPA and is a nominee to the AICPA board of directors. Congratulations, DeAnn!

Elaine King, CPA From the McPherson Sentinel: Elaine King, McPherson, has joined Swindoll, Janzen, Hawk & Loyd, LLC. She moved to the area from Oklahoma. She is a graduate of Southwestern Oklahoma State University and spent the last eight years as a tax manager at Chaparral Energy in Oklahoma City. Prior to her position at Chaparral Energy, she spent over 20 years in public accounting. King will concentrate on tax services and use her expertise in oil and gas to futher assist clients in their success. Congratulations, Elaine!

Got News? Contact Danielle,, to share your news.




April/May Exam Testing Window CPA Passers Katherine Hale Garden City

Top Scorer

Daniel Chaney Wichita

Mark Ball Kansas City Chad Blasdel Wichita Joshua Callahan Hays Phillip Case Wichita Megan Erickson Overland Park Caleb Flax Wichita Jude Fox Hays

Brett Henry Hays Douglas Johns Wichita Sara Kendall Olathe Alyssa Leonard Wichita Lijia Mo Manhattan Andrea Molinari Valley Center Jennifer Ney Topeka Jimmy Nguyen Mission

Rachel Ogle Topeka

Turner Polzin Hoisington Grace Rizza Hesston Jodi Slaton Wichita Carrie Smith Manhattan Kendra Stephens Rogers, AR Issac Swick Wichita April Taube Wichita Mindy Waugh Wamego Stephanie Wheelock Medicine Lodge


Steven K. Croft FMC Technologies Lenexa

Jenifer Hitschmann BKD, LLP Wichita

Jessica R. Schmiedbauer Kennedy and Coe, LLC Wichita

Bryan Elmore Criser, Gough & Parrish, LLC Wichita

Brian T. Ring Kennedy and Coe, LLC Salina

Kori Zey BKD, LLP Wichita

Cathy A. Goodger CG Consulting, LLC Overland Park

John M. Shoemaker CBIZ MHM LLC Leawood

Katherine Hale Kennedy and Coe, LLC Garden City

Angela Murphy AEMurphy Consulting Services LLC Overland Park

Brett R. Henry Adams Brown Beran & Ball, Chtd. Hays 22 AUGUST 2013

Turner J. Polzin Adams Brown Beran & Ball, Chtd. McPherson

Student Members Shane F. Garrison Emporia State University Richard O. Gooch Wichita State University Elizabeth A. Milner National American University




AARON E. CARRIKER Senior Financial Professional - Currently Seeking New Role

Aaron Carriker: experienced financial professional seeking new senior accounting, controllership, or CFO role. Over 15 years of private accounting experience with State of Kansas CPA certification. Majority of experience has been within the family owned manufacturing sector. If your organization has positions available, please contact me at or 913-432-5657 and I will forward my resume, cover letter, and reference list.

and accounting functions. The successful candidate must possess: a degree in Accounting, Financial, or Business Administration; CPA license; 7-10 years progressively responsible related financial and accounting experience; proven supervisory experience; exceptional communication skills; advanced skills in the use of financial/ accounting software including Microsoft Excel; as well as problem and analytical skills. Agricultural Accounting is preferred but not required. Forward resume to: Cattle Empire, LLC 1174 Empire Cr. Satanta, KS 67870, or Equal opportunity employers. M/F/D/V

ARNE REINERT CPA, LLC Staff Accountant We have a great opportunity for a staff accountant with one to five years’ experience to work for a growing CPA firm in the small town atmosphere of Lindsborg. We service a wide range of small businesses, agricultural entities, and individuals with tax and accounting issues. QuickBooks experience is a plus. We do not perform audits. We provide competitive compensation and benefits.

Experienced CPA I am seeking an experienced CPA in the areas of tax and accounting. A CPA firm located in Medicine Lodge, Ks, about 80 miles southwest of Wichita with a wide range of small businesses and individuals. I do not perform audits. I provide competitive compensation and a benefit package. There is a great potential of future ownership.

Lindsborg is an ideal location for a family or someone just looking for a quiet setting. The community includes a great school system, friendly neighborhoods and many outdoor activities.

Contact: Cecil Newman, or 620.886.3708

Contact: Arne Reinert 785.227.3000

fhlbank topeka

Cattle empire Chief Financial Officer Cattle Empire, LLC, one of the largest family owned commercial cattle feeding operations in the United States and owners of multiple affiliates, is looking for the right person to assume the role of Chief Financial Officer. Leadership, skill, knowledge, high trust and ethical standards must be executed using hands-on skills in all areas of the Company; finance 24



Accountant - Special Projects FHLBank Topeka’s products and services help our member banks provide affordable credit and support housing and community development efforts. We are accepting resumes for an: Accountant – Special Projects The individual in this position will assist with special projects or research and perform assigned accounting procedures under all areas of the accounting department to include performing daily, monthly, quarterly and annual processes within any of the accounting operations functions as well as

CLASSIFIEDS the quarterly financial reporting functions and research and data integrity functions. Will cross-train in all areas of the accounting department through assignment by the Chief Accounting Officer. Qualifications • Bachelor’s degree in accounting or four-year college degree plus equivalent work experience required and 1+ years of relevant experience. • CPA, CMA, or CIDA certificate and/or MBA or MAcc preferred. • Knowledge of generally accepted accounting principles and theories required. • Knowledge and experience with MS Office products and accounting software applications. • Knowledge of appropriate internal controls. • Efficient 10-key operations. • Excellent written and verbal communication skills. • Ability to work the number of hours required to meet the demands of this position.

Johnson county, ks

In addition to a rewarding, team-oriented work environment, FHLBank Topeka offers opportunities for growth and development, an attractive benefit package including health and dental insurance, 401(k), short-term incentive plan and much more.

For information and to apply, visit jobs-available. Closes 8/23/2013

To see a more detailed job summary and apply for this position, go to the Bank website at EOE

frontier farm credit Business Services Officer/CPA Accounting and/or finance professional to grow and service tax planning, tax return preparation and ag financial consulting portfolio. Familiar with ag production, records, business structures. Successful Business Services Officer candidate thrives with high volume of responsibilities in both developing business and completing the fee-based services. Excellent communication and relationship skills. Requires related bachelors degree with 3-5 years similar experience. CPA or Enrolled Agent a plus. Employee position with excellent benefits. Résumé and cover letter to Careers@FrontierFarmCredit. com. Full description at




County Auditor Johnson County Government in Olathe, Kansas is seeking applicants for County Auditor. Johnson County, with an operating budget of $842.7 million and Aaa/AAA bond rating, is one of the nation’s premier counties, providing comprehensive services to its citizens in its role as a leading organization in the KC metropolitan area. The position serves as Principal Officer of the Audit Services Division, reporting to the Board of County Commissioners. The County Auditor is a key participant in divisional and organizational strategic planning and provides internal guidance to departments/agencies of the County.

KENNEDY AND COE, LLC Senior Associates - All Locations If you’re a CPA and want to experience a different way of serving clients, look no further. Be a key business partner for our clients and help them strategically grow their business. You’ll work in a team environment with other accounting professionals to develop creative ideas and deliver significant value to our clients. Kennedy and Coe is ranked as one of the Top 100 accounting and consulting firms in the U.S. Clients tell us we’re different because we are genuine people, generating creative ideas and delivering valuable results. For more information or to apply, visit careers. EOE





Tax Manager - Public Accounting

Seeking experienced CPA for office in western Kansas. Small business and agricultural tax and municipal auditing experience preferred. Advancement potential.

We are looking for the right people to join our firm with a progression plan to partner in 3-6 years. Our office size provides an excellent opportunity to work directly with partners and build business relationships through direct client contact.

Contact Don,, 785.299.0280

MELVIN L. BIRD, CPA Tax Supervisor or Manager Desired We need a full-time or part-time experienced tax reviewer and preparer to help our clients. Flexible hours available. Be a key professional with our clients and associates and help develop value to our clients. We provide accounting services and tax preparation for numerous types of businesses and individuals. Qualifications: 1. CPA or E.A. with 5 years experience or have at least 8 years of practical experience. 2. Familiar with QB and other tax/accounting software. 3. Possess good interpersonal skills to help build and maintain client associations. 4. Problem solver. 5. Good business knowledge. 6. Eagerness to learn tax law changes. Qualified candidates should email resumes to: melvin_

Salaries are determined individually, with educational achievements, business experience, and other pertinent factors being considered. Compensation/benefit packages are competitive and advancement potential is unlimited. Requirements: •CPA • 5+ years in public accounting • Experience with complex individual and entity tax matters • Ability to participate in business development • Interest/experience in litigation support/business valuation a plus Contact Larry Sell,, 316.264.2335.

RONALD CASTOR LC Staff Accountant Seeking a CPA with 3 -5 years of experience to provide compiled financial statements, accounting and tax services. Knowledge of and practical experience with various accounting & tax software, MS Office and exceptional written and verbal communication skills required. Contact Ronald Castor,, 913.469.9113

WICHITA, KS CPA FIRM LOOKING TO ACQUIRE SMALL SOLE PROPRIETOR Are you ready to retire? We’re looking to grow and are interested in acquiring a small sole proprietors firm in the Wichita, Kansas area. We are a tax and consulting firm that also prepares compilations and reviews. If you are looking to sell your firm, please contact us to see if we’d be the right fit for your clients. Email:

SS&C SOLUTIONS, INC. Experienced Accounting Professional Accounting professional sought to join our Client Accounting Services team. This team provides bookkeeping, payroll and financial statements services to clients across the United States. Bachelors or associates degree in accounting plus 2 years experience required in public accounting, health care experience is also a plus. Position is in Lawrence, KS office location. Visit for complete details.




woodward hunt & associates cpa’s pc Experienced CPA We are seeking an experienced CPA in the areas of tax and accounting. We are a 9 person CPA firm located in Overland Park with a client concentration of physicians and dentists as well as other small businesses and individuals. We do not perform audits. We provide competitive compensation and a full benefit package. Please e-mail resume to or mail to Kenneth Woodward, CPA, 7015 College Blvd, Ste 750, Overland Park, KS 66211.

Leadership Training for Experienced Partners Enhance your leadership of teams, service lines, practice areas, and your firm in our Experienced Partner Leadership Program. From mid-September 2013 to mid-September 2014, participants will engage in: • Tailored one-on-one coaching sessions • Two, two-day in-person workshops to explore leadership, practice management, and business development strategies with other partners who are emerging as practice leaders or managing partners in their firms • Virtual roundtables on relevant, strategic topics facing the profession • A personalized program project The one-year investment to become an inspiring leader who drives change, initiates growth, and produces breakthrough results is only $4,995. For more information, email Tamera Loerzel or call 952226-1780.

Interested in Posting a Classified? Click Here! Check Out the Updated KSCPA Homepage



Mark Your Calendar! 2013-2014 EVENTS Women to Watch Luncheon with Leslie Murphy September 13 - Wichita

CONFERENCES/WORKSHOPS Women’s Leadership Conference September 13 - Wichita

KSCPA PAC Fundraiser for Govenor Brownback

ACA Seminars with Dennis Gerschick

November 19 - Overland Park

September 30-October 4

“20 up to 40” Session 4 - Graduation November 19-20 - Overland Park

Business & Industry Conference October 16 - Kansas City Arrowhead Stadium

Professional Issues Update Jim Metzler, VP, AICPA November 20 - Overland Park

Business Valuation Conference

Annual Meeting & Leadership Summit

63rd Annual Kansas Tax Conference

November 20 - Overland Park

November 21-22 - Overland Park

CPA Day at the Statehouse & Legislative Reception

October 18 - Lenexa

K2’s Heartland Technology Conference December 12-13 - Lenexa

January 16, 2014 - Topeka “20 up to 40” Session 1, Day at the Statehouse & Legislative Reception

Governmental & Nonprofit Accounting & Auditing Conference

January 16-17, 2014 - Topeka

June 9-10, 2014 - Wichita

Coming Soon! CPA Passers Dinners January - Topeka - Overland Park - Wichita


Coming in June 2014! Business & Industry Conference - Wichita Conference on Kansas Taxes - Mayetta


Designed for the profession, by the profession.


Skyscapes August 2013 "Strategic Planning" Issue  
Skyscapes August 2013 "Strategic Planning" Issue  

Newsletter of the Kansas Society of CPAs.