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MAY 2014



Fraud Awareness

Skyscapes May 2014 Business & Industry Issue


AICPA CGMA Competency Framework


Minimize Risks from Viruses

Fraud Awareness




essons can be learned in many ways. Some of us are learn by observing past behavior while others learn by experiencing things first hand. Today, on our topic of fraud awareness, we are going to explore a hypothetical case example to identify behavior and controls that may have prevented unwanted actions.

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Once upon a time, in a far-away galaxy, there existed an ambitious businessman. This businessman had stumbled onto a unique extract that, when properly mixed, provided enormous health benefits to the consumer. For many years, the businessman worked to perfect the formulation. After years of research and testing, the businessman was ready to bring the product to market. He began his operation as a small business with one manufacturing facility. His primary goals were to provide the consumer with a quality product at a fair price and to return a fair profit. The product was a huge success and indeed provided the many health benefits it promised.

AICPA CGMA® Competency Framework: A Positive Step toward the Future of Learning Minimize Risks from Viruses by Randy Johnston, MSC, MCP, K2 Enterprises

© Copyright 2012 Lynn Fountain, used with permission.

Nonprofit of the Month - Youth Entrepreneurs IASB & FASB Issue Converged Standard on Revenue Recognition Fraud Awareness by Lynn Fountain, CPA, CGMA 2014 Spring Conference & Workshop Schedule June 2014 Courses Alternative CPE Conference, Workshop and Event Wrap-up Member & Vendor News In Memoriam New Members New CPA Passers From the Kansas Board of Accountancy From the AICPA Classified Ads Mark Your Calendar! Events & Conferences/Workshops

ON the cover Museum at Prairiefire, part of the new Prairiefire development in Overland Park. The museum features cutting edge, worldrenowned exhibitions and view authentic artifacts from the American Museum of Natural History, one of the most celebrated museums in the world. Click here for more information 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 © 2014 Kansas Society of CPAs; Topeka, KS. All rights reserved.


MAY 2014

FROM THE CHAIR PERMIT RENEWAL ENCLOSED Executive Committee Melinda A. Hitz, Chair,

Designated Member of AICPA Council

Michelle A. Schneider, Vice Chair Matthew R. List, Secretary/Treasurer M. Aron Dunn, Immediate Past Chair, Liaison to Kansas Board of Accountancy

Board of Directors & Ex Officios* (Term Expires 2014)

Matt C. Bellomo Rebecca J. Casey Sean M. Copp Charles Gnizak James A. Wurbs *Gary C. Allerheiligen, Elected Member of AICPA Council * Kathryn J. Mitchell, KSBOA Liaison Board of Directors & Ex Officios* (Term Expires 2015)

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

Board of Directors & Ex Officios* (Term Expires 2016)

Kate Grant Daniel F. Kjergaard Jay D. Langley Christina M. Ricke Damon Ward *L. Gary Boomer, AICPA at Large Member of Council *DeAnn A. Hill, AICPA Board Member

Educational Foundation Board of Trustees Norman P. Hope, Chair Kenneth A. Selzer, Vice Chair Cheryl G. Hayward, Secretary/Treasurer Monty Allen Dan Crumb Melinda A. Hitz Johanna D. Lyle Paul T. Mason Gary A. Schlappe Gail L. Yarick Political Action Committee Denis W. Miller, Chair Amber K. Goering , Treasurer Gary C. Allerheiligen James T. Clark Cheryl Hayward 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, Events & Administrative Manager Rita Barnard, Peer Review Administrator/ Ethics Coordinator Contributing Writers: Lynn Fountain, CPA, CGMA Sandra Wiley 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


MAY 2014

I just got back to my office after attending the AICPA Spring Meeting of Council to find my permit renewal in the mail. I used to dread having to complete the renewal application but have since started using the KSCPA Education Tracker. This is on the KSCPA website and I encourage you to check out this time saving application. First, if you register and complete a course with KSCPA the information is automatically entered for you. Courses taken outside the KSCPA can be entered by you at any point in time. This keeps your education credits up-to-date at any given point and takes the stress of getting this application completed. If you have found that you need a few more hours before June 30, the KSCPA has some knockout opportunities for you. The Society has held four events since May 1st that received excellent overall ratings by the participants. The month of June brings more exceptional educational opportunities: Either Live or by Videocast Governmental & Nonprofit Accounting & Auditing/Wichita - 23 present Business & Industry/Wichita - 10 presenters Conference on Kansas Taxes/Mayetta - 25 presenters 12 Seminars in Wichita & Metro Areas Chapter Events I personally am looking forward to the Governmental & Nonprofit Conference on June 9-10 as we have partnered with The Kansas Government Finance Officers Association to bring some great quality education and speakers. Because of our collaboration with the KSGFOA, Stephen Gathier is the featured presenter. Stephen is well known as the author of the “Blue Book.� There is also a cast of amazing presenters at this and the other upcoming conferences, so please take advantage of these premier educational opportunities. Several seminars are scheduled so you can delve into specific topics. Summer is upon us, wishing all of you a great one. If you want to send your rainfall out here to Western Kansas we would really appreciate it! Kind Regards,

Melinda Hitz


AICPA CGMA® Competency Framework: A Positive Step toward the Future of Learning By Mary Rapp MacBain, MS, CPA.CITP, CGMA

In the article The Future of Learning-It’s All About Competency (March-April 2014 Skyscapes), the cognitive domain of Bloom’s Taxonomy is defined. This taxonomy is used by educators to classify learning objectives and shows the cognitive domain evolving from knowledge to evaluation. A side benefit of this model is the application of different verbs at each level which can be used to build a competency model. At the May 2014 AICPA Spring Council Meeting, a slightly different form of the cognitive domain was presented by Lawson Carmichael and Anthony Pugliese who spearheaded the efforts of a task force charged with recommending a new learning model for the profession. The AICPA Council resolved to “provide leadership to evolve the profession’s learning strategies and structure…” If we examine the programs available today which are primarily instructor-led, group study, conferences, on demand (selfstudy), and webinars (Understanding & Remembering), we obviously must make major changes to strategies and structure. For our professional associations, including state associations, to maintain their leadership roles in continuing education, the focus must move to competency (Applying, Analyzing, Evaluating, and Creating). Measuring competency while enabling compliance with continuing education regulation is a problem we need to solve. The professional associations were the first to create continuing professional education programs for CPAs and should continue to take the lead in working with NASBA, state boards of accountancy, and others to more 4

MAY 2014

appropriately measure compliance to continuing professional education. In their Council presentation, Carmichael and Pugliese pointed out that the expectations of CPAs today about learning have changed. It is about competency plus compliance; must be relevant and contextual; participants want to participate in collaborative and interactive programs; and mentoring and coaching play a role in how we learn. CPAs today want learning to be just in time, blended, and they want to use technology. In reality, only 10% of learning is formal and the majority comes from informal (20%) and experiential learning (70%). Creative ways to provide and measure this mixture of learning must be developed. Concisely stated, The Future of Learning Task Force made these following recommendations: • Innovate and Experiment • Ignite a Passion for Learning • Make Learning Personal • Measure What Matters The Kansas Society of CPAs leadership will plan for the development of innovative formal and informal programs that our members will be excited about because they are relevant. We will work to gather information for our members and organizations about experiential learning. We will work with the Kansas Board of Accountancy to formulate new ways to measure outcome. We will embrace change in a timeframe that makes sense.

feature article The recently-released CGMA® Competency Framework is a positive step toward focusing on competence in life-long learning and can be used to build a learning management system which includes formal, informal, and experiential learning. The framework is broken into four knowledge areas. This framework recognizes that as a CGMA® moves from staff/ entry level to supervisor/manager to senior manager and into the C-suite, the percentage of learning that takes place in each of the knowledge area changes. It is inordinately obvious to anyone that leadership skills are more important for those in the C-Suite than to someone who is entry level and focuses on self-management. Nonetheless, each proficiency level must possess these four knowledge areas. Once the skill is learned, however, the individual should focus on competency in other knowledge areas. The competency framework exquisitely uses verbs which the taxonomy facilitates to describe activities within each knowledge area. For example, in the technical area of Management Reporting and Analysis-Financial Analysis, the following is an excerpt from the Competency Model: FOUNDATIONAL (staff/entry level) • Use financial ratio analysis to evaluate the organization’s performance … INTERMEDIATE (supervisor/manager) • Apply common quantitative techniques … ADVANCED (senior manager) • Review outputs of financial and cash flow analysis to develop views and guide management … EXPERT (executive/C-suite) • Interpret and translate financial statements to drive strategic and successful business decisions and growth …

It will take time to build or rebuild our competency frameworks and to adapt our learning methodologies and appropriately measure the outcomes. It is with some relief, however, that the vision is here and that we have the desire and ability to make the changes necessary so our profession will continue to have a solid footing in our economy. In summary, the key takeaway is to recognize that professional competency is the focus of life-long learning. The types of lifelong learning for continuing education credit and how it is delivered and measured is going to change. The collaboration necessary to achieve this change will continue, and the CPA profession will maintain its brand and image as the trusted adviser because we value learning and understand the need to be competent.

About the Author

Mary Rapp MacBain, MS, CPA.CITP, CGMA, is the President/CEO of the Kansas Society of CPAs. She earned her Masters of Science in Accounting from Wichita State University in 1983 and has worked as a professional accountant for 31 years. As an information systems consultant, Mary helped hundreds of individuals learn financial and management reporting, bookkeeping, software programs, and systems, which is why she understands that application is the major learning experience. She has presented over 100 formal presentations at professional conferences and was an adjunct instructor at three universities and one junior college. She has served on numerous committees and task forces for the KSCPA and the AICPA including the AICPA’s IT Competency Model, IT Executive Committee, Women’s Initiatives Executive Committee, and National Accreditation Commission. As the CEO of the KSCPA, Mary implements the strategies of the leadership, works with a great team, and opens as many doors as possible for the members she serves.

Not a CGMA? Join over 40, 000 Management Accountants who benefit from this designation. Members of the KSCPA receive a discount - Dues are only $100 per year. If you meet the experience requirment, as an AICPA Voting Member, you qualify for the CGMA credential.


MAY 2014



Minimize the Risks from Viruses By Randy Johnston, MSC, MCP

Our K2 team of professionals take great pride in teaching about the latest technology. We also try to be practical and realistic in our recommendations. The K2 team has some really spectacular people, including CPAs, and proficient technologists. During the past year, we have been warning people that the current virus attacks are more aggressive and invasive than any we have seen in the past. These attacks are frequently delivered via email, social media, such as Facebook, and embedded in PDF files. The anti-virus companies are having more issues keeping their software ahead of the threats and the creators of viruses and malware are becoming smarter in their attacks. Even if your IT team or managed service provider is diligent in updating your firewalls and anti-virus (AV) signatures, your organization is still susceptible to attacks. So how do we minimize and mitigate this risk? Further, why are we so concerned about the attacks now? Haven’t viruses been around since the early 1980s? The first virus discovered in the wild was the Elk Cloner on the Apple II in 1981 and the first PC virus, Brain, was reported in 1986. Some key things to know about viruses include: • This year will bring new virus attacks with the discontinuance of security updates for Windows XP and Office 2003. • Aggressive viruses like Cryptolocker are charging ransoms for an unlock key after systems have been infected. CPA attendees at our webinars report these keys work and have been worth the amount charged. • Viruses exploit weaknesses in operating system controls and human patterns of system use/misuse. • Destructive viruses are more likely to be eradicated by anti-virus software. • Key logging viruses transfer information from your system(s) to the authors. This can include user ID and passwords, bank account information and other confidential data. • Non-destructive viruses remain resident on your systems and slow your operations day after day. • An innovative virus may have a larger initial window to propagate before it is discovered and the ``average’’ anti-viral product is modified to detect or eradicate it. Infected systems are normally unusable during the recovery period. Viruses make attempts to hide intelligently and re-infect the systems where they have made initial entry. It may take 24, 48 or 72 hours to completely eradicate the viruses from your systems and to restore all of your files to a usable state. What will you have your team do while their computers are not working? How do you teach them to be careful in the first place? 6Have end MAY 2014 users attend regularly scheduled and ongoing prevention

training. This training should be recorded in human resources records so that there is a permanent record of training. This provides for accountability and liability protection. An employee should sign an acknowledgment that training has been received and understood. Such training should include customized basic training for your firm, especially since firms have unique virus protection strategies. All team members of the firm should be required to attend from the janitor to the CEO/Owners. How Do We Minimize Risk? Security threats change regularly. Team members don’t recall what to do. To remind everyone of the appropriate strategies, schedule security training at least annually for your organization. The importance of compliance with your firm’s policies, steps to prevent infection, recovery methods and other techniques can be explained. Well thought out security training helps everyone understand the issues. Investing time in training can reduce the risk of a catastrophic loss of time due to an infection. We recommend covering at least the following topics: 1) Name the product being used: It is important for team members to know if your firm has GFI VIPRE Antivirus, Trend Micro, AVG, Sophos, etc. Train on the basics of that specific product to familiarize the end users with the protection they have been provided by their company such as: a) “Here is the Icon for VIPRE Antivirus”. See it in the Windows tray (VIPRE is just an example – different products may be in use in your firm)? b) Note the color of the icon has meaning. Blue indicates that protection is on, active and up to date. Green indicates a scan in progress. Yellow means there is a problem with the program and you need to contact your IT support team immediately. Red is a severe problem and you should also contact your IT support team immediately. c) If you do not have an icon, contact your IT support team immediately. 2) Explain how your firm’s AV protection works: Explain what the firm has purchased and installed: a) Email gateway Antivirus b) Exchange Antivirus c) Firewall based Antivirus d) Desktop Antivirus products to help protect our computer network from email threats. e) You need to point out that this protection only works if it is enabled, up to date and employees follow these basic principles: i) Don’t click links in emails without determining where they go first ii) Don’t open attachments unless you know the source of

document AND were expecting to receive it iii) When surfing websites and popup windows come up, (ALT-F4) is the proper way to close them iv) When in doubt, don’t open a file or click through a link 3) Protect Outlook properly: Outlook has improved its virus protection and spam filtering with each version, but there are still fundamental features to consider and use: a) Turn off the reading pane for the Inbox. This is not as great of a threat as it once was, but the reading pane can still be exploited for virus infections. b) Disable links for messages in the Junk Email Folder (Outlook). This should disable attachments too. 4) Ensure your AV is on and current on your desktop at all times: AV is only as good as the most current signature file. Vendors frequently release updates to protect for known threats in the world and these change hourly worldwide. Often, it can be several days or even weeks before some vendors have updated definitions (the file that allows identification of the viruses) to protect from the newest threats. It is not unusual for it to be several days, and on a couple of occasions, several weeks before the vendor released new specific definition protection for the new variant. Since different AV products have different signatures, some IT teams and providers will recommend different products be installed on your firewalls and desktops to provide more protection. Sometimes these products will conflict with each other and cause problems of their own. 5) Do not open emails that are not recognized: or any file that may have questionable business content, especially if the email has hyperlinks or attachments. If you are not expecting correspondence or are suspicious of the content, it is perfectly acceptable to ask the sender if the message was from them. Be exceptionally cautious with email from unknown sources. Frequently spammers will create spoofed (“fake”) emails from Intuit, Bank of America and Citibank. a) Malicious email authors are very clever nowadays and often include spoofed senders (senders pretending to be someone they are not), content that seems to come from valid business senders, and my personal favorite currently are emails “spoofed” from Intuit that contains a QuickBooks update that needs to be installed NOW to correct a program problem or improve performance. These emails have hyperlinks to an external virus payload and ZIP attachments that contain executable files which are email worms or Trojans, that is, programs that hide and attach themselves to your systems causing infections. These emails actually contain images from Intuit’s website and appear very legitimate. We need users to ask themselves, did I contact Intuit support and speak with someone about a specific problem that I needed an update for? Should I be receiving unsolicited email notices from Intuit about updates when that process is managed by my IT Support team? Staff need to regularly communicate with their IT Support team or the senders before opening questionable emails or files. b) Even more recent, we have seen spoofed emails sent from Citibank containing valid images from Citibank’s website that linked to external virus code and included ZIP attachments containing executable files that appeared as PDF (payroll) files, but were actually executable files with subject line “Payroll processing received” and the body contained instructions to open the attached PDF file to verify the amounts of each employee’s payroll amounts. Needless to say, these emails were not sent to the Controller nor were they actually requested by anyone. However, these worms were 7 MAY 2014

opened because staff thought they might actually get a peek at what others in the company are getting paid. If they would have paused before opening the attachment or links and asked themselves, did I contact Citibank for payroll information or am I actually running payroll thru Citibank, then they would recognize they received a new worm email variant that their Antivirus was not protecting them from and the worm would not have been unleashed. 6) Explain your procedures for recovery: Hopefully, you never have to recover, but if you do: a) Outline your reporting and shutdown procedure b) Have everyone stay off of their systems until given the all clear c) Unplug infected machines from the network d) Explain how you intend to estimate the recovery time e) Explain what systems are likely to be made available first 7) Consider other topics related to security: You probably don’t get your team together frequently enough. Take this opportunity to discuss other important security related matters such as: a) Review the firm’s acceptable use and other computer policies b) Encryption c) Protection of portable computers and removable media d) Properly handling USB devices from home or clients e) Password strength and changes f ) Social networking site safety g) Security of smartphones and tablets h) Instant Messengers – AOL, MSN, Google Chat, ICQ i) Weather Bug – should not be used j) Personal email access from Gmail, Yahoo or k) Transferring documents to and from clients via your portal or secure email Training is the best prevention The best training is customized for each firm. Your staff should know how they are being protected and what the limitations of that protection are. Human Resources and IT should work together to deliver ongoing, regular training that is recorded into employee records. In between regular training sessions, IT should inform staff of high risk known threats via alerts whether that is through email, intranets or bulletin boards. There should also be training required for new employee onboarding since the next regular training might be months away and the new employee might put the entire training program at risk unless we educate them. If you are from a smaller organization, your IT provider should be able to provide guidance. Otherwise, the ideas above can serve as a starting point for building your own security training agenda. Remember to hold a training session at least annually with your team to minimize your risk of virus infection.

About the Author Randy Johnston, is a shareholder in K2 Enterprises, where he develops and presents continuing professional education programs to accounting, financial, and other business professionals across North America. You may contact him at randy@

Are You Responsible for Your Company’s Information Systems? Hear Randy Speak on the Topic at the KSCPA Business & Industry Conference - June 17, 2014 - INTRUST Bank Arena Click Here to Register

Nonprofit of the Month

Youth Entrepreneurs® Youth Entrepreneurs is a nonprofit 501c(3) organization that teaches business and entrepreneurial education in 36 high schools across Kansas and Missouri. We believe teaching entrepreneurship better prepares students for success in business and other future career and education endeavors. Mission To provide students with business and entrepreneurial education and experiences to help them prosper and become contributing members of society. Goals 1. Provide the knowledge needed to start and maintain a business 2. Help students understand how to apply that knowledge and be a better employee (to act like an owner) 3. Encourage students to pursue higher education Vision To develop in students the passion and skills to succeed in the marketplace and life so they are productive members of society who make their lives and the lives of others better. To achieve this vision we: • Stimulate economic thinking skills • Encourage creative, intelligent risk-taking • Provide practical business experience, and • Instill independence and personal responsibility History Founded in 1991 by the Charles Koch Foundation, Youth Entrepreneurs (formerly Youth Entrepreneurs Kansas) started as an eight-week program at Wichita High School North. It eventually expanded to an entire school-year course. In 1997, the organization converted from a private, not-for-profit foundation to a 501©(3). After expanding into Missouri schools and changing its name to Youth Entrepreneurs, the organization has grown to serve more than 1,000 students each year in Kansas and Missouri. A licensed program of the Network for Teaching Entrepreneurship (NFTE), the Youth Entrepreneurs course is open to all high school students, but is targeted toward at-risk youth. 8

MAY 2014

Ways to Get Involved Financial Support

Youth Entrepreneurs is funded completely by private donations. Success isn’t possible without donors. Donation Levels: Ambassador Mentor Shareholder Investor Entrepreneur Partner Director Benefactor Venture Capitalist Champion

Click Here to Donate! Business Plan Advisors Whether you are a CEO, serial entrepreneur, or a business professional, your years of experience can inform and challenge YE students. A mentor can make a huge difference in motivating a student to be successful. As a Business Plan Advisor (BPA) you’ll work directly with YE students during regular class time on multiple occasions to build rapport and track students’ progress. As a BPA you help shape the next generation of business leaders and entrepreneurs. Orientation is provided by YE teachers and staff to answer all of your questions. The time commitment can be modified to fit your schedule and desire to help. However, we count on our BPAs to complete a minimum of four 50-90 minute classroom sessions, beginning in October and running through March. To comply with the volunteer standards of our partner school districts, you will be required to complete a non-financial background check. To become a BPA please fill out this online form.

Summer Partnerships

Summer partnerships offer an opportunity for Youth Entrepreneurs students and alumni to gain experience in the industry of their choice. Summer partnerships are mini-internships with local businesses, providing on-the-job experience and business connections in the community. They give Youth Entrepreneurs students and alumni a competitive advantage over their non-Youth Entrepreneurs peers. Each partnership is unique- including everything from bio-tech to financial management to event planning- so the activities and time commitments vary. All partnership participants will earn YE Academy Points as well as the opportunity to earn cool incentives such as venture capital, scholarship money for college, gift cards or even an iPad!

Click Here to learn how to get involved with Youth Entrepreneurs

Have a Nonprofit You Want Us to Feature? If you are involved with a nonprofit that you would like us to feature in Skyscapes, email Danielle,, to get the word out! 9

MAY 2014

We offer personalized business brokerage services and our focus has always been on the sale of professional practices. Because each practice is unique, we tailor our marketing strategies to fit the needs of each individual practice. Through each phase of the confidential process we are there to help you put the pieces together! Contact us today for a free no-obligation consultation.

Kathy Brents, CPA, CBI

Office/Fax: 866.260.2793 Cell: 501.514.4928

Christy Hudson, Broker

Office/Fax: 866.260.2793 Cell: 501.499.4357 10

MAY 2014 813 Oak Street 10A, #298 | Conway, AR 72032


IASB AND FASB ISSUE CONVERGED STANDARD ON REVENUE RECOGNITION (Norwalk, CT, May 28, 2014) ….. The International Accounting Standards Board (IASB), responsible for International Financial Reporting Standards (IFRS), and the Financial Accounting Standards Board (FASB), responsible for U.S. Generally Accepted Accounting Principles (U.S. GAAP), today issued jointly a converged standard on the recognition of revenue from contracts with customers. The standard will improve the financial reporting of revenue and improve comparability of the top line in financial statements globally. Revenue is a vital metric for users of financial statements and is used to assess a company’s financial performance and prospects. However, the previous requirements of both IFRS and U.S. GAAP were different and often resulted in different accounting for transactions that were economically similar. Furthermore, while revenue recognition requirements of IFRS lacked sufficient detail, the accounting requirements of U.S. GAAP were considered to be overly prescriptive and conflicting in certain areas. Responding to these challenges, the boards have developed new, fully converged requirements for the recognition of revenue in both IFRS and U.S. GAAP – providing substantial enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and U.S. GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. The boards together have consulted extensively with interested parties throughout the life cycle of the revenue project, seeking public comment at each stage of the development process and further refining their proposals in response to that feedback. In total, the boards received more than 1,500 comment letters in response to their work. Furthermore, the boards have established a joint transition resource group in order to aid transition to the new standard. Further details about that group will be announced shortly. Russell Golden, Chairman of the FASB, commented, “The revenue recognition standard represents a milestone in our efforts to improve and converge one of the most important areas of financial reporting. It will eliminate a major source of inconsistency in GAAP, which currently consists of numerous disparate, industry-specific pieces of revenue recognition guidance. The issuance of this standard is a major first step, but it is not the end of the process. Through the transition resource 11

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group and a robust implementation period, the FASB and the IASB will work to ensure that reporting organizations are able to make a smooth transition to the new requirements by 2017.” Hans Hoogervorst, Chairman of the IASB, commented “The successful conclusion of this project is a major achievement for both boards. Together, we have improved the revenue requirements of both IFRS and U.S. GAAP, while managing to achieve a fully converged standard. Our attention now turns to ensuring a successful transition to these new requirements.” On Thursday, June 5, 2014, at 10:00 a.m. EDT/3:00 p.m. BST, the IASB and the FASB will host a live, joint webcast, IN FOCUS: Revenue from Contracts with Customers. The one-hour webcast will feature IASB and FASB members and staff providing a high-level overview of the new standard, with the opportunity for participants to submit questions. Those interested in participating must register in advance. U.S. participants in the live webcast will be eligible for up to one continuing professional education (CPE) credit.

### Contacts: Christine Klimek, Senior Manager Media Relations, Financial Accounting Foundation Telephone: 203.956.3459 Email: Chris Welsh, Communications Manager, IFRS Foundation Telephone: +44 (0)20 7246 6495 Email:

NOTES TO EDITORS The revenue standard will be introduced into the FASB’s Accounting Standards Codification© as Topic 606 by Accounting Standards Update 2014-09 Revenue from Contracts with Customers. Topic 606 replaces the previous guidance on revenue recognition in Topic 605. The revenue standard will be included in IFRS as IFRS 15 Revenue from Contracts with Customers and replaces IAS 18 Revenue, IAS 11 Construction Contracts and related Interpretations. Companies using IFRS will be required to apply the revenue standard for reporting periods beginning on or after 1 January 2017 (early application is permitted); public companies using U.S. GAAP will be required to apply it for annual reporting periods beginning after December 15, 2016, including interim reporting periods therein. Additionally, U.S. nonpublic companies and organizations are to apply the revenue standard for annual reporting periods beginning after December 15, 2017, and interim and annual reporting periods thereafter. 2 12

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essons can be learned in many ways. Some of us are learn by observing past behavior while others learn by experiencing things first hand. Today, on our topic of fraud awareness, we are going to explore a hypothetical case example to identify behavior and controls that may have prevented unwanted actions.

Once upon a time, in a far-away galaxy, there existed an ambitious businessman. This businessman had stumbled onto a unique extract that, when properly mixed, provided enormous health benefits to the consumer. For many years, the businessman worked to perfect the formulation. After years of research and testing, the businessman was ready to bring the product to market. He began his operation as a small business with one manufacturing facility. His primary goals were to provide the consumer with a quality product at a fair price and to return a fair profit. The product was a huge success and indeed provided the many health benefits it promised.

13 MAY 2014 Š Copyright 2012 Lynn Fountain, used with permission.

Soon, the businessman found that his product was in such strong demand that he needed to expand his business. Because the businessman had a strong passion for his product brand and the quality aspect, he wanted to ensure that others who he entered into business with shared his same passion. As such, he decided that it would be best to partner with his family and friends. When bringing them into the business, he ensured he clearly outlined his principles of quality and the concept that customers are always first. Soon the businessman had two manufacturing facilities with many family and friends working as his employees. Although he trusted these individuals, he always maintained secrecy around the true formulation of the product for that was the true secret of his success. But being the wise person he was, he wrote the formulation down and kept it in a safe and secure location, just in case something happened to him. Well, one day, the businessman became very ill and had to be hospitalized. It soon became apparent that he would be away from the business for quite some time. But because he had surrounded himself with family and friends as his partners, and he had carefully instructed them on the true goals of his business, he was comfortable that they would be able to successfully carry on operations until he returned. He shared the secret location of the formulation with one of his closest associates and instructed him to follow the formula exactly in order to maintain the quality of the product. During the businessman’s absence, his associate accessed the formulation as he had been told. During one of his visits with the provider of the basic extract of the formula, they began discussing its wondrous abilities. The provider suggested that they may be able to further increase profits by finding a way to stretch the potency of the formula. By making minor changes in the formulation, they soon found that they could produce the same quantity of product with twothirds of the normal base extract. Although this adjustment in the formula slightly impacted the speed and efficiency at which the product worked, it was not noticeable enough to the consumer to be of much concern. The businessman’s associate and his major supplier decided that it would be good business judgment to continue producing the product with the altered formulation. This would allow the company to sell more product and increase their profits, provide the supplier with a kick-back on the excess profits and they would then even have enough funds to provide small bonus incentives to some of the employees. In addition, the associate found that by making slight changes in the quality and production cycle, they were able to increase time employees had to devote towards actually producing the product. You © Copyright 2012 Lynn Fountain, used with permission. 14 MAY 2014

see, the primary owner had always been focused on quality and required his employees to thoroughly clean the production equipment on a daily basis. This cleaning process required shut down of the manufacturing process during the last hour of the day, thus reducing the time actually placed toward product production. After months of recuperation, the businessman was able to return to his business. To his surprise, sales had increased by 30 percent and profits were way up. In addition, workers seemed to be able to complete production faster than they had in the past. When he inquired of his associate how all this transpired, the associate shared the production and quality changes with him. The businessman was a bit concerned, but recognized the significant impact that the changes had on his business, the increased profits and the increased employee efficiency. However, staying true to his original business principles, he felt it best to revert back to his original methods to maintain the potency and quality of his delivered product. Within days, this change created extensive employee unrest. Employees didn’t understand how the businessman could make this decision. They had been successful in moving the business forward, increasing product output and thinking outside the box. In addition, by reverting to the previous process, the employees were no longer receiving their incentives, the supplier was no longer getting his kickbacks and employee morale went to an all-time low. Soon, the ramifications of the original changed formulation began to appear. Customers were complaining because of the decreased potency of the serum and its efficiency. Some even had adverse reactions due to the additives that were substituted in the formulation. Some filed lawsuits and formal complaints with the government. The businessman quickly gathered his employees within a town hall meeting to discuss the situation, how it had transpired and what the ramifications to the business were. He was being faced with potentially having to close one of his facilities due to all the complaints and downturn in customer sales because of the problems when the other formulation was distributed. Again, the employees were having a difficult time understanding the issue and its bottom line impact to the business. All they knew is that things were advancing while the business owner was away, and now that he was back and had reverted back to the original process, everything started crumbling. The employees, not wanting to lose their jobs, decided they must find new ways to get past some of the issues that they were being faced with. Understanding they were now re-

quired to utilize the original formula and cleaning techniques for the equipment, they knew that must find other ways to reduce time in the process in order to meet demand. They gathered together and identified other short-cuts that would be less noticeable to the business man but would allow them to still meet production goals. They agreed to keep their changes quiet and to share any acknowledgments or incentives they received for bringing the company back to profitability. However, many of these changes involved skeptical type activities that could have longer term impacts on their product. In addition, they were secretly finding other sources to obtain the extract for the base product. These sources were indeed less expensive but did not have the same quality control as the original vendor. Well, the story could go on from there. But let’s examine some of the story and whether things that occurred could be interpreted as fraud. First, how does the above example relate to the need for fraud awareness? First, the true definition of fraud is “... any illegal act characterized by deceit, concealment, or violation of trust …” Frauds are perpetrated by parties and organizations to obtain money, property, or services; to avoid payment of loss of services; or to secure personal or business advantage. Let’s examine our above hypothetical scenario. First of all, was what the act of substituting the formulation and decreasing it’s potency by one-third considered an illegal act? Well, we don’t have those facts at hand but considering the scenario cited later lawsuits against the company as well as government investigations, we can probably assume the original formulation had some sort of patent or FDA approval. By reducing the potency of the formulation, this was in essence diluting the formula. Also, do we believe the act was characterized by deceit, concealment or violation of trust? Well, maybe not deceit and concealment in the early stages since the employee’s informed the employer when he first returned. But it certainly was a violation of trust and later when the employees attempted to find other methods to short-cut the employer’s directions that could be classified as deceit and concealment. The important point here may not necessarily be the initial actions taken by the employees but more so their motivation for their actions. As we discussed, the fraud triangle requires three factors to be present for a fraud to occur: rationalization, opportunity and motivation. The employees certainly had the opportunity. The employer was away and would not return for a while. As for rationalization, if you remember,

the employees felt they were “improving” performance due to the increased sales and production. Their motivation also was the additional incentives they were able to get as well as the kickbacks given to the vendor. So, while the employer did his best when hiring employees to train them on his values and morals, somehow … when the cat is away … the mice did play. What could have helped to avoid what occurred? Can you identify where the businessman went wrong? Possibly, had the employer provided more training on his principles and morale’s and the reasons for the secrecy and confidentiality of the formula, employees may have better understood the criticality of maintaining the original formula. Had they understood that the formulation held FDA approvals and how any alteration may have impacted individuals who utilized the formula, they may have been able to better personalize their work with the consumer. Also, should the employer have shared his formulation with others earlier? Was it a mistake to hold it in confidentiality and only release it when he became ill? There may not be a clear cut answer to that question. In any event, at the very least the employer should have had a strong contingency plan in place in the event of his absence that could be carried out effectively. From our scenario above, it appears the employer maintained the primary relationship with the vendor. This left opportunity open to his associate to possibly misinterpret or maybe even learn things about the relationship that he may have perceived as unfair to him or advantageous to change. What could the businessman have done differently? We can probably list many things that potentially the businessman could have done differently. But again, so much of how a business is run is within the day-to-day decision making. Certainly, the businessman had taken a great pride in his formula and felt a very strong tie to his customers. Also, it appears he had done his best to hire employees who he felt her could trust. All those are very good and positive things. But whenever human nature becomes involved, actions can take turns that no one can effectively predict. The businessman never assumed his employees would question his formulation or its potency. He also probably never assumed his business associate would brainstorm with the vendor about ways to alter the formula while presumably providing the same results. It is hard to scenario plan for things you never can expect. Within risk assessment, we often suggest scenario planning. The difficult thing everyone recognizes is that it is hard to imagine the unimaginable. To the businessman, it © Copyright 2012 Lynn Fountain, used with permission.


MAY 2014

may have been unimaginable that his dedicated and trusted employees would even question his formulation. As we know in business today, we must always maintain our professional skepticism. The businessman should have made plans in the event of his extended absence. This would have provided him with some assurance as to how operations would run. In addition, possibly he should have had regular updates with employees regarding the criticality of the formula, its potency and the importance of maintaining clean and effective equipment to produce the product. He could have implemented check and balance procedures to ensure that all of these things ran smoothly in the event of his absence. This may have prevented individuals from taking advantage of a situation or even dissuaded some of the collusion that appeared to occur. Was it wrong for the businessman to trust his employees? When the bad thing happens, it is natural to question whether we should or shouldn’t have done something or maybe trusted someone. But all of us work hard to ensure the people we hire are trustworthy, intelligent and capable of doing their job. It sounds like the businessman was dedicated to this aspect. What we don’t know is if the businessman adequately and fairly compensated his employees for their hard work and dedication. Did he provide them the right acknowledgements for their hard work? If not, possibly this led to some of the employee’s motivation to change a few aspects. Or, maybe they were fairly compensated but had some ancillary personal issues occurring and saw the control gaps in the process that they were easily able to take advantage of. These are all indicators of why fraud and internal control awareness are so important. When people understand that their work is being watched and evaluated, then tend to be a little more cautious in how they execute things. What could the businessman have done differently when he returned and identified the changes? This is where we like to try to apply lessons learned. It sounds like the businessman was pleased that sales had increased, but he recognized the importance of the potency of the formulation. Possibly, he did not provide sufficient explanation to the personnel regarding why he chose to revert the processes back. It sounded as though the employees were offended that he did not give them proper acknowledgement for their increase in sales. However, shortly we saw where the business man faced lawsuits and claims and a potential closure of a facility.

It is always easier to look in the rear view mirror. If the businessman had things to do over again, he may have approached the situation a bit differently. He may have done further research to understand what the impact of the formulation change had on the product. He could have then anticipated customer complaints. Also, he may have wanted to understand how the relationships between the vendor and his associates developed. He may want to question whether he should re-evaluate his resources for future use. In addition, he should have made a concerted attempt to understand the impact the original changes had on his employees. Possibly he didn’t realize they were getting incentives based on the higher production. Had he known, he may have been able to anticipate the impending dismay when he reverted back to the original process. Also, if he could have shown the employees the problems that resulted from not regularly cleaning the equipment, they would have better understand the quality aspects of their jobs. Well, we could continue this analysis and I’m sure you’ve come to some of your own ideas and conclusions. The real purpose of this analogy was to give you a hypothetical example of an instance where, on the surface, it appeared everyone was doing what they thought was right. But as we saw, lack of awareness of processes, procedures and company morale’s and disciplines can quickly lead to issues that may be classified within the fraud category. If your company takes the view that fraud won’t happen to us, or doesn’t train people about fraud because they fear that they will do it, think of your own scenario and then work with executives to understand the ramifications of not having the proper awareness processes in place. You could make a real difference in not only your company’s bottom line, but in your corporate culture.

Part 13 of a 14 Part Series by Lynn Fountain, CPA, CGMA Click Here to Register for this Session Click Here to View the Complete Series Want to learn more about fraud? Attend “Auditing for Fraud” with Dennis Dycus on June 11, 2014 Wichita 8 hours of CPE Click Here to Register © Copyright 2012 Lynn Fountain, used with permission.


MAY 2014

Thank you to our current 2014 CONFERENCE SPONSORs!

The Kansas Society of CPAs 2014 Marketing Opportunities For Members & Vendors

want to sponsor a kscpa conference or workshop? click here for more information! 17

MAY 2014

2014 Conferences & Workshop Click the image to register


MAY 2014

2014 Live Videocasts Ethics Conceptual Framework and Interpretation 101-3 - June 5, 2014 - 2 Hrs Ethics CPE Government Nonprofit Accounting & Auditing Conference - Monday Only - June 9, 2014 - 8 Hrs CPE Government Nonprofit Accounting & Auditing Conference - Tuesday Only - June 10, 2014 8 Hrs CPE (Including 2 Hrs of Ethics) Business & Industry Conference - “Creating a Perfect Balance” - June 17, 2014 - 8 Hrs CPE KSCPA Conference on Kansas Taxes - “Winds of Change” - June 24, 2014 - 8 Hrs CPE 64th Annual Kansas Tax Conference - Thursday Only - November 20, 2014 - 8 Hrs CPE 64th Annual Kansas Tax Conference - Friday Only - November 21, 2014 - 8 Hrs CPE (Including 2 Hrs of Ethics)

June 2014 Courses Date

CPE Credits



KSCPA Non-Member Member Fee Fee



June 4





Technology for CPAs - Don’t Get Left Behind by K2 Enterprises Technology



June 11


Auditing for Fraud with Dennis Dycus, CPA, CFE, CGFM

Accounting & Auditing



June 19


Best Federal Tax Update by Surgent McCoy





Compilation and Review: Updates and Advanced Considerations with Cecil “Pat” Patterson, CPA

Accounting & Auditing



June 26

Advanced Excel by K2 Enterprises



Yellow Book: Government Auditing Standards

Accounting & Auditing



June 10


Recognizing and Responding to Fraud Risk in Governmental and Not-for-Profit Organizations

Accounting & Auditing



June 12


Auditing for Defined Contribution Plans

Accounting & Auditing



June 17


Advanced Excel by K2 Enterprises




June 18


Technology for CPAs - Don’t Get Left Behind by K2 Enterprises Technology



June 20


Best Federal Tax Update by Surgent McCoy




June 27


Compilation and Review: Updates and Advanced Considerations with Cecil “Pat” Patterson, CPA

Accounting & Auditing




MAY 2014

DON’T GET LEFT BEHIND - Stay Current with Online Learning

A Premier Partner for Technology Webinars Click Here to View All K2 Live Webinar Offerings Looking for In-House Technology Training from K2? Contact the KSPCA Office for More Information.

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


MAY 2014


Financial Planning Workshop - May 5, 2014 - Lenexa “Road to Financial Freedom” was the theme of the 2014 KSCPA Financial Planning Workshop co-sponsored by the Financial Planning Association of Greater Kansas City. With a new location at The Thompson Barn where participants enjoyed their breaks outside, the overall program received a rating of 4.32 out of 5.00. The topics were relevant and presented by highly-qualified speakers, including Gerry Steffes, CPA/PFS, CFP®, Jerry Love, CPA, PFS, CFP®, Matt Krull, GBA, Dr. Eric Fidoni, PT, Ph.D., and James A. Rapp, JD. There were special lunch sessions, and the participants especially enjoyed the new topic “Health is Wealth” which was dedicated to Dennis Gershick, a frequent presenter at KSCPA seminars and conferences, who passed away last December. LearningQuest sponsored the program and Scott Gates, Director of LearningQuest Program and General Counsel, Kansas State Treasurer’s Office updated the participants on the program.

The KSCPA is encourages young professionals to consider the financial planning area. Please contact the KSCPA office if you are interested in exploring this exciting specialization and want to be connected to a practicing CPA financial planner. The AICPA recently released its first Statement on Standards in Personal Financial Planning Services. Click here to learn more about the standard and obtain other valuable resources.

Workshop Rating 4.32/5


MAY 2014


Agricultural Taxation Workshop - May 6, 2014 - Manhattan Roger A. McEowen, JD received a hearty welcome when he returned to Kansas to present the Agricultural Taxation Workshop. Roger worked with the steering committee to create a program that was timely and topical and the pre-planning paid off. Roger received an average of 4.98/5.00 for knowledge and 4.84/5.00 for his presentation from the participants. The event was held in a new location for the KSCPA - the beautiful Hilton Garden Inn in Manhattan. This unique opportunity for CPAs, attorneys, and others proved to be a very worthwhile educational and networking experience for the attendees. Andy Biebl, CPA returns next year to present the Agricultural Taxation Workshop on May 5, 2015, so mark your calendars for another exceptional program!

Workshop Rating 4.79/5


MAY 2014


Oil & Gas Federal Taxation Workshop - May 19, 2014 - Hays To help celebrate the launch of the new Oil & Gas program at Fort Hays State University, the KSCPA held its workshop with Dr. John Tripp at the beautiful Robbins Center on the campus. Dr. Glenn Growe, Fort Hays State University, Assistant Professor of Accounting, provided an update on the program. The workshop steering committee led by Kathy Mitchell, CPA, a partner with Brungardt Hower Ward Elliott & Pfeifer, LC in Hays worked closely with Dr. Tripp to design a program with topics that are most beneficial to the participants at the workshop. The participants benefited from Dr. Tripp’s preparation and evaluated him with a 4.68/5.00 average in knowledge and 4.21/5.00 for presentation. This program updated the participants on current developments and the major tax principles applicable to oil and gas upstream operations. The workshop took another look at the oil and gas Market Segment Specialization Program (MSSP) Audit Guide issued by the IRS to identify important audit issues for IRS Agents. The materials for this program included a complete copy of the MSSP. Dr. Tripp’s outlines cross referenced the MSSP as well as CCH’s recently published treatise Oil and Gas - Federal Income Taxation (2014 Edition). These reference materials were used to highlight the IRS’s position on various oil and gas tax questions, cases, Revenue Rulings and other IRS guidance. Recently published oil and gas industry Coordinated Issue Papers were also discussed. The KSCPA plans to present another workshop in 2016 in Wichita.

Workshop Rating 4.11/5


MAY 2014


Enhanced Financial Reporting - May 12-13, 2014 - Topeka & Wichita In conjunction with well-known author and instructor in accounting and assurance services topics, Alan W. Anderson, CPA, the KSCPA created a special workshop to help CPAs add value to financial reporting for privately-held companies. The workshop covered topics related to the Private Company Council and the Financial Reporting Framework for Small- and Medium-Sized Entities. The goal of the workshop was to take the mystery out of all of the financial reporting choices and alternatives. There was a lot of discussion and interaction among the participants. Three bankers joined the participants for lunch to answer questions about the relevance of GAAP financial reporting versus the alternatives and what the bankers use to make their decisions about financing. The participants found this interchange extremely worthwhile, and the KSCPA plans to have more events that connect CPAs with other professionals, including bankers and attorneys. This program was well received by the participants. Al received a 5.00/5.00 for knowledge and 4.87/5.00 for presentation at the Wichita workshop and 4.55/5.00 for knowledge and 4.36/5.00 for presentation at the Topeka event.


MAY 2014


The Deloitte Foundation/KU Auditing Symposium - May 2-3, 2014 - Lawrence The Deloitte Foundation/University of Kansas presented its biennial Auditing Symposium at the Oread Hotel in Lawrence. The title of the Symposium was “PCAOB Inspection Reports: Findings and Implications.� Mary MacBain and Aron Dunn attended the Symposium on behalf of the KSCPA. Several well-known practitioners and leaders from the PCAOB (Jeanette Franzel) and Center for Audit Quality (Cindy Fornelli) spoke at the event. The symposium was an opportunity for those performing accounting research to present the results of their research to practitioners, doctoral students, and faculty. It was interesting to learn that much of the research revolves around auditor behavior and the relationship between the auditor and the client. It continues to be essential that we recognize the important role of research in the accounting profession. The University of Kansas currently has 9 doctoral lines (one which is endowed by the KSCPA) and is the only university in Kansas to offer a Ph.D. in accounting.


MAY 2014


Professional Issues Update & Spring Leadership Summit - May 7, 2014 - Manhattan A great group of leaders, including the “20 up to 40” 2014 leadership program participants, attended the Spring Leadership Summit and Professional Issues Update on May 7 in Manhattan. Gary Bolinger, CAE, the President/CEO of the Indiana Society of CPAs, presented a valuable look into current issues and provided his insight into the future of our state associations. Click here to view this presentation. You will need to login to the website. The issues update was also video cast to those who could not attend in person and recorded so that all members, especially our leaders, could watch the program at their convenience. The leadership summit took a different tack this year. Traditionally, our task forces meet to continue developing action items for the strategic initiatives of the KSCPA. This year, to connect with Gary’s forward thinking view, there was a round robbin of questions where each task force was given 4 questions. The first question was discussed and presented followed by a discussion/presentation of the second question and so on. The conclusions were gathered and will be sent to the general membership to ascertain their agreement to the conclusions of the leadership during the month of June. This information will be used to guide the board at their annual retreat to be held in Colorado Springs July 31-August 1, 2014. Please watch your email for notification of this survey. The Annual Meeting and Leadership Summit will be held on November 19 in Wichita. We hope to see as many members as possible at this important meeting where we will recognize our leaders and accomplishments and look to a thriving future

Dr. Dan Deines presented an udate on the Accounting Pilot and Bridge Project 26

MAY 2014


Thank You to Our Leaders! You Make a Difference for All Members


MAY 2014

Watch for a Survey on the Future KSCPA Your Input is Valuable


Executive Committee, Nominations & Board Meeting - May 7, 2014 - Manhattan The leadership of the KSCPA met on May 7 in Manhattan in conjunction with the Spring Leadership Summit attended by task force members and the “20 up to 40� 2014 participants. The nominations committee created a slate of nominees who will be presented to the general membership for election at the Annual Meeting on November 19 in Wichita. The following have accepted the nomination and look forward to the election in November: For Secretary/Treasurer: James Boomer For Directors (3-year term): Matt Bellomo; Brandi DiGiorgio; Michele Herzog; Christine (Chris) Johnston; Lori Wenrich For Foundation Trustee (4-year term): Rebecca (Becky) Casey A complete report of the nominations committee with bios will be sent out prior to the annual meeting. Robert (Bob) Schuster was selected to serve as the elected member of the AICPA for a three-year term beginning October 2014. He replaces Gary Allerheiligen who has been an outstanding representative for the KSCPA on the AICPA Council. The executive committee reviewed the agendas for the day and subsequently met after the board meeting by conference call to discuss and plan other strategic initiatives for the KSCPA. The board of directors received updates from Marlee Carpenter (Governmental Affairs Consultant), Aron Dunn (as the liaison to the KS Board of Accountancy), and approved several items. These included the acceptance of resignations and terminations, continuation of the peer review program, membership dues, and foundation assessment. The foundation assessment remains $20.00. Dues for the upcoming 2014-2015 year are: Public Practice:$260 - Business & Industry: $220 - Out of State & Affiliate: $150 - Retired & In Transition: $65 - Students: $25 The membership investment (which includes dues, mandatory foundation assessment, chapter dues, and voluntary PAC contribution) will be available for payment online beginning August 1. Statements will be mailed September 1 for those who do not pay online. The board of directors and executive committee agreed that the peer review program should remain at a break-even status. The fee for the system reviews, therefore, will be increased. If you are subject to peer review and have any questions, please contact


MAY 2014


“20 up to 40” Session 2 - May 6-7, 2014 - Manhattan The “20 up to 40” participants received exposure to what it means to be a leader in a professional association at the second session of the group held in Manhattan. Several returned “home” to Kansas State University where they began the pursuit of their accounting careers. On May 6, they met at the Kansas State University Alumni Association to work in teams on their group projects. Special guests Ken Selzer, Educational Foundation Vice Chair and mentor in the K-State Business Executive Mentor Program, and Emily Brueseke, Program Director, presented on the topic and worked with the group members in their round-table discussions. A social event was held that evening where fun was had by all and included team-spirited competitive games. The following day, the participants attended the professional issues update, participated in the round table task force discussions and presentations, and attended the meeting of the board of directors. Session 3 will be held in the metro area in September when Jim Boomer, CPA.CITP, CGMA, graduate of the first “20 up to 40” program, will facilitate leadership training. It will include group meetings on the projects as well as a social event.


MAY 2014


Metro Chapter After Tax Happy Hour - April 24, 2014 - Leawood The Metro Chapter of the KSCPA held its annual After Tax Happy Hour on April 24, 2014. The event was held at Talk of the Town in Leawood. Chapter members socialized, enjoyed appetizers and drinks. The next Metro Chapter Member Event is the annual Royals game on June 10. The Royals play the the Cleveland Indians. The Metro Chapter will host a catered tailgate beginning at 5:00 p.m. and provides two free tickets to chapter members who reserved them.

Wichita Chapter Ethics Meeting - June 19, 2014 - DoubleTree by Hilton Wichita Airport Kate Grant, CPA, Audit Manager, Kirkpatrick, Sprecker & Company, LLP and Chair of the KSCPA Ethics Committee, will provide an update on the Revised AICPA Code of Professional Conduct Adopted on January 28, 2014 by the AICPA Professional Ethics Executive Committee (PEEC). The revised Code will be effective December 15, 2014. The new conceptual frameworks and related interpretations however, will not be effective until December 15, 2015.

Click Here to Register

Northeast Chapter Holds Legislative Update Meeting - May 21, 2014 at the Topeka Country Club The Northeast Chapter of the KSCPA held its May meeting, a Legislative Update presented by Marlee Carpenter, JD, KSCPA Government Affairs Consultant. The meeting highlighted laws passed during the 2014 Legislative Session, including school finance. Click here for a full report on the 2014 Legislative Session.


MAY 2014


AICPA Spring Council Meeting - May 18-20 - Scottsdale, AZ KSCPA leadership who serve on the AICPA council and board of directors attended the AICPA Spring Council meeting at the Fairmont Scottsdale Princess from May 18-20, 2014. Mary MacBain, President/CEO of the KSCPA, who serves on the CPA/SEA board of directors also attended the council meeting and a meeting of the CPA/SEA. The CPA/SEA is the association of state CPA societies. Those attending are as follows (pictured below from left with Bill Balhoff, Chair of the AICPA and Mary MacBain): Gary Boomer, at large member of the AICPA Council Gary Allerheiligen, elected member of the AICPA Council Dominic Ortiz, at large member of the AICPA Council DeAnn Hill, member of the AICPA Board of Directors Melinda Hitz, designated member of the AICPA Council In addition to Council business, several interesting presentations were heard. These included a presentation by Richard Davis, Chairman, President, and CEO of U.S. Bancorp who spoke on “A View on American Business, Regulation and the Role of American Business in Today’s Society.” Sue Coffey, Senior Vice President - Public Practice & Global Alliances, spoke about the vision for practice monitoring and the goal of real-time peer review which will be a major shift in how peer reviews are done today. Recommendations from the Future of Learning task force were presented and Council members and others were able to participate in “gamification” to get a taste of the effectiveness of competition in learning. Unfortunately, the Kansas group did not win. One of the most scintillating presentations was by Bill Ezzel, Co-Chairman of the Pathways Commission, who provided an update on the recommendations of the Pathways Commission. The highlight of the update was the recommendation to achieve an advanced placement course from The College Board to which the AICPA has thrown its full support in collaboration with others. Dr. Dan Denies worked with high-school teacher/ trainers, college faculty, and state associations to update the high-school curriculum, train high-school teachers who teach high-school students, and gain the acceptance of universities and colleges. The KSCPA provided some of the initial seed money ($25,000) to help Dr. Denies get this off the ground. This foundation is essential to the success of building the model with The College Board, and the Kansas delegation was quite proud to hear from Bill that the hard work of Dr. Denies, the high-school educators, and the state associations is paying off and that they were able to present this impressive work to The College Board and that it was well received. Finally, we heard from Barry Melancon, CEO of the AICPA and Charles Tilley, the Chief Executive of the Chartered Institute of Management Accountants about “Supporting Individuals and Business in a Global Economy.” The AICPA and CIMA entered into a joint venture and created the CGMA, a global credential that is now held by over 40,000 members of the AICPA. The meeting was informative and fun. The next meeting of the AICPA Council is in October in Boston, MA. At that meeting, in addition to those attending the meeting in Scottsdale, Michelle Schneider, the incoming designated member of AICPA Council, and Bob Schuster, the incoming elected member of AICPA Council will attend.


MAY 2014

Member & Vendor NEWS

MEMBER/VENDOR NEWS cHAD aLLEN, CPA Chad Allen, Lawrence, has been promoted to Senior Audit Manager at Cochran Head Vick & Co., PA in Merriam. He is a graduate of the 2011 KSCPA “20 up to 40� Leadership program. Conratulations, Chad! Mitch Fiser Mitch Fiser, Lenexa, has been appointed to the Board of Directors of The Research Foundation, Kansas City, Congratulations, Mitch!

Eric J. Larson, Jd, CPA From theWichita Eagle: Eric J. Larson, Wichita, has been elected to the Starkey Inc. Board of Directors. Congratulations, Eric!

Mary R. MacBAin, cpa.CITP, CGMA Mary R. MacBain, Shawnee, has been appointed to the Board of Directors of The Research Foundation, Kansas City. Congratulations, Mary!

Becky Sweet, CPA Becky Sweet, Pratt, has been promoted to Principal at Kennedy and Coe, LLC. She joined the firm right out of school and has focused her career working with commodity crops, cow/calf and feeder operations and hog farms in Kansas and surrounding states. She provides long-term tax planning that ties into wealth preservation, business succession and wealth-transfer strategies. Congratulations, Becky!

kscpa members to speak at AICPA Practitioners symposium & tech+ conference The 2014 AICPA Practitioners Symposium & Tech+ Conference speakers include KSCPA members and vendors. The following members will be speaking: L. Gary Boomer, CPA.CITP, CEO, Boomer Consulting, Inc. Manhattan; Jim Boomer, CPA.CTIP, CGMA, MBA, CIO, Boomer Consulting, Inc. Manhattan; DeAnn Hill, CPA, owner, DeAnn Auman Hill CPA, Baxter Springs and Michel Lowry, CPA, Senior Manager, Allen, Gibbs & Houlik, L.C. Wichita. The following KSCPA vendors will be speaking, Alan Anderson, CPA, President, Account-ability Plus, LLC, Minneapolis, MN; Toby Groves, researcher, consultant and speaker at GRC, Cincinnati and Randy Johnston, MSC, MCP, President, Network Management Group, Inc Hutchinson. DeAnn Hill is also co-chair of the conference. Jim Boomer and Alan Anderson are committee members. Click here to learn more about the conference


MAY 2014

Member & Vendor NEWS

In Memoriam Ernest lee balay August 20, 1929 - April 16, 2014 Ernest lost his battle with cancer on April 16, 2014. He was born in Wichita in 1929 and graduated from North High School in 1946. He went on to earn an accounting degree at Wichita State University where he was president of the fraternity, Pi Alpha Pi. A Certified Public Accountant, he started his career at the Wichita firm of Bonnicamp, Koehling and Smith, and later went on to serve as executive in charge of finances for several companies, including Adair Oil Company, where he worked for many years. A longtime, respected member of the Wichita business community, he was also part of the founding ownership group of the Wichita Aeros baseball team, served on the board of directors overseeing the building and development of the Sedgwick County Zoo and was a devoted member of Eastminster Presbyterian Church. He was a life member of the KSCPA, joining in 1991. Ernest will be greatly missed!

Bobby Dean “Robert” Carr May 9, 1928 - May 4, 2014 Bob passed away on May 4, 2014. He was a retired managing partner of Regier, Carr & Monroe, CPA in Wichita. He was a life member of the KSCPA, joining in 1964. He was a past president of the Wichita Chapter of the KSCPA, and founding director of Community Bank of Wichita. He was also a member of Douglass Lodge #151. Bob will be greatly missed!

Roger Dehart farrow January 20, 1932 - May 3, 2014 Roger passed away on May 3, 2014. He was born in Evansville, Indiana. He was rasised in Wichita and graduated from Wichita East High School. He attended the University of Kansas before obtaining his Bachelor of Arts degree from U.C.L.A. He then returned to Wichita and joined his father’s acccounting firm, Farrow, Stone and Blubaugh as a CPA. He practiced for 35 years, ending his accounting career with Baird, Kurtz and Dobson. He founded the Omni Business Centers in 1986, which he led until his passing. He was a life member of the KSCPA, joining in 1958. Roger will be greatly missed!


MAY 2014

Member & Vendor NEWS

NEW MEMBERS Affiliate Members

CPA Members Emily R. Campbell Hoxie Emily J. Emery-Shea Wendling Noe Nelson & Johnson, L.L.C.


David Kihm Kansas City, MO Kyle N. Stone Berberich Trahan & Co., P.A. Topeka

Jeanne M. Taylor Preservation Housing Management Kansas City, MO

Sandra Doyle LMR Management, Inc. Wichita

Bradley B. Thies Barr Assurance & Advisory, Inc. Overland Park

John E. Regier RubinBrown LLP Overland Park

Aaron C. VonFeldt VonFeldt Bauer and VonFeldt Manhattan Richard A. Hickey RubinBrown LLP Overland Park

NOT A MEMBER OF THE KSCPA? Not only does your membership in the KSCPA support the association that is dedicated to supporting and developing its members and promoting the accounting profession, your investment also provides the following valuable benefits and much more: Advocacy Staff and volunteers take the lead to address issues important to CPAs. Our representatives at the Statehouse and in Congress contact us regularly for advice. We proactively perform research, provide communication, and collaborate with other organizations to provide information to members while protecting the profession. Credential CPA is the individual professional credential that encompasses your entire career. Membership in the KSCPA signifies that you are serious about maintaining your status as a professional. The KSCPA is the preferred provider of CPE for CPAs in Kansas, utilizes the Joint Ethics Enforcement Program (JEEP) of the AICPA to handle complaints about its members, and administers the peer review program for the Kansas Board of Accountancy and the AICPA. Future KSCPA members support the future of the profession from high school accounting through doctoral programs via the Educational Foundation. Young professional programs guide members to leadership positions in the profession. Learn The KSCPA sponsors high-quality group study, on-line live and self-study, and conferences in both technical and essential skills. Members participate in determining content and design so that relevant, timely, and topical programs are offered. Collaboration with other professional associations enhances learning opportunities. Leadership Opportunities abound for members who wish to lead. Leadership training and activities are available and all members are welcome to participate. Network It’s true that CPAs share many of the same values and view and solve problems in a similar fashion. No one understands what we do more than our fellow professionals. Engagement in the KSCPA is the best way to connect and have fun with other CPAs and those who collaborate with the profession. Advance Active leaders in the KSCPA have an edge over those who are not engaged in the profession. The relationships built throughout your career help you advance, and this is priceless.


MAY 2014

Click Here to Join

Cross-country for a Cause 100 days, 14 states, 2,826 miles. BLI thought leader Frank Ryan is walking coast to coast to raise awareness for Good Shepherd Services By Bill Sheridan, CAE

How far will you go to change the world? Like all of us, you have your pet causes. Maybe you work at a food pantry, or volunteer as a board member for your favorite non-profit, or respond to disasters for the local Red Cross. Maybe you spend what little free time you have during tax season filing returns for those in need. Whatever you do, pinpointing your passion is the easy part. The hard part is figuring out how much of a burden you can carry. Frank Ryan has set the bar pretty high — 2,826 miles high, to be exact. The CPA, consultant and Business Learning Institute thought leader is spending his spring and early summer on a remarkable journey that finds him walking from coast to coast to raise awareness for Good Shepherd Services, a non-profit organization that provides treatment and care for teens and young adults with developmental disabilities. Ryan’s journey has its roots in the 2008 recession. Now in its 150th year, Good Shepherd’s funding dropped drastically after the downturn and Ryan, a 30-year volunteer with the organization and current president of its Board of Directors, decided to take action. Along with Good Shepherd CEO Michele Wyman, Development Director Diana Ellis, and the rest of the staff, Ryan hatched a plan designed to shine a spotlight on the group and its mission. “I was concerned that the need for this type of treatment was growing (as funding was falling),” said Ryan, 62. “Consistency of treatment for these children is just as important as the treatment itself. So we decided to develop an awareness of the needs of children with developmental disabilities. We wanted to be advocates for children who may not have anyone else advocating for them.”


MAY 2014

‘A walk of atonement and gratitude’ Ryan’s journey began on March 15 near San Diego. It will end 100 days later in Ocean City, Md., where he is scheduled to teach a July 2 course at the Maryland Association of CPAs’ annual Beach Retreat. In between, he’ll walk 32 miles a day on a route that will take him literally from sea to shining sea, carving a path through 14 states — California, Arizona, New Mexico, Texas, Oklahoma, Kansas, Missouri, Illinois, Indiana, Ohio, West Virginia, Pennsylvania, Maryland, and Delaware. No support vehicles will follow him on his journey. Ryan will carry 50 pounds of supplies in a backpack and pull an additional 60 to 80 pounds of food, water, and gear behind him. His only companions will be those who see fit to join him for a mile or two on what he is calling “a walk of atonement and gratitude.” “The first part is atonement,” Ryan said. “I want to ask any person that I have hurt in my life to forgive me, any person that I have let down or disappointed to pray for me, and any person I have helped to consider helping another. The gratitude part is this: I’m asking anyone who is willing to follow me for a mile or two, so that they can help carry some supplies. I don’t know if I will get that support, but I will be very grateful for any help I can get. “It’s important to do that,” he added, “and I’ll tell you why: Our children (at Good Shepherd) don’t know who’s going to turn out to help them. I want to replicate that feeling of not knowing. I’d be lying to you if I told you I’m not getting anxious right now. Our kids can’t ask what

the contingency plan is. We are their contingency plan. At the drop of a hat, I could say, ‘I’m done. I’m too old to do this.’ These children don’t have that choice.” Ryan will get plenty of support from the folks at Good Shepherd. The staff has created a “Walk Across America Challenge” to encourage staff to “walk with Frank in solidarity,” Ellis said. Teams of 10 to 20 staffers will track the miles they walk on the job or at home in the hopes of matching Ryan mile for mile. Those who would rather not walk can still participate via donations; every dollar donated will count as a mile toward the goal. All money collected will be used to fund programming for Good Shepherd students. “We’re so appreciative of what Frank has been doing for us all these years, and for what he is doing for us this year in celebrating our 150 anniversary,” Ellis said. “We are excited about this walk — it’s wonderful. We’re still working through a lot of the unknowns associated with this, but he has been willing to embark on it and go at it with full force, and so are we.” ‘I’m going to finish this thing’ Ryan began training for the walk about 15 months ago, logging more than 2,000 miles on foot in the process. He also put on an extra 10 pounds or so, since he expects to lose up to 25 pounds during his journey. Then there’s the issue of temperature. He left Maryland’s cool early spring behind to start the walk in Southern California’s 70- and 80-degree climate before crossing into the hot, harsh conditions of Arizona, New Mexico and Texas. “The first two weeks pose the greatest risk,” he said. “I won’t be acclimated to those temperatures. If I can’t do 32 miles a day at the beginning, I’ll wait until I get past the desert and make up for it with

a few 40-mile days.” His biggest worry, though, is failure. Ryan says his work with Good Shepherd has been “a lifelong passion” and is “what I intend to do for the rest of my life,” and for one reason. “I fell in love with the mission,” he said. “The sisters of the Good Shepherd are my heroes. I see the kindness and the humanness in their hearts. They believe in taking care and treating one child at a time. When you see the letters from the parents and grandparents of the children who have been helped, it just melts your heart, and I told myself I have to do more of this.” That’s the source of his fear of failure. “If I fail, I’ll feel like I’m disappointing these children,” he said. “I don’t want them to ever feel like an adult is going to walk away from them. No matter what, when, how, or why, I guarantee I’m going to finish this thing. I don’t care if I have to crawl. These children and the entire (Good Shepherd) staff are going to know that somebody gives a damn about them.” Walk Across America: Here’s How You Can Help You can support Frank Ryan on his journey and help Good Shepherd Services at the same time by donating to the “Walk Across America” campaign. For details, visit and click on “Walk Across America.” Follow Frank: You can follow Ryan’s progress across the country by liking his “Walk Across America” page on Facebook. Visit The MACPA will also publish periodic updates from Frank on its blog, CPA Success. Keep an eye on

Bill Sheridan, CAE, is the MACPA’s chief communications officer and editor of The Statement. 36

MAY 2014

January/Febrauary Exam Testing Window CPA Passers Top Scorer

Larita A. Tipton Moran


Michael Borgerding Stilwell

Emily Jaax Wichita

Eric Parkhurst Wichita

Zachary Brenneis Wichita

Kayla Kaiser Bushton

Bradley Perrin Overland Park

Cassandra Brownell Sabetha

Jack Maier Olathe

Hanna Peterson Lindsborg

Joseph Brunner Wichita

Rebecca Martin Overland Park

Amanda Picht Olathe

Eric Christopher Lenexa

Justine May Hunter

Shawna Robl Great Bend

Andrew Dalton Leawood

Thomas McDonald Wichita

Katherine Sparks Wichita

Adriana Dominguez Liberal

Tara Miller Olathe

Tyler Walden Wichita

Rachel Hancock Olathe

Heather Mitchell Lenexa

Amy White Winfield

MAY 2014

From the Board of Accountancy The 2014 permit renewal applications were mailed to the last known preferred mailing address on file with the Board on Thursday, May 14, 2014. Permits expire July 1, 2014; however, the Board will allow a person to renew without paying a late fee if the complete renewal application is received in the Board office on or by July 31, 2014. Any approved renewals received during this 30-day grace period will be dated July 1, 2014. Any renewals sent back as “incomplete” are regarded as never received. Permit renewals may not be emailed or faxed—they must either be renewed online, mailed, or hand-delivered to the Board office. All CPE must be obtained by June 30, 2014. Any CPE obtained after that date will result in an assessment of an additional 8 hours of CPE as a penalty. All CPE must be obtained and proof of attendance/completion must be in hand before applications for renewal may be submitted. Online renewals are available until 11:59 PM July 31, 2014; however, some restrictions apply. Any change in home address or employer must be reported to the Board in writing within 30 days of the change. This may be done on the Board’s webpage at Click on the “Change of Address” tab. If you are chosen for audit, you have thirty days from being notified to provide the required documentation to the Board. Those who renew online will be notified immediately that they are chosen for audit. Those who submit a paper renewal will be notified by a letter from the Board. This information may NOT be e-mailed. It may be faxed, hand-delivered, or mailed to the Board office. Permit holders are reminded that they are required to retain CPE documentation for a period of five (5) years. Personal development hours are limited to 30% of the total amount of CPE required for renewal. In addition, hours served as an instructor, discussion leader, or speaker, combined with the preparation hours for those courses, are limited to 50% of the total amount of CPE required for renewal. Renewal instructions are included with the renewal forms. We urge you to read the instructions carefully. If you have any questions concerning permit renewal process, please call the Board office at 785-296-2162, or e-mail the Board at


MAY 2014

From the aicpa

The 2014 AICPA PCPS/TSCPA National MAP Survey is Here! The country’s largest CPA firm practice management benchmarking survey is now live! This survey is brought to you by AICPA’s PCPS (Private Companies Practice Section) and the TSCPA (Texas Society of CPAs), who are pleased to welcome back Aon Insurance Services as a proud survey sponsor. Targeted benchmarks will include billing rates, chargeability ratios, compensation, and other key performance indicators. The value of these benchmarks depends on broad participation among CPA firms. The survey is open to all public accounting firms* – please participate! You can sign up for the survey here. You’ll be prompted for your information, and an email with personalized sign-on information will be sent to you at that time.

The survey will close Thursday, July 31. For more information, please visit *You do not need to be a member of AICPA PCPS or TSCPA to participate.

Reinforcing the CPA Profession’s Commitment to Quality A new, comprehensive initiative to reinforce the CPA profession’s commitment to audit quality was unveiled. The Institute is taking a holistic approach to the accounting and auditing process, including the guidance, tools and resources that support members. Members will find more information in this Journal of Accountancy article.

The Future of Learning in the CPA Profession Anthony Pugliese and Lawson Carmichael of the AICPA’s senior leadership and members of the Future of Learning task force presented to the governing Council about the future of learning in the CPA profession. They discussed the rapidly changing marketplace, new learning trends and recommendations for the profession to evolve the way we engage, develop, deliver and measure learning and competency for CPAs. Read more about the vision for the future of learning in this Journal of Accountancy article.

Celebrating 10 Years of Improving America’s Financial Literacy The AICPA, the state CPA societies and the CPA profession launched 360 Degrees of Financial Literacy in 2004 to educate and prepare Americans of all ages for a financially sound future. During the last decade, all state CPA societies participated in the effort, thousands of CPAs volunteered and more than 2,500 financial education events were held. Many initiatives launched, including the Feed the Pig PSA campaign, Save Wisely. Spend Happily. and Total Tax Insights. Learn more at here.

CPA2Biz Changes Name to CPA2Biz, the AICPA’s technology subsidiary, announced its company name change to to more closely align with its mission of empowering CPAs and businesses for the digital age. The new name is effective immediately and will be rolled out over the upcoming months. The URL for the AICPA Store,, will remain active for the foreseeable future. 39

MAY 2014


Let the Public Know You’re Out There! All members receive a FREE listing on Find-A-CPA. Go to, login, and click on Member - update your profile and include yourself in Find-A-CPA. The Find-A-CPA referral service lists participating members, and can put clients in touch with you! Please note that this listing is not a Member Directory and does not include all CPAs in Kansas. This is an opt-in service for KSCPA members only. Searches can be performed by city, size of practice, service, and industry expertise. Users can also view a listing of all CPAs that have opted-in.


MAY 2014

Kansas Job/Career Fairs - 2014 2014 University events: Military/Veteran Events: • Fort Leavenworth – August 12, 2014 Contact:

Other: • – click on “Job Fairs” on the left • KC area – July 21 • KC area – July 29


GR WTH It’s what CGMA stands for. Officially, of course, it’s Chartered Global Management Accountant. A new designation representing accomplished professionals that drive and deliver business success, worldwide. Find out more at

CGMA_HalfPage_ADS_cobrand.indd 3


MAY 2014

Copyright © 2012 American Institute of CPAs. All rights reserved.

Attend the Premier Business & Industry Conference June 17 INTRUST Bank Arena - 8 hours CPE - Only $200 for Members Click Here to Register

1/26/12 4:01 PM


accounting biz brokers, llc CPA Firm/Tax & Bookkeeping Firm

donors, grantors, creditors, and others with timely and accurate information. TheWichita IRC office has an operating budget of approximately $825,000, including federal, state and private grants/contracts. The successful candidate will have a bachelors degree, 5 years accounting experience, strong computer skills including Microsoft Word (knowledge of Quickbooks and/or SunSystems a plus), and experience working in a multicultrual environment. Apply online:

*KS1036* SE KS Tax & Bookkeeping Firm Gross $232k, Asking $189k! *KS1037* Wichita CPA Firm Gross $185k, Asking $199k! *KS1038* S Central Tax & Bookkeeping Firm Gross $256k, Asking $229k! Are YOU ready to sell! Contact us today for a free no-obligation consultation! Contact Kathy Brents:, or 501-514-4928


KC&G BUsiness Appraisal associates, inc. Financial Analyst

KC&G Business Appraisal Associates, Inc. is a small but growing team of finance, accounting, and valuation professionals. We are searching for a Financial Analyst to work directly with the owners of KC&G, our team of associates, and our clients to prepare financial analysis, company and industry research, modeling, and the valuation of closelyheld companies. KC&G’s comprehensive valuation services include analyzing the economic, industry and competitive environments in which our clients operate. For more information about KC&G, please visit

iNTERNATIONAL RESCUE COMMITTEE Finance and Administration Manager


MAY 2014

The Wichita office of the International Rescue Committee (IRC) seeks a Finance and Administration Manager to control and manage the implementation of the accounting systems, as well as collect and process IRC’s financial data in order to provide management,

We are looking for a CPA with five to 10 years of experience interested in joining our Investment Advisory/Financial Planning practice in Overland Park, Kansas. We are an independent, fee-based Investment Advisory firm and do not offer tax preparation services. At Steffes Financial, we have two CFP® certificants and three support staff servicing over 200 wealth management clients and 35 corporate 401(k) plans with over $250 million in assets under management. We are looking for an advisor willing to learn our processes, help improve our systems and help develop the client referrals we receive from the 401(k) plans and existing clients. We offer a competitive compensation package with unlimited upside potential. Our work environment is fast-paced and energetic, and we do not have time for cold calling, seminar marketing, or time sheets. If you are a CPA with an entrepreneurial mindset looking for a long-term financial career and not just a job, then this opportunity may be for you. Advisor will be expected to secure a Securities license and the CFP® designation. Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisory Services offered through Steffes Financial, Ltd., a Registered Investment Advisor. Cambridge Investment Research, Inc. and Steffes Financial, Ltd., are not affiliated entities. Contact Gerald Steffes, CPA/PFS, CFP®, AIF® by phone at 913-722-1111 or

Morton county health system Chief Financial Officer Morton County Health System is an acute care hospital that provides inpatient and outpatient services and has long-term care and assisted living facilities. The organization is seeking a full time Chief Financial Officer. Prefer a CPA but will consider a 4 year accounting degree. Applicants must have the ability to work closely within a team environment, provide leadership and pose a professional, positive working attitude. For more information please notify the Human Resource Department at 620-697-5250 or email your resume to EOE

Mapes & miller llp Staff Accountant Mapes & Miller LLP is looking for a CPA or an individual eligible to sit for the CPA exam for our Phillipsburg office. Duties will include tax preparation, auditing, and other accounting services. We offer a competitive salary with opportunities for career and professional growth.

Tax & Accounting Supervisor We are searching for an accountant to join our team in Wamego, KS in the area of audit, tax and consulting. This person will provide our clients with exceptional service including tax compliance and planning; financial statements, audit, reviews and compilations: and general business consulting. A qualified applicant will have a minimum of a bachelor’s degree in accounting, 5+ years of experience, and a CPA license. They will have high level accounting and tax preparation skills, including tax research and problem solving abilities. They will be familiar with professional auditing standards, have broad accounting software knowledge, possess a keen acumen for a general ledger, and exhibit excellent written and oral communication skills.

Please send your resume to Mapes & Miller LLP, PO Box 266, Phillipsburg, KS 67661 or e-mail to mmpburg2@

Compensation will include a market level base salary, dependent upon professional experience, education, and licensure. Benefits include a Simple IRA, two (2) weeks of paid vacation, six (6) paid floating holidays, three (3) paid sick days, and a business environment that is both professional and casual.

valley hope technology

Contact Sue Muckenthaler, 785-456-2000 or

Accounting Analyst - CPA Driven by the success and continued expansion of the iAC/ESS software commercial sales and other value-added services, Valley Hope Technology is seeking applicants for a Commercial Accounting Analyst position for our Mission, Kansas location. This position’s primary responsibilities include investigating, analyzing and resolving complex accounting issues, ensuring accounting accuracy through auditing and monitoring financial data, and providing training and support to commercial clients integrated with iAC/ESS accounting software. This is an important position that will play a significant role in the growth of the iAC/ESS services for the Kansas City area. Send resume to


reese and novelly, pa

MAY 2014

mcFARREN, MAGNIFICO & SWART CPAs, PA Experienced CPA with a Fast-Track to Ownership Are you a CPA with a strong work ethic and a mind towards ownership in the near future? We are a local CPA firm that encourages and supports professional development and community involvement. A strong professional, with public accounting background and in-depth tax experience, who shows qualities of innovation, communication, and self-motivation, is the ideal candidate to complement our accounting practice. If interested in this opportunity, e-mail your resume to Trina Swart at

Hewittt & company, pa Staff Accountant

services since 1971, with offices in Abilene, Junction City, and Manhattan.

Looking for a CPA with a strong work ethic with ownership in the future. We are a local CPA firm with a growing client base. . A strong professional, with public accounting background and in-depth tax experience, who shows qualities of innovation, communication, and self-motivation, is the ideal candidate to complement our accounting practice.

For confidential consideration, please send your resume and salary requirements to Pat Parker, Audit Partner, Pottberg, Gassman & Hoffman Chartered, 529 Humboldt Suite I, Manhattan, KS 66502, or email to

If interested in this opportunity, e-mail your resume to Scot Hewitt at


Sink, gordon & associates llp Audit Manager Position requires a valid CPA license and at least a Bachelor’s degree. Minimum of 5-7 years’ experience in public accounting with focus in auditing of municipalities, non-profit organizations and private (non-SEC) companies required. Position will manage an audit department of 5-7 employees on audits and attest engagements in eastern Kansas. Position will oversee the audit engagement and staff from the planning stages to the review stages of each audit; communicate directly with clients and their staff and present audit reports to clients upon completion. Position must ensure compliance with all AICPA, GASB and FASB audit technical guides to properly prepare audits in accordance with the firm’s quality control standards and peer review standards. Minimal overnight travel and the ability to supervise several projects and 5-7 people at once is a must. This position will report directly to the Audit Partner. Salary commensurate with experience. Candidate must be willing to re-locate to the Manhattan, Kansas area. Assistance with relocation expenses to be considered. Advancement opportunities available.

Financial Examination Specialist or Advisor The NAIC is seeking for a seasoned Financial Examination Specialist or Advisor. Interested applicants should have a degree in accounting and a solid understanding of financial statement auditing. Please visit

fhlbank topeka Mortgage Loan Accountant 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 a:

Tax & Audit Manager

Mortgage Loan Accountant The individual in this position is primarily responsible for accounting and reconciliation processed for FHLBank’s mortgage loan portfolio and related mortgage loan products; required reporting and disclosure on mortgage loan information in accordance with generally accepted accounting principles (GAAP) and Securities Exchange Commission (SEC) requirements; interface and interaction with the Product Administration and Credit Analytics departments, and FHLBank of Chicago to obtain necessary information for mortgage loan accounting, reporting and disclosure.

We are seeking a CPA at the manager level with at least 5 years experience in tax and auditing. Our tax practice includes individual, business and nonprofit clients. Audit clients are local governments and nonprofits, with no overnight travel required. This position offers advancement opportunities and an excellent salary and benefit package in a great working environment. Pottberg, Gassman & Hoffman, Chartered has been providing auditing, accounting and tax

Qualifications • Bachelor’s degree in accounting or equivalent work experience. • Three to five years of relevant experience. • Knowledge of generally accepted accounting principles and theories required. • Knowledge of mortgage loan accounting preferred. • MS Office products including Word, Access and Excel, and

Please send resume or direct inquiries by email to Chad at

pottberg, gassman & hoffman, chtd.


MAY 2014

software accounting applications. • At least one year previous experience on accounting reconcilements and working with daily deadlines preferred. • Efficient 10-key operation. • Excellent written and verbal communication skills. • Ability to travel as needed. Ability to work the number of hours required to meet the demands of the job. 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. To see a more detailed job summary and apply for this position, go to the Bank website at

Topeka Public schools Director of Budget and Grant Accounting Position Purpose: To manage the District wide coordination and preparation of the District’s budgets, monitoring their implementation, and monitoring financial accountability for allgrants awarded to the District. The incumbent also advises in the creation of and reviews all grant applications in compliance with Board of Education regulations, policies, statues and federal guidelines. Qualifications: The incumbent must have knowledge of Kansas Statutes, a B.S. in accounting or business-related subjects. Prefer CPA certified. Extensive experience in governemental accounting is essential. Fund accounting, grant compliance and management skills are expected. Salary: $73,800


To Apply:

Topeka Public schools General Director, Fiscal Services This position serves as treasurer to the Board and supervises the Business Management Department. The incumbent is the chief fiscal officer for the school district. Qualifications: Extensive training in accounting, money and banking, and payroll management is essential. B.S. in Business Administration (emphasis in accounting preferred) CPA preferred Background in Kansas school finance preferred. Registered School Business Official/Adminitrator with the Association of School Business Official International preferred. Salary: $87,000 To Apply: please apply online at Contact: Ruth Marstall, Recruitment Coordinator 785-295-3019 or EOE/M/F/D/V


MAY 2014

Contact: Ruth Marstall, Recruitment Coordinator 785-295-3019 or EOE/M/F/D/V

Click here to post a classified

Mark Mark Your Your Calendar! Calendar! 2014 2014 EVENTS


AICPA Accounting Scholars Leadership Workshop

Governmental & Nonprofit Accounting & Auditing Conference

July 10-12, 2014 - KC Metro Area

June 9-10, 2014 - Wichita

“20 up to 40” Session 3, Leadership Development

Business & Industry Conference June 17, 2014 - Wichita

July 24-25, 2014 - Wichita Conference on Kansas Taxes

Board Strategic Planning Retreat

June 24, 2014 - Mayetta

July 31-August 1, 2014 - Colorado Springs

“20 up to 40” Session 4, Team Building

Business & Industry Conference

September 25-26, 2014 - Overland Park

October 23, 2014 - Arrowhead Stadium

“20 up to 40” Session 5, Graduation

Business Valuation Workshop

November 18-19, 2014 - Wichita

October 24, 2014 - Lenexa

Annual Meeting, Professional Issues Update & Leadership Summit

64th Annual Kansas Tax Conference November 20-21, 2014 - Wichita

November 19, 2014 - Wichita Heartland Technology Conference December 11-12, 2014 - Overland Park


Women to Watch Click Here to Nominate Awards will be presented at KSCPA Annual Meeting November 19, 2014 - Hyatt Regency Wichita


MAY 2014

Designed for the profession, by the profession.


May 2014 "Business & Industry" Issue of Skyscapes  

Newsletter of the Kansas Society of CPAs

May 2014 "Business & Industry" Issue of Skyscapes  

Newsletter of the Kansas Society of CPAs