INSIDE THIS ISSUE
Dissecting Skyscapes Summer 2013 SUMMERCorporate ISSUE Values BY LYNN FOUNTAIN, CPA, CGMA, FOUNTAIN GRC LLC
Dissecting Corporate Values
Reducing Fraud with Technology
Spring Leadership Report
f you were to visit websites of 50 of the top U.S. companies, what would you expect their declared corporate values to state? Possibly it would something like: Integrity; Honesty; Social Responsibility; Loyalty; Respect.
These are all very honorable intentions and principles. But how can stakeholders and society ensure corporations are executing these stated values in the manner in which the term represents? Let’s examine some of these principals and why corporate America may periodically question company’s true intentions behind those values.
3 4 9 10 11 16 18 19 20 22 23 28 29 31 34
From the Chair
© Copyright 2012 Lynn Fountain, used with permission.
Reducing Fraud with Technology GASB Issues Implementation Guide for Pension Plans Nonprofit of the Month Dissecting Corporate Values What Every CPA Needs to Know About Patient Protection & the Affordable Care Act “20 up to 40” 5th Anniversary Reception Professional Issues Update with AICPA President & CEO, Barry Melancon, CPA, CGMA Spring Leadership Summit Report Professional Development Conference Wrap-Up Member & Vendor News New Members Classified Ads Mark Your Calendar! Events & Conferences
Statements of fact and opinion are made by authors alone and do not imply an opinion on the part of the officers or members of the KSCPA. Publication of an advertisement in Skyscapes does not constitute an endorsement of the product or service by Skyscapes or the KSCPA. Copyright © 2013 Kansas Society of CPAs; Topeka, KS. All rights reserved.
FROM THE CHAIR How Time Flies,
Executive Committee M. Aron Dunn, Chair, Designated Member of AICPA Council
Melinda A. Hitz, Vice Chair Michelle A. Schneider Secretary/Treasurer Robert J. Schuster, Immediate Past Chair
Here I am into just over half my term as your Chair and where has the year gone? So much has occurred in the past month alone.
Board of Directors (Term Expires 2013)
James K. Boomer Ginger L. Farney Carolyn C. George Jeffrey A. Leiserowitz, KSBOA Liaison Matthew R. List Mindi A. Ormiston
Board of Directors (Term Expires 2014)
Rebecca J. Casey Sean M. Copp Charles Gnizak Trisha A. Cavanaugh James A. Wurbs Gary C. Allerheiligen, Elected Member of AICPA Council
Board of Directors (Term Expires 2015)
Chad M. Allen Stephanie L. Bowen Mitchell Fiser Amber K. Goering Gregg C. Goodwin Dominic Ortiz, AICPA Member at Large of Council
Educational Foundation Board of Trustees Norman P. Hope, Chair Kenneth A. Selzer, Vice Chair Cheryl G. Hayward, Secretary/Treasurer John W. Denney M. Aron Dunn Johanna D. Lyle Paul T. Mason Gary A. Schlappe Gail L. Yarick Political Action Committee Denis W. Miller, Chair James T. Clark, Treasurer Amber K. Goering DeAnn A. Hill Eric T. Larson Kathryn J. Mitchell Michael V. Rogers Mary Rapp MacBain, CPA.CITP, CGMA President/CEO; Editor for Skyscapes Karen Mitchell, CPA, CGMA Finance Director Danielle Bulson, Marketing & Communications Manager; Copy Editor for Skyscapes Marlene Shellenberger, Administrative Manager Rita Barnard, Peer Review Administrator Contributing Writers: Thomas G. Stephens, Jr., CPA.CITP Lynn Fountain, CPA, CGMA Mary MacBain, CPA.CITP, CGMA The 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
First, the Kansas Society contingent participated in the AICPA Spring Council meeting in Washington, D.C. where we visited Capitol Hill to discuss various issues which included, among others, comprehensive tax reform, tax return due dates, mobile work force, patent holding companies, municipal advisor regulations and the DOL fiduciary rule. Then, the Society hosted the AICPA’s President and CEO, Barry Melancon for our spring professional issues update and leadership summit. Barry’s presentation included many interesting facts, trends and other information such as: the accounting profession has remained a strong profession with approximately half the unemployment rate of the general population, regulation continues to sky-rocket, the release of the new financial reporting framework for small and medium size entities, a private company council update, a discussion of the unsustainable federal deficits and budget issues, diversity in the profession and many others. The leadership summit was a big success in that the feedback and direction received can be implemented to continue to improve the Society and the value to the membership. The 20 up to 40 class had a great session and has taken full control to their project this year. We are looking forward to the presentation in November. The educational foundation presented to the Board a fund raising drive for a new endowed leadership scholarship in the name of Mary Ellen Kirkpatrick called Plan 365 which seeks to identify members willing to give a dollar a day. If you haven’t already, please consider donating to this incredible scholarship. Next, several conferences were held including the Governmental and Nonprofit Accounting and Auditing Conference, the Accounting and Assurance Services Conference, the Business and Industry Conference, and the Conference on Kansas Taxes. Based on what I have seen and heard, this might be the best conference year yet for the KSCPA and we continued to garner incredible speakers for these conferences. Finally, don’t forget about some important dates coming up including: opportunities and the annual meeting scheduled for November 20.
I hope you all enjoy your summer and get the opportunity to do something fun for a summer vacation. Warm Regards,
Reducing Fraud with Technology Thomas G. Stephens, Jr., CPA.CITP Introduction The statistics are everywhere and they are startling – fraud continues to run at epidemic levels, not only in the United States, but also across virtually all countries. In fact, according to the Association of Certified Fraud Examiners 2012 Report to the Nations on Occupational Fraud and Abuse, the typical organization loses approximately 5% of its gross revenues each year due to fraud, with the median loss pegged at $140,000. However, this need not be the case, because you already own some very effective tools for preventing and detecting fraud and they reside on your computer. In this article, I will provide some guidance for using tools that you already own – namely Microsoft Office Excel and Access – to help you detect fraud and to reclaim some of your profits that may be walking out the back door. Uncovering Financial Statement Fraud One of the more expensive types of frauds committed is that of financial statement fraud. These frauds can be committed using any number of techniques, including recording fraudulent journal entries. Common characteristics of fraudulent journal entries include those in round dollar amounts and those entered on weekends. In the example shown in Figure 1, selected fields from the Journal table have been extracted into an Excel Table from a company’s accounting database. Two calculated fields are used to identify transactions in round dollar amounts and those transactions entered on Saturday or Sunday. After creating the formulas, the results can be filtered to identify specific transactions of interest. Note the formulas used to identify transactions of interest in Figure 1. One formula uses the WEEKDAY function to identify the day of the week that the journal entry was recorded. Transactions entered on Saturday or Sunday evaluate to “7” and “1” respectively. The other formula uses the MOD function to calculate the remainder of the debit amount divided by 1,000. Transactions entered in even $1,000 amounts generate a result of “0”.
Figure 1 - Identifying Suspicious Journal Entries
Finding Duplicate Payments Another way that fraudsters may commit a billing scheme fraud is to make multiple payments on a valid invoice. Generally, when a legitimate vendor receives a duplicate payment, the vendor notifies the customer and asks how the duplicate payment is to be handled. In these cases, the person committing the fraud will request a refund and then intercept and negotiate the refund check. Identifying and investigating duplicate payments becomes an important part of the fraud prevention and detection process. Microsoft Access has a query wizard for identifying duplicate values in a field or across multiple fields. From a fraud detection standpoint, this feature can be very effective in identifying potential duplicate transactions, 4
such as duplicate payments of the same invoice. To begin the process, select Create, Query Wizard from the ribbon. In the New Query dialog box, select Duplicate Query Wizard and then click OK, as shown in Figure 2.
Figure 2 â€“ Find Duplicates Query Wizard in Microsoft Access
Next, select the source data to query. Once the data source has been chosen, select the field or fields containing possible duplicate values, and then select any additional fields to be displayed in the query results. In this case, select Name and Amount as the fields that contain the possible duplicates, and then choose to display all fields in the results. Finally, name the query for future recall and click Finish to view the results, as shown in Figure 3.
Figure 3 â€“ Duplicate Payments Identified with Access Query
Using the ActiveData Add-in for Excel ActiveData is an add-in for Excel that uses pre-defined automated processes to overcome the general lack of user knowledge and skill required to perform sophisticated fraud analysis in Excel. Priced at $249 per user, most potential users of ActiveData will not find the acquisition cost to be a barrier to obtaining the functionality embedded in this tool. 5
For example, ActiveData can be used to stratify data easily. Stratifying data is an effective technique for identifying areas of risk. Select Strata from the ActiveData tab, define the stratification bands, and then click Stratify. Click Finished to write the results along with a chart to a new sheet in the workbook, as shown in Figure 4. In this case, though 55.89% of all transactions are below $1,000, 91.67% of the financial risk is borne by transactions in the $1,000 to $20,000 strata.
Figure 4 – Stratification Results and Chart in ActiveData
Performing a Beneford’s Law Test with ActiveData Benford’s Law is a powerful tool in detecting fraud because it allows examiners to test numbers against recognized norms. In doing so, significant deviations from these expected values can be investigated to determine if there is evidence of fraud. Benford’s Law is especially useful at identifying bogus transactions and at spotting transactions manipulated to avoid authorization and approval. For accountants and auditors faced with the suspicion of bogus or illegal transactions entered by employees, Benford’s Law provides an excellent means of highlighting transactions that do not fit expected norms. ActiveData provides an automated process for applying Benford’s Law. Begin the analysis by selecting ActiveData, Digital Analysis to open the Digital Analysis Using Benford’s Law dialog box.
Figure 5 – Setting Options for Benford’s Analysis in ActiveData 6
In the dialog box, select InvoiceAmount as the Column to Analyze and set the Confidence Level to 95.00%. Check Chart Results, First Digit Test, Second Digit Test, and First 2 Digits Test, as shown in Figure 5. Click Finished, and ActiveData will complete and display the analysis on a new worksheet. The results of the First Digit Analysis are displayed in Figure 6.
Figure 6 – Results of First Digit Analysis Performed in ActiveData
Note that “8” and “9” are significantly oversampled, as indicated by the magnitude of the Z Statistic. An examination of the results of the First 2 Digits Test (not shown) indicates that “83,” “88,” “95,” and “97” are significantly oversampled. The auditor should concentrate his examination on those transactions whose invoice amounts begin with the oversampled numbers. Summary Far from an exhaustive listing of all the ways you can use desktop technology to identify potential instances of fraud, the three examples presented above – 1) identifying potentially fraudulent journal entries with Excel, 2) testing for duplicate payments with Access, and 3) using Benford’s Law to identify potentially fraudulent transactions – should be “eye-openers” with respect to how we can use technology to curtail fraud. Remember, with fraud running at epidemic levels, using technology to prevent and detect fraud can provide an immediate positive impact on your bottom line.
ABOUT THE AUTHOR Thomas G. Stephens, Jr., CPA.CITP Mr. Stephens 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 email@example.com.
www.AccountingBizBrokers.com Kathy@AccountingBizBrokers.com Kathy Brents, CPA CBI 813 Oak Street 10A, #298 | Conway, AR 72032 P: 866.260.2793 or C: 501.514.4928 F: 866.260.2793
SUMMER 2013 NORTH AMERICA'S LEADER IN PRACTICE SALES
An aямГliate of Accounting Practice Sales
GASB ISSUES IMPLEMENTATION GUIDE FOR PENSION PLANS The Governmental Accounting Standards Board (GASB) today published an Implementation Guide for the new GASB standards regarding financial reporting for state and local government pension plans. The Guide to Implementation of GASB Statement 67 on Financial Reporting for Pension Plans is an authoritative resource designed to assist preparers and auditors of state and local government pension plan financial reports as they prepare to implement the standards, which are effective for periods beginning after June 15, 2013. Prepared by the GASB staff, the Implementation Guide answers key questions about putting the new standards into practice. Topics addressed in the Guide include: • • • • • •
The scope and applicability of GASB Statement No. 67, Financial Reporting for Pension Plans The classification of pensions as defined benefit or defined contribution The determination of the number of pension plans that should be reported The recognition of certain transactions and other events in defined benefit pension plan financial statements Note disclosures and required supplementary information The calculation of the net pension liability
“During the development and after the issuance of Statement 67, users, preparers, and auditors of pension plan financial reports posed questions to the GASB staff regarding the application of the standards,” said GASB Chairman Robert H. Attmore. “This Implementation Guide is written in a question and answer format and provides illustrative examples to assist stakeholders when applying the new standards for pension plan reporting.” Mr. Attmore continued, “We are also pleased to announce that a digital version of the Guide will be the first guide to be offered on the GASB website as a download at no cost. Furthermore, all subsequent guides will be available on the GASB website at no cost moving forward.” A hard copy bound edition of the Guide can be ordered for $46.50 plus shipping by visiting the GASB store, or by calling the GASB Order Department at (800) 748-0659. An additional implementation guide for GASB Statement No. 68, Accounting and Financial Reporting for Pensions, will be available in early 2014. The provisions in Statement 68 are effective for periods beginning after June 15, 2014. For more information on Statement 67, visit the GASB website. About the Governmental Accounting Standards Board The GASB is the independent, not-for-profit organization formed in 1984 that establishes and improves financial accounting and reporting standards for state and local governments. Its seven members are drawn from the Board’s diverse constituency, including preparers and auditors of government financial statements, users of those statements, and members of the academic community. More information about the GASB can be found at its website, www.gasb.org.
Nonprofit of the Month TARC was formed by a small group of local families in 1954 seeking to improve the lives of their children with intellectual disabilities. Since that time, TARC has grown to serve over 2500 individuals and families in the Topeka and Shawnee County area through service, support and advocacy. Our programs and services include an infant/toddler program, adult day services, senior day services, case management, employment services, assistive technology and self determination. Giving to TARC is an easy choice and now easy to do with so many options: online, by phone, by mail, in person and planned giving. TARC is also able to accept donated vehicles and in-kind donations from the ”Wish List” below. TARC also loves the gift of time for those who would like to volunteer with TARC. TARC, Inc. has partnered with PayTrace to provide easy and secure online donation options from your Visa, Mastercard, Discover, or Checking Account. PayTrace also gives donors the option of managing their donations by offering recurring monthly donations. To donate, click here. For online payment support please call Allyson Shove at 785-506-8720. For questions, or additional information about making a donation to TARC, call Sherry Lundry, Development Director at 785-506-8679. To make a payment by mail please send your check to: TARC, Inc. 2701 SW Randolph Avenue Topeka, KS 66611 TARC is able to accept in-kind donations which are currently listed on its “Wish List.” Because of space restraints TARC is only able to accept those items in high demand listed on the “Wish List.” For any questions or unique in-kind donations call Allyson at 785-506-8720. Adult and Senior Day Services Program Adults and Seniors in the Day Services program love to play BINGO and having fun prizes on hand is a must. If you have small items which can range anywhere from perfume, make-up, stuffed animals, knick knacks, decorative boxes, jewelry, or baseball cards TARC would love to accept them as a donation. Please call Allyson at 506-8720 to make arrangements. Adult and Seniors in our Day Services program love Art Therapy time. Any art supplies will be gladly accepted. Please call Allyson at 506-8720 to make arrangements. TARC’s Adult and Senior Day Services Program is planning their garden for the year. Thanks to the local outpouring of support TARC has all of the needed vegetables. There has been a request for some flowers to be potted and grown by Day Services. Please call Allyson with any questions at 785-506-8720. Plants may be brought to the main office 2701 SW Randolph Avenue Topeka, KS 66611. TARC is in need of four to six matching conference chairs in good condition. Please call Allyson at 785-506-8720 to make delivery arrangements.
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,firstname.lastname@example.org, to get the word out! 10
Available as online self-study! Click here!
Dissecting Corporate Values BY LYNN FOUNTAIN, CPA, CGMA, FOUNTAIN GRC LLC
f you were to visit websites of 50 of the top U.S. companies, what would you expect their declared corporate values to state? Possibly it would something like: Integrity; Honesty; Social Responsibility; Loyalty; Respect.
These are all very honorable intentions and principles. But how can stakeholders and society ensure corporations are executing these stated values in the manner in which the term represents? Let’s examine some of these principals and why corporate America may periodically question company’s true intentions behind those values.
11 SUMMER 2013 © Copyright 2012 Lynn Fountain, used with permission.
Integrity The Wikipedia definition of integrity is ”Doing the right thing when no one is looking.” Just the mere fact that federal regulators see fit to continue to place regulations on corporations and the way they conduct business might beg the question “Is legislation required to get corporations to do the right thing when no one is looking?” Here is an analogy, we raise our children to “do the right thing” however we know there are many external influences that may tempt our children to “fudge” if certain pressures are experienced. To try to mitigate this risk, we put rules in place so the children will know what the consequences are of not doing the right thing. That tactic may work well for young children, but as they mature, we often aren’t present when they may be faced with certain choices. We hope we’ve taught them the right values so they will make the right choices, but as we all know, sometimes the pressure and rewards of the moment will entice a wrong decision. Now assume they chose not to do the right thing...and... there were no consequences because no one knew. What is the probability they will be influenced the next time they are faced with a similar decision? Now let’s utilize this analogy in a business setting. Integrity in a business setting also equates to “professionals doing the right thing when no one is looking.” So why do we spend all the time setting up rules and guidelines in the form of policies and procedures? These procedures aren’t necessarily established because we question the integrity of individuals in the organization. They are designed to help guide proper execution of responsibilities and as an attempt to ensure that employees understand the expectations of the organization. In addition, most organizations are subject to some type of regulatory rules. Those rules may be in the form of financial reporting, taxation, labor laws, environmental health and safety issues as well as a host of other issues. These often require specific written procedures to ensure proper execution. So when it comes to the issue of “integrity,” does the establishment of these procedures mean we may question whether people will do the right thing when no one is looking? Not necessarily, especially in the cases where the requirements may involve specific technical issues that aren’t readily known by each professional. The concept of integrity is better correlated to behavioral type actions. In other words, it assumes individuals understand what the proper course of action is (e.g. stated policies and procedures). Then the integrity question begins to focus on “will they choose the right path, even when no one is looking.” Policies and procedures assist in guiding the professional down the right path, but because
© Copyright 2012 Lynn Fountain, used with permission. 12 SUMMER 2013
behavior is involved, there is still the individual choice. Individual choice and behavior cannot always be predicted or ensured. That is why we have checks and balances, laws and regulations, courts and the legal system. In the corporate setting, compliance, internal audit, external audit and other quality check processes exist that serve as these checks and balances. These functions are put in place to hold individuals and organizations accountable. Integrity in the workplace can also be translated to the manner in which organizations embrace and accept recommendations, evaluations and observations identified. If the organization resists observations or recommendations, or attempts to provide reasoning’s and explanations as to why the observations are not important or relevant, they may be unintentionally undermining the integrity of not just the organization but individuals within the organization. Weren’t the policies and procedures put in place to guide proper behavior that the organization deemed important? If so, why would we minimize compliance findings? When we think of integrity in the workplace, we often correlate the concept to the behavior of supervisors or executives. However, integrity relates to every single person’s actions in the organization. As such, both management and professionals must display the proper behavioral characteristics of upholding the mantra of “doing the right thing.” One of the possible solutions to this dilemma is that management must ensure that any policies and procedures established are those which the company truly requires to be upheld and as such, any deviation from policy should be dealt with in an up-front and diligent manner. It is often the small observations that lead many down the path of larger longterm difficulties. Corporate social responsibility (CSR) This is often characterized in the public as a company’s altruistic contributions. Yet social responsibility steps far beyond being a good citizen and contributing to charitable causes. The term CSR came into popularity in the 1960’s and 1970’s when multinational companies coined the term “stakeholder.” The concept originated as a mechanism for organizations to display that they were accountable to their shareholders and broader stakeholders. The term has grown in popularity post many of the recent corporate scandals and also partially attributable to the renewed emphasis on the environment and going green concepts. Some criticisms of the CSR initiative is that the chief responsibility of business is to make a buck – and the social responsibility of government is to be sure
that perfectly proper corporate greed is channeled and constrained for the greater good of all. However, placing CSR solely in the hands of the government regulators appears to be a reactive way of approaching the inherent issue of working towards a safer and better world.
activities. In addition, their organizations are being socially responsible through fund raising drives, continual improvement of their facilities to provide the ultimate fan experience and focus on the safety and security of every single individual attending their events (only to name a few).
So what makes a company a good corporate citizen? Is it contributions to worthy causes? Creating employment opportunities for the community? Focusing on renewables and going green concepts? Providing value to its shareholders? Each of these items is important. In today’s volatile economy, organizations must strive to examine their efforts in this arena and look towards a broader reach of social responsibility.
On the needs improvement front, when an athlete or professional sports organization is found to have done something wrong, the message quickly hits every type of social media that exists. Whether the issue concerns an incident with the questions surrounding steroid use by a baseball athlete or the incarceration of an athlete for a crime or even the current Penn State incident, these issues may not always provide the general public with the best representation of corporate social responsibility. Could individuals associated with these instances claim that their actions were in the best interest of the stakeholders? Also, linking corporate social responsibility to integrity, could individuals associated with the incidents claim “they did the right thing when no one was looking.”
Let’s examine a few examples utilizing three very different business scenarios. We will examine positive traits as well as improvement opportunities. Scenario one - The professional sports team Scenario two – The multinational oil company tasked with supplying fuel/oil for the world Scenario three - The large multinational food, manufacturing company. You can already begin to imagine scenarios of corporate social responsibility in each of the examples, but can you identify where improvement opportunities may lie? Scenario One – Professional Sports The ever popular world of professional sports and the concept of social responsibility are strongly linked. Athletes are idolized for their unique physical abilities and accomplishments. For instance, who comes to mind when you think of: • The Chicago Bulls? (Michael Jordan); • The San Francisco 49rs? (Steve Young and Joe Montana); • The New Orleans Saints? (Drew Breeze); • Pro Golf? (Tom Watson, Tiger Woods) These individuals can represent the face of their organizations. A result, their behavior and actions reflect on the organization. On the positive side of social responsibility, these individuals along with their organizations contribute strongly to a multitude of efforts in the communities in which they exist. The athletes themselves are encouraged by their teams to form charitable organizations to help out their communities. Most people enjoy seeing the professional football player who travels miles to grant a sick child’s wish of meeting their childhood hero. In a sense this is showing corporate responsibility. These athletes don’t have to do this yet we see many who offer their time talent and money to these types of
The answer to these questions seems obvious as we view these events in the rear view mirror. But where was the concept of social responsibility when the act occurred and why didn’t someone speak up with their concerns? Or did someone speak up, only to have their concerns silenced due to the negative implications such an act may have on the organization? With the Penn State incident, it appears information was available long before the issue broke into the media. Concerns were even raised to certain levels of management. But swift and effective actions were not taken to protect the interests of society as a whole. For whatever reason, judgments were made regarding the alleged events and the reputational impact that may occur. Was corporate social responsibility appropriately represented here? On a separate front, when the famous quarterback of the Pittsburgh Steelers was accused of sexual assault for a third time, the NFL chose to make a statement. Although the charges were eventually dropped, the NFL chose to apply a several game suspension for any inappropriate behavior on the athlete’s part. This was their method of making a social statement that this type of behavior was not acceptable. Scenario Two – Oil Company The Gulf oil spill is one of the most recent incidents highlighting the topic of corporate social responsibility. In this instance there were early indications that certain components may not be manufactured to the quality specifications to withstand certain forces. Those concerns were silenced within the organization due to the company’s tolerance or acceptance of the potential of such a significant event which they predicted to be at a very low likelihood. Does this rep-
© Copyright 2012 Lynn Fountain, used with permission. 13
resent proper corporate responsibility? Examining this issue further, British Petroleum (BP) had a strong CSR campaign in place at the time of the spill. In July 2000, they launched a high-profile $200M ad campaign to position the company as environmentally friendly. BP introduced a new slogan “Beyond Petroleum” and changed its 70 year old logo to a green and yellow sunburst. This pitch was aimed at BP’s smallest energy sector (renewable energy) while ignoring its investment in extractive oil operations. In 1999 BP spent $45M to buy a solar energy company. This investment is small compared to the $26.5B BP invested to buy ARCO to expand its oil drilling portfolio. Some contend that BPs public campaign was hypocrisy and was aimed at diverting the public’s attention away from some of BP’s major environmental problems of recent history: • In 2005, a major explosion destroyed a gasoline-filled tower at BP’s Texas City, TX refinery. Fifteen people were killed and 170 more were injured. Investigation showed BP had ignored its own protocols for operating the tower. It had also disabled an early warning tower. Although BP plead guilty and paid more than $50M in fines, it didn’t appear to impact their overall corporate social responsibility culture. • In 2006, BP was responsible for a leak of approximately 4,800 barrels of oil into the snow around a pipeline in Alaska’s Prudhoe Bay. BP had been warned by one of its own quality assurance specialists that they could expect a potential catastrophe from the corroded pipeline, but the company ignored the reports until it was too late. • In May 2008, BP was involved in another major environmental incident. They were one of eight oil companies to settle a lawsuit brought by a host of public water providers who charged that the companies’ activities led to widespread contamination of public groundwater sources with methyl tertiary butyl ether, or MTBE, a gasoline additive. The companies jointly paid $423 million in cash, and agreed to pay 70 percent of future cleanup costs over the next 30 years. The suit claimed the oil companies used MTBE even though they were aware of the environmental and health risks the chemical posed. • The U.S. Department of Justice has also charged BP with manipulating the market price of propane. BP agreed to pay over $300 million in fines in the case. So what are the lessons learned from this real life scenario? Some would contend that CSR and the organizations ultimate goal of financial earnings did not align properly. However, that concept can also be debated regarding the sincerity
© Copyright 2012 Lynn Fountain, used with permission. 14 SUMMER 2013
of the organization’s efforts towards CSR. The BP scenario is an obvious example of a company putting forth a positive reputational front yet not executing in line with their stated corporate responsibility. It could be contended that their CSR efforts were miss-guided by only focusing on a small segment of their business and not performing as an integral part of their actual operating culture. The outcome of the Gulf incident points to the inherent conflicting relationship between business and society. Charitable deeds performed by companies in their off-hours should not be the focus of CSR. The focus should be whether they are doing their day jobs in ways that help or hurt the rest of us. In the instance of BP, a true indication of dedicated CSR would have been specific and definitive actions after the 2005 Texas explosion with publicized lessons learned and corporate responses. In other words, BP could take a few lessons from the Johnson & Johnson 1982 Tylenol scare and the manner in which they handled the contamination concerns. Scenario Three – Food Company The 2008 milk scandal in China involving melamine is a strong example of the delicate balance of power between social responsibility and corporate earnings. The melamine incident first became public in September 2008. By November 2008, there were 300,000 victims reported. The World Health Organization reported the chemical melamine was added to milk to make it appear to have higher protein content. The incident was referred to as a large-scale intentional activity to deceive consumers for simple, basic, short-term profits. The company at the center of the scandal was a Chinese company named Sanlu. A New Zealand dairy cooperative, Fonterra, owned a 43% stake in Sanlu. Although there was an immediate trade recall, Fonterra said that local administrators refused an official recall. The value of the company plunged as a result of the scandal. On 24 September, Fonterra announced it had written down the carrying value of its investment by two-thirds, reflecting the costs of product recall and the impairment of the ‘Sanlu’ brand because of the “criminal contamination of milk”. An agent from a Dairy Company in northwest China publicly discussed his fears about unauthorized substances being added to competitors’ milk. His complaints to regulators and dairy makers in 2005 and 2006 never yielded any result. Although his story was picked up by China Central Television the Shaanxi Quality and Technical Supervision Bureau said they failed to find evidence of wrongdoing. The bulletin board of the Administration of Quality Supervi-
sion, Inspection and Quarantine (AQSIQ) indicated a rare occurrence of kidney stones in children–all causally traced to Sanlu milk formula–was flagged by at least one member of the public in June 2008 and by a urologist in a pediatric hospital on in July 2008. Neither received definitive replies. In June, Jiangsu media reported a two-month surge in the number of babies diagnosed with kidney disease; in July, a parent of a sick baby in Hunan questioned Sanlu’s milk powder and complained to the AQSIQ. Gansu Province sent a report to the Ministry of Health on 16 July to alert that one local hospital had identified an increase in the incidence of kidney ailments among babies in the months earlier, and that most victims had consumed Sanlu’s baby formula. The health ministry sent investigators to Gansu in early August. Again, where was true corporate social responsibility? A conscious and dedicated program would have taken a stronger hold on the issues and mitigated exposure at a much quicker rate. And we wonder why consumers question the concept of social responsibility as labeled by companies. What are the lessons learned in these 3 examples? If CSR is a stated value, companies should be prepared to back up their words with true actions when unforeseeable events occur. Honesty If you believe in the saying “honesty is the best policy”, then you may be in the minority when it comes to specific business issues. There is another saying that “what they don’t know won’t hurt them”. Those both seem very much controversial and opposite positions. How many times do we truly question this philosophy in our own organization? Do we believe that honesty is truly in play at all levels of the organization regardless of timing or positioning? Is honesty being practiced even “when no one is looking” or is there some aspect in play regarding “what they don’t know won’t hurt them?” If professionals feel that this attribute is one in which the corporation is just providing “lip service” as a way of helping in times of need, individuals may question the overall integrity of the organization. Honesty must be displayed and practiced in everyday settings and by each and every individual. The old thought of out of sight out of mind should not be present when dealing with true honesty in the workplace. If individuals feel like they must make themselves invisible for a certain reason, or lay low due to issues that have surfaced, they will question managements true intentions related to Honesty.
Loyalty & Respect What comes first? Loyalty or respect? The chicken or the egg? Loyalty can often bread respect while respect can enhance loyalty. But the culture and the atmosphere created must include many other attributes that allow loyalty and respect to build among professionals and co-workers. You were probably told when you were young to “respect your elders”? Like any other child, you may have thought, why do I need to do that?” Now use this thought process in a professional setting. Early in our careers, it is probably much easier to accept the directive that we should respect those in higher positions or those who have been in the workforce longer. They have seen things, experienced things and lived things that we may not have yet encountered. But as we continue to mature in our professional experience, we also start seeing the importance of receiving the appropriate level of respect from individuals we work for. Managers must not forget that all professionals have individual skills, talents and challenges. And in each case, they too deserve respect. There was recently an instance where a high school freshman was asked to write a literary rebuttal to an article written by a senior in the school newspaper. This was the first year for the school to include the freshman class as part of the high school. The article focused on how the freshman were ruining the “senior year experience” by even being at the school. It further declared that the freshman had no respect for the seniors because they didn’t follow the right protocol for younger students, or at least the behavior expected by the senior. The freshman student, who was given the assignment to rebut the article, was new to the school. The particular freshman had been taught both at home and at school that everyone required respect and that although the seniors may feel the freshman were ruining their year, had they thought about the fact that they may be making it difficult on the freshman for their freshman year? The reaction of the senior to this article was alarming. They immediately took to the defense and an attitude of “how dare you” talk to us like that. So even as a society, we begin teaching the pecking order at a very young age. As the new generation of workers into the business world, we will see additional shifts in the expectations of loyalty and respect for all. Summary In closing, corporate values are important, but they must be more than just words. They must be displayed and acted on. They must be reinforced and encouraged and they must be believed by all.
Click Here to Register for the Self-Study Program © Copyright 2012 Lynn Fountain, used with permission. 15
What Every CPA Needs to Know About Patient Protection & Affordable Care Act
Coming Soon to a City Near You – The Patient Protection & Affordable Care Act September 30 through October 4: Wichita, Dodge City, Salina, Topeka, and Overland Park (Specific location/dates available soon and will depend upon demand – Please respond to survey.)
Click here to complete the survey 6-hour program designed to meet the requirements of CPE A program created especially for Kansas CPAs by highly-rated and experienced seminar instructor - Dennis Gerschick, JD, CPA, CFA; CEO, Regal Seminars.
HIGHLIGHTS: • Receive an overview of the law and its impact on small businesses in Kansas and Missouri. • Learn how to address the most frequently asked questions by small business owners about the “Act.” • Learn how to address law from the business (including HR) and financial perspective of a business. 16
• Receive specific answers and strategies designed to help clients maximize the benefits of the “Act.” • Receive tips on how to increase your consulting, financial planning, and tax practices to current and new clients. • Learn how to market your services through community outreach activities (PowerPoint, brochures, and ads available to course participants). • Learn where to find the information you need to answer questions. Don’t miss out! Clients are already asking about the “Act.” Schedule appointments NOW and get up to speed. Resources are available here on the KSCPA website.
Not on Find-A-CPA? All members receive a FREE listing on Find-A-CPA. Go to www.kscpa.org, login, and click on Member – update your profile and include yourself in Find-ACPA. Include interest area “Affordable Care Act.”
“20 up to 40” 5th Anniversary Reception The “20 up to 40” Leadership Program celebrated its 5th anniversary with a reception at the Wichita offices of Ernst & Young LLP on June 5, 2013. Six years ago, the “20 up to 40” leadership program was only a vision - a dream of the KSCPA leadership and its President, Gary Boomer. It became a reality and grew into a hugely successful program for which the leadership is most proud. The risk that these participants, organizations, and sponsors took to support the program is reaping rewards: 100 young professionals are becoming leaders of our profession. These organizations and individuals understand the need to secure the future of the KSCPA and our profession and accepted responsibility.
Interested in joining the 2014 “20 up to 40” - Click to Apply!
Click here to see more photos from the reception
Barry Melancon Presents “State of the Profession” to Kansas Society of CPAs at Spring Leadership Summit in Wichita on June 6, 2013 As a highlight of a much anticipated and rare visit by Barry Melancon, CPA, CGMA, President/CEO of the American Institute of CPAs, KSCPA members were updated on the “State of the Profession” at the biannual professional issues update. Barry reminded us that we are blessed with one of the most employable and profitable careers, although we still face challenges. Fortunately, members of the KSCPA and AICPA have advocates at both the Kansas Statehouse and in Washington. A major advocacy achievement which was a collaboration of AICPA, NASBA, and state associations is CPA mobility. Fifty jurisdictions, including Kansas, have passed mobility laws so that CPAs can cross state lines to work without paying a fee to the other state or notifying the board of accountancy. CPAs still do fall under the jurisdiction of the other state board when it comes to discipline. Challenges we are facing that were discussed by Barry include the following: • Mandatory audit firm rotation • Definition of “attest” • Advocacy initiatives involving Dodd-Frank, FASB, PCAOB, tax return due date simplification, DOL fiduciary rule, and SOX • Tax reform, tax due dates, and mobile workforce In the financial reporting arena, the AICPA released the Financial Reporting Framework for Small and MediumSized Entities in June. Accompanying the release are free toolkits, guidance, and a targeted education campaign. Members, click here to access the toolkits. The KSCPA will hold two seminars later this year, including one in Wichita featuring DeAnn Hill, a member of the FRF task force. Barry updated participants on the Private Company Council, GAAP/IFRS convergence, and integrated reporting. The CGMA is the most successful AICPA certification to date. There are now over 128,000 CGMAs worldwide. The KSCPA has over 250 CGMAs and held another successful business & industry conference in Wichita in June and has a new conference scheduled in the metro area in October. Click here for more information and to register. Firm issues include mergers, turnover, security/privacy, and revenue streams & profits. The Recent PCPS survey indicated that succession planning is an important concern. Click here for more information on the survey. Technology continues to weave its way through everything a CPA does, and CPAs are well-positioned for Big Data and to capitalize on the advantages of cloud computing. Cyber security is a major issue and opportunity for CPAs. CPAs continue to play a role in public service. The AICPA updated the “What’s at Stake” video, something you may want to share with your clients and others in your organizations. CPAs continue to play a role in financial literacy education, and the book, “Save Wisely, Spend Happily” was published by the AICPA last year and is available on amazon.com. Proceeds benefit financial literacy efforts of the profession. Finally, we can’t forget about our future generations of CPAs. The Pathways Report was released that provides seven recommendations for a national strategy for the next generation of accountants. More than a quarter of a million sections of the CPA exam were delivered in 2012. The landscape is changing, and the prudent CPA will look to the evolution of our profession in creating an office structure that attracts the best and the brightest. 18
Click here to see more photos from the Spring Leadership Summit SUMMER 2013
Spring Leadership Report - Meeting of the Task Forces Professional Development - Champion Michelle Schneider Action Items • Target offerings to geographic areas of the state based on topic. Examples for 2013 are affordable care act, videocasts of updated tax law, and 2014 agricultural tax conference scheduled for Manhattan. • Seek opportunities to video cast conferences. • Promote webinars offered through the website – live and on-line. • Target marketing to firms – contact firms to discuss professional development opportunities and explore ways to share firm resources on KSCPA website. • Consider a business and industry conference for small entities. • Convert conference sessions to on-line self-study courses. • At conferences, consider offering several concurrent/break-out sessions. • Continue to consider “traveling shows” for hot topics similar to Gary Allerheiligen’s HB 2117. • Evaluate number of conferences, timing, and locations. • Evaluate current steering committee, rotate chairs that have served for 3 years (but maintain on the committee). • Contact current sponsors and continue to grow.
Advocacy - Champion Gary Allerheiligen
• • • • • •
Action Items • Seek additional “20 up to 40” graduates as members of Advocacy task force. • Schedule Congressional Roundtables in August: - Senator Moran – Hays (Kathy Mitchell to moderate) - Senator Roberts & tax staff – Reception/Forum in Wichita or Johnson County (Gary Allerheiligen to moderate) - Representative Pompeo – Wichita (Bob Schuster to moderate) - Representative Yoder – Overland Park (Amber Goering to moderate) - Representative Jenkins – Topeka (Gary Allerheiligen to moderate) • Continue legislative podcasts during session. Seek changes to statutes and regulations to allow Circular 230 ethics course to be counted as CPE and to allow students to sit for CPA exam during final semester. Marlee Carpenter to report to KSCPA Board in November for 2015 session. Create plan to involve, recruit and train additional experts to come and to testify to legislature. Promote appointment opportunities for KSCPA members and make recommendations to Governor’s office. Hold PAC meeting fall 2013 to discuss state political campaign contributions (KSCPA does not make national contributions). Plan 2014 legislative reception at same location without outside speakers. Continue to encourage KSCPA membership at large to attend.
Member Growth - Champion Matt List Action Items • Identify business and industry organizations in KC/Metro area and plan member growth initiative. Promote business and industry conference. • Continue to meet with CEOs and discuss with them ways to increase their level of involvement. • Continue to work with faculty at universities to promote the profession and KSCPA. • Explore the potential to encourage more students to participate in KSCPA events.
Membership Engagement - Champion Robert Schuster Action Items • Build relationships with firm/business leaders to open the door for those staff that want to become more involved in KSCPA but don’t sense the firm/business fully supports their involvement. • Ask firm/business leaders “what does your firm/business need?” – then explore how the KSCPA can help (develop future leaders, etc.) • Engage those groups KSCPA is targeting – “We are trying to target people like you – what can the Society provide for you?” • Create measurements of success for leadership and work toward obtaining those measurements. • Engage business and industry in a similar fashion as public practice – through CEO visits and CGMA events.
Accounting and Auditing - Champion Aron Dunn Action Items • Continue Accounting & Assurance Services conference and evaluate timing of conference in June vs. July or August. Is there a need to have the conference adjacent to business and industry conference? Should there be a networking event prior to the conference? • Schedule ½ day Peer Review Conference with videocast prior to A & A conference. • Topics for next year’s conference includes: FRF for SMEs; nonprofit auditing break-out. • Offer topic ideas to professional development committee for A&A courses – ask A&A member to attend shrimp peel in August.
Taxation - Champion Monty Allen Action Items • Encourage larger presence of KSCPA members at CPA Day in Topeka and at the legislative reception. • Include all Task Force members on steering committee emails, with recap of phone conferences. • Continue sponsors and exhibitors recruitment. • Provide suggestions to our members of relevant webinars provided by KSCPA and AICPA to enhance their professional development in taxation – maybe a tab “Tax News” with updates and CPE? • Finalize Annual KS Tax Conference, Nov 2013. • Access to task force members by membership.
Young Professionals - Champion Lori Wenrich/Jamie Buer Action Items • Continue “20 up to 40” program for 2014. • Obtain nominations for 2014 class – application is on KSCPA website. • Consider going back to five sessions for the year, rather than four. • Review of KBOA regulations/statutes – poll the members and invite open discussion. • Consider holding July/August 2014 session in Dodge City, Hays or Manhattan? • Consider scheduling the January 2014 session in Topeka; May session in Overland Park; July session in Manhattan w/leadership focus; September session in Hays or Dodge City; and November session in Wichita. 21
Thank you to our CONFERENCE SPONSORs!
WANT TO SPONSOR OR EXHIBIT? CLICK HERE FOR MORE INFORMATION! 22
June Conference Wrap-Up 2013 Governmental & Nonprofit Accounting & Auditing Conference - June 4-5, 2013 Average Rating: 3.95/5.00 The KSCPA Governmental & Nonprofit Accounting & Auditing Conference is an annual event and the largest conference held by the KSCPA. The 2013 conference theme was LEARN•CONNECT•TRANSFORM. The conference is the participants’ chance to update knowledge of nonprofit, municipal, GASB, OMB, and practice management techniques. Participants connected with each other and left prepared to transform their operations to state of the art organizations. Participants earned ethics credit, received an economic update from the KC Federal Reserve’s Jason Brown, and learned how our professional association, the AICPA, influences governmental policies and sets AICPA standards from none other than Barry Melancon, the President/CEO of the AICPA.
Click here to view more photos
2013 Accounting & Assurance Services Conference - June 17, 2013 - Average Rating: 4.22/5.00 The KSCPA Accounting & Assurance Services Conference is an annual conference planned by the KSCPA Accounting & Assurance Services Task Force thatfocuses on private companies. Participants come from all around the state and work in public practice, business, industry, government, education, and nonprofit. There were networking opportunities throughout the conference and this year’s conference featured a special “round table” session with the speakers and task force members delving into the topics more fully in an open format. The 2013 conference theme was “Private Company Financial Reporting: The New Frontier.” The movement toward modifying standards and creating frameworks to cater to the needs of private companies is a welcome change, but it also has created some confusion and need to help companies determine what best communicates their financial results. Special guest speaker, Robert Durak, Director of Private Company Financial Reporting for the AICPA, helped participants determine how to guide the organizations they serve with making a decision on what set of standards or framework to use.
Click here to view more photos
2013 Business & Industry Conference - June 18, 2013 - Average Rating: 4.28/5.00 The KSCPA Business & Industry Conference is a conference produced by the members of the KSCPA to provide CPAs and others the opportunity to receive general and technical education targeted specifically to business & industry. Participants work in a range of organizations and are primarily composed of CPAs involved in financial reporting, taxation; CFOs, accounting, finance managers, directors, staff accountants, and CPAs in public practice who service business & industry clients. The 2013 conference, “Charting a Course in Uncertain Times” was an educational and networking event. It was a chance to take a breather from the challenges of the routine but harried workday to focus on updating knowledge and creating a course of action that is successful despite uncertain times.
Click here to view more photos 23
Golf Tournament to Benefit the KSCPA Educational Foundation - June 24, 2013 A golf tournament was held on June 24, 2013 with proceeds benefiting the KSCPA Educational Foundation. The tournament was held at Firekeeper golf course in Mayetta. The event was sponsored by Prairie Band Entertainment Corporation, which donated the course. Total rasied for scholarships was $720. The KSCPA Educational Foundation offers scholarships to accounting students from undergraduate to doctoral students. To learn more about the Educational Foundation and how you can help the future of the accounting profession, click here.
2013 Conference on Kansas Taxes - June 25, 2013 - Average Rating: 4.05/5.00 The KSCPA Conference on Kansas Taxes is an annual event. The conference was sponsored by LearningQuest. The conference provided CPAs and others with an opportunity to network with State officials, legislators/employees, and each other. The impetus for several states to reduce or eliminate income taxes, the open question on what the impact may be on other state taxes, and the continuing debate on whether or not this policy will grow the economy of Kansas, created the need for a new and engaging conference schedule. This year the conference reached beyond the traditional and into a theme of “Think Globally - Engage Locally.” Gary Allerheiligen and Dominic Ortiz moderated the conference. What other states are doing, in addition to Kansas, was explored. There was a special point / counter-point discussion of the Kansas income tax policy where participants had the opportunity to ask questions and to gain a perspective of both sides of the issue.
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.org
Copyright © 2012 American Institute of CPAs. All rights reserved.
Click here to view more photos
SUMMER 2013 CGMA_HalfPage_ADS_cobrand.indd 2
1/26/12 4:01 PM
Business & Industry Conference - Kansas City October 16, 2013 Arrowhead Stadium - KCMO Member Fee: $195 Non-member Fee: $245
Click here to register
Business Valuation Conference October 18, 2013
Crowne Plaza - Overland Park Member Fee: $280 Non-member Fee: $330
Click here to register 63rd Annual Kansas Tax Conference November 21-22 , 2013
Double Tree - Overland Park Member Fee: $295 Non-member Fee: $345
Click here to register Heartland Technology Conference December 12-13, 2013 Crowne Plaza - Overland Park Member Fee: $395 Non-member Fee: $445
Mark Your Calendar 25
More Courses Coming Soon! Click the Title of the Course to Register
Course Title - Instructor
Excellence in Comp and Review - Anderson
Effectively & Efficiently Performing Governmental & Nonprofit Audits - Anderson Wichita
AA - Accounting & Auditing ET - Ethics
KEY CLE - Continuing Legal Education
TX - Taxation
TC - Technology
CS - Consulting Services
YB - Governmental-Nonprofit - Yellow Book
online live learning
A Renewed Focus on Audit
ANDERSON’S NONPROFIT EXPRESS Anderson’s Nonprofit Express is designed to take a participant though a sequence of natural steps taken during the process of audits of nonprofit organizations. Each session builds upon the previous session, where appropriate, and is designed to discuss practical approaches to apply professional standards and/or to improve audit efficiency while maintaining audit quality in the nonprofit arena. Can’t make it to a session? Self-study of each session is also available.
Click here to register
Your Nonprofit Client is Never Prepared. 9‐11am Whose Fault is It? Improving Risk Assessment Procedures for Your 9‐11am Nonprofit Audit Clients Session Title Broadcast Time Internal Control: A Better Understanding to Enhance 9‐11am Efficiency and Effectiveness You CAN Complete Your Nonprofit Audit in the Field A Renewed Focus on Audit
Does Your Nonprofit Client View the Audit as a Your Nonprofit Client is Never Prepared. Commodity? You can Change this Perception! Whose Fault is It? Improving Risk Assessment Procedures for Your Nonprofit Audit Clients Internal Control: A Better Understanding to Enhance Efficiency and Effectiveness Session Title You CAN Complete Your Nonprofit Audit in the Field
9‐11am 6/6/13 Self-study sessions available now! 9‐11am
Does Your Nonprofit Client View the Audit as a 9‐11am Commodity? You can Change this Perception! A Renewed Focus on Audit
Does Your Nonprofit Client View the Audit as a Commodity? You can Change this Perception!
You CAN Complete Your Nonprofit Audit in the Field
ACPEN, CalCPA, CPA Crossings & Surgent McCoy offer webcasts and webinars to KSCPA members. Click the icons to learn more!
6/6/13 Broadcast Date 6/20/13
Your Nonprofit Client is Never Prepared. Whose Fault is It? Improving Risk Assessment Procedures for Your Nonprofit Audit Clients Internal Control: A Better Understanding to Enhance Efficiency and Effectiveness
Broadcast Time 7/11/13 7/25/13 9‐11am 9‐11am 9‐11am
KSCPA ONLINE SELF-Study Click here to register ANDERSON’S AUDIT EXPRESS Anderson’s Audit Express is a unique, practical-knowledge series designed to help you improve the audit process and be more profitable. It was created and led by an experienced auditor following the audit the process from planning to opinion. The series provides tips for successful auditing for the audit team and client. 1. 2. 3. 4. 5. 6.
Applying JIT Manufacturing Concepts to the Audit Process Audit Planning is a 2-way Street – Both the Auditor and the Company Need to Be Involved Understanding Audit Risks and Discussing Them with Your Client Setting Your Staff up for Success for the Audit The Pros and Cons of Email Use During an Audit Technology, A Blessing or a Curse During the Audit?
7. Fieldwork Complete…is the Audit Complete? 8. Ethics: Evolving Risk Landscape and Its Impact on the Audit Opinion 9. Internal Controls – So Much Time for so Little Benefit 10. Total Client Service: Did you Deliver all of Your Services? 11. What Brings Value to the Audit? Value-based Audits? 12. The Characteristics of an Auditor 13. The Goal of the Audit
DRINON’SLEADERSHIPEXPRESS Drinon’s Leadership Express is based on a highly-researched and applicable four-point concept. It is targeted to intermediate to advanced leadership levels in business and industry. It focuses on managing relationships, results, change and decisions and provides practical information for improving communication with followers. It offers: unique ideas for getting things done in this busy day and age; essential concepts for navigating today’s rapid change curves; and useful approaches to solving problems and making decisions. 1. 2. 3. 4. 5. 6. 7. 8.
The Four Perpetual Actions of Leaders Refining Your Leadership Philosophy & Style Recognizing & Relating to Four Behavioral Styles Managing Leadership Image, Perceptions & Misperceptions Facing the Challenges of Diversity & Generational Differences Leading Groups & Making Presentations Developing Credibility & Trust with Others Maintaining Focus, Multitasking & Managing Time
9. 10. 11. 12. 13.
Getting Results through Others with Conflict Skills – Part 1 – Expectations, Delegation & Motivation Getting Results through Others with Conflict Skills – Part 2 – Evaluation, Praise, Correction & Discipline Resolving Conflict Navigating Change Curves & Using Persuasion to Promote Change Practicing Subjunctive, Objective & Intuitive Problem Solving & Decision Making
FOUNtain’s governance express Fountain’s Governance Express is a series designed allow participants to see into the inner workings of the corporate world and how Governance, Risk and Compliance (GRC) function in that environment. The series shows participants how to build and monitor effective GRC programs. Enterprise Risk Management (ERM) and Fraud are also emphasized. 1. 2. 3. 4. 5. 6. 7. 8.
Corporate Ethics – 10 years post Sarbanes-Oxley The Building Blocks of Effective Corporate Governance (Part 1) Stabilizing the Building Blocks of Effective Corporate Governance (Part 2) The Corporate Director’s Fiduciary Role and Management’s Relationship Dissecting Stated Corporate Values Instilling the Proper Control Environments within Business The Corporate Manager’s Responsibility for Internal Control When the Whistle Blows at your Company
9. Developing Practical Corporate Compliance Programs (Part 1) 10. Monitoring and Managing Effective Corporate Compliance Programs (Part 2) 11. The Governance, Risk and Compliance (GRC) Movement (Part 1) 12. The Role of Enterprise Risk Management (ERM) as a Component of your GRC Program (Part 2) 13. Fraud Awareness Programs (Part 1) 14. Techniques for Fraud Monitoring and Detection (Part 2)
Julie Allen, CPA Julie Allen, Wichita, has joined Preimer Food Services, Wichita, as Chief Financial Officer. Julie was previously a manager in Kennedy and Coe, LLC’s Wichita office. Congratulations, Julie! DAN CRUMB, CPA, CGMA Dan Crumb, Kansas City, has been appointed to the University of Kansas School of Business Dean’s Advisory Board. There are no set terms for the appointment. The primary role of the board is to provide expert counsel and advice to the continuting development of the School. Dan has also agreed to serve on two newly formed task forces: The Undergraduate Education Experience and Creating a Score Card for the School of Business. Dan is the Chief Financial Officer of the Kansas City Chiefs Football Club. Congratulations, Dan!
Lorin haas, cpa, CGMA From the Rush Co. News: Lorin Haas, La Crosse, has joined Rush County Memorial Hospital as Chief Financial Office. He was previously the CFO of KBK Industries, LLC. Congratulations, Lorin! Kere Noel, CPA From the Osborne Co. Farmer: Kere Noel, Wichita, has received CFO award for his work with Wichita nonprofit, Rainbows United. He was one of the main players in the organziation as it dug itself out of a deep financial hole four years ago. Kere spent coutless hours helping to organize and reconstruct the financials of the organization. He says that he saw the benefit that Rainbows United had in the community and wanted to help the organziation. Congratulations, Kere! Randy Tegethoff, CPA From the Newton Kansasan: Randy Tegethoff, Newton, has been promoted to executive Vice President of the Citizens State Bank. He joined the bank in 2008 as CFO. Prior to his tenure at the bank, he was a CPA with Knudsen, Monroe and Co. in Newton. Congratulations, Randy! Ginger Powell REtires from Berberich, Trahan & CO., P.A. Ginger Powell, CPA has retired as Managing Director of Berberich, Trahan & Co., P.A. Ginger joined BT&Co in 1981. Karen Linn, CPA, will take over as Managing Director. Linn has been with BT&Co. since 1987. Ginger plans on staying busy for a while. She has six months of projects that were always “when I retire I will get to that.” She and her husband have some trips planned and she is looking forward to spending more time with her grandkids. The aspect of work that Ginger will miss most are her colleagues and clients. She feels blessed to have worked with some of the most amazing people over the years. Ginger has great memories from her time as a CPA. It was lots of hard work and challenges over the years, but when she reflects back, she only recalls the successes and laughs (she thinks this is probably selective memory). Ginger had a great career and is thankful to the BT&Co. team. Congratualtions, Ginger! Enjoy your retirement!
Got News? Contact Danielle, email@example.com, to share your news. 28
MEMBERS KSCPA Members selected for elite leadership group The AICPA has accepted two graduates of the KSCPA “20 up to 40” into its 2013 Leadership Academy - Chad Allen (graduate of 2009 program) and Amber Goering (graduate of 2009 program). This is the second time two Kansas applicants were selected; this is a testament to the quality of the KSCPA “20 up to 40” program participants, the vision of the leadership, the organizations who support their staff in this endeavor, and the sponsors who make the program possible. The AICPA Leadership Academy is in its fifth year. Annually, it is made up of an elite group of 35 young professionals from the 54 juristictions under the age of 36. The participants attend a program at the AICPA where they benefit from the vision and leadership of Barry Melancon, the President/ CEO of the AICPA and others. Congratulations, Chad and Amber! KennEDY AND COE AcQUIRES AGKNOWLEDGE MANAGEMENT Kennedy and Coe, LLC announced its acquisition of AgKnowledge Management, a farm financial management company working with growers and farming operations to improve their profits and overall efficiency. Through AgKnowledge’s expertise and systems, Kennedy and Coe will provide richer information that impacts growers’ decisions about agricultural finance and credit management, futures and options trading, commodity risk management and economic analysis, crop insurance, and agriculture land sales and farm management. “AgKnowledge’s data management tool moves Kennedy and Coe to a more proactive role with our clients,” Jeff Wald, CEO of Kennedy and Coe explained. “We’re arming the farm operator with snapshot data to make their crop-year decisions. It’s also incredibly powerful for them to access this information before they decide what to plant. All of this leads to a huge competitive advantage for them in the marketplace.” The acquisition facilitates Kennedy and Coe’s increased presence in the Mississippi Delta—a key food and agriculture region.
NEW MEMBERS CPA Members
Affiliate/CPA Candidate Members
Anna L. Allen Diehl Banwart Bolton, CPAs, PA Fort Scott
Steven J. Kramer Remark, Inc. Corning
Mallory Cohen Regier Carr & Monroe, L.L.P. Wichita
James W. Alvey Ernst & Young LLP Wichita
Zachary G. Mastroly Grant Thornton LLP Wichita
Julia A. Duty Church of the Nazarene Foundation Lenexa
Eric A. Atkinson BKD, LLP Tulsa, OK
Angela Murphy AEMurphy Consulting Services LLC Overland Park
Edward F. Halpin EFH Capital Management Shawnee
Jessica R. Schmiedbauer Kennedy and Coe, LLC Wichita
Brian K. Johnson Allen Gibbs & Houlik, L.C. Wichita 29
Sara T. Mock Kansas Neurological Institute Topeka
Brungardt Hower Ward Elliott & Pfeifer, L.C. Experienced Tax Professional
Brungardt Hower Ward Elliott & Pfeifer L.C. is seeking a CPA or CPA candidate with 3+ years experience for our Garden City office. Experienced tax professional with strong tax background needed. Knowledge of agriculture or oil and gas taxation beneficial. Competitive salary and benefit package.
Level III •Same as for a level II plus CPA or CIA certification required.
Please send resume to Personnel Coordinator, 302 N Fleming, Suite 6, Garden City, KS 67846 or email to firstname.lastname@example.org
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 www.fhlbtopeka.com.
Auditor 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 the following positions:
Auditor This position may be filled as a level II or III Auditor, depending on the qualifications of the selected candidate.
The individual in this position will perform individual internal audit projects and SOx testing, as part of the total internal audit plan. This includes developing audit scope, developing and performing audit procedures, and preparing reports reflecting the results of the work performed. Work performed includes coverage of functional and operational units, focusing on compliance and financial and operational processes. This position will follow up with departments on the status of outstanding internal audit issues, provide assistance to the external auditors, and work on special projects as assigned by internal audit management. An Auditor III may often direct and review the work completed by other internal auditors. Qualifications Level II •Bachelor’s degree in accounting or finance (or four-year college degree plus equivalent work experience) required and 3+ years of relevant experience. 31
• Comprehensive knowledge of generally accepted accounting principles and auditing standards and the ability to work independently. •Comprehensive knowledge and practical experience of internal control system processes and risk management methodologies. •Strong written and verbal communication skills. •MS Office including Word, Access, Excel and Visio. •Must be able to work and travel independently and operate all types of general office equipment.
McDermott & Miller, P.C. Central Nebraska’s largest CPA firm, McDermott & Miller, PC is looking for the following positions in its Hastings, Nebraska office: AUDIT SUPERVISOR/MANAGER - Career Opportunity of a Lifetime! If you are a CPA and have 5-10 years or more of audit experience in public accounting, we are looking for you to serve in an immediate supervisory role. Potential for fast-track to partner and overall leadership of office/firm audit department depending on experience. AUDIT SENIOR - Stuck in a Rut and Don’t Know Where to Turn? We are looking for a CPA with 3-5 years of audit experience in public accounting to lead audit engagements, supervise and train other professionals, and assist audit supervisors/managers in all audit functions. WE OFFER TOP PAY, A FULL BENEFITS PACKAGE, AND VERY LIMITED TRAVEL
CLASSIFIEDS REQUIREMENTS (LESS THAN 5 NIGHTS PER YEAR) FOR THESE POSITIONS. For more information, or to apply for these positions, please contact Andrew Janzen at (402) 462-4154, or email a cover letter and resume to ajanzen@ mmcpas.com.
McPherson Board of Public Utilities Comptroller The McPherson, Kansas Board of Public Utilities (BPU) is seeking qualified candidates for the position of Comptroller. BPU serves 8,500 electric and 5,450 water customers within the City of McPherson and surrounding rural areas. BPU currently employees 66 people with annual revenues of approximately $45 million. Required qualifications include: Bachelor’s degree in Accounting or Finance Current CPA license Willingness to use technology to improve operational efficiency Familiarity of or ability to learn FERC accounting system Three or more years of supervisory experience Considerable knowledge of personal computer use, including word processing and spreadsheet programs Customer service experience Expert technical proficiency Excellent written and verbal communication skills Exceptional interpersonal skills and ability to maintain confidential information Excellent organizational skills and proven ability to meet deadlines Strong detail orientation and excellent follow-through Duties will include but are not limited to: Managing the external audit process Preparation of financial statements Plan, direct and coordinate BPU’s financial and accounting activities Understanding of electric and water rates Develop rate testing program for IT and Customer Service departments Responsible for all accounting matters and financial management of the utility Assist in development of operational policies & procedures for customer service department Compensation for this position is competitive, commensurate with experience and qualifications. BPU also offers
an excellent benefits package including KPERS retirement, health insurance and a 457 plan. Applicants should submit a completed application, resume and three business references to: Carla Pearson, Board of Public Utilities, PO Box 768, McPherson, KS 67460 or via e-mail at carlap@mcpbpu. com. An application for employment can be downloaded from BPU’s website at www.mcpbpu.com under “Careers.” The McPherson Board of Public Utilities is an Equal Opportunity Employer. Applications accepted until July 20, 2013.
Guggenheim Partners Corporate Accountant Guggenheim Partners is creating a new corporate accounting position in the Topeka shared service center. The position will be based in the Topeka shared service center and will require some travel to Guggenheim’s Chicago and New York locations. The role includes detailed activities such as recording journal entries, account reconciliations, and evaluation of new accounting standards. Qualifications: •Accounting degree (CPA required). •3-5 years experience (Big 4 experience preferred). •Knowledge of recent GAAP pronouncements including (precodification 115, 123R, 141R, 157, 159, 160, and 167); experience and ability to apply standards. **View additional responsibilities and qualifications on our website. PLEASE APPLY ON-LINE HERE EOE
Guggenheim Partners Tax Senior Guggenheim Partners is creating a new position in the Shared Service Center to assist with the volume of tax compliance matters resulting from the sustained increase in
CLASSIFIEDS business activity. The tax group advises the firm’s professionals and clients on the tax consequences of transactions, develops long-term tax strategies for the firm and manages the completion of all tax compliance. The position will be based in the Topeka Shared Service Center and will require some travel to Guggenheim’s Chicago and New York headquarters. **View the website for job responsibilities and qualifications. PLEASE APPLY ON-LINE HERE EOE
SUMMERS, SPENCER & COMPANY, P.A.
Tax Preparation Services for Nonprofit Organization Kansas Association of Local Helth Departments The Kansas Association of Local Health Departments (KALHD) is a nonprofit association with a membership consisting of 99 of the 100 local health departments in Kansas. The KALHD was established as a 501(c) 3 nonprofit organization by the IRS in 1983 and received its Articles of Incorporation from the State of Kansas in 1987. KALHD is issuing an RFP to obtain the following services: auditing of agency financial documents and financial position and tax preparation services. The RFP is located here.
BUY INTO EXISTING FIRM
Accounting professional sought to provide financial audits and other attestation services, compiling financial statements, preparing income tax returns and performing other related tasks.
Business opportunity for motivated CPA. Established local CPA firm located in Central Kansas is looking for a partner or partners to buy into the firm.
Bachelor’s degree in accounting plus 2 years experience in public accounting, with CPA or demonstrated progress toward CPA designation is required.
Position is in Topeka, KS office location. Visit www.ssccpas.com for complete details.
click here to view more classifieds
NEWCOMER FUNERAL SERVICE GROUP Director of Accounting Newcomer Funeral Service Group, a dynamic, privately owned funeral service group is looking for a Director of Accounting. Successful candidates will have a degree in Accounting and a minimum of 5 years experience. Preference will be given to those with supervisory experience, above average computer skills and experience using Great Plains Accounting software. Company offers excellent benefits, including 401k, profit sharing, paid time off, and medical benefits. Qualified candidates should email resumes to: email@example.com
Request for Proposals: Auditing and 33
KSCPA MEMBERS - click here PLACE YOUR AD ON www.kscpa.org today
Mark Your Calendar! 2013 EVENTS EVENTS
“20 up to 40” Session 3, Leadership
Women’s Leadership Conference
August 8-9 - Excelsior Springs
September 13 - Wichita
Board Strategic Planning Retreat
Business & Industry Conference October 16 - Kansas City
August 8-9 - Excelsior Springs
Women to Watch Luncheon with Leslie Murphy September 13 - Wichita
Business Valuation Conference October 18 - Lenexa
Professional Issues Update Jim Metzler, VP, AICPA November 20 - Overland Park
63rd Annual Kansas Tax Conference
Annual Meeting November 20 - Overland Park
K2’s Heartland Technology Conference
November 21-22 - Overland Park
December 12-13 - Lenexa
“20 up to 40” Session 4 - Graduation November 19-20 - Overland Park
Not on Find-A-CPA? All members receive a FREE listing on Find-A-CPA. Go to www.kscpa.org, login, and click on Member – update your profile and include yourself in Find-A-CPA. 34
Designed for the profession, by the profession.