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DOING MORE WITH LESS: Why CPAs Need to Measure and Report on Sustainability Efforts
Welcome to The Round Table—Where Great Ideas are Generated 34 Doing More With Less—Why CPAs Need to Measure and Report on Sustainability Efforts 36 NCACPA’s Future Shaped by Members’ Input 44
NCACPA membership is far more than simply receiving reduced rates on CPE programs. Itâ&#x20AC;&#x2122;s the ability to connect to your profession, make an impact on your community, and grow your future as a fully engaged member. Membership is what you make itâ&#x20AC;&#x201D;take advantage of all the benefits and opportunities we have to offer by renewing today! To continue your experience for another year, please renew your membership by calling (800) 722-2836. The deadline for payment is June 30.
1st Edition 2013 North Carolina Association of Certified Public Accountants
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In Every Issue From the Top 6 The CEO’s Perspective 8 Across the Board 10 Representation—On Your Side 12 News & Happenings 14
Accounting Digest 24 National MAP Survey Results a Benchmark for All Firms Looking to Grow 25 North Carolina State Board of CPA Examiners’ Executive Director Bob Brooks Awarded Lorraine P. Sachs Standard of Excellence Award 26 Thanks from the North Carolina CPA Foundation! 27 A Special Thank You to our PAC Contributors
CPE Connections 16 Chapter Update 18 Committee Corner—Minority Action 20 Student Leadership Institute 22 Welcome New Members 47 Classified Ads 52 INTERIM REPORT 1st Edition 2013
Features 28 Group Audits and the Use of a Component Auditor
For some clients, it’s easy to see the concept of component auditors. A client that has multiple international subsidiaries that are audited by other audit firms are easy to identify as group audits. But AU-C section 600 expands previous guidance relating to using the work of other auditors. By Melissa Galasso, CPA
30 The Clarified Standards: Statements of Auditing Standards No. 122–125—An Overview
The Clarity Project had two primary objectives in the Codification of Statements on Auditing Standards. The first was to make the standards easier to read, understand, and apply. The second objective was to facilitate convergence with the International Auditing and Assurance Standards Board (IAASB). By Melissa Galasso, CPA
32 AICPA’s Employee Benefit Plan Audit Quality Center and Governmental Audit Quality Center: A Resource for CPAs
To help CPAs meet the challenges of performing quality audits in unique and complex areas, the AICPA has established the Employee Benefit Plan Audit Quality Center (EBAQC) and the Governmental Audit Quality Center (GAQC), a resource to promote the quality of employee benefit plan and governmental audits.
34 Welcome to The Round Table— Where Great Ideas Are Generated
NCACPA is jumping headlong into the blogosphere with the creation of our own blog. “The Round Table” seeks to be a forum for CPAs to generate and share great ideas. By Heather Hinson, NCACPA Communications Specialist
36 Doing More with Less: Why CPAs Need to Measure and Report on Sustainability Efforts
My idea of communing with nature is eighteen holes of golf on meticulously maintained fairways, greens. However, I have been thinking about what kind of world we will leave to our children, grandchildren, and great grandchildren—and what we, as CPAs, can do to preserve and enhance our companies and world, our only true lasting legacy. By John F. Levy, CPA, MBA
39 Something to Talk About: Insights from the Emerging Leaders Conference, Part 2
Among other benefits of attending NCACPA’s Emerging Leaders Conference is the opportunity to associate and compare experiences with other up-and-coming CPAs. This article will highlight some of the more popular roundtable topics. By Scott Anderson, CPA, and Stefanie Leann Holmes, CPA
42 Programming that is Simply “Making Cents”
On Saturday, October 3, 2009, the first ‘Making Cents: A Financial Literacy Program for All Ages’ was hosted by the Financial Literacy Council at Southeast Raleigh High School. The Financial Literacy Council knew from the start this event had a larger purpose and the potential to reach more students, parents, and teachers than ever before. By Holly Bazemore, NCACPA Community Relations Coordinator
44 NCACPA’s Future Shaped by Members’ Input
Successful 21st century associations are obsessed with serving their member’s needs. This core belief drives NCACPA’s board leadership and staff to continuously ask members, “How are we doing?” and “What else can we do for you?” This article highlights the results of the 2012 Membership Survey. By Rachel Burgess
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CALLING ALL AUTHORS! NCACPA is always looking for members to contribute articles and blog posts relevant to issues facing CPAs today. If you have an article you’d like to submit, send the text to email@example.com. Articles for the October issue of Interim Report are due on 6/12/13. To contribute to the blog, contact Heather Hinson at firstname.lastname@example.org.
INTERIM REPORT NORTH CAROLINA ASSOCIATION OF CPAs 3100 Gateway Centre Boulevard Morrisville, NC 27560 P (800) 722-2836 F (919) 378-2000 WWW.NCACPA.ORG
Scott Anderson, CPA, is an Audit Manager at Cherry Bekaert & Holland, LLP, in Raleigh. He is a member of NCACPA and the Young CPA Cabinet. Scott can be reached at email@example.com.
NCACPA promotes the competence, integrity, civic responsibility, and success of North Carolina CPAs.
NCACPA OFFICERS Chair J. A. Lesemann Jr. Chair-Elect Benjamin Hamrick Treasurer Donna Taylor Secretary James Ahler
Rachel Burgess is the Vice President of Tourism for Southeastern Institute of Research in Virginia. She has been with the company since 2005 and is responsible for project design, questionnaire development, fieldwork supervision, data analysis, reporting, and presentation. Rachel can be reached at Rachel@SIRresearch.com.
NCACPA BOARD OF DIRECTORS Terms Expiring 2013 Wesley Casteen Nicole Hendren Connie Laster Debbie Robinson Mark Soticheck Terms Expiring 2014 Vickie Martin Shon Norris Tom Ponsonby Linda Poulson Wendy Ruggiero Terms Expiring 2015 Andrea Woodell Eason Kate Hinson Henry Paula Marci Thomas Sammy Williams
STAFF Director of Communications Lorrie Leonhardt • firstname.lastname@example.org, Ext. 159 Graphic Designer Ashley Babb Falls • email@example.com, Ext. 161
Melisa Galasso, CPA, works for Cherry Bekaert, LLP, in Charlotte. She currently serves on NCACPA’s Accounting & Attestation Committee and the Youn is the Community Service Coordinator for the Charlotte Chapter. Melissa can be reached at firstname.lastname@example.org.
Stefanie Leann Holmes, CPA, is a Medicare Auditor at Cahaba Safeguard Administrators, LLC, in Morrisville. She is a member of the Young CPA Cabinet and is also completing her 4th year at North Carolina Central University School of Law. Stefanie can be reached at StefanieHolmes@csallc.com.
J.A. (Jay) Lesemann Jr., CPA, CGMA, is the managing member of Lesemann & Associates, PLLC, in Huntersville. He serves as NCACPA’s 2012–13 Chair. Jay has served on multiple association committees, including the Work/Life Committee, Members in Business and Industry Committee, and the Charlotte Chapter. He also sits on the NC CPA Foundation Inc.’s Board.
Communications Specialist Heather Hinson • email@example.com, Ext. 160 Marketing Coordinator Hannah McCain • firstname.lastname@example.org, Ext. 134
REPRINTS Articles may be reproduced with permission. Please send reprint requests to email@example.com. BACK ISSUES Back issues may be available. Email firstname.lastname@example.org to check for availability. ADVERTISING Hoping to reach over 14,000 of your peers? Advertise in Interim Report and reach North Carolina’s largest financial community! Contact email@example.com for details. Statements and opinions expressed are those of the authors and not necessarily those of staff, officers, board members, or members.
John F. Levy, CPA, MBA, is the CEO of Board Advisory, a consulting firm that assists public companies, or companies aspiring to be public, with corporate governance, compliance, financial reporting and financial strategies. He has served as CFO of both public and private companies. John currently serves on the Board of Directors of three public companies, including as Chairman of one company and lead director of another. He is a graduate of the Wharton School of the University of Pennsylvania and can be reached at john@ BoardAdvisory.net.
Michael Massey, CPA, is a Strategy Analyst for Delta Community Credit Union in Atlanta, Georgia. He is the Chair of the Minority Action Committee and also serves on NCACPA’s Member Connections Committee. He can be reached at michael.massey@ deltacommunitycu.com.
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FROM THE TOP A MESSAGE FROM JAY LESEMANN
Whenever I am asked to speak on behalf of the association, I try to address a topic that is very important to me and our profession: diversity and inclusivity. I’m not the only one talking about this. For example, Richard Caturano, this year’s AICPA Chairman, addressed this during his professional issues update at our annual Symposium this past November. About a year ago, the AICPA created the National Commission on Diversity & Inclusion, and two years ago the Pennsylvania Institute of CPAs commissioned a paper to consider the diversity challenges facing organizations and firms in Pennsylvania. Why has an issue that has been around longer than most of us have been alive suddenly getting more attention? The reason is simple—our profession does not resemble the world we live in. Our world, our country, our states, and our cities are multi-cultural. But, from an ethnicity and inclusivity (including orientation and gender) perspective, I wonder if our profession and association received the memo? Think back to the last CPE event you attended (AICPA, NCACPA, etc); what was the composition of the crowd? Most likely the picture in your mind mirrors the statistics being seen today. In preparing for this article, I spoke with Neisha Fredericks (AICPA Manager— Diversity and Inclusion) who directed me 6
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to the AICPA’s 2011 edition of “Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits.” Space does not allow me to give you all of the statistics that came from this study; however, a few stood out and are worth including. 348 firms participated in this study and out of the firms that responded, minorities made up 20% of the professional staff, BUT only 5% of the partners were minorities. According to Bureau of Labor Statistics data from 2010, 5.8% of Hispanics or Latinos were accountants and auditors, while 8.6% were black or African American. The total US labor force in 2010 was 14.3% Hispanic or Latino and 10.8% black or African American. Additionally, the percentage of accounting graduates fell from 2008 to 2010 among African Americans; Asians and Pacific Islanders; and Hispanics and Latinos. In fact, graduates from these three census groups equaled or were less than what they were in 2001. How can this be? Why aren’t the numbers improving, and what can we as a profession do? Most, if not all, have heard the old sayings: “walk the talk,” “practice what you preach,” and “actions speak louder than words.” These quotes have been used so many times they have become cliché. Sometimes, however, clichés are appropriate, and this is one of those times. We have discussed this issue for many years, and the topic has gotten quite a bit of attention—but that’s where it seems to stop. Discussion and recognition of this imbalance doesn’t correct the problem. This problem can only be solved by ACTION! Become a champion for diversity. Become a champion for inclusivity. Specific steps might include: • Encourage minorities to join our profession—volunteering at your local high school is a great way to not only serve your community, but also educate students on who CPAs are and what CPAs do.
2012–13 NCACPA CHAIR • Promote diversity in the workplace—this means more than posting a policy on your website. This means actually doing something to show you are committed to making a difference. • Include diversity columns in your firm’s newsletter—encourage/require all levels of staff to write the columns. You might be surprised what you learn! • Recognize that the “best and the brightest” may not fit the “mold.” It is also important to think globally. This holds truer today than ever before. Those who have recently taken the CPA exam are finding questions relating to International Financial Reporting Standards (IFRS) as well as international taxation. Our customers and clients come from all over the world. The questions are being asked because these are the issues we deal with in today’s society. As I mentioned, the focus on diversity has been around for decades. Only recently have we started seeing and hearing more of the phrase “diversity and inclusivity.” Why is it now necessary to add inclusivity? To state the obvious and to somewhat repeat myself—the world has changed. Acceptance of differences (whatever they may be) in the workplace is the norm, not the exception. New technology allows those with handicaps to be gainfully employed, and differences in one’s lifestyle do not mean lack of professionalism. It is up to us to make sure we focus on one’s credentials and capabilities, not on one’s color, lifestyle choice, or physical appearance. Awareness is always the starting point when one wants to create change. We are now past that point! It’s time we all get on the same page and, not only understand this, but embrace it. If we don’t, the world will pass us and our profession by.
IT’S TIME FOR THE ANNUAL FINANCIAL REPORTS OF THE NORTH CAROLINA ASSOCIATION OF CPAS AND NORTH CAROLINA CPA FOUNDATION! You may now find the complete set of audited financial statements for April 30, 2012, and 2011 online at www.ncacpa.org/financials or call (800) 722-2836 for a printed copy.
THE CEO’S PERSPECTIVE
A MESSAGE FROM JIM AHLER l NCACPA CHIEF EXECUTIVE OFFICER The following are items typically discussed during Professional Issues Updates. Members are encouraged to sign up for the 2013 Updates being held around the state and several conferences this summer and fall. If you have questions or would like additional information, contact Jim Ahler, CEO, at firstname.lastname@example.org.
A NEW YEAR! I am excited about the future of your association and this profession! We want you to be involved and engaged in making those changes work for everyone. Thanks for your support for the association and the public accounting profession. Last year was another very good year for NCACPA. We were able to offer high-quality programming to strong numbers of attendees. More members were engaged in government relations than ever before—an area where we are beginning expanded efforts. We have major legislative initiatives ahead, and your involvement will be crucial to the outcome. As you will see below, we will be developing the association’s strategic plan for the next three to five years. Please let us know how we can serve you better.
STRATEGIC PLANNING Your board of directors and management team participated in an extensive strategic planning session at the January 25–26 board of directors meeting. The board had access to 2012 Membership Survey results, a risk assessment exercise conducted by management, and an association trend analysis provided by the
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Southeastern Institute of Research (SIR). John Martin, founder of SIR, facilitated the strategic planning session. Marci Thomas facilitated the risk assessment exercise. Our prior membership survey fueled several dynamic endeavors, including our substantial Professional Development initiatives (development of our Learning Management System, establishment of an effort to find Subject Matter Experts to design curriculum, our NASBA Certification as a CPE sponsor, and others); a completely transformed website; improved government relations efforts; and revitalized chapter structure and member services. The results of the strategic planning process will be published as soon as it is practical. The board set strategic imperatives and management is developing tactics to achieve these strategic imperatives. I can assure you the 2013 Strategic Plan will dramatically alter the way we do business in a number of important areas. It is exciting to be part of this dynamic change! As always, we appreciate the input provided by members through our member surveys and at any time. This is your association!
TAX MODERNIZATION The official start of the 2013 session of the NC General Assembly was January 30. We know for certain, tax modernization legislation will be introduced. Our Tax Modernization Task Force has worked closely with leaders in the NC Senate and House of Representatives to make certain the voice of the profession is being heard on this important initiative. Many options are being considered, but it appears legislative leaders and the Governor favor elimination of personal and business income taxes. State revenues will be derived from a consumption tax to be levied on all sales and services. The NCACPA Board of Directors will be reviewing legislative proposals to determine the position they should take. We will be posting the text of the proposed tax legislation on our website. The Tax Modernization Task Force will post a summary of legislation as well. While your association’s board of directors has historically opposed expansion of the state’s sale tax to include professional accounting services, the board will have to take into account all of the pros and cons of the legislative proposals before deciding
Renew your membership early and be entered to win one of three $100 gift cards to either Starbucks, Lowe’s Home Improvement, or Amazon. To qualify, you must renew by May 1. Call our Member Service Center at (800) 469-1352 to have your payment processed over the phone or visit www.ncacpa.org to renew online.
on its position. Member input will be very important going forward. We encourage you to share your thoughts with the board as well as your lawmakers.
EXPOSURE DRAFTS Two substantive exposure drafts expired in 2012 and standard setting bodies are now studying feedback received. Exposure drafts issued by the Professional Ethics Executive Committee (PEEC) and the Accounting and Review Services Committee (ARSC) would change the impact of the preparation of financial statements on independence. We suspect there will be little change in the language that would make the preparation of financial statements for a client a nonattest service. In addition, the board of directors is watching with interest discussions surrounding the November 1, 2012, exposure entitled, “Proposed Financial Reporting Framework for Small- and Medium- sized Entities.” The deadline for comments was January 30, 2013. This financial reporting framework is the AICPA’s response to the Financial Accounting Foundation’s (FAF) formation of the Private Company Council (PCC). Following an exhaustive process, FAF established the PCC, but required its recommendations to be endorsed by
FASB before changes to US GAAP would be official for privately held businesses. AICPA responded to FAF’s decision with plans to create another method to help private businesses. The aforementioned exposure draft contains recommended methodologies. It will remain to be seen if PCC and FRF for SMEs are accepted by practitioners and marketplace without significant confusion or conflict.
CONTRACT CFO SERVICES Speaking of exposure drafts, the Joint Task Force II, involving members of the association’s board of directors and members of the State Board of CPA Examiners, suspended their discussions surrounding contract CFO services pending final acceptance of the exposure draft dealing with non-attest services. The exposure drafts mentioned earlier in this article, but are identified here with more specificity. In the summer of 2012, the AICPA’s Professional Ethics Executive Committee (PEEC) issued the exposure draft, “Proposed Revised and New Interpretations and Proposed Deletion of Ethics Rulings.” This exposure draft includes a proposal to amend Interpretation No. 101-3, “Non-attest Services,” under Rule 101, Independence (AICPA, Professional Standards, ET sec. 101 par .05), to make clear certain services, including financial statement preparation, would be a non-attest service.
In addition, the AICPA’s Accounting and Review Services Committee (ARSC) issued he exposure draft, “Proposed Statements on Standards for Accounting and Review Services Association With Unaudited Financial Statements; Compilation of Financial Statements; and Compilation of Financial Statements—Special Considerations,” that would, among other things, amend when compilation standard applies and what action a CPA should take when the CPA has been involved in preparing financial statements, but has not been engaged to perform a compilation, review, or audit engagement. These two exposure drafts, if issued as final standards, have the potential to significantly change the way practitioners perform certain services. The deadline for responses was November 30, 2012. The issuing bodies are evaluating the feedback and will issue final statements soon. The Joint Task Force II members perceived the two exposure drafts to have significant impact on the development of guidance for members in this strategic area of contract CFO services. They voted to wait until these exposure drafts have been acted upon by their respective issuing bodies. Thank you for your support for the association!
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ACROSS THE BOARD The following is a summary of the board of directors’ meeting held at the Dunhill Hotel in uptown Charlotte on January 25–26, 2013. Members interested in additional information are encouraged to contact Chair of the Board of Directors Jay Lesemann, CPA, CGMA, at Jay@LesemannCPA.com or NCACPA CEO Jim Ahler at email@example.com.
CALL TO ORDER Following the Call to Order and recitation of the “Oath of an NC CPA,” Jay Lesemann, CPA, CGMA, welcomed members, staff, and guests to the meeting. He acknowledged substantive changes to the board’s agenda format and welcomed feedback.
CONSENT AGENDA The consent agenda, which contained the minutes from prior Board and Executive Committee meetings, was approved.
REPORT OF THE TREASURER Treasurer Donna Taylor, CPA, introduced Nick Lombardi, CPA, and David Piscorik, CPA, with Stancil & Company, to present results of the annual audit. Following questions and answers, the board moved to accept the report and thanked the auditors for their work. The audited financial statements are available on the association’s website. Donna Taylor and Director of Finance and Administration Nikki Vann, CPA, presented December 2012 financial statements. They also reported on the Investment Committee meeting held earlier in the month. Donna and Nikki facilitated a “State of the Association” exercise and projected where the association would be by April 30. A robust discussion of the 2013–14 budget ensued and direction was given concerning the budget to be presented to the board in March 2013. A timeline for preparation and approval of the 2013–14 budget was also approved. Upon motion and second, the report of the Treasurer was approved.
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SOUTHEASTERN INSTITUTE OF RESEARCH (SIR) John Martin, Chief Executive Officer of SIR, and Rachel Burgess, Vice President, were introduced to the board. SIR once again conducted a membership survey for the association, having previously done so in 2008. Mr. Martin was also retained to facilitate the NCACPA’s 2013–16 Strategic Plan utilizing information gained from the 2012 Membership Survey, information in the “Trends Affecting Associations” research, and information contained in a risk assessment exercise conducted by management. In addition, each board member reported on an “External Landscape” assignment they were given following the September 2012 board meeting and reported on generational trends impacting the association and profession. The board identified, processed, and prioritized strategic imperatives. The Management Team was requested to establish tactics and timeline to achieve each of the strategic imperatives identified and will provide an update at the March 2013 meeting.
2013 GENERAL ASSEMBLY An update regarding the 2013 session of the NC General Assembly, which convened on Wednesday, January 30, 2013, was also shared. Expectations are high that tax modernization legislation will be introduced in the Senate. Legislation has been discussed by numerous groups. Modernization of the North Carolina Tax Code is expected to be one of the top priorities of the NC General Assembly in the 2013 session. The board adopted a position of favoring tax modernization, but
will await actual legislation to determine if the proposal introduced can be supported. Strategies were discussed and agreed upon. Once it is introduced, tax modernization legislation will be posted on the NCACPA’s website for member input. Members will be invited to submit suggestions for tax code changes. As always the association encourages members to contact their state lawmakers and make their feelings about legislation of interest be known.
NEXT MEETING The next board of directors’ meeting will be at the association’s offices in Morrisville on March 21, 2013.
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REPRESENTATION—ON YOUR SIDE
The following article deals with the association’s representation of members and the public accounting profession. It is intended to raise awareness of the association’s activities on behalf of the membership in this important area. Members in need of more information are encouraged to contact Jim Ahler at (919) 469-1040. 12
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GOVERNMENTAL AUDIT QUALITY
PEER REVIEW REGULATIONS
Audit quality is an important expectation of public accounting professionals licensed in North Carolina and encourages public reliance on the work performed. Most professionals strive to ensure their work product adheres to the highest standards. We are aware, unfortunately, there may be instances where professionals did not perform their work at the highest level. Reasons given range from cutting corners or not being up-to-date on changes in applicable standards. Neither of these reasons is adequate—honesty, integrity, and competence are the core values of this profession.
The State Board of CPA Examiners has recently been contacting members who received a “Fail” Peer Review report, but have not forwarded copies to them. Administrative Regulation 21 NCAC 08M.0106, requires CPA firms to supply the State Board with information to document the firm’s compliance with peer review requirements. Firms receiving a “Pass” or their first “Pass with Deficiency” are required to mail or fax a copy of the acceptance letter from the Association’s Peer Review Committee to the State Board.
We want to be certain all of our members performing A-133 work and state and local governmental audit work strive to meet the highest technical standards. Our professional development programs are geared to give you maximum information for a reasonable price. Our Peer Review program is designed to help firm owners have the right systems in place to increase the quality of reporting.
Firms receiving a “Fail” or their second “Pass with Deficiency” are required to forward a copy of the peer review, the letter of response from the firm, and the final acceptance letter to the State Board within 60 days of receipt of the Final Letter of Acceptance. The association is required to post the status of each Peer Review completed on a website where the State Board staff can monitor completion. They are required to wait until they see the date of the Final Letter of Acceptance before anticipating a report from the firm. The State Board is mailing members when they perceive the firm has failed to comply with the aforementioned deadline. The State Board must wait for 60 days to elapse before making the records request of the firm.
The State Board of CPA Examiners, working with the NC State Auditor and the Local Government Commission (LGC) of the NC Treasurer’s Office, is coordinating efforts to elevate the quality of audits performed in the state. White papers issued by the LGC to CPA firms and their local government clients are being reviewed by the State Board staff and, where appropriate, requests are made from practitioners for work papers supporting the audit under review. In like manner, the State Board is securing results of annual samplings done by staff of the NC State Auditors office on A-133 audits. Inquiries will be issued, and the State Board staff feel further investigation is warranted. Your association is advertising these efforts because the board agrees overall quality of governmental audits must be raised and instances of substandard work reduced. NCACPA is supporting member awareness and training. We have run articles like this one in Interim Report; mentioned the State Board’s efforts in our “Member Advantage” emails; and discussed the process during the Professional Issues Updates conducted around the state. The State Board’s Professional Standards Committee will deal with NC CPAs who are deemed to need additional education and preissuance reviews before performing additional reports on financial statements. It is important to the public we serve and to the profession that the quality of governmental audits be elevated.
Don’t miss the hands-on Local Government Workshop: Audit Quality happening the day before the Local Government Conference on May 2 at the Sheraton Imperial in Research Triangle Park. Seating is limited— register today by visiting WWW.NCACPA.ORG/CONFERENCES. INTERIM REPORT 1st Edition 2013
NEWS & HAPPENINGS Each category in this section is broken down into four regions: Eastern North Carolina (which includes the Albemarle/Outer Banks, Cape Fear, and Coastal Plains Chapters); Central North Carolina (which includes the Piedmont, Sandhills, and Triangle Chapters); Western North Carolina (which includes the Catawba Valley, Charlotte, Foothills, Northwest Piedmont, and Western Carolina Chapters), and Out of State.
FIRMS & ACQUISITIONS
AWARDS, APPOINTMENTS & DESIGNATIONS
Kelly Sanchez, CPA, CGMA, announces the launch of Mattarocci & Company, which provides fractional CFO and Controller services, internal audit and control services, and staff accountant services.
Central North Carolina
Morris, Davis, Chan, & Tan, LLP, in Charlotte announced the addition of “Tan” to the firm name effective November 2012. The accounting firm of Moyer Smith & Roller, PA, CPAs, merged with Dennis D. Toler, CPA, PLLC, effective January 1.
PROMOTIONS & NEW POSITIONS Central North Carolina David Balke, CPA (1), with Davidson Holland Whitesell & Co., PLLC, has been promoted to Principal in the Cary office. Leeper Kean & Rumley, LLP, in Greensboro announces the additions of tax manager Kimberly Cossaart, CPA (2), and Michelle Goslin (3) to their staff. Collin Hill, CPA, CFE, has been promoted to audit partner at Cherry Bekaert & Holland, LLP, in Raleigh. The Shareholders of Thomas, Knight, Trent, King and Company (TKTK), Certified Public Accountants and Business Consultants, welcome Jennifer L. Hodgen, CPA, as a senior auditor.
Western North Carolina The AICPA announces the appointment of William Hunter Cook, CPA (7), with Dixon Hughes Goodman, LLP, in Charlotte to the Auditing Standards Board. The firm of Davidson Holland Whitesell & Co., PLLC, headquartered in Hickory was recently named as one of the 2012 “Best Accounting Firms to Work For” by Accounting Today. The firm also has an office in Cary. Elliot Davis, PLLC, in Charlotte was named among the Charlotte Business Journal’s “Best Places to Work” for 2012. The firm was honored at luncheon in November and was recognized in the medium-company category for its outstanding benefits, policies, and practices.
SPEAKING/WRITING/COMMUNITY EVENTS Eastern North Carolina
Adams Martin & Associates, PA, in Raleigh announces the addition of Adam King as senior accountant.
Kim Anthony, CPA; Susan Barrett, CPA (8); Bernita Demery, CPA (9); Carmin Ipock, CPA, CGMA; Virginia Jones, CPA; William "Bill" Kraus, Jr., CPA, MBA, CIA; Alex Pappas, CPA; Melissa Robinson, CPA; and Artie Rogers, CPA, collected food for the Coastal Plains Chapters’ BackPack Pals Volunteer on October 20. They collected 10,473 servings of food!
Western North Carolina
Central North Carolina
Davidson Holland Whitesell & Co., PLLC, in Hickory announces that Melissa Shronce, CPA (5), has been promoted to Partner.
On October 4, 2012, Kristina Cabrejas, CPA; Amy Ellis, CPA; Jim McCoy, CPA; Tony Riddick, CPA; and Bridget Lee-Young, CPA, participated in Wake Tech’s “Ask a CPA” Day.
Stephanie B. Holt, CPA (4), has been promoted to Audit Manager at Steward Ingram & Cooper, PLLC, in Raleigh.
Gary Massey, CPA, with CliftonLarsonAllen, LLP, has been named partner in the firm’s Charlotte office. Elliot Davis, PLLC, in Charlotte announces Thiru Govender, CPA (6), has been added to the firm’s International Services practice.
Michael H. Womble, CPA, ABV, CVA, BVAL, CFF, a partner at Williams Overman Pierce, LLP, in Raleigh was appointed by Governor Perdue to a three-year term on the NC State Board of CPA Examiners.
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Jim McCoy, CPA (10), presented a Financial Literacy Lunch and Learn at SAS Institute in Cary on October 18. He answered tax questions submitted by employees.
Scheduled to speak with a group of students about being a CPA? We’ll make you the highlight of the day by providing fun giveaways and information about the profession. Contact the association at (800) 722-2836. Janet Monaghen, CPA (11), of Wake Forest presented financial literacy sessions on October 18 and 25 at the Seymour Center and Orange County Senior Center.
Western North Carolina J.A. “Jay” Lesemann, CPA, CGMA (12), was interviewed by “Business Today” on December 27 regarding tax modernization in North Carolina. Zach Levin, CPA, with Johnson Price Sprinkle, PA, in Asheville represented NCACPA at Western Carolina University’s “Meet the Firms Night” on February 26.
IN MEMORY… Eastern North Carolina David Alexander McLemore, Jr., CPA, passed away at the age of 69 on January 22, 2013. He was a Partner with McLemore & Byrd, PA, in Clinton.
Western North Carolina Mark Wesley Day, CPA, of High Point passed away of December 18, 2012, at the age of 56. He was the accounting manager at North State Communications and had been an NCACPA member since 2006.
Out of State Eugene “Gene” Early Hoffman, of Charlottesville, VA, passed away at the age of 81 on October 27, 2012. In retirement, before his health declined, Gene put his financial skills to use at his church, first at Morningstar Presbyterian in Matthews, NC, later at Aldersgate Methodist in Charlottesville, where he moved in 2004 and also volunteered at Martha Jefferson Hospital and as an after-school tutor.
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INTERIM REPORT 1st Edition 2013
CPE CONNECTIONS Mark Your Calendar for All of Your Favorite NCACPA Conferences We’re excited to announce the dates for our 2013 Conference line-up! You’ll notice a few new locations and dates for some of our long-standing programs as well as the introduction of workshops (taking place the day before or after some programs). For more information, visit www.ncacpa.org/Conferences.
NEW! May 2 Governmental Auditing Workshop Sheraton Imperial, Research Triangle Park CPE: 4 hours
NEW! May 2 Cleaning Up the Clarity Project for Governments Workshop Sheraton Imperial, Research Triangle Park CPE: 4 hours
NEW DATE AND LOCATION! May 3 Local Government Conference Sheraton Imperial, Research Triangle Park CPE: 8 hours
NEW! May 6 Employee Benefit Plans Workshop: Introduction to Auditing Benefit Plans Grandover Resort & Conference Center, Greensboro CPE: 4 hours
May 7 Employee Benefit Plans Conference Grandover Resort & Conference Center, Greensboro CPE: 8 hours
May 21 Not-For-Profit Accounting Conference Grandover Resort & Conference Center, Greensboro CPE: 8 hours
May 22–24 Members in Business & Industry Spring Conference Grandover Resort & Conference Center, Greensboro CPE: 22 hours
June 13–14 Healthcare Industry Conference Grandover Resort & Conference Center, Greensboro CPE: 16 hours 16
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Interested in learning in a more interactive and advanced setting? NCACPA workshops are more specialized and offer hands-on training on specific topics. Look for the hammer icon when registering and reserve your spot quickly as seating is limited!
August 19–20 TechFest Summer Conference Hilton Charlotte University Place, Charlotte CPE: 16 hours
August 23 Hot Topic Conference: Personal Financial Planning
The Friday Center, Chapel Hill CPE: 8 hours
September 18–20 Members in Business & Industry Fall Conference Grove Park Inn, Asheville CPE: 20 hours
September 27–28 Accounting Education Forum Embassy Suites Brier Creek, Raleigh CPE: 12 hours
NEW LOCATION! October 22 Professional Women's Conference Marriott City Center, Raleigh CPE: 8 hours
NEW DATE AND LOCATION! October 23–24 Emerging Leaders Conference Marriott City Center, Raleigh CPE: 16 hours
November 18–20 74TH Annual Symposium Grandover Resort & Conference Center, Greensboro CPE: 24 hours
December 9–10 TechFest Winter Conference Grandover Resort & Conference Center, Greensboro CPE: 16 hours
December 11 NC State & Local Tax Conference Grandover Resort & Conference Center, Greensboro CPE: 8 hours
NEW DATE! December 17 Fraud & Forensic Accounting Conference Grandover Resort & Conference Center, Greensboro CPE: 8 hours
NEW! December 18 Cyber Security Workshop Grandover Resort & Conference Center, Greensboro
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BY JENNIFER ROWELL, CHAPTER MANAGER
a new year is upon us, we reflect on the year past— and there was much to celebrate in 2012! Many chapters hosted new events, and every chapter held multiple community service activities for CPA Day of Service. Here are just a few of the accomplishments NCACPA Chapters are celebrating from 2012! The Albemarle/Outer Banks Chapter gave $500 to aid their local children’s museum ruined by Hurricane Sandy. A bowling event, co-hosted by the Cape Fear Chapter and UNC–Wilmington, was held as a fun way for the students to network with area members. The Catawba Valley Chapter held their Annual Student Night with over 90 students and members in attendance. The chapter presented $5,000 in scholarships. Sixteen community service activities were planned, benefitting six nonprofit organizations for the CPA Day of Service in the Charlotte Chapter. The Coastal Plains Chapter’s Second Annual Back Pack Pals Volunteer Day was held in October. They collected a total of 10,473 servings of food and $1,439.17 in donations.
The Northwest Piedmont Chapter held a golf tournament with the Piedmont Chapter and raised over $3,500 to be split between their scholarship accounts. The Piedmont Chapter set up quarterly luncheons with local speakers in various counties, increasing attendance along the way. The Sandhills Chapter held their first Holiday Social with the Young CPAs and collected for a local charity. The Triangle Chapter hosted a Making Cents event and had the largest attendance to date—160 students and parents! OnTrack WNC Financial Education and Counseling partnered with the Western Carolina Chapter to host a financial literacy event called “Mad City Money.”
Shoes and socks were donated and delivered to Graham Elementary School and Jefferson Elementary School in Shelby during the CPA Day of Service by the Foothills Chapter.
FOR MORE INFORMATION ON CHAPTERS, PLEASE VISIT
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COMMITTEE CORNER—MINORITY ACTION BY MICHAEL MASSEY, CPA, MINORITY ACTION COMMITTEE CHAIR
CHANGING FACE OF AMERICA: OPPORTUNITY FOR OUR PROFESSION As the cultural and ethnic demographics of our population continue to change, it has become even more important for our profession to mirror this diversity. The Minority Action Committee’s mission is to create awareness among diverse communities of the vast opportunities within the profession. And as a result of promoting the profession, our goal is to increase the number of accounting professionals from under-represented groups. The activities sponsored by the Minority Action Committee have ranged from focusing on the pipeline of minority students matriculating as accounting majors to collaborating on activities with chambers and professional associations for minorities. During both the spring and fall semesters, volunteers from the committee attended university career fairs and held lunch and learn sessions with minority students considering accounting as their major. These events allowed students the opportunity to meet minorities from the profession, ask relevant questions about entering the profession, and seek advice on career options. During these and other sessions, it is not uncommon for minority
students to acknowledge they have never had the opportunity to meet a minority CPA or had an awareness of how important our profession is within so many sectors. As an additional effort to encourage outstanding minority accounting students to continue their professional pursuit, the committee, in conjunction with the North Carolina CPA Foundation Inc., awards merit based scholarships each year to deserving students. The Outstanding Minority Accounting Student Scholarship is awarded in the spring of each year to multiple winners, based on their GPA, recommendation letters, a written essay, and extra-curricular activities. If you know of a deserving student or would like to make a contribution towards the scholarship fund, you may contact: NC CPA Foundation Inc. Attention: Sonya Guthrie 3100 Gateway Centre Boulevard Morrisville, NC 27560.
The committee has also had the opportunity to engage in events targeted to the Hispanic community. The North Carolina Society of Hispanic Professionals hosted the Hispanic Educational Summit for students in grades 7–12 from across the state. The event was held at the McKimmon Center on the NC State University campus, and the Minority Action Committee participated by educating students on the critical skills and opportunities as an accounting major and professional. Also, the committee is collaborating with the Hispanic Chamber of Commerce to develop targeted initiatives that will educate and develop prospective candidates of our profession. Ethnic and cultural diversity within our profession yields multi-dimensional value ranging from having staff representative of the markets served to unique ideas and perspectives. It ultimately creates a stronger profession reflective of our communities.
To apply for this and other scholarships, please visit www.ncacpa.org/Students.
Be a Part of the Minority Action Committee! The MAC Committee is always seeking opportunities to promote the accounting profession within our communities and to increase minority representation within the profession. If you’d like to join a group that’s working on exciting things, contact Sonya Guthrie for more information at (800) 722-2836, ext. 157 or at email@example.com.
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NCACPA AFFINITY PROGRAMS
NCACPA members can save time and money with our valuable affinity programs. We’ve negotiated reduced rates for products and services from some of the top vendors in the country! To find out more, login to the ‘My Membership’ section at www.ncacpa.org and visit the ‘Savings & Discounts’ section. Some of our Affinity Programs include: Becker CPA Exam Review CCH Coastal Federal Credit Union Exam Matrix FastPark & Relax: RDU Airport Parking Job Bank iTransact Macy’s Nationwide TAXscribe UPS
JUNE 7–8, 2013 Wake Forest University What is the Student Leadership Institute of North Carolina?
This event has been created to introduce students to the association, provide training to develop future leaders in the CPA profession, further prepare students for a successful career, and give attendees access to potential employers. Developed by the North Carolina Association of CPAs, this no-cost, twoday program for undergraduate accounting students seeks to further develop future leaders in the CPA profession. By attending, students will • Be exposed to mentoring opportunities with young CPAs • Interact with CPAs who could be their future employer • Improve résumé writing skills • Participate in mock interviews • Connect with other top North Carolina accounting students • Enhance business and professional etiquette skills • Learn steps to taking the CPA Exam • And experience much more
• Must be enrolled as a full-time accounting student with an intent to receive an undergraduate degree in 2014 or 2015 • Must have an overall GPA of 3.0 (on a 4.0 scale) • Submit a résumé • Submit an unofficial transcript • Provide a recommendation letter from current or former accounting professor
Registration • Application deadline is APRIL 5, 2013 • Space will be limited to 50 students
The Student Leadership Institute of North Carolina will provide students a great opportunity to meet CPAs and prepare to enter the profession. We are excited about the endless possibilities this inaugural event will bring to accounting students in North Carolina! To apply or for more information, visit
SPONSOR DEADLINE: APRIL 19, 2013
VISIT WWW.NCACPA.ORG/STUDENTLEADERSHIP/SPONSORSHIP TO DOWNLOAD A SPONSORSHIP FORM!
INTERESTED IN SPONSORING THIS EVENT? This two-day program seeks to develop future leaders in the CPA profession and will attract top accounting students from across the state of North Carolina. We invite you to participate in the event as a sponsor. Sponsoring will afford you the unique opportunity to influence up to 50 of the best and brightest accounting students in the state. These students will be entering their junior or senior year of college, giving you an excellent opportunity to build relationships prior to graduation and if applicable, position your organization as a potential employer for these students after graduation. Your generous sponsorship contributes to the cost of each student to attend and supports the future of the profession.
EXCLUSIVE SPONSORSHIPS $4,000 Luncheon or Dinner Sponsor (2 luncheons and 1 dinner available)
• All items in the Cum Laude package detailed below, plus: • Opportunity to welcome students to the luncheon or dinner and to bring up to 10 representatives from your organization • Full-page ad in program handouts • Résumés of all student attendees • Signage recognizing your organization during the event • One young professional from your organization, who is an NCACPA member, may lead one team of up to five students throughout the weekend
SPONSORSHIP PACKAGES $2,500 Summa Cum Laude
• All items in the Magna Cum Laude and Cum Laude packages detailed below, plus: • One young professional from your organization, who is an NCACPA member, may lead one team of up to five students throughout the weekend • Two tickets to attend lunch on Friday and Saturday as well as Friday night’s dinner • Opportunity to participate in Friday’s mock interviews
$1,000 Magna Cum Laude
• All items in the Cum Laude package detailed below, plus: • Recognition in the final program and on event signage • Résumés of all student attendees • Attendance at Friday night’s Meet the Firm reception and have the opportunity to distribute your organization’s promotional items
$500 Cum Laude
• Your organization’s website will be listed on the North Carolina Association of CPAs (NCACPA) Student Leadership Institute of NC website • Your organization will be listed in one issue of Interim Report, NCACPA’s quarterly magazine • Your organization’s information will be listed in the program handouts • Space to distribute your organization’s promotional items
National MAP Survey Results a Benchmark for All Firms Looking to Grow CPA firms continue to successfully navigate the recession. That’s one of the key findings of the 2012 PCPS/TSCPA National Management of an Accounting Practice (MAP) Survey, developed by the AICPA Private Companies Practice Section and the Texas Society of CPAs. In fact, two-thirds of survey participants reported at least some growth in client fees over the past year, an increase of 11 percentage points over 2010, when the survey was last taken. Practices have yet to rebound fully from pre-recession levels, but there are signs they are steadily gaining momentum. A total of 42 percent experienced modest fee increases of one percent to nine percent, while a little more than a third saw a decrease or no change. The smallest firms—those with less than $200,000 in annual revenues—were more than twice as likely as others to see an increase in client fees of 30 percent or more. The survey provides unique information practitioners can use to benchmark their own financial data and firm policies, and identify areas in need of improvement. Here are just a few of the survey’s other key messages: Staffing may emerge once again as a concern for firms. For many years, attracting and retaining qualified staff was the top priority for CPA firms. That shifted in recent years, when even the best people were more likely to stick with good jobs rather than jumping ship in the midst of the recession. The 2012 survey includes some indications that staffing issues may soon become a challenge for firms once again. Average turnover was about the same—30 percent—as it was in 2010. However, while voluntary turnover has moved slightly higher, involuntary turnover—when staff are let go—was significantly less than half what it was in 2010. After letting go of underperforming staff in the midst of the recession, firms seem to be hanging onto more people, while the number leaving voluntarily is beginning to rise.
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The larger firms in particular appear to be taking succession concerns more seriously, but there’s still work to be done. Overall client fees went up at many firms, but per-partner fees dropped. This may be due to the addition of new partners, particularly at larger firms, in anticipation of the pending retirement of partners from the Baby Boom generation. Sole practitioners in particular have some catching up to do when it comes to succession planning. The survey indicated more firms need to initiate formal succession planning, especially the smallest ones. A paltry seven percent of firms with under $500,000 in revenues had practice continuation agreements, not much changed from 2010. These agreements can ensure a firm’s survival or smooth transition to new ownership if a sole owner dies or is disabled, so failure to have one could create serious challenges. (No more than four percent of these firms had formal succession plans of any kind.) For more perspective on this area, practitioners have free access to the commentaries on the 2012 PCPS Succession Survey (www.aicpa.org/InterestAreas/ PrivateCompaniesPracticeSection/Resources/center/Pages/ default.aspx), which review the findings and offer practical advice. There is one commentary for sole practitioners and one for multi-owner firms. Firms are expanding their technology horizons. In virtually every category—from multiple monitors and social media to websites and blogs—more firms were involved in 2012 than in 2010. The number of firms with client portals was up 14 percentage points from 2010 to 42 percent. The percentage involved in social media rose 11 percentage points to 25 percent, and the number that were paperless spiked nine percentage points to 61 percent. About the National MAP Survey The survey, which is jointly conducted every two years by the AICPA’s Private Companies Practice Section and the Texas Society of CPAs, is the largest practice management benchmarking poll available. Almost 2,400 CPA firms across the country took part this year.
It’s a rare combination:
A tax lawyer with courtroom savvy. Jerry has more than 14 years of courtroom experience, having litigated cases in 18 states and scored several multi-million dollar verdicts. He graduated with distinction from Georgetown’s Tax LL.M. program, after receiving his J.D. and A.B. from Duke University. Jerry represents North and South Carolina clients in U.S. Tax Court proceedings, federal refund actions, tax collection actions, and state income and sales tax proceedings. When it’s time for your client to call in a tax lawyer, Jerry Meek is courtroom ready.
250 N. Trade Street, Suite 207 | Matthews, NC 28105 | Tel: 704.845.9490 | www.jerrymeek.com
North Carolina State Board of CPA Examiners’ Executive Director Bob Brooks Awarded Lorraine P. Sachs Standard of Excellence Award The National Association of State Boards of Accountancy (NASBA) awarded Robert (Bob) N. Brooks the 2012 Lorraine P. Sachs Standard of Excellence Award. This award was established in 2008 to recognize state board executive directors who have shown outstanding service and commitment to improving the effectiveness of accounting regulation, both locally and nationally. As executive director, Brooks is responsible for directing the overall administration of Board operations. Since assuming the ED role in 1986, Brooks has been the face and voice of the Board to thousands of exam candidates, license applicants, certificate holders, complainants, CPE sponsors, firm administrators, educators and other Boards of Accountancy. Due in large part to his leadership, the North Carolina Board is recognized as one of the most effective Boards of Accountancy in the nation; often used as a model for state boards seeking independent or semi-independent status. In fact, Brooks’ judicious use of Board resources allows North Carolina to have some of the lowest fees in the nation, without sacrificing the services provided to applicants, licensees, and the public. Brooks’ involvement with NASBA is broad as he has served on numerous committees including the State Board Administrators Committee (of which he was chair), ALEC, President Search Committee, Annual Meeting Planning Committee, CPE Advisory Committee, CPE Sponsor Registry Committee, Executive Directors Committee, Litigation Response Committee, Meetings and Events Committee, Bylaws Committee, Public Perception Committee, UAA Committee and the Examinations Committee. Additionally, he has served as the Administrators’ Liaison to the NASBA Board of Directors and as Administrators’ Liaison to the Examination Review Board (ERB). Currently, he is a member of the CBT Examination Administration Committee. INTERIM REPORT 1st Edition 2013
Thanks from the NC CPA Foundation!
any thanks to the following members for their generous contribution to the North Carolina CPA Foundation. Their tax-deductible donations will go directly to fund the education of an outstanding North Carolina accounting students.
Summa Cum Laude ($1,000–$2,000)
John D. Adams & Company, CPAs, PLLC William Ezzell, Jr. James McCoy J.A. Lesemann, Jr. Norman & Bettina Roberts Foundation Inc.
Magna Cum Laude ($500–$999) James Harden Connie Laster John Morgan George Rohe Thomas Ponsonby Jocelyn Ventenilla
Cum Laude ($100–$499) James Black, Jr. Kimberly Braxton Kevin Chrestman Ray Clinebelle, Jr. Andrea Eason Jeffrey Goller John Graham, III Michael Hammons Nicole Hendren Frederick Hutchins Juli Keim 26
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Bruce Kingshill Jonathan Kraftchick William Lanier, Jr. David Leeper Martin Starnes & Associations, CPAs, PA Lisa McLaughlin Bradley Newkirk Frederick Niswander Nunn Brashear & Company, PA Joseph Pool, Jr. Dennis Seiler George Spencer William Stark, Jr. Donna Taylor Robert Taylor Henry White Randy Whitt Arthur Winstead, Jr.
Dean’s List ($50–$99) Henry Brown John Farley James Gaverick Josh Goldman Katherine Hinson Nancy Miller
Honor Roll ($25–$49) Richard Bovard Brian Durkin Henry “Hank” Lewis, Jr. Susan Steward James Warren
These contributions were received between October 13, 2012–January 28, 2013.
THE NORTH CAROLINA CPA POLITICAL ACTION COMMITTEE’S 2012 SUCCESS RATE
The North Carolina CPA Political Action Committee is a bipartisan committee of the association that financially assists candidates for legislative office who support CPAs’ interests—people we need in office to support our profession. The PAC is the means by which NCACPA members help elect business-minded candidates who embrace issues important to the CPA profession. A strong PAC enables NCACPA to have a voice on issues affecting the accounting profession and our state’s business environment—it sends a compelling message to show candidates and incumbents that CPAs are cohesive, interested, and engaged.
A SPECIAL THANK YOU TO OUR PAC CONTRIBUTORS These contributions were received between October 13, 2012, and January 28, 2013. $200 CONTRIBUTORS Thomas Ponsonby Margaret Thomas $100 CONTRIBUTORS Andrea Eason Linda Poulson $50 CONTRIBUTORS Katherine Hinson Frederick Niswander William Ezzell
Here’s a listing of the campaigns supported by the NC CPA PAC for the 2012 election. In the election, our PAC experienced a 97% “success” rate. That’s a strong return on members’ investment! CANDIDATES SUPPORTED IN 2012 GOVERNOR Pat McCrory HOUSE Marilyn Avila John Blust William Brisson Nelson Dollar Mitch Gillespie Rick Glazier Ken Goodman Michael Hager Julia Howard Bert Jones David Lewis Marian McLawhorn Tim Moffitt Tim Moore Ruth Samuelson Mitch Setzer Paul Stam, Jr. Edgar Starnes Thom Tillis Michael Wray
SENATE Tom Apodaca Tamara Barringer Phil Berger Andrew Brock Harry Brown Pete Brunstetter Dan Clodfelter Tom Goolsby Fletcher Hartsell Neal Hunt Clarke Jenkins Martin Nesbitt Buck Newton Bill Rabon Bob Rucho Josh Stein
Haven’t received an email from us in a while? Make sure we have your information listed correctly and your profile is complete. Visit the ‘Manage My Account’ section under ‘My Membership’ on our website, www.ncacpa.org, or email your updates to firstname.lastname@example.org.
BEFORE YOU TAKE A QUICK SKIM OF THE ARTICLE AND DECIDE QUICKLY THAT IT ISN’T RELEVANT TO YOU, GIVE ME AT LEAST A PARAGRAPH TO CONVINCE YOU THIS TOPIC MIGHT ACTUALLY BE APPLICABLE.
or some clients, it’s easy to see the concept of component auditors. A client with multiple international subsidiaries that are audited by other audit firms are easy to identify as group audits. Your firm audits the consolidated financial statements (the US entity and the consolidation process). Therefore, you are the group engagement team, and the other firms that audit the international subsidiaries are component auditors. But AU-C section 600 expands previous guidance relating to using the work of other auditors. The new guidance defines the group more broadly than consolidated financial statement as it encompasses business activities (geographic locations, divisions, branches, functions, and products), in addition to separate entities (subsidiaries). The biggest extension impacting many clients is any investment accounted for under the equity method constitutes a component unit. In addition, the concept of component auditor not only covers auditors from other firms or network firms but also the use of an auditor from another location within the same firm if they meet certain conditions. Assume a company has multiple divisions within the same federal id number and each maintains their own separate set of books. There are two divisions that are headquartered around the US and then a corporate office located in Charlotte, NC. Your firm has branches around the country so you choose to use a Californiabased audit team from your firm to plan, execute, and complete the audit of the western division, and they send you their results. You are the engagement team based in Charlotte that audits the main headquarters and one of the divisions. Your team is responsible for the final statement of all the divisions. In this case, even though it’s not a parent and subsidiary relationship, and your firm’s employees are performing the audit for all the divisions, AU-C section 600 would apply. Your team would be the group engagement team, and the California team would be a component auditor. Now that you have determined maybe you do have a group audit, your next question is most likely how does the new standard impact me? The standard really kicks in starting with client acceptance. Prior guidance implied that as long as the group engagement team (formally called the principal auditor) audited a high enough percentage of the client then client acceptance was not an issue. However, the new guidance expands the requirement for obtaining sufficient and appropriate evidence for the group. Selecting an arbitrary coverage percentage, for example 85–95%,
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isn’t enough. The group engagement partner needs to determine if they will be able to obtain enough evidence about the group as a whole. This changes how we think about client acceptance. The tone set in client acceptance continues into the planning phase. The guidance requires development of a group audit strategy. A group audit strategy implies the group engagement team is actively involved in the audit of the component entity through communication with the component auditors. This includes gaining a deeper understanding of the group, its components, and how it is organized both from an operational and legal perspective. The new guidance heavily focuses on group-wide controls and the consolidation process. Extra work is required to ensure the consolidation process is well-documented and tested especially looking to ensure all components have been properly included and all elimination entries are valid. If the group audit strategy relies on group-wide controls then these controls need to be tested at the component level either by the group engagement team or the component auditors. In addition to a group audit strategy, a risk assessment needs to be performed on each component in order to develop a risk profile. This cannot be delegated to the component auditor solely. However, the group engagement team can work collaboratively with the component auditor to complete the assessment. Continuing with the concept of a group audit strategy, the group engagement team needs to document their understanding of the component auditor including professional competence and independence. Once the group engagement team is knowledgeable about the component and its component auditor, the group engagement partner will need to decide whether or not to make reference to the other auditor(s) in the group audit report. This is an area where the US standards diverge with international standards—international standards do not allow for reference of the component auditor. In order to make reference, the component auditor must have performed an audit and the component auditor did not restrict its audit report use. If reference is made, the audit report should detail the magnitude of the portion audited by the component auditor. If no reference is made to the component auditor, the group engagement team is assuming responsibility for the work of the component auditor. This requires additional audit procedures and more involvement by the group audit team in the audit of the component. The group engagement team must document the nature, extent, and timing of their involvement in the component audit. The significance of the component will determine the type of work to be performed on the component. A significant component is one of “individual financial significance to the group or … is likely to include significant risk.” A significant component is either large or risky. While the size concept was explicit in the original guidance, the concept of risk is now explicit as opposed to implicit previously. For components that are significant due to individual financial significance, an audit must be performed by the component auditor using component materiality.
Component materiality should be lower than group materiality, but all the component materiality amounts combined can exceed group materiality. Component materiality should be calculated by the group engagement team and communicated to the component auditor for use in their testing. For components that are significant due to risk, the group audit team can choose to have the component auditor perform a full audit or to perform audit procedures on the specific risk areas using component materiality. If the component is insignificant, then analytical procedures can be performed at the group level. The guidance does not provide requirements on the type of report to be received from the component auditor. As part of the instructions, the group engagement team should detail the type of report they would prefer. This could range from an audit opinion to a summary of findings. It is up to the group audit team to decide. The group engagement team should work with the component auditor and review significant risks, corrected and uncorrected misstatements, as well as material weaknesses and significant deficiencies identified by the component auditor. A review of the component auditor’s workpapers is advised. Overall, there are some changes to the audit standards. However, some firms may have already been doing many of these items as part of their audit process while others will have more work to do to implement the standards. Group audits are definitely something you want to consider early in the planning process to allow enough time to work with the component auditors and start that communication process. Additional information regarding group audits can be found on the AICPA’s website (www.aicpa.org) and the standard itself has excellent application material for auditors to use in implementing the new standard. 2013 UPDATE In January 2013, the AICPA approved Statement on Auditing Standards (SAS) 127, Omnibus Statement on Auditing Standards–2013, which made changes to the Clarity Standards. One of the main changes relates to Group Audits. AU-C 600 originally stated that reference could not be made to a component auditor if the financial reporting framework of the component differed from that of the group or if the component auditor did not perform their audit in accordance with US generally accepted auditing standards (GAAS). The amendment allows the group engagement team to make reference to component auditors even if the component uses a different financial reporting framework if certain conditions are met. However, it also adds additional requirements to modify the auditor’s report to disclose the responsibility the group engagement team is taking for the conversion of the component’s financial statements to the group’s financial reporting framework. In addition, in order to make reference to a component auditor who is not using US GAAS, the group engagement team must work with the component auditor to identify any audit procedures that were not performed that would be required under US GAAP. Then those procedures would have to be performed to meet the requirements of GAAS. Once again, the new SAS calls for a modification to the Auditor's Responsibility paragraph of the report in these instances. These changes are effective as of 12/15/12, the same date as the original Clarity statements. INTERIM REPORT 1st Edition 2013
THE CLARIFIED STA N DA R DS:
STATE M E NTS OF AU DITI NG STA N DA R DS NO. 122 -125 & 127 —AN OVERVIEW BY M E L I S A GA L A S SO, CPA
T H E C L A R I T Y P R O J E C T had two primary objectives in the Codification of Statements on Auditing Standards. The first was to make the standards easier to read, understand, and apply. This included the establishment of a standard format for Auditing Standards. Each standard now has an Introduction, Objective, Definitions (if applicable), Requirements and Application, and Other Explanatory Material. This standardization and consistency will allow for easier research for auditors. The second objective was to facilitate convergence with the International Auditing and Assurance Standards Board (IAASB). The existing AU sections were reorganized and renumbered to better correlate with the IAASB. The changes are being denoted as “AU-C” as a temporary identifier. After the standards are fully effective for all audits, the “AU-C” will revert to the normal “AU.” SAS 122-125 & 127 are effective for all audits after December 15, 2012 with early adoption not permitted. Much like the Codification work performed by the FASB, the Clarified Standards were not a major overhaul to the literature. Instead, there were primarily adjustments in format with some substantive changes. The most meaningful changes were to group audits, the audit report, and terms of engagements. Minor modifications were made to documentation regarding laws and regulations, reporting of internal controls, use of external confirmations, and initial audit procedures. 30
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A few new terms were also introduced. “Applicable Financial Reporting Framework” and “Special Purpose Framework” are referenced throughout the new standards. Applicable Financial Reporting Framework, previously called basis of reporting, is the framework used by management to prepare financial statements. Options include GAAP, IFRS, or a special purpose framework. A Special Purpose Framework, previously called Other Comprehensive Basis of Accounting (OCBOA), is a non-GAAP methodology that can be used as a basis of reporting. Options include cash, modified cash, tax, regulatory, and contractual basis of accounting.
Material Changes The preceding article is dedicated to discussing the changes associated with AU-C 600 (Group Audits and The Use of a Component Auditor). In summary, the Clarified Standards expanded what constitutes a group audit. The concept of group financial statements is broader than consolidated or combined financial statements as it encompasses business activities in addition to separate entities. The definition of a component has also expanded. A component is an entity or business activity for which group or component management prepares financial information required to be included in the group financial statements. A component may include, but is not limited to, subsidiaries, geographical locations, divisions, investments
(including equity method investments), products or services, functions, processes, or component units of state or local governments. There were also a few terminology changes. The principal auditor is now called the Group Engagement Team and its partner the Group Engagement Partner. The other auditor is now called a component auditor. A component audit performed by another firm, network firm or another audit team within the same firm would qualify as a group audit. Previously audit teams within the same firm were not considered component auditors. The main theme throughout the new standards is cooperation between the group auditor and component auditor with an emphasis on good communication. For more details, check out the Group Audit Article included in this Interim Review. The other major change to the auditing standards is AU-C 700, AU-C 705, and AU-C 706 which all deal with the auditor’s report. The new standards introduce required headings and subheadings, which are to be used throughout the auditor’s report including management’s responsibility, auditor’s responsibility, opinion, etc. In addition, management’s responsibility is more clearly detailed. While management’s responsibility is not changing, additional verbiage was added—which might alarm some clients. If there is a qualified opinion, there will be a heading titled, “Basis for Opinion.” The addition of headings and subheadings will increase the length of the report and many may now reach two pages. In addition, the term explanatory paragraph was replaced by two new terms, emphasis of matter paragraph and other matter paragraph. An emphasis of matter paragraph describes in detail items already properly disclosed in the financial statements. An example would be a subsequent event or going concern that is properly disclosed. The other matter paragraph is a discussion of an item not directly explained in the financial statements. An example would be if in the prior year a qualified opinion was given; but management went back and made corrections to the financial statements and now the auditor is giving an unqualified opinion. This would not be apparent in the financial statements but the auditor would want to further explain the change over prior year. We expect this update to be the Clarified Standards change most noticed by our clients, since the auditor’s report is the ultimate deliverable. If you take a moment to walk your clients through the changes, I am sure they will appreciate the personal touch! Another area with changes is client acceptance and engagement letters. AU-C Section 210 requires that management agree in the engagement letter that it acknowledges its responsibility for selecting the appropriate financial reporting framework as well as establishing and maintaining internal controls. Just like with the audit report, management’s responsibilities are not changing; they are just being brought up earlier in the process. These are the same acknowledgements made currently in the representation letters. In addition, it also requires the auditor to determine if the financial reporting framework is acceptable. This is not a new concept; it is just explicitly stated now. These two concepts are called “preconditions of an audit” which is a new term in the clarity statements.
Other Changes AU-C Section 250 requires more documentation around the client’s regulatory framework. It requires documentation regarding management’s method for compliance and requires auditors to inspect correspondence with licensing and regulatory authorities. It also expands auditor’s purview to those laws and regulations that do not have a direct effect on the amounts and disclosures but could have an indirect impact on the financial statements. These include environmental and employment regulations. AU-C Section 265 requires the auditor to include an explanation of the impact of significant deficiencies and material weaknesses in their communication to management. Most firms already do this but it is now explicitly stated and something that must be implemented systematically. AU-C Section 510 expands initial audit procedures to require the auditor to do more than only review the predecessor’s audit documentation. A risk-based approach to opening balance procedures should be applied. AU-C Section 620 expands the requirements for using a specialist to include internal specialists. AU-C Section 708 requires auditors to consider whether a reclassification from one audited year to the next constitutes either a change in accounting principal or a correction of an error.
Minor Changes Below is a list of other sections had changes that auditors need to consider. Most are minor, but auditors should make sure they are aware for those that will impact their clients. • AU-C Section 220—Quality Control for an Engagement Conducted in Accordance With Generally Accepted Auditing Standards • AU-C Section—Audit Considerations Relating To A Service Organization • AU-C Section 505—External Confirmations • AU-C Section 550—Related Parties • AU-C Section 805—Single Financial Statements & Specific Elements, Accounts, Or Items Of A Financial Statements • AU-C Section 810—Engagements To Report On Summary Financial Statements • AU-C Section 910—Financial Statements Prepared in Accordance With a Financial Reporting Framework Generally Accepted in Another Country
Resources The AICPA Private Companies Practice Section has a great toolkit available that includes various tools that practitioners can use to continue preparing for the clarity changes.
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AICPAâ&#x20AC;&#x2122;S EMPLOYEE BENEFIT PL AN AUDIT QUALIT Y CENTER AND GOVERNMENTAL AUDIT QUALIT Y CENTER:
A RESOURCE FOR CPAs BY A MEMBER OF THE A & A COMMIT TEE
To help CPAs meet the challenges of performing quality audits in unique and complex areas, the AICPA has established the Employee Benefit Plan Audit Quality Center (EBAQC) and the Governmental Audit Quality Center (GAQC), a resource to promote the quality of employee benefit plan and governmental audits.
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Employee Benefit Plan Audit Quality Center The EBAQC is a voluntary membership organization for firms that perform or are interested in performing ERISA employee benefit plan audits. Employee benefit plan audits include pension, health and welfare, and 401(k) plans subject to the Employee Retirement Income Security Act (ERISA) under the regulatory authority of the US Department of Labor (DOL).
Governmental Audit Quality Center The Governmental Audit Quality Center (GAQC) promotes the importance of quality governmental audits and the value of such audits to purchasers of governmental audit services. GAQC is a voluntary membership center for CPA firms and state audit organizations that perform governmental audits.
Each year, the government awards billions of dollars in grants, loans, loan guarantees, property, cooperative agreements, interest subsidies, insurance, food commodities, and direct appropriations and federal cost reimbursements (which are subject to audit requirements). Governmental audits include audits performed under the Single Audit Act Amendments of 1996 and OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations (referred to as single audits), program specific audits as defined under OMB Circular A-133, and other compliance audits and attestation engagements performed as required by federal, state, or local laws and regulations. The Center’s valuable resources help firms and state audit organizations meet the challenges of performing yellow book financial statement audits of governments and NFPs, single audits, HUD engagements, and more.
Resources The Centers have created a community of firms whose main goal is a commitment to employee benefit plan and governmental audit quality, and supports those firms by: • Providing members with timely communication of regulatory developments, best practices guidance, and technical updates. • Providing members with an online member-to-member discussion forum for sharing best practices as well as discussions on audit, accounting, and regulatory issues. • Maintaining relationships with, and acting as a liaison to, the DOL and other governmental agencies on behalf of member firms. • Providing Center members with a marketing toolkit to facilitate promotion of their membership in the Center. • Providing information about the Center’s activities to other employee benefit plan and governmental audit stakeholders. • The Centers are governed by Executive Committees that establish general policies of the Centers and oversee their activities. The Executive Committees also establish the requirements for membership in the Centers as necessary, subject to AICPA Board of Director’s approval.
Member Benefits Joining the AICPA Governmental Audit Quality Center and Employee Benefit Plan Audit Quality Center can save your firm or state audit organization time by providing a centralized place to find information you need—when you need it—to maximize your quality and practice success. Leveraging the benefits of the Centers will enable your firm to access resources designed to enhance your audit quality and will assist your firm in applying audit best practices.
When you enroll as a member in the Audit Quality Centers, you gain a single point of access to: • Email News Alerts on current audit, accounting and regulatory developments • A dedicated Center website • An online Member Discussion Forum for sharing best practices, discussing issues you are facing, and networking with others • Live Forum webinars updating you on a variety of technical, legislative, regulatory, and practice management subjects • Savings on professional liability insurance for EBPAQC and GAQC members • In addition, when you join the Audit Quality Centers, your firm is then listed on the Center website as a firm committed to quality. This firm listing enables purchasers of employee benefit plan and governmental audit services to identify potential firms when they are seeking quality providers of these services. • With numerous CPA firm members nationwide, the EBPQC and GAQC serve as a comprehensive resource provider to support you in the performance of your audit practice. Diane Helms, a Senior Audit Manager at Stancil & Company says, “The AICPA’s Employee Benefit Plan Audit Quality Center is an excellent resource for employee benefit plan auditors. The website is very user friendly and facilitates access to the Center's audit and accounting resource library, practice tools and aids. And, of course, it is a wonderful source for staying current with new auditing standards and DOL rules and regulations. I particularly enjoy reading the primers which I find to be very useful as well. Additionally, you will also find a member firm directory that is accessible to the public. Another important benefit of being a member of the Employee Benefit Audit Quality Center is receiving the Center’s EBPAQC Alerts via email. Missed the latest alert? No problem. You can always find a list of alerts in the bottom right corner of the EBPAQC’s webpage. If you perform Employee Benefit Plan audits, I highly recommend becoming a member of the EBPAQC. You will find it well worth your time.” Demonstrate your commitment to quality and enroll in the Employee Benefit Plan and Governmental Audit Quality Centers today. For additional information or to join the Employee Benefit Plan Audit Quality Center visit the EBPAQC website (http://www. aicpa.org/Interest Areas/EmployeeBenefitPlanAuditQuality), contact the EBPAQC by email or call 202-434-9207. Likewise, to join the Governmental Audit Quality Center visit the GAQC website (http://www.aicpa.org/InterestAreas/ GovernmentalAuditQuality), contact the GAQC by email or call 202-434-9207.
Don’t miss NCACPA’s 2013 EMPLOYEE BENEFIT PLANS CONFERENCE happening May 7 at the Grandover Resort & Conference Center in Greensboro. This year’s conference provides a good foundation for conducting quality audits. Visit WWW.NCACPA.ORG/EBP for registration details. INTERIM REPORT 1st Edition 2013
NCACPA is jumping headlong into the blogosphere with the creation of our own blog. “The Round Table” seeks to be a forum for CPAs to generate and share great ideas. While the association has toyed with the idea of hosting a blog for a while now, the final push came largely from a request by our Notfor-Profit Committee. The committee felt it could be more successful and further reach CPAs in the not-for-profit arena by engaging in conversation through a blog. It only took one spark to ignite this flame. Committee liaisons began talking the blog up to their committees and quickly found many others were also interested in the idea. NCACPA staff began to research other blogs and types of software, and enlisted the help of a consulting firm to help make our blog dreams a reality. “The Round Table” launched in January, and we couldn’t be more excited with the results we’ve seen thus far. We look forward to watching this new forum grow and evolve as members like you become more and more engaged. H O W D OE S I T WOR K ? Check out the images on the next page to learn some of the cool things you can do with the blog. There are ways to stay on top of the most recent postings; share posts with your friends and colleagues via social media and email; leave your comments to engage in conversation with fellow blog readers; and to learn more about the authors who are publishing posts.
H O W C A N I GE T I N O N T H E A C T I O N ? We’re so glad you asked. We love to hear what you, our members, have to say on topics important to the profession and association, and fully support your involvement in “The Round Table.” Maybe you aren’t quite ready to dive in, but want to dip your toe into the blog pool—the water’s fine. If this sounds like the approach you’d like to take then we encourage you to stay current on the posts and join the conversation by commenting. The best way to be in-the-know is by choosing to subscribe to the blog. By subscribing, you’ll be the first to know when new information is posted. It’s like your all-access VIP pass to awesomeness. For those who are ready to be completely immersed in all-thingsblog, we want you as a guest blogger. While we like to think we know a lot, the bottom line is our members know so much more. Maybe you’re privy to some pretty interesting information coming down the profession pike, why not blog about it? Is your committee looking to recruit new members or simply explain what you’re all about? If only there were a channel to convey this … oh, wait! there is—the blog! The possibilities are endless and we welcome all ideas. If guest blogging sounds like your cup of tea, email Heather Hinson at email@example.com to find out more about submitting content ideas. S T I L L H AV E M OR E Q U E S T I O N S? Let us have ’em. Feel free to contact anyone on NCACPA’s Communications Team, and we’ll be more than happy to hear you out. Give us a call at (800) 722-2836 to speak to someone today.
I T ’S YOU R T I M E T O SH I N E!
We’r e a lway s look i ng for ent hu sia st ic w r iter s to aut hor post s on topic s of i nter e st to C PA s. If you’d l i ke to cont r ibute to t he blog i n t h is c apac it y, em a i l you r idea s to Heat her H i n son at h h i n son@ nc ac pa .org.
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AU T H OR S Each author is highlighted in this section. Get to know a little about the person or find out how to contact him/her with any questions you may have. Itâ&#x20AC;&#x2122;s a great way to grow your network.
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Why CPAs Need to Measu re and Report on Sustain By John F. Levy, CPA, MBA ability Efforts
DOING MORE WITH LESS:
I am not a tree hugger or a wild-eyed environmentalist. My idea of communing with nature is eighteen holes of golf on meticulously maintained fairways, greens, and—unfortunately too often—roughs, bunkers, and hazards. However, I have been thinking about what kind of world we will leave to our children, grandchildren, and great grandchildren—and what we, as CPAs, can do to preserve and enhance our companies and world, our only true lasting legacy.
Efficiencies Mean Lower Costs Why should CPAs think about sustainability? I believe sustainability efforts will increase company profits by encouraging our organizations to be more efficient; doing more with less. Less waste means not only less pollution, but also less cost.
CPAs Need to Measure and Report CPAs are ideally suited to measure sustainability efforts because we collect and analyze our organizations’ information. CPAs should lead efforts to report on sustainability because we have the experience and knowledge to create clear, concise, and informative documents.
What is Sustainability? Sustainability means different things to different people. One major impediment to engaging organizations in serious sustainability discussions is a lack of a common vocabulary. A CEO may hear a proposal to spend money appeasing “treehuggers,” while her CFO may really be proposing an initiative to reduce wasteful spending. A commonly accepted definition of sustainability comes from a 1987 report by the World Commission on Environment and Development (WCED). The United Nations convened the WCED to address growing concerns about the accelerating deterioration of the human environment and natural resources. The report, commonly referred to as the Brundtland Report, defines sustainable development as “ development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.
Doing More with Less Successful companies in the 21st century will be more efficient. Companies responded to the 2008 global recession with dramatic workforce reductions and ruthless cost cutting. In a resource constrained world, efficient use of all resources is mandatory. More efficient business processes result in fewer resources used, including energy, water, and raw materials. More efficient resource usage also results in less waste, including air and water pollution and solid waste. Howard Brown, founder of dMASS, a consulting firm dedicated to reducing waste, often says that nothing goes out the back end that did not come in the front end. Companies first purchase the contaminants and pollutants they emit and their inefficient use not only costs society, it costs the company. Reducing waste and pollutants not only benefits the environment, it also financially benefits the company.
Forward-thinking businesses are now reducing all wastes, even non-toxic or non-polluting waste. Current waste reduction efforts include reducing excess materials, reusing materials if possible, and recycling non-reusable materials. While these efforts are laudable, they will not lead to truly sustainable prosperity for an individual business nor society as a whole. In particular, while recycling is important, it is only part of the solution to environmental or resource problems. Improper or inefficient recycling can be energy intensive, expensive, and may even create more waste. Accepting the idea that your product is mostly waste might not be easy at first. After all, you have customers who buy your product. Customers are not really paying you money because they love your product. They want the benefits they get from using your product. If they can get those benefits more cheaply, with less environmental impact, and with some cool but completely new delivery method, they will do it. So where is this drive for efficiency headed? Eventually, someone will find a way to deliver the same benefits existing products do, but with much less resource mass and energy usage. They will be able to serve customers in a more sustainable manner for less money. Your company is at risk from game-changing innovations from a fast moving competitor or a start-up not even on your industry’s radar screen. The way to avoid a crisis then is to start now down the path of doing more with less.
MEASURING SUSTAINABLE PRACTICES The Measurement Dilemma Shareholders, board members, and senior management may understand that sustainability is “good”, and they may even believe that it is “good business”. However, until we adequately measure and quantify the return on sustainable investments in terms of time and money, many businesses will not fully embrace sustainability efforts.
Accounting for Externalities Accounting for externalities may be the greatest sustainability accounting challenge. An externality is the benefit or cost to third parties of an organization’s action, but not accounted for by the organization. Externalities can be positive or negative. For example, a famous chef opening a new restaurant in a troubled neighborhood may create a halo effect, attracting more restaurants, art galleries and theaters to the neighborhood. The additional evening traffic reduces crime by having more people on the streets. Lower crime and attracting new hip businesses increases the neighborhood’s desirability for both residents and businesses, increasing property values. Property owners, both commercial and residential, benefit from a positive externality created by the chef and her restaurant. INTERIM REPORT 1st Edition 2013
Most sustainability discussions focus on negative externalities. Instances of air and water pollution are externalities that at one time had no cost. Legislation mandating limits on air and water emissions and imposing fines and penalties transformed these externalities into expenses. Much of sustainability accounting attempts to measure and quantify other externalities, such as greenhouse gas emission, labor abuses, or excess water or energy usage. Traditional business theory assumes that as production increases, per unit cost goes down. Negative externalities (waste, pollution, labor abuses, etc.) increase as production increases, so the old theories about cost reductions from mass production may need reconsideration.
REPORTING Internal Reporting Goals, objectives, and users’ needs should guide internal sustainability reporting. Reports need to be timely, consistent, and actionable. As the information keeper, an accounting department wields great power in sustainability efforts. However, simply having information provides no value to the organization. Collect and disseminate information on a regularly scheduled basis. We have the responsibility to report all information—good and bad. Provide bad news on sustainability efforts quickly to those who can act on it. Unless the information has significant financial implications, distribution to others can be slower and follow appropriate review and consideration of ameliorating actions. Verify good news but get it out to everyone quickly. Even small wins in the beginning stages of a sustainability effort are energizing.
External Reporting According to the Global Reporting Initiative (GRI), an international nonprofit organization encouraging sustainability reporting and providing reporting guidance, 95% percent of the 250 largest companies in the world reported on corporate responsibility (sustainability) activities. Reporting on your organization’s sustainability efforts requires you to answer two questions: • Why are you reporting? • Who are your intended readers? Most preparers provide reports because they want to improve processes, describe achievements and communicate with stakeholders. Report types vary considerably; however, GRI guidelines are providing more uniformity. Determine your report’s primary users at the onset. If your goal is to meet a supplier’s mandated performance level, your report will conform to their requirements. If you believe your sustainability efforts will provide a positive differentiator with consumers, your reports should be attractive, easy to understand, and generally user-friendly. Initial reports do not need to be complex or comprehensive. 38
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Determine what you want to include in a report. Sustainability efforts are multi-faceted and no requirement exists to report all efforts. Reporting only successes leaves no room for improvement. Readers may understand the difficulty of many of your goals and appreciate measuring effort as much as measuring results. Determining what to include ultimately comes down to what your readers care about. Reports must be verifiable. Some companies provide third-party assurances on their sustainability reports and more large companies now consider using large accounting firms or other consultants to give their reports credibility. Requirements for “audits” similar to public company financial statement audits are a long way off and will probably never be required, but prepare auditable disclosures.
Summary Sustainability means many things to many different people, but at its core sustainability means building a lasting organization as part of a lasting planet. Sustainability is about long-term thinking. Sustainability also means doing more with less. In an ever more resource-constrained world, doing more with less will not only save money, it will help ensure your organization’s continued existence. No sustainability effort succeeds without measuring progress. While measuring some sustainability efforts are hard, without objective and verifiable information, progress is impossible. Information is useless unless others have it and can act on it. Internal reporting on sustainability is necessary, and external report is becoming more commonplace. Think about why you want to communicate, what you want to communicate, to whom you want to communicate, and how you want to communicate. Finally, we need the conviction and courage to get our sustainability ACT together. • Awareness that sustainability is required and opportunities to create and improve our organization’s sustainability efforts are all around us; • Commitment to building a lasting organization as part of a lasting world, and; • Transparency in everything we do, measure, and report. We all have the opportunity to make a difference. Our actions today will define not only our tomorrows, but also our children’s, grandchildren’s and all future generations.
Something to Talk About: Insights from the Emerging Leaders Conference By Scott Anderson, CPA, and Stefanie Leann Holmes, CPA
Part one of this article will appeared in the November issue of Interim Report.
mong other benefits of attending NCACPA’s Emerging Leaders Conference is the opportunity to associate and compare experiences with other up-and-coming CPAs. In case this is not done independently by attendees, this year’s conference included a roundtable session, which provided a structured forum for attendees to share their thoughts on topics important to CPAs, young and seasoned. The topics were selected by members of the Young CPA Cabinet and were meant to reach across all aspects of an emerging leader’s life—namely career, place of employment, life outside of work, the world, and government. The following are not scientific findings, but merely a reflection of the observations of those asked to lead the roundtable discussions. There were approximately 119 conference attendees. Of those who attended, 36 are in public accounting, 53 are in industry, 19 are students, and 11 did not specify.
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YOUR WORLD Technology—What is Being Implemented in Different Workplaces and How it Improves Efficiencies There was quite a bit of interest in the technology roundtable. Everyone seems to have an opinion on the pains and gains of IT, and CPAs are no exception. Topics were all over the board from social media to 2nd, 3rd, and even 4th monitors. The basic trend from every table was we have too much technology and not enough of it at the same time. Every new piece of IT that comes in our offices brings with it accompanying risks. Speaking of risks, there was a great deal of chatter about the mysterious and inevitable cloud and the security that surrounds it. Many mentioned using Dropbox, SugarSync, and Box.com for data transfer while several companies and firms noted they were beginning to migrate away from Outlook to Google for their email and calendar software. With that, there were the common questions of data breaches and confidentiality, but there’s no doubt the cloud is the direction data storage is heading.
YOUR Government The Effects of Government Action in Our Profession Now and Moving Forward The attendees participating in this discussion were interested to find out what the effects of government action are in our profession. At this point in their lives and careers, the balance between work and life does not leave much room to foray into the political arena. It was unanimous that NCACPA needed to inform CPAs about the issues at hand and various candidates from a state and local perspective. However, let it be noted the following day at the Emerging Leaders Conference, NCACPA CEO Jim Ahler gave a very informative presentation on this very topic.
In addition, there was a lot of discussion on the business use of tablets. One well-known accounting firm even purchased a tablet for everyone in the firm. The debate came down to whether or not the tablet’s main use is business or pleasure. At this point, the consensus (at least from the young CPAs) was a tablet’s primary function is entertainment and news. The app market is maturing and business environments are becoming more and more familiar with how to better integrate mobile technology into the white collar world.
Governmental Relations The topic of “Government Relations” is very broad. Each roundtable session began by asking each participant who North Carolina’s representatives are in the US Senate and who are their US House
The consensus seems that young CPAs have little time and patience for politics on professional issues (compared to social items), but they feel increased activity in this area will come as they mature in their career and life.
We need to do our research and ensure we know who supports policy and principles that our profession represents—integrity, objective uses of judgment, and fiscal responsibility.
Globalization—How it Affects Our Profession (Outsourcing, IFRS, International Tax, etc.) This topic centered around the growing impact of globalization on business. With the power of the Internet, employees can virtually work from anywhere in the world and outsourcing has become a standard business practice for companies wanting to help their bottom line. Some participants were concerned with where the United States will stand in years to come; while the US used to be known for customer service, several participants believed this is changing. Other topics briefly discussed by participants were international tax laws, practices, and the differences between countries, and of course IFRS. Specifically, the conversation focused on other global accountants already applying IFRS and whether or not this adjustment puts CPAs in the USA behind the learning curve. Finally, globalization also includes logistics (such as time zone differences), local customs and practices, cultural do’s and don’ts, and the cost of travel. 40
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of Representatives and North Carolina General Assembly delegates. Each participant was also asked who their city council members were. Not surprisingly, participants who worked in the healthcare or governmental sectors were far more aware of who their elected officials were. So how can a young CPA become more informed? Several reasons were identified as to why the youngest generation of professionals remains largely disengaged from the political process. These primary reasons were disenchantment with the current state of political affairs (“politicians don’t care what we think, they follow whatever their party wants them to do”), a feeling of powerlessness (“it doesn’t matter what I think, they don't listen to regular people”), and a lack of knowledge about who does what or the candidates themselves during elections (“seriously, who really knows who these judges are?”).
After discussing these items with the participants we arrived at several ideas. First, we noted most people were intimidated by the idea of approaching candidates. As a result, we discussed the fact that our representatives work for those who elect them. As CPA professionals, our opinions are respected, especially by these individuals who are making public policy, and we need to have the confidence to make them known. Secondly, at the federal level, we need to dismiss the idea, “if I call a representative, I'm just going to speak to some aide.” The aides to the representatives are the gatekeepers to our elected officials and, as a result, hold a tremendous amount of sway. Similar to the first point, if we can level with the aides and make our points clearly to them, these interactions can be very valuable. Third, we need to remain actively involved in educating ourselves. The political landscape changes every two years at the very least. As probably the most flexible of the professions, we need to maintain our discipline and remain actively engaged in what the political battle space looks like. We need to do our research and ensure we know
who supports policy and principles that our profession represents— integrity, objective uses of judgment, and fiscal responsibility. While these principles can mean different things to different people, we acknowledged these three values represent our profession and what we see a need from our elected officials. Sound interesting? Wish you were able to attend? Does this leave you yearning for more information? Please feel free to register for next year’s Emerging Leaders Conference, which will be held October 23–24. Additionally, the Young CPAs host social events in your chapter area throughout the year. We would love for you to come and mingle with other young professionals in your area! Finally, the Young CPA Cabinet is accepting applications for the upcoming 3-year term starting May 1, 2013. The deadline for applications is October 15, 2013, and a selection will be made by December 31, 2013.
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PROGRAMMING THAT IS SIMPLY
By Holly Bazemore, NCACPA Community Relations Coordinator
Saturday, October 3, 2009, the first ‘Making Cents: A Financial Literacy Program for All Ages’ was hosted by the Financial Literacy Council at Southeast Raleigh High School. This monumental event was created as a result of the new Department of Public Instruction’s (DPI) mandatory order to implement financial literacy into course curriculums. Extensive planning went into this initiative and Raleigh was the chosen location. For the next three successful years the event occurred in different locations around the capital city changing the financial futures of today’s youth.
Triangle Chapter Making Cents Sponsors PLATINUM LEVEL PNC Bank
PREMIUM GOLD LEVEL
As planning for the 2012 year began, the realization arose that it was time to do things a little differently. The Financial Literacy Council knew from the start this event had a larger purpose and the potential to reach more students, parents, and teachers than ever before. A goal was set for NCACPA Chapters to host their own variations in hopes of spreading the word about financial literacy across the state.
Dixon Hughes Goodman, LLP
The Triangle Chapter Board came together with several members of the Financial Literacy Council to give this program new life. Triangle Chapter Making Cents: A Financial Literacy Program was born from a collaboration of ideas and talents. It was hosted on North Carolina State University’s campus at the McKimmon Center on Saturday, October 27, 2012. The 4th annual presentation drew record-breaking attendance, totaling 180 participants. The Triangle Chapter created a subcommittee that connected with several large groups before the event, including a class from Chatham Middle School that brought 35 participants and the NCSU TRIO Program that brought about 100 students from eight schools! In total, there were representatives from 23 different schools in the Triangle Chapter-area in attendance. The event received television coverage on My Carolina Today, featuring an interview with one of our Financial Literacy Council members Erin Campbell, CPA/PFS, CFP. Visit http://nbc17.com/ vi/53044/ to see this interview.
Financial literacy programs hosted by our CPA volunteers have become very popular in the Charlotte area in 2012. This idea was welcomed with open arms and the Charlotte Chapter Making Cents: A Financial Literacy Program debuted on November 10. This year’s attendance included 50 participants and over 30 volunteers. A school group traveled over an hour on an activity bus to attend, bringing approximately 20 students and teachers. The program received an abundance of positive feedback and plans are already in the works for year two in this chapter area. It’s safe to say ‘Making Cents’ made sense and that students, parents, and teachers across North Carolina are benefitting from the hard work and dedication of CPA volunteers. The NCACPA Financial Literacy Council, Triangle Chapter, and Charlotte Chapter would like to thank the NCSU MAC Students, Johnson & Wales Accounting Students, our CPA financial literacy volunteers, and all our sponsors who helped make ‘Making Cents: A Financial Literacy Program’ possible. We were very grateful to have such wonderful attendance and support as we revamped this program!
GOLD LEVEL Morgan Creek Foundation
AICPA Blackman & Sloop, CPAs, PA Poyner Spruill, LLP
SUPPORTER 1-800-DryClean Accent Imaging Beacon Financial Strategies Carolina Ale House DocuSource Johnson Lambert, LLP Omega Sports Surety Systems
Charlotte Chapter Making Cents Sponsors PLATINUM LEVEL PNC Bank
SUPPORTER Accent Imaging Docusource Johnson & Wales University INTERIM REPORT 1st Edition 2013
NCACPA’s Future Shaped by Members’ Input BY RACHEL BURGESS
Successful 21st century associations are obsessed with serving their member’s needs. This core belief drives the NCACPA board leadership and staff to continuously ask members, “How are we doing? ” and “What else can we do for you? ” Periodically, NCACPA turns to outside marketing research counsel for this task to gain unbiased feedback across various segments comprising NCACPA’s 13,500 members. NCACPA’S 2012 MEMBERSHIP STUDY In 2012, NCACPA engaged us, the Southeastern Institute of Research (SIR), to conduct a comprehensive strategic membership research study. As a 49-year old research company, we specialize in conducting membership research studies for associations in general and CPA societies like NCACPA in particular. Our company works for AARP, American Chemical Society, and dozens of other national associations. In 2008, we had the honor of conducting NCACPA’s last membership study. The membership study was designed in close collaboration with NCACPA staff and a team of highly-involved members. The survey was conducted online from September 18 through October 1, 2012. All members with a valid email address were sent an invitation email including an embedded link to the survey resulting in 12,474 email invitations. Of these, 1,784 members completed the survey for a response rate of 14%, resulting in a margin of error of +/-2.5 percentage points at a 95% confidence level.
1. Overall, NCACPA’s Members Are Satisfied With Their Membership: One of the major findings of the study is satisfaction with the association is extremely high. Overall, 86% of respondents give NCACPA a rating of strong performance (ratings of four and five on a five-point scale where five is highest). Moreover, nearly all respondents say they are likely to renew their membership (96%). NCACPA’s high membership satisfaction was affirmed through the newest research technique used by Fortune 500 companies to gauge satisfaction—the Net Promoter ScoreTM (NPS). This tool was developed by Fred Reichheld of Bain & Company, and has become the de facto standard with top companies tracking and reporting their customer satisfaction. NPS is measured by asking respondents how likely they are to recommend the organization, in this case NCACPA, to a friend or co-worker. A zero to 10-point scale is used. Those giving a rating of zero to six are designated as “detractors,” customers (or members) who may damage the organization’s brand. Those giving a nine or 10 rating are considered
The gender of respondents was split nearly 50/50. The average age was 46 and respondents reported they have been in the accounting industry for 18 years (on average). Respondents also reported that they primarily work in either public accounting (40%) or industry (38%) and the majority works in a local firm (63%). These percentages closely reflect the demographics of the association. It should be noted, however, the respondents and the membership base are limited in diversity especially in age and race/ethnicity. In this article, we share seven key findings from the 2012 NCACPA Membership Study. These key findings are now being discussed by the board and staff and will help set the direction for NCACPA’s strategic plan. Q1 44
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“promoters,” those who are apostles for the brand. The percentage of detractors is then subtracted from promoters to establish the NPS (score). In 2012, NCACPA’s NPS was 43%. Compared to other CPA associations around the country, with a range of NPS from 31% to 49%, NCACPA falls on the higher end. 2. There Are 3 Core Drivers of Overall Member Satisfaction: Quality of CPE, Value of CPE, and Image of the CPA Industry: What’s behind member satisfaction? One of the best ways to answer this question is through regression analysis—literally building statistical models on what’s driving satisfaction. We do this by probing deep into 18 different association performance attributes, understanding how much—if at all— the ratings of specific aspects of NCACPA’s performance correlates to a high level of satisfaction. Through this modeling, we discovered there are three core drivers to NCACPA’s high level of member satisfaction:
1. Quality CPE programs 2. Offering value-priced CPE 3. Having a positive reputation in the CPA community The more satisfied members are with NCACPA’s performance in these three core areas, the more satisfied they are with NCACPA overall. 3. No question, CPE is the Number One Service Provided by NCACPA. When asked to name their three primary reasons for joining NCACPA, 84% of respondents reported CPE opportunities as a top reason. CPE programs are also what members consider as the most important membership attribute. Nearly all respondents (92%) see NCACPA as a trusted provider of CPE. Respondents see NCACPA CPE as valuable (80%) and of higher quality than other providers (68%). Fortunately, NCACPA is seen as the preferred CPE provider by 60% of survey respondents.
Q4 4. But There’s More to the Member Satisfaction Story—Satisfaction and Drivers of Satisfaction Vary by Subsegment: 13,500 members are not all alike. There are younger members, older member, public CPAs, industry CPAs, etc. Different perspectives often come with different levels of appreciation for industry associations. This is true for NCACPA. Recognizing and addressing these differences will increase NCACPA’s overall satisfaction level in segments such as those who do not take CPE and the younger generations. Today, NCACPA serves four generations of members. A quick view of the graphic above shows each generation, size of the cohort, and their birth years. INTERIM REPORT 1st Edition 2013
6. Participation in Chapter Events Shows Room for Improvement Although NCACPA’s communication strategy has proven effective in reaching and informing its members, participation and awareness scores are low for local chapters. More than half of all respondents reported having received communications from their local chapter, yet, only 30% actually attended chapter events in the past year. More specifically, when it comes to a chapter event, respondents are most interested in networking events.
The 2012 NCACPA Study revealed drivers of satisfaction vary across generation. Silent Generation members (those born between 1926 and 1945) place heavy emphasis on advocating for CPAs in legislation, whereas Baby Boomers (1946–1964) believe providing CPE and local chapter-sponsored events are more important. Gen Xers (1965–1982) would like to see NCACPA maintain a positive reputation in the CPA community. Interestingly, no drivers were revealed among Gen Y respondents (1983–2001). Also, Gen Ys gave NCACPA the lowest NPS of any segment.
7. Participation in Volunteer, Community Outreach Programs, and Events is Limited Volunteerism and community outreach programs are another area with limited participation. Very few have volunteered with either NCACPA committees or various outreach programs. Participation is highest for the CPA Day of Service. Of those who have volunteered, 92% are satisfied with their experience. Over half (52%) of all respondents say they are interested in volunteering in the future.
Through this research we learned one area Gen Yers find most important is to provide networking opportunities—whether on a local or state level. Also, many younger CPAs expressed an interest in online forums to access job postings, discuss problem-solving issues, and seek out advice. These are fruitful areas for the board and staff to explore further. Engaging Gen Y is key to the future of the industry and of NCACPA. 5. NCACPA’s Communication Program Works and Must Use Traditional Print & Online The 2012 study also probed members’ use and ratings of NCACPA’s communications program. The large majority of respondents are satisfied with the current communications and the amount of communications they receive both in print and online. The most read component of the program is the Interim Report magazine with nearly two-thirds (65%) saying they usually or always read it. Also, just over half (56%) always or usually read the Source. NCACPA’s website is viewed as a valuable source of information for members. Most often members visit the website on a monthly basis to access information regarding CPE and events. Nearly half of respondents say they would visit the website more often if there were more CPA industry news featured. Interest in communication with NCACPA through social media platforms or a mobile application is low among all member segments, even Gen Y. While both print and online/social media are working, now is not the time to move to an all-digital strategy.
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What’s Next? These seven findings are just a sample of the richness of the data that has come from the 2012 NCACPA Membership Study. We are now working with NCACPA board and staff to fully mine all of the data. In addition, we are sharing best practices of thriving associations and detailing the major demographic and cultural trends shaping the future of North Carolina. All of this work will serve as the foundation for a strategic plan, one that will help ensure NCACPA’s future success. On behalf of everyone who has been involved with orchestrating the 2012 NCACPA Membership Study, thank you for doing your part in letting us know how we are we doing and what else can we do for you.
WELCOME NEW MEMBERS Welcome to our newest NCACPA members. Whether you are just starting your career or a seasoned professional working in industry, government, or public accounting, NCACPA membership is your connection to your professional community. If you are looking for new members in your chapter area, look no further. Below is a listing of the newest members to the association, listed in their chosen chapter location based on their preferred mailing address. Please feel free to contact Sonya Pittman Guthrie, Membership Manager, at (800) 722-2836, or email firstname.lastname@example.org, to learn how to make the most of your membership.
JOINED NCACPA since August 2012.
WELCOME! ALBEMARLE/OUTER BANKS
Thomas B. Alexander, Nags Head, NC Caroline Leigh Crank, Elizabeth City, NC Teri Lynn Hannell, Manteo, NC Katie J. Musorofiti, Edenton, NC
Sarah Michelle Andrews, Wilmington, NC Alec Chase Boylein, Jacksonville, NC Thomas Churchwell, Wilmington, NC Marty Leigh Clyburn, Wilmington, NC Camron Tyler Faulkner, Wilmington, NC Katherine Futch, Leland, NC
Heather Lynne Guy, Jacksonville, NC Michelle Harris, Surf City, NC Esther Lee, Wilmington, NC Linda S. Loveless, Wilmington, NC Moiz A. Lukmanji, Wilmington, NC Susette McKnight, Rocky Point, NC Amanda L. Skonezney, Wilmington, NC Patsy Ann Stoeber-Enos, Wilmington, NC John W. Whitley, Wilmington, NC Clea Williamson, Wilmington, NC
Hannah North Armsby, Hickory, NC Andrea Bridges, Hickory, NC Miranda Edwards, Mooresville, NC Charles Fulbright, Newton, NC Christie Hedrick, Harmony, NC Kim B. Hurt, Hickory, NC Michael L. Kahill, Lenoir, NC Heather Kelchlin, Mooresville, NC Justin Knight, Hickory, NC Michael Finley Lefevers, Hickory, NC Jared Daniel Reynolds, Hickory, NC Amber Roberts, Hickory, NC Mia Snipes, Hickory, NC Cody Ray Underwood, Hickory, NC Bryan Todd Wright, Hickory, NC Brian Wagstaff Zick, Boone, NC
Bonya Banerjia, Charlotte, NC Alice Biddle, Charlotte, NC Libby Billoto, Monroe, NC Kathy Blake, Charlotte, NC Michele Holcomb Brewer, Charlotte, NC
Laura Jo Canady, Charlotte, NC Andrew Michael Carr, Charlotte, NC James W. Coble Jr., Charlotte, NC Courtney Colmenares, Charlotte, NC Donald Hugh Combs, Monroe, NC Tina Fisher Conrad, Charlotte, NC Joseph N. Council, Concord, NC Bronnie Emanuel Cummings, Charlotte, NC Debra M. DeFelice, Cornelius, NC Rebecca DiPalazzo, Charlotte, NC Tessa Carolyn Dyer, Matthews, NC Lori Brafford Foreman, Albemarle, NC Amelia Georgiou, Huntersville, NC Melissa Larie Geswein, Mount Holly, NC Rebekah Catherine Greer-Carney, Charlotte, NC Lisa R. Hardee, Monroe, NC Kay Harrill, Charlotte, NC Cache' R. Heidel, Charlotte, NC Daniel Wayne Helms, Indian Trail, NC Kelly Henderson, Charlotte, NC Donald Keith Hendrix, Charlotte, NC Jennifer Alexander Higgi, Charlotte, NC Walter Nicholas Humann, Charlotte, NC Alexander Ivey, Charlotte, NC Myron Stefan Jacobs, Matthews, NC Anne Jones, Cornelius, NC Mary Beth Kilguss, Charlotte, NC Linda L. Kromer, Charlotte, NC Emily Lynn Kropp, Charlotte, NC Jon David Lassiter, Charlotte, NC Michael Philip Lucisano, Cary, NC Carlos Martinez III, Charlotte, NC Mitchell Warren Mayer, New London, NC Lisa McAllister, Charlotte, NC Catherine McLester, Charlotte, NC Kyle Milligan, Charlotte, NC Andrew Joseph Moceri, Charlotte, NC Jerry Burike Morrison, Huntersville, NC Patricia Mynatt, Charlotte, NC Ashlyn Nicholson, Huntersville, NC Cynthia L. Nill, Charlotte, NC Jinsu Park, Charlotte, NC Anita M. Parker, Denver, NC Sara L. Pearson, Charlotte, NC Totisha L. Phelps, Concord, NC Benjamin Gregg Pokorney, Charlotte, NC Carla Poplin, Monroe, NC Kenneth M. Postal, Charlotte, NC Sharon R. Reel, Charlotte, NC Mary-Susan W. Rivers, Huntersville, NC Jeremy Lee Russell, Charlotte, NC Susan D. Sabo, Marvin, NC INTERIM REPORT 1st Edition 2013
Aaron Joel Salter, Monroe, NC Thomas Schauder, Huntersville, NC Joshua Daniel Skidmore, Charlotte, NC Debbie Stallings, Monroe, NC Bernice Stephens, Charlotte, NC Christopher Swanson, Charlotte, NC Amanda Claire Thomas, Charlotte, NC Chris Truitt, Charlotte, NC James Maxwell Van Dorn, Charlotte, NC Elizabeth R. Wagner, Charlotte, NC Christopher Donald Wente, Charlotte, NC Christine Wesson, Denver, NC Zachary Scot Weston, Charlotte, NC Andrew Wallace Williams Jr., Charlotte, NC
Sherry Boyette, Wilmington, NC Robin Flinn, Wilson, NC Christian Rae Fulcher, Davis, NC David M. Garrett, New Bern, NC Richard Andrew Goldston, Beaufort, NC Zeshawn Manzoor Hussain, Greenville, NC Robin Narron, Middlesex, NC Amy Roach, Washington, NC Aaron Joseph Sparrow, Greenville, NC Amanda Taylor Spivey, Wilson, NC Linda M. Woods, Belhaven, NC
Mary Jo Austell, Earl, NC Edward D. Bedard, Dallas, NC Jody Renae Gill, Tryon, NC Henry Luther Greene III, Cherryville, NC Kristi Torbett Johnsen, Denver, NC Jason Charles Thompson, Rutherfordton, NC Dena Trantham, Lincolnton, NC
Candace Leigh Altman, Dunn, NC Carol-Anne Glyder, Pinehurst, NC Heather Godwin, Fayetteville, NC Robin Denise Hewett, Aberdeen, NC Myunghee Hwang, Buies Creek, NC Amber Linn Lopez, Fayetteville, NC Maggie Elese Peterson, Newton Grove, NC Megan Sigismund, Southern Pines, NC Jessica Caroline Tharpe, Buies Creek, NC Robert Yantin, Hope Mills, NC
Richard Adcock Jr., Winston-Salem, NC Jon David Alford, Winston-Salem, NC Stephen Byrd, Winston-Salem, NC Joanne Holbrock Elliott-Perry, Clemmons, NC Stephen Donald Embler, Winston-Salem, NC Brad Nicholas Goins, Winston-Salem, NC Christopher D. Henson, Winston-Salem, NC Sue S. Honeycutt, Yadkinville, NC Janet Kallsen, Clemmons, NC Maria D. Lowder, Salisbury, NC Chris Mills, Salisbury, NC Sarah Suzanne Nieto, Winston-Salem, NC Elizabeth Randolph Palmer, Winston-Salem, NC Meaghan Dorman Rieth, Advance, NC Melissa W. Scott, Germanton, NC Courtney Martin Smith, Mount Airy, NC Ha Minh Sprinkle, Mocksville, NC Travis Jackson Strickland, Lexington, NC Shelley Trogdon, Winston-Salem, NC Henrietta S. Wheeler, Thomasville, NC Sarah White-Harvey, Gold Hill, NC
Andrew Edward Barrow, Greensboro, NC Taylor Nicole Bradsher, Burlington, NC Tres Newman Cobb, Greensboro, NC 48
Braelinn Connor, Greensboro, NC Jeffrey B. Cornelison, High Point, NC Steven Thompson Corneliussen II, High Point, NC Bob R. Costa, Wentworth, NC Olivia Addison DeJurnette, Burlington, NC Krista Newton Durden, Greensboro, NC Eric R. Godfrey, Greensboro, NC Richard Hash, Greensboro, NC Brian John Mascia, Greensboro, NC Christopher Wallace Miller, Colfax, NC Jason Bradley Morgan, Greensboro, NC Julie O'Brien, Greensboro, NC Lisa Arleen Owens-Jackson, Greensboro, NC Stefano Rosic, Greensboro, NC Robert Kyle Rouse, Greensboro, NC Drew Saia, Greensboro, NC Natosha Dawn Sanders, Greensboro, NC Grace Clark Snow, Oak Ridge, NC Brian Staton, Gibsonville, NC Robert Christopher Thale, Greensboro, NC Michael William Visconti, Elon, NC David Waterman, Greensboro, NC Binbin Weng, Greensboro, NC
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Diane Scobie Aldridge, Chapel Hill, NC Matthew Anderson, Apex, NC Kimball Rose Andresen, Raleigh, NC Carolyn Kelley Arrington, Durham, NC Brandon Beasley, Raleigh, NC Trisha Brumley, Raleigh, NC Greg Bryant, Raleigh, NC Loreta Bufi-Ivanova, Raleigh, NC Kristi W. Chestnutt, Raleigh, NC James G. Chopas, Chapel Hill, NC Olivia Corley, Chapel Hill, NC Margaret M. Davis, Raleigh, NC Susan Debevec, Wake Forest, NC Sunita Dev, Cary, NC Glenda L. Diaz, Raleigh, NC Clinton Wayne Dobson, Clayton, NC Charles Driggers, Durham, NC Laura DuBose, Wake Forest, NC Suzanne Marie Dunlow, Raleigh, NC Amber Dunn, Raleigh, NC Arthur Gordon Eisenstadt, Raleigh, NC Lauren Nicole Elliott, Henderson, NC Donna W. Emory, Durham, NC Frank Edward Fee III, Durham, NC Erica Fianchino, Raleigh, NC Ashley Fromm, Cary, NC
Benjamin Alain Fulton, Durham, NC Lynn Furgurson, Chapel Hill, NC Latonya Nicole Garrison, Raleigh, NC Donna Griffin Gast, Cary, NC William Andrew Haddock, Raleigh, NC Gihan Farid Hanna, Cary, NC Clayton Heath, Raleigh, NC Clifford Highlund, Pittsboro, NC James Brian Hill, Raleigh, NC Caroline Jessie Holt, Chapel Hill, NC Lauren Hoyt, Cary, NC Michael Diego Johansen, Raleigh, NC Benjamin H. J. Johnson, Chapel Hill, NC Pallavi Keshavamurthy, Apex, NC Tim Ketterman, Smithfield, NC Jennette J. King, Raleigh, NC Christian LeBron, Raleigh, NC Ying Li, Raleigh, NC Kristen E. Lindsey, Raleigh, NC Staci R. Mantz, Raleigh, NC Jeff Marko, Raleigh, NC Andrea F. Matzinger, Knightdale, NC Michael Scott McCord, Raleigh, NC Jennifer McDaniel, Raleigh, NC Lisa C. McFarland, Durham, NC Margaret Medlin, Raleigh, NC Lori A. Mitchell, Durham, NC Matthew Evans Morse, Raleigh, NC Bradley Netherwood, Raleigh, NC Andrew Joseph Novak, Durham, NC Alex O'Neil, Raleigh, NC Wendy Pendergraph, Kenly, NC Jamie Linn Pennell, Garner, NC Syed Ali Raza Qadri, Apex, NC Andrea Quaranto, Cary, NC Shayla Randolph-Bowes, Raleigh, NC Meredith Fincher Rawls, Cary, NC Ali T. Razavi, Raleigh, NC Gwendolyn McMillian Reilly, Chapel Hill, NC Kamal Fawzy Rizk, Raleigh, NC Amy Robinson, Garner, NC Ronald Scarboro, Raleigh, NC Jane E. Scarlett, Raleigh, NC Hantz Serrao, Chapel Hill, NC Anthony Serricchio, Durham, NC Eric E. Setzer, Raleigh, NC Shaista Shireen, Cary, NC Cameron Shore, Raleigh, NC Joanna Shuett, Pittsboro, NC Kimberley Williams Simmons, Wake Forest, NC Jennifer Lynn Simon, Raleigh, NC Lyria Sims, Clayton, NC Mark Skinner, Raleigh, NC Kathleen Snively, Cary, NC Valerie Snyder, Raleigh, NC Sue A. Sprunger, Raleigh, NC Gary Stephenson, Garner, NC Samuel Stevens IV, Durham, NC Vicky Lynn Tant, Cary, NC Stevenson Tranquille, Durham, NC Angela Tyson, Raleigh, NC Idania I. Valerio, Raleigh, NC William VanHook, Morrisville, NC Steve Vesilind, Cary, NC
Lori L von Gretener, Raleigh, NC Stephen Arthur Vore, Raleigh, NC Chad West, Clayton, NC Joel White, Durham, NC Elizabeth Whitt, Cary, NC Timothy Craig Wicker, Raleigh, NC Sophia D. Woo, Chapel Hill, NC
PREVENT. INVESTIGATE. SOLVE.
Brock Hamilton Barnett, Marion, NC Elizabeth Noel Bean, Weaverville, NC Erica Burleson, Marion, NC Ryan Conley, Franklin, NC Susan Leigh Darnell, Asheville, NC Jaime Lynn Hare, Fletcher, NC Bentley Hollifield, Asheville, NC Michael Christopher Kinlaw, Asheville, NC Robert W. Knapp, Asheville, NC Sonya Dodson McCall, Mills River, NC Peter W. McDanel, East Flat Rock, NC Clayton Matthew Messer, Arden, NC Melissa Ann Pennscott, Asheville, NC Tilson Rice, Asheville, NC Susan Rickert, Asheville, NC Christen Robertson, Spruce Pine, NC Lidiya V. Ropalo, Asheville, NC Mandy Renee Wakem, Black Mountain, NC Danny Willis, Marion, NC Donna Yost, Franklin, NC
OUT OF STATE
Jill Lafferty Ashe, Fort Mill, SC Shannon Barwick, Sumter, SC Parnell Black, Salt Lake City, UT Daniel Bowman, Harrisonburg, VA Bonnie J. Brown, Orlando, FL Anna Byrum, Fort Mill, SC David O. Campbell, Danville, VA Philip Edmisten, Dunwoody, GA Russell Gladden, Lancaster, SC Amy B. Helsley, Harrisonburg, VA Qing Huang, Fort Mill, SC Candace Parker Ingle, Rock Hill, SC Gretchen Lynn Kinnear, Fort Mill, SC Kyung Sook Lim, Southfield, MI Jie Liu, Franklin, TN Hassaan Ahmad Malik, Alexandria, VA Adam C. Martin, Meridian, ID John Taggart McGurrin, Clarks Summit, PA Richard Lee McRae, Fort Mill, SC Albert John Mixner Jr., Windermere, FL Mary Ann Peugeot, Nashville, TN Carla Martin Shumate, Bristol, TN Preda Siri, Bridgeport, CT Holly K. Trotter, Hoboken, NJ Andrew Eugene Tucker, Fort Mill, SC Brenda Lee Turner, Martinsville, VA Peter F. Wojda, Bend, OR Stephanie Lee Wurtz, Melville, NY Richard H. Yancey, Harrisonburg, VA
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