The Journal Entry - 2019

January

2019,

Vol.

I

|

Advocacy

Advocating for Utah's CPAs Meet the Lobbyists Who Represent the Interests of Certified Public Accountants

By David Peterson www.uacpa.org the journal entry | January 2018

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Mission,Vision,Values

ExecutiveBoard

Mission

president....................................................... Matt Klein president-elect.................................. Monica Gardner vice president.................................... Jay Niederhauser treasurer............................................Jason Tomlinson member-at-large...................................... Tom Colligan immediate past president.............. Gavin Hutchinson aicpa council.......................................Brandon Allfrey pronet council.......................................... Amy Anholt ceo..............................................................Susan Speirs

The UACPA leadership supports and challenges members through advocacy, professional education, leadership development, networking, and community service to help them succeed in a competitive and changing world.

Vision At the UACPA, our vision is to be a world-class professional association essential to our members.

We unite a vibrant community of CPAs to enhance the success of our members and champion the values of the profession; integrity, competency, and objectivity.

Values Advocacy The UACPA represents the profession at the legislature and other regulatory bodies and promotes the value of the CPA to employers, the business community, and the public at large.

Leadership & Service The UACPA provides leadership and service within the profession, within the UACPA, and within the community.

Professional Development The UACPA supports and encourages continuing education and leadership development.

UACPAStaff

ceo......................................................... Susan A. Speirs communications/marketing and editor of the journal entry................ Amy Spencer cpe manager.......................................... April Deneault financial director...................................... Tom Horn membership development............ Braden Thompson Cover photo by Christian Wood/Robert Wood Photography

The Journal Entry is published quarterly by the UACPA 136 S. Main Street, Suite 510 Salt Lake City, UT 84101 phone: 801-466-8022 toll-free in Utah: 1-800-676-2776 email: mail@uacpa.org web: www.uacpa.org

Professional Community The UACPA reinforces peer accountability to encourage members to maintain integrity and high ethical standards. ​​It provides member-to-member networking opportunities and networking opportunities with other professions. It values belonging to a distinguished organization and believe that we serve as the primary resource and point of contact for Utah CPAs.

UACPA Statement of Policy CPAs have common problems and interests. This magazine has been created to share information relating to the practice of accounting.

The opinions, views and articles expressed in this magazine are not necessarily those of the Utah Association of Certified Public Accountants. This magazine should not be deemed an endorsement by the UACPA or its committees or editorial staff of any views, opinions or

Diverse Population Outreach

positions contained herein. Because of the complexity of tax laws and

The UACPA believes in reaching out to under-represented populations, those returning to the profession or choosing it as a second career, and other professions.

accounting transactions and the changing status of the law, as well as variations in practices and procedures among accountants, information in the magazine should not be used, acted or relied upon, as a substitute for independent accounting or legal research and advice.

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in this issue | January 2019

feature story

Meet the UACPA's Lobbyists 129 New Members............................................................................................4 Movers & Shakers......................................................................................5 President's Message...................................................................................6 Message from the CEO............................................................................. 7 What's Happening on the Hill for Utah CPAs.......................................9 By the Numbers: Utah Legislature........................................................ 14

AICPA Council Update 15

AICPA Council Update.......................................................................... 15 The Future of Finance............................................................................. 17 Fraud Lessons Learned the Hard Way.................................................. 19 Save Yourself with Software...................................................................22 Women in Accounting: Katrina Baird, CPA........................................26 Meet the Executive Board......................................................................28

Fraud Lessons Learned the Hard Way 19

Board Bullets ...........................................................................................29 Meet the UACPA Staff.............................................................................29 Comic: Generally Excepted....................................................................30 Meet a Member: Chesley Erickson, CPA............................................. 31 2018 Inauguration & Awards Recap.....................................................32 Photos: Inauguration & Awards............................................................36 Member Benefits/100% Membership Firms........................................38

Meet a Member: Chesley Erickson, CPA 31 the journal entry | January 2019

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New Members

New Members

Congratulations to the following individuals who were approved for membership or affiliate status in the UACPA as of November 30, 2018.

Bradley Wyatt Stayner Bates P.C.

Blake R. Henderson BRH & Associates Inc.

Kamilyn Ball Ernst & Young LLP

Paul Auffant

Logan C. Wisener Deloitte & Touche, LLP

Ryan R. Tesch

Sean Averett Eric R. Graves Tanner LLC Tausha E. Brinton Haynie & Company Jay Bangerter Rocky Mountain Care

Darrin Bronson Tanner LLC Stacey Porter Traveller & Co LLC Logan L. George Eide Bailly, LLP

Kristen G. Valentine

Brayden Ross Eide Bailly, LLP

Andy Speirs Trader Roberts & Spangler, PLLC

Valerie A. Illingsworth Eide Bailly, LLP

Tyson Sperry Deloitte & Touche LLP

Leigh I. Cannon Certified Accounting Solutions

Stephen Millet

Brian R. Kubricky

Dustin P. Jensen Eide Bailly, LLP

Terrence A. Gardner

Scott Gonzalez Castle & Cooke Mortgage Priyankara S. Silva Ernst & Young Kirk Bever Brandon Cook Tanner LLC Jordan Colohan Rocky Mountain Advisory LLC Allison M. Uchida PwC Karl Schubert 4

Megan M. Adams PwC Andy Archibald Campbell Scientific, Inc.

Tyler Moss Beaver Valley Hospital Sarah A. Harker Deloitte & Touche, LLP Kenneth W. Klingler Garrett Sill Security National Financial Corporation Ryan Cooper Nagel CPAs, LLC Garth M. Wheeler Kurt Gilbert Gilbert & Stewart Amy Brubaker Deloitte Tax LLP Nate McConkie Lifetime Products, Inc. Michelle Cook Haynie & Company

Jolynn D. Runolfson

Scott Lamb TVH

Jeff Dredge Morris & Dredge

Stephanie Ballantyne

Karen K. Morgan The Thackeray Company Rick S. Gallacher Whittenburg Wealth Partners Spencer Bickmore Tanner LLC

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Taylor Wagner KPMG LLP Spencer Job Tanner LLC Aaron Nelson Owen Power Traco Manufacturing, Inc.

Students

Brigham Young University Kalisha Johnson Hayden Gunnell Connor Sullivan Capella University Whitney Ennis Dixie State University Elizabeth Empey LDS Business College Nancy Tapusoa Stevens Henager College Kayla Fleming University of Utah Michael Lauret Robert Sisson Sierra Hart Zoe Machara Nolan Gilmore Benjamin Anderson Brad Kendrick Sydney Boe Utah State University Allison Elder Kinsey Brashears Lia Sorensen Nicole Nye Ailin Zhou Ryan Lee Kollin Keller Abby Hart Lacey Tischner Jacob McGarry Tyrel Pierson

Utah Valley University Michele Farr Logan Arpino Kyle Crown Sharem Young Becky Bowman James Hall Travis Offley Chad Stevens Khale Tilby Braden Page Taylor Reil Joshua Bulpitt Chelsy Christensen Arlen Card Shelby Curtis Eric Curry Garrett Winters Mariah Frazier Alexis Eastwood Mariah Cordera James Frehner Jenny Blaylock Kyle Balcer Weber State University Braxton Buckway Benjamin Hyer Amy Grovum Mitch Hansen Jaxon Ombach Kirsten Johnson Caleb Johnson Westminster College Addison Rosner Jack Herrick Vanessa Huang Emma Heyn Lyndi Porter

Movers & Shakers

Jon Haderlie has been promoted to audit partner at the Spanish Fork office of Larson & Company. Previously a senior audit manager at Larson & Company, Jon has more than 12 years of public accounting experience. Jon has led the marketing efforts for the government practice since 2015 and is an expert in his field. He received his bachelor's in accounting from Utah State University and master's in accounting from Brigham Young University.

Jon Haderlie Nina Quaredquio has been admitted as an audit partner at Tanner LLC. She brings more than 20 years of professional experience in both audit and tax servies. She is a trusted advisor to her closely held entrepreneurial and investor backed private clients and an expert in complex accounting topics. Nina received a Bachelor of Science in Accounting from Long Island University and is active in the community.

Nina Quaredquio CliftonLarsonAllen is pleased to announce the advancement of Jeremy McAdams to principal. He joined as an audit manager in January 2017 and has experience in providing accounting, auditing and consulting services to companies in the construction, manufacturing, nonprofit and tech industries. He graduated from the University of Utah in 2010.

Jeremy McAdams After 38 years in public accounting, Kent M. Bowman has retired as partner at Tanner LLC. His career spans three different professional firms, including 14 years at Tanner where he was instrumental in helping the firm grow from approximately 35 people to 150 professionals.

Jonyce Bullock has been named CEO at Squire. Jonyce will continue as office managing partner of the Orem office. Shane Edwards has been appointed as office managing partner for the Salt Lake City office. Both Jonyce and Shane will continue as members of the firm's executive committee and board of directors.

Abercrombie & Associates, PC in Texas has merged with Haynie & Company. Through the merger, Haynie & Company will continue to offer a full array of accounting services and will increase its presence in the Houston and the Woodlands area of Texas. They now have more than 180 employees throughout their seven offices.

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President's Message

Matt Klein, CPA

T

he value proposition for CPAs to join the UACPA has changed over the years and is becoming more personalized with each member finding value in different services and benefits. The one activity the Association performs, that I believe has universal appeal, is coincidentally the most valuable service we provide: advocacy.

As I have had the privilege of meeting members across the state and speaking about the current state of the Association this year, one thing I always highlight is advocacy. With the ever-changing political landscape, having a constant voice fighting on behalf of the profession that is our livelihood is the best reason to be a member of the UACPA. As the state association for CPAs, we are asked for our opinion on many political issues. We have a key-person committee, which is made up of members who know politicians that the board and staff may not yet know. The UACPA operates a Political Action Committee (PAC), which advocates on behalf of the CPA profession, not just the UACPA. Susan Speirs, our CEO, spends a considerable amount of time on the hill and has developed relationships with legislators. We contract with lobbyists to help us keep a consistent presence on the hill as lawmakers change and bills open and close each year. While sometimes we are asked for our opinion, if we want our voice heard, we have to fight to find the right audience and keep fighting to get traction.

We need to get beyond the political connotation of the word and think of all the ways in which we advocate for our profession. A lot of the work done by the UACPA is on behalf of the profession with stakeholders in government, the business community, and the profession. It is important to note that our advocacy efforts are supported by member dues and led by the Association, yet we advocate on behalf of the profession and all CPAs, not just our members. I

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think our advocacy efforts alone are a great reason to join the UACPA. I encourage each of you to find ways to be involved with the advocacy efforts and help protect and advance our profession. The more voices and opinions we have, the more power our advocacy efforts can have. It has been my honor and pleasure to advocate on behalf of the UACPA and the profession as a whole. While my term as president is ending, I am sure you will still see me around.

The UACPA is like the Hotel California, “You can check out any time you like but you can never leave.” We always need and appreciate member involvement — it is the backbone of our association. I hope you will continue to see what the UACPA can do for you. ■

CEO's Message

Susan Speirs, CPA

H

appy New Year!

With each new year comes a new legislative session, new issues to battle, new leadership and new opportunities to represent our profession. This year will be no different.

No sooner had the November elections ended, we saw a special session for legalized medicinal marijuana and questions as to how the state is going to fund transportation and education. All of these items affect CPAs. Marijuana is a Section I substance under the Federal Code which poses the same question many states that have legalized marijuana have asked: How does this affect my license? How do I prepare the financials, obtain banking or prepare tax returns for those who are conducting business in the marijuana arena?

Last June, our Executive Board and Leadership Council approved opening a bill file that would allow CPA candidates to sit for the CPA Exam at 120 hours rather than the current 135 as stated in 58-26-306. This came about as many employers and students asked if there was something we could do to change the rule. Employers want new hires to pass the exam before they begin employment and students want to pass the exam before they begin their “real" jobs. Rep. Hawkins, from Utah County will be carrying our bill as a priority bill.

High on our priority list of bills to watch this year is tax on services. Governor Herbert has made it clear that he would like to "broaden the base and lower the rate." We had the opportunity to meet with the Governor's Office of Management Budget (GOMB) soon after the election results were in. As Opinion No. 1 was defeated in the election, which would increase fuel taxes by $.10 per gallon, other ways are being sought out to increase the base for collecting tax revenue to the state. Our lobbyists,

as well as legislative partners at the AICPA and The Accountants Coalition, will be working with us as we keep any sales tax bills at bay. We’re seeing a national trend for this sort of tax as many states are struggling to balance their budgets.

Rep. Norm Thurston is looking for ways to move towards competency-based licensure. We participated in a roundtable in December where conversation centered around current licensure requirements among professions and trades and what the future could look like. Because we have mobility in our profession, it does not make sense to uproot what works across the nation and create huge barriers to entry as we have CPAs moving in and out of the state. Stay tuned.

We will also be involved with issues regarding the Enterprise Zone Tax Credit. We thank our members who have brought to our attention some of the difficulties filing the appropriate documents and receiving feedback in a timely manner so that state income taxes may be filed. We will be working with legislators, the Utah State Tax Commission and the Governor's Office of Economic Development (GOED) to find a point of resolve. ■

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(L-R) David, Craig and Ryan Peterson work on behalf of the CPA profession.

Photo by Christian Wood.

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Navigating the 2019 Legislative Session the uacpa's lobbyists gear up to advocate for Utah's cpas.

By David Peterson

A

wise man once told me you can learn everything you need to know about politics in the space of seven years. Everything after that is a reconsideration, reevaluation, or reexamination of existing legislation or legislation that has failed in the past.

In the Army, we call this the "Good Idea Fairy.” The "Good Idea Fairy" usually shows up to influence an individual who is new to an organization (and has a bit of power), to make certain changes to an organization in order to make it better. Usually, the new changes being recommended have been considered and rejected, unsuccessfully implemented, or outright ignored in the past. Unfortunately, the energy expended to address, evaluate, and expose these good ideas for what the really are, can be tedious and time consuming. Luckily, the UACPA has a small but highly efficient team of vigilant and dedicated professionals whose responsibility it is to be on the look out for the "Good Idea Fairy" and do their best to swat it out of the sky when necessary.

This legislative session, we will, once again, be on the lookout for the "Good Idea Fairy." With the recent election, we anticipate dealing with challenges stemming from a 25 percent turnover in the legislature to include leadership in both legislative bodies, a governor looking to “broaden the base and lower the rate” as it pertains to taxes, and the UACPA’s emerging role in Utah politics as we grow our influence by strengthening our PAC. The mid-term elections in Utah saw voter turnout top 54 percent which was the highest participation percentage in almost 50 years. Many counties surpassed 70 percent participation.

We saw the State of Utah legalize marijuana, expand Medicare coverage to an additional 158,000 people, and empower the governor with creating an independent redistricting commission to combat perceived gerrymandering.

Utahns voted to amend the constitution to allow a property tax exemption for members of the Armed Forces deployed more than 200 days in a 365-day period. Voters also granted the state legislature with the authority to call themselves into special session; a power previously held only by the governor. To say this mid-term election cycle was entertaining would be an the journal entry | January 2019

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Feature Story understatement. When the dust finally settled, the Utah House of Representatives added 19 new members to its ranks and the Utah State Senate added 7 new members.

What does this mean for Utah? The majority of the 26 people coming into new positions of relative power have little or no experience. Each of them campaigned on a platform of change and each hopes to bring some type of revision to the State of Utah that will benefit their constituency. This is an environment ripe for "Good Idea Fairy" influence which could affect the UACPA. The change in the makeup of the legislative body brings with it a complete overhaul of the majority leadership in both the House of Representatives and the Senate.

Neither the Speaker of the House (Greg Hughes, R-Draper) nor his counterpart, the Senate President (Wayne Niederhauser, R-Draper and Sandy) sought reelection. Each of their seats were filled by freshman legislators and a new speaker and president were elected shortly after election night results were finalized.

House Majority Leader Brad Wilson (R-Kaysville) was elected House Speaker. Rep. Francis Gibson (R-Mapleton) was elected Majority Leader; Rep. Mike Schultz (R-Hooper) is Majority Whip and Rep. Val Peterson (R-Orem) was elected Assistant Whip. In the Senate, Majority Whip J. Stuart Adams (R-Layton) was elected Senate President. Sen. Evan Vickers (R-Cedar City) was elected Majority Leader; Sen. Dan Hemmert (R-Orem) is Majority Whip and Sen. Ann Millner (R-Ogden) was elected Assistant Majority Whip.

It has been more than 25 years since both legislative bodies elected new leadership at the same time. With new leadership comes a new legislative personality, a shift in legislative priorities, and a shuffling of all standing and appropriation committees.

The Utah legislative landscape changed dramatically with the mid-term election results, but that change does not necessarily mean we’ll see a dramatic change in target topics for revisionary legislation.

For the third year in a row, the Utah legislature will deal with competency-based licensing, which will affect the membership of the UACPA. But what is competencybased licensing and, more importantly, why should you care? The simplest example of competency-based 10

the journal entry | January 2019

licensing is probably sitting in your wallet right now.

Your driver’s license is an example of competency-based licensing. When you went to the DMV for the first time, you demonstrated your driving proficiency in three ways: 1. proof you completed driver’s education, 2. passing a written test administered by the DMV, and 3. proving driving proficiency through a skills test administered at the DMV or attested to by your driver’s education course instructor. But how would competency-based licensing work for CPAs? Well, the first requirement eliminated would be the four-plus years each of you invested in your education. That seems counter-intuitive to our driver’s license example, but some lawmakers view licensing requirements as a barrier to entry of an individual’s desired career field. The question being, “Why should I be required to provide proof of formal education when I’ve learned what I need through on-the-job training and hands-on experience?” It is a great question to ask, but there is no universal answer. If an individual can demonstrate a proficiency in preparing end-of-year income taxes, does that make him a CPA?

The Utah legislative landscape changed dramatically with the mid-term election results, but that change does not necessarily mean we will see a dramatic change in target topics for revisionary legislation.

While in the Army, I was the officer-in-charge of the largest Volunteer Income Tax Assistance (VITA) program in the Armed Forces. We prepared thousands of returns and saved the Fort Bragg military community more than two million dollars in tax preparation fees and our clients received more than 20 million dollars in returns. Does that make me a CPA? Of course not, but my experience and my ability to take standardized tests may give me the ability to slide into a position you spent a significant amount of time (and money) preparing for.

Competency-based licensing isn’t the only piece of legislation that could find a foothold with a couple of the new legislators, the governor has proposed expanding sales tax on professional services.

Feature Story Governor Herbert has served the state of Utah for the last nine years and has held high voter approval ratings for all nine of those years. In 2014, the Washington Post ran an article naming him the most popular governor in the country based on his approval ratings among his constituency. His current approval ratings are still very high but there has been no indication that he plans on running for another term.

This fact, coupled with the failure of the gas tax increase ballot question, has the governor talking about tax reform.

Some newspapers report Governor Herbert believes that Utah incomes have grown, dramatically boosting the state’s income tax, but other revenues, like the gas tax, are failing to cover costs in a way they used to. Thus, the governor has proposed a $200 million tax cut at the same time proposing sales taxes on previously untaxed services with the idea to broaden the tax base in a fair way but lower the overall tax rate.

What does that mean for you and me?

For now, the list of services seems to extend to haircuts, limo rentals, pest extermination, liposuction, etc. But in the past, legislators have attempted to extend that list to professional services (doctors, lawyers, engineers, and accountants). At this time, we’re not sure what effect that will have on the CPA profession, but we will remain ever vigilant in spotting reforms that may have a negative impact on the accounting profession.

Over the past couple of years, we have had the opportunity to meet with many of you. We’ve traveled to St. George, Logan, Park City, and Salt Lake. We’ve presented at legislative the journal entry | January 2019

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Feature Story update luncheons and winter conference. It has been an absolute pleasure meeting and talking with many of you and we are pleased by your interest in the legislative process.

We know the scheduling of Utah's legislative session prevents many of you from seeking and holding positions within the legislature, but that does not preclude your involvement and influence in legislation that impacts your industry. As lobbyists, we can't emphasize enough the importance of a strong PAC. This is not an attempt to line our own pockets, our fee is actually paid out of the UACPA budget, but a strong PAC gives us a seat at the table both literally and figuratively.

We know the scheduling of Utah’s legislative session prevents many of you from seeking and holding positions within the legislature, but that does not preclude your involvement and influence in legislation that impacts your industry. As lobbyists, we can’t emphasize enough the importance of a strong PAC. This is not an attempt to line our own pockets, our fee is actually paid out of the UACPA budget, but a strong PAC gives us a seat at the table both literally and figuratively.

It is your support of the Utah CPA PAC which will be instrumental in our political endeavors. As we head into the 2019 general legislative session, the UACPA should feel confident that their interests are both wellrepresented and fiercely protected. We cannot overstate the importance of the eyes and ears of association members who provide valuable information which facilitates our legislative mission.

It is the combined efforts of a dedicated association, committed leadership, and diligent lobbying team which will ensure our success in the coming months. ■

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David Peterson is a partner and attorney with Peterson Consulting Group. He received a B.S. degree from Brigham Young University, his J.D. from the University of Toledo, and his LL.M. from The Judge Advocate General's Legal Center and School. He has served on Active Duty and with the Army National Guard for more than 20 years and currently holds the rank of Major.

Ryan Peterson is the managing partner of Peterson Consulting Group. He has been a contract lobbyist in the State of Utah for the last 12 years. He received a degree in economics from the University of Utah with a focus on statistics and econometrics. He is an avid golfer and resides in Salt Lake City.

Craig Peterson, senior partner of Peterson Consulting Group, has been involved in legislative processes for almost 40 years as a State Representative, State Senator, and Republican Senate Majority Leader. During the past 20 years, he has been a lobbyist, successfully representing a broad spectrum of clients. Craig and his sons Ryan and David have become a strong political voice for their clients.

2019 leadership academy

Feature Story

THE BEST VIEWS COME TO THOSE WHO CLIMB Leadership Academy is an intensive and rewarding retreat to develop and enhance the skills needed to propel new professionals into the future.

This year, Leadership Academy is accepting 20 new professionals to participate in this exclusive opportunity. The application deadline is August 4, 2019.

In addition to topic discussions, academy To apply, visit www.uacpa.org/ participants will have a service opportunity throughLeadershipAcademy Junior Achievement.

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by the

Numbers

These numbers reflect the current status of the Utah State Legislature.

Utah legislature

104 75

elected officials comprise the Utah State Legislature

state representatives comprise the Utah House of Representatives in the legislature

45 29 14

state senators are represented in the legislature

the journal entry | January 2019

29,800 individuals (approximately) represented by each House representative

days of the legislative session, beginning the fourth Monday in January

77,000 individuals (approximately) are represented by each state senator

AICPA Council Update board members represent and advocate for Utah CPAs

By Matt Klein, CPA

T

he American Institute of Certified Public Accountants (AICPA) governing Council meets once a year in regional breakouts and twice a year as the full body. The Council is composed of 265 members who are elected, designated, members of the board, members at large, and ex-officio members. They are selected by state societies and the nominations committee and strive to be representative of the general membership of the AICPA. Fifty-four percent of the membership is in public practice while 59 percent of the governing council is in public practice. Thirty-one percent of the membership is in industry while 17 percent of the governing council is in industry. And eight percent of the membership is in education while 5 percent of the governing Council is in education.

The governing Council approves decisions made by the Board of Directors as required and also votes on issues that should be taken to the general membership.

The main responsibilities of Council are to • Approve annual dues • Set CPE requirements • Authorize member ballots and proposed bylaw changes • Designate senior committees

Council members are responsible to • Remain well-informed • Make decisions as a trustee of the profession • Be loyal to the organization

• Present positions adopted by Council • Inform Institute’s leadership and Council of members’ needs and concerns • Publicize the value and work of the organization • Focus on Council’s role as policy setters In an effort to publicize the work of the organization and present positions adopted by Council, we are publishing the full agenda on page 16 as well as making available all presentations (www.uacpa.org/council) from the meeting.

Our job as Council representatives is to communicate concerns and important information between the local and national level.

One of Council’s main responsibilities is to vote, and these are items that were voted on at this meeting: 1.

Approval of the May 2018 Council Meeting Minutes

2.

Approval of four Council member resignations and replacements

3.

Member-presented resolution on the May 2018 vote regarding opening up the Accredited in Business Valuation (ABV) credential to Other Qualified Professionals (OQP)

Probably the biggest event of Fall Council was the discussion and vote related to a May Council vote regarding opening up the ABV credential to those not licensed as CPAs. A panel of two members in favor of the change, two members opposed to the change, and the chair of the National Accreditation Commission were present. There was a motion brought forth by one of the members opposed to the change and, per the AICPA bylaws, that motion was voted on by Council the journal entry | January 2019

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AICPA Council Update members only. The motion did not pass, which, I believe, was because the motion was poorly written and opened the door to survey members and have the majority decision become the decision adopted by Council. If it had been a motion with a clear vote one way or the other by Council, it might have passed. It was a civil discussion and we saw more governance and transparency from the AICPA than we have before.

AICPA FALL COUNCIL 2018 SUNDAY, OCT. 21 2:00 — Welcome, Opening Remarks and Official Matters 2:30 — Presentation of the Gold Medal Award of Distinction 2:45 — Political Guest Speaker

There is always talk about the future of the profession, services we will provide and ways CPAs and CPA firms will bring in revenue. Barry Melancon, CPA, CGMA and AICPA CEO, shared some common themes from previous meetings: Cloud, Big data and analytics, Artificial intelligence, and Blockchain. He also introduced three key competencies of the profession that are core to our success: trust, talent, and forging the path.

4:00 — Enhancing Audit Quality

There is always an open forum where the CEO and current chair take questions from the audience. There were three questions and topics discussed of interest.

2:15 — Engaging Practitioners/Professors to Enrich CPA Pipeline

1. What would you say to someone majoring in accounting?

MONDAY, OCT. 22 9:05 — Go Beyond: An Update on the Profession and Q&A 10:50 — Open Forum 11:20 — Update from NASBA 11:35 -— Lessons Learned from 10 Years of Leadership Academy 1:25 — CPA Licensure: Conversation on the Current Environment 3:45— Global Business Guest Speaker TUESDAY, OCT. 23 8:35 — Update on the AICPA 8:50 — Supporting Technology Driven Transformation for Firms

2. Specialized credentials vs. non-CPA credentials.

9:20 — Increasing Member Value for Next Generations with

3. CGMA in the United States.

10:50 — Report on Finance and Operations

The AICPA's Leadership Academy has been operating for 10 years and there was a discussion about lessons learned and opportunities for improvement. The Leadership Academy has developed many current leaders and Council members within the AICPA, including a member of the Board of Directors.

Attacks on professional licensing at the state and national level are still occurring and this has been shared at many UACPA events. Know that the AICPA is aware of this and is providing resources to help in the fight and is leading the charge where they can. Please be on the lookout for other professions in Utah and how we can collaborate with them or their member organizations to help in the fight.

Data analytics is a big concern for the CPA pipeline.

Educators do not have the skills to teach data analytics — the AICPA is working to provide resources to current professionals and academia to improve this critical skill.

The CPA Exam is now available at testing centers in Japan, Middle East, Brazil, England, Germany, Ireland, and Scotland.

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4:30 — ABV Panel and Discussion

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Table Tops 11:20 — Benevolent Fund Update 11:40 — Nominations Committee Election 11:45 — Closing Comments by the Chair of the Board

There are international conferences now occurring, including SEC conferences. There was not a home for accountants internationally and they love the resources and guidance they receive from the AICPA (Association). The resources produced as part of the CGMA program and designation are quality resources helping professionals in the managerial accounting realm where the AICPA (Institute) has really focused on public practice traditionally.

CPA.com is working on a dynamic audit system and claims that the next five to ten years will be the best time ever to be an auditor. There will be a decline in transactions and a growth in CPAs being trusted advisors. So while automation and technology will make the audit and other traditional CPA services less manpower intensive, trusted advisors who can interpret results and implement solutions are and will be critically necessary. ■

Go Beyond Disruption: The Future of Finance Provided by CGMa

W

e have entered the fourth industrial revolution — a period of innovation and acceleration expected to fundamentally alter how we live, work and relate to one another. It will, according to the World Economic Forum, drive transformation “unlike anything humankind has experienced before.”

It’s already having significant implications for business, where the speed of disruption driven by technologies like cloud computing, robotic process automation (RPA), artificial intelligence and Blockchain are forcing wholesale reinvention of business models and functions.

Nowhere is that more pronounced than in the finance function, which has to evolve at pace with the transformational change. For finance professionals, this means becoming adaptive learners constantly acquiring new skills. They will need to learn, unlearn and relearn in order to meet the demands of our new digital world. Lifelong learning and professional development will be critical for their future success.

That’s why the Association of International CPAs (Association), the unified voice of the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA), undertook a year-long research project to better understand the changing finance function and the skills and competencies professionals need to evolve.

“The digital transformation of finance brings enormous opportunity,” said Ash Noah, CPA, CGMA, VP of CGMA External Relations at the Association. “With technology automating many routine processes and reporting, finance can focus on data analysis and producing the insights that drive business solutions. This is elevating the role of finance as a trusted partner to the business.”

The Association’s future of finance research project shares insights from interviews and roundtables with more than 800 business leaders and academics across 34 countries, as well as a global survey of nearly 5,000 finance professionals. From the research, four major themes emerged: 1. Changing competencies and mindsets: In the finance function of the future, the technical capabilities of robotics and algorithms combine with the creativity and empathy of human accountants. While competencies are still very important for the finance professional, it’s a growth mindset that makes the greatest difference in the working environment.

2. The changing shape of the finance function: As expectations and skills evolve, the shape of the finance function migrates from a traditional hierarchical triangle to a structure where expert teams collaborate as equals to achieve shared corporate objectives. the journal entry | January 2019

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Go Beyond Disruption 3. Changing technology and finance: Advancements in technology will allow organizations, and in particular the finance function, to do more than they’ve ever done before. However, in order to capitalize on these technologies, the competencies of finance professionals will need to evolve.

4. The changing role and mandate of finance: The finance function has a mandate to go beyond its core accounting role. This changing mandate doesn’t discard core accounting; it’s still an essential foundation of the finance function. However, enabled by new technologies, the function is now capable of assessing a broader range of information and becoming a more influential player within an organization.

The Association has issued four reports on these themes, available for download at www.cgma.org/resources/future-offinance. These reports provide important insight for members in business and industry and are equally beneficial for those in public practice. Members can use these reports to gain valuable perspective on the changing role of finance and what

YOU’VE GOT THE DESIRE. NOW GET THE DESIGNATION.

this means for them. The reports will also help CPAs drive a conversation with their clients or organizations on how to best prepare for the future.

“The emerging themes from our future of finance research represent horizon-scanning exercises for the finance profession,” said Dr. Noel Tagoe, EVP of Management Accounting, Research and Curricula at the Association. “By sharing the findings, we’re aiming to provide and empower finance professionals with new competencies and growth mindsets to help their organizations create and preserve value and to widen the remit of finance.”

Insights gleaned from the research project will also inform an update to the Chartered Global Management Accountant (CGMA) syllabus and learning pathway. Through the CGMA Finance Leadership Program, finance professionals develop the critical technical, business, leadership and communications skills required to be successful in business today. ■ To learn more about the Association’s Future of Finance research project, visit cgma.org/resources/future-of-finance.

INTRODUCING THE CGMA PROGRAM DISCOVER A LIFELONG PROFESSIONAL LEARNING JOURNEY AT CGMA.org/Program ®

CGMA, CHARTERED GLOBAL MANAGEMENT ACCOUNTANT, and the CGMA logo are trademarks of the Association of International Certified Professional Accountants. These trademarks are registered in the United States and in other countries. 18652-326

– CGMA Program - State Society Ad_HALF 2.indd 4 journal entry | January 2019 1818652 the

11/13/15 10:51 AM

Fraud Lessons Learned the Hard Way What we can learn from the defalcation in dixon

By Ron Klein, J.D., CFE

C

laims caused by fraud and defalcation (or embezzlement) have long been among the most significant types of professional liability claims in terms of severity, as

indicated by the chart below.

This trend does not appear to be changing any time soon. A prime example is an embezzlement discovered in 2012, involving the city

of Dixon, Ill., where the municipal comptroller and treasurer pleaded guilty to siphoning public money for several years into a secret bank account.

When the embezzlement was discovered, it appeared to be more than $30 million, stolen over a six-year period. But by the time the comptroller was indicted, the figure had grown to $53 million embezzled since 1990. The scheme was discovered when a co-worker was filling in during a vacation and stumbled across the secret account and multiple six-figure transactions, according to prosecutors.

Dixon, a city with an annual budget of about $20 million, was especially vulnerable because the officer had control over all of the city’s finances

the journal entry | January 2019

19

Fraud Lessons Learned the Hard Way for some 30 years, according to the Associated Press.

Trying to explain how that much money could disappear unnoticed, the mayor of Dixon said the town had struggled financially with reduced revenues and cash flow problems, made worse by the state of Ill. being behind on income tax disbursements. That provided plausible reasons to think the extra hole in the budget was related to those financial problems, he said.

Embezzlements tend to occur when there are gaps in organizations’ internal control systems, and those gaps can be created by personnel layoffs or reduced expenditures on fraud prevention measures. Embezzlements can then further deplete an organization’s resources and fraud prevention measures, fostering a self-perpetuating cycle of theft.

embezzlement in order to help clients avoid such thefts.

Advice to clients about their exposures is best provided in a letter that: warns about the general risks; suggests steps, such as the preceding, that clients can take to reduce the risks; and offers annual CPA services to help address the risks.

An informed client is better able to avoid defalcation, but if a theft is later uncovered, the CPA's letter documents evidence of the warning. Clients should also be notified of "loose ends" such as sloppy bookkeeping and late bank reconciliations.

The good news for accountants who are expected to prevent such losses is that there are effective techniques for An informed client is better able to avoid defalcation, but managing fraud risks. For instance, some of the first rules if a theft is later uncovered, the CPA’s letter documents evidence of the warning. Clients should also be notified of effective internal controls are as follows: of “loose ends” such as sloppy bookkeeping and late bank reconciliations.

• Separate the financial duties among different staff members to provide potential checks and balances Another effective documentation technique can be utilized on each member. Giving one person unquestioned when offering clients bank reconciliation services, which authority over an entire entity’s financial functions are prone to fraud claims. The technique involves the CPA makes it even more vulnerable to fraud. offering two options: • Require employees to take a vacation for at least one week every year and use that time to have the books reviewed for discrepancies.

• Do not be predictable in audit procedures, adjust to client schedules, or announce the timing, location or nature of the procedures.

• Make it harder for anyone to determine the mechanisms used by the auditor in detecting fraud.

• Adopt a tip hotline or complaint-reporting mechanism that will enable employees, vendors, customers, or outside sources to report suspected fraud anonymously or without fear of reprisal.

• Provide employees with regular and recurring training about the detrimental aspects of fraud, so they will be more likely to aid in controlling it.

CPAs should advise and warn clients of their exposures to 20

the journal entry | January 2019

• the first option comes with additional fraud deterrent services that include added protection against embezzlements if the client agrees to specific activities in cooperation with the CPA. • the second option offers just the traditional, limited scope.

This two-tiered choice can be presented in a discussion with the client and in an addendum to the engagement letter for bank reconciliation services. The choice enables the client to make an informed decision between the two services.

Automation has also become a major factor in many embezzlement cases. The duties of receiving and disbursing funds and reconciling the bank accounts are often all handled by one trusted employee who uses an accounting software program to stay on top of a lot of financial activity.

Fraud Lessons Learned the Hard Way Some small business owners believe that the accounting program contains safeguards to help protect the business from fraud, but the program enables one person to control all of the business’s funds and bank accounts, thereby facilitating the perpetration of fraud. Accordingly, the separation of financial duties among different staff members is still an important risk management technique even when accounting software is used.

Other techniques for managing risks pertaining to automation include:

records, including an identification of those who made the changes.

• Changes to vendor master file records should require supporting documentation, supervisory approval, and independent review.

Fraud prevention techniques are not difficult to implement, and the costs of implementing them are much less expensive than the costs of undetected fraud. ■

• Have an accounting software program expert, preferably a CPA, do the initial set-up of the program to make sure that helpful features are turned on and unhelpful features are turned off.

• Access to personnel and vendor master file records should be password protected and restricted by job function.

Ron Klein, J.D., CFE is part of risk management counsel with CAMICO. He has been with CAMICO since its inception in 1986 and managed the claims department for 20 years.

• Computer systems should create an audit trail of all changes made to the vendor master file

Imagine... a chair without a desk Delivering Results - One Practice At a time Ryan Pannell www.APS.net

800-397-0249 Ryan@APS.net

the journal entry | January 2019

21

Save Yourself with Software Combine security methods to protect yourself against hackers

By Alice Tsai, CPA

T

he cyber environment is evolving with rapidly changing technology. While legacy threats still exist, new threats, such as computer hacking on the web/internet, have emerged in news headlines to raise our awareness for more computer protection.

Computer hacking enables an unauthorized user to exploit security weaknesses in a computer or network system.

For example, hackers modify computer software by using phishing attacks or email spams on the internet to gather company/personal information for their financial or political gain. The traditional antivirus and anti-malware software are necessary but may be insufficient to protect users online.

This overview provides examples of security software and a potential security software combination to enhance the protection and performance of your own personal computer using: 1)An up-to-date “traditional” antivirus or internet antimalware software and 2) Microsoft Windows 10 (Windows 10 converted from Windows 8.x).

For discussion purposes, we use three perspectives in the Venn diagram to illustrate: Most security software companies offer 2 of the 3 types of security software (I, II, and III) in the Venn diagram.

3 Types of Security Applications for Your PC

I. “TRADITIONAL” ANTIVIRUS OR ANTI-MALWARE APPLICATIONS

II. “SPECIALIZED” SECURITY APPLICATIONS YOUR PC

III. PERFORMANCE APPLICATIONS

Security Software - Examples

• Piriform-CCleaner • Windows cleaning • Avast tools • Symantec Potential Security Software Combinations • Heidi-Eraser Norton • Google Chrome • McAfee I. AN UP-TO-DATE

II. "Specialized" “TRADITIONAL” ANTIVIRUS INTERNET ANTISecurityOR MALWARE SOFTWARE SUCH AS AVAST, Software NORTON, ETC.

• Malwarebytes • McAfee-Cloud AV 22

the journal entry | January 2019

III. Performance Software

I. "Traditional" Antivirus & Anti-malware Software

III. PLUS A PERFORMANCE SOFTWARE SUCH AS CCLEANER, ERASER, WINDOWS 10 TOOLS, ETC.

YOUR PC

II. PLUS A “SPECIALIZED” SECURITY PROGRAM SUCH AS MALWAREBYTES, MCAFEE, CLOUD AV, ETC.

Save Yourself with Software

The Business • Example (I, III): In July 2017, Avast purchased Piriform, who developed the CCleaner software.

This purchase demonstrates that Avast has expanded into a new area - by combining the capabilities of its “traditional” antivirus/anti-malware software and that of the CCleaner, a “system optimization software.” or performance “tune-up” software.

• Example (I, II): Symantec offers Norton Antivirus software to scan and remove “infectious malware” (or traditional viruses and worms), and Norton Internet Security software to scan and remove “web malware” or threats.

TABLE 1 THREATS VERSUS SECURITY SOFTWARE SECURITY SOFTWARE[2] Avast

THREATS 1 Viruses - are a specific type of malware that: Replicate itself & spread old or known threats Evolve & spread recent or known threats

Symantec McAfee "Traditional" Antivirus or "Traditional" Anti-malware

x

x

x

x

x

x

3 Zero-day (0-day) exploit (on the web) is a digital attack that takes advantage of a vulnerability (known or unknown to the victim company) to install malware on a computer

x

x

x

4 Computer hacking on the web is to alter or steal personal and financial data, such as credit card, banking data, PINs passwords & Identity (ID) via social network accounts, such as Facebook, Twitter & Skype.

x

X

x

2 Malware - is broader term that includes: viruses , worms, Trojans, backdoors, spyware, nagware, adware, bots, rootkits & keyloggers

5 Advanced Persistent Threats[ (APTs) [5] are attacks by organized cyber criminal groups, who use sophisticated intrusion techniques to commit espionages for nation-state or industrial-corporate sponsors, These foreign or industrial exploits could cause victims unpredictable financial or political loss or problematic access to classified government or valuable private/personal information..

Malwarebytes "Specialized" Security Software x Do not focus on old/legacy threats & common viruses x Aim at the forefront in advanced anti-malware x Targets specifically newest changing web malware & other web threats x

Offer anti-exploit & fingerprint capabilities in a security software

• Example (I, II): McAfee Antivirus and McAfee Internet NOTE: For blanks in the table, we found no definitive information about the security software Security software protect users from The security software, developed by threats of “viruses and malware used in zero-day exploits. including Trojans, worms, spyware, Avast, Symantec-Norton and McAfee, appear to have similar or comparable rootkits, and keyloggers.”

Types of Threats security capabilities. However, each of these “traditional” antivirus or 1) “Viruses” are a specific type of Types of Security anti-malware software have their own malware (or malicious software) in Software strengths and weaknesses and have programing code/language that: evolved and improved to fight not just The antivirus industry generally accept (a) Replicate and spreads old or viruses, a marketing misnomer since that most vendors’ signature-based known threats the 1990s. (antivirus) protection are identically (b) Evolve and spread recent or effective. known threats, such as “Sality” and Malwarebytes offers “specialized” “Virut.” security software, which is designed In contrast, effectiveness of detection to complement and be compatible rates and protection differ widely 2) “Malware” is a broad term that with the “traditional” antivirus and from 20% to 68% for the newest and stands for a variety of malicious anti-malware software. Malwarebytes’ advanced threats, [3] such as zerosoftware, including viruses, “specialized” software specifically day exploits (see details below). The (infectious) worms, Trojans, “targets the new malware that protection against zero-day exploits backdoors, spyware, nagware, constantly changes and poses the is where most security software adware, bots, (concealed) rootkits, biggest threat” directly from the web. companies strive to compete. and (web) keyloggers.

An example of the newer/unknown or more advanced/dangerous malware is

the journal entry | January 2019

23

Save Yourself with Software 3) The Zero-day exploit is a digital attack launched by the attacker at a zero day to take advantage of a known or unknown “hole” or vulnerability. Until the vulnerability is fixed, the attacker can install a malicious software such as driveby exploits, ransomware, or fake antivirus software on a targeted computer.

• For an already known vulnerability in a zero-day discovery (by victims), finding a solution is relatively easier and faster — using classic methods to apply a patch to the affected software, such as in a web browser or in an email application.

• For the more critical unknown vulnerability, finding a solution or an approximate solution requires more time and technical expertise to do sophisticated heuristics analysis — using artificial intelligence (based on machine learning) and mathematical optimization.

TABLE 2 PROTECTION CAPABILITIES AND SECURITY SOFTWARE SECURITY SOFTWARE [6]

1 Smart Scan

Threat Scan

2 Malware protection

PROTECTION CAPABILITIES Includes a full virus scan to detect & remove threats in browsers, add-ons, network.

Scan & delete unwanted browsing history and cookies.

Avast Premier "Traditional" Anti-malware

Malwarebytes Premium "Specialized" Security Software

x

x Do not focus on legacy & common viruses x

x

x

Includes scan of places where malware tends to hide, including memory, startup, registry, & file system Blocks in real-time malware infections, such as from unsafe email attachments and downloads.

Detects & removes newest, constantly-changing web malware that hide in memory, startup, registry, & file systems.

3 Web protection

Protects users from connecting to compromised, malicious, or fake websites.

Protects online identity (privacy) & online banking.

x

x Target specifically the "newest & changing" x

4 Network protection

Scans & detects home or public network for vulnerabilities; quarantines suspicious activities for selective removal

x

x

5 Ransom protection

Prevents ransomware from stealing & locking (encrypting) users’ valuable files for ransom

x

x

6 Potential

Detects & flags for users; Potentially Unwanted Programs (PUPs) Potentially Unwanted Modifications (PUMs)

x

x x

Detects & removes spyware; blocks identity theft

x

x

x Focus on mostly "knowns"

x Specialize on behavior of "unknowns"

threat protection

7 Exploit protection

Prevents known or unknown (new) vulnerability exploits, such as known or unknown (new) zero-day attacks

NOTE: For blanks in the table, we found no definitive information about the security software

Security Software to Enhance Performance CCleaner, an independently developed utility program from Avast, is a useful, comprehensive system cleaner-optimizer designed to: 1) Clean and delete temporary internet files — where malicious programs/code tend to hide or reside. Cleaning/deleting these unwanted files, such as browsing history and cookies to help free up hard disk space and thus

24

the journal entry | January 2019

improve computer performance.

2) Clean temporary or potentially unwanted files left behind by programs — such as Microsoft Edge, Internet Explorer, Google Chrome, Windows Media Player, and Adobe Flash Player; 3) Clean Windows registry to correct missing references, unused registration entries, etc.

4) Remove system items — such

as Windows log files, memory dumps, and recycle bin.

Potential Security Software Combination Instead of depending on one type of or a single security software, experts recommend users explore a “layered” (or “layers”) approach to help prevent, detect and remove viruses and malware and thus also help protect the computer.

Save Yourself with Software In general, depending on the software, running two or more security programs concurrently in real-time may cause interferences and conflicts among software or degrade PC performance.

However, Microsoft and other companies have created and optimized server-based (enterprise-based) security software that can adapt and run “multi-scanning” of multiple security software concurrently. Also, cloud-based security companies, such as McAfee Cloud AV have used scanning technology similar to multi- or parallel-scanning.

The following Venn diagram and Table 3 illustrate the “layered” approach. In conclusion, using this approach, users can combine the “traditional” antivirus or antimalware with a “specialized” security software and a performance software. With further research and proper selection of compatible security software, users can enhance protection and performance for PCs. ■

3 Types of Security Applications for Your PC

I. “TRADITIONAL” ANTIVIRUS OR ANTI-MALWARE APPLICATIONS

II. “SPECIALIZED” SECURITY APPLICATIONS YOUR PC

III. PERFORMANCE APPLICATIONS

TABLE 3 OPERATIONAL STEPS •The following I, II, and III represent the 3 types of security software • “On access” means run a software automatically in real-time • “On demand” means run a software manually and periodically

Alice Tsai, CPA (DePaul University, Chicago) is a frequent contributor to The Journal Entry. She audited for the U.S. Government (SEC and GAO), for-profit and nonprofit companies and has taught as an adjunct faculty in accounting and auditing.

Type of Security Software

Operation Mode

I II - On demand, if I & II are incompatible II - On access, if I & II are compatible III

On access

On demand Combinations Potential Security Software On demand

Example When I & II Are Incompatible I. AN UP-TO-DATE III. PLUS A PERFORMANCE TurnSOFTWARE off software I “TRADITIONAL” ANTIVIRUS SUCH AS OR INTERNET ANTIOn access II CCLEANER, ERASER, MALWARE WINDOWS 10 TOOLS, ETC. On demand III SOFTWARE SUCH AS AVAST, Reset software to “on access” I NORTON, ETC. YOURReset software to “on demand” II

PC

II. PLUS A “SPECIALIZED” SECURITY PROGRAM SUCH AS MALWAREBYTES, MCAFEE, CLOUD AV, ETC.

VOLUNTEER

Give back to your profession while advancing your career.

We are looking for members to help with our committees.

See the complete list of committees at uacpa.org/volunteer

the journal entry | January 2019

25

Closing the Gaap — Women in Accounting

Katrina Baird, CPA Interview By Kathryn Fargam, CPA

K

atrina Baird is the site controller for Moog Medical, a subsidiary of Moog, Inc. "This is my first stint out of public accounting," she says. "It’s been a challenge transitioning into industry, but I have learned so much in the few months I’ve been here." Katrina graduated with a BA in Accounting from the University of Utah, and an MBA from Westminster College. Katrina's husband, Tony, is also a controller. "We geek out over spreadsheets," she says. They have two kids, Max (5) and Audrey (2).

"They are a handful, and so much fun."

What led you to a career as a CPA? I started college at SUU for their psychology program. When I realized I didn’t want to be a psychologist, I switched to “business” for lack of better options. I took my first accounting class and really enjoyed it. I then remembered my uncle was an accountant and thought, “He seems to like his career. This could work out for me.”

26

the journal entry | January 2019

What path did your career take in order for you to hold the position you are in today? I’ve jumped around a few public accounting firms. I loved them, but ultimately left because I didn’t feel like being a partner was what I wanted. The company I work for reached out to me, and it felt like a good time to make a move. Public accounting definitely helped strengthen my knowledge of GAAP accounting. Working with a variety of clients helped me learn how to communicate and the importance of finances to individuals who are not financially minded.

I work with all of the department heads and help them understand their costs.

What do you enjoy doing outside of work? I love reading, cooking/baking, playing with my kids, and watching movies.

What do you enjoy most about your profession?

Using my brain every day to think through problems.

Closing the GAAP — Women in Accounting What advice would you give other female professionals? Stand up for yourself. No one cares about your career more than you do. If you want something, it’s OK to vocalize it and tell your boss what you want.

Count Me In

Do you have a mentor? How have mentors helped you in your career? I have female and male mentors.

Most in an “unofficial” capacity. I’ve been lucky enough to have mentors inside my organizations and outside my organizations. My mentors talked me through situations that have made me feel uncomfortable at work. They have also talked to me about my career path and helped me make career decisions when I’ve been looking to make a move. I don’t think I’d be where I am today without them. ■

Kathryn Fargam, CPA, is a Senior Audit Manager at Tanner LLC. She graduated from the MAcc program at Utah State University in 2009.

Kathryn can be reached at kfargam@tannerco.com.

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27

Meet the Executive Board

Your Name Is On the Ballot, What Are You Running For? Matt Klein President

Jay Niederhauser Vice President

"I would be running for City Council – I

"If my name were on the ballot for any

think that is the grassroots of government and gives you a great chance to learn about representing people and how a government operates and how to get things done."

election, I would be running for cover!

Although I want to serve and give back, it would be hard to see myself running for any political office. I have no political experience or aspirations and would not feel qualified to run."

Jason Tomlinson Treasurer

Tyler Hall Member-at-Large

"Vice-something or council position. A 'behind-the-scenes,' supporting role."

"I understand that every issue has two sides. I would listen to both sides before making decisions. With the Utah economy booming, I would lower/eliminate taxes.

The first tax to go would be the personal property tax. I would fight for freedom from government for the people. My focus would be on incentivizing freedom."

Amy Anholt ProNet Council

Tom Colligan Member-at-Large

"All voters should feel that their priorities will be well represented by their legislator.

I’d do my best to listen and represent to the best of my ability – and, be ready to stand up and be heard. Ultimately, I’d hope to be fair, respectful and strong in the face of our, at times, challenging government."

"I’d have to stick with my strengths. I don’t know politics, but I do know auditing. With that, I would take my talents to run for State Auditor."

Susan Speirs CEO "I’ll take one for the profession. Knowing that many CPAs are wrapping up year end and preparing for audits and of course the never-ending barrage of tax returns I’ll take a run for the Utah Senate. Of course, the timing would have to be right."

Gavin Hutchinson Immediate Past President "If my name appeared on a ballot I hope that I would be running to be the moderator of an annual town meeting.

This position is basically the emcee of the annual town meetings for small towns and requires only about 3 hours of work for the year with very minimal preparations. ”

Not pictured: Monica Teuscher Gardner (President elect), Brandon Allfrey (AICPA Council Rep) 28

the journal entry | January 2019

Meet the UACPA Staff Your Name Is On the Ballot, What Are You Running For?

Board Bullets

News from the UACPA Board Here is a glance at what has been going on at the UACPA recently.

•

e Nominations Committee presented Th nominees for the April 2020 fiscal year. All nominees were discussed and approved.

•

aynie and Co. presented the annual audit for H the year ended March 31, 2018. The financial statements were consolidated with the PAC and Foundation. No significant issues were noted in the audit.

•

Preliminary approval was given to a reserve policy for the Association. Minor edits will be made before ratification.

•

Dan Griffiths, AICPA board liaison, presented an AICPA update. AICPA initiatives, including strengthening peer review, data analytics, tax certifications and providing certifications on emerging technologies were discussed. AICPA Fall Council items such as the ABV credential vote and the direction of the AICPA and the profession were also discussed.

1

•

opics for the January Leadership Council and T skeletal format were discussed. Spending time with our Association leaders regarding state issues is of importance for the direction of the UACPA.

April Deneault CPE Manager "President."

Braden Thompson Membership Development Coordinator "I think I would enjoy being a small-town mayor like my favorite political figure, Ben Wyatt. But I would skip the winter sports complex and keep the town budget in the black. ."

Amy Spencer Marketing & Communications Manager "I would prefer to be appointed to a position in government because I was deemed a good fit, but if I was forced to put my name on a ballot, I would opt for City Council. It seems like a good place to be involved in working with the small, but important details of the bigger picture."

Tom Horn Financial Director "I would run for dog catcher. The dogs would love me as I would work on finding the owner rather than turn them into the pound. I honestly couldn’t handle the politics of any other position as I like to get things accomplished in a timely manner.

We all know that doesn’t happen in the political environment." the journal entry | January 2019

29

CONNECT CHAPTER WITH YOUR

Get to know the CPAs in your area by attending a meeting at one of the eight chapters.

Cache Valley | Color Country | Cedar Breaks | Downtown | Mountain | Northern | Southern | Uintah Basin

Find Your next meeting at uacpa.org/chapter 30

the journal entry | January 2019

MEet a uacpa member

Five Minutes with Chesley Erickson, CPA Chesley Erickson, CPA was born and raised in Richfield, Utah. He graduated in 1974 as an accounting major from the University of Utah. After working for Touche Ross & Co. for three years, Chesley joined F. Charles Huber & Associates which became Huber, Erickson & Bowman, CPAs. He continues to work at the firm in Salt Lake City and is a managing partner.

He is currently the chair of the Utah CPA PAC. He and his wife have three daughters and twin sons.

What led you to become a CPA? A high school teacher in bookkeeping got me interested in accounting and I followed up with that interest in college.

What led you to become the chair of the Utah CPA PAC? A fellow CPA/ Attorney, Brad Bowen, asked me if I would be interested in becoming

involved, and I thought the political side of our business would be interesting. It has become more interesting as more things that can change our business come up with the legislature.

Examples are non-compete agreements, sales tax on services and licensing matters.

What would surprise people to know about you? I play in a rock band, play guitar and sing and have done so since the 1960s.

What do you like to do outside of work? I am the President of Oakridge Country Club and golf is a big part of my life. My wife is the Women’s Club Champion and my boys play golf. I coach baseball for the boy’s little league team and enjoy all sports, especially University of Utah athletics. We like to travel, especially to Hawaii.

What are some of your personal and professional goals? My personal goals have revolved around becoming a better person, someone that treats others with a great deal of respect. I would love to become more physically fit. Professionally, I want my firm to carry on the 40-plus years of service to our community and continue to be thought of as a great firm in Utah. I hope to add continued prestige to the CPA profession.

What advice do you live by?

Never make a big decision during a busy season or shortly thereafter. Serve the client first, the money will follow if you do a good job. Set goals and objectives and work hard to meet them.

Hire good people when you have the opportunity, they are the most important asset you can have. ■ the journal entry | January 2019

31

2018 Inauguration & Awards Congratulations to outstanding UACPA members and students

T

he Annual Inauguration & Awards Banquet, sponsored by The Leverich Family, Sundance Institute and Squire, was held Thursday, Sept. 27 at Noah's. Martin Frey delivered the keynote address to award winners, 100% member firms, newly licensed CPAs and guests. Award winners were selected by nominations through the UACPA website and by members of the Nominations Committee. The 2018 award recipients honored include the following:

Distinguished Service Marty D. Van Wagoner

With more than 30 years of experience in public accounting, Marty has served as UACPA president and council member of the AICPA. He is the professionalin-Residence Faculty at Utah Valley University and managing partner of Mountainside Accounting & Consulting, adjunct faculty in the MBA program of Roseman University, and teaches CPE courses across the country for various CPE providers. He has recently taken over as the author for the Wolters Kluwer CCH Accounting for Income Taxes and currently serves on four nonprofit boards. Marty received his Bachelors and Masters degrees in accounting from the University of Utah.

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the journal entry | January 2019

Jeannie Patton Lifetime Service Award Larry Deppe

The awards task force voted to present this honor posthumously to Dr. Deppe who passed away in June.

Larry A. Deppe, Ph. D., CPA, CMA and professor Emeritus at Weber State University, was professor of accounting at Weber State University for 20 years where he also served as chair of the department. Larry received his Bachelor's and Master's in accounting from Brigham Young University and a Ph.D. from University of Utah.

He published papers in numerous publications and wrote ancillary materials for four textbooks. Prior to entering academia, Larry worked as a supervising senior accountant for Arthur Young and Company. He served as Chair of the Utah State Board of Accountancy from 1997 to 2005.

Outstanding CPA in Business & Management Raymond H. Langhaim

Ray is the CFO of inContact and has previously held exective positions at Ivanti, Boart Longyear, Semiconductor and Intuit. Ray has served on the UACPA's Winter Conference task force, Business and Management Council and graduated from Leadership Academy. He was captain of the football team at Fresno State University and received the Carl Ilg award for being the school's top scholar-athlete. He

is currently the head coach for the girl's lacrosse program at American Fork High School.

Outstanding CPA in Public Practice Ray B. Bartholomew

Ray was on the path to be a math teacher, when the business teacher at Springville High School introduced him to accounting. After earning a Master of Accountancy from BYU, Ray started working at Squire where he has been for 35 years. Ray has helped build Squire into Utah's premier local government audit practice and has assisted governments in applying more than 90 new accounting and reporting standards. Ray received his Bacherlor's and Masters from Brigham Young University.

Outstanding CPA in Nonprofit & Government Hollie S. Andrus

Hollie has worked in the office of the State Auditor since 1999.

She surpervises the audits of the University of Utah and coordinates the audit of the State of Utah's Comprehensive Annual Financial Report. Prior to working for the Office of the State Auditor, Hollie worked for a regional CPA firm based in San Francisco, Calif. She received her Bachelor's and Master's of Accountancy degrees from Brigham Young University. Hollie is a past president for the UACPA.

Outstanding Leadership Council Member Robert Michael Anderson

Rob's fifth grade teacher told him he was not good enough to attend and graduate from college. Thirty years later, Rob is a CPA with a Masters in Accounting from the University of Utah. He left public accounting after seven years and currently is the CFO for Bedrock Quartz Surfaces, LLC. Rob has been involved with the University of Utah's Smart Start program, UVU Accounting Advisory Board, the Utah Republican Party, the Salt Lake County Republican party, the Boy Scouts of America, Herriman High's Mountain Biking Team and various UACPA committees.

Outstanding Educator Loisanne Kattelman

Loisanne joined the faculty of Weber State University in 1998 and teaches in the School of Accounting and Taxation at the Goddard School of Business and Economics.

She serves as the Faculty Advisor for both Beta Alpha Psi and the Volunteer Income Tax Assistance program (VITA).

Loisanne started her accounting career at an international public accounting firm and continued her connection to the profession by providing consulting services to privately owned corporations.

Rising Star Steve W. Hurd

Steve is an Audit Manager at Haynie & Company and has more than six years of public accounting experience. He graduated from Utah State University with a Bachlor's and Master's in Accountancy. Steve currently serves on the UACPA ProNet Council and volunteers with the Boy Scouts of America and Junior Achievement of Utah. the journal entry | January 2019

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Lifetime Member Joe Perry Leverich

The founder and president of the Leverich Group has been a wellknown community leader. Joe has served as a member of Associated General Contractors of Utah, the Salvation Army, Salt Lake County Mental Health Advisory Board, YMCA, Make-A-Wish Foundation and Utah Central Credit Union. He was a columnist for The Enterprise, writing a monthly column for five years. He served on the Accounting Faculty Advisory Board — David Eccles School of Business, University of Utah and on the board of the Utah Division of Professional Licensing from 1989-1995.

Lifetime Member Alice S. Tsai

Alice received her MBA from DePaul University in Chicago. She audited for the U.S. Government (SEC and GAO), for-profit and non-profit companies and taught as an adjunct faculty in accounting and auditing in Salt Lake City and Washington, D.C. She has served on the UACPA's technology committee and is a frequent contributor of articles to The Journal Entry.

Woman to Watch: Experienced Leader Jonyce J. Bullock

Jonyce started at Squire in 1999 and recently took over as Squire's Managing Partner in January 2018 and now as CEO. Jonyce has implemented and currently leads Squire's Women's leadership development program which has recently been recognized as part of the AICPAs women's initative firm pilot program successes. She currently serves on advisory boards for BYU, University of Utah and UVU. She is a past president of the UACPA and currently serves on the AICPA Women's Executive Initiatives Committee.

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Woman to Watch: Experienced Leader Jill Briggs

Jill is a tax director at PwC and has more than 22 years of experience in public accounting. She received an Honors Bachelor's degree in Accounting and a Master of Accountancy with an emphasis in taxation from the University of Utah. She has contined her involvement with the U and is currently on the board of their Business Alumni Association. She has served on boards of nonprofits including the National Association of Women Business Owners, Cancer Wellness House and the Primary Children's Medical Center Planned Gifts Committee and Festival of Trees in addition to the UACPA as Treasurer.

Woman to Watch: Emerging Leader Michelle L. Anderson

With a career spanning 23 years, Michelle is the Director of Finance and Principle Accounting Officer for Sundance Institute. She is the secretary of the UACPA's Mountain Chapter, Treasurer for Park City Swimming, an Official for USA Swimming and previously the Finance Chair for the Shepherd of the Mountains Lutheran Church Building Expansion Committee. She earned her bachelor's at the University of Colorado in Boulder and her master's at Westminster College.

Woman to Watch: Emerging Leader Lauren Van Os Gowen

After graduating with her bachelor's and master's from Westminster College, Lauren joined EnergySolutions as a tax supervisor.

She is involved with the Institute of Management Accountants (IMA) where she has served as president, and UACPA and where she is currently the young professionals liaison. She works with and mentors students as they transition into young professionals and supports women in accounting leadership efforts.

Newly Licensed CPAs Honored Chelsea Anderson, CPA David Antivilo, CPA Paul Auffant, CPA Jennifer Bagley, CPA Aaron Bartholomew, CPA Rebekah Battaglia, CPA Rebecca Beck, CPA Mitchell Bolen, CPA Bradley Byington, CPA Eric Cannon, CPA Feiya Chen, CPA Carly Christiansen, CPA Nelson Curtis, CPA Marnie Davis, CPA Jessica DeVries, CPA Joshua G. Farnsworth, CPA Trevor Bladen Frank, CPA Daniel Gillespie, CPA Ling Gregory, CPA Sherri Hansen, CPA

Andrew Higham, CPA Garry Hrechkosy, CPA Devron Johnson, CPA Kris Karkare, CPA Karen E Kenner, CPA Erin Kohler, CPA Alyssa Kohler, CPA Skyler Martinson, CPA Steve Morrill, CPA Ashley Neal, CPA Courtney Neves, CPA Kevin Newton, CPA Andrew Oestreich, CPA Lance Oldroyd, CPA Chris Oler, CPA Jason Parker, CPA Jennifer Peavler, CPA Darin Porter, CPA Theresa Richards, CPA Hannah Rios, CPA

Jeffrey Robertson, CPA Steven Rupe, CPA Jeffrey Sanchez, CPA Karl Schubert, CPA Anfissa Silva, CPA Andy Speirs, CPA Aubrey Taylor, CPA Heather Upegui, CPA Tevan Valtinson, CPA Tori Vergara, CPA Francisco Viteri, CPA Luke Vreeken, CPA Alisa Webb, CPA Clarke Wilkinson, CPA Jonathan Williams, CPA Bradley Wyatt, CPA Yang Zhang, CPA Kaylee Zupancic, CPA

Nominate someone who deserves to be recognized at the 2019 awards banquet by visiting uacpa.org/nominate

Find New Opportunities Explore job listings at uacpa.org Get your job posted for 30 days by sending the description to Amy Spencer, as@uacpa.org

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Photos, Inauguration & Awards The annual Inauguration and Awards Banquet was held Thursday, Sept. 27 at Noah's in South Jordan.

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Member Benefits

The UACPA Honors 100% Membership

AGILITY

Congratulations to the firms and businesses curerently participating in the UACPA's 100% membership program. This demonstrates their commitment to the profession, to the Association's high ethical standards and a commitment to life-long learning.

The UACPA's Affinity Partners help you get the most out of your membership Agility offers UACPA members a 10% discount on any of their ReadySuite solutions. Contact Trevor Mickelson at 720-490-4531, or Trevor.Mickelson@agilityrecovery.com.

ADP

ADP offers free payroll and free 401k services to members and affiliates. Please contact Alan Palacios at 801-956-7823 or alan.palacios@adp.com for more information.

Beehive Insurance

Groups with 2 to 100 eligible employees can participate in medical, dental, vision, telehealth and voluntary onsite programs through this plan. For more information, contact Todd Valentine, 801-743-7788 or tvalentine@beehiveinsurance.com.

National Affinity Service

Identity protection experts have you covered for $12.95 per month or $16.95 per month for a family. Visit healthwealth. fit/uacpa_infoarmor

CCH

UACPA members receive a discount on the U.S. Master Tax Guide and more. Visit cchgroup.com and use code Y3819

iTransact

PUBLIC PRACTICE • CBIZ • Cook Martin Poulson • Davis & Bott • Eide Bailly • Haynie & Company • Jones Simkins • PricewaterhouseCoopers • Savage Esplin & Radmall • Squire • Stayner Bates & Jensen • Tanner, LLC INDUSTRY • LDS Church Auditing Department • Workers Compensation Fund

iTransact, a full service payment processing company, rewards UACPA members with a residual payout program. Email Colston Robinson, c.robinson@itransact.com or call 801-951-8178.

Camico

The Mutual Insurance Company offers UACPA members a variety of benefits. To learn more, call 800-652-1772 or email inquiry@camico.com.

Office Depot

UACPA members can save up to 80% on office products, printing, technology and furniture. Visit www.officediscounts. org/uacpa to learn more.

Learn more about member benefits by talking to Amy Spencer, as@uacpa.org or calling 801.466.8022 38

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Firms with 10 or more full-time CPAs are eligible to be a part of the 100% membership program. Learn more by talking to Braden Thompson, bthompson@uacpa.org or call 801.466.8022

ContactList Accounting Issues

When UACPA members have questions about accounting issues, help is available from the UACPA Accounting Issues Committee.

Each month, a member of the committee is assigned to answer accounting questions and help you interpret the rules as they apply to your particular situation. The following members may be contacted during the months listed.

January

February

Ted Rokich 801-263-3090 trokich@fdic.gov

Mark Anderson 801-532-2200 markanderson@hayniecpas.com

IN MEMORIAM Harold John Dolato

July 19, 1929 — Oct. 20, 2018 UACPA Member since 1994

Ronald Claude Barker Sept. 28, 1927 — July 10, 2018 UACPA Member since 1956

March Mark Anderson 801-532-2200

Classified Ads

markanderson@hayniecpas.com

To place your classified advertisement and reach Utah CPAs, contact the UACPA at mail@uapca.org.

CPE Approval — Does This Qualify?

CFO Looking for Part-time Work: 30 years’ experience as a CFO looking to work about 20 hours a week on average.

Worked for both profit and non-profit organizations (especially non-profit). Experience with overseeing banking, payroll, human resources and insurance relationships. Also handled the certified audit process, government filings including tax returns etc. Comfortable working with Board of Directors in presenting various financial analysis. Salary is negotiable.

Contact Brian Sheets, bsheets53@gmail.com or 801-661-0759

When UACPA members have questions regarding CPE Approval and whether or not something may or may not qualify, they can turn to the UACPA CPE Approval Committee for answers. Each month, committee members are assigned to answer member questions related to CPE approval. Below are the members who may be contacted with your questions.

January - March Steve Avis 801-532-7800 stevea@hayniecpas.com

Tax Issues

Scott L. Robinson 801-990-5918 srobinson@tannerco.com

The Tax Issues Committee focuses on legislative and regulatory issues and does not answer technical questions. For assistance with a technical matter, please refer to the UACPA referral tool at uacpa.org. Direct questions related to legislative or regulatory issues to taxissues@uacpa.org

Utah Practice For Sale: gross revenues shown: Washington County/St. George, UT Area $146K - 50/50 Tax & Acctng. For more information, please call 1-800-397-0249 or visit www.

APS.net to see listing details and register for free email updates.

THINKING OF SELLING YOUR PRACTICE? Accounting Practice Sales is the leading marketer of accounting and tax practices in North America. We have a large pool of buyers, both individuals and firms, looking for practices now. We also have the experience to help you find the right fit for your firm, negotiate the best price and terms and get the deal done. To learn more about our risk-free and confidential services, call Ryan Pannell with The Holmes Group at 1-800-397-0249 or email Ryan@APS.net. the journal entry | January 2019

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Utah Association of CPAs

Nonprofit Org.

136 S. Main Street, Suite 510

U.S. Postage

Salt Lake City, UT 84101

PAID Salt Lake City, UT Permit No. 1996

2019 LECTURE SERIES the uacpa presents JAN. 9

JUNE 12

AUG 14

FEB 13

JULY 10

SEPT 11

199A Bruce Gulso

CFO Controller Skills JB Henriksen

Succession Planning Arthur Warsoff

UACPA Update Monica Gardner

MAR 13

Data Analytics Casey Foote

MAY 8

Yellow Book TBD

Excel The Top 10 Things you Should Know Aaron Clark

Leases/ Rev Rec Marty Van Wagoner

OCT 9

Fraud/ Cyber Security

NOV 6 Legislative Update David, Ryan & Craig Peterson

DEC 11

Ethics

Lectures will be webcast throughout Utah.

EARN ONE HOUR OF CPE. $15 FOR MEMBERS.

Attend online or in person. UACPA, 136 S. Main Street, Ste 510.

ALL LECTURES ARE HELD AT NOON. LUNCH WILL BE PROVIDED.

Register at www.uacpa.org