The Journal Entry - January 2016

January

2016,

Vol.

I

|

The

CGMA

Issue

Plant the Seeds Today For a Better Tomorrow How CPAs are finding value in the CGMA designation

Preview the Upcoming Legislative Session the journal entry | January 2016

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Mission,Vision,Values

ExecutiveBoard

Mission

president................................................ Jonyce Bullock president-elect.................................. Hollie S. Andrus vice president..............................Gavin E. Hutchinson secretary...................................Sherie E. Charlesworth treasurer................................................. Kyle J. Pexton member-at-large....................................Larry A. Deppe member-at-large.....................................Brett C. Hugie immediate past president..................... Paul O. Skeen aicpa council...........................................Dan Griffiths pronet council...................................Joshua Turnbow ceo......................................................... Susan A. 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

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

Professional Community The UACPA reinforces peer accountability to encourage members to maintain integrity and high ethical standards. We ​​ provide member to member networking opportunities and networking opportunities with other professions. We value 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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the journal entry | January 2016

in this issue | January 2016

feature story

CGMA and the Future for CPAs

127 New Members............................................................................................4 Movers & Shakers......................................................................................4 President's Message ..................................................................................5 Message from the CEO............................................................................. 7 Cover Story: Planting the Seeds Today For a Better Tomorrow.........8 A Conversation about CGMA............................................................... 12 By the Numbers: Accounting in Utah.................................................. 15 In Search of More Time ......................................................................... 16 Competition Among Not-for-Profit Organizations............................ 18 The Next Generation of Leadership...................................................... 21

Making Time

by Finding Time 16

CPAs as Trust Protectors

CPAs as Trust Protectors........................................................................23 Legislative Update...................................................................................25 Leadership Academy...............................................................................26 Women in Accounting: Debbie Davis..................................................30 Photo Pages: UACPA Open House, Winter Conference ...................32 Meet the Executive Board......................................................................34 Board Bullets: News from the UACPA Board.....................................35 Meet the UACPA Staff.............................................................................36 Meet a Member: Brent Bement.............................................................37

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Meet a Member: Brent Bement 44

Member Benefits......................................................................................38 the journal entry | January 2016

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New Members

NewMembers

Congratulations to the following individuals/CPAs who were approved for membership or affiliate status in the UACPA as of December 10, 2015.

Fellows Taylor Vowles Crewe Capital Blake Roper Helix Education Trevor Robison Addison Webster Hoj Engineering & Sales Paul Hanson PwC Arbie Nersisian Craig Dittman Bookly.co John Zilles Roosevelt City Corp Kyle J. Krebs Orbit Irrigation Products Inc. Christopher J. Powell Sorenson Communications, Inc. Calvin DiFalco Ernst & Young LLP Maria C. Amaro American Express Bank, FSB David Bailey Nu Skin Enterprises, Inc. Thomas La American Express Company

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Eric Brown Berkeley Research Group Tatia Beaslin Hawkins Scott Hinkle Kim Hinkle State Farm Corby Young Jacob Sperry Connor Grup, Inc. Jenny Svelund WSRP, LLC Student Members Southern Utah University Taylor Hansen University of Phoenix Sean M. Williford Westminster College Joshua T. Moes Jemma Lau Angela Wong David Brose Sr. Tyler P. Nelson Rebecca B. Maxfield Julie Janke Hannah P. Anthony University of Utah Morgen Buckwalter Utah Valley University Jared Alvarez Hongtao Li Karly Osborne

the journal entry | January 2016

Movers&Shakers Ted Hill has been named the new partner-in-charge for both Utah offices of Eide Bailly LLP. With more than 30 years of public accounting experience, Hill has served in a variety of industries, including nonprofit, real estate, affordable housing, employee Ted Hill benefit plans and manufacturing. additionally, he has extensive experience with merger, acquisition and other types of transactions.

Garrett J. Koerner, CPA has joined Tanner LLC as a Tax Partner.

Koerner has more than 12 years of public accounting experience serving companies in technology, software, consumer products, real estate and homebuilding. His career began in San Francisco Garrett J. Koerner where he advised high-growth software, technology and real estate companies. He received his Bachelor's and Master's degrees from Brigham Young University. He serves as an adjunct accounting instructor at the University of Utah and is associated with the Salt Lake Chamber's Capitol Club.

Scott Frederickson and Scott Murri have partnered to form Frederickson Murri, a firm that provides services ranging from effective tax rate reduction, tax refund recapture strategies, private wealth planning & advising and small business advisory services. Frederickson joined his father's firm in 1993 and later joined Ernst & Young as a member of the National Tax Practice team. He has 22 years of experience in public accounting. Murri has spent the past 35 years in small business planning and tax regulatory compliance. Murri has an extensive knowledge of estate and legacy planning issues that are faced by individuals or groups with a high net worth. The offices of Frederickson Murri are located at 2180 S. 1300 East, Suite 330 in Salt Lake City.

Get your news in Movers & Shakers. Send the details to Amy Spencer, as@uacpa.org

President's Message

Jonyce Bullock, CPA

T

he bad news is time flies. The good news is you’re the pilot” — Michael Althsuler

When I was growing up it seemed like time crawled.

There was always something to look forward to — birthdays, Christmas, summer and vacations. We’d anxiously count down the days to the event and it seemed like the time would never come. However, as life has become busy, the clock seems to have moved into overdrive and the phrase “time flies” has never been more applicable.

This entry marks my final President’s message. It seems like I was just writing the first one. It has been a privilege and an honor to serve the CPAs in the state of Utah this past year. I have enjoyed traveling around the state and getting to know our members. We have an amazing and vibrant community of CPAs in the state of Utah!

One of the opportunities I have had this past year, is representing the UACPA as a member at the AICPA Council. During my time on Council, we have dealt with a number of items including lobbying congress for tax reform, examining the future of continuing education, developing the talent pipeline and evaluating the upcoming changes to the CPA Exam. The AICPA is tackling each of these items to help strengthen the CPA profession and to serve our members. In addition to these items, the AICPA presented to Council the opportunity to expand the existing joint venture with CIMA and to launch a new international organization designed to represent our members as our profession and economy move towards globalization. This association, if approved, will be called the Association of International Certified Public Accountants and will allow us to use the acronym AICPA globally. The new association will not replace the AICPA as we know it today, but rather, will create

an international presence that will allow us to support, expand and advocate for the CPA profession worldwide.

There are a number of reasons this proposal is being made at this time. As a UACPA Board, we feel that there are a number of benefits to this proposal, not only to members now, but especially to sustaining and protecting the profession for the future.

This issue of the Journal Entry is dedicated to helping our members understand the proposal, how it relates to the CGMA designation and to give you access to the tools and resources you need to make a decision this spring when this proposal is put to a member vote. I encourage each of our members to visit www.aicpa.org/horizons and to take the time to evaluate what this proposal may mean to each of you personally.

Time is flying, but — as the quote says — we have the opportunity to be the pilot during our flight. If you have any questions about the proposal, or any feedback about the UACPA in general, I would love to hear from you at jonyceb@squire.com.

the journal entry | January 2016

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CGMA. Boost your wow factor.

Make it happen at cgma.org

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. 15484A-326

CEO's Message

Susan Speirs, CPA

H

appy New Year!

“The only way to make sense out of change is to plunge into it, move with it, and join the dance.” — Alan Watts If there’s anything we know about 2016, it’s that the year will bring lots of change, lots of new ideas and lots of venturing into the unknown.

Technology advances are changing the way CPAs conduct business, the way firms solicit business and the way the public perceives us. In 2015, we may have asked ourselves if we should be in the cloud; fast forward to 2016 and it’s no longer a question, rather a fact that we should be in the cloud. If we’re not, our clients have already surpassed us.

Technology is changing the way small businesses manage operations. Data entry roles are being automated and the ability to analyze data is requiring a different skill set. Business owners are insisting that their accounting staff be able to interpret data and fast forward what operations could or should look like in the future. As employers, we’re seeing the need to re-tool our employees so that they meet the challenges. Firms are engaging in more advisory services which has changed the traditional role of the CPA firm and the CPA providing the service.

Technology has increased our ability to calculate less and provide more operational and analytical services, which is what businesses are requesting. We see that firms struggle with how to bill services as clients don’t care how long it takes to complete the analysis as much as they value the answer.

We continue to see an increase in fee pressures, staff labor costs mixed with quality of staff. Firms continue to analyze their mix of services, clientele and positioning within their own marketplace relative to their technical and consulting

resources. Competition continues to stiffen while we see the change in the demographic makeup of our workforce.

Many of our businesses within our state continue to ask for leadership training and development and quality staff at managerial, partner, CFO and CEO levels as we move into somewhat of a crisis mode with continued retirement of our baby boomers. In Utah, students graduating with masters of accounting are being placed in jobs at an all-time high of 98 percent. However, we’re seeing that those graduates are changing careers within three to five years. Workplace compression, regulation overload and life balance constraints are some of the reasons given for changing jobs and/or careers. This adds additional stress to organizations that need employees of the CPA caliber.

We invite you to let us be a part of your organizations and firms and relieve some of the pressures of change. Let us provide your organizations networking opportunities, advocacy efforts and leadership training as we all continue to push through the changes that inevitably are here to stay.

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AICPA Proposes Expanding Joint Venture with CIMA

Strengthening the profession by growing together

Provided by the AICPA

L

egendary investor Warren Buffett has a saying: “Someone’s sitting in the shade today because someone planted a tree a long time ago.” This quote underscores the importance of anticipating and preparing today for the opportunities and challenges of tomorrow. The CPA profession has a long history of doing just that. The Utah Association of CPAs and the American Institute of CPAs (AICPA) are currently working on a wide variety of initiatives to enhance the relevance and vibrancy of the profession far into the future. These initiatives include programs to promote the value of CPAs as trusted business advisors, enhance audit quality, broaden the definition of attest, help firms identify and remedy issues during A&A engagements, evolve the Uniform CPA Exam, attract the next generation of talent and meet the information and educational needs of members in public accounting, business, government and specialized services.

In response to the needs of members working in corporations of all ownership structures and sizes, the AICPA formed a joint venture with the Chartered Institute of Management Accountants (CIMA) in 2011.

CIMA is the world’s leading and largest professional body of management accountants. Founded in 1919, CIMA represents more than 227,000 members and students operating in 179 countries, working in industry, commerce and not-for-profit organizations. In January 2012, the two organizations launched the Chartered Global Management Accountant (CGMA) designation. The number of CGMA designation holders is now more than 150,000 worldwide, with more than 50,000 in the U.S. Now, the AICPA and CIMA are beginning a conversation with their respective members about a proposal to integrate their operations, strategy and management through a newly formed association. The AICPA would continue to serve members and protect, promote and grow the CPA profession. The new association aims to maximize efficiencies and provide a broader platform for further enhancing advocacy, promoting public and management accounting on campuses and with employers and clients and developing new research and educational offerings.

According to Arleen Thomas, CPA, CGMA, AICPA Senior Vice President-Management Accounting and Global Markets, “A presence in Europe will dramatically increase our ability to advocate for members on international matters that are increasingly impacting the U.S. securities system. In addition, the proposal would enable the the journal entry | January 2016

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Feature Story profession to achieve even greater influence domestically and internationally and broaden the appeal of accounting to the next generation of professionals.”

Unwavering Commitment to the CPA “Our strategy is built on the power of ‘And,’” said Barry C. Melancon, CPA, CGMA, AICPA President and CEO. “The AICPA would continue to maintain an unwavering commitment to the CPA, promote high standards for ethics and quality, and protect the public interest and the core values of the CPA profession. What we would gain through this new association with CIMA is the further professionalization of management accounting. Financial reporting is stronger when we drive quality in both public and management accounting.”

Trends Driving Need for Evolution The CPA profession has a history of anticipating — and adjusting to — changes in market demands. The profession has grappled with and developed solutions to address increasing-complex technology, specialization and evolving business structures; these drove such evolutionary steps as the computerization of the CPA Exam, non-CPA firm ownership and the adoption of cloud computing solutions.

Current trends and challenges on the horizon have been carefully assessed by the AICPA as part of its ongoing strategic planning process. With record membership numbers and the CPA reputation at the highest level, the AICPA believes that the time is right to pursue a proposal that will better enable the profession to tackle the following factors: • The growing worldwide talent shortage and associated demand for ever higher levels of specialized knowledge and services • Significant demographic and generational shifts • The increasing number of accounting graduates bypassing professional affiliation and the associated commitment to a professional code of conduct

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• The shift of economic growth toward Asian and emerging markets • The greater international mindset of today’s graduates and the overall trend toward more international connectedness and interdependencies • Regulatory impact coming from Europe and other parts of the world that are affecting businesses in the U.S. • The need for finance professionals, facing an increasingly competitive job market, to differentiate themselves from their peers and demonstrate greater strategic management and business partnering skills

Building on Existing Joint Venture's Success Approximately 50 percent of most state CPA society and AICPA members work in businesses of all sizes and ownership structures. Creating the CGMA offered these professionals a complementary designation and enhanced resources. Since the designation’s launch, the American Institute of CPAs and CIMA have delivered nearly 120 reports and tools plus online events and career development resources to members seeking to increase their knowledge and hone critical skills for the future. The organizations also developed the CGMA Competency Framework and the Global Management Accounting Principles. In addition, so that members and employers could better assess and address accountants’ skills and competency gaps, the organizations launched the AICPA | CIMA Competency and Learning platform. The tool also analyzes public accounting skills, such as those related to assurance as well as employee benefit plan and governmental audits.

CGMA designation holders also have access to the CGMA Magazine, the CGMA Finance Impact Tool, numerous reports and case studies on best practices and the Harvard ManageMentor online learning and performance support resource program. The website cgma.org is the hub for all of these resources and more.

Feature Story -

Benefit of the Proposal "We are supportive of the direction the AICPA Board is recommending," said UACPA CEO, Susan Speirs, CPA, CGMA. “The changes this profession faces today are greater than ever. To preserve our relevance and stature, the profession needs to embrace change and consider innovative ways to better anticipate, reflect and lead. The work between the AICPA and CIMA has contributed greatly to the professionalization of management accounting, and that is much needed today. The proposal would bring together the entire accounting profession and extend the influence of a CPA-led accounting profession in the U.S.” Strengthening the bond between the two organizations would streamline resources and create efficiencies to help both organizations move faster to market and produce content with broader perspective, especially on international business issues, which are increasingly impacting CPA firm clients. In particular, the AICPA cites the gains in advocacy that could be realized when

speaking on behalf of more than 600,000 current and nextgeneration accounting professionals. The association of the AICPA and CIMA would form the most influential body for the accounting profession, within the U.S. and globally, advocating on tax, audit, financial reporting and other issues important to members.

What's

Next?

Gaining member insights into the AICPA and CIMA evolution is critical to helping the Institute’s governing Council determine its next course of action. Council will assess member feedback and consider authorizing a member ballot in the spring. Moving forward would require a vote by members, with a majority of those votes supporting the proposal. CIMA has a similar requirement and timeline.

Members are encouraged to visit aicpa.org/horizons to find out more about what they could gain from a deeper relationship with CIMA and provide feedback on the proposal. ■

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Better Together for a Brighter Future A Conversation with Myriam Madden, FCMA, CGMA, and Paul Stahlin, CPA, CGMA

By Ash Noah, CPA, FCMA, CGMA and VP of CGMA External Relations, AICPA

T

he American Institute of CPAs entered into a joint venture in 2011 with the Chartered Institute of Management Accountants (CIMA) – the world’s leading and largest management accounting professional body with more than 227,000 members and students in 179 countries around the world. Together, they launched the CGMA designation to elevate the role of management accountants among employers and deepen resources offered for members who work in business.

With over 150,000 CGMA designation holders worldwide and over 50,000 in the U.S., the joint venture has been highly successful. The two organizations would like to evolve this relationship by creating a new association—in addition to the AICPA and CIMA—that would advocate for the public interest with more than 600,000 current and next-generation professionals worldwide. Together, the AICPA and CIMA would significantly enhance advocacy, member employability and their abilities to advance the accounting profession around the world.

I recently had the pleasure of speaking with two of

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the profession’s leaders to discuss their thoughts on management accounting, the current business environment, the CGMA designation and the evolution of the joint venture between the AICPA and CIMA. Paul Stahlin, CPA, CGMA, is a current member of the AICPA’s governing Council, an Executive Committee member of CIMA’s Council and former chairman of the AICPA’s Board of Directors. Myriam Madden, FCMA, CGMA, is the current president of CIMA and a member of the AICPA’s Board of Directors. What follows is our conversation.

Ash Noah: What are the biggest issues impacting the accounting profession today?

Myriam Madden: We are living in a volatile, uncertain, complex and ambiguous world. New technologies and globalization are upending traditional business models and unexpected events, such as the drop in the price of oil, continue to surprise economists. On top of this, the relative shift of geopolitical power from west to east and the influx of huge quantities of data continues. We are

Better Together for a Brighter Future clearly navigating a complex environment that is becoming increasingly connected and congested.

Paul Stahlin: I agree. The accounting profession is not unlike other professions in that it’s susceptible to external factors and influence. That’s why it’s increasingly important to have the best and brightest people entering into and staying in our profession throughout their careers.

Sharply educated individuals with a mixture of technical, leadership, business and people skills are crucial to the future of the profession.

MM: That’s absolutely right. It’s critical that in this volatile environment we look to constantly refresh our competencies and skills and excel in our customer focus and quality. A somewhat alarming fact, according to The Lean Enterprise: How Corporations Can Innovate Like Startups, is that 87 percent of Fortune 500 companies from 1955 no longer exist today. Sustainable success has never been more challenging.

PS: My vision for the future of the profession is for common quality-management principles to be the core of every business. The impact of technology has changed the way of doing business dramatically over the past decade or so. That pace of change will pale in comparison to the change we’ll see in the next five years. Our profession needs to not only be adaptable, but also to be able to anticipate potential opportunities and risks. The role of the management accountant will be as the navigator of change within the finance discipline—and ultimately to guide the business.

AN: In your opinion, how does the joint venture between the AICPA and CIMA address some of the issues you just described?

MM: Together, the AICPA and CIMA have risen to these challenges in a variety of ways. We understand that for business to thrive, we have to think long term.

PS: Accountants in business are the translators of how information will impact organizations in the future. They are the providers of the road map to financial success. With that in mind, the AICPA and CIMA have developed the resources and tools members in industry need to perform in a volatile and fast-paced world. For example: the CGMA Competency Framework and the Global Management

Accounting Principles equip finance professionals with the tools to be leaders in business; to be better informed and part of decision-making from beginning to end.

MM: The Global Management Accounting Principles have been vital to helping organizations make sure they have best practice management accounting functions. In a world where only 0.5 percent of data is analyzed and leaders grapple with risks and opportunities on a daily basis, they will prove essential in helping provide and communicate the right information at the right time to drive decisions for better business.

PS: In addition to great tools and resources, the joint venture has provided members of both the AICPA and CIMA with a stronger voice in terms of advocacy. Under the current proposal, the new association would have an even more powerful voice, representing more than 600,000 current and future accounting professionals. Additionally, the association would have a greater ability to connect with students and other CGMA prospects around the world.

AN: Where do you see the profession of management accounting in the future?

MM: I believe we will see companies around the world continuing to demand finance professionals who have the relevant technical, business, people and leadership skills to drive their organizations to sustainable success.

It will be management accountants who drive value using these skills. The importance of good decision-making will continue to advance the need for world-class management accounting functions.

PS: And I would add that I think we’ll see organizations continuing to put more and more resources toward professional learning and talent development. As technology continues to broaden the role of the finance function, finance professionals will need additional training in ‘soft skills’ such as leadership, strategic thinking and communication.

MM: I agree. This is why the AICPA and CIMA developed the CGMA Competency Framework. It provides individuals and organizations with a structured approach to learning and development — critical in today’s and tomorrow’s business environments.

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Better Together for a Brighter Future AN: Has the joint venture changed your perceptions on certain issues within the profession?

MM: The joint venture has certainly sharpened my global focus in terms of the strategic drivers of both business and the profession. The combined strength of both our organizations have made me consider more the challenges of our swiftly evolving business environment and how we can jointly galvanize all our resources to develop and deliver a winning strategy for our members.

PS: The interaction with individuals from all around the globe has produced a diversity in thought bonded by the common language of business. There’s a dedicated effort toward strengthening management accounting via education, resources and advocacy with the common goal of helping businesses and individuals succeed.

AN: Do you think the joint venture has been successful thus far? How would you describe your experiences working with your partner organization?

MM: The biggest learning for me has been that when partnerships are formed between organizations with a similar strategic direction, the possibilities for enhancing the profession and service to our members are significant.

I am a member of the AICPA’s Board of Directors so I can confirm that both CIMA and the AICPA are two organizations that have a fierce loyalty to their members and a commitment to excellence and quality in the services they deliver. Serving on the AICPA board and as president of CIMA at this strategic time in the joint venture journey has been an extremely exciting opportunity and one that I have relished.

On a personal level, working with people on both sides of the Atlantic who are so passionate about the power of management accounting has been fantastic. Everyone that I have worked with has been absolutely committed to our members’ careers, and I am proud to be involved with such a process.

PS: It’s been so natural to create an affiliation through the joint venture. The quest to make it better serves as the common language and goal without regard to geography.

Passion is not limited to just one organization, and leadership abilities flourish in both.

MM: Exactly, Paul. We not only operate across different 14

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time zones, but also different cultures. Despite this, we are all united in our desire to make the joint venture a success and uphold the regard with which our members are held worldwide.

PS: The success in the joint venture has been the advances we have made for our members in terms of common management accounting principles, educational resources and enhanced advocacy. Our members are just beginning to realize the potential impact of how the global presence will serve us.

AN: Why do you support the AICPA and CIMA’s proposal to evolve the joint venture to create a new association?

PS: When the AICPA performed a 10- to 15-year strategic look through Horizons 2025, an extension of the CPA Vision Project, we evaluated the impact of technological advances, demographic shifts in our membership and clients and evolving our profession to represent the diversity of the world. In the strategic look, we reaffirmed the purpose of the CPA was making sense of a changing and complex world.

The profession has evolved, our clients have evolved, and the world around us has evolved. What the AICPA and CIMA are proposing is the next logical step in this evolution. The creation of a new association of more than 600,000 accounting professionals will provide a broader platform to strengthen and promote the CPA in the U.S. and globally, as well as grow and promote the entire accounting profession for the next generation.

MM: For me, the overall aim of deepening the joint venture is to allow us do what we do…better. And, simply put, that is to deliver better services for our members.

Our goal is to create and support world-leading finance professionals who are respected and in demand, and who create true value for the organizations in which they work.

The deepening of the joint venture accelerates our strategy for greater influence of the management accounting profession. Together, we can promote the profession and build greater market recognition to bring our members the reputation, reach and resources to help them go further. ■ To learn more and share your feedback on the AICPA’s proposal for the evolution of their joint venture with CIMA, please visit www.aicpa.org/horizons.

by the

Numbers

These numbers reflect current wages, projected increase in demand for accountants and the number of accountants in Utah from www.accountingedu.org

Accounting Jobs and Salaries

28 4.7 $51.50

Predicted percentage of increase in the number of accounting jobs between 2012 and 2022 Predicted percentage of increase in salaries in 2016

Average hourly salary for experienced accountants with CPA licenses in Salt Lake City

5,980 1,390 1,320 Number of accountants and auditors in Salt Lake City

Number of accountants and auditors in the Provo-Orem area

Number of accountants and auditors in Ogden the journal entry | January 2016

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There Will Never Be More Time Saying "Yes" to (almost) everything is really possible

By Matt Klein, CPA, CGMA

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don’t believe that you don’t have time to not do things that will benefit you. You can’t afford not to do them!

It was the appointment that wouldn’t go away. The project was an interesting one but would take a lot of time from several people and someone needed to champion it. We were two months away and already 10 months overdue for our new ERP system to go live.

Everyone was working overtime and focused only on the implementation. There just wasn’t enough time for other projects and there wouldn’t be for maybe a year. Or so I told myself.

The meeting approached and I canceled it and specifically said I couldn’t commit to reschedule it in the near future. I received a reply with some joking comments about "excuses, excuses but its all good." I had overloaded him with important sounding excuses to soften the blow of me telling him there wasn’t enough time. It promised to be a great project and a great tool for the company — the kind of stuff that gets a geeky accountant like me out of bed. Was I using time as an 16

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excuse and robbing Peter to pay Paul? If I didn’t make time now, would I ever make time?

Enough was enough. I can still see myself sitting at his desk promising that I wouldn’t make excuses and I knew there would never be a better time so I told him to get started on it and that I was fully committed to him. I don’t remember if that was my first inkling of that thought but it has stuck with me since that day.

Possibly it was incepted in weeks prior and just came out that day, but its impression is as vivid as ever. I feel like my perspective is so different now when I have conversations with a banker, attorney, auditor, software consultant, or one of the other people around the world who vie for a portion of my time. I often found myself saying something like, “This is definitely something I’m interested in and want to do, but I just don’t have the time right now. When I have more time after ‘X project’ or ‘Y deadline’ then let’s talk.” This seemed to work most of the time and I squeaked by with meeting all my required obligations but not making time for much else.

There will never be more time My response now has changed along with my perspective — I feel liberated.

At this point, let me warn you that I have not come up with a way to bend the space-time continuum nor have I found a secret formula to make each day have 25 hours.

What I did do was realize that I wasn’t helping my job or my company to progress with my answer that did nothing more than put up a brick wall to block out change and innovation. I have read books and articles focusing on time management and made checklists until my pen ran out of ink. (I still do, checking things off feels good!) But until I took the words of the "Challenge the Status Quo" sticky note on my monitor, I wasn’t applying any of the advice.

What I’m proposing is that we prioritize our work lives such that we stop telling people that we will do something when we have more time. I realize that there will still be times when a deadline, vacation, or other occurrence will necessitate saying "not now." However, instead of saying "later," what if we actually made "later" happen now by scheduling an appointment for right after the busy event is over? Once things are on the calendars of all parties involved, the meeting is much more likely to happen.

How many of you have been told "not now?" How many of you have said this? I’m not sure if I heard it more during my four years as an auditor or said it more during my four years as a controller. We all know how it feels to hear it, but that still doesn’t make us more hesitant to say it. The road will not be easy and someone will still get told that I don’t have time, but I am determined to change my initial response and try to make time to get involved in more things that interest me and will provide greater job satisfaction.

What happens when you tell people that you "don’t have time now" or "let’s talk later?" How does it make the other person feel?

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They’re not important

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Their project is not important

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You’re more important than they are

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You have no interest in their project

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Others are more important

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You lose credibility

•

You become the one who is really good about making up important-sounding excuses

From my mistakes are born your steps: 1. Find time to make time 2. Don’t make excuses as a cover-up 3. Commit to the project like it’s your own 4. Communicate — everyone will appreciate the honesty The last step is the key. If your boss prioritizes your time differently for a few weeks, inform the team. If you’re not passionate about it, help find someone who is. If there are too many meetings, suggest meeting agendas for more concise time usage. Be honest.

In short, we are all looking for more time in the day. This won’t bring you more time but hopefully it will help you utilize your time better and make more contributions to your organization beyond the normal requirements of your job.

It’s been two years since this light bulb turned on for me and I don’t remember saying "yes" more often, but I definitely remember that I didn’t say "not now" near as much, if at all. This has probably made me busier but has also increased my effectiveness at work and raised the stature of the accounting department within the company.

Never saying no has been one of the biggest contributors to my professional success, and I can’t believe it took me this long to realize that by saying "later" I had really been saying "no" all along. I have reclaimed time from my day, what will you do with your time? ■ Matthew W. Klein, CPA, CGMA is the International Controller and Finance Manager at Lifetime Products. He graduated from the University of Utah with a Bachelors and Masters in Accounting. Klein has been active in the UACPA and has served as the ProNet Council Chair and is currently on the BAM Council. the journal entry | January 2016

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It's a Competitive World Out There How Not-for-Profit Organizations can Survive the challenges of competition

By Doug Hansen

T

hroughout my career in public accounting, I have been fortunate to serve a large number of notfor-profit organizations of all types and sizes. I have tremendous respect and appreciation for the men and women who devote their careers to roles that advance valuable causes within these great organizations. Some of the most talented and visionary leaders I have worked with are the executive directors, board members, and other management team members in the not-for-profit sector. I commend all of these individuals for the positive difference their organizations are making in our communities!

As an advisor to not-for-profits, I am keenly aware that not-for-profit organizations face a significant amount of competition for the limited resources available to support the accomplishment of their missions. Much of this competition comes not only from for-profit entities, but also from other not-for-profits. The Urban Institute’s publication entitled “The Nonprofit Sector in Brief 2015� notes that there were approximately 1.41

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million nonprofits registered with the Internal Revenue Service (IRS) in 2013. More than 950,000 of these organizations were classified as public charities by the IRS in 2013, meaning that someone contributing to such organizations is able to record a charitable donation for income tax purposes when a donation is made. Even within the state of Utah, there are a very large number of not-for-profit organizations competing for limited resources. Competition for funding is compounded by the fact that a large number of newly organized not-forprofit organizations are approved by the IRS each year.

With so much competition, it is easy to see why many donation and grant funded not-for-profits feel continual pressure to secure the next dollar of funding.

Over the years, I have heard a number of individuals express an interest in forming a not-for-profit organization. Quite often, these individuals, a family member, or a friend have been impacted or witnessed something in their lives that causes them deep feelings of sorrow or concern. This leads to a sincere desire to

Nonprofit do something to make a positive difference in the area of concern identified. This is very commendable and has led to the creation of many of the most well-known and respected not-for-profits in the United States. However, because of the significant competition among not-forprofits for donations and grants, I suggest the following steps be taken before a new not-for-profit entity is created: • Conduct research to determine whether other organizations in your area are already addressing, either partially or fully, the area of concern you have identified. For those with passion to make a difference, it is often very exciting to think about forming a new not-forprofit organization through which the identified area of concern will be addressed. However, if another organization or organizations are already providing services in a chosen area, the potential impact for good can often be even greater by simply joining the cause. This also results in financial efficiency simply from not duplicating administrative and overhead costs.

• Evaluate whether donors/grantors will likely consider your cause worthy of funding. Only if you conclude that adequate funding will likely be available should you continue down the path of possibly creating a new not-for-profit.

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• Consider other important factors such as who will manage the organization, who will serve on the board of directors, and how you will stay in compliance with tax and other laws and regulations. There are a number of good resources available to provide guidance on additional steps to be taken to organize a notfor-profit.

For an existing not-for-profit competing for relatively scarce donations and grants, here are a few things to consider.

www.facebook.com/Utahassociationofcpas

Collaborate

Other not-for-profit organizations serving in the same or complementary areas can often be seen as adversaries; however, a synergistic relationship can often exist between two organizations which could result in less the journal entry | January 2016

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NonProfit redundancy of effort and even the expansion of services that are provided. Do not rule out the possibility that two not-for-profits may be able to do even more good by merging the organizations into one legal entity and benefiting from the potential reduction of duplicate costs. I have known of several mergers of complementary not-for-profits that have been very successful.

Since each organization may be competing against dozens or even hundreds of others for the limited funds available from a donor or grantor, it is absolutely critical that an organization find ways to differentiate itself.

Differentiate Your Organization

Since each organization may be competing against dozens or even hundreds of others for the limited funds available from a donor or grantor, it is absolutely critical that an organization find ways to differentiate itself. One important way to do this is to measure and communicate an organization’s social impact. Simply stated, can an organization prove to the world that it is really making a difference in the area or areas defined in the organization’s mission? An important starting point is to ensure that a not-for-profit organization’s mission is defined in such a way that metrics can be developed to truly measure the success the organization is having.

Go Beyond the Basics

In developing the dashboard type metrics an organization plans to use to measure and communicate impact, go beyond simply measuring the basics, such as how many people were counseled, how many meals were served, or how many individuals were taught? Although sometimes more difficult to quantify, metrics that measure, at least indirectly, the impact of the services provided by a not-for-profit are a great supplement to other data. For example, suppose your organization provides educational services to the preschool children

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of disadvantaged families to improve the children’s later success in the traditional classroom setting; perhaps there is a way to obtain data to allow a comparison of the average test scores in traditional elementary schools of children who completed the not-for-profit’s program to those who did not. Some of the data to communicate could come from surveys or interviews of the teachers or administrators in the schools the children transition to.

Other important metrics would be to simply measure the tested improvement in knowledge from the time a child enters the not-for-profit’s program until the program is completed and the child enters a traditional elementary school. This type of data conveys a much stronger message of impact than simply reporting the number of students enrolled in a program or similar metrics.

Keep It Simple

The dashboard information provided to outside funding sources should focus on a few key metrics that clearly demonstrate impact rather than on providing substantial amounts of data. Individuals making funding decisions are busy, so the quicker they are able to assess your notfor-profit’s true impact for good, the better.

Tell Your Story

Using real life examples of the positive impact your program has had on the people you serve is very meaningful. Similar to the use of metrics, try to communicate your organization’s story in the most powerful, yet concise way possible.

We have a lot of wonderful not-for-profit organizations in Utah. I wish all of them success in their efforts to accomplish their missions and in obtaining the essential funding that makes this possible. ■ Douglas Hansen, CPA is an audit partner and head of the audit practice at Tanner LLC. He has been serving not-for-profits for more than 25 years, chairs the firm's not-forprofit niche committee and spends the majority of his client service time working in this area. He can be reached at djhansen@tannerco.com

The Next Generation of Leadership Creating strong leaders for the future

By Jim Boomer, CPA, CITP, MBA

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e are headed toward a massive transition in leadership at firms across the country as the current leadership gets closer to retirement. Some firms have already successfully transitioned, others are preparing, and then, there are those that don’t yet have any plans in place. The transition discussion is abuzz at the conferences I’ve recently attended — both among attendees and speakers. And, tensions are high between the very generations whose roles are about to shift, which is extremely concerning.

The State of the State Current leadership often complains they can’t find quality candidates to fill the pipeline, pointing to a generation that doesn’t want to put in the hours or work for it. They use words like lazy and entitled to describe them and say they waste time using technologies like mobile and social media. The younger generation uses terms like out-of-touch and archaic to describe the people they will succeed. They point to a need to do

things differently to succeed in the future and some suggest throwing out the old model completely.

So who’s right? I’ll show you here how the correct answer lies somewhere in the middle.

Listen Up, Emerging Leaders I’ve been hearing an increasing number of people from my generation (the emerging partner group) spreading a message that the old model is antiquated and needs to be replaced by completely new thinking. I agree that we need to do things differently, but a complete reboot isn’t necessary. Emerging leaders need to step back and understand a few things about those that have come before us.

• First, they have years of wisdom and professional experience that we can and should tap into if we are smart business people.

• We also need to appreciate everything they’ve

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The Next Generation of Leadership done to set up the opportunity that is currently ahead. It would not exist if not for the hard work they put in throughout their careers.

• We need to realize it’s hard to let go of something you’ve been doing your whole life. We may have to temper our expectations of how quickly we are going to ascend in the firm.

• We also need to present our new ideas with respect and ask how they fit in with current leadership’s view of the environment.

• Finally, don’t push too hard. This is an emotional transition that takes time. They need to work through it personally before they can share the plan or roadmap with anyone else.

Seasoned professionals must think back to earlier in their own careers so they can better empathize with what the emerging professionals are thinking, feeling and doing.

Tips for Current Leaders Seasoned professionals must think back to earlier in their own careers so they can better empathize with what the emerging professionals are thinking, feeling and doing. A few years ago I listened to Bill Reeb speak on generations — he read an article to the audience that listed all the gripes current management had with the next generation. Only after the audience (made up mostly of seasoned professionals) had finished their wave of head nods in agreement did he reveal that the article was from many years ago and was actually written about the Baby Boomer generation. Truth be told, you’ve been in their shoes and, likely, someone judged your perceived intentions (or lack thereof) at some point in your career. So let’s look for the positives that we can leverage to move forward toward a successful transition.

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• First and foremost, the up-and-coming leaders bring a fresh perspective that is important to the future of the firm. They also bring new ideas and skills to the table as well; especially in the area of technology. Leverage these to the firm’s advantage.

• Open your mind to new ways of thinking and doing things. Considering how these ideas might fit into how you’ve traditionally done things.

• Coach and mentor young professionals but also challenge them. This involves stepping back, which can be emotional and difficult to do but is necessary to the transition.

Finding a Middle Ground ...

TOGETHER Although Thoreau wasn’t referring to the accounting industry when he said “things don’t change, we change,” I think this quote is a great way to approach the coming of ages. The sooner we stop throwing daggers at each other based on what the other perceives to be wrong and start focusing on the positive aspects we all bring to the table, the quicker we can start blending our perspectives and planning the transition — together. This building tension and divide must stop. It will derail, delay and even destruct the impending and important shift in leadership, and we must all come together now to ensure a successful transition.

Put an action plan in writing that spells out the transition timeline, what/when activities will be transitioned and how approaches can be melded. This will probably require many emerging leaders to tap the brakes and current leaders to hit the gas, but working together you can figure it out. ■ Jim Boomer, CPA is a shareholder and the CIO for Boomer Consulting, Inc. He serves as a strategic planning and technology consultant and firm adviser to CPA firms across the country.

CPAs as Trust Protectors How CPAs fit the role of being a trust protector in business

By Elliot P. Smith, J.D., M.Acc., M.S.

T

he concept of trusts has been around for hundreds, if not thousands, of years. Popular types of trusts including revocable, irrevocable, grantor, insurance, living or inter vivor, testamentary, charitable, dynasty, and many others. Although there are countless reasons for using trusts, all trusts are based on the same concept: Someone transfers property to someone whom they trust to hold and administer for someone else’s benefit.

The person transferring the property has lots of titles: settlor, trustor, grantor, or trustmaker. The person or organization holding the property, as a fiduciary, is always known as the trustee. Those who receive the benefit of the arrangement are the beneficiaries. Almost all CPAs are familiar with these roles but an increasingly common and important role with which some may be less familiar is the role of a trust protector (also referred to as a trust advisor).

A trust protector is generally a person who holds certain powers over the trustee and/or the administration of a trust, and who can amend a trust when needed due

to unexpected circumstances or changes in the law.

The role of trust protector originated with trusts in foreign jurisdictions. Originally, settlors placing assets with foreign trustees in offshore jurisdictions had little recourse if the foreign trustee decided not to comply with the trust document, or even worse, disappeared with the trust funds. The trust protector helped alleviate the concern of a rogue foreign trustee by giving a U.S. person, referred to as a trust protector, the ability to quickly remove the trustee if there was ever a problem.

Over the past 25 years the role and powers given to trust protectors have expanded significantly into many types of domestic trusts, and their use has become common and widely accepted in U.S. trust arrangements. Some of the powers commonly granted to trust protectors include removing and replacing a trustee, amending a trust agreement for changing tax laws, amending the trust agreement for changing Medicaid and other government benefit laws, correcting scrivener errors in a trust document, adding or removing trust beneficiaries,

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CPAs as Trust Protectors directing the trustee to make distributions, changing the jurisdiction and venue of the trust, and directing the trustee on how to invest trust assets.

Trust protectors are almost exclusively used when the trust is irrevocable. This is because a living settlor of a revocable trust will most often be acting as his or her own trustee, thereby retaining full power to make any necessary amendments and full power over all the trust assets. However, nearly all revocable trusts become irrevocable once the settlor passes away. A trust protector may then be appropriate if the trust does not immediately distribute all the property of the trust but continues on for a period of time. Other irrevocable trusts such as life insurance trusts, asset protection trusts, and Medicaid trusts that are irrevocable from inception can also greatly benefit from having a trust protector.

CPAs are often ideal candidates to fulfill the role of trust protector. CPAs are sophisticated and regularly interact with the legal world. They are generally independent and objective, which makes them less likely to be improperly swayed by an aggressive beneficiary or trustee or to be intimidated when action is needed.

CPAs are often ideal candidates to fulfill the role of trust protector. CPAs are sophisticated and regularly interact with the legal world. They are generally independent and objective, which makes them less likely to be improperly swayed by an aggressive beneficiary or trustee or to be intimidated when action is needed. Additionally, CPAs generally know when the trust document needs to be amended due to changing tax laws.

Unless otherwise explicitly agreed upon, a CPA taking on the role of trust protector should manage his or her risk by making sure the trust document is explicit that the role of trust protector is not a fiduciary role and that the CPA has no duty to monitor the trustee’s actions.

Even when a trust document clearly states that a trust 24

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protector is not a fiduciary, the CPA, along with his or her legal counsel, should consider whether any of the powers in the trust agreement to be held by the trust protector could cause a court to go against the trust agreement and rule that the trust protector was really acting as a co-trustee in a fiduciary capacity. Powers more risky for a trust protector to hold include those powers that would otherwise be held by a trustee such as the right to direct the trustee to make distributions, the power to veto or delay trust distributions, and the power to direct the trustee to make certain investments.

Powers that are less risky are those that would generally be held by a court such as the power to remove a trustee, the power to amend the trust, and the power to correct scrivener errors.

An important benefit for a CPA who acts as trust protector is the long term relationships which are often created between the CPA and the settlor, the settlor’s family and other beneficiaries of the trust.

Such relationships often result in the CPA performing additional accounting and tax services. The trust protector should also have the right to be compensated for his or her time and to be reimbursed for any outof-pocket costs, such as legal and other professional expenses, which are incurred while exercising the trust protector powers. The trust protector’s right to compensation and reimbursement should be explicitly stated in the trust document. ■ I am not your attorney. Any reliance on this article will not create an attorney-client relationship and should not be used as a substitute for obtaining legal advice from your legal counsel. You should always consult a suitably qualified attorney regarding any specific legal problem or matter.

Elliot Smith is an attorney and CPA whose legal practice includes business, tax, and estate planning.

He can be reached at Elliot@ slctaxattorney.com.

Legislative Update

By Craig Peterson and Ryan Peterson

I

t is an honor for us to have been selected as the government affairs consultants to the Utah Association of Certified Public Accountants. We look forward to working with your leadership team to represent the interests of the CPA profession here in the State of Utah.

With the falling of the snow and the change in temperature comes the reminder that the Utah State Legislature will soon convene. Here are a few of the items we will be keeping an eye on for the 2016 legislative session.

Licensure During the last legislative session, Provo Representative Norm Thurston worked on the passage of HB235, a bill aimed to change the process of licensure. The bill would have allowed for “fast learners” to skip over timebased requirements by passing an exam. While not an attempt to eliminate licensure all together, it was a failed attempt to make major changes to licensure law in the state of Utah. This year we will be monitoring the issue closely as nationally-based groups that are well funded have shown interest in making changes to licensure laws around the country. These groups have been looking specifically at eliminating licensure for other professions such as cosmetologists and HVAC contractors, however any movement to weaken licensure could impact other professionals. DOPL has opposed these measures and, with our help, will continue to protect licensure in the State of Utah

Professional Sales Tax Every year there is an attempt to add a sales tax for professional services, and every year the proposal fails before it has a committee hearing. Utah has been known to be a business-friendly, anti-tax state. This year, however, there has been a complicated issue that could cause the professional sales tax to be more palatable to some legislators. Medicaid expansion has been an issue

in the forefront of legislator’s minds for three years now.

Everyone agrees that it is the right thing to do, however not everyone agrees with how to pay for it. Recently legislative leaders tried to pass a funding package, which included taxing through licensure fees, all of the healthcare providers who would benefit from the new patient expansion. This measure failed. There was an earlier proposal to increase all professional license fees to fund the expansion. There have been those who have stated that expanding the Medicaid program would be a benefit to society as a whole, so the burden of payment should be on a broader base. While this argument still has not received general support, we will continue to monitor closely.

Attestation Amendments As our society continues to become more complex the CPA’s traditional role of attestation is being challenged.

We look forward to watching this issue as it develops nationally and access the need for statutory review here in Utah to protect this important part of the CPA practice.

Tax Return Due Dates for the 2016 Filing Season Surely, you are aware that the federal government made changes to the tax return due dates for the 2016 filing season. A bill has been opened to make the necessary changes to Utah State law to reflect those changes. We do not anticipate this to be controversial at all, and it should pass easily as simply being clean-up language.

Again, we are honored to be working with you. As new consultants, we are still learning about your industry. If you become aware of other legislative efforts that could be impactful to the CPA profession, please do not hesitate to connect with us or with the board. We look forward to working with you. ■

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Leadership Academy

Preparing Utah's Future Leaders

By Braden S. Thompson

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I

n his posthumously published work, “Citadelle,” the French author, Antoine de Saint-Exupéry gave a simple, yet enlightening example of the difference between a leader and a manager.

“Building a boat isn’t about weaving canvas, forging nails, or reading the sky. It’s about giving a shared taste for the sea.”

Effective leadership is more than just divvying up the various responsibilities of a project. Though a manager may still get the boat built, the people who built the boat never internalized the meaning of the work. Who wants to set sail with a crew that isn’t united with a shared taste for the sea? To Saint-Exupéry, teaching his crew to yearn for the solace that only comes on the waves of the endless ocean was the starting point from which the whole project hinged. Effective leadership will always instill meaning and inspire effort on some level. That’s exactly what is taught at the UACPA’s Leadership Academy.

Leadership Academy candidates from a mixture of firms and industries all over the state.

Leadership Academy 2015 Leadership Academy is an excellent forum to enhance and define your unique leadership qualities and provide you with the tools to strengthen those qualities going forward.

-Matthew Christensen, CPA Leadership Academy Graduate

Nestled in the foothills of Park City, The Silver Baron Lodge at Deer Valley has been the site of all four of Utah’s Leadership Academies. Surrounded by some of the most beautiful landscapes in the U.S., Academy participants engage in interactive discussions on exceptional leadership, personal development and strategic planning.

How We Got Here

Over the course of three days, participants are guided through two main sections: i2a Strategic Thinking and Strengths-Based Leadership.

How does the CPA profession ensure its continued success? It is increasingly apparent that success must start on a human level. Individuals need to feel inspired and motivated if they are going to be a valuable asset to any institution. In recent years, the AICPA has shown it understands the need to teach this kind of effective leadership as is evident in its creation of a national Leadership Academy in 2009. The UACPA also recognized the need and wasn’t far behind in implementation.

The i2a Strategic Thinking System, which was developed by the Business Learning Institute (BLI) — the training arm of the Maryland Association of CPAs — is a fivestage process that teaches critical and creative thinking.

One of the main characteristics of i2a is its use of sticky notes, which enhances the collaboration between groups.

The result is a visual representation of the thought processes of group members and a new and innovative way for leaders to think.

In 2010 Dan Griffiths, CPA from Tanner was selected for the AICPA’s Leadership Academy. “I was blown away by the experience,” he says. “I felt like it would be amazing to be able to offer a similar experience to a larger number of Utah CPAs.” The UACPA worked with Dan and the AICPA program creators, Tom Hood and Gretchen Pisano, to bring parts of the AICPA program to the state of Utah. The first UACPA Leadership Academy was held in 2011.

This year, Leadership Academy participants were given a real-world issue to put through the i2a process. In an effort to reevaluate the position of the UACPA relative to the needs of CPAs in the state of Utah, Jonyce Bullock, UACPA President, has initiated a strategic planning task force. The task force is in place to strategize ideas for the future and then implement them. In conjunction with the work being done by that task force, Leadership Academy participants learned how to apply the i2a model to better understand and plan for four main UACPA missions: membership growth, member engagement, advocacy and the future of learning.

The UACPA accepts applications from CPAs who have a minimum of three years of professional experience. After reviewing the applications, the UACPA accepts up to 20

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Leadership Academy

Dan Griffiths guides the 2015-2016 Leadership Academy class through the Strengths-Based Leadership discussion.

I most enjoyed the opportunity to explore my personal leadership strengths at the academy.

The exercises and discussions we participated in helped me establish more specific career goals and provided greater insight regarding my abilities as a leader.

-Levi Taylor, CPA Leadership Academy Graduate

The strengths-based leadership section focused more on the specific strengths of each participant. Using the book, Strengths-Based Leadership by Barry Conchie and Tom Rath, and the Clifton StrengthsFinder assessment, Academy participants learned exactly what their unique leadership traits are and how to use them effectively. While knowing your own strengths is an important first step in becoming an exceptional leader, understanding the strengths of your organization and your team members is an equally important aspect. That’s why participants also learned the importance of recognizing specific leadership strengths in others and how to use that knowledge to maximize effectiveness.

Junior Achievement In addition to the interactive discussion-based learning, Leadership Academy also features an element of service learning. This year the Academy participants volunteered with a program put on by Junior Achievement.

Established in Utah in 1956, Junior Achievement focuses on teaching students from elementary to high school about work readiness, entrepreneurship and financial literacy through experiential, hands-on programs. The Academy volunteers spent a day teaching students at the Guadalupe School in Salt Lake, which is a school for economically disadvantaged children. For many of the volunteers, the Junior Achievement service day was as rewarding as it was fun.

Being able to teach the kids through the Junior Achievement program was an experience I’ll never forget. Standing in front of 30 young kids teaching them about basic yet important financial principles was not only fun but was very rewarding. I felt that it was a success when one of the kids asked if I could come back and teach them every day. I hope to volunteer with the program as often as I can.

Junior Achievement was a great opportunity to volunteer in a way that I hadn’t thought of before. Teaching a class of students about personal finance was not only fun but extremely rewarding. I ended up taking far more away from the experience than I initially expected.

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-Brent Bement, CPA Leadership Academy Graduate

-Mindy Finlinson, CPA Leadership Academy Graduate

Leadership Academy

What the 2015-16 Leadership Academy Class is Saying The Leadership Academy group takes a break from their learning session for game time.

What I learned most from participating in the Leadership Academy was about the wide range of my profession and colleagues. I most enjoyed the sharing of experiences and ideas among the participants and facilitators. Having the direct contact with my colleagues in industry was very helpful to me as I work in public accounting with my industry clients.

-Stephanie Russell, CPA

The Future is Bright Now that there has been four years of academies, the effects are becoming apparent within the profession.

Many of the past years’ graduates are excelling in various leadership roles. The Academy and the curriculum will only get better and more tailored from here. It’s exciting to imagine what kinds of things graduates will be accomplishing in the coming years. The future is bright. What a wonderful opportunity CPAs in the state of Utah have with their very own Leadership Academy — something only a handful of states offer.

If you would like to participate in the UACPA Leadership Academy next year, the application period begins April 2016. You can find the application form at uacpa.org/ leadershipacademy. ■ Braden S. Thompson is the Membership Development Coordinator for the Utah Association of CPAs.

The Leadership Academy was a great opportunity to interact with other CPAs from a variety of backgrounds and to build a good network within the profession. The training at the Academy was geared toward improving leadership skill and developing the strengths in ourselves and others.

The instructors were knowledgeable and the training was very interactive which made it effective and fun. I really enjoyed my interaction with the other individuals at the Leadership Academy as well as the instructors, a lot of great people.

-LaGrand Lauritzen, CPA My job keeps me very busy so it was nice to get away and invest in myself; the training and networking was invaluable. I thoroughly enjoyed getting to know others at the same level, careerwise.

-Kandice Lambert, CPA

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Closing the Gaap — Women in Accounting

Debbie Davis, CPA Interview By Ariane Gibson, CPA

D

ebbie Davis is the Internal Audit Director for the Utah State Office of Education. She graduated from Brigham Young University. Debbie discusses her love of travel, BYU sports, and the driving factors in her career.

Tell us about yourself and your background.

I am the second of eight kids, 4 brothers, 3 sisters and Utah born and raised. I grew up in Murray, moved to Provo when I was 15 and after graduating from BYU have lived in various cities in Davis County. I worked my way through high school and college at Orange Julius and Sugar Shack — yes I make a mean cotton candy — and then as a student accountant in the Business Office at the Wilk at BYU. I graduated from BYU in 2001 and have worked in government accounting and auditing since then.

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What led you to a career as a CPA? My dad ran several fast food and clothing stores when I was a kid. When I came of an age to start working, my parents first let me help them with the books of those businesses. My love of spreadsheets and reconciling started there, though I eventually graduated to serving food. I learned the basics of accounting working for my dad – inventory management, cash receipting and disbursements, payroll, etc. In considering various areas I might study while at BYU, I was considering business and accounting. My grandpa advised me that going from business to accounting would be more challenging than going from accounting to business so if I was considering both, I should start in accounting. And that is what I did, graduating with an integrated Bachelors and Masters of Accountancy degree from BYU and working my way through passing the CPA exam.

Closing the GAAP

What do you enjoy doing outside of work?

Do you have a mentor? How have mentors helped you in your career?

I love spending time with my family, particularly my 19-going-on-20 nieces and nephews. We have several traditions that I am big on maintaining, like attending the Spanish Fork Rodeo every July. We also love watching BYU sports together — any sport, one team.

Go Cougs! I have played volleyball on a community team for several years; this year I branched out and started a new team at a more competitive level. Attitude makes a difference. I also love to travel to new places with friends and family; we live in an amazing world and there is much to see and experience. Favorite trips include Alaska, South Carolina, and Glenwood Springs, Colorado — which has an awesome segway tour and paragliding!

Though I don’t know that I’ve used the title, I do have a mentor and I would also say friend. My mentor, is a woman who coached me through my early days of auditing, taught me the ins and outs of single audits, kept me sane the year I supervised the overall State of Utah CAFR Audit and Single Audit and who I still call to ask questions and bounce ideas. She also taught me the importance of work/life balance and constantly encourages me to keep progressing.

What are some highlights in your life?

I served a mission for my church for 18 months in Tokyo, Japan. A year after returning, and after my first year in the Masters of Accountancy program at BYU, I was selected to go on a study abroad to Asia with a group of MAcc and MBA students and professors. Over several weeks we visited Japan, China, Singapore, Vietnam, Thailand, and Hong Kong. In each country we were able to visit businesses, from a huge electronics company in Japan to a small plastic chair company in Vietnam, offer suggestions for improvement, and learn the culture. It was a once in a lifetime opportunity I’m very thankful for.

In February of 2015 I accepted a job as the Internal Audit Director for the Utah State Board of Education.

In the midst of organizational change, I was able to hire five internal auditors to work with me. I have a diverse group with incredible skillsets and we are committed to improvement, providing value at the highest level and contributing to make education in Utah the best in the nation.

What advice do you live by?

“Desire is the pilot of the soul.” This is a quote by Sterling W. Sill that is in a calendar my sister made me several years ago. To me it means that we do what we want to do, so it is important to be committed to the things that will help you go where you really want to go and be what you really want to be.

What advice would you give other female professionals?

Be confident doing what you love. We each have a circle of influence and I believe it is larger than we know, so be confident, have integrity, and respect others. ■

Ariane Gibson, CPA, is an Audit Senior in the Office of the Utah State Auditor. She graduated from the MAcc program at the University of Utah in 2011. Ariane can be reached at agibson@utah.gov.

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UACPA Open House

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Winter Conference, Council

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Meet the Executive Board

Q: How do you see the CGMA Designation Benefitting the Business Community?

Jonyce Bullock, CPA President I see the CGMA as a way to enhance the value of our members in Business and Management. The competency framework provides a great tool for members to gain competencies outside of the public accounting arena.

Hollie Andrus, CPA President-Elect When I was deciding my major, one of the reasons I chose accounting was the incredible diversity of the profession. With one degree, I had so many avenues available to me. In our profession of increased specialization, the CGMA-designation provides respected credentials to an accounting professional who chooses a business and management avenue.

Sherie Charlesworth, CPA Secretary

Dan Griffiths, CPA AICPA Council Representative

Businesses can benefit by hiring CGMA certified employees. The CGMA certified employees have demonstrated their knowledge of business management, operations, and strategy. The skills that a CGMA possesses can help make critical business decisions and help direct their company to reach new performance goals.

The CGMA designation is about professionalizing the management accounting space.

With a significant majority of accounting graduates now bypassing public accounting and going straight to industry, CGMA will create a professional home for those graduates and over time will “raise the bar� on professional development in that arena.

Josh Turnbow, CPA ProNet After listening to the discussion from the AICPA, I understand why the push and where the AICPA views this as a valuable designation. It will be critical for the CPA community to review and understand the AICPA dialogue.

Not pictured: Gavin Hutchinson, Vice President; Kyle Pexton, Treasurer; Brett Hugie, Member at Large 34

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Larry Deppe, CPA Member at Large Many do not spend their entire careers in public accounting and find themselves working for businesses and other entities.

The CGMA complements the CPA nicely as the knowledge gained as a practicing CPA and the knowledge need to complete the CGMA enables an individual to be a problem solver, which is a major need in today's world.

Board Bullets

News from the UACPA Board Here is a glance at what has been happening at the Utah Association of CPAs:

Joint Venture Paul Skeen, CPA Immediate Past President I may be in the minority on this issue, but I see the CGMA designation as one that could ultimately devalue the prestigious CPA designation. While I disagree with the approach, the AICPA should be commended for their efforts to make sure the CPA brand remains relevant and member needs are being met.

• Tim Christian, Chair of the AICPA, lead a discussion on the CGMA initiative at the November board meeting. He began the presentation discussing trends that are affecting our profession with regards to international shifts, economics, technology, regulations, talent and competition. We’re seeing an increase in the demand for accounting graduates; however, there is concern that individuals taking the CPA exam is flatlining to declining depending upon what area of the profession they’re employed. The trend shows that one in three become CPAs. • International accounting bodies are competing for our assurance services and relevance in the global landscape. The AICPA and CIMA (Chartered Institute of Management Accountants) have joined forces to protect, promote and grow an evolving accounting profession. By partnering, the AICPA and CIMA believe they can drive greater consistency, quality and relevance of public and management accounting and enhance advocacy as the combined membership has over 600,000 professionals.

• The Executive Board voted and passed the following resolution: We will join forces to create a new accounting association while continuing to operate the membership bodies our communities have long trusted. Together we will significantly enhance our advocacy, member employability, and our abilities to advance the accounting profession around the world.

Susan Speirs, CPA CEO As we continue to see growth in the international management accounting area, the CGMA will create a home for CPAs and accountants in the managerial accounting arena and provide them the resources and networking opportunities they’re seeking. The CGMA designation will provide an individual with a highly respected credential in the managerial accounting space.

Audit

• Haynie & Company presented the audited financial statements for the year ended March 31, 2015. A clean unmodified opinion was given.

Joint Venture

• Craig and Ryan Peterson have provided an update on what the 2016 legislative session will look like. Read more about it on page 25.

Ethics Requirement

• The State Board of Accountancy is currently calendaring an ethics hearing in the January meeting which would add a four hour ethics requirement as part of the 80 hours of CPE licensees are required to have as part of licensure renewal. The meeting is scheduled for January 6, 2016.

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Meet the UACPA Staff

Q: What are you most looking forward to in 2016?

Amy Spencer Marketing & Communications Manager

April Deneault CPE Manager I’m looking forward to setting new goals for the year. I’m excited to watch my daughter at her gymnastics meets and to see how she progresses. I am also looking forward to my annual trip to Moab with my mom and two sisters in June.

With a milestone birthday coming up, I've put pressure on myself to write out a bucket list, mark off some of those items and take an epic vacation. I'm also looking forward to being the Director of the Special Events Committee for the Junior League of Salt Lake City.

Braden Thompson Membership Development Coordinator

Tom Horn Financial Director

I have a lot to look forward to in 2016.

Probably most of all I’m looking forward to being done with my master’s degree. I love learning, but I also love having free time.

Being semi-retired, I’m looking forward to golfing, skiing, providing we get some excellent snow during the year, and exploring more of the back country in Utah. Also, I plan on relaxing with family and hope for continued good health

Looking to Hire a CPA? Let the UACPA Help you find the right candidate.

UACPA Members can post and view job listings for free at www.uacpa.org.

Get your job posted for 30 days by sending the description to Amy Spencer, as@uacpa.org.

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MEet a uacpa member

Five Minutes with Brent Bement Brent Bement, CPA spent most of his youth in North Salt Lake. The fifth of six kids, Bement grew up playing football and lacrosse in high school and played lacrosse at the University of Utah where he received his Bachelor's and Master's in accounting.

Bement participated in the 2015-2016 Leadership Academy class.

What led you to become a CPA? My dad is a CPA and so is my older brother. It just seemed like the right place to start for a great career. It also helped that I enjoyed my first accounting classes.

What would suprise people to know about you? I haven’t needed to purchase meat for my family since 2010. I’ve been able to supply them with deer and elk meat instead.

What would you be doing if you were not a CPA? I might be working with underprivileged kids. I’ve been coordinating activities for kids in a

local youth program for the last seven years. It’s been a very rewarding experience.

What do you like to do ouside of work? I am a happy man when I am outdoors. Any stress and worry seems to disappear at high altitudes. Lately, I’ve been hiking and backpacking at any chance I can get, whether it’s a short couple mile hike or a multi-day 30 mile backpacking trip. I also enjoy mountain biking, archery hunting, target shooting, and of course spending time with my wife and three kids.

What has been one of your most notable outdoor adventures? A couple of years ago a few friends and I went on a multi-day backpacking trip into the High Uintas. We hiked over 10 miles and climbed several thousand feet to arrive at one of the most awe-inspiring locations in the world.

We camped near Red Castle and its surrounding lakes for the next few

days. Being that far from any contact with the world was a bit daunting, especially as multiple storms rolled in, but the feeling of conquering nature and surviving in the wilderness is addictive.

What has been your proudest moment as a CPA? The time I saved a client more than $120,000 in taxes.

What are some of your goals as a professional? When I have an assignment or project, my goal is to improve whatever part of that to make it more enjoyable and efficient for me and my client. I like to remove time-wasting tasks or procedures that don’t add value and I plan to continue doing that as I progress in my career.

What advice do you live by? Some of the advice I live by is to enjoy life by creating rewarding, memorable experiences. I think life is enjoyed by doing and creating rather than letting it pass us by. ■ the journal entry | January 2016

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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 and their clients a 10% discount on any of their ReadySuite solutions. Contact Trevor Mickelson, your Industry Specialist, at 720-4904531, or Trevor.Mickelson@agilityrecovery.com.

CCH

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

World Benefit Solutions

UACPA members receive discounts on group medical insurance, dental, life and disability, vision and individual insurance policies. For more information, contact Andrew Stott, astott@worldbenefitsolutions.com or 801-759-0421.

Hertz

UACPA members and affiliates are entitled to receive a variety of benefits from Hertz auto rentals. Take advantage of your member discount by calling 800-654-3131 and mention CDP #2079602.

JoS. A Bank Men's Clothing

The retailer offers UACPA members and affiliates 20% off all regularly priced merchandise.

ADP

ADP offers free payroll and free 401k services to referring UACPA Members and its affiliates. Please contact Kenny McKenna at 801-956-7850 or kenny.mckenna@adp.com for more information.

PUBLIC PRACTICE • Allred Jackson • CBIZ • Cook Martin Poulson • Davis & Bott • Eide Bailly • Hansen Bradshaw Malmrose & Erickson • Hawkins Cloward & Simister • HJ & Associates • Jones Simkins • Mantyla McReynolds • Pinnacle Accountancy Group • Pinnock, Robbins, Posey & Richins • PricewaterhouseCoopers • Savage Esplin & Radmall • Squire • Stayner Bates & Jensen INDUSTRY • LDS Church Auditing Department • Workers Compensation Fund

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 40% on office products, printing, technology and furniture. Visit uacpa.org to learn more.

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Is your firm 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

CPE Where You Want It, When You Want It!

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

Larry Deppe 801-626-7838 ldeppe1@weber.edu

March

With just a click you can earn 2 to 8 hours of CPE credit from the most experienced CPAs across the country from wherever you have a computer and Internet connection.

To view a list of upcoming webcasts log on to uacpa.org, Education & Events and select “Webinars & Webcasts."

Mark Anderson 801-532-2200 manderson@eidebailly.com

Classified Ads CPE Approval — Does This Qualify?

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 801-532-2200 savis@eidebailly.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

To place your classified advertisement and reach Utah CPAs, contact the UACPA at mail@uapca.org, Utah Practice For Sale: Salt Lake City Area Partnership or Merger Opportunity - seeking partner to acquiring up to 50% of practice (about $475K gross). There is a knowledgeable staff in place, a strong fee structure, tax work (70%), and accounting services (30%). For more information, please call 1-800-397-0249 or visit www.AccountingPracticeSales.com 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@accountingpracticesales.com.

Interested in Buying a Practice? See local and nationwide listings at www.AccountingPracticeSales.com and register for free email updates. Or call us at 800-397-0249. the journal entry | January 2016

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Utah Association of CPAs 136 S. Main Street, Suite 510 Salt Lake City, UT 84101

Nonprofit Org. U.S. Postage

PAID Salt Lake City, UT Permit No. 1996

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