The Journal Entry - January

January

2015,

Vol.

I

The 2015 Legislative Preview Sen. Orrin Hatch, Congresswoman Mia Love and the CPAs in the legislature tell what they are doing

Political Action at Any Level

Make a difference when running for office or making a PAC contribution

By Clark Wilkinson www.uacpa.org

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The

Legislative

Issue

Mission,Vision,Values

ExecutiveBoard

Mission

president................................................. Paul O. Skeen president-elect..................................... Jonyce Bullock vice president..................................... Hollie S. Andrus secretary................................................... Mark Palmer treasurer................................................. Kyle J. Pexton member-at-large....................................Larry A. Deppe immediate past president.................. Kent L. Thomas AICPA Council..........................................Dan Griffiths CEO........................................................ Susan A. Speirs managing editor.................................... Amy Spencer

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.

The Journal Entry is published quarterly, by the UACPA 1240 E. 2100 South, Suite 500 Salt Lake City, UT 84106 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 Development

Send address changes to UACPA 1240 E. 2100 South, Suite 500 Salt Lake City, UT 84106 email: membership@uacpa.org or log on to www.uacpa.org to update your address and member profile online

The UACPA supports and encourages continuing education and leadership development.

Cover photo - Kristan Jacobsen, kristanjacobsen.com

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

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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in this issue | January 2015

feature story

CPAs Make a Difference in Utah through Politics

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New Members............................................................................................4 Movers & Shakers......................................................................................5 President's Message ..................................................................................6 Message from the CEO............................................................................. 7 Cover Story: Making a Difference for CPAs and Utah.........................8 Understanding the UACPA-PAC.......................................................... 12 Sen. Orrin Hatch and Rep. Mia Love talk 2015................................... 14 CPAs Representing CPAs in Utah......................................................... 16 How the UACPA Has Been Involved in the Legislature .................... 19 By the Numbers: Voter Facts.................................................................22 Enhancing the Profession Through the CPA Foundation..................23 New SAARS 21 Helps in Accounting and Reporting.........................25 Implementing the New Revenue Recogntion Standard ....................27

Introducing Revenue Recognition to Your Business

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Improve How You Manage Your Data

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Women in Accounting: Melanie Beauchert, CPA...............................30 Six Tips for Using Data More Wisely....................................................32 Meet a Member: Travis Nielsen.............................................................35 Meet the UACPA Board .........................................................................36 Quarterly Question: UACPA Staff.........................................................37 UACPA Photos, Leadership Academy 2014........................................38

Meet a Member: Travis Nielsen

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Education..................................................................................................42 the journal entry | January 2015

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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 November 20, 2014.

Fellows

Brad Barlow Church of Jesus Christ of LDS Brett Bunker PricewaterhouseCoopers LLP Lindsey Burch Leucadia Financial Corporation Michael Criddle Eide Bailly

Boyd Johnson Wasatch Property Management

Rachel Staheli The Leverich Group

Chad Johansen KPMG LLP

Brandy Staker Caldwell, Coombs & Foley, LLP

Kimberly Labrum Hawkins Cloward & Simister, LC

Peter Taylor

Samuel Lake Eide Bailly

Tom Darais

Randall Loveridge Teuscher Ruf & Walpole, LLC

Jason Dean Mantyla McReynolds LLC

Erika Lusk HJ & Associates LLC

Sterling DeVard Intermountain Farmers Association

Tiffany Nguyen| PricewaterhouseCoopers LLP

Phillip Hansen

Chantel Ockerman

Tate Hansen PricewaterhouseCoopers LLP

Daniel Payne

Alexis Harrison Tanner LLC Steven Hurd HJ & Associates LLC Erin Jacobs Haynie & Company Charles Jenkins Eide Bailly

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Amber Robbins Larson & Company, PC Timothy Rodee Matthew Sadler PricewaterhouseCoopers LLP Rebecca Shiew Verendar Soni

Scott Thompson Jordan Wheeler Sadler, Gibb & Associates Dan Youse

Student Affiliates

Brigham Young University – 1 Dixie State University – 8 University of Utah – 7 Utah Valley University – 5 Weber State University – 8 Western Governors University – 1 Westminster – 30

Movers & Shakers

Movers&Shakers Scott L. Robinson has been named an Audit Partner at Tanner LLC. The Brigham Young University graduate brings more than 15 years of experience in serving public and private entities in the technology, software, medical, manufacturing and distribution, Scott L. Robinson construction and not-for-profit technology sectors. He comes with experience in assisting high-growth venture capital and private equity backed companies and also several successful due diligence and acquisition efforts.

Several UACPA members have been appointed to serve the AICPA for the 2014 - 2015 year.

Troy K. Lewis will Chair the Tax Executive Committee for a twoyear term. The Tax Executive Committee is authorized to act on behalf of the Institute in tax Troy K. Lewis matters and oversees the work of the 14 other tax committees and technical resource panels of the Tax Section. Lewis has been active in the AICPA for more than 15 years and has served on several University of Utah professor and Director of the School volunteer committees. Lewis is a of Accounting Martha Eining was awarded with the past president of the UACPA. Pathfinder Award at the 2014 Women & Business Brandon M. Allfrey will serve on Conference put on by the Salt Lake Chamber. The the Tax Management Committee.

Brandon M. Pathfinder Awards are presented annually to community Allfrey Aaron J. Clark has been asked leaders who create new paths promoting the development to join the AICPA's Business and recognition of women in business. Eining has Solutions Implementations mentored and provided guidance to countless women Task Force as well as the CITP as they receive their education at the University of Champion Program. Steven M. Utah. Eining received her Ph.D. from Oklahoma State Glover will be serving on the University in accounting and information systems and Audit Issues Task Force as an has presented her research and has been published in observer and on the Auditing various journals. Her research interestes have spanned Standards Board as a member. from professional skepticism and management fraud Aaron J. Clark Tim Larsen continues to serve on issues to ethical issues in auditing and the impact of the Joint Trial Board and Practice technology.

Advisory Group. Eric Woodward will serve on the Airline Revenue Recognition Task Force.

GALLINA LLP is joining practices with public accounting firm Leverich Group as of January 1, 2015.

The AICPA appointed Marriot School of Management Leverich Group partners, Joseph P. Leverich and Steve associate dean Steve Glover to its Auditing Standards Scoggan, will transition into the 47-member partner Board. Glover will serve a three-year term and meet group at GALLINA LLP. The firm, new to Utah, will now with the board four times a year to update and revise the have more than 300 staff. Larry Taylor, GALLINA LLP's standards followed by the AICPA's 400,000 members.

Managing Partner says, "the business philosophies and industries [of GALINA LLP and the Leverich Group] Utah Business Magazine recognized three CPA firms in served are very similar. Both firms believe in developing their 2014 list of Best Companies to Work For. In the long-term relationships while working with clients Small Business category, Mantyla McReynolds and Squire to promote the success of their business. The firm is were honored and HintonBurdick CPA and Advisors and headquartered in Roseville, CA and has been serving Haynie and Company were runners up. clients since 1972. the journal entry | January 2015

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President's Message

President's Message

Paul Skeen, CPA No one really cares about how much we work

In many of my messages this past year, I have shared that my dad was an avid hunter and, even more so, an avid supporter and volunteer for the Boys Scouts of America. I was taught from a very young age that I had a responsibility to leave things better than I found them. We, as stewards of our profession, have this same responsibility.

In the past three years, the accounting profession has set a record for the number of graduates. This is good news as we also see an impending staff shortage as baby boomers retire. Despite the record number of graduates, the number of CPA exam sections taken has remained flat.

Fewer accounting graduates are taking the extra steps to become CPAs. One could take on a chastising tone toward incoming professionals for lacking drive and ambition, or for flat out being lazy. However, I question if these new entrants fully understand the financial and professional opportunities that await them as CPAs. I think back on the opportunities that I have been afforded, both professionally and personally, as a result of becoming a CPA and can’t help but want these same opportunities for new entrants.

We each decide on how we present our profession to students, family, friends and the community. Are we sharing it in a positive light? We can choose to wear the sacrifices we’ve made, the long hours we’ve worked, the stress we’ve carried and myriad other things as badges of honor, but quite frankly, no one really cares. Our staff doesn’t — they have their own concerns to think about.

If we promote the never-ending list of opportunities that come from being part of the profession, the next generation will listen. We need to recognize that

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millennials and future generations view and value things differently. They want to be treated like partners right from the start and they thrive on connections. With some, there is certainly an element of impatience as they grew up in a different world.

If we recognize the different motivation drivers and share our knowledge, future generations will step up to the profession and see opportunities in a new light. If we succeed as mentors for the profession, we will not only have a loyal and effective team, but we will leave a lasting mark on the profession and pave the way for the future.

CEO’s message

CEO's Message

Susan Speirs, CPA

W

elcome to the legislative issue of The Journal Entry!

As you peruse this edition, we invite you to see how your colleagues have embraced the legislative process to enhance the lives of others and to promote a better community and state for us to live.

The UACPA was involved with several initiatives in the 2014 legislative session. For several years, our association has been involved with the financial literacy efforts of teaching our students to be good stewards of their finances once they graduate. Last year, we played a huge role in the bi-partisan passage of SB40, which amends prior legislation provisions relating to financial and economic literacy education. In short, the bill requires the State Board of Education to: • Contract with a provider to develop an online, end-of-course assessment for students • Identify and make available to teachers online resources for financial and economic literacy education • Provide professional development opportunities in financial and economic literacy for teachers • Implement a teacher endorsement in general financial literacy • Administer the general financial literacy course in the same manner as other core curriculum courses for grades 9 though 12 • Adopt course standards and objectives for the financial literacy course that addresses certain topics.

In addition, we were able to make and win the argument that if we’re going to require our children to graduate

with a half credit of financial literacy, we need to provide ongoing funding as well as provide our instructors the tools they need to teach their students. We’ve been able to create a positive relationship with the State Office of Education as they move forward rewriting and updating the General Financial Literacy Standards to meet the needs of the financial environment we live.

In this issues, you will also read about Dan Griffiths and his work with Financial Ready Utah and Shalaun Howell’s efforts with ongoing changes to legislation affecting our non-profit organizations across the state.

We’re fortunate to have three CPAs serving in our own state legislature. As an association we’re thrilled that our state representatives and senators understand the importance of our profession as they wrestle with the potential financial consequences of bills that cross their desks.

Throughout the year, our office receives calls from our legislators asking for help as they analyze issues. We thank you for your help as we’re able to connect them with members who can assist in making sense out of chaos, or putting order to chaos in a way that laymen can easily understand. As we see issues on the horizon that affect our own profession, we challenge you to understand the legislative process and be willing to be involved.

Best wishes for a Happy New Year!

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Making a Difference for CPAs and Utah Hard work IS rewarding when getting into politics

By Clark Wilkinson, CPA

Feature story

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etween the ages of 5 and 15, I had the opportunity, on a regular basis in the early months of the year, to go to the State Capitol with my mother and siblings to watch my father who was a state representative on the floor of the State House. Later, in my teens and early 20s, I was able to attend my father’s court room and hear cases being discussed on a variety of topics. These experiences exposed me to two out of the three branches of our government — the legislative and the judicial.

My wonderful parents conscientiously taught their children loyalty to three things: family, God, and the community.

We all know the history of this country; the Declaration of Independence and the accompanying war that followed, leading to the forming of our great Constitution. Many of our forefathers paid a great price for the ensuing freedoms that we all know and enjoy, and most of us take advantage of these wonderful freedoms daily. In fact, many of us have taken the opportunity to start businesses, and therefore participate in this country’s incredible free enterprise system. These freedoms need to be protected.

So how does one go about our business and still protect these freedoms? Few of us will actually serve in an elected office in our lifetime, but in the fall of 2009, I ran for State Senate after Governor Herbert selected Greg Bell (who was my State Senator at the time) to be the Lieutenant Governor. Nine of us threw our hats into the ring for an intense five weeks, attempting to entice the vote of approximately 260 delegates. What a wonderful experience this was for me and my family. Although from the first moment, I knew I was a long shot I felt strongly that the attempt needed to be made. For those five weeks I dedicated my waking hours to knocking on doors and meeting with delegates. I quickly came to appreciate the time and effort that our elected officials devote into serving their constituents. While the outcome was initially disappointing (I finished fifth), I recognized, even in the moment, what a great experience it had been.

What if one is not inclined to run for office? How else might one get involved? Utah has a system that allows many to participate at a grassroots level. During the month of March, civic-minded citizens gather at the journal entry | January 2015

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Feature Story neighbor’s homes, local schools, city halls, etc. to participate in the caucuses of the party of their choice.

It is here that we are able to become a delegate. This process generally does not involve a lot of time or money. In fact, the night of the meeting is when you would petition your friends and neighbors to elect you. Although the caucus system is being challenged and potentially will change in the State of Utah, there will likely always be a grassroots entrance level to involvement in the process.

Consider now other grassroots participation that involves the CPA profession. Why and how do we get involved with issues that affect the way we work and the issues we face?

Involvement is a means to protect the integrity of our profession, and by doing so, protecting all of society.

Enumerating the many ways CPAs protect the integrity of this country’s free enterprise system is too lengthy for this venue, but is experienced daily by those engaged in the representation of clients to the IRS. Protecting this profession’s ability to do so requires constant vigilance.

The AICPA and the UACPA have committees dedicated to this cause that all are welcome to join. One example is the Federal Key Person Committee on the AICPA level, which lobbies the CPA profession issues before Federal Congressman and Senators. The UACPA-PAC (which I describe on page 12) is a vehicle that allows any CPA to become a Trustee and influence how and where our PAC dollars are distributed, the goal of which is to, of course, have the most impact in furthering and protecting the rights, abilities and efficacy of our 10

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Feature Story profession.

There are many more ways one can become involved and an article of this length does not allow for great detail of all avenues of participation. At the very minimum, a very generous donation allows your interests to be protected.

Let me conclude with a brief example: After losing a good friend to cancer, my wife, Janie, and I were concerned about his widow and three children who were left without a provider. Lisa, a wonderful cook, had a desire to teach cooking classes and sell baked goods from her home kitchen, enabling her to stay home with her children and still provide for their needs. The laws in place did not allow her to do this. My wife thought this was unconscionable, and she worked hard with Representative Roger Barrus (our State Representative at the time) in getting House Bill 339, the ‘Cottage Kitchen’ bill, which allowed for a revision of state requirements and licensing, to the State House and State Senate floors.

Janie, while very bright and capable, was a homemaker with no experience in this process. Nevertheless, she researched, prepared, and met with the Department of Agriculture, quickly winning their approval. She lobbied at the State Capitol for legislators support, and she testified before committees.

On the last night of the session, Janie and I drove with our four young children to the Capitol as H.B. 339 passed through both the House and Senate. What an exhilarating feeling and a sense of fulfillment to have potentially blessed the lives of not just Lisa and her children, but untold numbers of others in our state who desired to be self-sufficient and provide for their families.

We had made a difference. Likewise, all can experience joy and satisfaction while laboring for the protection and enhancement of our profession through the democratic process.

A few weeks after the victory, a new client sat in my office, enthusiastically telling me about a new bill that had been passed that would allow her to market a specialty food item during the Christmas season.

Smiling, I simply responded that I was very aware of that bill. n

Clark A. Wilkinson, MBA, CPA/PFS, CGMA is owner of Salt Lake City firm Wilkinson, Cooley & Company, PC, CPAs. His practice is focused on financial planning for businesses and individuals, business consulting, attestation work, and business and individual taxes. He was awarded the UACPA's CPA in Public Practice in 2009. He serves on many boards including the advisory board for the USU School of Accountancy. He serves as chair of the UACPA-PAC and the AICPA Federal Key Person Committee where he has had the opportunity to lobby for the CPA profession in Washington, D.C.

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Feature Story

Everything You Need to Know About the UACPA PAC

By Clark Wilkinson, CPA

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he Committee for Political Action of Utah Certified Public Accountants (UACPA-PAC) was established by CPAs licensed in Utah and is dedicated to the protection, preservation and furtherance of the free enterprise system, to the strengthening of the American economic system and, in particular, to the protection and advancement of the CPA profession. Contributions are received to further these objectives.

The PAC is administered by a Board of Trustees, all of whom must be members (by contribution) of the Committee in the year of election and in each year of service. The Board of Trustees shall be comprised of at least five members as determined by the Board of Trustees.

Members of the Board of Trustees serve a five-year term with at least one member elected each year by the members of the Committee. Each member of the Board of 12

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Trustees shall serve no more than two terms consecutively.

Membership in the Committee is open to all CPAs. The Board of Trustees may expend the monies contributed to assist, by means of direct financial contributions, candidates for election to state or local public office who it is believed are in general agreement with the objectives of the Committee. The Committee is not affiliated with any political party.

The officers of the PAC are a chairman, vice chairman and a secretary-treasurer, all of whom shall be elected by the Board of Trustees. These three officers comprise the Executive Committee of the Board of Trustees. Each officer is elected to serve a two-year term and serves for a maximum of two terms consecutively, determined separately for each office.

Feature Story The Secretary-Treasurer is the financial officer of the Committee. This position carries with it great responsibilities, including keeping a detailed account of all contributions made to the committee, the full name, profession and mailing address of every person making a contribution and the date and amount thereof, all expenditures made by or on behalf of the Committee, the full name and address (occupation and principal place of business) of every person to whom any expenditure is made, the date and amount thereof, and the name and address of, and office sought by, each candidate on whose behalf such expenditure is made, and any other records as required by either state or federal law.

polling the trustees, and obtaining the approval for the donation of at least a majority of the trustees then serving.

The fiscal year of the Committee is maintained on a calendar-year basis. An annual meeting of the Committee is held upon 30 days notice at a time and place each year as determined by the Board of Trustees. This is generally the second Friday in December. Traditionally notice of this meeting has been given through The Journal Entry to all members of the UACPA. Any member of the UACPA is invited to attend. The Board of Trustees meet at least two times annually. This requirement can be satisfied by means of email communications or other technological advancements. As with many organizations, a quorum or three or more trustees is needed to ratify any action.

One of the most important obligations of the trustees is approving political donations during any meeting of the trustees, or by the chairman and one other officer or trustee

Over the years these funds have been contributed to candidates for State offices such as State Senate, State House, Governor, State Treasurer, State Auditor, etc.

The Trustees have made a concentrated effort to make sure funds have been donated to CPAs running for these positions as well.

The Committee keeps complete books and records of account. The Board of Trustees and the Secretary Treasurer each have authority to institute procedures for internal controls of the funds. The books and records are inspected every second year, at the end of a Utah legislative cycle, by at least two members of the Board of Trustees who are not signatories to bank or other depository accounts holding funds of the Committee. The funds of the Committee are deposited in a bank (or other depositor accounts) as the Board of Trustees may select.

One can make a donation to the PAC at any time. At the very minimum, one has the option, when paying your yearly dues, to donate with the dues payment.

The current trustees of the PAC are Clark Wilkinson, Bryce Buchanan, Douglas Hardy, Timothy Christensen, Greg Randall, Chesley Erickson, and Brent Hall. The PAC welcomes any CPA that would like to serve as a trustee. n

Get Involved!

Get Involved!

The Utah CPA PAC works to enhance the image of the profession and increase the incluence of the Association with decision makers in Utah.

Learn more by searching "PAC" at uacpa.org

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Feature Story

Sen. Orrin Hatch and Rep. Mia Love Tell the UACPA About Their 2015 Initiatives V

eteran Senator Orrin Hatch and newly-elected Congresswoman Mia Love are storming into 2015 with intiatives that are destined to be front-page news stories.

In his seventh term as Utah's senator, Republican Orrin Hatch isn't slowing down. He recently released a 339-page document detailing "Comprehensive Tax Reform for 2015 and Beyond." The chair of the Senate Finance Committee explains the action that will be taken to make these things happen. Newcomer Mia Love is committed to be a voice to Utahns by advancing policies that improve the economy, education and healthcare.

Sen. Hatch and Rep. Love tell the UACPA about their priorities in 2015.

U.S. Senator Orrin Hatch (R-Utah) Ranking Member of the Senate Finance Committee "The 114th Congress will provide a real opportunity for Congress to move an aggressive agenda that will put the American economy back on a strong growth path. In my view, this means finding areas in which we can work together and advance bipartisan, job-creating initiatives. At the top of that list, is working towards a bipartisan overhaul of the U.S. tax code to create a simpler, fairer tax system that promotes savings and investment and puts American job creators at a competitive advantage.

Comprehensive tax reform is no longer optional — it’s essential if we’re going to get our economy moving again.

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Feature Story And promoting growth in jobs and the economy must be our first and most important goal.

In December, I released a report drafted by my staff on the Senate Finance Committee, titled “Comprehensive Tax Reform for 2015 and Beyond" [view online at www.finance. senate.gov/newsroom/ranking/release/?id=0df91455-c89549b4-9044-d8fd9873b1dc ] This report outlines the major issues policymakers will have to confront as we undertake tax reform. The report is not a tax reform plan, and is instead a discussion of ideas and principles that I hope will be the first step in a renewed bipartisan effort to reform our nation’s tax code in the very near future.

As the report outlines in detail, comprehensive tax reform should embrace seven key principles: economic growth, fairness, simplicity, permanence, competitiveness, promoting savings and investments, and revenue neutrality.

I encourage every person in the tax community to read this report.

In the coming weeks and months, I plan to reveal additional steps. I plan to involve many of my colleagues on both sides of the aisle, particularly those who will be joining me on the Senate Finance Committee. My hope is that, as this conversation continues, a path toward real bipartisan tax reform will begin to take shape. Of course, it’ll take more than that. It will take hard work, commitment, and, of course, compromise.

In the meantime, I will continue to promote these guiding principles moving forward in the new Congress, and I am hopeful my colleagues on both sides of the aisle will engage in an active and productive debate on how to move comprehensive tax reform forward.

I’ve said it many times before and I’ll say it again: I’m willing to work with anyone — Republican or Democrat — to reform our nation’s tax code. And, I look forward to continuing this effort in the 114th Congress and, if necessary, beyond."

U.S. Representative Mia Love Utah's 4th Congressional District Quality Education. As a mother with three children enrolled in public schools, I believe that Utah—not the

federal government—knows what is best for Utah's students. I trust Utah teachers and Utah parents over Washington bureaucrats, and I want to give our parents and teachers as much flexibility as possible when it comes to making education decisions for our children.

Improving the Economy. During my term as mayor of Saratoga Springs, I focused my time and energy on economic development. To promote job creation, I understand the importance of keeping taxes low and eliminating unnecessary red tape. I have support from Utah's business community, and in particular from small businesses, because of my strong record of economic development during my term as mayor of Saratoga Springs.

Repealing Obamacare. Like the vast majority of Utahns, I oppose Obamacare, but more importantly, I have a plan for what to replace it with. My health care plan calls for common sense solutions that empower patients and doctors, reduce costs, increase competition, and place more freedom and health care options back into the hands of Utahns. n the journal entry | January 2015

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Feature Story

Meet the CPAs Serving in the Legislature With three active CPAs serving in the legislature, the interests of the profession are a priority on their agendas. Sen. Wayne Niederhauser and Sen. Curtis Bramble tell us what they are doing in 2015 and share their insight on the future of the profession.

along by linking up with us at www. senatecloud.com.

Sen. Wayne L. Niederhauser, CPA Utah Senate District 9

The Utah State University graduate, has represented Utah Senate District 9 (most of Sandy and the east portion of Little Cottonwood Canyon) since 2006. He and his wife, Melissa, have five children and he recently became grandparents. A 25-year resident of Sandy, Niederhauser co-owns a real estate development company in West Jordan that focuses on residential and commercial products with an emphasis on enhancing a quality lifestyle and the surrounding communities. Niederhauser serves on boards for Envision Utah, the Sports Commission, Shakespearean festival and Visit Salt Lake. Neiderhauser says he enjoys the outdoors, especially cycling and skiing.

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Sen. Wayne L. Niederhauser, CPA What bills will you be sponsoring in 2015?

As Senate President, I don’t usually sponsor bills — rather, I spend time steering the issues and helping to set policy priorities. The upcoming legislative session promises to be focused around important issues including Medicaid Expansion, transportation and water funding, education, religious liberties, debates on marriage, etc. When it comes to the session, you can certainly expect the unexpected! You might want to follow

What do you see as the next big issue CPAs in Utah will be facing?

Utah CPAs will continue to face challenges in regards to compliance and regulation — much of it originating in Washington, D.C. rather than from Utah’s laws. In Utah, we try to keep regulation down while still providing balance and appropriate rules. Too much regulation drains power from the economy. My background as a CPA has been helpful to my legislative work. I have helped balance the state budget, plan for the future, reduce spending, reduce debt and begin to eliminate unfunded pension liabilities. In 2007, I sponsored the largest tax cut in state history. If the poor fiscal practices of the national government concern you, I’d suggest linking up with the Financial Ready Utah movement. You can find more about them at www. senatesite.com/home/financial-readyutah/ If any of this interests you, I’d encourage you to prepare to run for office! Let me know if I can help.

What have been your proudest

Feature Story moments during your time in the legislature?

My favorite moments in the legislature include sponsoring and ultimately passing legislation that created the State Financial Transparency website, www.transparent.utah.gov.

The website provides public access to state financial information, such as Tax Commission reports, state audits, and public searches. You can see exactly where tax dollars are spent. I’ve also served on the Senate’s leadership team for a number of years, and it has been a great privilege. As President of the Senate, I have worked diligently to maintain an atmosphere where reasonable and respectful statesmanship will prevail over politics as usual. I hope that government transparency, accountability, and long term planning based on accurate data will be among my legacies when I leave this office.

What is something that would surprise people to know about you?

I think people would be surprised to see how often this nerdy conservative can be completely reckless on mountain bikes and skis!

Sen. Curtis S. Bramble, CPA Utah Senate 16th District The Chicago native transferred from Notre Dame where he was a varsity wrestler for the Fighting Irish to Brigham Young University where he earned his Master's in Taxation.

Bramble is currently working at Gilbert & Stewart CPAs in Provo where he lives with his wife. The father of six says his oldest son is a doctor and his youngest daughter may be following in her father's footsteps as she has been accepted into the accounting program at BYU. The Utah

CPAs in Utah will be facing?

"We have a couple of issues," Bramble says. "We're working on the national level, dealing with tax preparation and the IRS trying to regulate tax preparers." He reiterates that the nonprofits will continue to see changes on the issue of what level of service will be required and whether or not a nonprofit can receive a grant from the state.

Sen. Curtis S. Bramble, CPA Senate president pro-tem and former senate majority leader was elected in 2001 and is the incoming president of the National Conference of State Legislatures (NCSL), a bipartisan organization that acts as a policy clearinghouse and research center that shares information with state lawmakers nationwide. He will serve August 2015 through August 2016.

What bills will you be sponsoring in 2015?

Bramble says he has 15 bills open right now "that range from tax dollars, like sales initiative exemptions to antitrust and nonprofit stuff to healthcare to towing regulations and workmans comp." He adds that he generally "covers a broad spectrum of issues, and that has been true every year from the time I was elected." Since being elected, Bramble has worked very closely with the UACPA. He is currently working on the nonprofit and administrative amendments.

What do you see as the next big issue

What have been your proudest moments during your time in the legislature?

Bramble shares a story about a decorated Vietnam hero named Ramon Sanft, an immigrant from Tonga who arrived in the Salt Lake area when he was 12 years old. Sanft served as a Marine in Vietnam and took a frontal mine shrapnel blast, earning him a Purple Heart. This soldier was passionate about becoming a U.S. citizenship. "I was able to use my ability as state senator to open the doors to get his documentation for citizenship." Bramble tells how Sanft had trouble with documentation and background checks, and although he was able to get a green card, he wanted to be a citizen. Bramble was proud to be by Sanft's side when he took the Oath of Allegiance in 2001.

What is something that would surprise peoople to know about you?

"I am working hard to live the image of a CPA," Bramble jokes. "I'm a hot air balloon pilot, I scuba dive, I ride motorcycles, hang glide, go skydiving, I'm a commercial pilot and flight instructor." The jet-setter and his wife have traveled to 40-something countries and love scuba diving everywhere from the South Pacific to theBarrier Reef. n the journal entry | January 2015

17

Flashback, UACPA on the Hill

(above) Governor Gary Herbert signs SB40, which increases funding for financial literacy and educating the teachers leading the discussion in Utah's classrooms in 2014 (left) Former Sen. Pat Jones along with UACPA CEO Susan Speirs, CPA at the financial literacy rally and bill signing in 2014 (below) The UACPA joins Governor Gary Herbert for signing three bills supporting Financial Ready Utah's initiatives in 2013

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the journal entry | January 2015

Feature Story

An Update on the UACPA's Involvement in Legislation

By Dan Griffiths, CPA and Shalaun Howell, CPA

S

ince the UACPAs inception in 1920, advocacy efforts have been an important part of the organization.

In recent years, these efforts have been amplified through Financial Ready Utah in 2013 and 2014's House Bill (HB) 283.

By Kim Kushmerick

Dan Griffiths and other UACPA volunteers, along with individuals who recognized the importants of Utah's fiscal wellbeing, led the movement that would become known as Financial Ready Utah. Shalaun Howell, who Chairs the UACPA's Nonprofit Committee teamed up with the Utah Nonprofit Association to handle the negative press that came as a response to a nonprofit organization that received state funding.

Griffiths and Howell explain the initiatives and actions that they took to represent the UACPA on the hill.

Financial Ready Utah

By Dan Griffiths, CPA Some of you may be aware of the UACPA’s advocacy efforts in 2012 that lead to the creation of Financial Ready Utah.

Part of the legislation that was passed at that time created a commission to study federal funds and develop plans that would prepare the state for a possible reduction in the value or amount of federal dollars coming into the state.

At that time, it would have been hard to predict the sequester, the government shutdown, and a host of other federal funding disruptions of the past two years. We should

be proud of our profession for leading the way in helping our state government make prudent fiscal preparation.

The commission has spent the past several months working on an RFP to hire a risk management firm to develop tools to aid the legislature in those preparations.

There are three main goals: Create a “plan under glass” that could be used in the event of a disruption in federal funds. Rather than calling an emergency session of the legislature and handling things in a haphazard way, it would be nice to have something on the shelf that we can use to deal with a crisis when it comes.

1

2

Identify proactive steps that can be taken today to mitigate the probability and magnitude of disruptions to state government and critical services in the event of an interruption in the flow of federal funds to Utah.

3

Help raise public awareness of the potential consequences that would result from federal funding disruptions.

School children crawl under their desks during earthquake drills in order to prevent real quakes from producing total panic and confusion. Likewise, we want to help the public think through the consequences of a reduction in federal funds well in advance of any fiscal earthquakes that may come.

continued on page 20

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Feature Story

Nonprofit Legislation Summary

By Shalaun Howell, CPA 2014 House Bill (HB) 283 has created more commotion than Utah’s nonprofit community has seen in years. The bill was a knee jerk reaction in response to negative press involving a nonprofit organization that received state funding. At the request of the Utah Nonprofits Association, the UACPA Nonprofit Committee reviewed the proposed bill. Although the Committee agreed with the purpose of the bill — to increase transparency and accountability over state funds — it had concerns with some of the proposed provisions.

The Committee’s most significant concern was the implementation of a Sarbanes-Oxley style certification to be made by CEOs and CFOs of all nonprofits required to file an annual report with the State. It is not uncommon for these roles to be filled or heavily supported by board members who serve on a volunteer basis. Such a provision could negatively impact nonprofits’ ability to recruit board members, including CPAs. The proposed bill also required significant changes to nonprofit bylaws, requiring provisions not commonly seen around the country, and allowed the state to revoke all state funding if the bylaws were not updated.

The Committee’s analysis of HB 283 was used by the Utah Nonprofits Association in developing a public policy statement that was sent to legislators. The Committee also discussed these concerns directly with representatives of the Utah State Auditor’s Office. These efforts proved to be valuable. Many any of the Committee’s concerns, including the certification requirement, were addressed in the final version of the bill. Even so, backlash from Utah’s nonprofit community has legislators seriously considering repealing HB 283 this spring.

Senate Bill 179 In 2013, Senate Bill (SB) 179 was passed which changed the state’s basic financial reporting requirements for nonprofits and government entities. Prior to SB 179, nonprofit entities receiving at least 50 percent of their revenues from government sources were required to obtain either an audit, review, or compilation based on their total revenues and expenditures. Subsequent to SB 179, nonprofit entities were required to obtain an audit or file a financial report “in the manner prescribed by the state auditor.”

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In April 2014, the Utah State Auditor’s Office updated its State Legal Compliance Guide to reflect the new reporting requirements and created Agreed-Upon Procedures (AUPs) for nonprofit entities receiving 50 percent or more of their funding from government sources with $100,000 to $499,999 in total annual revenues or expenditures. The UACPA Nonprofit Committee reviewed the AUPs to assess their impact on practitioners and identified several significant concerns. The most grievous concern is a procedure requiring practitioners to “determine whether the design and implementation of the entity’s internal controls…would prevent or detect material misstatement,” an assurance which is not even provided in an audit and presents great liability to practitioners. Other concerns include procedure criteria that does not meet the objectivity or measurability standards required by Statements on Standards for Attestation Engagements and references prescribing that practitioners “assist the entities with their accounting records,” which threatens independence.

The UACPA Nonprofit Committee authored a comment letter to the Utah State Auditor’s Office detailing its concerns.

The Utah State Auditor’s Office has been receptive to feedback from professionals and is hosting a roundtable discussion in January 2015 in which the UACPA will have representation. n Dan Griffiths, CPA, CGMA is the Director of Strategic Planning at Tanner, LLC. Dan is a graduate of the 2010 AICPA Leadership Academy and in 2011-2012 served as the chair of the Young CPA Network Committee for the AICPA. He was serves as Utah's elected member of the AICPA Governing Council.

Shalaun T. Howell, CPA is an audit manager specialized in nonprofit organizations at Shaw & Co., P.C. Shalaun holds a Bachelors of Science and Master of Professional Accountancy from the University of Utah and currently serves as the chair of the UACPA Nonprofit Committee.

the journal entry | January 2015

21

by the

Numbers

Utah reached a historic low for voter turnout in 2014. The following numbers come from www.elections.utah.gov, www.electproject.org and www.gallup.com

Voter Facts

30.2

Percentage of the voting-eligible population in the Utah who voted

36.4

Percentage of the voting-eligible population in the U.S. who voted

counted in 577,973 Ballots Utah's 2014 election

59 75 46 22

Percentage of U.S. Voters who participated in 2012, during Presidential Election Year

Percentage of Utahns who say they have a great deal or fair amount of trust in our state government Percentage of Utahns who identify as Conservative

the journal entry | January 2015

Enhancing the Profession Through the Utah CPA Foundation

By the Utah CPA Foundation

S

ixteen years ago, the Utah CPA Foundation was incorporated as a nonprofit corporation with one of its primary purposes to advance and disseminate knowledge of accounting and business matters and to support and encourage those interested in joining the accounting profession. Support for the Foundation has come primarily from contributions by members of the UACPA. The Foundation is embarking on an ambitious plan to provide more support to the ProNet Council and Financial Literacy Task Force. ProNet will help the UACPA reach out to and engage accounting students and young CPAs and help to get them committed to the profession. Financial Literacy is an opportunity for Utah's CPA professionals to give back to our community by teaching to individuals who could benefit from those skills. These programs require greater levels of support by firms, members and businesses, as well as the private and nonprofit sectors.

We are asking each member of the UACPA, all licensed CPA firms and employers of CPAs to invest in the future of the profession by making a tax deductible contribution to the Utah CPA Foundation.

Why should I or my firm donate to the Foundation? Why Can't the UACPA

Provide all the Support for these programs?

The programs of the UACPA are supported by the dues of its members. Increased support by the UACPA for these programs will result in increased dues. With the Foundation helping to support these programs, we can enlarge the support base for these programs by reaching out to other foundations and organizations that are not members of the UACPA for financial support. By seeking grants, sponsorships and funding from these other sources, including accounting firms, we can expand and enhance the contributions for ProNet and Financial Literacy to the profession and the community.

Why ProNet?

The ProNet Council is designed to be a bridge for students coming out of school to help them transition to the professional world. The ProNet Council Leadership serve as facilitators for ProNet activities and as mentors for all new professionals. They also represent the ProNet Council on the UACPA Leadership Council.

ProNet sponsors the annual CPA Inauguration, recognizing new CPAs who have recently passed the CPA examination; the Campus Ambassadors program, providing a link between the profession and college students as they the journal entry | January 2015

23

The Utah CPA Foundation make the transition from academia to the profession; and Leadership Academy, providing a training environment to enhance the careers of these newer professionals. All of these events enhance the profession by creating a pool of new CPAs who are committed to and involved in the profession.

Why Financial Literacy?

Financial Literacy has proven to be a means for CPAs to give back to the community through the teaching of financial and business concepts to an expanding and disadvantaged constituency. The Task Force is heavily involved in teaching these life skills at the Utah State Department of Corrections, at the VA and in other settings, providing basic financial skills to individuals attempting to integrate back into and becoming contributing members in their neighborhoods.

How do you help?

First, by contributing generously to the Foundation; and second, encouraging your firms to contribute to help support

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and sponsor those activities of the Foundation. You can also support ProNet and Financial Literacy by volunteering to be in their respective programs: teaching, mentoring and serving.

Please seek to increase your personal support of the Foundation, or if you have not supported the Foundation in the past, please start now. Your contributions provide tremendous support to the profession and the community.

Next, when your firm or place of employment is contacted by the Foundation for their financial support, please contribute if you have a say in the decision, or encourage their support.

The Foundation exists to support and enhance the profession, but it can only do so with your support. A heartfelt thanks to those who continue to provide funding to the Foundation and our appreciation to those who join the ranks of contributors. n

New SAARS 21 Creates Bright Line Between Accounting

By Caroline Klein, CPA and Reporting Services Provided by AICPA

C

PAs used to be limited by geographic area. Today distance isn’t a barrier. A CPA located in New York can have clients in California. Thanks to advanced technology, we and our clients email, scan or fax materials to each other. We also store content in the cloud where it can be easily accessed from an office, a coffee shop or anywhere with an internet connection.

The AICPA Accounting and Review Services Committee (ARSC) recently issued Statement on Standards for Accounting and Review Services No. 21 that, among other things, accounts for changes in CPAs’ practice environment. The AICPA ARSC is committed to ensuring that its standards remain relevant and meet members’ needs.

SSARS No. 21 is written in clarified format — which is intended to present standards that are easier to read, understand, and implement. SSARS No. 21 is effective for engagements on financial statements for periods ending on or after December 15, 2015 but

early implementation is permitted. The clarified and revised standards supersede all existing AR sections except for AR section 120, Compilation of Pro Forma Financial Statements, which is expected to be exposed for public comment in clarified format in 2015 along with a proposed standard on compilation of prospective financial information, which is currently addressed in the attestation standards.

The standard consists of four sections. Section 60, General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services, is intended to help accountants better understand their professional responsibilities when performing engagements in accordance with SSARSs. Section 70, Preparation of Financial Statements, applies when the accountant is engaged to prepare financial statements but is not engaged to perform an audit, review or a compilation on those financial statements. Section 80, Compilation Engagements, applies when the accountant is engaged to

the journal entry | January 2015

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SAARS 21 perform a compilation engagement. Section 90, Review of Financial Statements, applies when the accountant is engaged to perform a review of financial statements.

Substantive changes to standards for compilations, reviews, or engagements to prepare financial statements are as follows: Section 70 does not require a report — even when the financial statements are expected to be used or provided to a third party.

Section 70 requires either a legend on each page of the financial statements stating that no assurance is being provided or a disclaimer.

The accountant is required to obtain an engagement letter signed by both the accountant and the client’s management for all reviews, compilations, and

engagements to prepare financial statements.

Section 80 eliminates the need for the accountant to determine whether he or she has prepared financial statements by eliminating the submission requirement.

Section 80 always requires a report. Financial statements that the accountant is engaged to prepare but that are not intended for third-party use would fall under Section 70.

“The standards create a bright line between accounting (preparation) services and reporting (compilation) services. Our members will greatly benefit from the newly issued SSARS,” said UACPA CEO Susan Speirs, CPA. For more information, visit the AICPA’s SSARS No. 21 webpage at www.aircpa.org/InterestAreas/FRC/ ReviewCompilationPreparation/Pages/resources-forSSARS21.aspx n

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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the journal entry | January 2015

New Revenue Recognition Standard: Build Your Implement Plan

By Kim Kushmerick

T

he Financial Accounting Standards Board’s new revenue recognition standard presents the most significant accounting change many veteran CPAs have seen. The standard touches every entity (public and private, including not-for-profit entities) that reports under U.S. GAAP and will require CPAs to reexamine the underlying economics of large numbers of established business practices. The new standard applies to most transactions and contracts with customers except for leases, insurance contracts, most financial instruments and guarantees (other than product or service warranties).

At first glance, the implementation period for Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, might seem adequate if not generous. Public companies, for whom early adoption is not permitted, are required to adopt the standard in 2017 (for reporting periods beginning after December 15, 2016). Private companies get an additional year — starting with 2018 for their annual reports — and two more years, beginning in 2019 — to start applying the

standard to interim reports. Private companies may choose to adopt the standard on the public company schedule.

After further study, however, many organizations may find the implementation period to be extremely aggressive and the task daunting. There are many components to be analyzed and many questions to be answered: • How will the standard affect operational and performance metrics?

• What IT changes will be needed?

• How will you retrospectively adopt the standard?

If a public company chooses full retrospective adoption, revenue and the direct effects of change in accounting principle to all contracts must be restated for 2015 and 2016 to show comparative financial statements with a the journal entry | January 2015

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New Revenue Recognition Standards cumulative adjustment as of January 1, 2015.

You are encouraged to advise clients and employers to begin developing an implementation plan as soon as possible.

The AICPA has organized a major effort including industry work groups, training, and organizational tools to assist CPAs with this monumental implementation.

Task 3: Choose how to retrospectively adopt (2014)

The standard should be applied using one of the following two methods: Retrospectively to each prior reporting period presented and the entity may elect any of the following practical expedients:

1.

You can use the following key tasks based on the AICPA’s New Revenue Recognition Accounting Standard — Learning and Implementation Plan as a high-level road map to begin organizing your organization’s implementation.

a.

b.

Task 1: Form a task force (2014-2015)

Don’t wait to get all of the major players involved. The standard replaces most transaction- and industry-specific guidance with a principle-based approach, making it difficult — if not impossible — for CPAs to estimate the implementation effort required in a specific organization without first conducting a detailed assessment to use in developing a work plan. In all but the very smallest private companies, this assessment will require substantial collaboration with most major business functions including sales and marketing, IT, legal and human resources.

c.

2.

Task 2: Evaluate the impact (2014-2016)

Evaluate the changes from current GAAP to the new revenue recognition standard and evaluate the impact on how your company accounts for existing revenue streams and the results to your company’s financial statements. In addition, evaluate how the standard will affect operational and performance metrics, company contracts, compensation plans, accounting policies, internal controls and tax matters. Work with your auditor to ensure that your approach to implementing the new revenue recognition standard and any changes in accounting for revenue recognition are documented completely and accurately.

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a.

b.

For completed contracts, an entity need not restate contracts that begin and end within the same annual reporting period.

For completed contracts that have variable consideration, an entity may use the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods.

For reporting periods presented before the date of initial application, an entity need not disclose the amount of the transaction price allocated to remaining performance obligations and an explanation of when the entity expects to recognize that amount as revenue.

Retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application. If an entity elects this transition method, it also should provide the additional disclosures in reporting periods that include the date of initial application of the following items: The amount by which each financial statement line item is affected in the current reporting period by the application of the standard as compared to the guidance that was in effect before the change.

An explanation of the reasons for significant change.

In September, the Securities and Exchange Commission determined that companies electing full retrospective

New Revenue Recognition Standards adoption will only be required to apply the new standard for three years rather than the expected five years.

Task 4: Determine IT changes needed (2014)

Based on the determinations made in Tasks 2 and 3, the new standard may require modifications to IT systems to capture the appropriate level of information related to data used to make estimates on revenue recognition and new disclosures. Determine whether changes will need to be made to IT systems or software applications to capture information needed for the new revenue recognition standard, including the following retrospective adoption and the additional qualitative and quantitative disclosures required.

Task 5: Determine interim disclosures needed for public companies (2014-2016)

Public companies should consider the guidance in SEC Staff Accounting Bulletin (SAB) No. 74 (Topic 11:M), Disclosure of the Impact that Recently Issued Accounting Standards Will Have on the Financial Statements of the Registrant When Adopted in a Future Period, to determine the appropriate interim disclosures to be made prior to the adoption of the new standard.

Task 6: Develop project plan (2014–2016)

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Develop an evolving project plan for implementation of the revenue recognition standard considering all of the tasks above and facilitate training for your staff.

Task 7: Educate key stakeholders (2015-2016)

Based on the determinations made in Tasks 2 and 3, the new revenue recognition standard may result in changes in timing of revenue recognized as well as new qualitative and quantitative disclosures that will need to be explained to stakeholders. Educate key stakeholders such as your audit committee, board of directors, investors and lenders on the new revenue recognition standard and what changes they should expect in your company’s financial statements. n

www.facebook.com/Utahassociationofcpas

Kim Kushmerick is the Senior Technical Manager at the AICPA the journal entry | January 2015

29

Closing the Gaap — Women in Accounting

Melanie Beuchert, CPA

By Stacey Porter, CPA

Melanie Beuchert is a tax manager at USANA Health Sciences. The BYU graduate has a background in music and enjoys playing the piano. Beuchert tells us how she became a CPA and how her career path took a turn when she became interested in corporate work.

What led you to a career as a CPA? Growing up, I always enjoyed math and problem solving, so accounting seemed like a good option to explore once I reached college. I also considered studying music or nutrition, but ultimately decided accounting was for me. I was concerned studying music full-time might take the enjoyment out of it for me, and I was not excited about the many chemistry classes required for studying nutrition, so accounting was the winner! I have been happy with my choice and would not change it if I could go back.

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What was your career path that led you to the position you hold today?

After completing my MAcc in Tax at BYU, I began my career with PwC where I was able to discover my interests through being involved with a variety of projects, including compliance and consulting for corporations, partnerships, and individuals. Through these experiences, I became most interested in corporate work, including tax research and accounting for income taxes. These interests led me to my current position as a Tax Manager at USANA Health Sciences where I have been able to continue to pursue my interests and gain additional skills in the federal, state, and international arenas.

What advice do you live by?

Anything worthwhile requires hard work and effort. I have found that the times I have been stretched the most

Closing the GAAP — Women in Accounting or have left my comfort zone are also the times I have grown the most. Embracing change and challenging tasks is not easy, but there is much to gain both professionally and personally by doing so.

What are your hobbies/interests, how did you become involved/interested and why do you enjoy it or what do you gain from these hobbies/interests?

Talk with us on Twitter.

Recently, I have become involved with CrossFit and have definitely enjoyed the challenge! Fortunately, my work offers on-site classes three times per week and I have been able to attend during my lunch hour. I also enjoy playing the piano, which I have done since I was eight years old.

Sitting down at the piano is very relaxing for me and allows me to express my creative side. I also enjoy hiking in Utah’s many beautiful mountains and playing volleyball when I get the chance What advice would you offer other women in the profession?

Set goals and go after them. Remember to be yourself and make sure your goals are in line with your priorities. I don’t think there is a “one-size-fits-all” career path, so ask yourself what you really want out of life and do whatever you can to make it happen. Don’t be afraid to take on challenges. I would also encourage networking with other men and women since there is much we can learn from each other. Events sponsored by the American Woman’s Society of CPAs (AWSCPA Utah) have helped me meet other women in the accounting profession, relate to their experiences, and hear new perspectives. n Stacey Porter, CPA, a a tax manager at EY and specializes in the global compliance of executives at a wide variety of companies from start-ups to Fortune 500, as well as consulting on international tax issues with their employers. Currently, she is serving as an AWSCPA (UT) board member and on a joint UACPA and AWSCPA (UT) task force for women in the profession. Stacey can be reached at Stacey.Porter@ey.com

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ConnectWithUs the journal entry | January 2015

31

Six Tips for Using Data More Wisely

By Brett Knowles

O

rganizations are collecting more data than ever before and processing them in new ways in an effort to improve their businesses. But often they are not using the data in the right way — if they are using them at all.

too deep into a problem when such drilling isn’t really necessary. Ask yourself: Do you really need to measure it down to the fifth decimal? Or will a more general indicator suffice?

Eighty-seven percent of finance professionals said Big Data holds the potential to change the way business is done, according to the CGMA report From Insight to Impact: Unlocking Opportunities in Big Data. But 86 percent of those surveyed said their businesses struggle to get valuable information from the data they have. Hurdles to maximising data’s value include organizational silos, challenges related to data quality and an inability to work with unfamiliar, non-financial data.

Take employee satisfaction, for example. Does your company need detailed measurements of pay and benefits compared with those of the competition? Does it need to deeply analyse promotion opportunities offered, or the culture inside the organisation, or how good the boss is at motivating and inspiring people — or even the office and business environment itself? You can measure and analyse each of those things, but that could be very expensive.

Here are six ways to make sure you are collecting the right data and making the most of the data you already possess:

1

Consider the broad indicator over the precise measurement. There are many indicators that show us general trends happening in our organizations. But often, organisations spend lots of time and money drilling down

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Instead, you could use a broad indicator such as absenteeism. Generally, if a company sees abnormal spikes in absenteeism, it’s a sign of dissatisfaction. From there, you can dig deeper. It may not be because of any one of the factors listed above; it may, in fact, be something as small as a lack of parking. The benefit of that indicator is that it doesn’t try to explain what’s wrong in your organisation.

CGMA In this case, absenteeism is like the “check engine” warning light on the dashboards of many automobiles. It doesn’t tell you exactly what’s wrong, but it tells you that something is wrong and that you should have it checked out. High absenteeism is a good starting-point indicator — one that might prompt an organisation to more deeply examine salaries, culture, managers and so on by doing focus group work and surveys. The best part: Absenteeism data are free.

2

The data that you gather often need to be received more quickly than the impacts and the stresses facing your organization. Data are often more valuable to you if they are received faster than if they are precisely accurate.

Consider the fast-food drive-through. The cycle time through the drive-through is about three minutes, which means data needs to be replenished faster than once every three minutes to be useful to the operations people in that part of the business. On the other hand, the supply chain might work on, say, a one-week cycle. Therefore, the data doesn't have to be as fast. Supply-chain managers don’t need to know what’s happening every minute, but they certainly need to know what’s happening every day or every couple of days, whereas setting up a new store location might take a year. The data those managers need have a less frequent drumbeat.

So, even inside the same organization, you may have different needs for how fast the data must be. But the point is that data need to be arriving ahead of the stresses and the risks that your organization faces.

3

Make sure leadership is aligned with strategic priorities and sees the same activities the same way. We need a way to establish the most important things we should be looking for and score our performance accordingly.

Imagine, for example, your strategy is focused on growth by entering new markets. When you take a look at performance of activities — such as sales into new market areas or the number of new customers you’ve been able to attract outside of your existing areas — that data should have more value than measures that would be important under a different strategy. Determine your focus based on your organization’s strategy; this will determine whether you look at measures such as the number of customers buying multiple products or the number of repeat customers. Depending on the strategy, consider different

measures to ensure alignment on how you look at your organization’s performance.

In a multi-location business, however, this can be a challenge because you might have one newly established business unit that is growing into the market and another unit that has been there for a long time, and in that business unit, they’re looking for share of wallet. So, you can even have different strategies inside the same corporate entity.

You should have visual triggers when leadership’s looking at the data, so they know when they’re stepping over the line from a penetration strategy to a share-of-wallet strategy.

You can even have different strategies inside the same corporate entity. You should have visual triggers when leadership's looking at the data, so they know when they're stepping over the line from penetration strategy to a share-of-wallet strategy.

4

Once you’ve determined what the right measures are, be prepared for them to change as your organization does. Measures can’t remain the same over time.

Think of something like a new product development cycle.

In the early part of that cycle — the product idea creation — you might be looking at things like the number of product ideas. During the next phase, you’ll look for product development indicators such as the time from idea to first prototype. The next phase might be product testing, where the measure needs to change to, say, an approval rating from a beta test audience. Finally, during product launch, you might look at sales per month.

5

In most cases, the organization is already collecting the data you need; you just need to know how to use it. You should always be able to find data within your organization that indicates how a process is running, whether you’re looking at the inputs, the transformation activities or the outputs.

The main benefit of using available data is that it doesn’t add costs to your organization. You don’t need more people to gather the information because you’re already the journal entry | January 2015

33

gathering it. You don’t need more people to process the information because you’re already processing it.

Secondly, it allows you to get your scorecard and dash board set up very quickly. You’re not held ransom for data.

In some cases, the signal strength of that data might not be as strong as you would like. The quality of data you need depends on the type of decision at issue. You do not need Six Sigma accuracy for all decisions. For instance, the data you need to extend a marketing program for a month can be less accurate than the data required to terminate an employee or close an office.

Using information that already exists creates higher ownership faster. You’ll gain much more acceptance when you begin using indicators that people in the organization already know and respect rather than those you have imposed on them.

And because you’re using existing data, your net training cost is significantly lower.

So, it’s often faster, cheaper and better to start with broad indicators. From there, you can determine whether to investigate further, and, if so, where — and how deeply — to probe next.

Think of an organization as an airplane that needs to see the business world around it at various heights — from 30,000 feet to ground level. Each altitude level needs its own form of information presentation.

6

Present the right data in the right way to the right people. Think of an organization as an airplane that needs to see the business world around it at various heights — from 30,000 feet to ground level. Each altitude level needs its own form of information presentation.

Senior management wants to cruise along at that 30,000foot information altitude, mostly just seeing Big Data landscape features: the information equivalent of a mountain range, an ocean or a city. However, the data should

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be comprehensive enough for management to spot any digital puffs of smoke coming from fires that need to be put out. A Balanced Scorecard with performance indicators, trends and information on the data’s strategic importance would be the best tool here. If any one indicator is performing below expectations, management needs to dive into it to understand what’s causing the problem.

At ground level, organizations need analytic tools so management can become prescriptive. These are the spreadsheets and grids that display all forms of detailed data used to asses how the organization is performing individual tasks.

Once a problem is identified, data presenters and their software must be nimble enough to zoom in to provide a closer look for the appropriate managers. When a problem is spotted, management will want to drop down to 20,000 feet. At this point, the data presenters need to narrow the scope of information and begin providing some operational tools, such as flow charts, to gain an understanding of what’s happening.

Next, data presenters must be able to descend to 10,000 feet and provide diagnostic tools so managers can become more directional in their behaviour. This isn’t meant to be eye candy. It should be a detailed, data-intensive dashboard that provides comprehensive information designed to help managers at a tactical level.

Finally, at ground level, organizations need analytic tools so management can become prescriptive. These are the spreadsheets and grids that display all forms of detailed data used to assess how the organization is performing individual tasks.

There’s a parallel between the levels of the organization.

In a good organization, the leadership team should be able to pass this information to the next level down and so forth. ■ Brett Knowles is the executive partner of pm2, a performance management ocnsulting company based in Canada.

MEet a uacpa member

Five Minutes with Travis Nielson, CPA Travis Nielsen, CPA is a partner at The Cadence Group where he is in charge of their Sarbanes-Oxley compliance practice. The Chair of the 2014 Winter Conference, worked at PricewaterhouseCoopers prior to co-founding The Cadence Group. Nielsen resides in Cottonwood Heights where he says he has lived 38 of his 41 years. Nielsen and his wife Lisa have three children.

What led you to become a CPA? At BYU I took a chemistry class the same semester I took a general accounting class. The contrast between the two was dramatic — I enjoyed accounting and business classes much more than science classes. I was advised that accounting was the language of business and a great foundation, so I decided to major in accounting and haven’t looked back!

What have been your proudest moments as a CPA? Working for two different public accounting firms has given me a lot of unique experiences and opportunities to meet a lot of different

people. I am proud to be a CPA and to be a member of a group of hard working individuals who are committed to high standards of ethics, integrity, and competence.

What would you be doing if you were not a CPA? I would be a sailor — specifically a bowman with the dream of sailing in the America’s Cup and afterwards retiring to sail charter ships in the British Virgin Islands. I love the challenge of sailing, and how it combines physical hard work and skill into a fun challenge.

What do you enjoy doing outside of work? I love to travel with my wife. I love the adventure of seeing new places and spending time experiencing a new place for the first time. I have visited 29 countries and we still have plenty more places to explore. I also love to boat with my family and haven’t found a place I love more than Lake Powell!

What would surprise people to know about you? Although my nickname was Sleepy Turtle, I love to go fast! I like any-

thing that goes fast — fast cars, motorcycles, boats, roller coasters, airplanes, and I’m confident I would love traveling in a rocket ship! The faster, the better, which I think is very different than my personality or demeanor.

What are your professional goals?

Our firm approaches each engagement with the desire to add as much value as possible to our clients. My goal is to find ways during each engagement to add as much value as possible.

What advice do you live by? My dad had a quote from Calvin Coolidge in his office, which is great. “Nothing in the world can take the place of persistence.

Talent will not; nothing is more common than unsuccessful men with talent.

Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts.

Persistence and determination alone are omnipotent. The slogan 'Press On!' has solved and always will solve the problems of the human race.” ■ the journal entry | January 2015

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Board Question

Meet the Executive Board

Q: What are your goals for 2015?

Paul Skeen, CPA President

Jonyce Bullock, CPA President-Elect

Transition the UACPA Presidency to a much more capable individual and get my golf handicap to single digits. The rest of my goals may give away some Eide Bailly strategy so I will keep those close to the vest!

My goals for 2015 are to manage my email instead of it managing me, perfect my golf game and get to know more of our amazing UACPA members.

Hollie Andrus, CPA Vice President

Mark Palmer, CPA Secretary

Besides the typical fitness goals, I want to read more--both professional publications and recreational literature. I plan to read at least two books per month and "stay on top" of my Journal of Accountancy issues!

A professional goal I have for 2015 is to become more familiar with Project Management and our project management software, AtTask. I intend to utilize this software to track CPE offerings, attendance and such which will help me relate to the project managers I work with.

Dan Griffiths, CPA AICPA Council Representative

Susan Speirs, CPA CEO

Take my family skiing at least twice. Teach my oldest son and daughter how to fly fish and take them on a river trip. Take my wife to Hawaii. Spend less than 3,000 hours at work this year.

Continue to meet our members and invite them to share their talents with the Association. On the personal side, complete an appliqued quilt before the due date of our first grandchild — April 15.

Larry Deppe, CPA Member at Large 1. Spend more time with my wife and family 2. Stay healthy 3. Finish at least two papers for publication 4. Eat less chocolate 5. Try to do as many good and worthwhile things as I can

(Not Pictured) Kyle Pexton, CPA - Treasurer 36

the journal entry | January 2015

Kent Thomas, CPA Immediate Past President During 2015, my goals are to • Improve my competency with new technologies • Lead the effort to improve my firm's diversity by hiring and promoting more female and minority consultants.

• Spend more time with my family • Spend more time supporting and mentoring my partners • Giving more back to a community of friends and associates who have been a great blessing in my life.

Meet the UACPA Staff

Meet the UACPA Staff

Q: What are your goals for 2015?

A

April Deneault CPE Manager

Amy Spencer Marketing & Communications Manager

My goals for 2015 aside from my diet and exercise goals are to read more books — I want to rekindle my relationship with books. Have more date nights. Spend wiser, it’s time to tackle my personal financial goals. Cook more, I would like to cook one new dish every month. I would also like to manage my email better.

In addition to running half marathons and obstacle courses, I'm planning on writing more and spending time volunteering with animal causes. My goals at the UACPA are to improve our website, help in planning successful events and engage more with members.

Questions?

Contact the UACPA staff for answers about licensing, CPE requirements, UACPA Membership and more | 801-466-8022

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.15484B-326

Photos, Leadership Academy T

he third class of Leadership Academy was held October 22 - 24 with 18 participants. The three-day event began with the up-and-coming leaders volunteering with Junior Achievement, bringing financial literacy to the 1st, 3rd and 4th grades at Midvale Elementary.

After a morning of volunteering, Leadership Academy participants went to Deer Valley for a retreat where Dan Griffiths, CPA guided groups in discussion and training to becoming leaders in the profession.

Congratulations to the following participants for completing the program.

Amy Anholt, CPA – Dental Select James Cone, CPA – Stayner, Bates & Jensen, PC Aubrey Bickmore Neeley, CPA – Savage Companies Richard Haubrich III, CPA – Mantyle McReynolds LLC Ryan Glenn, CPA – KLAS Enterprises Kathryn A. Fargam, CPA – Tanner LLC Benjamin Young, CPA – Stayner, Bates & Jensen, PC Lynn Sims, CPA – Nicholas & Company Bradley Poll, CPA – Eide Bailly, LLP Shalaun Howell, CPA – Shaw & Co., P.C. David Mantyla, CPA – Mantyla McReynolds LLC Brandon Keyes, CPA – Haynie & Company Kristian Rickard – PricewaterhouseCoopers LLP David Peaden, CPA – Eide Bailly Jason Tomlinson, CPA – Ryan, LLC Brandon Hayes, CPA – Bank of American Fork Raymond Langhaim, CPA - LANDesk Software Katie Chandler, CPA – Tanner LLC

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the journal entry | January 2015

Photo Pages

Photos, Leadership Academy 1

5

the journal entry | January 2015

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The UACPA's Affinity Partners help you get the most out of your membership

Alamo

Alamo auto rentals provides discounts and upgrades to UACPA members & affiliates. Call 800-GO-ALAMO (800-462-5266) to make reservations (ID Number 706768)

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 800-654-2210 and mention CDP #1884442

Jo S. A Bank Men's Clothing

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

ADP

ADP Offers Free Payroll and Free 401k services to referring UACPA Members and its affiliates. Please reach out to Kenny McKenna directly at 801-956-7850 or email kenny.mckenna@adp.com for more information

Camico

The Mutual Insurance Company offers UACPA emmbers 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.

A IN MEMORIAM

Sidney Swainston Gilbert, CPA 12/24/1928 — 10/14/2014 UACPA Member since 1958

A

Member Benefits

100% Membership

Congratulations to the firms curerently participating in the UACPA's 100% membership program. Firms with 10-or-more CPAs on staff are eligible for the inclusion of the 100% membership program.

• Mantyla McReynolds • PricewaterhouseCoopers • HJ & Associates • Pinnock, Robbins, Posey & Richins

Learn more about member benefits by talking to Amy Spencer, as @uacpa.org or calling 801.466.8022 Is your firm eligible to be a part of the 100% membership program? Learn more by talking to Amy Spencer, as@ uacpa.org or call 801.466.8022

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the journal entry | January 2015

Give back to the Profession.

Join a UACPA Committee or Task Force

Volunteer online at uacpa.org — keyword search "committee" ✓ I would like to volunteer to serve on a UACPA committe or task force ❑ Committee/Task Force descriptions can be found online at uacpa.org, under Member Connection, Committee & Task Force where you can also volunteer. Identify the committee or task forces below. Check all that you would like to serve on (maximum 3). We will make every effort to assign you to the committee(s) of your choice. Send completed form to: UACPA, 1240 E. 2100 South, Suite 500, Salt Lake City, UT 84106; email: volunteer@uacpa.org. ❑ Accounting Issues/Conference Task Force ❑ Business Valuation Conference Task Force ❑ CPAs in Business & Management (BAM) Conference Task Force ❑ CPE Approval ❑ Editorial Committee ❑ Event Planning Committee ❑ Federal Key Person

❑ Financial Literacy Task Force ❑ Financial Ready Utah ❑ Golf Tournament Task Force ❑ Non-Profit ❑ ProNet Council Sub-committees ❑ K-12 Committee ❑ K-12 Volunteers ❑ ProNet Campus Ambassadors (Collegiate)

❑ ProNet Communications ❑ ProNet CPA Inauguration ❑ ProNet Leadership Development ❑ ProNet New Professionals

❑ State & Local Government Task Force ❑ Tax Issues ❑ Tax Symposium ❑ Winter Conference Task Force

Name: ___________________________________________________________ UACPA #: __________________________________ Firm/Company: __________________________________________________ Phone: _____________________________________ Address: _____________________________________________________________________________________________________ City/State/Zip: ___________________________________________________ Email: _______________________________________ the journal entry | January 2015

41

ContactList Accounting Issues

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

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

January

February

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

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

March Mark Anderson 801-532-2200 manderson@hbmcpas.com

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, and below are those members’ names that may be contacted with your questions.

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

Tax Issues

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

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The AICPA Ethics Hotline provides non-authoritative guidance to members on questions related to ethics including independence. Each year it responds to more than 4,000 inquiries. The Ethics Hotline is open from 9 a.m. to 5 p.m. ET on weekdays and a staff members may be reached by dialing either (888) 777-7077, menu option #5, followed by menu option #2, or by e-mail at ethics@aicpa.org.

Write for The Journal Entry

Be a part of The Journal Entry by contributing a story that relates to the profession and interests of the CPA community.

To submit a story, contact Amy Spencer, as@uacpa.org

Classified Ads

CPE Approval – Does This Qualify?

Steve Avis 801-532-2200 savis@hbmcpas.com

AICPA Ethics Hotline

the journal entry | January 2015

To place your classified advertisement and reach Utah CPAs, contact the UACPA at mail@uapca.org, Utah Practice For Sale: St. George Area CPA Practice - gross $200K, Tax (53%) Accnting Svs (47%); 70%+ of the total revenues generated from business clients.

Ogden CPA Practice - gross $71K, 50/50, between tax work and accounting & consulting services. 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 1-800397-0249 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.

What's In It For Me? 10 benefits of being a member of the UACPA 1

Enhanced Value

The UACPA and its members are recognized for their education, ethics and strong leadership within the community and we remind the public through articles and other resources that a CPA is an asset to any type of financial need.

2

Networking Opportunities

Through conferences and exclusive member activities, UACPA members connect and grow through empowering interactions.

3 4 5

Advocacy

The UACPA is the voice of the profession in Utah and we regularly meet with groups to ensure CPAs and the public's interests are met.

Increase Visibility

The UACPA actively promotes the profession through media appearances and advertising.

Education by CPAs for CPAs

6 7

Leadership Opportunities

Make a difference by serving on the UACPA's various committees. Dozens of opportunities allow you to volunteer and lead.

Professional Advancement

Up-and-coming CPAs are learning and leading through ProNet, the UACPA's young professional group. Leadership Academy provides a retreat where valuable skills are learned.

8

Professional Resources

Have questions about licensing or the ethics exam? The UACPA website and staff offer you a go-to destination for answers.

9 10

Member Discounts

Save money on CPE, products and services.

News and Updates

Get local and national updates that are important to your needs as a CPA through Facebook, Twitter, LinkedIn and in your mailbox and email constantly.

Conferences and classes are coordinated by UACPA members who have a pulse on what's most important to you.

Sign up online at www.uacpa.org or by calling 801.466.8022

the journal entry | January 2015

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Utah Association of CPAs

Nonprofit Org.

1240 E. 2100 South, Suite 500

U.S. Postage

Salt Lake City, UT 84106

PAID Salt Lake City, UT Permit No. 1996

Address Service Requested

OWNERSHIP RECORD KEEPING IS PROBABLY NOT THE MOST INTERESTING PART OF YOUR JOB.

Why not let Zions Bank help?

Zions Bank has provided ownership record keeping services for clients of CPA and estate planning firms for more than 50 years. Our services include: • Confidential and accurate tracking of ownership

• Management of dividend and other cash disbursements

• 24-hour online access

• 1099 tax reporting

• Safe keeping of unissued certificates and important records

• IPO assistance

1-888-673-3384 zionsbank.com/ownershiprecordkeeping

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the journal entry *Subject 2015 fees apply. Contact a financial center representative for details. to contract; | January