The Journal Entry - July 2014

july

2014,

Vol.

III

|

CPAs

throughout

Utah

Celebrating Utah's CPAs Get to know professionals throughout the Beehive State

Theft and Infringement How you can protect your intellectual property www.uacpa.org

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 editorial staff........................................ 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.

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

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

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 email: mail@uacpa.org 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

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 | July 2014

feature story

CPAs Throughout the state 127 New Members............................................................................................4 Movers & Shakers......................................................................................4 President's Message ..................................................................................6 Message from the CEO............................................................................. 7 Cover Story: CPAs Throughout Utah.....................................................8 By the Numbers: CPA Exam Performance..........................................22

How CPAs Can Improve Estate Tax Planning

Preventing the Inadvertant Implosion of Estate Tax Plans................23 Protecting Intellectual Property from Theft and Infringement.........25 Fly Fishing and the Art of Proactive Patience.....................................29 IT Challenges, Opportunities, and Advantages.................................. 31 Women in Accounting — Caroline Klein, CPA..................................34 The Revised AICPA Code of Professional Conduct...........................36 Photos, Leadership Council, Tax Treats, etc........................................38 Meet a Member: Nikki Thon.................................................................39 Quarterly Question: Executive Board...................................................40 Board Bullets............................................................................................ 41 Quarterly Question: UACPA Staff......................................................... 41 Education..................................................................................................42 Member Benefits......................................................................................45

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Closing the GAAP — Women in Accounting 34 Meet a Member: Nikki Thon 39

100% Membership Firms.......................................................................45 the journal entry | July 2014

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New Members/ Movers & Shakers

NewMembers

Movers&Shakers

Congratulations to the following CPAs who were approved for UACPA membership as of May 15, 2014.

Nikki Thon, CPA, a partner at Eide Bailly LLP, has been named as one of Utah Business Magazine's 30 Women to Watch in 2014. The publication recognizes "Utah's best and brightest leaders who are key influencers in their companies and communities." Thon oversees the tax departments for Eide Bailly's Utah offices and led the transition when her firm was acquired in 2012. She also serves as the liaison for Eide Bailly's First Focus initiative, which nurtures a firm-wide culture where women are as likely to succeed as men. Read more about Thon on page 39 in The Journal Entry's Meet a Member feature.

Fellows

Dominic Allen PricewaterhouseCoopers LLP Jacob Bell PricewaterhouseCoopers LLP Karen Bertelli Alessandra Bishop Christopher Corcoran Jenna Dobesh Julie English PricewaterhouseCoopers LLP Debra Glenn Eide Bailly Robert Hayden PricewaterhouseCoopers LLP David Hickox Ernst & Young LLP Blake Jensen Adams & Petersen, CPAs, LLC Matthew Jensen Davis & Bott, CPAs, L.C. Nicholas Moulton KPMG LLP Andrew Nelson XanGo, LLC

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Nicole Randolph PricewaterhouseCoopers LLP Whitney Smith HJ & Associates LLC Jacob Stonehocker Hawkins Cloward & Simister, LC Amber Telaroli Hawkins Cloward & Simister, LC Ian Tomlinson PricewaterhouseCoopers LLP Meagan White PricewaterhouseCoopers LLP Andrea Winkler Davis & Bott, CPAs, L.C. Matthew Woolsey Matthew Worthen Adams & Petersen, CPAs, LLC

Student Affiliates

Brigham Young University – 1 Dixie State College – 2 Southern Utah University – 1 University of Utah – 7 Utah State University – 1 Utah Valley University – 3 Weber State University – 2 Western Governors University – 2 Westminster – 2

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Carl Steffan, CPA/ABV/CFF, CVA, ASA, CBA, ABAR at Wisan Smith Racker & Prescott, LLP was recently named ABV Champion for the State of Utah. To qualify, Steffan was required to be an ABV credential holder, active in his state society, and a part of the local valuation community. As the state ABV Champion, Steffan will serve as the point of contact in Utah for CPAs seeking information about the benefits of and path to obtaining the ABV credential. Additionally, Steffan must collect and share ideas, needs and resources from Utah's valuation community and spread the word of successes from other Champions back to Utah's valuation community.

Doug Hansen, CPA, a Partner at Tanner LLC has been recognized by The Community Foundation of Utah as one of the 50 individuals who are making a measurable difference in the lives of Utahns. The Enlightened 50, or E-50, are nominated by the community and become a part of the expanding network.

York Howell has announced that they are expanding their law firm by adding a real estate practice with principal and managing partner Paxton R. Guymon. Over the last year, York Howell has grown to 19 employees and has become a regional leader in estate planning, asset protection, business structuring and tax planning. "As we increase services available to our clients and enlarge our geographic reach, we can provide the most complete and effective legal services in our specific areas of focus," says Andrew Howell, principal of York Howell.

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President's Message

President's Message Paul Skeen, CPA Educating a new generation to see the Perks of becoming a CPA

I

recently had the opportunity to participate in a 7th grade career fair at my daughter’s junior high. Booths were set up around the perimeter of the gym and the students were able visit four different career booths in a “speed dating” format.

I knew I was in trouble when I approached my assigned booth and to left of my booth was the company that produces Lofthouse Cookies. The executive was equipped with what appeared to be enough cookies to feed the entire junior high school and then some! To the right was the Utah Highway Patrol. Their booth was stocked with photos of various drug busts and they had “drunk goggles” that simulate the effect of being inebriated. How was I going to be able to compete with cops and cookies? I wondered if a group of 12- and 13-year-olds could see through the initial draw of these competing booths to learn about a profession that has so much to offer.

Over the past few years, studies have indicated that finding, hiring and retaining staff is one of the highest priorities for CPA firms and organizations relying on CPAs. As we face the reality that the “Baby Boomer” bubble will burst, the need for talented and willing entrants into the profession is skyrocketing. One solution to this problem is helping students see past the cops and cookies and look to an outstanding profession in accounting.

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Although 2013 had a record number of accounting graduates — a trend that has continued to build over the last few years — the number of accounting graduates choosing to pursue the CPA designation has remained flat. Fewer and fewer accountants are making the extra effort to become licensed CPAs. The AICPA is taking steps to discover why this trend continues. Initial findings are discouraging as the top three reasons for resistance to taking the exam are: • Time required to study the exam • Difficulty of the exam • Paying for exam prep courses

Advanced Placement accounting class that would teach actual accounting It would be easy to inappropriately and give students college credit for chastise the younger generation for successful completion of a rigorous lacking drive and ambition or for exam. This is in its early stage, but plainly being lazy; but do you really think these hindrances would be barri- watch for more in the future. ers if candidates understood the opThe call to action in this message portunities that await them as CPAs? is simple. Each one of us can be an evangelist for the CPA profession. Let’s In looking at our local and national squash the accounting misconceptions education system, the number of and take the time to educate students accounting classes offered in high from junior high to college. Share with schools has decreased. This could be others the benefits of being a CPA. due to a combination of declining With the number of opportunities this interest by students and fewer qualified teachers. The current high school profession offers personally, professionally and financially, we should accounting curriculum rarely teaches have no problem helping potential more than bookkeeping. The AICPA candidates see past the cops and the sees this trend and is taking action. cookies.

They are putting resources behind an

CEO’s message

CEO's Message Susan Speirs, CPA Businesses are find success through diversity

A

Fact: There is no compelling evidence nationally that indicates there is an opt-out revolution taking place for women. When women do leave the profession, it is not to raise children the majority of the time. Evidence indicates that staff retention programs should address all levels within the organization as different stages of life require Research has proven that diverse, heterogeneous teams different needs of employees. When asked what would be promote creativity and innovation. As we look at our most beneficial for an employee from a retention standcurrent workforce we sometimes see four generations point, most often the reply was flexibility. Some would working within the same company. While this may create argue that a flex-time arrangement is too costly. However, tension, if we understand that our workforce is fluid, we can companies are finding there is no increase in direct costs create an environment and culture that will accomplish our associated with flex-time arrangements; flex-time schedules goals. may enhance the bottom line indirectly because employees are in more control of their schedules. Research indicates Trends indicate that 16.5% are retiring from the profession that it can cost two to three times a person’s salary to while 5.5% are entering the profession. Those entering the replace them. If management practices flex-time scheduling profession will change jobs more often and will have less with employees they see decreases in lost intellectual loyalty to their employers. Annual turnover rates are capital, increased morale and better customer/client ranging between 20-30%. If employers are to continue to retention. expand their businesses they must learn how to retain their largest asset — human capital. Below are a couple myths As a profession, we need to examine best practices for regarding new CPAs entering the profession. retaining staff. There are seven items employers need to review as they look at their employee portfolios. Workplace Myth: The current generation entering the workforce flexibility tops the list followed by paid and unpaid time off, doesn’t want to work. health and well being, caring for dependents (children or parents), financial support, community involvement and Fact: The current generation works hard and utilizes technology better than prior generations. They’ve watched management involvement in an ever-changing cultural their parents work hard only to be terminated as employers environment. have downsized, moved in different directions or closed.

The sustainability of our profession rests upon the leaderYoung CPAs want balance; they want to spend time with their families, coach their kids and be involved in commu- ship abilities of those coming through the ranks. In order for our profession to remain relevant in an evolving global nity initiatives. economy and remain competitive, it is imperative that we Myth: Staff retention programs are geared mostly to women gain a well rounded, understanding of diversity. because women are the ones leaving to raise families. s you peruse this edition, you will see that our members are as diverse as our profession. Like changing technology or a global economy, diversity has become a business reality. Diversity and inclusion is a key part for the success of our profession.

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Celebrating CPAs Around the Beehive State Famed for it's great lake of salt and spectacular national parks, Utah is also home to more than 5,000 Certified Public Accountants. From the golden spike in the north to the red rocks of the south, the Beehive state has consistently ranked at the top of the testing scores on the CPA Exam. In this issue, we meet CPAs throughout the state who embrace the professional community in Utah and their respective chapters.

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Feature Story

Cache County Chapter

By Mary Peter

By Susan Speirs, CPA and Amy Spencer

C

PAs at the northern most part of Utah can be found between the Peach-celebrating folks in Brigham City and in Logan, Utah, home of Utah State University, Utah Festival Opera and Cache Valley Cheese. With a bevy of recreational opportunities, the professionals in the Cache Valley Chapter can be found trading in their calculators and spreadsheets in for hiking shoes and fishing gear on the weekends.

The Cache Valley Chapter has nearly 200 active CPAs who are members of the UACPA and we talk with one of their new professionals in this special edition.

Tara Williams Cook Martin Poulson, PC

From the time she was in a basic accounting class in high school, Tara knew she wanted to become an accountant.

"There was never a doubt in my mind that I would be a CPA," she says.

After receiving her Bachelor's in accounting from Utah State University and her Master's in Accounting from Weber State University, Tara went to work for Cook Martin Poulson, PC where she had previously interned. Satisfied with her career choice, Tara says, "I love being able to go to the client's place of business and give them valuable input that will help them succeed in their business."

With four seasons of postcard-perfect scenes in Cache County, Tara enjoys spending time outdoors, hiking and doing archery. She also likes crafting with her sisters.

Tara is involved with the Cache Valley Women in Business Group and says she has "enjoyed getting out in the community and connecting with other business women in the valley."

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Color Country Chapter

By Ryan N. Cramer, CPA

T

he Color Country Chapter of the UACPA encompasses the beautiful Southern Utah region from Richfield to St. George. CPAs serving in this area have a broad and diverse skillset. We highlight a few of the many talented CPAs for their diverse accomplishments.

Ken Hinton Hinton Burdick, PLLC

Ken Hinton grew up in Hurricane, Utah. He graduated from Hurricane High School, received his Associate’s Degree from Dixie College and then graduated Cum Laude from Brigham Young University with a Bachelor of Science Degree in 1978 and a Master of Accountancy Degree in 1979. He has worked in St. George at HintonBurdick, PLLC for 35 years and has made great contributions to the firm’s growth. He has served the community on various boards and committees, including the St. George Chamber 10

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of Commerce, Leadership Dixie, Dixie Regional Medical Center, and a number of local non-profit organizations. He has also served in several ecclesiastical leadership positions.

His hobbies include hiking, golfing, bike riding, bird watching, and spending time with his family. He has been happily married for 37 years to sweetheart, Kay G. Hinton. They have three daughters and 10 grandchildren. Ken is retiring this summer.

Dr. Nate Staheli Staheli Jacobsen, CPAs, LLP

Dr. Nate Staheli is an Associate Professor in Accounting at Dixie State University, where he received tenure in 2008. Nate received a bachelor’s degree from SUU in 1995 and his Master of Accountancy from SUU in 1996. In May of 2013, Nate was awarded with his Doctorate in International Management with emphasis in accounting from

Feature Story the University of Hawaii at Manoa.

Nate is currently the Senior Partner in the Accounting firm of Staheli & Jacobsen, CPAS, LLP. This firm was established in 1997 and specializes in Tax Preparation, Business Accounting, Consultation, Financial Planning and Expert Witness Services. The firm services clients in Utah and surrounding states. In addition, the firm has international clientele and provides services to clients in Hawaii.

Nate has been teaching full-time at Dixie State University since 1999 and is the Faculty Senate President for the 20142015 academic year.

Nate is a regular presenter at Utah State University Tax School and currently sits on various profit, non-profit, banking and educational boards. Recently, he was awarded one of three Bea Sanders/AICPA Teaching Innovation Awards, with his integration of the farming game and financial accounting.

Nate and his wife, Angie, have four children and resides in Santa Clara, Utah. Nate enjoys the outdoors, farming, coaching various sports and watching his children in their activities.

Philip Peterson City of St. George

Philip Peterson was hired by the City of St. George on Oct. 1, 1982 as city controller and later promoted to Finance Director.

Philip graduated from Piute High in 1970, Dixie College in 1972 with an associate’s degree, and from Southern Utah University in 1974 with a Bachelor of Science in Accounting with a minor in Business Administration. He was employed by a firm in Las Vegas, NV where he passed the CPA exam and received his certificate in 1976. Philip later worked for a firm and a local gasoline distributor, both in St. George.

Philip has served in the community, his church, and work associations. He was President of the Color Country Chapter of CPAs; served for 10 years (including two as President) on the board of the Utah Government Finance Officers Association; six years as a member of the Accounting, Auditing, and Financial Reporting Committee of the Govern-

ment Finance Officers of the United States and Canada; member and Secretary/Treasurer of the St. George Volunteer Firemen’s Association. Member of the AICPA and UACPA; Government Finance Officers Association of the United States and Canada; National Association of Accountants. He has been married for 39 years to his wife, Claudia.

They have five grandchildren and 1 great grandchild.

Owen Ashton Owen Ashton, LLC

Owen Ashton is an inspirational speaker, author, and executive coach. He helps individuals and organizations achieve their goals by being more fully engaged in their work.

His book, Rising Above Fog is a memoir of his overcoming personal challenges to climb to a much happier and more productive place. It addresses how to see oneself and others more clearly.

Previously, Owen was in the senior financial management of large, multinational corporations including AT&T, NEXTEL, and XO Communications. He began his career in Salt Lake with KPMG and Deloitte after he graduated from the University of Utah.

He is on the business and industry advisory council of the UACPA. He’s on the board of directors of NAMI Utah and the National Speakers Association Mountain West Chapter.

He has seven children and 17 grandchildren. Two years ago, Owen and his wife relocated to St. George, which is the geographic center of their scattered children.

Ryan N. Cramer, CPA lives in Ivins, Utah with his wife and three children.

Shalaun T. Howell, CPA is an audit He is currently the president of the manager specializing in nonprofit Color Country Chapter. He has worked organizations at Shaw & Co., P.C. for Savage, Esplin & Radmall PC since Shalaun holds a Bachelors of Science 2004. Ryan earned his Master of and Master of Professional AccounAccountancy from SUU in 2005, tancy from the University of Utah and became a CPA in 2006, and earned currently serves as the chair of the additional certifications as a Certified UACPA Nonprofit Committee. She can Valuation Analyst and a Certified Fraud be reached at shalaun@shaw-cpa.com Examiner

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Downtown Chapter

By Jerry Selbo, CPA, Susan Speirs, CPA and Amy Spencer

T

he Downtown Chapter is the largest chapter in the UACPA, with more than 1,800 members stretching from the point of the mountain in the south to Davis County in the north, including employers like Salt Lake County and the State of Utah, the University of Utah, the LDS Church, Rio Tinto, and a large number of national and local public accounting firms.

Chapter meetings are a two-hour breakfast held every other month at the Little America Hotel.

Although many of our colleagues in the more rural areas of the state would disagree, we feel the Wasatch Front is the place to live, for one main reason: Access. he cultural opportunities, sporting events, shopping, restaurants, and variety of places to go and things to do is unsurpassed.

Jon Daich SMG, Salt Palace Convention Center The Director of Finance for SMG at the Salt Palace Convention Center got his start by dabbling in business and 12

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accounting classes in college. "As I looked into Accounting as a career, I saw that being a CPA was the goal I wanted to achieve. As I proceeded through my education, I found I enjoyed this work and saw that there were more opportunities in this field than most because all business needed accounting professionals."

Jon started as a bookeeper at a furniture store and was later hired at Tanner Brunson Pickett CPA firm in Ogden. After seven years working working at the Auditor's Office in Weber County, Jon was hired on as Director of Finance for SMG at the Salt Palace Convention Center. The Salt Palace is managed by SMG, a private facilities management company founded in 1977. SMG, the world leader in venue management, marketing and development, handles management of the Louisiana Superdome. The company has grown to include more than 230 convention centers, exhibition halls and trade centers, arenas, stadiums, performing arts centers, theaters, and specific-use venues such as equestrian centers.

Feature Story "I have been involved in my community in various capacities and am currently the President and board chairman of the Repertory Dance Theatre, a dance company in Salt Lake that has been around for 48 years."

Jon adds, "My wife and I have had various hobbies together over the years: We have done ballroom dance for a number of years and managed a dance club at Weber State University. We currently enjoy touring on our Harley motorcycles across the county. My wife has put 90,000 miles on her bike and I have over 100,000 on my first and second Harley. We have four children and are waiting for our first grandchild."

Joan Glenn JDGlenn & Associates, PC Joan D. Glenn decided to become a CPA while she was in high school.

She knew her CPA brother was making good money. "I wanted to become a dancer but my dad said 'absolutely not.'"

The owner of JDGlenn & Associates, PC has been specializing in ERISA retirement plans and health and welfare plans for more than 30 years. Her practice consists of retirement plan auditing, third party administration of defined contribution and defined benefit plans, designing and setting up retirement and health and welfare plans, serving as independent trustee on behalf of Companies for their retirement plans, and various consulting services such as dealing with IRS and DOL audits. "I enjoy the complexity of the retirement plan arena," Joan says. "It is always changing so the challenge to learn new laws and regulations is very exciting."

Joan enjoys serving as publicity chair on the Wasatch Community Symphony Orchestra (WCSO) board where she is second chair cellist. She also enjoys fishing and traveling to visit her children on the east coast. "We just bought a house on an island in Maine so we have a place to enjoy the Atlantic Ocean."

Russell Baird Baird, Blackburn and Associates, PC Russell Baird is the founder and President of Baird, Blackburn and Associates, PC, a CPA firm in Bountiful that serves private businesses, government agencies and individuals. His public accounting career has included auditing and accounting, tax, business consulting and financial planning.

Russ graduated from BYU with a Bachelor's in Accounting in 1983. In 1998 he was awarded a Certificate of Educational Achievement in Government Auditing from the AICPA. He devotes his current study to the securities industry, and he has a passion for investment analysis. Russ is also a registered Peer Reviewer under the AICPA peer review program.

Russ has been involved in various capacities of the UACPA and is currently heading up the Golf Tournament and working on the UACPA Motorcycle Ride committee.

Russ and his wife, Kathy, have been married 33 years. They have three children and soon-to-be seven grandchildren.

They have a cabin at Bear Lake, where they like to spend time with their family. Russ is into running and triathlons, motorcycle riding and touring, hunting and fishing, golf and investing.

Jerry Selbo Smith Powell and Company LLC Jerry Selbo is the current President of the Downtown Chapter. He is a CPA at Smith Powell and Company LLC. They are one of the oldest CPA firms in Utah, having recently celebrated their 100-year anniversary.

Jerry has been with the firm since 2004. He graduated from Eastern Washington University, and has been a CPA since 1992. He is a transplant from Spokane, Washington, where he was born and raised.

He’s active in his church, likes to sing and play guitar, golf, fish (when he can find the time), and he likes to travel with his wife, Cindie.

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Mountain Mountain Chapter Chapter

By Erica DzIERZON, cpa

By Erica Dzierzon, CPA

T

he UACPA Mountain Chapter covers Park City and surrounding areas. It is a small but very active chapter and members are privy to some of the most beautiful sceneries in Utah and can be often be found taking advantage of the hiking and biking offered in the Park City area.

The Mountain Chapter is a very close-knit community of CPAs with many years of camaraderie and commitment to the best interest of the community. Although we could not feature all of our amazing members, a few are highlighted.

sive experience in business and individual tax planning and oversees all aspects of the firm's tax, accounting and audit services. He is a licensed CPA in Utah and Texas and is a member of the American Institute of Certified Public Accountants and the Utah Association of Certified Public Accountants. Jay is an active contributor to the community through Boy Scouts and religious contributions. He enjoys hiking, camping, basketball and loves Park City for its mountains, seasons, climate and people.

Jay Niederhauser Niederhauser & Davis, LLC

Julie Strople Niederhauser & Davis, LLC

Jay Niederhauser is one of the founding members of Niederhauser & Davis, LLC. He has a Bachelor's in Accounting from Utah State University and more than 30 years of experience, much of which is in tax and audit with large international accounting firms. Jay has exten14

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Julie Strople was raised in Muskegon, Mich. She moved to Park City, Utah in 1991 upon graduating from Hope College. She continued her education at the University of Utah, where she graduated with an MBA. Julie obtained her CPA license in 2001 and currently works at Nie-

Feature Story

derhauser and Davis supervising in tax and accounting services. Julie is married with two sons and a daughter. In her free time, Julie enjoys skiing, biking, running, triathlons and vacationing with her family and friends. Julie has served in the UACPA Mountain Chapter for several years and continues to be an asset to the community.

Stephanie Russell Niederhauser & Davis, LLC Stephanie Russell relocated to Park City from Atlanta, Ga. in 2005. She received her Bachelor's Degree in Accounting in 1996 from Kennesaw State University in Marietta, Ga. Stephanie has more than fifteen years of experience working in all aspects of a public accounting firm, including accounting and tax services, and administration.

She is a licensed CPA in Utah and Ga. and a member of the American Institute of Certified Public Accountants and the Utah Association of Certified Public Accountants.

In her free time Stephanie enjoys spending time with her two children, gardening and enjoying the Park City life.

Stephanie has been a contributing member of the UACPA Mountain Chapter Presidency for many years and currently works at Niederhauser and Davis supervising in Audit and Tax services.

Rex Keeler Keeler & Underhill LLC Rex Keeler grew up in Evanston, Ill. later relocating to Sarasota, Fla. where he received his graduate degree from the University of Florida.

Rex grew his tax service firm from the ground-up with his partner Stan DeWaal later consolidating the practice with CBIZ. After years of partnering with CBIZ he relocated to Park City where he started Keeler & Underhill LLC. Over the years, Rex has helped several not-for-profits and served on several boards. His hobbies include golfing, skiing, traveling with his family and fishing on his boat in the Gulf of Mexico. He loves the Park City area for the people, family environment, small-town feel and the diversity.

Erica Dzierzon CPA joined the UACPA Mountain Chapter in 2011 after graduating with her MBA from the University of Utah. Shortly after she received her CPA license, Erica had the opportunity to practice public accounting in the great Park City area. Although she now works remotely for a company based outside Utah, she remains as the chapter president due to her love of working with Park City community. In her free time she likes to spend time with her family, enjoy the local markets and festivals and cross-train.

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Northern Chapter

By Chett Campbell

T

he Northern Chapter of the UACPA is the best, and yes I am totally partial. I’ve been a member of the UACPA for three years and I’ve remained a member because I like the opportunity to build relationships with those within and outside of the industry, and to take advantage of the resources the organization offers. The members in our chapter range from Brigham City to Salt Lake City and reflect mostly government and private industry. We have members who don’t work within our chapter boundaries, but choose to participate because they enjoy the group dynamic.

The Northern Chapter has about 30 active members and generally meets the third Friday of the month (September through May) from noon to 1 p.m. at the Prairie Schooner in Ogden. Our meetings are fun because they’re not just focused toward those in public accounting, but on industry interests and what we think would be beneficial to our members.

If you’re interested, please come out to one of our luncheons and see for yourself.

Meet some of these UACPA members who represent the different communities and industries in the Northern Chapter.

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Sherie Charlesworth Weber School District, South Ogden

Sherie is what one would call the loyal of loyal employees. She has served as the Internal Auditor for Weber School District for more than 14 years. Before going to college, she spent 13 years working as a bookkeeper/office manager. She graduated from Weber State University and worked as an auditor for a local accounting firm, then moved to Parker Hannifin in their finance department before settling in at the Weber School District.

She said her experience as a bookkeeper sets her apart from many CPAs and enables her to see things from a different perspective.

Sherie currently sits on the Board for the Eccles Community Arts Center and has previously served on the Board for the Northern Chapter of the American Red Cross. She is a past officer for the Northern Chapter of the UACPA and has enjoyed participating in this chapter. She says, “It is a great group of CPAs and we always have interesting lunch meetings.”

Feature Story Sherie said she loves to travel and always tries to visit a few wineries in whatever place she is vacationing in.

Tracy Probert Layton City, Layton

Tracy is the Finance Director for Layton City. He graduated with a Bachelor’s degree in Accounting/ Spanish from Weber State University and received his MBA from Utah State University. His work history started as an accountant and logistics/translator. Tracy worked as an auditor focusing on local governments and then moved over to work for the government. He was the Assistant Finance Manager for Ogden City for six years prior to his current position at Layton City. He has been at Layton City for two years.

In his spare time, Tracy is devoted to his family. They spend a lot of time hiking, hunting, camping, going to dance competitions and basketball tournaments. All of these family activities could easily take up every free moment, but Tracy finds the time to fit in a bit more. He has spent many years involved in the scouting program to help young men achieve their scouting goals.

Tracy says that being part of the Northern Utah Chapter "provides a great opportunity to maintain the relationships established at various stages of my career. I have worked with many of the active members and it is nice to get together, share ideas and ask questions.”

Matt Taggart, Eide Bailly, Ogden

Matt is a graduate of Weber State University. He started out working for a small, local accounting firm while attending school and upon graduation, worked at Deloitte in Salt Lake City for three years. He is now the Senior Audit Manager at Eide Bailly and has been with the firm for eight years. He has worked in a variety of industries, but his current emphasis is on financial institutions and government.

Matt says developing and maintaining strong client relationships are important to him. He said he takes pride that his clients look to him as friend and trusted advisor. If they’re successful in their business, then he is in his.

Matt is a board member and Treasurer for the Northern Utah Chapter of the American Red Cross and serves as President of the Ogden Rotary Club Foundation. Matt enjoys running, biking and spending time with his family. He has six children so their hobbies are now his hobbies. He coaches his children’s soccer teams and with the help of his wife, supports them in their various events/activities —which we can imagine is a lot!

“I have met and built great business relationships in our community due to my involvement with the Northern Chapter of the UACPA," Matt says.

Darren Godfrey Goldenwest Credit Union, Ogden

Darren grew up in Ogden and is a graduate of Weber State University.

He started working at Goldenwest Credit Union as a part-time teller in 1984 and worked his way up to Controller, VP of Accounting, CFO. Darren also worked briefly for the Utah State Auditor’s office and for Utah League of Credit Unions.

So what makes Darren stand out as a CPA? He said he is objective and can take a step back and look at the big picture rather than getting caught up in all the numbers. He currently works with the Young Men’s group at his church and has been a youth coach for basketball, soccer and baseball for more than 15 years! Darren lives in Fruit Heights with his wife and four children.

Chett Campbell, CPA is a Tax Senior Associate at Eide Bailly. His emphasis includes nonprofit, corporate, private and individual taxation. He is a graduate of Weber State University and often helps the firm with recruitment activities. He can be reached at cjcampbell@eidebailly.com

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Southern Chapter

By Amanda Barret-Brough, CPA and David Glenn, CPA Photo by tara Kearl

U

ACPA Southern Chapter members are primarily concentrated in Utah County. The second most populous county in the state, Utah County is a close-knit community with recreational opportunities including Utah Lake, Bridal Veil Falls, and mountain canyons for hiking, camping, and cycling. The metropolitan area extends from Alpine to Santaquin. Utah County is home to two large universities, BYU and UVU, which serve the educational needs of the community well. Business development has increased dramatically in recent years and opportunities are flourishing. We have selected a few members to highlight out of the many outstanding UACPA members in the Southern Chapter. They were selected for their unique backgrounds, remarkable accomplishments and dedicated community service.

Lori Reay Hawkins, Cloward & Simister, LC Lori is a partner at Hawkins, Cloward & Simister, LC in Orem, UT and was awarded the 2010 AICPA’s Women to Watch Emerging Leader Award. She is the only CPA in Utah to hold the Certified Pension Consultant (CPC), Qualified Pension Administrator (QPA) and Qualified 401k Administrator

(QKA) designations. Lori holds an MBA from Utah State University.

In addition to her accounting practice, Lori is an ad hoc committee member for the ASPPA Education and Exam Committee, a member of the Utah Valley University Gift Planning Advisory Board, the Utah Valley University Alumni Board, and the Western Pension Benefits Council.

In her spare time, Lori enjoys traveling with her husband and three children. She finds a strong sense of friendliness and community in Utah Valley.

Brett Redd Squire & Company, P.C. Brett Redd is a business advisory manager at Squire & Company, P.C. Brett took a unique route to becoming a CPA having started his career as an entrepreneur in several industries including wireless retail, home security, residential land development, and financial services.

As Brett completed his Masters of Accountancy at the University of Phoenix, he decided that becoming a CPA was an important step that would validate the financial services he performs and increase his clients’

Feature Story confidence in him. Brett was excited to jump into public accounting because of the opportunity to learn from many different business owners and to see how industries unfamiliar to him operate.

In addition to his advisory practice, Brett has been involved with Jump$tart Coalition, a financial literacy program for high school students. He has served as the Utah County Chair and volunteers to teach at high schools.

Brett and his wife have five children. He enjoys fly fishing, golfing, playing softball and spending time with his family.

He is involved with his childrens’ activities including coaching their sports teams. Brett enjoys the close-knit community, the recreational opportunities and the concentration in the software and direct selling industries in Utah Valley.

Dr. Stan Jenne Utah Valley University Dr. Stan Jenne is an accounting professor at Utah Valley University (UVU). He first came to UVU as the Dean of the Woodbury School of Business and led the school through the final stages of AASCB accreditation. Beginning July 1st, he will serve as the accounting department chair, an honor he has been given three previous times — all at different universities. Dr. Jenne also chairs the Audit Compliance Committee at Treasure State Bank in Montana where he was an original organizer.

Dr. Jenne is actively involved in the American Accounting Association, the largest community of accountants in academia. He is passionate about helping students and guiding them to a successful career. It is important to Dr. Jenne to maintain a connection with the profession outside of academia. He has public accounting experience in both auditing and tax as well as experience in the banking industry.

Dr. Jenne and his wife have four children and eight grandchildren. He enjoys skiing, spending time with his grandchildren and has become an avid runner over the last few years. He has completed several races, most notably a half marathon. He enjoys the beautiful outdoors in Utah Valley as well as the fact that many of his grandkids are nearby!

Heidi Topham Gold Tip Heidi Topham is the chief financial officer at Gold Tip, the third largest arrow manufacturer in the world.

After completing her education at the University of Utah, Heidi began her career in the residential and land development industry. It was her dream to become a CPA and felt strongly that a CPA designation would add a level of credibility to her expertise and provide opportunities for career progression. After 14 years as a controller, she took a risk and moved to public accounting. Heidi obtained her CPA designation, and after three years of public accounting, she received an opportunity she couldn’t turn down and became the CFO of Gold Tip. Heidi has been actively involved in the Republican Party.

She served as the Utah County Republican Party Precinct Vice-Chair and County Delegate from 2008 to 2012. She is also involved in the Utah County Chapter of Risk Management Association.

Heidi’s four children keep her busy and spending time with them is her favorite thing to do. She also enjoys skiing, hiking, biking, and kayaking. She feels like Utah Valley has been a great place to raise her family and enjoys the mountains and outdoor recreational opportunities it provides.

Amanda Barrett-Brough, CPA is an audit manager at Squire & Company, P.C. She is currently the UACPA Southern Chapter President, and has served in the presidency two previous terms.

David Glenn is a tax senior at Hawkins Cloward & Simister, LC. He is currently the UACPA Southern Chapter Vice President, and has served in the presidency one previous term.

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Uintah Chapter

By Susan Speirs, CPA and Amy Spencer

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ome to Flaming Gorge, Dinosaurland and serene mountain peaks, Vernal is located at the heart of Uintah County. Outdoor enthusiasts are drawn to the recreation and scenic byways where the local economy is fuelled primarily by its natural resources — petroleum, natural gas and phosphate.

With less than 30 UACPA members, the Uintah Basin chapter may be small in number, but the biggest in camraderie among members. We get to know three members who love the recreation and small-town vibe of the northeast corner of the state.

Danny Long DCLCPA "After my first accounting class as a Junior in high school, I was hooked, " Danny says. "Accounting provided me the opportunity to follow my father's footsteps and become a

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CPA." He received both his BS in Accounting and MPrA from the University of Utah.

In business since 1982, Danny has been in the Vernal area since 2004 and became the owner of DCLCPA of January 2011 where he provides tax, payroll, and accounting services to oilfield services, hospitality and retail businesses as well as construction companies, farms and ranches, individuals and families.

Danny supports his community by participating in local events, schools and charities such as the Uintah Basin Junior Livestock Show and Vernal Youth Baseball. He helps couch kids' soccer, baseball and football teams.

With proximity to the mountains, lakes and desert, Danny says he enjoys hunting, fishing, camping, and sports. He

Feature Story also enjoys bringing his wife and three kids to University of Utah football and basketball games.

Danny adds that "the Vernal area is growing, but still has that small-town feel."

Ryan Snow Burdick Materials As a student at Utah State University, Ryan was working to become a computer system's analyst while simultaneously taking an accounting class which his CPA father encouraged him to take. On one occassion, Ryan found himself among the half of the class not laughing at a joke the professor told in his computer science class.

The next class he had was an accounting class where he was among the half who laughed at the professor's joke.

From that moment, Ryan felt he had found his place in accounting.

When Ryan finished his Bachelor's in Accounting, he went to work for the Utah State Tax Comission then moved to the Uintah Basin for a CPA firm after completing his MBA. He served a three-year appointment by the US Treasury Secretary as an advisor to the IRS on the Electronic Tax Administration Advisory Committee.

By day, Ryan works as a Controller for Burdick Materials, but by night and weekends, Ryan can be found in his own firm doing taxes and financial services from construction companies to doctors.

Ryan is an active member of the Duchesne County Chamber of Commerce and is involved in local politics.

Being that Ryan works in construction, he likes to give back to the community and visits the 4th grade classes to teach about mining, rock and construction.

Outside of work, Ryan enjoys traveling, camping and playing sports with his kids. He also enjoys gardening and lives on a quarter acre lot where he grows a variety "I live

on a quarter acre lot and have over nine different fruit plants."

"The Uintah Basin is filled with great people who care about their neighbor and look out for one another," Ryan says. "I enjoy the quietness of a small town. I enjoy the ability to drive less than a half hour and be in the mountain with all its beauty.

Mike Robinson Uintah Engineering & Land Surveying (UELS) As a teenager living in Beaver, UT, Mike knew of a man that would travel around the area and help businesses with their accounting.

One of his clients was his parents.

He helped them out quite a bit and Mike gained a lot of respect for him. Because of the respect he had for the gentleman, he decided to pursue a degree in accounting.

Mike worked for a trucking company as he went to college and graduated from Southern Utah State College, as it was called back then. Soon thereafter he went to Vernal to work.

Since 2008 Mike has worked for Uintah Engineering & Land Surveying (UELS) helping them expand from two to 10 offices employing more than 150 employees. The company provides land surveying and civil engineering services to the oil and gas industries. Before joining UELS, Mike worked for Dullinger, Judd a CPA firm in Vernal where he provided tax and small business services.

Outside of work, Mike is very involved with his family.

He and his wife have four kids that live in Utah, one in Colorado and one Oklahoma. They spend time attending sports events with their children and grandchildren as well as church activities. They enjoy spending their family time hunting, fishing, shooting, and the small town environment of Vernal and the big outdoors.

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by the

Numbers

These numbers from NASBA reflect CPA Exam Performance covering all jurisdictions in 2013.

CPA Exam Performance

61.3 58

Percentage of Utah's pass rate which ranks as number one in the country

Percentage of individuals who were taking the exam for the first time

29.4

The average age of individuals who sat for the exam

45,198 The number of females who sit for the exam, slightly less than 50 percent of those who tested

14,314

California's number of CPA candidates, the highest number in the country http://nasba.org/files/2014/02/2013-Overall.pdf

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The CPA's Role in Preventing the Inadvertent Implosion of Estate Tax Plans

By Ronda H. Gardner, CPA

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n 2012, there was so much uncertainty in the estate tax planning arena that many attorneys were rushing to get their clients to use the $5 million exemption before it was too late. As a consequence of their planning, we have many clients who used their lifetime exemption to make gifts to irrevocable trusts. Although the numerous and complex estate tax planning strategies available are too broad to address in this article, there are some basic concepts of trust and estate accounting and reporting which we need to understand in relation to irrevocable trusts. Throughout this article, any reference to a trust refers to an irrevocable trust, not a revocable grantor trust commonly used by middle class Americans in basic estate planning.

tion. Tax software does not automatically report the gift in the right section. Collaborate with the drafting attorney to verify that your wording and placement accomplishes the goal of the estate plan.

In addition to the gift tax return, the trust has annual tax reporting requirements. The IRS grantor trust rules (See code sections 671-678) require that the income, deductions and credits of the trust be included on the grantor’s personal tax return. Reg. 1.671-4 specifies various ways in which the reporting to the grantor can be accomplished.

What seems to be the most common reporting method is set forth in subsection (a) of the regulation. It states that “…items of income, deduction, and credit attributable to Often, we hear that irrevocable grantor trusts are income any portion of a trust that…is treated as owned by the tax neutral. While that may be true, they are not estate tax, grantor or another person, are not reported by the trust on reporting or accounting neutral. When assets are transForm 1041... but are shown on a separate statement to be ferred to an irrevocable trust, a gift tax return (Form 709) attached to that form.” So this method requires the filing of must be filed. The math on a 709 is easy, but the gift dea 1041 with the attachment of a statement listing the items scriptions can be intricate and the reporting of the gift in which the grantor must include on his 1040. Even though Part I, II, or III of Schedule A can affect future estate taxa- there is no income reported on the face of the 1041, it the journal entry | July 2014

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Preventing the Inadvertent Implosion of Estate Tax Plans must be filed with the attached grantor report.

or the trust may need to borrow funds. If the trust borrows from a related party, it must be arms-length and In order to protect the integrity of the estate plan, the trust must charge interest at a rate no lower than the Applicable must be respected as a separate entity with tax filings and Federal Rate. accounting records. A common estate tax planning strategy includes the sale of assets (often a business interest) to Trust Distributions the trust. This creates three important areas in which we need to monitor and train our clients: Although distributions to the grantor’s spouse are often allowable, to make a distribution to a spouse essentially 1. Note payments must be made according to the brings the assets back into the taxable estate. The problem terms of the note. is that the clients used their lifetime exemption to fund the trust and they do not get to reclaim the exemption when 2. No additional contributions can be made to the they take back the assets. The exemption is simply wasted. trust without gift tax consequences.

This is common when the client is accustomed to living off the business distributions. Hopefully, the client retained 3. The grantor (our client) should not be taking assufficient assets outside the trust to meet living needs. sets from the trust.

Note payments from the trust to the grantor are also a source of personal funds.

In order to protect the integrity of the estate plan, the trust must be respected as a separate entity with tax filings and accounting records. a Common estate tax planning strategy includes the sale of assets (often a business interest) to the trust.

Note Payments The note must be treated as an arms-length transaction.

Keep track of the amortization schedule and ensure that payments are made timely. Be sure to list the note receivable on the grantor’s personal financial statement. (And DO NOT LIST the business which is now owned by the trust.) Pursuant to Revenue Ruling 85-13, the interest income is not reported on Schedule B of the 1040, nor is the investment interest expense of the trust claimed on Schedule A.

Trust Contributions Contributions to an irrevocable trust are taxable gifts.

Without training and supervision, it is common for our clients to continue to put money into “their” business when needed. If a capital infusion is required and the trust has no cash, either the business needs to borrow funds, 24

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Steps to Take Now Find out if your wealthy clients have established estate plans involving irrevocable trusts. Obtain a copy of the trust documents and read them. Contact the drafting attorney to be sure your interpretation of the plan is correct.

File or obtain a copy of the Form 709. Review trust transactions (including capital contributions and distributions in the trust owned businesses) and contact the attorney if there have been inappropriate transactions (such as additional contributions to or distributions from the trust) and determine what remedial actions can be taken. Have the attorney draft any additional notes or documents required.

Continue to monitor trust transactions and train your clients to respect the “trust veil” just as you trained them to respect the “corporate veil.” n Ronda H. Gardner, CPA is the owner of Gardner Estate & Trust, CPA, LLC, a firm devoted to estate and trust taxation and administration. She has 30 years of experience in taxation with the last five years focused on estate plans and trust taxation. Reach her at ronda@gardnertrust.com. For more info, visit www.gardnertrust.com.

Protecting Intellectual Property from Theft and Infringement

by Jared A. Funk, CPA, CFE

B

usinesses today derive much of their value through intellectual property (“IP”). Many of these businesses, however, experience significant losses annually due to the theft and infringement of their IP. The Commission on the Theft of American Intellectual Property estimates the U.S. economy annually experiences over $300 billion in losses internationally through the theft of IP. Theft statistics, such as these, along with the threat of infringement, force companies to take aggressive action to ensure their IP is properly protected. Fortunately, CPAs are in a prime position to aid companies in their IP protection efforts.

Common Types of IP Patents To obtain a patent, inventors must be able to represent that their invention or discovery is a “new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof." Patents include valuable rights that can create economic benefits to patent holders. For example, a patent may create valuable opportunities to sell new products or to generate royalty

payments from entities receiving a license to the patent.

Patent rights also include legal protection against entities that may be infringing the claims found within a patent.

Companies recover millions of dollars each year from patent infringement litigation. In addition, courts have the power to impose injunctions on infringers to cease any further infringing activities.

Trademarks Companies use trademarks for goods (or service marks for services) to distinguish and identify goods (or services) from those of their competitors. Trademarks can involve a word, logo, phrase, symbol, product shape, or device. Examples of famous and valuable marks include the Coco-Cola bottle shape and the McDonald’s golden arches. To sustain trademark rights, companies are often forced to vigorously protect their marks from infringement through notification of a trademark on products and litigation. the journal entry | July 2014

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Protecting Intellectual Property from Theft and Infringement An example of trademark infringement involves the People for the Ethical Treatment of Animals (“PETA”) v. Michael T. Doughney (“Doughney”) case. PETA is an animal rights organization “dedicated to promoting and heightening public awareness of animal protection issues.”

PETA registered its “PETA” mark in 1992 with the United States Patent and Trademark office. PETA sued Doughney asserting, among other causes of action, service mark infringement, which was caused when Doughney created a website called “People Eating Tasty Animals” and registering the websites domain name as “peta.org.” Doughney in his defense argued that the website was a “constitutionally-protected parody” of PETA and was therefore protected. The Court, however, disagreed and ruled in favor of PETA.

Copyrights Copyrights protect original works of authorship fixed in any tangible medium of expression. These original works include such items as literary works, motion pictures and other audio/visual works, software programs and applications, and architectural works.

Theft of copyrighted materials and copyright infringement can heavily affect a company’s ability to maximize any economic benefits available through its copyright.

For example, in a recent case involving two pest control companies with operations in Northern California, the Plaintiff sued a competitor for copyright infringement after discovering that three of the Plaintiff ’s key sales materials (Sales Manual, Welcome Letter, and Service Agreement) had been inappropriately obtained and used in the establishment of the competitor’s business. The Plaintiff viewed these key sales materials as the “secret sauce” to its business operations. The competitor assembled its own sales materials by blatantly copying the Plaintiff ’s key sales materials. The competitor used the copyrighted materials in its operations for a four-year period, until a judge imposed an injunction ceasing any further use of the materials. The case was ultimately settled with the competitor paying a large sum of money to the Plaintiff.

Trade Secrets Trade Secrets consist of formulae, physical devices, ideas, compilations of information, patterns, or processes that 26

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provide the owner with a competitive advantage and are treated in such a way as to prevent the public and competitors from learning about them. An example of a popular trade secret is the formula for Coca-Cola.

Theft of trade secrets, or economic espionage, brings significant losses to companies internationally. For example, the FBI estimates that foreign competitors cause billions of dollars in losses through economic espionage techniques and sources including bribery, dumpster diving, wiretapping, discreet theft, former employees, etc.

Theft of trade secrets, or economic espionage, brings significant losses to companies internationally. For example, the FBI estimates that foreign competitors cause billions of dollars in losses through economic espionage techniques and sources including bribery, dumpster diving, wiretapping, discreet theft, former employees, etc.

Ways CPAs Can Protect IP CPAs can help protect company IP through providing some of the following services: • Ensure that appropriate internal controls over IP are in place. Examples of IP-related internal controls may include educating employees regarding the proper use and sharing of IP, proper registration of IP, non-disclosure agreements with former employees, indemnification clauses with any IP-related third parties, etc.

• Regularly value IP and analyze ongoing economic factors that may positively or negatively affect the future value of the IP. This can be an extremely valuable procedure as companies assess how to best exploit the economic benefits associated with their IP. For example, some companies perform this procedure to assess whether or not it is prudent to litigate against potential infringers of their IP. CPAs, especially those possessing valuation expertise, can be particularly helpful to companies needing to perform this procedure.

Business and Management • Provide litigation support services. CPAs are often hired to calculate and advise counsel and companies on damages experienced through theft and infringement of IP. • Investigate immediately circumstances surrounding any suspected thefts and/or infringement of IP. CPAs (e.g. forensic accountants and appropriately trained auditors) may be called upon to investigate instances where a company’s assets, including its IP, have been misappropriated.

tionship with the licensee in tandem with their hiring of a CPA to ensure that the CPA is qualified to handle all aspects of the compliance review, particularly if settlement of any findings from the review could lead to litigation or arbitration.

Companies experience significant losses each year through the theft and infringement of their IP. Fortunately, CPAs are in a prime position to aid companies in their IP protection efforts. n

• Perform compliance reviews of licensees to ensure royalties are accurately paid. It is very common in certain industries (e.g. pharmaceutical, software/technology, and fitness) for a company to enter into licensing agreements with competitors for the use of patents and other IP. These licensing agreements often require the licensee to pay a royalty to the patent holder with the royalty being based on net sales or some measure of income. A company may want to hire an outside CPA to perform a compliance review to ensure the appropriate amounts of royalties are being paid by licensees. Companies should carefully assess their rela-

Jared A. Funk, CPA works at the consulting firm Berkeley Research Group, LLC located in Salt Lake City, Utah. He has more than 13 years of experience consulting on such projects as intellectual property matters, forensic accounting, economic damages, royalty compliance reviews and receiverships. He can be reached at jfunk@brg-expert.com.

Golf Tournament Tuesday, August 19 Time: 8 a.m. Shotgun Start Location: Thanksgiving point, 3300 W. Club House Dr., Lehi Fees $450 per team; $115 per individual Bring your swing to the UACPA's annual golf tournament where 36 teams of four will be playing to benefit the Utah CPA Foundation, supporting financial literacy in Utah. Prizes and raffle will take place during lunch.

For info about the tournament and sponsorships, contact Tisha Smith, ts@uacpa.org the journal entry | July 2014

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“Know thy self” is an important first step in becoming an exceptional leader, but understanding the strengths of your organization and your team members is equally important. As you learn to identify areas of strength in others, it will allow your team to achieve maximum results and will inspire people to follow you as you work to build consensus. The Insights to Action curriculum teaches you critical and creative thinking skills that facilitate collaboration and a shared vision.

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Visit www.uacpa.org and and apply online Search “Leadership Academy” to learn more

Fly Fishing and the Art of Proactive Patience

by Dan Griffiths, CPA

I

love to fly fish. My wife would tell you that “love” is perhaps too soft a word to describe my affinity for the sport. If you were to ask any group of avid anglers about the key to their fishing success, one of the most common responses would be “patience.” While I tend to agree, I think that the kind of patience they are talking about is often misunderstood.

Proactive Patience in the CPA Profession

This is what patience is really about; taking the time to prepare, to read the water, and then take deliberate action. As a profession, this is the kind of patience we want to cultivate. It’s what I like to call “proactive patience.”

It’s not sitting around waiting for the fish to bite — waiting for things to change. It’s being proactively engaged in shaping the future by taking purposeful action informed by careful observation.

Save the Date

The patience required for success in fishing is rarely about sitting around waiting for the fish to bite. If you have ever observed a patient fly fisher work a section of Young CPAs at firms across the country can fall into the stream, you will notice a few things. First, she will spend trap of waiting around for the fish to bite. How many time attempting to identify what the fish are likely to be professionals do you know who are just waiting until a eating, then roll over a few rocks or shake the bushes particular partner retires or until the economy recovalong the edge of the river. She will then identify theeptember ers? There are certainly some things that may be outside piece of water where she believes the fish are holding. of our direct control. However, when we simply sit on Perhaps she has noticed a fish rising or the telltale flash Professional Issues Update by bank and wait CGMA, for the fish to come to us, we miss the of a fish feeding below the surface. She will then stealthily William E.the Balhoff , CPA, CFF, AICPA Chair monster trout that may be rising under the willow along move into position to get the perfect casting angleMand, ore details coming soon! the opposite bank. finally, make a single cast. More often than not, she will be rewarded with a fish at the other end of the line.

Annual Member Summit &Awards Banquet S

26, 2014

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Fly Fishing and the Art of Proactive Patience

What Does Proactive Patience Look Like for Young CPAs?

energy and enthusiasm. What will our contribution look like? What do you see as the biggest opportunities for young CPAs that want to get off the bank and wade into What if the deck is stacked against us? What if that fish is the river? What can we do to contribute to shaping the holding in the middle of the river and I have to cast a mile future of our profession? n to reach him? What if the weather is less than ideal or the river is running high? Collectively, our young age and relative inexperience sounds like a big disadvantage. This Dan Griffiths, CPA, CGMA is the is especially true when we think about our ability to influDirector of Strategic Planning at ence the profession. We’re not as well connected, respectTanner, LLC. Dan is a graduate of the ed, or experienced as our older peers. We could easily use 2010 AICPA Leadership Academy this as an excuse to say, “I’ll wait until I’m older and more and in 2011-2012 served as the chair influential to engage in professional issues.” of the Young CPA Network Committee for the AICPA. Dan has been This is a cop out. Did today’s senior members of the CPA active with the UACPA and in 2011 profession get to where they are now by sitting on the was recognized as the Outstanding bank? I have a number of thoughts about what we can CPA in Business and Management. do as young CPAs to get off the bank and engage in the He was recently selected to serve as profession, but would like to hear yours.

Utah's elected rmember of the AICPA Governing Council.

What we lack in age and experience, we make up for in

Annual Member Summit &Awards Banquet September 26, 2014

Professional Issues Update by William E. Balhoff, CPA, CGMA, CFF, AICPA Chair More details coming soon!

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IT Challenges, Opportunities, and Advantages

By Gary boomer, CPA, CITP

A

ccording to a recent article in CIO Magazine, "Clueless in the Boardroom," research shows most boards don’t understand enough about IT to keep up. The research was done by PricewaterhouseCoopers and reveals that only 1% of directors have any technology background. Approximately 40% don’t even care about IT and 57% rely heavily upon what they read. The challenge of IT leaders and professionals is to better communicate and educate these leaders. By doing so, opportunities and strategic advantages are gained. From my experience, these findings hold true in most multiple partner accounting firms. Few firms have a functional IT committee, spend adequate time on IT strategy, and focus on innovation rather than IT maintenance. Too many firms employ a defensive rather than an offensive strategy. This approach increases stress and reduces the return on investment. Why and how can this be changed?

Challenges The research points out several challenges for businesses and their IT leaders. Most boards or partner groups seek

the counsel and reporting of their IT professionals in brief segments (typically no longer than 30 minutes) and many admit they really don’t understand what the IT leaders are saying. This is risky and generally inefficient. CIOs need to become leaders who teach other C-Level executives and board members how to tell time and not how to build the watch. A high level of trust in an organization can reduce both time and the amount of the investment. Low trust produces the opposite effect by increasing time and the investment.

Another challenge is how to integrate IT strategy with the business strategic plan. This is especially tough for firms and business that don’t have a current strategic plan. From recent research and polls at major conferences, the majority of firms don’t have a written strategic plan or IT plan. If they do have a plan, often it isn’t shared beyond the partner group. Many simply operate from a budget and priority project lists. The process of developing these plans is as important as the plans. It forces communication among the leadership, management and IT professionals. Getting buyin, project champions, and focus are all results that come the journal entry | July 2014

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IT Challenges, Opportunities and Advantages from the planning process.

• Time to focus on higher level services such as cash flow,

The consumerization of IT has caused firm leaders to realize they need to pay more attention to IT. Cloud computing, social media and mobility are at the top of their lists.

Apple, the iPad and iPhone have greatly impacted the changing landscape during the past few years.

• High value planning services such as succession, strate-

Most boards are faced with time constraints and a limited number of meetings annually. Historically, boards have focused on financial issues, risk management, executive compensation, succession planning and growth. Today, most of these issues have an increasing technology component — direct or indirect.

Opportunities Firms can resolve their own issues and then utilize their experience and resources as part of packaged services to clients. We have seen tremendous advancement of IT professionals who have been part of our CIO Advantage Program.™ Several years ago we started this program focused on improving communication, team building, project management, business savvy, marketing/sales and leadership skills. We have utilized Ignite presentations to hone communication skills, introduced them to the Kolbe index for team building, Six Sigma for process improvement and provided access to other leadership resources.

The results have been exceptional for those IT leaders who are committed and have the support of their firm’s CEO. Several have advanced to COO duties and one is now the CEO of her firm.

Clients are experiencing similar IT issues. They do not feel comfortable speaking with an engineer or programmer.

They relate and prefer to communicate with someone who understands their business and technology – the trusted business advisor. The cloud provides collaborative solutions that allow firms the opportunity to efficiently capture transactions (Level 1 - Compliance) as well as offer higher-level CFO type services (Level 2 - Performance) and planning services (Level 3 - Strategic). When packaged, these services increase in value and margins. Systems that accurately capture transactions in real time rather than after the fact product significant results: • Accurate and timely data reducing workflow compres-

sion during tax season

budgeting and business intelligence with automated reporting (dashboards) gic and IT

Another opportunity is to standardize and leverage the cloud-based platform and related ecosystem of related applications. This reduces the investment, training time and implementation. Firms are having fewer challenges finding a suitable cloud based platform and ecosystem than they are of how to package and deliver higher value services.

Too many firms are caught in the old paradigm of compliance services and pricing by the hour. Even though compliance margins are shrinking, it is often easier to continue doing what you have been doing than changing behaviors to produce higher value results in the areas of performance and strategy.

Today’s challenges call for a team rather than a rugged individualist approach. These unique ability teams create value through relationships (confidence), leadership (direction) and creativity (new capabilities).

The Advantages Businesses and firms that manage technology as a strategic asset, rather than overhead, receive a much higher return on their investments. They also focus a higher percentage of their annual investment on innovative services rather than just maintenance of core systems (tax and accounting compliance).

For the past 20 years, firms with excellent management and technology leadership have outperformed those without these capabilities. Last year, the average firm spent approximately 6.0% of revenue and $10k per full time equivalent on technology (includes labor, hardware, software, communications and depreciation). Where this investment is made is more important than the amount.

Remember that average is where the best of the worst meets the worst of the best. Most firms view themselves as above average. Factors such as multiple offices, size of firm, and type of practice are important, but the investment continues to rise as more areas of the firm leverage technology.

Marketing and client services are now driving a larger portion of the IT budget.

Technology

Plan of Action 1. Establish an IT committee with representation from all areas of the firm (Tax, Accounting, Consulting, Administration, Marketing and etc.). Limit the number of partners on this committee if you want the best results. Several firms are utilizing outside members to provide broader perspectives. I know of a few firms where their CIOs participate on each other’s committee.

2. Develop a strategic plan for your firm and an IT Plan that integrates with the strategic plan. Each plan typically can be completed in a couple of days with professional assistance and facilitation.

Focus on strategies that will allow your firm the ability to leverage the cloud and provide a secure collaborative platform available from anywhere at any time. This will provide efficiency and scalability.

3. Participate in a peer group such as the Boomer Technology Circles™ and The CIO Advantage™.

These groups provide access to expertise, leadership development and access to peers and best practices. They also provide IT management metrics and a library of policies and procedures.

Make sure your IT professional gets training that focuses on communications, team building, project management and marketing of their ideas.

4. Utilize your CIO as part of your management team. This will provide a distinct strategic advantage to your firm. Based upon the research done at PWC and through our own experience, IT savvy leadership provides distinct advantages in the ability to retain and attract talent.

Remember all progress starts with the truth! Is your firm as technology savvy as they need to be? n L. Gary Boomer is CEO of Boomer Consulting, Inc., an organization that provides consulting services to leading accounting firms in the areas of Leadership and Management, Client Development, Talent Development, Technology and Compensation.

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Connect with the UACPA. Follow us for the latest in the profession and with your membership

Closing the Gaap — Women in Accounting

Caroline Klein, CPA

By Amy Anholt, CPA

C

aroline Klein, CPA is a tax manager at Anderson Bradshaw PLLC and has been with the firm for 6-anda-half years. She graduated from the University of Utah and is proud to cheer for the Utes! She has been involved in various capacities on the UACPA’s ProNet Council since 2010. A highlight of Caroline’s life is having lived in China for 6 months with her husband and climbing the Great Wall. Caroline’s advice to live by — “Show up, smile, laugh” and don’t take life too seriously. She finds a reason to laugh everyday!

What led you to a career as a CPA? I think being a CPA is an amazing career for a woman. There are so many options in industry and public accounting that encompass all different schedules and career paths. I also think it is challenging and interesting — every day something new comes up. I choose to be a CPA because of these things, and it is fun!

Some of my hardest classes in college were in accounting.

But even though they were hard, they made me want to push and succeed at them.

What would you be doing if you were not a CPA? When I started college I had my major narrowed down to anything but becoming an accountant. My mom is a CPA and I didn’t really want to follow in her footsteps. I thought about majoring in everything from political science, economics,

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music, education and marketing before finally relenting and finding my true calling as an accountant. If I wasn’t a CPA I would probably either be a teacher, work at Crate and Barrel or fulfill my lifelong dream of working at a clothing store in Times Square.

What do you enjoy outside of work? My husband and I love our season tickets to U of U football games, the Broadway shows at Capitol Theater and the Utah Symphony. I also like to hang out at home with my cat, Lily, and watch TV and read. Above all, I absolutely love to travel.

I have played the violin for almost 20 years, and am currently a member of the Salt Lake Symphony (a volunteer community orchestra). When I was a young, I wanted to learn how to play the flute, but the school discouraged me because I had braces at the time. My grandma had a violin and pushed me to start lessons. Turns out, I loved it! For me playing the violin is an outlet for me.

I enjoy road bike riding. At the beginning of this year, I decided to join a training team to help me meet some of my goals of participating in a sprint triathlon and completing a century bike ride (100 miles). I recently finished the sprint (with another one or two this Fall), and will be doing my bike race this July. I’ve never been athletic before (I was too

Closing the GAAP — Women in Accounting busy with school, work and violin) but it has been fun to meet people, push my body, and see my progress.

What advantages do you have as a professional woman in the accounting profession? Women are excellent at building and maintaining relationships with clients. I’ve noticed that many clients, both male and female, prefer to work with women because they bring a different dynamic and viewpoint to the discussions.

Business Case for the Advancement and Retention of Women According to the AICPA Women’s Initiatives Executive Committee, in 2013 • Women comprised more than 50% of the US Labor Force

What path did your career take in order for you to become the position you hold today as a Tax Manager? In college, my first accounting job was at JCPenney in their accounting department as an inventory specialist. I enjoyed that job, but wanted to see how I liked public accounting. I joined Anderson Bradshaw in January of 2008.

• Women held 50% of first level manager roles

What do you like most about your career? I love meeting with and interacting with my clients. They make my career challenging and rewarding. I love to help them be successful with their businesses and to help them understand the numbers behind their entrepreneurial brains.

Women are entering the accounting profession at similar rates to men. Once in the profession, they are advancing at the same rates as their male counter parts. However, once you look beyond the first level managerial roles, the accounting profession is failing to retain and advance our female professionals.

What advice do you have for other women professionals and our counterparts? Find a career and job that you can be passionate about, because then you will succeed in it.

Don’t limit yourself by looking around and thinking that you don’t fit in because you are a female — just put your head down and work. Find a job that your employer will appreciate you for being you, and will take your strengths and run with them. And for our counterpart professionals, don’t be scared or intimidated by us — we bring a unique set of skills and viewpoints to the table and we work best when all points of view are listened to and appreciated. n Caroline can be reached at CKlein@abcpas.net Amy Anholt, CPA, is the Vice President of Finance for Dental Select. Previously, she worked in public accounting for Arthur Andersen and KPMG. Currently, she is serving on the Joint UACPA/ AWSCPA(UT) Task Force for Women in the Profession. Amy can be reached at amya@dentalselect.com.

• Women held 35% of mid management roles • Women held 12% of CEO/Senior Executive roles • Women held 19% of the total partner positions in CPA Firms

In the AICPA's White Paper titled “The Attraction, Retention and Advancement of Women Leaders,” they conclude the following about the importance of having a long term strategy to retain women. “Organizations that prepare themselves for the attraction, retention and development of all talent pools have an immediate and ongoing competitive advantage. Because of the shifts in the population, this competitive advantage will only increase as we move into the next decade and beyond. In professional services firms, the talent of our people is our No. 1 asset. It defines the quality of our service offerings and our ability to fuel our growth. We cannot continue sustainable growth without a strategy to increase our attractiveness for larger talent pools.”

The ways we retain and develop our professions best women cannot be summed up in a few sentences.

However, the first place to start is with the conversation. Stay tuned each issue as we introduce ideas, statistics, highlight our women professionals and engage the CPAs in the state of Utah in this important initiative.

— Jonyce Bullock, CPA, UACPA President Elect

The Revised AICPA Code of Professional Conduct is Now Available

F

rom making the right determination on accepting gifts from vendors, to deciding whether it is appropriate to audit a friend’s business, CPAs face ethical concerns each day. One thing is certain: Ethical decisions often need to be reached quickly, which is why the AICPA’s Ethics Division and the Professional Ethics Executive Committee undertook a project in 2008 to restructure the AICPA Code of Professional Conduct for quick and easy navigation. The revised code is now available at www.aicpa.org/newcode and will be effective starting Dec. 15, 2014 with early adoption encouraged. The updated code lives on a new and dynamic online platform, is broken down into different parts by line of practice, is intuitively arranged by topic and where necessary subtopic and section and incorporates the conceptual framework approach all while retaining the substance of the existing AICPA ethics standards. “The revised AICPA Code of Professional Conduct is streamlined in a contemporary manner. The new code will allow our members to find the answers to their ethical queries easily” says UACPA CEO, Susan Speirs.

Electronic Format The revised code is accessible on a new and dynamic electronic platform. This platform not only allows the user to conduct and save basic and advanced searches but also includes the ability to email links, create and name bookmarks and add and save notes while reviewing the code.

In addition, the code features pop-ups for defined terms as well as hyperlinks connecting to other relevant content within the code as well as external non-authoritative material issued by staff of the Ethics Division.

Intuitively Arranged The reformatted code is arranged into three parts. Part 1 applies to AICPA members in public practice; Part 2 to 36

the journal entry | April 2014

members in business; and Part 3 to all other members, including those who are retired or between jobs. This new organization allows members to easily access relevant sections of the code, based on their line of practice. Additionally, the code is organized by topic and where appropriate, subtopic and section. As a result, members in business will not have to sort through topics applicable for members in public practice such as independence and confidential client information. These changes to the code’s organizational structure will allow members to apply the rules and reach correct conclusions quickly and efficiently.

Conceptual Framework Approach The most significant change to the Professional Code of Conduct is the incorporation of two conceptual frameworks, one for members in public practice and one for members in business. The conceptual framework approach, also known as the “threats and safeguards” approach, is a way of identifying, evaluating and addressing threats that may exist and safeguards that may be applied to eliminate or reduce those threats to an acceptable level. The conceptual framework is used for areas where the code lacks guidance.

This new section broadens the reach of the code by allowing members to reach conclusions even if specific guidance is not written in the code.

The AICPA Professional Ethics Executive Committee (PEEC) and the Professional Ethics Division are pleased to share the revised Professional Code of Conduct in its new format, www.aicpa.org/newcode. The code has an effective date of Dec. 15, 2014, with a delayed effective date for the Conceptual Frameworks. Early implementation is encouraged. For information and resources on the Ethics Codification project, including implementation tools, visit www. aicpa.org/ethicscodification. n

UACPA RIDE

f ir s t a n n ua l ride

AUGUST 22, 2014

9 a.m. – noon $35 per person Proceeds go to Utah CPA Foundation Price includes lunch Register Online

Photos, UACPA Activities 2

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the journal entry | July 2014

1 ) UACPA CEO Susan Speirs honors Janelle Young 2 ) The UACPA staff deliver treats to Mac Curtis and Wisan Smith Raker and Prescott 3) Mary Kay Griffin debates sharing Tax Treats with the staff of CBIZ MHM, LLC. 4 ) Susan Madsen continues to talk about women in the workforce at Leadership Council with Paul Mendenhall. 5) Kristan Rickard shares notes from a discussion at Leadership Council at the Loveland Living Planet Aquarium. 6) Leadership Council attendees watch the sharks and stingrays swim behind UACPA CEO Susan Speirs.

7) Speaker at State & Local Government Conference 8) State & Local Government Conference attendees network between classes.

View more photos on our Facebook Page: www.facebook.com/UtahAssociationofCPAs

MEet a uacpa member

Five Minutes with Nikki Thon Nikki Thon, CPA is a Partner at Eide Bailley in Ogden where she oversees the tax department for the Utah offices. She is the firm's Utah liaison for its First Focus initiative, a program with an emphasis on firm-wide culture where women are as likely to succeed as men.

Recently, Nikki was honored as one of Utah Business Magazine's 30 Women to Watch. Nikki was born and raised in Ogden and has two adult children and two grandkids. Her daughter is getting married this summer.

Becoming a CPA. Nikki started her career working as a paraprofessional at an accounting firm. They began to give her more responsibilities and she saw the need to get more education so that she could grow professionally. “I haven’t always wanted to work in accounting, but I’ve always had an analytical tendency.

I’ve been in the industry for more than 25 years and can remember when Excel spreadsheets came out, I thought I had died and gone to heaven!”

Eide Bailly's First Focus Initiative. “We hire about 50 percent men and 50 percent women out of college, yet there are, by far, more men at a senior manager and partner levels. We need to level the playing field by making people aware of unintended bias,” Nikki says about Eide Bailley's First Focus initiative, that recently launched in Utah. As Utah's liaison to the program developed to nurture a culture where women are as likely to succeed as men, Nikki adds, “We have identified some female senior staff in the Ogden office and will now expand into our SLC office for added participation. It’s a great opportunity for all of our staff to learn and mentor from one another.”

What You Might Not Know. Nikki played the accordion as a kid. According to her kids, she can “eat wicked fast” and “enjoys eating celery at midnight.”

If She Wasn't a CPA. Nikki says it’s pretty unlikely for her to be in another industry, but if so, she would be involved in a local

nonprofit. And because she’s so "bossy" it would have to be in a leadership position.

What She Does Outside of Work.

Gardening, reading and camping. “Nothing puts a bigger smile on my face than sitting in the passenger seat in a fourwheeler holding on for dear life."

Professional (and Personal) Goals.

“Honestly, at the top of my mind right now is sabbatical planning.” She’s thinking Europe again (the photo above is from her trip to Europe last year).

“Oh wait, you said professional... Perhaps to put more focus on industry expertise, specifically toward financial institutions that can benefit from our tax support.

Her ongoing platform is to improve the quality of professionals entering the field through education and mentorship.

Advice Nikki Lives by. “Watch and learn. I think it’s so important to develop others, provide feedback and allow growth to happen, rather than to hinder it.” n the journal entry | July 2014

39

Meet the Executive Board

Q: What are you excited about this summer?

Paul Skeen, CPA President Having some down time after a whirlwind year filled with merger activity is pretty exciting. I am most looking forward to my wife and kids taking up golf. Backpacking/ fishing in the Wind Rivers and a beach house in San Diego are also contenders for what has me most excited about summer.

Jonyce Bullock, CPA President-Elect

Hollie Andrus, CPA Vice President I am most looking forward to sitting by the pool and reading a good book. Last year our family helped build a float for the Days of '47 Parade. Almost every waking moment was spent think of paint, glue, and glitter. This year I am still finding glitter in my house but can enjoy some "lazy days of summer."

Mark Palmer, CPA Secretary

I am looking forward to almost three months of not having homework battles!

We are planning a trip to Denver and making sure we have plenty of time to enjoy swimming and biking as a family.

I will be taking my sons to the Grand Canyon and hiking to the Havasupi reservation. We will spend the week hiking to the Colorado and the other natural wonders that the Grand Canyon houses. We also have the opportunity to enjoy several of the theatrical presentations throughout the State this summer.

Dan Griffiths, CPA AICPA Council Representative

Kent Thomas, CPA Immediate Past President

Our family has a goal to hike 50 miles this year. That may not sound like much, but when I have to carry our youngest, trust me, it’s a lot! We’ve done a couple of hikes in Southern Utah. Now, we’re planning some summer hikes in the mountains, paired with clear streams and hungry trout.

Slowing down a bit and taking time for family. We are planning our annual trip to Lake Powell as a family and my wife Kim and I will probably sneak in another trip as well. I enjoy meeting new people and making new friends when we travel, as well as seeing incredible, historically significant sites.

Larry Deppe, CPA Member at Large This is the first summer in many years that I have not taught summer classes. I look forward to finishing some research projects, seeing our daughter who recently moved to Texas, and getting healthy and strong.

Susan Speirs, CPA CEO It’s a toss up between some four wheeling, hiking and fishing in the high Uinta’s, helping my niece prepare for her upcoming wedding or relieving stress in our garden.

(Not Pictured) Kyle Pexton, CPA - Treasurer 40

the journal entry | July 2014

UACPA staff

Board Bullets

News from the UACPA Board The UACPA Board of Directors has been active in the first quarter of the UACPA's fiscal year.

Here is a glance at what has been happening: • There is another vacancy on the State Board of Accountancy with the resignation of Sherm Smith, who will be leaving on an LDS mission.

• Paul Skeen and Dan Griffiths reported on Spring Council which was held in May. CPE continues to be of concern across the nation as well as turnover rates of CPAs leaving public practice. Regulation overload, technology and globalization trend top accounting issues. We’re seeing the CPA exam rate stagnate which is also of concern. The Peer Review process is also being re-worked; the standard of quality has not increased through current peer review practices and many peer reviews have had to be recalled.

A new structure is currently being formulated by the AICPA that will meet DOL, PCAOB and SEC standards.

• Leadership Council was held May 15, 2014 at Loveland Living Aquarium. Council voted to expand the Executive Board by adding a past Chair of the ProNet Council so that the new professionals are better represented. The AICPA Council Representative was also given a vote on the board. The CEO will be a non-voting member of the Executive Board except in the case of a tie at which point the CEO will cast the tie breaking vote. The ProNet Council was also added as a part of Leadership Council in the bylaws. These changes have been updated into the By-Laws of the UACPA and have been ratified by the Executive Board at the last board meeting..

Meet the UACPA Staff

Q: What are you excited about this summer?

Tisha Smith Membership Coordinator I am excited for playing weekly Sunday baseball! I am looking forward to getting out and going four wheeling, riding on the back of a bike, and camping. I also love barbecues with friends and family.

Kathy Romero Finances and Admin Manager I'm excited to go to music concerts this summer. I'll be going to several good ones and they are held at an outside venue, so it makes it even more enjoyable.

My son also starts kindergarten this summer (nervous but excited).

April Deneault CPE Manager I love summer! I plan on spending as much time as possible outside with my family. I am excited for my annual trip to Moab with my mom and sisters in June. I am looking forward to taking Olivia swimming at my moms, family barbecues, going on bike rides, and going camping.

Amy Spencer Marketing & Communications Manager I signed up for the Spartan Race (a 12+ mile obstacle course and run) on June 28 and I'm looking forward to putting months of training to the test. In July, I will be spending a sweaty and fun week in New Orleans at Interchange, a conference for state society staff. the journal entry | July 2014

41

CPECourseSchedule

Register online at uacpa.org, then Education & Events or call the UACPA office at (801) 466-8022.

FIELD OF STUDY

CREDIT HOURS COURSE TITLE

INSTRUCTOR

EARLY MEMBER REGISTRATION

MEMBER FEE

NON MEMBER FEE

K2 Enterprises

$248*

$275

$330

VENDOR

Sept 9/4/14

8

Excel Based Dashboards

TBD

9/12/14

8

Revenue Recognition

Marty Van Wagoner

AICPA

$248*

$275**

$330**

9/15/14

8

AICPA Peer Review Program Advanced Course

Thomas Newell

AICPA

$248*

$275**

$330**

9/16/14

8

Annual Update for Compilation and Review Engagements

Thomas Newell

AICPA

$248*

$275**

$330**

9/22/14

4

Advanced Quick Books Tips and Techniques AM

TBD

K2 Enterprises

N/A

$155

$185

9/22/14

4

iPad - An Effective Business Tool PM

TBD

K2 Enterprises

N/A

$155

$185

9/23/14

8

Budgeting, Forecasting and Business analytics

TBD

K2 Enterprises

$248*

$275

$330

9/24/14

8

FASB Review for Business & Industry

Marty Van Wagoner

AICPA

$248*

$275**

$330**

9/25/14

8

Forensic Accounting: Fraudulent Reporting and Concealed Assets

Robert Walter

AICPA

$248*

$275**

$330**

9/26/14

8

Advanced Business Law for CPAs

Robert Walter

AICPA

$248*

$275**

$330**

9/29/14

4

Word, Outlook and PowerPoint - Tips and Tricks for Enhancing Productivity PM

TBD

K2 Enterprises

N/A

$155

$185

9/29/14

4

Microsoft Office 365 - Your Office, Your Way AM

TBD

K2 Enterprises

N/A

$155

$185

9/30/14

8

Excel PivotTables for Accountants

TBD

K2 Enterprises

$248*

$275**

$330**

10/2/14

8

Governmental and Not-for-Profit Update

Michael Morgan

AICPA

$248*

$275**

$330**

10/3/14

8

Studies on Single Audit and Yellow Book Deficiencies

Michael Morgan

AICPA

$248*

$275**

$330**

10/8/14

8

Group Audits Clarifying the Complexities

Marty Van Wagoner

AICPA

$248*

$275**

$330**

10/9/14

8

Gaining and Sustaining a Competitive Advantage: Keys to Boost the Bottom Line

John Cox

AICPA

$248*

$275**

$330**

10/10/14

8

Annual Update for Controllers

John Cox

AICPA

$248*

$275**

$330**

10/16/14

16

Slashing Taxes for Your Small Business Clients: Corporations, Partnerships & LLCs

Norman Soloman

AICPA

$248*

$275**

$275**

10/17/14

8

Advanced Tax Strategies for LLCs an Partnerships

Norman Soloman

AICPA

$248*

$275**

$275**

10/20/14

4

Health Care Reform Act: Critical Tax and Insurance Ramifications

Michael Blackburn

AICPA

N/A

$155

$185

10/20/14

4

Social Security and Medicare: Maximizing Retirement Benefits

Michael Blackburn

AICPA

N/A

$155

$185

10/21/14

8

Form 1041: Income Taxation of Estates and Trusts

Michael Blackburn

AICPA

$248*

$275**

$330**

10/22/14

4

Capitalized Costs and Depreciation: Key Issues and Answers

Dennis Riley

AICPA

N/A

$155

$185

10/22/14

4

Cancellation of Debt for Individuals and Businesses

Dennis Riley

AICPA

N/A

$155

$185

10/23/14

8

Cut Your Client's Tax Bill: Individual Planning Tips and Strategies

Dennis Riley

AICPA

$248*

$275**

$330*

10/27/14

8

Advanced Tax Strategies for S Corporations

Peter Towle

AICPA

$248*

$275**

$330**

10/28/14

8

AICPA's Annual Federal Tax Update

Peter Towle

AICPA

N/A

$180

$330**

10/31/14

8

Public Company Update: SEC, PCAOB and Other Developments

Marty Van Wagoner

AICPA

$248*

$275**

$330**

OCT

* UACPA Members receive a 10% early registration discount on these courses when registering at least TWO WEEKS before the date of the course. ** AICPA Members receive an additional $30 off the price of each 8 hour course, $50 for 16 hour courses.

42

the journal entry | July 2014

CPECourseSchedule

Register online at uacpa.org, then Education & Events or call the UACPA office at (801) 466-8022.

NOV 11/3/14

8

Audits of 401(k) Plans

Melissa Critcher

AICPA

$248*

$275**

$330**

11/4/13

8

Common Frauds and Internal Controls for Revenue, Purchasing and Cash Receipts

Melissa Critcher

AICPA

$248*

$275**

$330**

11/5/14

8

Advanced Controller and CFO Skills

Anthony LaRusso

AICPA

$248*

$275**

$330**

11/6/14

8

Financial Statement Analysis: Basis for Management Advice

Anthony LaRusso

AICPA

$248*

$275**

$330**

11/7/14

8

Toolkit of Best Practices for Today's Controller and Financial Manager

Anthony LaRusso

AICPA

$248*

$275**

$330**

11/10/14

8

Annual Tax Update: Corporations and Pass-Through Entities

Michael Blackburn

AICPA

$248*

$275**

$330**

11/11/14

8

Basis/Distributions for Pass-Through Entities: Simplifying the Complexities

Michael Blackburn

AICPA

$248*

$275**

$330**

11/17/14

16

Annual Accounting and Auditing Workshop

Marty Van Wagoner

AICPA

$405*

$450**

$540**

11/19/14

8

Financial Reporting Framework for SMEs

Marty Van Wagoner

AICPA

$248*

$275**

$330**

11/20/14

8

Tips and Tricks for Handling IRS Disputes

Michael Blackburn

AICPA

$248*

$275**

$330**

11/21/14

8

Annual Tax Update: Individuals and Sole Proprietors

Michael Blackburn

AICPA

$248*

$275**

$330**

11/24/14

8

Advanced Excel

TBD

K2 Enterprises

$248*

$275

$330

12/1/14

8

Annual Update for Accountants & Auditors

Marty Van Wagoner

AICPA

N/A

$180

$330**

12/2/14

8

Smart Strategies to Slash Taxes for Closely Held Businesses

Michael Frost

AICPA

$248*

$275**

$330**

12/3/14

8

Taxation for Individuals Living Abroad

Michael Frost

AICPA

$248*

$275**

$330**

12/4/14

8

Accounting and Reporting for Not-for-Profit Organizations

Brian Sheets

AICPA

$248*

$275**

$330**

12/8/14

8

Applying OMB Circular A-133 to Not-for-Profit and Governmental Organizations

John Georger, Jr.

AICPA

$248*

$275**

$330**

12/9/14

8

Governmental Accounting and Reporting

John Georger, Jr.

AICPA

$248*

$275**

$330**

12/15/14

8

Construction Contractors Advanced Issues

Bruce Shepard

AICPA

$248*

$275**

$330**

12/16/14

8

Audits of Banks and Other Financial Institutions

Bruce Shepard

AICPA

$248*

$275**

$330**

DEC

2014 UACPA Conference Lineup September 18, 2014

November 13-14, 2014

CPAs in Business & Management Conference South Towne Exposition Center

Tax Symposium

September 26, 2014 Annual Member Summit

October 3, 2014

November 2014 Business Valuation Conference

December 11 - 12 Winter Conference Salt Palace Convention Center

Women's Summit

December 18-19, 2014

November 6, 2014

Technology Conference South Towne Expo Center

Southern Utah Conference

Exhibitor and Sponsorship Opportunities Do you have products or services that need exposure to CPAs and other accounting professionals? Become an exhibitor or sponsor for any of these conferences! For more information contact Amy Spencer as@uacpa.org

the journal entry | July 2014

43

Get CPE Where You Want It, When You Want It!

SIGN UP FOR A CLASS ONLINE The UACPA and our partners deliver fast and convenient CPE to your home or office.

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

Internet connection.

To view a list of upcoming Webcasts log on to uacpa.org, Education & Events and click on “Webcasts,” keyword search “Webinar.”

Member benefits/100% Membership Program

Member Benefits

100% Membership

The UACPA's Affinity Partners help you get the most out of your 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. Learn more by talking to Tisha Smith, ts@uacpa.org or call 801.466.8022

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.

• Mantyla McReynolds • PricewaterhouseCoopers • HJ & Associates • Pinnock, Robbins, Posey & Richins Is your firm eligible to be a part of the 100% membership program? Learn more by talking to Tisha Smith, ts@ uacpa.org or call 801.466.8022

We Need You It’s that time once again when our Nominations Committee will be meeting to submit names for positions on the Executive Board and Leadership Council. We have slots open for the following positions:

• Treasurer

• Member at Large

• New professionals

• Practice Advisory Council

• Business and Management Council

• ProNet Council Please submit any recommendations to our Nominations Committee Chair, Kent Thomas at kent@advancedcfo.com or to Susan Speirs at ss@uacpa.org.

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.

July

August

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

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

AICPA Ethics Hotline

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.

CPE Where You Want It, When You Want It!

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

CPE Approval – Does This Qualify?

When UACPA members have questions regarding CPE Approval and whether 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.

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

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

46

the journal entry | January 2014

To view a list of upcoming webcasts log on to uacpa.org, Education & Events and click on “Webcasts,” keyword search “webinar.”

Classified Ads To place your classified advertisement and reach Utah CPAs, contact the UACPA at mail@uapca.org, Utah Practice For Sale: Orem, UT CPA Practice - gross $122K. Good fee structure; excellent cash flow in excess of 80%! Tax prep for Individuals (55%) businesses (45%).

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.

UACPA Committee/Task Force Volunteer Form 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:_____________________________________________________

Utah Association of CPAs 1240 E. 2100 South, Suite 500 Salt Lake City, UT 84106

Nonprofit Org. U.S. Postage

PAID Salt Lake City, UT Permit No. 1996

Address Service Requested