The Journal Entry - October 2016

October

2016,

Vol.

IV

|

Government

AccoUnting

The Politics of Government Understanding how CPAs can advocate for change

by w. val oveson, cpa, cff, cgma, abv

CPAs in Government Accounting Three CPAs discuss their life, challenges and work

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Mission,Vision,Values

ExecutiveBoard

Mission

president............................................. Hollie S. Andrus president-elect...........................Gavin E. Hutchinson vice president........................................ Matthew Klein secretary...................................Sherie E. Charlesworth treasurer........................................... Jay Niederhauser member-at-large......................................Owen Ashton member-at-large.....................................Brett C. Hugie immediate past president.................... Jonyce Bullock aicpa council.......................................Brandon Allfrey pronet council...................................Joshua Turnbow ceo......................................................... Susan A. Speirs

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

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

We unite a vibrant community of CPAs to enhance the success of our members and champion the values of the profession; Integrity, Competency, and Objectivity.

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

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

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

UACPAStaff CEO........................................................ Susan A. Speirs Communications/marketing and Editor of The Journal Entry............... Amy Spencer CPE Manager......................................... April Deneault Financial Director..................................... Tom Horn Membership Development........... Braden Thompson The Journal Entry is published quarterly, by the UACPA 136 S. Main Street, Suite 510 Salt Lake City, UT 84101 tel: 801-466-8022 toll-free in Utah: 1-800-676-2776 email: mail@uacpa.org or log on to www.uacpa.org Cover photo by Kristan Jacobsen, kristanjacobsen.com

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 | October 2016

feature story

CPAs Count in Government 129 New Members ...........................................................................................4 Movers & Shakers .....................................................................................5 President's Message ..................................................................................6 Message from the CEO ............................................................................ 7 Cover Story: Why a CPA's Voice is Important in Government .........9 By the Numbers: Utah Facts ................................................................. 14 How Lobbyists Represent the UACPA................................................. 15 Get to Know Utah's Government Accountants .................................. 17 Problems that Arise in Charitable Planned Giving............................22 Women in Accounting: Cathie Hurst, CPA .......................................24 Meet the Executive Board .....................................................................26

Meet CPAs in Government Accounting 17

Problems in Planned Giving 22

Board Bullets ...........................................................................................27 Meet the UACPA Staff............................................................................27 Comic by Matt Ferguson, CPA .............................................................28 Meet a Member: Mike McCauley ........................................................29

Meet a Member: Mike McCauley

Photos: UACPA Golf Tournament ......................................................30 Education & Events ................................................................................32 Member Benefits/100% Membership Firms .......................................37

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New Members

Write for The Journal Entry

NewMembers

Congratulations to the following individuals/CPAs who were approved for membership or affiliate status in the UACPA as of August 31, 2016.

Fellows Jordan Stephenson Questar Gas Company Matthew Thatcher Davis & Bott, CPAs, L.C. Ryan L. Hamilton Sundance Institute Rick Meyer (Non Resident) Alliantgroup

Share your story and get your name in print by submitting an article to be published in The Journal Entry.

The Journal Entry is published four times a year; January, April, July and October.

Learn more about getting your story in print by writing Amy Spencer, as@uacpa.org

Kyle Robinson PricewaterhouseCoopers Daniel A. Nuttall Eide Bailly, LLP R. Mark Ashby Jr Haynie & Company Nathan R. Severin Dental Select Ryan C. Wood Nu Skin Enterprises, Inc. Lyndsey B. Finkbiner Grant Thornton LLP Mathew Brumble Academy Mortgage Company Joe Keyworth Tanner LLC

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Sitori Holbrook Tanner LLC Eric Pedersen Zions Bancorporation Bruce O. Hacking Virleen Ferre Management & Training Corp Weiran Lu Bridge Investment Group Holdings Kyle Abplanalp BMW Bank of North America Student Members Brigham Young University Samantha Lowe Benjamin Bryson Weber State University Cindy Cisney Kate Cleverly Garry Kirkland II Westminster College Kaliope Sargetakis University of Utah Garret Hegland Jefferson T. Vick

Utah State University David S. Barnes Zachary Wainwright Utah Valley University Ashley O'Neal Trevor Finlinson Zach Smith Jeffrey Holden Kayleen J. Murphy Jennifer King Landon Jenkins Kevin White Jordan Heeb Olimpia Simmons Joshua A. Heim Gustavo Quinonez Shaun Walker Ransom Cundick Caleb Banks Christopher Alvarado Madeline Biggs Jarod Maynes Salt Lake Community College Jamie Sage Other Lynda L. Kohlhoff James D. Prendergast

Movers&Shakers

Kevin Ediger has been promoted from senior manager to partner at Ernst & Young LLP. He is a member of Ernst & Young LLP's People Advisory Services practice and has 14 years of experience in taxation and HR advisory. Ediger received his Bachelor of Science Kevin Ediger in Accounting and Finance from Southern Utah University and his MBA from the University of Utah.

INSIDE Public Accounting's (IPA) ranking of the Top 200 Largest Accounting Firms in the United States for 2016 includes Tanner LLC. The IPA national standings provides a comprehensive picture of the largest CPA firms in the U.S. Tanner's unique client service and commitment to ongoing training distinguished the firm from other accounting companies that participated in the IPA's survey and an analysis of top firms in the country. Tanner was the only Utah-based accounting firm to be recognized in the rankings. Tanner was featured in the September issue of INSIDE Public Accounting.

Adam Campbell has joined HouseMaster LLC as part of the executive management team and will oversee all things financial as well as help shape and implement the company's strategic initiatives. With more than 12 years in accounting, finance and Adam Campbell business intelligence, Campbell's career has been focused on the real estate industry for nearly 10 years, including work with residential, commercial, industrial developments and property management. Campbell was a founding employee and the Corporate Controller for Bridge Investment Group Partners. He is an active board member of the University of Utah Business Alumni Association and enjoys building small startup ideas into stable growth companies.

Mike Waldron, Senior Manager at Tanner Inc. was recently honored as one of the Enterprise 7 by The Enterprise — Utah's Business Journal. Waldron has more than 19 years of experience in business advisory service and creating new business opportunities and expanding existing lines of business in public accounting firms.

York Howell & Guymon has been selected as one of the "Emerging Eight" fastest growing companies in 2016 by Utah Business Magazine's Fast 50 awards. The program highlights 50 rapid growth companies based in Utah who reported consistent revenue progression for at least five years. The Emerging Eight category consists of eight companies who are less than five years old that have exceptional revenue performance and have proven high growth potential. Founded in 2013, York Howell & Guymon is a boutique law firm based in Salt Lake City.

Larson & Company has opened their new building in Moab at 285 S. 400 East. Following nine months of construction, the two-story office building is the first of its kind in the area.The new building includes 10 new offices where small business owners can hold meetings without renting an entire building. The CPA firm is located on the ground floor while the upper floor is available for rent. The Moab office is one of four Larson & Company locations in Utah

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President's Message

Hollie Andrus, CPA

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n the last Journal Entry, we focused on leadership, and in my message I mentioned that I never thought I would be where I am today: serving as president of the UACPA and in other leadership roles. Well, I could say the same about government! When I graduated from college, I went to work for a regional CPA firm in San Francisco. When my husband and I decided to move home, I wanted a job with a short commute. I knew we would be living in Bountiful and my husband would be attending the University of Utah. I vaguely remembered a job posting for the Office of the Utah State Auditor from my college days and thought that it would be the perfect short commute I wanted. I called the office, scheduled an interview and the rest is history. We moved back to Utah in January 1999. I have been with the office ever since and have enjoyed my experience.

Governmental accounting is typically skimmed over in our college programs. At best, you may encounter three to five questions about governmental accounting on the CPA exam. Yet, when you step back and look, government is a HUGE sector of our state’s economy. Not only does it include the State of Utah but it also includes all public, higher-education institutions in the state, cities, counties, towns, school districts, and special service districts — not to mention the federal government’s presence in the state. In calendar year 2014, the State of Utah (excluding higher-education institutions) ranked 3rd in the number of employees. The University of Utah with its hospital and clinics ranked 2nd. Only Intermountain Health Care had more employees. Of the state’s 10 top employers in 2014, six were governmental entities.

What does this mean for our profession? There are many, many areas in government where our profession can provide meaningful impact. Many of us, at some point in our careers, may be working at or with a governmental

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entity. Our local CPA firms audit state entities, school districts, counties, and cities to name a few. They also perform attestation services and provide critical advisory services to these entities. If you are lucky to be involved in government, you know the breadth of services CPAs provide and the vast number of opportunities available in government.

This Journal Entry issue introduces some of the incredible opportunities government provides to our profession — opportunities of which you may not have previously been aware. It introduces you to great people who happen to also be great accountants. It reminds us of our important role as citizens of this great country and state. It challenges us to let our voices be heard and to make a difference in our communities by raising our voices on issues important to us both professionally and personally.

CEO's Message

Susan Speirs, CPA

A

pproximately seven percent of UACPA members work for or with government. Whether you work for the legislature, state auditor's office, department of finance or various governmental agencies across the state, we applaud your efforts. As an association, we’re active in the legislative process and work to ensure we’re analyzing all angles of issues, complying with our own statutes and protecting the public.

We’re fortunate to have Wayne Niederhauser, CPA serving as president of the Utah State Senate. Wayne’s roles include: • Serving as a member of the Offices and Criminal Justice Appropriations Subcommittee and Executive Appropriations Committee • Serving as a member of the Legislative Management Committee, Legislative Audit Subcommittee, Legislative Policy Summit and Legislative Site Visit committees • Serving as a member of the Subcommittee on Oversight and the Senate Legislative Expense Oversight Committee • Working in the real estate and construction development industry

Curt Bramble, CPA began his legislative career in 2001 and is the immediate past president of the National Conference of State Legislators. Curt’s roles in the Utah Senate include: • Serving as a member of the Senate Retirement and Independent Entities Confirmation Committee • Serving as a member of the Revenue and Taxation Interim Committee, Senate Revenue and Taxation Committee and Business and Labor Confirmation Committee

• Serving as a member of the Business, Economic • Development and Labor Appropriations Subcommittee and Senate Business Labor Committee • Working as a CPA in the public practice arena Steve Eliason, CPA began his political career as a representative in 2011 and is currently running for State Majority Whip. His activities with the House of Representatives include: • Member of the Federal Funds Committee, Revenue and Taxation Interim Committee and the Utah Tax Review Committee • Public Education Appropriations Subcommittee, House Education Committee and the Education Interim Committee • House Retirement and Independent Entities Committee, House Law Enforcement and Criminal Justice Committee and the Legislative Policy Summit As we move to the 2017 legislative season, we will be updating the attest language in our current Certified Public Accounting Licensing Act. We will also be a major stakeholder as it pertains to CPAs in the areas of sales tax on professional services and retaining licensure requirements to become a CPA. Stay tuned for more conversations regarding the legalization of marijuana and the impact it has on licensed CPAs.

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The Fall Campaign: Are We in the Game? getting around election season and becoming involved

by w. val oveson, cpa, cff, cgma, abv

A

s we go down this last stretch to the election, many of us recognize that the process isn’t perfect. Right now, many might be thinking that the process has failed us.

For those of us who are inclined to bellyache and cry, “Woe is me,” it’s important to acknowledge those who did the work that got us to where we are today. Sam Rayburn, a Speaker of the U.S. House of Representatives from Texas for many years was fond of saying, “Any jackass can kick down a barn, but it takes a real statesman to build one.”

So how do we measure up? How many barns have we built lately? How many have we kicked down?

During election time, there is always plenty to complain about and criticize. There are candidates we like and those we despise. The whole process is messy and takes way too long. It seems there are too many lies, too many insults, and not enough substance.

It reminds me of a quote from Winston Churchill: “Democracy is the worst form of government, except for all the others.” As bad as it is, we have much to be grateful for. We enjoy so much freedom and have so much prosperity. For most of us, life is pretty good.

I’m bullish on America! As I look where we have come from and what we have accomplished as a nation, I’m grateful to those who have sacrificed their time, energy and fortunes. We are drinking from wells that we didn’t dig, learning from institutions that we didn’t establish, and driving on roads we didn’t build. I have no doubt that those in generations to come will say the same about us.

It’s time for us to get to work.

We Have A Broad Mandate There is really nothing to constrain us but ourselves.

This lesson was brought home to me as a newly elected State Auditor by a seasoned political advisor. He said, “Val, there is no issue too big that you can’t own it.” I 1 Isaiah

6:5: Then said I, Woe is me! for I am undone; because I am a man of unclean lips, and

I dwell in the midst of a people of unclean lips: for mine eyes have seen the King, the LORD of hosts.

2“We

drink from wells we did not dig; we are warmed by fires we did not kindle.” (Deut. 6.11)

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Feature Story disagreed with him at the time, but later realized that what he said was true. I didn’t need to limit myself to technical issues that were circumscribed within the Utah Code defining my position. I could have an opinion on anything I wanted and I had a platform to speak from.

It was humbling to realize that if I spoke out on a topic that didn’t pertain to my office or for which I didn’t know anything about, I bore the risks and they could be severe.

However, the citizens expected me to have an opinion on the relevant issues of the day and to fight for what I believed in.

The same concept applies to CPAs. We can claim a broad mandate with any issue out there. There are no limits.

We can be the leaders and there is no need to limit our involvement to technical matters. We should have opinions on the full spectrum of the public policy. And yet, we should also be wise enough to pick our battles and concentrate our efforts where we can be the most successful.

We Have Unique Skills & Training Our training and discipline is vitally needed in government today. We are uniquely qualified to think through the problems we face and to come up with creative solutions. The disciplines of strategic planning, performance measurement, budgeting, finance, accounting, auditing, taxation, and process design are all skills that our members have developed. These skills are critical for government officials.

During my years in public service, I often reflected on the skills that I used on a daily basis. Regularly, I relied on my accounting education and experience in public practice as I worked to address the issues I faced. There were skills from other professions that were also important.

I was constantly wishing I had a better background in law, engineering, psychology, information technology, public relations, and writing. It was during those times that I realized my accounting education had prepared me in many of these skills and I had a basis to build on and improve. However, accounting was a core skill and is required to understand the mechanics of government, how money is raised and where it is spent.

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We Have To Be In The Game One of my favorite quotes, commonly attributed to Woody Allen, is, “80 percent of success in life is showing up.” Our expertise is only relevant if we are actually in a position to use it.

We need to be in the game, and to be in the game we need to be on the team. And to be on the team, we need to go to the tryouts. We have to show up. We have an opportunity to make a much bigger impact than we can ever imagine by just showing up.

Many of our members have shown up and made remarkable contributions. LaRay McCallister, Nolan Karras, Tom Allen, Austin Johnson, Ed Alter, Ron Bigalow, John Valentine, Curt Bramble, Steve Eliason, Wayne Niederhauser, and many others need to be recognized. A large number of our members have chosen government service as their career and are working daily from the inside to improve government and make it work for all of us. They need to be recognized as well.

As the stakes get bigger and the competition from special interest groups gets more intense, the involvement of the CPA profession is more important than ever.

We Have The Respect Of The Community Many years ago, I was an At-Large Member of the AICPA Council. The issue of CPAs advertising was hot, and we were struggling with letting go of the long held prohibition on advertising. The AICPA had commissioned a poll from the Gallup organization on how the profession was viewed. We came out near the top, right next to the clergy and college professors. At the bottom of the list were used car salesman, lawyers, and politicians. There is no question we are held in high regard by the public, our clients, and government officials.

Many of us think that this is a Catch 22. If we are so well thought of as CPAs, we don’t want to ruin it by wallowing in politics. That view is understandable until you realize that the car dealers and lawyers are making all the decisions that the rest of us have to live with. We need to

Feature Story

be at the table, even if it means we take some shine off our image. Truth is, we have a lot of shine in reserve and if we perform as we should, we will gain more respect through our involvement.

Need For Professional Representation Most of us are in the business of providing professional services to our clients through application of skills, knowledge, and experience. As stated above, we are a highly-respected profession worthy of the public’s trust.

We not only provide valuable service, but we are also in business. We are subject to the laws and regulations passed by our elected officials at both the state and federal levels.

We need a say in how we are governed and regulated.

On the federal level, the AICPA maintains a professional staff dedicated to advocacy for the industry in Washington D.C. At the local level, I believe that it is important to have an influence on the laws and regulations that are passed by the state. We need to have the capacity to influence the process.

It would be ideal if we could have the clout that we need through our individual members working with their elected representatives. As the world gets more complicated and we have limited time, we must look to professionals to help us. Thank goodness the leadership of the UACPA has been willing to hire a team of wellrespected and experienced lobbyists to represent our interests on Utah’s Capitol Hill. Craig and Ryan Peterson are doing a great job for us, and I support them 100 percent. I worked with Craig when he was the Majority Leader of the Utah State Senate and have a great deal of confidence in him.

As directed by the UACPA's board and the CEO, they advocate on our behalf and protect us from unacceptable outcomes. As an example, our licensing law is under attack from time to time. Currently there is a national group promoting competency-based licensure, where no education or experience requirements would be required.

Our advocates are working to defeat this effort. Our investment in representation is critical to our profession and will assure that our voice is heard on a whole range of issues. the journal entry | October 2016

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A Call To Action Being successful will require more than hiring a great team of lobbyists. It will require our time and resources, working in concert with those professionals. We can make significant impacts on how we are governed if we will do the work. Your influence will be amplified as you rise through the levels of involvement as illustrated below: 1) Register To Vote — Only 66 percent of the population cares enough to register. Under our laws, if you don’t register, you can’t vote. It’s pretty basic.

If you don’t register, you write yourself out of the equation.

2) Vote — In 2012, 86 percent of those who registered actually voted, which was only 58 percent of the total population. Your influence increases as you consistently register and show up to vote.

3) Volunteer To Work For Candidates — Those that register to vote, vote, and volunteer to work for a candidate have increased their ability to influence government many fold. You can’t imagine how important volunteers are to a legislative campaign.

Races are won or lost by volunteers putting up yard signs, passing out flyers, and making phone calls.

Right now is when the candidates need you the most.

4) Contribute To Candidates — Money is essential to be successful in a political campaign. Money is a tangible demonstration of support and not only buys yard signs and advertisements, but also builds momentum and enthusiasm. We as CPAs understand the power of money. We must be willing to open our wallets.

5) Encourage Others To Run For Office — If you have a client, friend, or neighbor who you believe in and feel would be a good elected official, say something. Encourage them to file for office and commit to support them. Some may call you a Kingmaker, but how better to influence the political process than encouraging those you believe in to get elected and govern. We are past this point in this election cycle, but it’s not too early to start thinking about the next cycle.

6) Share Your Advice And Counsel With Those 12

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In Office — Attendance at town hall meetings is usually very low. Your attendance at these meetings and staying to visit with the elected official after the meeting to express your views is extremely powerful.

Writing a letter, making phone calls, and visiting their offices are also important to the process.

The UACPA Keyperson Committee would also be a way to share advice with your elected officials. Sign up to contact your legislator on issues important to the profession.

7) Run For Office — Of course, if you are the elected official casting your vote in the legislature or in congress you have the power to make or change the laws. When you get there, you will find that you’ll need all of your skills and powers of persuasion to work with your colleagues to build a consensus that has enough votes to pass.

CPAs have the ability and opportunity to influence our communities and governments in very real ways. I hope you will take the opportunity to use your experience to make a difference.

I can think of nothing more gratifying than having my children drink from a well that I dug, figuratively and literally. To have generations to come derive benefits from organizations that I built or improved is the essence of success. Improving government is an honorable pursuit.

You are greatly needed. ■

W. Val Oveson, CPA is the CEO of Oveson Consulting, LLC where he does public affairs, management consulting and board work. He is a retired Tax Partner at WSRP, LLC. He has held various executive positions in business and government, including; Lt. Governor of Utah, Utah State Auditor, National Taxpayer Advocate of the IRS, Chair of the Utah State Tax Commission, Managing Director at PricewaterhouseCoopers and Consultant with KPMG.

Utah Tax Reform Summit 2016 Friday, October 21, 2016 - 8:30 a.m. - 2 p.m. | Salt Palace, Suite 250 and 251

Tax Reform at the Federal Level Chris Campbell, Staff Director, U.S. Senate Committee on Finance Our Next President: Tax Reform Proposals Representatives of Presidential Candidates Provide Their Views on Tax Reform Moderated by: Val Oveson, former Utah State Auditor and Lt. Gov. and former U.S. Taxpayer Advocate to the IRS

Tax Reform at the State Level Grover Norquist, President Americans for Tax Reform and Senator Curt Bramble, past President of the National Conference of State Legislatures Debate the Need for Tax Reform to Protect Main Street Businesses Luncheon Keynote Speaker: Congressman Billy Tauzin (Ret.) Former Chairman of the House Energy & Commerce Committee National Tax Reform Advocate, Author of "The National Retail Sales Tax"

Exclusive Early Bird Registration (seating will be extremely limited) RSVP to www.eventbrite.com/e/tax-reform-summit-tickets-27740720241 Cost $35 per person.

For questions, call 801-428-3755

State Tax Commission Summit

Date: November 29, 2016 Time: 8 am – Noon Location: Utah State Capitol Building Fees: Free for UACPA Members; $195 for Nonmembers CPE: Credit: 4 hours

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by the

Numbers

These numbers reflect the 2015 Utah numbers presented at www.census.gov.

Utah Facts

30.5 14.6 11.7 2,995,919

Percentage of Utahns under the age of 18 Percentage of homes where language other than English is spoken Percentage of Utahns who live in poverty Population of Utah (estimated July 2015)

67.8

$59,846

Percentage of Utahns ages 16+ who are employed

Median household income (in 2014)

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How Lobbyists Are Helping the UACPA political consultants are crucial to the future of the cpa profession by craig peterson and ryan peterson

Lobbyist: [lob-ee-ist] noun. 1 a person who tries to influence legislation on behalf of a special interest

O

ver the years, lobbyists have tried to soften the prevailing perceptions of their profession by calling themselves Government Affairs Advisors or Political Consultants. A lobbyist does, however, do what the definition says. They work on behalf of special interests.

As lobbyists, we represent the UACPA as a special interest group on Utah’s Capitol Hill. We are often asked, by those who are not familiar with what a lobbyist does, “What is it you guys actually do? Don’t you just represent those special interests and take legislators to lunch?”

It is always interesting to point out that just about everyone belongs to some type of special interest group.

Their “interests” are always seen as more important, while everyone else is part of an unsavory “special interest group.” The UACPA is, by its very nature, a special interest group. We not only provide a great and neces-

sary service to our clients and those that employ us, but we are a group that has significant regulation and legal requirements placed upon us, impacting every aspect of our business and employment. The legislature, for the most part, is responsible for passing laws that impact the CPA profession. From licensure to fiduciary protection, our elected officials govern us. The laws and regulations passed and implemented by the legislative and executive branches of government are intended to protect the public’s welfare. The challenge is that our citizen legislature has little experience with our profession and the regulations we operate under. We are lucky to have two CPAs in the Utah State Legislature, one in the Senate and one in House.

You have heard from the UACPA's leadership the desire to have CPAs more involved in the governance process.

The Utah legislature is in session from late January through early March. This makes it challenging for a practicing CPA to serve due to the busy tax season. It

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How Lobbyists are Helping the UACPA is not impossible, however, to be engaged in other ways.

We recently had the opportunity to speak at one of the UACPA chapter meetings where we emphasized the need to seek opportunities for political involvement.

last session, for eXample, there was an effort to change licensure requirements to "competency based," eliminating education requirements for professional licensure. this would have allowed candidates to test into the license instead of having education and time requirements.

There are numerous boards and commissions that would benefit from the professional skills inherent with CPAs. One example is the recent news that an employee of a state agency embezzled nearly a million dollars. Had a CPA been on that board, the agency’s shoddy accounting practices would have been long identified and the state would have been saved from both political and financial loss. The agency has now brought on a qualified UACPA member firm to help bring the agency’s financial house in order.

Nearly every entity in state government has an advisory or policy board. This is one important way that CPAs can become more involved in state government. Another way is to participate with your elected officials. Getting to know your senator and representative and letting them know of your willingness to be a resource to them is far more valuable than you may think. It is also worth considering becoming involved in supporting candidates for public office. A contribution, no matter how small, is valuable and puts your name in front of an elected official. An evening spent knocking on a few doors or pounding in a few yard signs can help you establish a relationship with someone who will be making policy that directly impacts your families and your businesses.

We look forward to meeting more of you in your chapter meetings to discuss how you can become more involved.

This upcoming session, we, as your lobbyists, will be following a number of significant issues. We will remain

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diligent in watching for any legislation impacting the profession. Last session, for example, there was an effort to change licensure requirements to “competency based,” eliminating education requirements for professional licensure. This would have allowed candidates to test into the license instead of having education and time requirements. The effort is well funded from outside the State.

Americans for Prosperity, a political think tank, believes that excessive education is merely a protection for the industry and serves only as a barrier to entrance and increases costs to the public. There is also a discussion almost every year to begin taxing professional services.

With general sales tax relatively flat this year, we fully expect this subject to come up again. Another issue we will be looking to provide clarification on is attestation.

More entities are claiming the knowledge and experience in this area. We also look to our national organization to proactively identify issues from other areas of the country that could potentially impact our practice. We look forward to a robust session and our opportunity to be your advocates on Utah’s Capitol Hill. ■ Craig Peterson has been involved in legislative processes for more than 30 years as a State Representative, State Senator and Republican Senate Majority Leader.

During the past 18 years, he has been a lobbyist, successfully representing a broad spectrum of clients. Peterson and his son Ryan have become a strong political voice for their clients.

Ryan Peterson is the president of RCP Strategic, a contract lobbying firm based in Salt Lake City. He received a degree in economics from the University of Utah with a focus on statistics and econometrics. He is an avid golfer and resides in Salt Lake City.

Getting to Know Utah's Government Accountants

three cpas in government eXplain the ins and outs of their areas of government accounting.

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overnment accountants can be found in a wide range of positions through federal, state and local government. While many CPAs don't set out to work in government, they end up with a profound appreciation and enjoyment of their work. Three UACPA members tell us about their experience in government accounting — how they got there, the challenges and the satisfaction they find in their work.

Laura Howat Controller University of Utah Laura Howat grew up in New York, 20 minutes south of Niagra Falls and 20 minutes northeast of Buffalo in a small village called Williamsville. Always an outdoor enthusiast, she was attracted to Utah for the mountains, recreation and "reasonable college tuition." She graduated from the University of Utah with a double Bachelor of Arts in Accounting and Finance and later earned a Masters in Professional Accounting. Married with two sons, Howat boasts, "Our son Nathan is a senior at Princeton University majoring in Biology and is an NCAA division 1 diver. Our son Riley is a sophomore at the University of Utah majoring in Business and is active in his fraternity."

Howat's husband, Barry Makarewicz, has an interesting

and challenging job as a Salt Lake City paramedic. A few years ago they co-authored a book about his experiences, Triumph, Tragedy and Tedium: Stories of a Salt Lake City Paramedic/Firefighter, the Sugar House Years.

Howat is a lifetime cyclist with four Masters National Titles, eight elite Utah State Championships. She competed in the Tour de France in the '80s when the women had a multi-week event. "In the spring and summer, I’m out on my road or mountain bike, in the fall on my cyclocross bike and in the winter I cross country ski."

Howat's other hobbies include vegetable gardening and cake baking.

Government Accounting "I am the Controller for the University of Utah, a $4.5 billion enterprise, a political subdivision of the state of Utah and a charitable organization, with a strong mission of education, research, health and public benefit for the citizens of Utah and the nation. I am responsible for the departments of Accounts Payable, General Accounting, Income Accounting and Student Loans, Tax Services and Payroll Accounting, eCommerce and Payment Cards and Endowment and Investment Accounting, with a combined FTE of 65. My job entails leading, organizing, planning, budgeting and directing all financial and accounting functions as well as collaborating and educating about policy, overall stewardship and internal controls."

the journal entry | October 2016

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CPAs in Governmental Accounting Getting Into Accouting "Prior to working at the University, I worked at Ernst & Young for seven years. The experience was exceptional and taught me the importance of excellence in customer service, technical skills and communication. To any accounting student who has the opportunity to work in public accounting after graduation, I highly recommend it, as you are exposed to so many experiences. However, I also longed for a deeper connection to a public mission.

When my public accounting travel expectations collided with having a young family, I took a position at the University where I’m in my 20th year."

Challenges "The University is $4.5 billion enterprise with 31,000 students, 23,000 employees, approximately 30,000 Hospital and Clinics admissions, 1 million outpatient visits, more than 300 organizational units (colleges, departments, divisions) and more than 2,000 account executives and principal investigators. The University takes responsibility of internal controls seriously and devotes major effort to accomplish them. Maintaining good accountability and control in such a large, diverse, decentralized organization is complex and challenging and requires constant focus and fine tuning. I work with an intelligent, dedicated and hard-working team. Meeting this and many other challenges are part of our everyday focus."

Work Highlights "Every May, during commencement, I see students proud of their significant accomplishment. College degrees provide education, enrichment and a lifetime of additional earnings potential and career options. A college education is always a differentiator as only 30 percent of American adults have a bachelor degree.

While my department isn’t on the front line of education, research or patient care, we provide the business infrastructure so that our faculty, researchers and medical personnel can focus on their expertise. I feel satisfaction that I contribute to this great organization."

Personal and Professional Goals "We formally set our work goals each year. A current major goal is a multi-year Procure to Pay initiative. The goals are to streamline end-to-end purchasing to payable

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"When my public accounting travel expectations collided with having a young family, I took a position at the University where I'm in my 20th year," says Laura Howat, Controller at the University of Utah.

processes, eliminating paper forms, aligning purchasing practices with institutional goals, providing transparency and efficiency, saving time and money.

A personal goal is to collaborate with my husband to write a sequel to Triumph, Tragedy and Tedium: Stories of a Salt Lake City Paramedic/Firefighter, the Sugar House Years as there are so many more interesting stories to be told."

CPAs in Government Accounting

"The airport was built in 1960 to accommodate 10 million passengers. We currently have more than 22 million passengers who fly through SLC each year. The airport is replacing its obsolete facilities and building a brand new airport, which is a multi-billion dollar program," explains Ryan Tesch, Director of Finance and Accounting at the Department of Airports.

Ryan Tesch, CPA Director of Finance and Accounting The Department of Airports Ryan Tesch was born and raised in Sandy, Utah and lived in France for two years after high school. Upon returning to Utah, he met and married his wife. He adds, "We live in the south end of the Salt Lake valley with our two beautiful daughters."

When he's not working, Tesch spends time with his family traveling and exploring new destinations. "We love everything Utah has to offer and frequently hike Big and Little Cottonwood Canyons, Moab, Bryce Canyon and Zion," he says. "With two daughters, we are frequently talked into visiting Disneyland. Some of our favorite places have been traveling to Orlando to swim with dolphins and to Glacier National Park where we took a helicopter tour

of the park. When we aren't traveling, we are spending our time watching our daughters play soccer."

Getting Into Accounting "I remember when I was in high school asking several adults what college degree they would recommend and why. A number recommended accounting, but all for various reasons. I always knew I would go into business, and after the responses I received, I decided to focus on the accounting side of business. I attended the University of Utah where I earned both my bachelor's and master's degrees in accounting. After graduating, I immediately entered public accounting and obtained a CPA license.

Several months after performing an audit for a client, Salt Lake City International Airport, I received a call to come and meet with the airport’s executive director. The meeting resulted in an incredible opportunity to work for the airport in governmental accounting."

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CPAs in Governmental Accounting Accounting and the Airport "The Airport is a department of Salt Lake City Corporation.

The Department of Airports is an enterprise fund, users of the airport’s facilities provide the revenues to operate and maintain the facilities. No local tax dollars are collected or used and the airport is financially selfsustaining. The airport operates three facilities — Salt Lake City International Airport, South Valley Regional Airport in West Jordan, and Tooele Valley Airport. As the director of finance and accounting, I work with a staff of 15 accountants who oversee and manage the budgeting, accounting, financial reporting, construction accounting, financial audits, purchasing, payroll, asset control, debt issuance, management of outstanding debt, and airline rate analysis and calculations."

Day-to-Day Operations "No two days are ever the same, nor will they likely be the same for some time to come. With record passenger numbers that are more than double what the facility was built for, it is a constant challenge to operate and maintain an airport. The airport was built in 1960 to accommodate 10 million passengers. We currently have more than 22 million passengers who fly through SLC each year. The airport is replacing its obsolete facilities and building a brand new airport, which is a multi-billion dollar program.

The first phase, which includes new rental car facilities, parking garage, concourses and terminal, is due to open in 2020."

Rewarding Experiences

"It is rewarding to work with and learn from my co-

workers who are always striving to do what is best for our passengers. It is also rewarding to play a small part in creating a huge asset for Salt Lake City and Utah. The new world-class facility validates the growing importance of Salt Lake City as both a destination and a connecting point for domestic and world travelers. Utah continually ranks #1 nationally in several categories, including best state for business, best economy in the nation, and fastest growing tech state. I recently read an article that economists predict Utah’s population will double by 2050. The city and state are continually working to improve and maintain the infrastructure to support this growth; The new airport is a major component of the city’s infrastructure. Not only is it an important economic driver for the area, but serves as a first impression for the city and state. "

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John Reidhead Director of the Division of Finance State of Utah A Utah native, John Reidhead grew up in Cedar City and Spanish Fork with some time in Roosevelt. He graduated from Southern Utah University in 1983 when it was SUSC. Reidhead and his wife Jennifer have been married for 31 years and live in Centerville. They have three grown children who live from New York City to St George.

Outside of work, Reidhead enjoys hiking and snowshoeing in the mountains, biking in the foothills, and golfing with his sons. He adds, "I enjoy going to the gym to unwind."

Government Accounting "My current position is the Director of the Division of Finance for the State of Utah. The Division of Finance is part of the Department of Administrative Services and I also serve as the CFO of the Department. The Division of Finance is the central accounting office for the State of Utah. This includes maintaining the State’s central accounting and payroll systems; providing a statewide financial data warehouse; producing the state’s official financial statements (the Comprehensive Annual Financial Report – CAFR); providing various central accounting and other services including loan servicing, post audit, internal control reviews and PCI compliance coordination; processing the State’s payments to vendors and employees; operating the Office of State Debt Collection; maintaining the state’s financial transparency website; and operating the department’s consolidated budget and accounting group.

I also serve on five boards and one commission for the state."

Getting Into Accounting "There weren’t many job openings in accounting firms when I graduated. I enjoyed my governmental accounting class in college, and was fortunate to get an interview with the Utah Office of the State Auditor. Val Oveson was the State Auditor at the time. I will always be grateful to Val and his managers; Arnie Combe, Kim Oliver, and Jim Rogers, for giving me the opportunity to work for the state.

In 2001, I was hired by the Division of Finance as Assistant Controller over Financial Reporting. I saw it as a great opportunity to move to the Division of Finance to help

CPAs in Government Accounting implement Governmental Accounting Standards Board (GASB) Statement 34, the new governmental reporting model at the time."

Challenges of the Job "We collect debts, mostly old debts, from people who owe money to the state or one of our other governmental customers. We do this by several methods, including intercepting tax refunds, using outside collection agencies, and garnishing wages. Taking money from tax refunds and wages is not a popular thing to do."

Work Highlights "I work with great employees at the Division of Finance.

Many of the functions we provide are critical to keeping the state and our department operating. Our employees are dedicated and work hard to provide these services.

It is also rewarding to work with accounting personnel who work in state agencies. They do a great job and we have to coordinate and work closely with them. It has also been rewarding to work with some of the Governor’s staff, legislative staff, and individual legislators. I have a lot of respect for the individuals as well as the process."

Day-to-Day Operations "I would describe it as a 'beehive of activity.' We make 1,500 to 2,500 payments to vendors every day. For payroll, we pay approximately 22,500 employees every two weeks (20,300 FTE employees). We have schedules, calendars and due dates for most of our tasks."

Pride in His Work "When I became the Director of Finance, our former director and assistant director had retired and taken other jobs. We were in the middle of implementing a new central accounting system for the state and upgrading our data warehouse. We had a very modest budget and a tight time frame, and we didn’t have the luxury of a dedicated project team. Fortunately, our talented, dedicated staff pulled together well, put in a lot of overtime, and successfully pulled off a complex system implementation on time and on budget in addition to doing their normal work. It was a defining project for our team, and it affected almost every employee in our division as well as many IT staff and accounting personnel in state agencies.

"There weren't many job openings in accounting firms when I graduated," John Reidhead, Director of the Division of Finance for the State of Utah says.

"I enjoyed my governmental accounting class in college and was fortunate to get an interview with the Utah Office of the State Auditor."

Personal and Professional Goals "I will continue to work on our list of projects and goals we keep for the Division. Right now, those include implementing an enterprise grant management system and improving the transparent.utah.gov website. Professionally, I want to stay active in the UACPA. Over the years, I’ve enjoyed the opportunity to be on some UACPA committees. I also want to stay active in the National Association of State Auditors, Comptrollers and Treasurers (NASACT). I’ve been a part of their executive committee and had the opportunity to be the President of the National Association of State Comptrollers last year. It’s a great organization and among other things, it has provided greater access to the GASB. On a personal level, I have a goal to do more volunteer service." ■ the journal entry | October 2016

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Charitable Planned Giving: Not Always As Easy As It Seems working with giving that comes from trusts and wills by ash noah, cpa, fcma, cgma and vp by scott a cZaja, cpa of cgma eXternal relations, aicpa

A

s a CPA, and an active fiduciary of a charitable organization, I have come to the conclusion that charitable planned giving can present pitfalls and problems never anticipated. Charitable gifts can be made inter vivos or, may become effective at a future date such as the death of an individual. These gifts can be made via trusts, wills, and other instruments.

I was recently involved in securing the federal charitable tax exempt status for a number of charitable support organizations. I worked with trustees, attorneys and executive directors of charitable organizations as well as the IRS. This turned into a lengthy process. I would like to retell this story as a way of pointing out the pitfalls and problems that can be encountered.

The charitable support organization (CSO), which was an irrevocable trust, was to become effective upon the death of an individual. The donor had created a charitable remainder trust (CRT) which was funded with close-

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ly held company stock. The terms of the CRT provided that the donor would receive an annual income up to his death subject to the CRT’s distribution formula. Upon his death, the closely held stock would be transferred to the CSO. The donor passed away during 2015. The company that issued the closely held stock would only transfer the stock from the CRT to the CSO once the CSO received its federal charitable tax exemption letter from the IRS. The CSO was set up as a Type I CSO. The CSO, when drafted some 30 years ago, had eight voting positions on its board of trustees. Two of the trustee positions were to be filled by the donor’s daughters. The other six positions were to be filled by the six charitable organizations named in the CSO. The charities would always have a majority voting right on this board. The terms of the CSO stated that the first 60% of the annual income was to be paid to the six named charities under a fixed percentage allocation. The remaining 40% of the CSO’s

Charitable Planned Giving Not Always As Easy As It Seems annual income would be allocated to the six named charitable organizations based on the discretion of the trustees.

i have come to the conclusion that charitable planned giving can present pitfalls and problems never anticipated.

Five of the six named charities had notified the CSO that they would not serve as trustee for a variety of reasons.

One of the main reasons being that they would have an inherent conflict of interest as a voting member of the board of trustees charged with the responsibility of allocating the 40% of the annual income which was discretionary. The sixth named charity had gone out of existence since the original document was executed.

This caused some real problems. Because the CSO was an irrevocable trust, any changes to the CSO would have to be approved by a court of legal jurisdiction. This was a Utah State court. Another problem was trying to convince at least three alternate charitable organizations to serve as trustees on this CSO. One of the daughter trustees was able to convince three charitable organizations to serve as trustees on this CSO. In addition to serving as trustees, these three new charitable organizations were also brought in as named beneficiaries under the CSO. As named beneficiaries these charitable organizations would be assured of an annual distribution to their respective organizations. All of this would have to be approved by the courts.

As a fiduciary of a charitable organization, I am aware of a general rule of thumb of soliciting gifts. That rule is: Your next gift will most likely come from someone who has previously given to your organization. In my efforts to convince the old named charities to remain as a trustee, I suggested that their respective organizations may receive additional consideration if the family of the CSO were to make future gifts.

liability insurance. The daughter trustee refused to meet this stipulation. The court hearing had to be postponed because this last minute change of heart was not resolved prior to the scheduled court date.

So, after all of the old trustees and new trustees were given full notification of the original CSO trust and the amended CSO trust document, all objections were answered. The court approved the amendment.

This process took close to a year. The IRS agent assigned to reviewing this application was very patient. I had to ask for repeated continuances and additional time. I was fortunate that this agent had worked at a law firm as a paralegal and was familiar with the court’s time table.

The time table of the IRS had to be considerate of the courts existing docket of cases which was completely out of our control. Each time I requested additional time from the IRS, I would have to give the agent the latest updates of this seemingly endless drama. The IRS agent needed to convince her supervisor that we were in fact working on getting what the IRS had requested of the taxpayer.

In the end, the IRS issued the exemption letter to the CSO. The stock transfer is still pending due to more issues of trying to find the original stock certificates issued to the CRT and having them cancelled and reissued to the CSO. This will happen but it will take a little more time.

As a final comment, I would recommend that all parties subject to a complicated planned gift be aware of the facts and be willing to live with them. â–

Scott A. Czaja, CPA is a member of the UACPA non-profit committee. Czaja is a tax partner at WSRP, LLC and is currently the Treasurer of the Catholic Foundation of Utah.

On the evening before the attorney representing the CSO was scheduled to go to court, one of the original charities had a change of heart. They were willing to remain as a trustee provided the CSO would purchase fiduciary

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closing the gaap — women in accounting

Cathie Hurst, CPA interview by tamra dayley, cpa

C

athie Hurst grew up in Laramie Wyoming, where her parents moved when she was 3 years old. She married at 22 and lived in Salt Lake City while her husband earned his master's degree and PhD, lived in California for a year, then moved to Ogden where they currently reside.

What led you to a career as a CPA?

Hurst earned her bachelor's in 1997 and master's in 1998 from Weber State University, which was challenging considering she was taking classes while her kids were in school. "This wasn’t always the easiest task since I liked being involved with their schools and activities [PTA, room mother, ball games, cheer competitions, drill team, student government, etc.]," she says. "It was worth it though, since I have an awesome family consisting of one husband, two children, and three grandchildren."

This is still a mystery! I didn’t like math all the way from elementary school through high school. I started college at the University of Wyoming after high school, and went in to declare accounting as my major. When I found out how much math was needed, I questioned my decision and just took generals that first year. Then I quit going to the UW and started cosmetology school. However, I still wanted a degree, so when my kids reached school age I enrolled at WSU. I had an accounting class in high school that I absolutely loved and since there wasn’t anything I felt like I wanted to do more than accounting, I decided to just go for it. I figured if I hated the classes, I would change majors. Not only did I love the classes, I excelled at school, including math. So here I am.

What would you be doing if you were not a CPA?

What do you enjoy doing outside of work?

Personal Trainer? Nutritionist? These are both things I have an interest in, and have thought about pursuing at one time or another over the years.

I love running and have run the Ogden and St. George Marathons every year for years. This last year I got to check off a bucket list item and ran the Boston

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Closing the GAAP — Women in Accounting Marathon. I also enjoy eating chocolate, biking, hiking, and eating more chocolate. I love being in the sunshine, and especially enjoy doing stuff with my husband, kids, and grandbabies.

Do you have a favorite accounting joke?

What advice do you live by?

What advice would you give male professionals as they interact and work with female professionals?

I have found that the more I know, the more I realize how much I don’t know. Therefore, my mantra has become: Faith not Fear What advice would you give other female professionals?

Sometimes it is hard to balance work and kids, but there are jobs out there that are conducive to doing both. If you are doing what you love then you can make it work.

What path did your career take in order for you to hold the position you are in today?

I started right out of graduate school at KPMG. It was a great experience for learning how to tick and tie, and for general audit knowledge. I enjoyed great colleagues and made some good friends, but it wasn’t easy for a working mom, and my kids struggled. I then went to Ulrich & Assoc., a local CPA firm, which was more conducive to a working mom, since I could be close to home and my kids' schools. That helped me balance work and family better while my kids were young. I ended up working there for 17 years and really enjoyed the audit side and managed the tax side. I also made some lifelong friends.

I even taught accounting as adjunct one year at WSU, which I really enjoyed. I recently took a position with Academica West, and I am really enjoying learning a whole new aspect of accounting and developing new relationships.

Yes, the IRS tax code. :)

Mutual respect. I feel like every professional has their strengths and weaknesses. I think that if we see everyone as a professional, and focus on each individual’s strengths and capabilities rather than what gender they are, that will promote a more effective, functional work environment.

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

In school, I had a professor, Ron Mano, who was a great mentor and someone I could consult with about the accounting profession. Once I started working, I have felt everyone is a potential mentor. There is always someone I work with that has traits I admire. Whether it is what they know, what they do, or how they handle themselves, I try and figure out what could be applicable to me and then work to incorporate it into my career and life. ■ Tamra Dayley, CPA, recently joined the Internal Audit team for the Utah State Board of Education.

She currently serves on the Woods Cross City Council where she has dedicated 12 years of service.

Dayley graduated from Brigham Young University.

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Meet the Executive Board

Q: What has been a highlight of 2016?

Hollie Andrus, CPA President

Gavin Hutchinson, CPA President-Elect

A huge highlight for me has been meeting with members at chapter meetings. I have enjoyed getting to know so many of you and seeing the impact y'all are making.

This summer we voted to restructure the AICPA-CGMA joint venture, and I appreciated hearing your opinions on this issue — both for and against. You are amazing!

One highlight is the success of the benefit concert we held in July. We hosted the band Old Dominion for a concert at the Ogden Amphitheater on a warm summer night. More than 2,000 attendees enjoyed a fabulous concert by one of the hottest new country acts this year.

Matthew Klein, CPA Vice President

Jay Niederhauser, CPA Treasurer

We have a new baby boy born August 10.

Two kids is a big change from one! And I’m sure I learned a new Excel formula too.

Oh, and joined the UACPA Board!

Aside from surviving the tax deadlines at the 15th of each month, there are not a lot of highlights in the life of an accountant! I did luck out this year and draw a permit to hike the Subway in Zion National Park, and had the opportunity to hike it in a driving rain storm!

Josh Turnbow, CPA ProNet

Sherie Charlesworth, CPA Secretary

I am looking forward to a fantastic awards event evening at the end of the month.

The highlight of 2016 was attending my Uncle’s 90th birthday party in Chicago. My husband, children and their spouses along with all five of my grandchildren were able to attend and meet my father’s side of the family.

Susan Speirs, CPA CEO

Jonyce Bullock, CPA Immediate Past President

Seeing our son, Andy, graduate with his Master’s in Accounting and follow in his mother’s footsteps into public practice.

Two of the exams down, two to go; not bad for someone who said he would never do accounting!

My oldest just turned 16 and received his driver’s license — now he can run errands for me!

Not Pictured: Brett Hugie, CPA, Member at Large; Owen Ashton, CPA, Member at Large; Brandon Allfrey, CPA, AICPA Council 26

the journal entry | October 2016

Board Bullets

News from the UACPA Board

Here is a glance at what has been happening at the Utah Association of CPAs: •

•

Discussion with regards to the need to bring our attest language up to date in our Certified Public Accountant Licensing Act. We’ve met with an attest task force and they have reviewed the proposed language from the AICPA with additional comments and changes. The State Board of Accountancy has also been charged with reviewing the language so that final changes may be made and approved before we move forward with bill sponsorship.

Staff members reported on progress in their individual departments with regards to the strategic plan that is being implemented this fiscal year. We’re seeing increased efforts to engage students on the university level, finalize surveys to be sent out to members and non-members, production of the Utah Laws and Rules class that will meet the new ethics requirement and advocacy efforts as they relate the tax commission, legislature and public issues.

•

Leadership Council will be held in January and will focus on our committees and councils reporting back what they’ve accomplished and any challenges where additional help is needed.

•

Mary Pehrson was approved to be a trustee of the retirement plan.

•

Selections from the Awards Committee were approved. Awardees were invited to the annual Inauguration and Awards dinner on September 29.

•

The audited financials were presented.

Meet the UACPA Staff

Q: What has been a highlight of 2016?

April Deneault CPE Manager My trip to Moab has been the highlight so far. Each year, my mom, my two sisters and I take a trip to Moab. We hike, swim in the Colorado river and have girl time. This has been a tradition since we were little.

Braden Thompson Membership Development Coordinator The highlight of my year was completing a master’s degree in strategic communication from Westminster College, which included traveling to South Africa to create marketing materials for the Desmond Tutu HIV Foundation Youth Centre.

Amy Spencer Marketing & Communications Manager I spent my summer running late at night and waking up at the crack of dawn on weekends to train for a marathon. I am proud to say I earned my first medal for running 26.2 miles at the Revel Big Cottonwood Marathon on Sept. 10.

Tom Horn Financial Director Utah Utes getting their 6th win in a row over the team down south in football!

the journal entry | October 2016

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Five Minutes with Mike McCauley Mike McCauley, CPA was born and raised in Salt Lake City. He graduated from the University of Utah and received his master's from Weber State University in 1993. He was part of the first Beta Alpha Psi group at WSU. He is the owner of McCauley & Associates where he specializes in political campaign accounting. He is currently serving as the treasurer for Gary Johnson's presidential campaign.

What has it been like to work with a presidential candidate during election season? Absolutely crazy. It's amazing the amount of money and interest a presidential contest generates, and the people that come out of the woodwork. This is a very grassroots candidate with hundreds of thousands contributing very small amounts of money. I haven't seen anything like this since Ross Perot.

proud moment. 3. Starting my own practice and being successful.

What has your political involvement been like? I have been the treasurer of the Utah Republican Party and am currently running for the Davis County School Board.

What would surprise people to know about you? I'm trying to break out of being a workaholic, find a few hobbies and spend more time with my family.

How did you get into politics? I jumped into political issues in college as there were issues with property taxes and threats that if the taxes went down, the quality of my education would go down. As a college kid, I supported social issues.

What led you to become a CPA? I actually stumbled into it. My older brother Steve was studying accounting, so I did too. I changed from finance to accounting and decided that I was going to be an accountant.

What have been your proudest moments as a CPA? 1. Passing the exam —that's a milestone for anybody.

2. Picking up my first client was a

What do you like to do ouside of work? I love high school and collegiate sports. I love to fish, archery, hunting — anything outdoors. I enjoy watching my daughters play volleyball and tennis. I love to trade stocks and manage my own portfolio.

What are some of your goals as a professional? Be successful in the political accounting arena. Make certain my family is taken care of and take an early retirement.

What advice do you live by? Buy low, sell high — this works for more than just your investment portfolio. ■

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Photos, Golf Tournament

The UACPA golf tournament was held Wednesday, Aug. 17 at Bountiful Ridge Golf Course. More than $3,400 was raised for the Utah CPA Foundation.

Thanks to our sponsors: NetWize, Cost Segregation Consultants, Wells Fargo, iTransact, Utah Educational Savings Plan, Premier Computing, Cost Segregation Authority and ADP.

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the journal entry | October 2016

Photos, Golf Tournament

the journal entry | October 2016

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Annual Tax Update: Indiviudals and Sole Proprietors

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Annual Update for Accountants and Auditors

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Slashing Taxes for Your Small Business Clients - Logan

Michael Blackburn

AICPA

$299

$399

11/11/16

8

Advanced Excel

TBD

K2 Enterprises

$285

$340

november

11/14/16

8

Financial Statement Analysis: Basis for Management Advice

Ron Rael

AICPA

$285

$340

11/15/16

8

Annual Update for Controllers

Ron Rael

AICPA

$285

$340

11/16/16

8

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

Ron Rael

AICPA

$285

$340

11/21/16

8

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

Michael Blackburn

AICPA

$285

$340

11/28/16

8

Form 1041: Income Taxation of Estates and Trusts

Michael Blackburn

AICPA

$285

$340

11/29/16

8

AICPA's Annual Federal Tax Update

Michael Blackburn

AICPA

$200

$340

12/1/16

4

Applying the Risk Assesment Standards to Enhance Audit

Robert Minniti

AICPA

$170

$195

12/1/16

4

Fraud: Recent Findings, Red Flags and Corruption Schemes

Robert Minniti

AICPA

$170

$195

12/2/16

8

Identity Theft: Preventing, Detecting and Investigating

Robert Minniti

AICPA

$285

$340

12/5/16

8

Current Accounting & Attest Service Update for Practitioners with Small Business Clients

Marty Van Wagoner

Surgent McCoy

$285

$340

december

12/12/16

8

Corporate Tax Workshop: Get Ready for Busy Season

Bruce Nelson

AICPA

$285

$340

12/13/16

8

Multistate Income Tax

Bruce Nelson

AICPA

$285

$340

*Early-bird pricing available for classes when registering at least two weeks in advance. (Excludes 4 hour courses and core training courses) AICPA Members receive an additional $30 off the price of each 8 hour course $60 for 16 hour courses. (Excludes 4 hour courses and core training courses) where the AICPA is listed as the vendor. Use promo code AICPA8 for 8 hour courses and AICPA16 for 16 hour courses.

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UACPA Conferences Tax Symposium November 18

Business Valuation November 30

Technology Conference December 15 - 16

7:30 – 8:00 Registration & Continental Breakfast

7:30 – 8:00 Registration & Continental Breakfast

Topics Include: • Tech Update 2016

8:00 – 9:00 Tax Update Jody Stamback - IRS

8:00 – 9:00 Overview of Business Valuation Kelly Priestly

•

A New Day, A New Technology Way

•

9:00 – 10:00 State of Utah Update Scott Smith, Utah State Tax Commission

9:00 – 9:30 What’s New in Business Valuation Carl Steffen, CPA/ABV/CFF, CVA, ASA, CBA, ABAR - WSRP

Securing the Perimeter – A Management View

•

CPA Firm Technology Solutions

•

Accounting Software Update

•

Integrating Excel with Word and PowerPoint

•

Adobe Acrobat DC – Big Changes for PDFs

•

Excel’s Top 15 All Time Hints and Tips

•

Windows 10 Tips and Tricks

•

Should Your Next Computer Even Be a Computer?

•

Profiting With Excel’s Best New Features

•

Best Technologies for Small Businesses

•

Get Organized with Evernote and Onenote

•

Workflow to Benefit You and Your Clients

•

Fraud in the Cloud – New Risks in A New Environment

•

Our Favorite Apps

•

QuickBooks Online – Advanced Features and Functions

•

3:30 Adjourn

Create Stunning Dashboards with Power BI Desktop

•

Critical Tips for Avoiding Identity Theft

Location: UACPA Training Center, 136 S. Main Street, Suite 510 CPE: Eight (8) hours Fees: UACPA Members before Nov. 16 $247; UACPA Members after Nov. 16 $275; Nonmembers $335

Location: South Towne Expo Center, 9575 S. State Street CPE: 16 hours Fees: UACPA Members before Dec. 1 $418; UACPA Members after Dec. 1 $465; Nonmembers $545

10:00 – 10:15 Refreshment & Networking Break 10:15 – 11:10 Update - Ted Madsen, CPA 11:10 – 12:00 Ideas for Dealing with the IRS and the states – practitioner’s Perspective Charlotte Clark, CPA, CVA, ABAR and Richard L. Peterson – Jones, Waldo, Holbrook & McDonough

9:30 – 9:40 Refreshment & Networking Break 9:40 – 11:10 Fair Value Roger Smith, CPA – Lone Peak Valuation 11:10 – 12:00 Ethics Hollie Andrus, CPA – Utah State Auditor’s Office

12:00 – 1:00 Lunch & Luncheon Speaker

12:00 – 1:15 Lunch & Luncheon Speaker

12:15 – 1:05 Ethics – Hollie Andrus, CPA Utah State Auditor’s Office

12:15 – 1:15 Economics

1:05 – 2:05 S Corp/Partnership Basis Adam Chamberlain, CPA - WSRP 2:05 – 2:20 Refreshment & Networking Break 2:20 – 3:20 Charitable Giving/Exit Planning Nathan Daley Fidelity Charitable Giving 3:30 Adjourn Location: UACPA Training Center, 136 S. Main Street, Suite 510 CPE: Eight (8) hours Fees: UACPA Members before Nov. 4 $247; UACPA Members after Nov. 4 $275; Nonmembers $335

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1:15 – 2:15 Forecasts – Jeff Pickett, CPA/ABV Lone Peak Valuation 2:15 – 2:30 Refreshment & Networking Break 2:30 – 3:30 Fraud/Forensics/Internal Controls 101David Bateman, CPA - Rocky Mountain Advisory LLC

WINTER

CONFERENCE December 8 - 9

Attend online via webcast or live at The Salt Palace Keynote Speaker: Terry Sumerlin - Leadership for Today's Professional

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Member Benefits

The UACPA Honors 100% Membership

AGILITY

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

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

ADP

ADP offers free payroll and free 401k services to Members and its affiliates. Please contact Megan Di Muro at 303-6533248 or Megan.DiMuro@ADP.com for more information

National Affinity Service

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

CCH

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

iTransact

iTransact, a full service payment processing company, rewards UACPA members with a residual payout program.

Email Blake Tracy at b.tracy@itransact.com or call 801-951-8106.

World Benefit Solutions

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

PUBLIC PRACTICE • Allred Jackson • CBIZ • Cook Martin Poulson • Davis & Bott • Eide Bailly • Hawkins Cloward & Simister • Haynie & Company • Jones Simkins • Pinnacle Accountancy Group • Pinnock, Robbins, Posey & Richins • PricewaterhouseCoopers • Savage Esplin & Radmall • Squire • Stayner Bates & Jensen • Tanner, LLC INDUSTRY • LDS Church Auditing Department • Workers Compensation Fund

Camico

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

Office Depot

UACPA members can save up to 40% on office products, printing, technology and furniture. Visit uacpa.org to learn more.

Is your firm eligible to be a part of the 100% membership program? Learn more by talking to Braden Thompson, bthompson@uacpa.org or call 801.466.8022

Learn more about member benefits by talking to Amy Spencer, as@uacpa.org or calling 801.466.8022 the journal entry | October 2016

37

1

In Memoriam

Learn Leisure

at your

Gary York

July 25, 1939 — May 31, 2016 UACPA Member since 1976

Lee S. Skidmore

Nov. 11, 1947 — July 8, 2016 UACPA Member since 1989

Kenneth Mackay Miller Feb. 24, 1941 — May 21, 2016 UACPA Member since 2003

Orson Devon Osborne Jan. 20, 1923 — May 13, 2016 UACPA Member since 1958

Daniel Favero

Feb. 8, 1928 — June 24, 2016 UACPA Member since 1969

Take Your Next Class Online

With more than 2,000 webinars to choose from, you can find classes tailored to your CPE needs. Our partners have classes that will fit into your schedule.

Visit www.uacpa.org.

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ContactList

ConnectWithUs

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.

October

November

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

Larry Deppe 801-626-7838 deppelarry@msn.com

www.facebook.com/utahassociationofcpas

December

www.twitter.com/uacpa

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

CPE Approval — Does This Qualify?

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

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

Tax Issues

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

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

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

Utah Practices for Sale: Utah County CPA Practice - gross $563K - Tax (60%), audit/review (23%), accounting (8%), other (9%), quality client base, staff in place, strong fee structure. For more information, please call 1-800-3970249 or to see listing details and register for free email updates visit www.AccountingPracticeSales.com.

THINKING OF SELLING YOUR PRACTICE? Accounting Practice Sales is the leading marketer of accounting and tax practices in North America. We have a large pool of buyers, both individuals and firms, looking for practices now. We also have the experience to help you find the right fit for your firm, negotiate the best price and terms and get the deal done.

To learn more about our risk-free and confidential services, call Ryan Pannell with The Holmes Group at 1-800-397-0249 or email ryan@accountingpracticesales.com. the journal entry | October 2016

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

Nonprofit Org. U.S. Postage

PAID Salt Lake City, UT Permit No. 1996

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