The Journal Entry - July 2016

July

2016,

Vol.

III

|

The

Leadership

Issue

Essential Skills of Change Leadership Building a foundation to become an influencial leader

By Nick Fuoco, CPA

Tapping Into Engagement How new professionals can be emotionally invested

Mission,Vision,Values

ExecutiveBoard

Mission

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

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

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

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

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

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

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

UACPAStaff CEO........................................................ Susan A. Speirs Communications/marketing and Editor of The Journal Entry............... Amy Spencer CPE Manager......................................... April Deneault Financial Director..................................... Tom Horn Membership Development........... Braden Thompson The Journal Entry is published quarterly, by the UACPA 136 S. Main Street, Suite 510 Salt Lake City, UT 84101 tel: 801-466-8022 toll-free in Utah: 1-800-676-2776 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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the journal entry | July 2016

in this issue | July 2016

feature story

Find Success with Change Leadership 128 New Members............................................................................................4 Movers & Shakers......................................................................................5 President's Message...................................................................................6 Message from the CEO............................................................................. 7

Leadership and Staying True to Yourself

Cover Story: Key Elements of Change Leadership...............................9

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By the Numbers: UACPA Membership................................................ 14 Authentic Leadership ............................................................................. 15 Engaging Young Executives................................................................... 19 Cyber Risk Management........................................................................22 Top Five Challenges in Practice for 2016.............................................24 Photos, Leadership Council, BAP Dash and Student Awards...........26

Top Five Challenges in Practice in 2016

17

Meet the Executive Board......................................................................28 Board Bullets............................................................................................29 Meet the UACPA Staff ............................................................................30 Meet a Member: Roger Mann ...............................................................33

Meet a Member: Roger Mann

Education & Events.................................................................................34 Member Benefits/100% Membership Firms........................................37

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New Members

NewMembers

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

Fellows Richard Vance LDS Church Auditing Josh Tillotson Cook Martin Poulson Angie Thompson Jones Simkins Kristin Cook LDS Church Auditing Jamie Lucky Jones Simkins

Nathan Merrill Goodspeed & Merrill Brady Coats Tanner LLC Brian Smith WCF Insurance Zachary D. Peterson KPMG LLP Lisa Lawrence Adams & Petersen, CPAs LLC

Amber Smith Pinnock Robbins Posey & Richins Benjamin A. Joslin Southern Utah University Steven Wilson WSRP, LLC Rebecca Fletcher Stayner, Bates & Jensen, PC Julianne Linton Larson & Company, PC

Seth Van Cott LDS Church Auditing

Jesse Messer LDS Church Auditing

Jason Broschinsky Liberty Tax Service

David K. Loveless Larson & Company, PC

Kathryn Grover Tanner LLC

Jared S. Burge Larson & Company, PC

Michael Harrison Nebo School District

Abel M. Mkina Weber State University

Gregory S. Acton Tanner LLC

Alex Barrett Tanner LLC

Lacie N. Campbell Eide Bailly, LLP

Youngsun Roberts Squire & Company, PC

Kate Gallacher Tanner LLC

Edmund W. Bailey

Trent R. Millet Jones Simkins LLC

Allison K. Matheson Tanner LLC Lance Hackett CBIZ MHM, LLC

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Rachel A. Norris Blendtec Lonnie D. Clove Clove & Associates, CPAs Shaun Anderson Eide Bailly, LLP

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Student Members Brigham Young University Rhonda Sandberg

Weber State University Brian Thatcher Spencer S. Lee Candiemay Osborne Stephon A. Schoonmaker Amanda S. Muir Nickolas Thongrit Chengyi Wu Hayley Cottle Robert Alexander Alec Kennedy Utah Valley University Stephen Seyboldt Hannah Stoner Joshua Lim Nathan C. Merrill Jonathan T. Allgaier Geoffrey Harmon Paul Avery Everett Peterson Bennett Busath Chantelle Bradley Chris Carlson Christian Peterson Nathan K. Rasmussen Christopher Searle Jessica Gurney Cole K. Richins Pimmawat Phurisat Nicholas Osei Bonsu Jared Hessing Taylor M. Holman Matthew Perry Gavin Hales Jf. Brody Brooks Jodie E. Garrard

Movers&Shakers

University of Utah Wilson Ertel Brayden A. Miller Whitney T. Lyman Miranda VanDerHeyden Dylan Chisholm Joshua Slater Kathryn Boog Lynette Robison Amanda Burke Florencia Gurmandi Cassandra Cokl Nathan R. Hymas Lindsay Jenkins Julie Trujillo Bruce Gray Laura Krummenacher Whitney Gagon Scott K. Earl Kwang Yeop Lee Zhongbo McNall Tony Rascon Elizabeth La Rue Candice Arnold Paige Pribble Cory Henderson Lori Stutz Quinton Harrison

Stayner, Bates & Jensen, P.C. has hired two additional partners for its tax and audit practice.

David B. DeMille was hired as a tax partner within the firm and David B. DeMille will focus on strategic income tax planning and compliance for closely-held businesses and business owners.

DeMille earned his undergraduate and masters degrees Jeffrey Q. Johnson at Brigham Young University. Jeffrey Q. Johnson was hired as an audit partner within the firm. Johnson has more than 14 years of public accounting experience and specializes in outside CFO/consulting work for a variety of companies. He earned his undergraduate and masters degrees from Southern Utah University.

Utah State University Clayton R. Brown Licett Bellber Kiera Klemm Kenrik Ikaika N. Lopez Hayley Zilles

Eide Bailly has added two partners in their Salt Lake City and Ogden offices.

Ben Peeler has joined Eide Bailly LLP as a partner at the Salt Lake City office. Peeler, J.D., CPA, LL.M., has more than 18 years of tax experience as a federal tax, controversy and procedure specialist. He leads Eide Bailly's IRS Practices & Procedures area.

Previously, Peeler worked as an attorney for the IRS Office of Chief Counsel. The Ogden office of Eide Bailly has brought in Brad Poll as a firm partner. With more than 10 years of public accounting experience, Poll provides strategy planning and compliance for corporations, partnerships and small business owners, as well as general consulting services to businesses and their owners. He

Westminster College Michelle Tuffree JoeCee Heil Josh Stenrer Other Alisha R. Frehner Julio A. Quispe Lapa

also has experience with ERISA retirement administration.

BDO USA, LLP has expanded into the Utah market through the addition of the 64 staff members from Mantyla McReynolds, LLC. The Salt Lake based firm, founded in 1989, has been a member of BDO Alliance USA since 2008. Mantyla McReynolds has been recognized by numerous business and industry publications for its workplace accomplishments including being named one of the "Best Accounting Firms to Work For" by Accounting Today for five consecutive years. Mantyla McReynolds co-founders, Don Mantyla and Kim McReynolds, will continue in their leading roles at the practice.

Utah Business recently recognized Kirsten Widdison from Mantyla McReynolds, LLC as one of their "30 Women to Watch." Prior to becoming the assurance manager for Mantyla McReynolds, LLC, Widdison spent three years working as a senior in the audit practice at HJ & Associates, LLC. W. Val Oveson has joined Taxometry as Senior Vice President of Tax Administration where he will be responsible for implementation of the company's product and delivery. Oveson has held executive positions in business and government, including National Taxpayer Advocate of the IRS and Chair of the Utah State Tax Commission. He served as the Utah Lieutenant Governor for two terms and the Utah State Auditor for one term. He has been a managing director at PricewaterhouseCoopers, a consultant with KPMG and has served as CIO for the State of Utah. He is currently a member of the Board of Directors of American Express Centurion Bank. Prior to joining Taxometry, Oveson was a partner with WSRP, LLC.

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President's Message

Hollie Andrus, CPA

A

few years ago, my husband and I sat in my daughter’s first grade classroom listening to her teacher tell us how our daughter is a natural leader. The kids in the class were drawn to her and often did whatever she did — for good or for bad. Since then, I have often wondered if leaders truly are born with an innate ability to lead or if leaders can be molded. Is effective leadership “nature” or can it be “nurtured?” I believe it can be nurtured.

I do not consider myself a natural leader. When I think of leaders, I often think of gregarious extroverts. I was always the quiet kid in the back of the classroom that only answered when called upon. In fact, if you asked me five years ago where I thought I would be today, UACPA President would not have been on the list. If you asked me three years ago what I would be doing in my job, a financial audit director position was not on my radar. Yet, here I am. I do not consider myself extroverted — I am an accountant to the core — but I have come to enjoy opportunities to grow and to lead and hope that I can influence even just one person to aspire to greater heights. To me, that is the essence of a great leader.

Leaders come in all shapes and sizes.

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Stephen R. Covey, in his 7 Habits of Highly Effective People quoted Viktor Frankl, a psychiatrist and Holocaust survivor, who said, “we detect rather than invent our missions in life.”

How does this apply to leadership? Like myself, you may not consider yourself a natural leader. Opportunities exist for you and I to become great leaders — we need to recognize and act upon them. These opportunities will mold us, change us, and help us learn to lead. Looking back over my career (which makes me sound older than I feel!), I can detect moments and opportunities that have made me who I am today, that have made me more comfortable in leadership roles, and, hopefully, that have made and will continue to make me an effective leader.

Do I mention this to say “look at me” or to brag? On the contrary. I hope this inspires somebody out there — maybe a brand new, slightly introverted staff auditor — who isn’t quite sure where he fits or what his career holds for him to seize the opportunities presented to him. I hope this helps somebody detect and accept opportunities to develop his leadership traits. While I appreciate the words of Dr. Frankl and Mr. Covey, I think Dr. Seuss said it best in Oh, the Places You'll Go!: “Today is your day. You’re off to Great Places! You’re off and away? YOU are the guy who’ll decide where to go. Wherever you fly, you’ll be the best of the best.

Wherever you go, you will top all the rest. And will you succeed? Yes! You will, indeed! YOU’LL MOVE MOUNTAINS! Today is your day! Your [leadership] mountain is waiting. So. . . get on your way!”

CEO's Message

Susan Speirs, CPA

O

ne of the biggest challenges we face is the rapid pace of global change paired with the exponential growth of technology. A leader’s judgment and decision making should anticipate them both to the point that their complexity is minimized. In other words, how do we get ahead of the power curve so that we can deliver value in a scalable fashion to our organizations? Here are some ideas.

Create a shared purpose: We’re moving into an era of shared capitalism — where companies focus on delivering long-term value through purpose, passion and shared ideas.

A recent PwC study indicates that 25% of CEOs report a change in their company’s sense of purpose to take into account the broader impact on society. In order to accomplish goals and meet standards, building a diverse and complete team that has been empowered to take risk and think unconventionally is a must. A diverse team usually means strong perspectives and opinions. As leaders, we need to let our teams be naïve, curious and bold, even if it leads to healthy conflict.

Measure ROI of soft skill development: How many times have we heard that smiles and sunshine don’t turn profits?

The ROI Institute notes that “soft skills create agile organizations, develop innovative companies, make the best places to work and build the most admired companies.” However, it can be said that soft skills are anything but soft. They’re difficult to learn in a world where we oftentimes communicate through a machine or send messages with emoticons.

We’re seeing a generational difference in soft skill mastery.

As we develop our soft skills, we’re able to develop trust.

We know, as CPAs, that trust is the basis of which everything — performance, relationships and results — is built.

One of the core goals of UACPA Leadership Academy is to provide an opportunity where these skills can be honed and weaved into the individual strengths of the candidate.

Identify and communicate what success looks like: To communicate what success looks like, we must first get

granular and identify what success looks like. Once we’ve identified the measurable, we’re in a position to identify the strategies to get there. We’ve had to put this idea into play as we’ve drafted the operations outline for the UACPA's strategic plan. While the operations plan will change and evolve, the measurable will not. We continue to be in a better position to meet the mission statement of the organization.

Knowing the “what” helps us to align and fit skill sets of our employees to the tasks that need to be accomplished. When leaders optimize skill sets, the rapid pace of change we face is slowed a bit because skill is able to overcome obstacles that hinder progress.

For every leader who sees uncertainty, there is another who sees opportunity. A leader’s perspective is contagious. They know that body language sends powerful messages and that people pick up as much on what isn’t said as what is said.

People like hearing a vision or having some direction — especially in the times that we live. The rate of global change and technology will only continue in our organizations.

Any sort of communication to our staff as to direction offers a degree of certainty and trust; it communicates that leadership is aware, there is a plan within the organization to move forward, they have a role and there will be success.

We invite you to apply for Leadership Academy where you may discover where your own strengths are and how you can use them in all facets of your life. Learn more at www. uacpa.org/leadershipacademy the journal entry | July 2016

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Key Elements of Change Leadership The Five core attributes that create a foundation for progressive leadership

By Nick Fuoco, CPA

W

hen I used to reflect on what makes a good leader, I always gravitated to the typical things — charisma, charm, smarts, etc. — but now after being active in leadership for years, I think it is much more involved.

Leadership is not something that you are born with.

Albeit, some skills or strengths may be more natural for some people, but to be a competent leader, it takes focus, practice, learning and humility.

Originally, I started writing about overall leadership competencies and how one becomes an effective leader. The more I reflected back on some of the books and experiences that resonated the most with me, I revisited the idea of change leadership and leading through change. Some of my most memorable professional and personal experiences revolve around change. How we lead versus manage that change is very important. John Kotter, Professor of Leadership at the Harvard Business School, defined change leadership in Forbes Magazine as, “the driving forces, visions, and processes that fuel large-scale transformation.”

It initiates a change in vision that leads to large-scale mass changes rather than managing a changing environment.

Quite simply, it is influencing change rather than managing through change.

As I have thought through these experiences and the foundational competencies that helped me lead change, I have narrowed them down to five core attributes. These are not all-encompassing competencies, but I have found these to be some of the most important foundational skills to be an effective change-leader and leader as a whole.

1. Lead with Integrity 2. Empower Your Team 3. Take a Holistic View 4. Question the Status Quo 5. Focus on Problem Solving and Results

Lead with Integrity As CPAs, we all know the importance of trust and integrity, and we are ethically bound to uphold these principles. As leaders, it is just as important that we always display the highest levels of integrity in all of our dealings. We must be the journal entry | July 2016

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Feature Story

examples to our teams that speaking honestly and being trustworthy builds respect and efficacy. There must be no hidden agendas so that our thoughts = words = actions.

be accepting of change and ideas that are most profitable and beneficial to the organization and its clients.

Strong leaders do not deflect. Our teams must know that we have their backs and ultimately, with any strong leader, the buck stops with us. We must own negative results and attribute positive results to our team. When your team knows you have their back they will have yours as their leader. They will feel liberated to think and act creatively if they know they have a leader who will stand by them and encourage them rather than blame them or deflect.

Empower Your Team

One of the books we have applied at Nicholas and Company is "The Speed of Trust." Author Stephen Covey states that integrity is made up of three virtues: congruency, humility and courage. By establishing a team built on a set of values, both the leader and team will know how to act regardless of the situation. Congruency is acting according to your values; humility is putting self aside to do what is best according to your values; and courage is making decisions around those values even when it is difficult. If a team is truly able to act with integrity, we can 10

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Giving your team a high level of autonomy is key because they can be flexible to make their own decisions and know how to act when the leader is not there. This is not something that can happen overnight as teams need to learn how to act with such a high level of independence.

This can be attained by putting parameters and expectations around processes and benchmarks around results the team is expected to hit. Ultimately, no one likes to be micromanaged and the fundamentals your team will learn by acting autonomously will give them the foundation to drive profound change throughout the organization.

This empowerment brings a level of collective ownership to the team as they are in charge of the process and decisions. Often with empowerment comes a loss of control for a leader and we should be comfortable with

Feature Story that.

It means your team is owning the process. Whether it be at a CPA firm or an organization, we should want our team members to feel vested in decisions and think as though they own the organization. When we think as owners, we add value to our clients and stakeholders.

This resonates with team members as they will feel less overwhelmed by change and more empowered to make decisions and actually drive the change.

Take a Holistic View Departments must be aligned with the overall strategic perspective of the greater organization. As leaders, we must not make decisions or build our strategic direction in a bubble. We must be connected to the greater organization’s mission so that we are in sync and aligned when we are shaping our strategy. This allows us to put it all in perspective of the overall mission and make sure both align. For example, if an organization’s goal is to grow sales by double-digits, the finance department may need to tweak their working capital goals to facilitate that growth.

We must make decisions that benefit the organization as a whole. We must make sure our teams are connected to the outside world. This world may simply mean operations down the hall. However, in order to be business partners, we must be connected with all relevant parties throughout our world. In addition, by looking outside our sphere of reference, we can see things from a different perspective.

There may be a new and better way to do something, but if we are not looking outside our circle, then we may be missing opportunities and the value that come with them.

Building strong cross-functional relationships is key to thinking holistically as it fosters collaboration and teamwork. Leaders must facilitate and establish trust that fosters collaboration and teamwork amongst both their team and also amongst the organization. As part of a corporate finance and accounting department, I always ask my team, “Are we easy to do business with?” We strive to be valuable business partners to the rest of the organization and, as CPAs in industry or practice, we must always strive to be valued advisors to our clients and organizations. By encouraging your teams to think holistically they will be

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Feature Story able to see the change that is needed for the overall good of the client or organization even if it has short-term negative impacts for them.

Leaders must establish their vision and goals and then hyperfocus on delivering results. We are hired by companies and clients to deliver progressive results. Our success is measured by these results we deliver which brings the whole enterprise forward.

Challenge the Status Quo Never be afraid to question the status quo! As Rene Descartes said, “We must examine most closely those things we hold most dear.” A strong leader always practices this and encourages their teams to do the same thing.

If you deter change by always fighting it, teams become complacent and scared to question things. We should encourage strong questioning and pushing for change, which is how we get better and move the organization forward.

We can all personally get stuck doing things the same way we have always done them. If we do not encourage the influx of ideas and critical feedback from our teams we will never learn or innovate. Just think, if no one questioned the status quo when it came to listening to music, we would still all be listening to records rather than having thousands of songs at our fingertips.

Nothing is sacred. When we question the status quo, we either strengthen the reasons why we are doing something or we develop a better, easier, faster, and/or more profitable way to do it. This is what change leadership is all about!

Focus on Problem Solving and Results We are asked every day, whether by our companies, firms, or clients, to not only find problems but to also solve them.

In order to be an effective leader in any role, we must 12

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constantly be looking at things analytically and determine ways to solve the problems our organizations face and push things forward.

We must think long-term and define what success looks like for our teams. This allows team members to know what they are striving towards and engage with the overall mission of the team. By aligning our goals and defining success, we can measure ourselves and confirm we are meeting the expectations of the organization and our clients all while driving the change that is needed.

In addition to solving our stakeholders’ problems, results matter! Leaders must establish their vision and goals and then hyperfocus on delivering results. We are hired by companies and clients to deliver progressive results. Our success is measured by these results we deliver which brings the whole enterprise forward.

Change leadership skills and competencies are not bestowed upon us naturally; we are not born to lead but rather with the capacity to learn to lead. Put yourself in situations to learn and practice these vital leadership skills whether it be at home, the office, or in the community.

It is our jobs as leaders in the accounting industry to challenge the status quo. As CPAs we have a tendency to get entrenched in the accounting side of things but we must build an environment where our clients and business peers see us as a resource and strategic business partner. We must build the conditions where our teams will take a holistic approach as there is nothing more valuable that we can do as a profession than to be seen as a resource for our business partners. This will lead us to drive the change and value that only we as CPAs can provide. ■

Nick Fuoco, CPA is the Vice President of Finance of Nicholas and Company where he oversees all accounting operations, financial reporting, budgeting and forecasting and tax. He serves on the UACPA's BAM Council and is on the board of the Italian American Civic League. He received a Bachelor's in accounting from Westminster College and MBA from the University of Utah.

Individuals selected to join the 2016 Leadership Academy will meet several times throughout the year before and after the retreat.

Tuesday through Thursday, Nov. 1 - 3 Two and a half days are dedicated to leadership training, mentoring and networking with the Leadership Academy in Deer Valley. A half day is also spent working with Junior Achievement.

CPE Credits: 24 Where: Silver Baron Lodge, Deer Valley, Utah $112 Room Rate for Academy Participants (Use code UACPA when making reservations); Suites available for an additional cost.

Fee: $1150 (Includes Opening night reception, meals, and 24 hours of CPE Credit) Eligibility: New CPAs with a minimum of 3 years of professional experience who are UACPA Members Attendees: 20 professionals will be selected from the pool of applicants. Nominations can be submitted by employers, professors, state society representatives, or mentors. Individuals are encouraged to apply on their own.

Application & Nomination Deadline is July 20, 2016!

Find the application online at www.uacpa.org/leadershipacademy

2016

l e a d e r s h i p a c a d e my

Details for the 2016 Leadership Academy

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by the

Numbers

These numbers reflect the participation in the UACPA's Leadership Academy.

Leadership Academy

4

Number of years the UACPA has held Leadership Academy

68 6,570

Number of individuals who have participated in Leadership Academy

Elevation (in feet) of Deer Valley where Leadership Academy is held

3 14

Number of elementary schools where Leadership Academy participants have taught students financial literacy through Junior Achievement the journal entry | July 2016

20

Maximum number of attendees selected each year for Leadership Academy

To Thine Own Self Be True Finding authentic leadership in difficult situations

By Matt Ferguson, CPA

I

t pains me to have to do this,” Mike’s supervisor, Desiree, said to him after calling him into her office to administer discipline. It was a lie! It was two lies. One was that she had to do it and the other was that it caused her pain. On the contrary, Mike was sure it gave her great pleasure. This chastisement occurred in the presence of a self-important, brown-nosed co-worker, Kim, who must have taken satisfaction from it as well.

ethics, and organizational behavior. Although the names have been changed, I relate this series of actual events as an anecdote that can be applied to virtually every office environment. First, I will examine Mike’s “reality” and question its truthfulness. Then, I will explore compounding factors of distrust, disrespect, and poor judgment.

Finally, I will recommend character traits that will help us to be more honest with ourselves and others.

But wait. Is that libel? Am I lying? By only sharing Mike’s side of the story, am I just misrepresenting the real truth?

Is there a “real” truth at all or are there multiple truths?

Is it a matter of fact or opinion? Mike’s opinion is that his boss was unethical by using power in authoritarian and coercive ways. On the other hand, maybe Mike just couldn’t “cut” it so he shifted the blame onto someone else. There are always two sides to every story, but even if the majority only knows and/or believe one side of it, that doesn’t necessarily make it so.

To Mike, the situation of facing discipline came as a complete shock. He felt that Desiree was painting an inaccurate portrait of him, but was that feeling inaccurate? He thought he had a decent reputation but maybe he was fooling himself. He had more than a decade-long history of positive evaluations and a number of promotions to positions of increasing responsibility, but maybe those things don’t really mean anything. After all, he had witnessed jerks being promoted in the past and most of them seemed oblivious to their own ineffectiveness.

Therefore, was Mike in denial too? Did he really deserve his supervisor’s disciplinary approach? Did he really do such a bad job? Was he really a “bad” employee? Was he

Mike’s account can be used to illustrate how skewed perceptions lead to management failure in leadership,

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To Thine Own Self Be True rationalizing inappropriate behavior or was he being held to unrealistic expectations? Did he minimize his own mistakes and scapegoat others for his failures?

This new paradigm triggered deep self-reflection for Mike and left him with a lot of unanswered questions. He sought some objective guidance from Human Resources, but all they said was that discipline is not so uncommon and not to let it bother him. In fact, as things got worse, HR said they simply “couldn’t get involved.”

They brought in a consultant who led a discussion about how everybody has a different "Truth" as a result of numerous variables including different upbringings, diverse value systems and contrasting points-of-view.

Adding to Mike’s confusion was a lesson upper management wanted staff to learn about tolerance and understanding of other people. They brought in a consultant who led a discussion about how everybody has a different “truth” as a result of numerous variables including different upbringings, diverse value systems, and contrasting points-of-view. Mike could appreciate the importance of avoiding narrow-mindedness. Still, this philosophy of allowing a person to change truth based on his/her own views didn’t resonate well with him. If everyone has his/ her own “truth,” then what’s to stop someone from mistreating someone else? “Sorry, but my reality is that I’m not really being mean. You need to respect my truth.”

Desiree apparently didn’t learn much from the workplace training either. She essentially ignored Mike’s truth that he had a difficult time coping with her constant criticism and disrespect. By creating an unsafe — even hostile — work environment, she generated the decreases in Mike’s productivity for which she was now disciplining him. The “evidence” she was choosing not to see (or consider) was that Mike couldn’t eat or sleep, his weekends were filled with anxiety, and he was frequently utilizing the Employee

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Assistance Program (EAP).

Incidentally, the EAP counselor was on his side and agreed with Mike’s version of what happened. He said, “There are a select few, but most people don’t thrive in punitive environments. Rather than motivating people to excel, it usually prompts them to give up or leave.”

The counselor’s interpretation of the circumstances was reasonable. Nevertheless, by policy, anything said in a confidential therapy setting was inadmissible as evidence in employee grievances. Besides, isn’t it a therapist’s job to be on his client’s side?

Mike tried sincerely to make amends with Desiree (although without “witnesses” such as Kim). These efforts were trampled, resulting in the complete eradication of respect and trust, without which, a healthy relationship is impossible. It’s like when a car is totaled — you could put a lot of money into it to make it run, but it’s not worth it when you can buy a brand new car for much less money and hassle. To extend the analogy, suppose the car still runs, but now the bridge over which it travels burns down.

If you live in the accounting world, you may apply a costbenefit analysis to this type of scenario by asking, “Do I really want to spend the time, money, and trouble it takes to rebuild the bridge or even to go the long way around the ravine?” In Mike’s situation, he was able to excuse Desiree’s behavior up to the point when he began to doubt the benefit of giving her the benefit of the doubt.

Seeing the crumbling “infrastructure,” Mike approached the Director, Greg, to discuss what was happening before the friction escalated. Greg shared how he had a “bad” boss but he was able to eventually make things better through prayer and introspection. This attempt to empathize was marginally comforting at the time, but it was also a lie because his actions weren’t congruent with his words. He ignored Mike’s problem, “hoping things would just get better.” When the discord got out of hand, Mike appealed to him again. This time Greg had a different face; he seemed proud of his track record of denying such appeals, a bias which ultimately led to his unfavorable decision. “This is the least favorite part of my job,” Greg declared. There was definitely some truth in that, but the statement was spoken with contempt for Mike, as though Mike were the cause of his discomfort. Mike was the symptom of a misdiagnosed disease.

Mike asked Greg to speak with others in the office who also suffered from the low morale caused by Desiree’s favoritism, relentless fault finding, and inability to listen.

Unfortunately, Greg chose to only seek feedback from sources that would corroborate his version of the “truth.”

So Desiree’s “leadership” inaction combined with Greg’s leadership inaction led to discrimination (“discrimination” as in “prejudicial treatment,” “unfairness,” and “intolerance,” not the discrimination between right and wrong).

The “tone at the top,” Mike learned, was that workplace bullying was not only allowed but condoned, as long as it couldn’t be tied to any of the federally protected classes or categories. He came to the conclusion that he could no longer work under such adverse conditions.

Given that people see things differently and that everyone’s perspective is limited to some degree, how can we arrive at the true truth? For starters, I think we have to avoid the extremes of blinding pride and false humility on the personality spectrum. On the one extreme, wellintentioned feedback is met with defensiveness (e.g., “I am not a micromanager! Now go and format that spreadsheet the way I told you to do it!”). Managers are especially susceptible to blinding pride because of their power within the organization. They lose credibility with employees by treating them as “subordinates.” In other words, superiority in position may precipitate superiority in attitude.

Managers are especially susceptible to blinding pride because of their power within the organization. They lose creditbility with employees by treating them as "subordinates." In other words, superiority in position may precipitate superiority in attitude.

On the other extreme is a false concept of humility characterized by lack of confidence or constant self-depreciation (either by straight-line or accelerated methods).

Far from feeling that they are better than others, falsely

humble people needlessly put themselves down. Even their attempts to praise others can be awkward: “You are so much better than I am. Boy, I am a loser compared to you.” To move toward the healthier middle section of the spectrum, proud people should look for more good in others and self-loathers should look for more good in themselves. As the saying goes, people typically see only what they’re looking for.

In addition to being wellbalanced, truth-seekers need to cultivate genuineness and courage. Genuine people try to keep their thoughts, words and actions in proper alignment at all times and in all places.

In addition to being well-balanced, truth-seekers need to cultivate genuineness and courage. Genuine people try to keep their thoughts, words, and actions in proper alignment at all times and in all places. Misalignment leads to loss of integrity, hypocrisy and, well, lies. For example, some people say, “I don’t like to mix my personal life with my business life.” Guess what? Everyone only has one life.

To the extent that people change based on their surroundings or constantly try to keep their different “worlds” from mixing, they’re being duplicitous. In “like” manner (pun intended), overly rosy self-portrayals on Facebook often distort the truth. You could ask yourself, “How many of my ‘friends’ are really friends?” Keeping secrets, purposely omitting relevant information, manipulating, and gossiping are all signs of inauthenticity.

Courageous deeds such as rescuing a person or saving a life are heroic and warrant recognition. However, true courage is more than just doing the right thing during a crisis. It’s about doing the right thing, period. This is particularly true when the aftermath of a decision has real or perceived negative consequences. While it may be easier to “sweep problems under the rug” for the sake of politeness, political correctness, avoiding embarrassment, or cowardice to stand up for what’s right, by doing so, we’re

the journal entry | July 2016

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To Thine Own Self Be True

Get Published in The Journal Entry

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

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not being true. It may take courage to oppose those who impose their false versions of reality onto us. Similarly, it takes guts to look introspectively to shed the facades, justifications and self-deceptions we may have placed upon ourselves.

Developing these traits isn’t easy because nobody is perfect.

However, if we see truth as external (not internal), we can search for it outside of ourselves and then internalize it; not the other way around. When we find it, we should stick to it. This concept is quite pertinent in light of the State’s increased emphasis on continuing professional education in ethics. As CPAs, we’re dedicated to upholding the highest standards of integrity with an “unswerving commitment to honorable behavior” (Preamble to the AICPA Code of Professional Conduct). This doesn’t mean bringing the standards into conformity with our views. It means avoiding “any form of action or communication which is false, misleading, deceptive, or fraudulent” (Utah Code Title 58 Chapter 1 Part 5 Section 501 (2), emphasis added).

In conclusion, how does Mike’s story end? Had he continued the appeals process, he might have won or he might have lost. The final verdict on his guilt or innocence depends on your viewpoint. The evidence that he no longer works there either proves that he was a bad employee or that the work environment was unhealthy. Regardless, his departure was mutually beneficial and those former associates are simply no longer a part of his life, except as a memory. Mike’s experience was traumatic, but he learned from it and moved on. Reflecting back, he hopes he was being true.

“This above all: To thine own self be true” (Shakespeare’s “Hamlet”). As Polonius famously advised his son, be true.

I hope we will all have the genuineness and courage to do so. ■ Matt Ferguson is a Financial Manager, CPA, and MBA. He works for the State of Utah Department of Public Safety, Division of Emergency Management.

He can be reached at mattferguson@utah.gov.

Hands, Head and Heart: Engaging Young Executives

Discover the Benefits of tapping into emotional capital

By Dan Griffiths, CPA

This article originally appeared at www.UtahBusiness.com

J

ack Welch, former General Electric (GE) CEO, related the following: In the 1990s, GE created a program to solicit feedback from employees at all levels of the organization. Afterward, one of the factory workers commented, “For 25 years, you’ve paid for my hands when you could have had my brain as well — for nothing.”

As business leaders, we lend our hands and heads to our employers every day. We’re used to tapping intellectual capital, but we often overlook the power of “emotional capital.” One way of tapping that emotional capital is figuring out how to engage the hearts of your young executives in pursuit of larger goals.

Why Engage the Heart?

be easier? Perhaps, but employee engagement research performed by Gallup is compelling: Organizations with engaged employees outperform their competition by a wide margin. Truly successful organizations enjoy a sustainable competitive advantage when they figure out how to engage the heart of each employee. We don’t just need their head and hands — we need their creative passion and ideas.

The Ultimate Buzz Kill How do we get our younger team members to engage with passion? Most of the tried-and-true hierarchical tools — fear, incentives, intimidation or positional power — simply don’t work with this generation. By definition, discretionary effort must be offered voluntarily, not through coercive means. Passion simply cannot be conjured up with just the right mixture of carrots and sticks.

To some extent, don’t we just want people to put their heads down and get their work done? Wouldn’t that the journal entry | July 2016

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Hands, Head and Heart: Engaging Young Executives

Catch People Doing Something Right Few things are more engaging than the feeling that we are making a difference. How do we help our staff connect the work they do with the difference it makes for clients, their team members and the company? Use staff meetings to share stories of client successes and highlight how everyone’s work contributed to those successes. Be sure to talk about the real people impacted, not just the business entities. Even when it may be difficult to connect their work to the difference it makes for clients, help them see how their work positively impacts other team members.

Make sure they understand how their work fits into the overall process and into the work of others at the firm.

Model Innovation According to Deloitte’s Millennial Survey, young professionals highly regard creativity and innovation.

What are you doing at your company or organization to show that you’re willing to innovate? Do you embrace new technologies? Have you embraced social media? Are you staying on the leading edge of innovation in clientservice offerings? Do the people at your firm feel like they’re helping to lead change in your industry?

Loosen Your Tie This is the “open source” generation. Young executives are very willing to work together. They understand that collaboration and sharing create far more value than erecting barriers to idea sharing. In some cases, this means we need to consider changing older models that may control and restrict the flow of information. The biggest risk of all is playing it safe! Simply put, you will need to reinvent outdated models that restrict the flow of information.

Share Your Knowledge and Perspective Young executives are hungry to learn from their experienced colleagues. During a discussion on succession planning, I heard a young man make this comment: “We’re not trying to kick you out. We just want

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to be sure we’re ready when you decide to leave.” To be fully engaged, young executives need to feel you have an interest in their career development and are open to sharing your wisdom. What is your firm doing to transfer knowledge and perspective from older partners and staff to the younger generations?

Seize the Day, Seize the Future Let’s contrast two approaches: Problem focus — Our firm has a problem with engaging our younger team members. What should we do to address this?

Opportunity focus — We have an opportunity to tap into the passion of young executives at our firm. What’s the one change that would make the biggest impact on engaging them?

It’s in our natures. Our society focuses on problems.

We’ve gotten very adept at diagnosing what is wrong.

But does that really get us to where we want to be?

Problems weigh us down. Opportunities engage our hearts. What are you doing at your firm to stay focused on opportunities?

It’s time to tap into the latent emotional capital in our companies and organizations. Think of the legacy of opportunities you can offer the rising generation. What will you do to engage your young executives? The future depends on it. ■

Dan Griffiths, CPA, CGMA is the Director of Strategic Planning at Tanner, LLC. Dan is a graduate of the 2010 AICPA Leadership Academy and in 2011-2012 served as the chair of the Young CPA Network Committee for the AICPA. Dan has been active with the UACPA and has been nominated to serve on the AICPA board of directors.

golf tournament wednesday, august

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Time: 7:30 a.m. Shotgun Start Location: Bountiful Ridge Golf Course, 2430 S. Bountiful, Blvd.

Fees: $450 per team; $115 per individual Lunch & light breakfast included Grand Prize: $800 Gift Certificate to Columbus Travel

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the journal entry | July 2016

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Ransomeware and Cyber Risk Management An Ounce of Prevention is worth a pound of cure when it comes to protecting your data.

By Ash Noah, CPA, FCMA, CGMA and VP

By Randy R. Werner, CPA of CGMA External Relations, AICPA

R

ansomware and cyber extortion represent one of today’s more malicious types of hacker attacks.

It sneaks into computer systems, encrypts files, and demands a ransom before decrypting the files. A major problem is that ransomware does not always decrypt files even after the ransom is paid. Being prepared and taking precautions against cyber risk exposures such as ransomware is therefore essential. Otherwise, you’re at the mercy of criminals who prey on unprepared and unsuspecting businesses and individuals.

ransomware is technically advanced and has no known fix, except for the victim to rely on current backup files.

Ransom demands range from a few hundred dollars to several thousand, depending on the size of the victim.

Not all ransomware attacks are reported to authorities, so estimates of the total amount paid over the past few years vary widely, ranging up to $300 million. The more notorious names among ransomware are CryptoLocker, CryptoWall, TorrentLocker and Locky, among others.

Some attacks rely on software that now has known fixes, so a solution might be found online. However, other

Even with backup files in place, a firm may still spend many hours gathering, re-entering and reconstructing data. Rebuilding work, such as tax returns based on the backups, also takes time. If personally identifiable information is involved, such as Social Security numbers, the firm might also need a professional risk assessment to determine its legal responsibilities.

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The primary defense is to institute frequent backups of the files you do not want to lose. Some ransomware even seeks out backup copies of files, so best practices include creating multiple backups in different locations.

Cloud services, or remote backup services, and external or USB hard drives are options to consider for multiple backups.

Such losses can sometimes be avoided by creating user awareness and training everyone in your firm to be

Cyber Risk Management extremely cautious about unsolicited or questionable attachments or hyperlinks in email messages. Training can broaden your firm’s prevention IQ. It also never hurts to call or contact senders to ask if they sent you a document before you open it. Sometimes ransomware enters a computer system via innocuous-looking Word or Excel documents. There’s a reason why people say, “An ounce of prevention is worth a pound of cure.”

strictly necessary. Excessive rights and activities can allow malware to do extra harm and lead to large losses of data.

•

Apply all software security updates to your computer. Once a software vulnerability is identified, most software companies automatically issue software updates. If the software you are using does not have an automatic update feature, develop a business practice to check for latest updates.

•

Antivirus software is a must. Antivirus companies constantly update virus definitions to defend computers against new threats, and for the most part these software updates are seamless to the user. Most antivirus software includes spyware, adware and email attachment protection. If not, they should be deployed along with antivirus software.

•

Consider cyber insurance. Coverage for extortion expenses incurred as a result of a credible cyber extortion threat is a good feature, but remember that paying a ransom does not always decrypt files.

Loss Prevention Tips •

•

•

Create backup copies of all important data and information on a regular basis. The frequency of backup depends on how often your data changes, and the impact on your business if you lose the data between the last backup and the time of loss. Store and secure backup copies away from your office location and use encryption to protect any sensitive information about your firm and clients. Regular backups better ensure that critical data is not lost in the event of a cyberattack or physical incident such as a fire or flood.

Do not open attachments or hyperlinks if you did not request them or if the e-mail is suspicious or questionable. Do not follow instructions to “enable macros” or “enable content.” Many attacks appear to come from a trusted source or someone you know, as part of a social engineering scheme. A scheduled event, travel plans, or user interests can be used to create what looks like a legitimate document, employing logos and brands to deceive users into performing an action such as opening a document, clicking a link, or changing a password. The action then enables a hacker to commandeer accounts and launch attacks. By hovering your mouse over a link, without clicking it, you can check the address for the website. If the address is for a different website, that’s a big red flag, as is a misspelled link.

Strictly define user permissions and restrictions so that users don’t have any more rights or access to a program or system than they need, also known as the “least privilege” concept. The same applies to administrators, who should not stay logged in as an administrator any longer than is

With more devices becoming connected to the internet, it’s important to take steps toward avoiding cyber threats such as ransomware. Have a plan in place for mitigating threats and risks. If and when you are hit by a threat, you’ll at least be in line with the Boy Scout motto, “Be prepared.” ■

Randy R. Werner, J.D., LL.M./ Tax, CPA is a loss prevention executive with CAMICO (www. camico.com). She responds to CAMICO loss prevention hotline inquiries and speaks to CPA groups on various topics.

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Top Five Challenges in Practice for 2016

By Randy Johnston

T

he 3rd Annual Accounting Firm Operations and Technology Survey (AFOT Survey) revealed the top challenges faced by your accounting and tax practice peers, including: • Recruiting and retaining staff • Workflow and efficiency • Change • Archiving and retention of email • Attracting new clients

Recruiting and Retaining Staff

More than 60 percent of all practices are challenged with recruiting and retaining staff. The demand for qualified graduates has outpaced supply since 2000; a trend that is anticipated to continue for the foreseeable future. The AICPA also estimates more than two-thirds of its members will retire in the next 20 years. Although the issue of recruiting and retaining staff will continue to plague the profession for decades, there are steps you can take to attract and retain staff.

Several factors impact how attractive a practice is to a candidate, many are necessary to create an environment in which a new hire can succeed. The firm that best addresses these factors is more likely to attract and retain new staff than a firm that hasn’t.

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By RAndy Johnston

For example:

• Modern technology (e.g. digital workflow within the firm and with customers versus paper or paper-folder driven documented systems and processes) • A learning culture • Involvement in change management • Mentorship programs • A clear career path

Workflow and Efficiency

For three consecutive years, the results of the AFOT Survey indicate practitioners have ranked workflow and efficiency as significant concerns.

Using a carefully deployed workflow solution is the most common catalyst to begin managing firm-wide efficiency.

Efficiency refers to how well we use technology and human resources; it is measurable. Improvements to efficiency cannot be recognized without meaningful measurement.

The best way to improve efficiency is to identify the metrics used in the practice today to measure activity you wish to improve before you change how you do something. With efficiency measurements in hand, the amount of resources necessary to accomplish work today can be measured and later compared to results using new tools, systems and processes.

Top Five Challenges in Practice in 2016

Change

Practitioners continue to express frustration about change.

Primarily, practitioners are bothered by having to keep up with changes to software and systems and have difficulty of keeping staff and partners on board with change. The frustration with change is understandable; it is considered common to find 45 to 75 software applications being used in a practice throughout the course of a business year. Some require multiple updates annually and many can change their interface which impacts how easy it is for you to find buttons, menu selections and shortcuts. Keeping pace with change with your existing software applications can be exhausting.

If workflow efficiency is a priority, staff and partners should document a standardized way of getting work done firmwide. The biggest change with workflow happens when workflow software is first adopted as everyone works together to adapt to the firm’s way of getting things done. Later, you should expect only small adjustments to process as the system matures in a firm.

Archiving and Retention of Email

Practitioners report archiving and retention of email as a top challenge. To better understand why this has become a leading challenge, consider how messages from clients were handled before email became prevalent. Before email became a common way of handling communication with clients, working professionals had one or more layers of filters keeping an external contact from immediately reaching them.

For example, phones may have been silenced, calls routed through a receptionist and snail mail was sorted and prioritized. Technology — including email — began creeping into our business processes without considering how we would let it [email] change the way we work.

By accepting email as a means of communication, we gave permission to the world to reach us instantaneously; we reinforce and affirm that permission when we allow email to manage us rather than us choosing how to leverage email as a business tool.

To take back control of your schedule, consider these email management pointers: • Turn off the new message notification in your email software and make your calendar your default view; • Decide the window of time each day you want to spend processing your email; and

• Move everything in your Inbox to an age and delete folder.

• Process your Inbox during the times you choose by evaluating each message only long enough to delete it or delegate. Remaining messages will be either, 1) tasks you can handle immediately, in less than two minutes, or 2) things that require more time and therefore should be scheduled.

Attracting New Clients

It is common to hear shareholders talk about adding clients and staff to increase gross revenue by increasing total hours billed. Adding more clients may cause bottlenecks and slow your team down if processes and technology are not addressed. Important refining questions include: • Could we better serve existing clients and better leverage those relationships with value billing?

• Will our existing systems and processes scale well as we grow?

By implementing integrated workflow and document management tools, you’ll create time to better engage the clients you have today, compete for and retain staff, and add new clients with the confidence of knowing your systems, processes, and culture are ready to support growth.

So What to Do?

Determine the changes you’d like to make. Consider how you will change processes. Look at system changes you can make with workflow and document management tools. Select, implement and train everyone on the new tools. Finally, look at the results, adjust to improve and retrain. Continue this cycle over a period of years, and you’ll be amazed at the difference in realization, team member satisfaction, client satisfaction and partner profitability. ■ Randy Johnston is Executive Vice President and a shareholder of K2 Enterprises. Randy is also CEO of Network Management Group, Inc. (NMGI). If you have questions on any hardware, software, procedures, or IT strategies, contact helpdesk@nmgi. com with your questions or to schedule a time to speak. the journal entry | July 2016

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Photos, Leadership Council

Spring Leadership Council was held June 3 at the Little America Hotel. Topics discussed include the AICPA joint venture with CIMA, the new ethics requirement and the UACPA's operation plans.

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Photos, BAP Dash, Graduation

The Beta Alpha Psi group at the University of Utah held the inaugural BAP Dash 5K on April 2. Susan Speirs presents the Outstanding Student Awards to Amram Musungu at Westminster and Chelsea Hepworth at the University of Utah.

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Meet the Executive Board

Q: Who comes to mind when you think of a great leader and why?

Hollie Andrus, CPA President

Gavin Hutchinson, CPA President-Elect

A few years ago my office participated in a leadership training and I was asked this question. My first thought was "Yoda."

Our instructor was a bit surprised, but, think about it? He may not have looked like a powerful leader yet he was wise and humble. The power and influence Yoda had was much more than "the Force."

When I think of a great leader, my thoughts turn to Nelson Mandela because he quietly led and at great peril to his own life and safety. A great leader is one who puts the greater good above themselves. Mandela was imprisoned for 27 years in his effort to end apartheid and in doing so remained committed to his beliefs.

Matt Klein, CPA Vice President

Jay Niederhauser, CPA Treasurer

A great leader inspires people to follow them and do their best — they lead. A manager just follows up on tasks and keeps things moving. George Washington and Abraham Lincoln had the ability to stretch people beyond what they thought their capacity was. They helped everyone around them to be better.

One of the greatest examples of leadership is that of Nelson Mandela because he lead by example. He said, “It is better to lead from behind and to put others in front, especially when you celebrate victory when nice things occur. You take the front line when there is danger. Then people will appreciate your leadership.”

Josh Turnbow, CPA ProNet

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Sherie Charlesworth, CPA Secretary

Abraham Lincoln was a great leader in two aspects. First he was able to push forward doing the right thing in the face of opposition; second, he establish a reputation of integrity with those whom he led.

I think Ronald Reagan was a great leader.

He was very optimistic and positive, he managed to reach across the political aisles.

He made things happen that improved America.

Dan Griffiths, CPA AICPA Council Representative

Jonyce Bullock, CPA Immediate Past President

I define leadership as the capacity to influence human thought, emotion and behavior, starting with my own. By that definition, Ghandi makes the top of my list. The quiet strength and determination that allowed him to relentlessly pursue independence for his people and change the course of history is worthy of admiration.

Tony Hsieh of Zappos. The company strategy is to “deliver happiness” — Tony leads the company by working alongside his employees in every department and makes sure that everyone is focused on the culture that supports Zappos end goal of delivering happiness to customers, employees and stakeholders.

the journal entry | July 2016

Board Bullets

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

Susan Speirs, CPA CEO My grandmother was a great leader. She was a teacher who took time to teach inner city school children how to read during a time of segregation. She inspired them to rise above their circumstances. She also taught by example that as long as you serve others, you will never do without.

Owen Ashton, CPA Member at Large Richard Weggeland, my Scoutmaster in my youth. He loved and really cared about each young man — including me. He spent significant time with us doing meaningful things. It really impacted my life. It’s easy to forget in the rough and tumble of business that genuinely caring about those we lead is crucial to achieving our goals.

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Matthew W. Klein, International Controller at Lifetime Products, was nominated and approved to serve as Vice President. Matt has served on the ProNet Council and BAM Council

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Board members were assigned as liaisons for chapter, committees and council to help members as they engage in their various roles and duties.

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The operations procedures for the strategic plan was rolled out by staff members. Amy Spencer will take the pillar of engaged membership. In 2016 we will be conducting a member survey with help from Larry Deppe. The survey will be compared with those completed in 2012 and 2008. Braden Thompson will take the pillar of membership growth with efforts being focused on member retention and engagement. He will continue to strengthen the campus ambassador program and our ProNet Council. April Deneault will continue to focus her efforts on CPE. With the addition of the new ethics requirement, time will be spent creating a one-hour webinar that will focus on the Utah laws and rules to be rolled out in October 2016. Susan Speirs will take on the pillar of advocacy with efforts being focused on strengthening relationships with our state and local government leaders, Department of Occupational and Professional Licensing and concerns of members across the state.

•

Leadership Council was held June 3, 2016 at the Little America.

The AICPA joint venture with CIMA, with regards to the vote, was discussed at length with Dan Griffiths presenting reasons to vote “yes” and Mac Curtis discussing reasons to vote “no.” Members of Leadership Council were encouraged to vote and to encourage their peers and colleagues to vote. Carey Woolsey presented insights regarding the new CPE requirement for ethics for CPAs and issues the State Board of Accountancy would like us to include in the one hour Utah Laws and Rules. Participants were asked to provide feedback as to course outline, possible instructors and fee structure for nonmembers.

Not Pictured: Brett Hugie, CPA, Member at Large the journal entry | July 2016

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Meet the UACPA Staff

Q: Who comes to mind when you think of a great leader and why?

April Deneault CPE Manager I think of Dr. Martin Luther King Jr. His "I Have a Dream" speech brought awareness and humanity about civil rights to America.

His stance on political activism in a nonviolent way made him a natural leader and an inspirational figure.

Braden Thompson Membership Development Coordinator I like Joshua Lawrence Chamberlain. He was a professor during the American Civil War who joined the Union Army. He worked his way up from the bottom and later led a bayonet charge on Little Round Top, which is believed to have been a big reason the Union Army won the battle of Gettysburg.

Amy Spencer Marketing & Communications Manager I like contemporary leaders like Bill Gates who turned his passion into success in business then turning that success into philanthrophy and Malala Yousafzai for her courage when gender and age worked against her. Both lead from the trenches and empower others.

Tom Horn Financial Director Bill Gates is one of the most generous billionaires in history. He’s always been committed to giving back. He and his wife run the Bill and Melinda Gates Foundation, which works on improving education in the U.S., fighting infectious diseases and improving the food supply around the world.

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Nominate a Great CPA

The UACPA Awards Task Force wants your help in selecting members who deserve recognition at our annual awards banquet.

Please nominate the UACPA members who consistently go above and beyond what is necessary to serve their clients, employers, employees and communities.

Please fill out the brief nomination form online at www.uacpa.org/nominate.

All nominations should be received by July 20, 2015.

Award Categories Distinguished Service Recognition of superior professional competence, leadership and meaningful service.

Outstanding CPA in Business & Management Honoring significant contribution to the leadership of the profession through superior competence and positive change.

Outstanding CPA in Public Practice Honoring significant contribution to the leadership of the profession through superior competence and positive change.

Outstanding Leadership Council Member Recognition of service to the UACPA.

Outstanding Educator Given to a full-time college accounting educator in recognition for superior performance and demonstrated high ideals.

Rising Star Individual who exemplifies excellence and dedication to the UACPA and profession Women to Watch: Experienced Leader Recognition of a professional who has advanced to a higher level or leadership position — including partners, owners, executives and elected officials.

Women to Watch: Emerging Leader Awarded to a professional who has made significant contributions to the profession and her community, but who has not yet reached the highest levels of advancement.

Nominate a CPA to be honored at www.uacpa.org/nominate

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Business & Management Conference September 16, 2016

The annual Business & Management Conference gives CPAs a full-day of learning about relevant topics. Ash Noah, Vice President of CGMA External Relations at the AICPA will be a keynote speaker and speaking about the AICPA's joint venture with CIMA. Time: 8 am - 4:25 pm Location: South Towne Exposition Center, 9575 South State Street Fee: $248 for UACPA Members before Sept 2; $275 after; $335 for nonmembers CPE Credit: 8 hours

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MEet a uacpa member

Five Minutes with Roger Mann As the son of a cowboy, Roger Mann, CPA spent much of his youth on a horse, mostly team roping. He was also involved in wrestling, track, falconry and other outdoor activities.

Following his mission in France and Belgium, Mann received his accounting degree and MBA from the University of Utah. He examined banks for the OCC and later moved to Cache Valley, then to Central Pennsylvania, and then back to Cache Valley.

What led you to become a CPA? Walking out of a test in my first accounting class, I overheard people saying how confusing the test was, but I thought it seemed pretty straight forward. That’s when I started thinking accounting might work for me. However, I took a long route to getting my CPA and didn’t take the test until nine years after graduating, which I would not suggest to anyone.

What have been your proudest moments as a CPA? One of the best things I’ve done professionally was move to the other side of the country.

That turned out to be a great thing for my family and for my career. It’s a big, beautiful world out there and you won’t die if you go try it out; however, we are glad to be back in Utah.

What do you like doing outside of work? I’m big time into mountain biking. Cache Valley has many great trails as does the rest of the state. My favorite multi-day ride is the White Rim trail in Moab, which I’ve ridden many times. I also like anything outdoors that I can talk my kids into doing with me.

What would surprise people to know about you? Excluding Sundays, I have a very long, unbroken record of daily, outdoor workouts, either biking, running or hiking. If you know Cache Valley winters, you might find this surprising. I attribute this long streak to a good fitness tracking app and kids who are old enough to get themselves to school.

What are some of your goals as a professional? As a CPA in industry, I am always trying to present information in clearer and faster ways.

I want the reporting and advice coming from my department to help keep the company safe and growing.

What would you be doing if you were not a CPA? I would love to teach middle school and help kids through that difficult time. I had some great teachers at that age and it made a big difference.

What advice do you live by? Clinton Duffy, a prison warden known for his rehabilitation efforts, was told, “You should know that leopards don’t change their spots!” Duffy’s reply was, “You should know I don’t work with leopards. I work with men, and men change every day.” I believe in people’s ability to change and move on. ■ the journal entry | July 2016

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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

Vendor

Member Fee*

NonMember Fee

August 8/23/16

8

Leases: Mastering the New FASB Requirements

Marty Van Wagoner

AICPA

$285

$340

9/8/16

8

Construction Contractors Advanced Issues

Thomas Sheets

AICPA

$285

$340

9/9/16

8

Annual Update for Preparation, Compilation and Review Engagements

Thomas Sheets

AICPA

$285

$340

9/12/16

8

Not-For-Profit Accounting and Auditing Update

Brian Yacker

AICPA

$285

$340

9/13/16

8

Form 990: Exploring the Form's Complex Schedules

Brian Yacker

AICPA

$285

$340

9/19/16

4

Capitalized Costs and Depreciation: Key Issues and Answers

Dennis Riley

AICPA

$170

$195

9/19/16

4

Reviewing Individual Tax Returns: What Are You Missing?

Dennis Riley

AICPA

$170

$195

9/20/16

8

Taxation for Individuals Living Abroad

Dennis Riley

AICPA

$285

$340

9/21/16

8

Audits of 401(k) Plans

Bruce Shepard

AICPA

$285

$340

9/22/16

8

GASB Statement No. 68 - In-Depth Government Pension Accounting & Auditing Seminar

Bruce Shepard

AICPA

$285

$340

9/23/16

8

Frequent Frauds Found in Governments and Not-For-Profits

Bruce Shepard

AICPA

$285

$340

September

9/26/16

8

Technology for CPAs - Don't Get Left Behind

TBD

K2 Enterprises

$285

$340

9/27/16

8

Excel Tables & Data Models - Efficiently Managing Analyzing & Reporting Your Data

TBD

K2 Enterprises

$285

$340

9/28/16

4

Revenue and Cash Receipts: Common Frauds and Internal Controls

Marty Van Wagoner

AICPA

$170

$195

9/28/16

4

Purchasing, Inventory and Cash Disbursements: Common Frauds and Internal Controls

Marty Van Wagoner

AICPA

$170

$195

9/29/16

8

Employment Law Update: Key Risks and Recent Trends

William Murphy

AICPA

$285

$340

9/30/16

8

Payroll Taxes and 1099 Issues: Everything You Need to Know

William Murphy

Surgent McCoy

$285

$340

10/7/16

4

The Most Common Financial Statement and Asset Fraud Schemes: How to Detect and Prevent Them

Marty Van Wagoner

AICPA

$170

$195

10/7/16

4

Interpreting the New Revenue Recognition Standard: What All CPAs Need to Know

Marty Van Wagoner

AICPA

$170

$195

10/11-12/16

16

Annual Accounting and Auditing Workshop

Marty Van Wagoner

AICPA

$460

$550

10/20/15

8

Surgents Individual & Financial Planning Tax Camp

Neil Brown

Surgent McCoy

$285

$340

October

10/21/15

8

IRA Boot Camp

Neil Brown

Surgent McCoy

$285

$340

10/24/15

8

Real World Fraud in Today's Small- to Medium-Sized Entities

Lynn Fountain

AICPA

$285

$340

10/25/16

8

Internal Control Best Practices for Small and Medium-Sized Entities

Lynn Fountain

AICPA

$285

$340

10/27/16

8

Annual Tax Update: Indiviudals and Sole Proprietors

Michael Blackburn

AICPA

$285

$340

10/28/16

4

Health Care Reform Act: Critical Tax and Insurance Ramifications

Michael Blackburn

AICPA

$170

$195

10/28/16

4

Social Security and Medicare: Maximizing Retirement Benefits

Michael Blackburn

AICPA

$170

$195

*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.

34

the journal entry | July 2016

Education & Events Field of Study

Credit Hours Course Title

Instructor

Vendor

Member Fee*

NonMember Fee

November 11/2/16

8

Annual Update for Accountants and Auditors

Marty Van Wagoner

AICPA

$200

$340

11/7/16

8

Applying the Uniform Guidance for Federal Awards in Your Single Audits

James Woy

AICPA

$285

$340

11/8/16

8

Yellow Book: Government Auditing Standards

James Woy

AICPA

$285

$340

11/9-10/16

16

Excel Boot Camp

TBD

K2 Enterprises

$460

$550

11/11/16

8

Advanced Excel

TBD

K2 Enterprises

$285

$340

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

12/5/16

8

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

12/12/16

8

12/13/16

8

December

Robert Minniti

AICPA

$285

$340

Marty Van Wagoner

Surgent McCoy

$285

$340

Corporate Tax Workshop: Get Ready for Busy Season

Bruce Nelson

AICPA

$285

$340

Multistate Income Tax

Bruce Nelson

AICPA

$285

$340

We're going paperless We're Going Paperless

l e digita With th to a shif ting m o o r PA class the UAC , t a m r ss fo ent. paperle movem e h t g ill be is joinin es, we w s s la c 6 class For 201 rials to e t a m l digita ooks sending rinted b p d n a es le at attende availab will be al fee. a nomin

the journal entry | July 2016

35

Learn Leisure

at your

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.

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.

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.

Hertz

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

JoS. A Bank Men's Clothing

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

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.

PUBLIC PRACTICE • Allred Jackson • CBIZ • Cook Martin Poulson • Davis & Bott • Eide Bailly • Hansen Bradshaw Malmrose & Erickson • Hawkins Cloward & Simister • HJ & Associates • Jones Simkins • Mantyla McReynolds • Pinnacle Accountancy Group • Pinnock, Robbins, Posey & Richins • PricewaterhouseCoopers • Savage Esplin & Radmall • Squire • Stayner Bates & Jensen • Tanner, LLC INDUSTRY • LDS Church Auditing Department • Workers Compensation Fund 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 | July 2016

37

ContactList

1

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 deppelarry@msn.com

In Memoriam David B. Smith

Nov. 26, 1942 — Dec. 27, 2014 UACPA Member since 1977

James R. Matsumori

September

March 28, 1951 — Dec. 8, 2015

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

UACPA Member since 1984

Larzette G. Hale-Wilson June 8, 1920 — Feb. 5, 2015

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

UACPA Member since 1975

Classified Ads To place your classified advertisement and reach Utah CPAs, contact the UACPA at mail@uapca.org, Utah Practices for Sale: North/Central Utah Tax Practice - gross $77k; Ogden Area CPA Practice - gross $424K. For more information, please call 1-800-397-0249 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 | July 2016

39

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

40

the journal entry | July 2016