The Journal Entry - October 2019

October 2019, Vol. IV

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New Look for a New Era

The Journal Entry Start Spreading the News

We've Got a New Look

the journal entry | october 2019

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Mission,Vision,Values

ExecutiveBoard

Mission

president.........................................................Monica Gardner

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.

president-elect.......................................... Jay Niederhauser vice president..................................................... Stacy Weight treasurer......................................................Jason Tomlinson secretary............................................................ Troy Runnells member-at-large.................................................. Nate Staheli member-at-large................................................ Tom Colligan

Vision

pronet council................................................ Katie Chandler

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

aicpa council................................................... Brandon Allfrey

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.

immediate past president......................................Matt Klein ceo.......................................................................... Susan Speirs

UACPAStaff

ceo.......................................................................... Susan Speirs

Values

communications/marketing and

Advocacy

cpe manager.......................................................April Deneault

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.

editor of the journal entry......................... Amy Spencer financial director...................................................Tom Horn membership development................................ Tyler Hodges

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.

Professional Community The UACPA reinforces peer accountability to encourage members to maintain integrity and high ethical standards. ​​It provides member-to-member networking opportunities and networking opportunities with other professions. It values belonging to a distinguished organization and believes that we serve as the primary resource and point of contact for Utah CPAs.

Diverse Population Outreach 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.

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

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 positions contained herein. Because of the complexity of tax laws and 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.

Contents October 2019

New Members.......................................................................................... 4

Feature Story

The CPE Journey and a Celebration

CEO's Message........................................................................................ 6 President's Message............................................................................... 7 In With the New........................................................................................ 8

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Celebrate 100 Years..............................................................................11 By the Numbers: Logo Design and Branding ..................................13 Celebrating the YOU-ACPA..................................................................14

By the numbers

Logo Design and Branding

Meet a Member

Rob Anderson, CPA

Mitigating Client's Data Breach Risks................................................19 Legislative Update.................................................................................22 UACPA 2019 Award Winners...............................................................24 How Not to Ruin Your Reputation......................................................27

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Women in Accounting: Kristy Hansen, CPA.....................................30 Meet the Executive Board....................................................................32 Board Bullets .........................................................................................33 Meet the UACPA Staff...........................................................................33 Meet a Member: Rob Anderson, CPA................................................35 Photos: Golf Tournament, Inauguration & Awards Banquet.........36 2019 CPE Course Schedule.................................................................38

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Member Benefits/100% Membership Firms....................................39 Contact List/Classifieds.......................................................................43 In Memoriam..........................................................................................43

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NEW MEMBERS

Congratulations to the following individuals who were approved for membership or affiliate status in the UACPA as of September 6, 2019.

Trevor Frank Eide Bailly, LLP

Weston McCloy Dylan Boren

Parker Walles CliftonLarsonAllen LLP

Utah State University Richard Brandt Jonathan De La Cruz Jefferson Nemelka Shawn Vincent Lee Evans Marcie Harmon Jeffrey Smith Richard Wilcox Jeremiah Statham Timothy Raccuia Michael Zarate Joshua Odei Tiffany Bradshaw Landon Murray Joshua Raney Cameron Maylett Jose Gutierrez Sally Alkhaleel Ryan Ward Thomas Pace Matthew Russell Kyle Cooke Rashid Hossain Erik Burton Kaden Howell Joseph Perkins Randall Funk Scott Sabey Don Zimmerman John Vardell Cory Fugate Rafael Mello De Oliveira Jeremy Pehrson Megan Putnam Chantelle Van Orden Bernadette Bowler Eric Cordner Parker Brower Isaac Hansen William Burton Nathan Tubb Bradley Biddulph Troy Casper

Zachary Lamb Tanner LLC Stacey Reese Intermountain Healthcare Andrew Pollock Integrated CPAs Daria Gusak Andrew Carter Moog Tyler Prisbrey Paiute Indian Tribe of Utah

STUDENTS

Brigham Young University Kurtis Murray Autumn Zobrist Daniel Case Kara Bowers Trang Ta Dixie State University Tamianna Vollrath Grayson Tracy Sarah Ence

Idaho State Univ-Pocatello Josh Egbert University of Phoenix Kinu Tanaka University of Utah Patrick Wunderlich Devon Gethers Cassandra Carvajal 4

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Matthew Green J Daniels Benjamin Lee Spencer Gatten Aaron King David Rees Jared Porter Jordan Smith David Stark Jonathan Hunt Hassan Parthasarathy Dallas Persinger Mitchell Haller Jonathon Bult Stephen Westover Enrique Mora Saucedo Samuel Rockwood Utah Valley University Camille Klemetson Dan Watson Garrett Lee Arlen Card Christine Hannemann Alleen Evanko Caleb Stephens Sam Young Hailey Newman Kylee Woodbrey Addison Brems Weber State University Devyn Vigil Ambrie South Alysja Call Bret Dayley Naheed Davis Landon Farnsworth Western Governors Cristina Venturinelli Kelly Williams Jennifer Donofiro Holly McGraw Sarah Ellis Raphael Ackumey Hannah Okai-Mensah

Caitlin McBride Sibil Iglesias Traci Jimenez Christopher Hughes Heidi Cunningham Matthew Roberts Christy Dohrman Kecia Howell Pamela Murphy Seth Davis Brittany McClellan Brenda Reynolds Kristen Jordan Kimberly Lewis J. Scott Morrison Whitney Black Camisha Brave Matthew Thomas Angela Gurley Karla Brooks Garrett Hill Brandi Burd Alex Wankier Donna Helmig Stephanie Haun Ken McBride Molina Cheek Shelby Milliren Darren Green Misty Pacheco Stacy Mumpower Anthony Esposito Thomas Rowell-Bryant Mark Warren Kimberlyn Scott Jenna Bennett Philip Dobrosky Virginia Daniel Elizabeth Newport Jamie Stevenson Westminster College Samantha Steffensen Amber Lamborn Keith Turner

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CEO'S MESSAGE Susan Speirs, CPA

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low down! We’re running at a ragged pace and are out of breath. Plus, busy season has yet to let up for anyone!

CPA evolution is somewhat like interest; it never sleeps, takes a vacation or even a sick day. Rather, it continues to accrue, gather steam and send those who are unprepared to a part of their career they many not otherwise enjoy.

In our June Leadership Council, we tasked our council members with providing feedback to five principles crafted by NASBA (National Association of State Boards of Accountancy) and the AICPA (American Institute of Certified Public Accountants). Participants were asked to indicate whether they thought the principle was directionally correct and each provided specific feedback. Below are the principles; we would love to hear your thoughts as we continue to have the conversation.

Principle 1: The CPA profession must adapt quickly due to the technological disruptions in areas such as data analytics, robotics, artificial intelligence and more. As such, the competencies, services and attitudes of CPAs need to continually evolve in order to protect the public interest.

While many may express that they don’t see any of this happening at their companies or practices, as CPAs we need to remain ahead of the curve.

Principle 2: The CPA profession and its regulators recognize that technological and analytical expertise is essential to performing assurance work, as well as the other services that are currently, or will be in the future, core to professional accounting.

Many of those in public practice experience their clients being more astute in technology and are often learning from them. Public practice professionals understands that more needs to be invested in technology within their own firms as well as continual education for staff.

Principle 3: People with specific technological and analytical

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expertise who are critical to the performance of core services offered by CPAs should be able to be licensed as CPAs. This includes, but is not limited to, current and future technology/ analytics students as well as non-CPAs working today in CPA firms with such skills that are critical to the performance of core services offered by CPAs. Take some time to ponder this statement. What are your thoughts, and how has your own experience shaped those thoughts?

Principle 4: The CPA profession and its regulators acknowledge that sustaining the profession and continued public protection requires rethinking initial licensure requirements.

This could be the definition of disruption; we’ve held the same model for so many generations of CPAs that we may find it difficult to imagine anything else. How do we wrap our heads around this?

Principle 5: The profession, and therefore entry into the profession, must be redesigned to be inclusive and attractive to individuals with technological and analytical expertise required to perform evolving core services. The changes must be transformational and substantive without disrupting candidates currently in the pipeline.

We have a lot to digest; past generations of CPAs will shape our future CPAs. Our newly licensed CPAs are forging the path for future CPAs. Please let us know what you think — email me at ss@uacpa.org. n

PRESIDENT'S MESSAGE Monica Gardner, CPA

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s I mentioned in my July article, both the AICPA and NASBA are discussing what the future of the profession could look like and are gathering feedback on that topic.

This article is an update on some of the discussion that took place over the summer. You can read the most recent version of the guiding principles, concepts that support the guiding principles, and FAQs as presented by the AICPA and NASBA at evolutionofcpa.org.

The UACPA’s Leadership Council was part of the data gathering process. We met and discussed the guiding principles and submitted our feedback. Here is a quick summary of our discussion. We felt Principle No. 1 was directionally correct and that the profession needs to adapt.

Several comments focused around the word “quickly.” There was concern about forcing change too quickly without caution. One suggestion was to use the word “timely.” It was also pointed out that not all industries or businesses are changing, and they still need old-fashioned accountants.

We also felt Principle No. 2 was directionally correct and that technology and analytical expertise are essential to the accounting profession. Companies may use technology for efficiency but will rely on CPAs for understanding or to issue an opinion. There were also some good questions raised during the discussion. Will technology ever be able to replace the giving of assurance? What if banks relied solely on technology and no longer required an audit? What if the tax code is simplified so that CPAs are no longer needed?

comment was made that the requirements should not be diluted or reduced but also should not be increased by including another section of AI or data analytics. The focus should be on core values and services.

Principle No. 5 was split with a slight majority stating that it is not directionally correct. I think everyone understands the importance of technology and analytical expertise, but we can’t forget the importance of basic accounting knowledge.

There is already a large body of knowledge and it can’t all be absorbed by one person – you can’t be all things to all people.

Even in the current CPA environment most CPAs tend to have an area of expertise. Tax, assurance, industry and even those can be broken out into more detailed specialties.

I read an article that I think touches upon the concerns in principles No. 3 and No. 5. Other professions like law, medicine, engineering, or architecture use support staff to complete their core work, but do not require nor enable them to be licensed as an equivalent like the CPA profession is currently discussing. There are nurses, technicians, While not unanimous, the majority felt Principle No. 3 assistants, pharmacists and others who are part of the was not directionally correct. Many challenged what the medical profession, but ultimately, it is the doctor that statement was trying to say and questioned whether we really makes the final diagnosis or writes the prescription. Rather understand who we are as CPA’s noting we don’t need to call than making everyone a CPA, maybe we just need to revisit everyone a CPA. traditional hierarchical and authority structures within CPA firms to make career paths and compensation plans The majority felt Principle No. 4 was directionally correct more attractive for non-CPAs that provide critical support and that we need to rethink initial licensure requirements. services. n TWhat do those new requirements look like? Overall, the the journal entry | october 2019

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IN WITH THE NEW

THE Utah association of cpas LOOKS TO THE FUTURE WHILE CELEBRATING OUR PAST. By amy spencer

A

s the Utah Association of Certified Public Accountants embarks on celebrating 100 years of serving the Beehive State’s CPA community, it was apparent that it was also time to revisit our professional profile. We have spent several months reflecting on where we have come, not only as an association, but also as a profession and determining where we are going.

The last version of our logo was created in 2007 and showcased the mountain range and spelled out the acronym of our association in a trendy green color. Like the gem-studded True Religion jeans and deep V-neck tees that were popular styles of that year, our image has evolved, and we have outgrown that look.

We’ve shifted beyond the simple lines of the Wasatch range to audaciously represent the way we serve the state. The new UACPA logo is bold, modern, and sleek. It reflects the unity of the organization, while also honoring its connection to the state. The up-trajectory line is a symbol of growth and simultaneously reflects the mountainous Utah landscape.

Our primary logo represents our slick sophistication with three shades of blue. Our color palette embraces the vast spread and diversity of Utah’s terrain through the colors of red rocks in Southern Utah and the hues of leaves changing throughout other regions of the state.

With a design goal to better match us as a profession and the members we serve throughout the state, several committees have been instrumental in providing feedback to settle upon a look that is professional, crisp, smart, friendly and connected. Members of the executive board, centennial committee and ProNet council provided perspective on shapes, colors and what felt like a representation of where we are heading as a profession.

Over the next few months, you’ll see all visuals aligning around this new direction: On the website, The Journal Entry, collateral and the UACPA offices. We are still the UACPA you know and love, but we are looking to the future while celebrating our past.

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The Logo

The trio of bars form the shape of the state represent the dashboards and bars CPAs see in their work

The blue colors are professional, sleek and refreshing

The font exudes a clean, modern and light feel

While the upward trending line indicates growth, the peaks and valleys simultaneously reflect the Wasatch mountain range

The letters spelling out “Utah Association of Certified Public Accountants� have been dropped. We firmly believe we can be identified by our acronym

The Color Palette MIDNIGHT SKY

BOLD BLUE

MORNING SKY

YELLOW

RED ROCK

FALL

Colors are an important part of the UACPA brand. The right color combinations can make a design feel sophisticated while another can invoke feelings of excitement.

The primary brand colors are the three blues.

Yellow, red rock and fall are secondary and will be used to reinforce the new UACPA brand.

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e t a r b e l e

C

0 10

In the summer of 1920, the Utah Association of Certified Public Accountants was formed and now 100 years later, we will be celebrating our centennial with a year filled with events. We hope you can join us in the celebration at one of our many events throughout the year. Some 2020 events include the following: • Special chapter meetings • CPA Week of Service — May

• Celebration Week — July 6 - 10 • UACPA Bees Night — July • Charity golf tournament — August • Members at the movies • 2020 Celebration Gala

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CELEBRATE 100 YEARS The Utah Association of CPAs Prepares for a Monumental Celebration By karen halladay, cpa

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ext year on July 8, 2020, the Utah Association of Certified Public Accountants (UACPA) will celebrate its 100th birthday! Association members are invited to participate in events, activities and celebrations throughout the upcoming year. Details about the birthday and the history of the association will be presented over the next year in The Journal Entry, Utah Association of CPA’s Facebook page and UACPA website.

The Accounting Profession: A Brief History To fully appreciate the 100-year anniversary of the founding of the UACPA, look back at the 4,500 years that the accounting profession has existed and wonder if yesterday’s and today’s concerns are similar.

Research sources indicate that accounting dates back to 2500 B.C. — a time when rulers of ancient empires, such as the Egyptians, kept accounting records for taxing and spending on public works projects. One wonders if they cared about transparency and conflict of interest or held public meetings to discuss and prioritize projects.

In 423 B.C., the auditing profession was born to double check and report on what came into and went out of storehouses. In the 13th century, Italian Republic businesses were the first to require keeping track of daily transactions and credit accounts with other businesses.

Was fraud happening? Why were regulations needed?

Are there that many differences from today, as there is still a need for auditing, regulation and continual process improvement to accounting systems nearly three thousand years later?

In 1494, Luca Pacioli, known as the father of accounting, wrote a book that included the common practices of Italian merchants, including the use of debits (he owes) and credits (he trusts). This double entry accounting system,

still used today, allowed merchants to maintain records which helped them improve their businesses. It does make one wonder, though, as to how inventory was tracked without a point of sale system, how artworks were valued, and how one resolved business problems without email.

As time continued to move forward, the needs of businesses and the purpose of accounting evolved to include securing financing, reducing fraud and scandals, and standardizing reporting.

In the United States, the first accounting organization was formed in New York in 1887. The Certified Public Accountant title and professional license was established in 1896. During the beginning of the 20th century there were 250 CPAs but no American colleges that recognized accounting as a major field of study for a bachelor’s degree. Twenty years later there were 5,000 CPA certificates issued and 40 institutions that offered accounting as a major. During the first quarter of the 20th century, the accounting profession in the United States would develop its educational requirements, certification, and association structures. In Utah, over this same time period, the University of Utah would establish the School of Commerce and Finance on June 12, 1917, and the Utah Association of Certified Public Accountants would be formed a few years later on July 8, 1920.

Many of us in the UACPA have firsthand experience with change and evolution within our profession. Just like in the past, technology, scandals and the need to help businesses thrive continue to drive our profession forward. As we reflect and celebrate our association’s 100-year birthday, let’s remember to learn from the past, live in the present and imagine the future!

Celebrate With Us UACPA members are invited to join in the 100 years celebration. Activities, service projects, and a gala are the journal entry | october 2019

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Feature Story planned. Stay tuned to The Journal Entry, Utah Association of CPAs Facebook page and uacpa.org website throughout the upcoming year for event details and articles related to the 100-year anniversary.

Watch for: • Traveling banner for members to sign • 100-year commemorative pin • Special edition of The Journal Entry • Apparel with new logo • Service projects • Bees game • Movie night • Golf tournament • Gala/banquet • Open house birthday week – group photo It is a wonderful opportunity to be able to participate in a 100-year celebration — the timing has to be just right. Let’s enjoy and reflect on what has already been accomplished by our profession and look forward to its continued evolution! n

SHARE YOUR STORY As we get ready to celebrate 100 years of the Utah Association of CPA, we want you to share your stories and experiences with the organization for the profession. Were you in the briefcase brigade? Did you go to Hawaii with other CPAs? Was your wife in the CPA Auxiliary? We want to hear your stories.

Share them at uacpa.org/centennial or email Amy Spencer, as@uacpa.org

KAREN HALLADAY, CPA, is a member of the centennial committee

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by the

NUMBERS

These numbers reflect logo design statistics from logodesignguru.com and canva.com

LOGO DESIGN

20 — 30

average number of sketches made for a single logo design

400

number of milliseconds it takes to process the visual elements of a logo design in the visual cortex of our brains

$35

the price Carolyn Davidson charged Nike to create their iconic logo in 1971

33

percentage of the top 100 brands that use the color blue in their logo

77

percentage of marketing leaders who say having a strong brand is critical to their growth plans

72

percentage of the best brands that are named with made up words or acronyms the journal entry | october 2019

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CELEBRATING THE YOU-ACPA

Membership Makes the Profession Grow Stronger in Utah.

By Hollie andrus, Cpa

F

rom debaters in high school to potential high school teachers to people that somehow always knew they wanted to be an accountant, our membership is varied. Our association garners its strength and influence from YOU — our members.

As we celebrate 100 years of the Utah Association of Certified Public Accountants. We celebrate more than the UACPA’s birthday, we celebrate you — your years of volunteer service, of advocacy, influence, and sacrifice in making our profession the best profession in the country — even in the world. We have many members from all walks of life that make the UACPA what it is. Let’s meet three CPAs representing three generations in our profession and association.

While we may think we are different, we as CPAs have more in common than we may realize; and when we bring our strengths to the profession and the “YouACPA,” the possibilities are endless!

Ken Golightly, CPA, currently enjoys working as the manufacturing controller for Purple. As a child, Ken frequently moved as his father’s military assignments changed. He saw aunts and uncles, who were 14

accountants, providing stable homes for their families. When he was 17 years old, he knew he wanted to be an accountant so he could have that stable “home” he always wanted. In his hop-

the journal entry | october 2019

skip-jump career, he has worked for Coopers & Lybrand, pwc, Rio TintoKennecott Utah Copper, Dyno Nobel, and now, Purple — always looking for a challenge and a way to make a

dreams of positively impacting future high school students. Luckily, she had enjoyed a microeconomics class and decided to try Accounting 2600 which, in her words, felt like the application of the microeconomics principles. Twenty-four credit hours in one semester later, she finished her accounting degree. Accounting, to Abby, is like big puzzles where we can break down technical issues; have healthy, intellectual debates regarding the philosophies and interpretations of standards; and work together to solve those big puzzles and to put those pieces back together.

difference by doing the best job he can no matter his responsibilities.

Challenges Ken sees for the profession? Keeping up with our respective regulatory environments and evolving our skills with emerging technology. Forever optimistic, Ken sees these challenges as great opportunities. In his eyes, as long as the world keeps changing, the world will need accountants! He is also excited for professional opportunities for our younger generations as Utah has a nice pipeline of youth prepping to rise to these new challenges.

The best part of the profession for Ken? Working with so many wonderful, high-quality people, continued friendships with those professionals with whom he has

worked, and connecting with new, previously unacquainted professionals.

While a 17-year-old Ken wanted to be an accountant, he never dreamed of the opportunities adult Ken has enjoyed in his career. On a side note, when interviewing Ken for this article, he and I realized we graduated from Brigham Young University the same year. Our profession is always connecting us in surprising ways.

Abby Potter, CPA, may be the newest CPA in the State of Utah, having beenlicensed late July 2019. Her path to CPA was in a bit more circuitous as she was undecided as to what she wanted to do. After growing up in Southern California (the desert side as she calls it), Abby transferred to the University of Utah planning to study secondary education with

Challenges Abby sees for the profession? Constantly challenging, maybe through early leadership opportunities, the profession’s younger generation so it stays engaged, enjoys its job, and recognizes it is OK to not “job hop.” What can management do to engage its young, sharp staff to develop their skills and to help them impact the profession NOW — not in 20 years when they take the upper management positions? This is a great challenge, and opportunity, for all of us.

The best part of the profession for Abby? Still young in her career, Abby is excited to see the many possibilities her accounting education and CPA will present to her. Abby will be a great leader in our profession and the “YouACPA.” Michael Blackburn, CPA, entered his junior year at the University of Utah having tried English, Philosophy, and engineering and not knowing what he was going to study. An advisor encouraged him to try Ken Hanni’s tax class. Who knew taxes could be

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fun? Ken did — and he taught Mike that they are fun. A tax accountant and tax lawyer, Mike practices tax and teaches at both the University of Utah and Westminster College with one goal: doing his best to pass along “tax is fun.” As his parents were both teachers in public education, Mike feels teaching is in his blood. To him, nothing is more rewarding than seeing a student’s face light up when a concept is understood.

Challenges Mike sees for the profession? The potential obsolescence of our skills and intellect by nonCPAs who want to be like us. Our profession, the CPA letters after our names came at great sacrifice and hard work. To Mike, our national society and state societies should always remember and promote the value and influence of the CPA license. In Mike’s experience, there is nothing more invigorating than a group of CPAs coming together to discuss and solve problems. We come together and work as a team, egos are left at the door, and great minds innovate to find sound solutions to whatever problems we may face.

The best part of the profession for Mike? Accounting creates so many opportunities and allows you to change directions. We have a natural respect for each member of the profession and work together to solve problems.

We all bring different skills, backgrounds, and personalities. Our profession gives us back so much more. Ken Golightly summarized our profession best when he said, “It’s better than I imagined. I wouldn’t trade it.” Ditto. n

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HOLLIE ANDRUS, CPA, works for the Office of the State Auditor as a Financial Audit Director. In her 20 years with the office, she has focused on higher education and now coordinates the audit of the State's financial statements.

She is active in the UACPA and enjoys teaching at Westminster College, gardening, and exercising.

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MITIGATE CLIENTS DATA BREACH RISKS HOW TO APPLY THE 80/20 RULE

By Hossein Dadkhah

C

ybersecurity risk is translated directly into business risk. According to Inc. magazine, 60 percent of small businesses fold within six months of a cyber attack. Fortune 500 businesses are not the only ones that need to worry about cyber attacks anymore.

In fact, small and midsize Businesses (SMBs) made up over half of last year’s breach victims. It doesn’t necessarily matter how small the company is or how it doesn’t have much sensitive data, or how the company stakeholders don’t find their products or services attractive to hackers.

Cyber criminals could have many different motivations to attack a business. For some, the motivation is money.

Some would go for the business data or intellectual properties. But among all, there are those who simply love a challenge to break in.

The truth is, all businesses can mitigate most cybersecurity risks through employee awareness, and cybersecurity best practices. Italian economist, Vilfredo Pareto was the first one who officially noted the 80/20 connection: in most cases, we can achieve 80% of the benefit from 20% of the effort. SMBs can successfully apply the 80/20 rule in securing their businesses and make most of their cybersecurity investment.

phishing emails and potential threats are getting harder to recognize; therefore, businesses should provide ongoing cybersecurity training programs as well as basic security practices for employees, since negligent employees, third party vendors, and contractors are responsible for over half of all data breaches. After all, humans are the weakest link in security.

2 — APPLY STRONG USER AUTHENTICATION Businesses should balance security and usability when it comes to user authentication. They should put two -factor authentication in place wherever possible.

These methods combine the use of something the user knows (e.g., a password) with something that the user has (e.g., a physical token, an app-generated code, an automated phone call to a telephone number on file). Moreover, businesses should implement policies on password length, recycling passwords and use of password managers.

3 — IMPLEMENT SECURITY SOFTWARE

While no guidelines or services can guarantee against security breaches, here are seven ways CPAs can reduce their clients data breach risks:

The word malware is applied to computer viruses and spyware. It is one of the leading causes of data being stolen or breached. It is critical to have a centrally managed anti-malware program installed on all systems, including servers and workstations. The antimalware should also be automatically updated with new definition files.

1 — USER SECURITY AWARENESS TRAINING

4 — AUTOMATICALLY PATCH OPERATING SYSTEMS AND APPLICATIONS

Security attacks are becoming more advanced while

Malware and cybercriminals exploit system the journal entry | october 2019

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vulnerabilities in operating systems like Windows and Mac OS. Applications such as Adobe Acrobat and Microsoft Office also have vulnerabilities. It is important to keep all operating systems and applications up to date with automatic security patches. If a software or hardware is not capable of automatic patching, then a risk assessment should be conducted to determine whether to keep or replace it 5 — SECURELY CONFIGURE DEVICES Default administrator passwords and insecure default settings on devices are a major security concern in companies’ networks and infrastructure. We often see configured devices, such as router and firewalls, with default administrative passwords, which could become accessible to the public.

SMBs should deploy secure configurations for all their network connected devices and change all the default passwords. They should also turn off unnecessary features and enable all relevant security features on those devices.

6 — BACKUP AND ENCRYPT DATA SMBs should have a defined and documented data backup plan that ensures all critical data is properly backed up. The 3-2-1 backup rule indicates that one copy of data should be stored offsite (either physically or via cloud services) in addition to two onsite copies in the event data on servers needs to be restored. A standard backup plan for a company's data should address the following:

Mobile devices include cell phones, laptops and tablets. They are widely popular tools to conduct business these days. Businesses need to decide on the ownership model that they wish to have for these devices. They typically either should provide company-owned devices or allow employees to bring their own devices (BYOD). In both cases, businesses need to take steps to secure sensitive information on such devices.

Whether devices are business or employee-owned, data separation between work and personal data is critical on mobile devices. This will apply to apps, email accounts, contacts, etc. Businesses should determine how to enforce this separation in a way to balance business and security needs. All mobile devices should store sensitive information in a secure, encrypted state.

Businesses could also choose to implement an Enterprise Mobility Management (EMM) solution that enables them to apply more security controls as well as providing better device administration. EMM solutions typically include functions to manage, audit and support mobile device. Additionally, EMMs will typically have the option to remotely wipe a mobile device. n Hossein Dadkhah is the founder and COO of Utah based cybersecurity consulting firm, Data Driven CIOs,

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List of systems needed to be backed up

offering cybersecurity planning and

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What data needs to be backed up

been on strategic partnership with

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How often the data will be backed up

SMBs should periodically test the backups and ensure that all data is being properly backed up, is recoverable and can be restored. Backups should be stored in an encrypted state and access to the backups should be restricted only to those who must access them for the testing or restoring.

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7 — SECURING MOBILE DEVICES

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solutions. Hossein’s main focus has small and mid- size businesses to help them with cyber risk mitigation. He has more than 19 years of experience in helping companies to become secure by addressing their most pressing and pervasive cyber risk challenges.

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Council Update

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A

MEDICADE, MARIJUANA AND TAX REFORM

THE 2020 LEGISLATIVE SESSION IS RIGHT AROUND THE CORNER

By DAvid Peterson, Ryan Peterson and Craig Peterson

s summer comes to an official close, preparation for the 2020 legislative session begins in earnest.

As of the writing of this article, more than 700 new bill files have already been opened by legislators. Just like last year, we plan on seeing legislation aimed at Medicaid, marijuana, and of course, tax reform.

UACPA will remain ever vigilant in identifying legislation which could affect our businesses and the professional services we provide to the citizens of Utah.

Over the course of the summer, the Tax Restructuring and Equalization Task Force visited eight geographically diverse areas of Utah. From Brigham City to St. George, the task force listened to questions, comments, and opinions of citizens and business owners concerned with the language of House Bill 441 — a tax restructuring bill introduced and subsequently tabled during the last few days of the 2019 legislative session. The task force also set up a web page at www.strongerfutures.utah.gov with information for the public and are now holding monthly meetings at the capitol is in order to discuss options based on the information collected during their tour of the state. The eyes of the nation are focused on Utah to see how we address this challenge, and experts from around the country have voiced their opinion. It is now up to our elected officials to make the ultimate decision regarding this current challenge.

The UACPA had representatives at all of the task force meetings, and we observed unique issues specific to each geographic location. For example, the meeting in Moab focused primarily on travel and tourism, the Roosevelt meeting saw citizens expressing how a tax on services would further damage an already depressed rural economy, the more urban areas along the Wasatch Front had lawyers, doctors, and business owners out in droves. At each meeting, a large contingent of public educators voiced their support for the income tax earmark for education. As the meetings progressed, this income tax earmark came to the forefront as one of the primary challenges of tax modernization.

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Utah is the only state in the union with a 100% income tax earmark for education. By the time the last of the task force meetings were held; members, including the co-chairs (Rep. Francis Gibson and Sen. Lyle Hillyard), were openly stating how and why this 100% earmark was problematic for Utah’s future. Simply put, the constitutional mandate to allocate 100% of income tax revenue to education, hamstrings the state’s ability to provide other essential services such as social services, which come out of the state’s general fund. Sales tax revenue is the source of funding for the general fund and while sales tax revenue is growing, it is being outpaced by income tax revenue creating a challenging revenue imbalance. To put this challenge into perspective, at the end of Utah’s 2018 – 2019 fiscal year, the state saw a $97 million tax surplus. While that sounds like good news, the explanation for the surplus is a bit grim. You see, the state’s Education Fund had a $140 million surplus while the state’s General Fund suffered a $43 million deficit. This means the state of Utah had $140 million MORE in the Education Fund than their budgets called for. Pursuant to the constitution, however, Utah legislators cannot access the $140 million surplus to offset the $43 million deficit. This means a $43 million shortfall in general fund services such as public safety, the environment, corrections, social services, and on and on.

So, where are we at with taxation on services? While the eight-city legislative road show shined a light on a number of alternatives to a tax on professional services, we believe taxation on services is still on the table. However, legislators have indicated a desire to forgo taxing business to business inputs in an attempt to avoid tax pyramiding. The legislature will be tasked with further defining what business-to-business input is and how it will affect professional services but at this point in the discussion, we feel most, if not all, accounting services will be included in the definition.

Once again we ask UACPA members to keep their eyes and ears open for legislation that could both positively and negatively impact our business practices, and we will continue to zealously advocate our position with our partners in the legislature. n

David Peterson is a partner and attorney with Peterson Consulting Group. He received a B.S. degree from Brigham Young University, his J.D. from the University of Toledo, and his LL.M. from The Judge Advocate General's Legal Center and School. He has served on Active Duty and with the Army National Guard for more than 20 years and currently holds the rank of Major.

Ryan Peterson is the managing partner of Peterson Consulting Group. He has been a contract lobbyist in the state of Utah for the last 12 years. 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.

Craig Peterson, senior partner of Peterson Consulting Group, has been involved in legislative processes for almost 40 years as a State Representative, State Senator, and Republican Senate Majority Leader.

During the past 20 years, he has been a lobbyist, successfully representing a broad spectrum of clients. Craig and his sons Ryan and David have become a strong political voice for their clients.

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UACPA 2019 AWARDS MEET THIS YEAR'S HONORED CPAS

The annual Inauguration & Awards Banquet was held Wednesday, Sept. 25 at Noah's event center. Olympic skier Nikki Stone delivered the keynote address to award winners, 100% member firms, newly licensed CPAs and guests. Award winners were selected by nominations through the UACPA website and by members of the nominations committee.

The 2019 award recipients honored include the following:

Distinguished Service Sen. Curtis Bramble, CPA Curt earned his bachelor's and master's degrees in accounting from Brigham Young University.

He founded Bramble & Company CPAs in 1986 and merged with Gilbert & Stewart CPAs in 2001. Curt, an elected state senator since 2000, represents District 16 and has previously served as the senate majority leader. In 2008, he received the National Legislator of the Year award from the American Legislative Exchange Council (ALEC) and has also served on the board of ALEC. He served as president of the National Conference of State Legislatures from 2015 – 2016. Curt and his wife have six children and 16 grandchildren.

Jeannie Patton Lifetime Service Award Jody Stamback Jody graduated from Weber State University with a bachelor's in business management in 1984. He started his IRS career in 1989 with the Ogden campus and worked in many different functions until leaving the Campus in 1995 to work as a tax auditor in the Salt Lake City District Office. He is currently a Senior Stakeholder Liaison with Communications and Liaison. He works with practitioner and industry groups in helping to share information to and from the IRS and its external stakeholders.

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Outstanding CPA in Business & Management Corey Crittenden, CPA Corey is the controller at HB Boys, a franchise management company of Burger Kings, Beans & Brews, Costa Vidas, Subways and gas station brands. He graduated from Utah State University with an MBA and a degree in accounting and minor in Portuguese. He is a UACPA Leadership Academy alumni and has served on various committees. He credits, growing up in Heber City for his love for the outdoors, hunting, fishing and camping. He is the father to three beautiful daughters who are his motivation in life.

Outstanding CPA in Public Practice Paul Skeen, CPA Paul is an assurance partner with Eide Bailly LLP emphasizing work with dealerships, resorts, and governmental entities.

He has more than 20 years of experience. He is a past president of the UACPA and has previously served on the advisory boards for the Utah State University and University of Utah Schools of Accountancy. He is currently a trustee and the presidentelect of MountainWest Capital Network. Paul enjoys skiing, cycling, golf and the Dallas Cowboys.

Outstanding CPA in Nonprofit & Government Scott Czaja, CPA Scott is a CPA and tax partner at WSRP, LLC specializing in nonprofit, pension, profit sharing plans and other employee benefits. Scott is also WSRP's lead tax partner on estates, gifts, trusts and planned giving. Scott has over 43 years of experience. Scott has a masters in Taxation from DePaul University. He is currently the treasurer of the Catholic Foundation of Utah as well as the Mountain West Mothers' Milk Bank.

Outstanding Leadership Council Member Clinton Armstrong, CPA Clinton is the tax manager for Carver, Florek & James. He earned his Master of Taxation from Weber State University and concurrently his CPA license in December 2011. He is the president of the downtown chapter of the UACPA. He is a member of the board for Hiatt Equestrian Rescue & Recreation. He lives in Bear River City with his wife Marcie and their four kids Boyd, Robert, Evalynn and Frederick.

Outstanding Educator Jim Stice Jim is an accounting professor at BYU. He has enjoyed educating the hearts and minds of young people for over three decades.

While he has taught accounting to executives around the world, his greatest professional joy comes from kindling in young people an interest in and an excitement for the possibilities that an accounting education offers.

Rising Star Eric Greene, CPA, CMA, CIA, CFE Eric is the senior manager of technical accounting and SEC financial reporting at ZAGG. Prior to ZAGG, Eric worked at PwC in their audit practice. Eric is an alumni of the AICPA national leadership academy, and currently volunteers with the SEC Professionals Group, UACPA's ProNet council, and the University of Utah's business school. Eric holds two masters degrees from Westminster and two undergraduate degrees from the University of Utah. Eric loves his wife and 2 and 3/4 kids, Utah football, and the occasional Triscuit.

Lifetime Member Ron Mano, Ph.D., CPA, CFE Ron Mano began teaching in 1973 and has recently retired from Westminster. He worked with Hansen, Barnett & Maxwell while in graduate school and later joined Ernst & Ernst. Ron has served in several capacities in the UACPA and has published more than 100 articles and has made more than 100 professional academic presentations. He was on the University of Utah faculty for 12 years and on the Weber State University faculty for 25 years where he served as department chair for 10 years. Ron and his wife have seven children.

Lifetime Member Paul Simkins, CPA Paul received a bachelors in applied vertebrate zoology in 1977 from Utah State University, then completed his Master of Accountancy in 1977 from Utah State University. His career began with Touche Ross in Ancorage, Alaska, and then he accepted a position with Hancy, Jones, Waters and Wright (now Jones Simkins) in Logan Utah. He was a tax partner AWARDS CONTINUED ON NEXT PAGE

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AWARDS CONTINUED>

with Jones Simkins for 30 years and retired from the firm in 2011. He currently works on a part-time basis as CFO for one of his larger clients. He serves on the board of directors for several companies and is secretary/treasurer for a large non-profit organization in Logan, Utah. Paul resides in Smithfield with his wife of 50 years, Vione.

They have five children, 18 grandchildren and one great grandchild.

Women to Watch: Experienced Leader Jayna Forsgren, CPA Jayna is a graduate of Weber State University with a bachelor’s degree in accounting and a Master of Professional Accountancy in Tax. She is dedicated to the profession and has over 15 years of experience in public accounting. She is currently a partner at Johnson & Company, LLC in Ogden. Jayna is also a wife and mother to three very active children. She serves on the Board of Ogden Weber CAP and is an active member of the UACPA and Women in Business.

Women to Watch: Experienced Leader Janis Kline, CPA Janis is co-founder, CFO, and partner of Agility Energy, Inc., an oilfield service company, and Agility Customs, LLC, a rockcrawler customization shop. She previously held the same roles at Western Petroleum, Inc. which grew from a small start up to an operation, covering 22 states and was recognized by Inc. magazine as a fastest growing company multiple years.

Her career includes time at an international CPA firm, managing partner for a local CPA firm, CFO of a multistate restaurant chain, as well a national consultant. She has been recognized as Utah Woman Business Owner of the year and has served as president, officer and board member of various professional and charitable 26

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organizations. She graduated from the University of Utah with honors and loves to travel and spend time with her family in the beautiful red rocks of Southern Utah.

Women to Watch: Emerging Leader Ariane Gibson, CPA Ariane graduated from the University of Utah with her bachelor's and master's degrees in accounting. She began her career with the Office of the State Auditor where she worked 7.5 years. In November of 2017, she took the position of vice president of financial services of Utah Housing Corporation. She has served on the UACPA ProNet council as the campus ambassadors liaison and vice chair. She is happily married and the proud mom of two girls.

Women to Watch: Emerging Leader Tara Williams, CPA Tara is an audit manager in Cook Martin Poulson, PC’s Logan office. She specializes in audits of financial statements and tax return preparation. Tara enjoys serving the community through her service on the Women in Business-Cache Valley and Cache Chamber of Commerce boards of directors. She obtained her bachelor’s degree in accounting from Utah State University and master’s degree in accounting from Weber State University.

Tara enjoys spending time outdoors with her husband, Cameron, and their daughter, Liza, as well as hiking, and practicing archery. n

HOW NOT TO RUIN YOUR REPUTATION

STAY GOLDEN BY AVOIDING CYBERSECURITY AND COMPLIANCE THREATS By George Phipps

O

ver the past two months, the UACPA, in conjunction with NetWize, has hosted a tech series to tackle the issue of cybersecurity and compliance threats facing the profession. These threats are persistent 24 hours a day, potentially negatively affecting the interactions with your clients on a daily basis. Security is always a risk to an organization. Not understanding the compliance requirements of your clients opens up your firm to liabilities and risk affecting everyone throughout the relationship chain — from the firm and partner, to the client. That security risk is not limited just to harming your systems, in fact, it is now an attack focused on collecting information about you, your habits, relationships, and firm data with the end goal of causing financial harm to you and your clients.

During our first session we talked a bit about “reputation risk” or loss of reputation and its relationship to the firm’s financial value. In a fully healthy organization, the financial value of your reputation adds another 50% to

the organization. When breached, your reputation value decreases exponentially, arriving very quickly to achieving negative value which usually indicates the beginning of imminent, business failure.

Our first two sessions focused on cybersecurity and compliance. Below is a list of the highlighted takeaways: Cybersecurity Risks: • Phishing attacks are up 434% in the last year • Data breaches are occurring across all industries without regard to size of client…everyone is a target • Average cost of a lost/stolen company record is $225.

The average cost of an attack on a company is $2.4M (lost records, brand, reputation, client base) • Over the past few years and through a hardening of systems, employees have become the risk • Since the top risk to your firm is the employee (account for 95% of all security incidents), those risks are attributed to the use of: the journal entry | october 2019

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o BYOD o Use of public WIFI o Unsecure data storage o Lack of education regarding phishing emails o IoT devices • Educating employees is the key to surviving the attacks that are already taking place (establish ongoing employee security education and phishing campaigns) Compliance • Five years ago, most companies said they were “compliant” by putting compensating controls in place as opposed to tackling the actual control items • Compliance is not just a large organization issue.

Three-fourths of all federal sentencing of “out of compliance” organizations are small companies • Six different compliance requirements increase the complexity of firms knowing which items to comply with and how to satisfy the requirements o PCI-DSS o ITAR o HIPAA o SOC o NIST o GDPR • At a minimum, adopt and execute a security framework that addresses the critical control items across most compliance frameworks • Understanding your client’s vertical-specific compliance requirements will be key to developing an operational relationship between your firm and the client. A client’s risk is inherited by your firm if you do not put the correct controls in place to secure the relationship between you and the client As our sessions continue, we will begin to narrow down into more locally actionable items that might seem common practice within your firm but create the largest risk footprint. We will examine the risk, technology, and how to take advantage of its full benefits. These sessions will be a direct and transparent review of the financial and operational risk to your firm and how, with just a little knowledge and action, you can begin to build the foundation of a secure organization. A high-level review of the remaining topics to be covered are reviewed below:

OCTOBER - PANEL DISCUSSION This will further investigating cybersecurity and compliance from the perspective of leaders facing these challenges daily. The panel will be comprised of thought leaders providing their assessment from a legal, financial and cybersecurity point of view.

JANUARY - DOCUMENT SHARING AND DISASTER RECOVERY Signed documentation is at the core of every accounting firm, hence policies, both technical and written, need to be put into place that follow an industry standard disaster recovery framework. Identifying critical business assets and infrastructure is vital to building the processes and procedures to recover from an event.

FEBRUARY - MOBILE DEVICE MANAGEMENT An innovative group of new business leaders have emerged. These leaders have not been encumbered by traditional IT, but instead have grown up in a mobile, cloud-based world. Their go-to platform for engaging with corporate resources for conducting business are mobile devices and smart phones. Due to this need for instantly available data, accounting firms need to build the right internal framework to provide this immediately actionable data in the most secure manner.

MARCH - TRENDS IN THE INDUSTRY AI and blockchain have begun to open up the doors for remodeling data, supporting the concept of “real business value.” Freeing up an accountant from their mundane daily tasks allows the accountant to refocus on more lucrative engagements with their clients business advisory services.

We are looking forward to sharing our insights around these topics and providing valuable, actionable tasks to help protect you, your firm and your clients. n

George Phipps is a VP of Services with NetWize, a MSP and Advisory Services organization working with clients to help interconnect services and solution to business outcomes. He holds dual degrees in Political Science and Economics from the University of Southern California.

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TECH TALKS

Join us for one free hour of CPE where you will learn the latest on valuable tech topics.

10.16 TECH PANEL DISCUSSION

2.19 MOBILE DEVICE MANAGEMENT FOR ACCOUNTANTS

All talks will be webcast.

Attend online or in person.

UACPA, 136 S. Main St., Ste 510

Register at www.uacpa.org/tech

1.15 DOCUMENT SHARING & DISASTER RECOVERY

3.18 TRENDS IN INDUSTRY

FREE FOR UACPA MEMBERS.

ALL TALKS ARE HELD AT NOON. LUNCH WILL BE PROVIDED. the journal entry | october 2019

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WOMEN IN ACCOUNTING

Kristy Hansen, CPA

By Amy Anholt, CPA

A native of Ogden, Utah, Kristy Hansen attended Weber State University where she earned a Masters of Accountancy Degree.

Some of her favorite classes at WSU were through the Honor’s Program. She also enjoyed one semester abroad at Brigham Young University Jerusalem Center for Near Eastern Studies. She feels these classes gave her a broader view of history, cultures and the humanities. Upon graduation she worked at Deloitte in Salt Lake City. She is now a financial analysist at the Church of Jesus Christ of Latter-day Saints.

WHO WOULD YOU MOST LIKE TO SWAP PLACES WITH FOR A DAY? I would switch places with any rock ’n’ roller drummer. I have always loved music, particularly percussion. I played various percussion instruments in high school, like the xylophone, bells, tympani, and snare drum in the percussion ensemble.

I recently bought a drum set because I did learn a little while still in school. Now, I’m teaching myself what I never learned on the drum set and I find myself wanting to sound just like all the drummers on the radio, without any practice!

WHAT IS THE MOST IMPORTANT LESSON YOU’VE LEARNED IN THE LAST YEAR? A co-worker on my team believes in making personal sacrifices for the good of the team. He has spent hours setting up powerful macros and templates in power query to help my work. This isn’t a onetime thing — he helps me every month-end when he is busy with his work. He told me he would work on projects to help others on this team because it was an overall time 30

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savings and he enjoys the type of work. Not only does his actions save me time, but it builds trust and teamwork in a relationship. In return, I worked on gathering a specific data set that we both need and use. We are two people coming from different backgrounds who thought we saw the world differently. Now we begin to see a bigger picture where two people can both share their knowledge and work together.

WHERE’S YOUR FAVORITE PLACE IN THE WORLD? My favorite place in the world is home. That being said, I love to travel and visit new places. My current job allows me to work with individuals across the world. As you work together to solve problems, meet deadlines, and try to communicate at odd times of the day with language barriers, friendships form. Some of my co-workers have invited me to visit their country and stay in their homes. It is a wonderful way to experience the culture and spend time with friends. My first adventure to visit a co-worker was to Moscow, Russia. I sometimes think of the song by Billy Joel, “Leningrad”

and how friendships are made despite political barriers.

I have also visited friends in New Zealand and Hong Kong. Even though I traveled for fun, I find my work more meaningful because I have interacted and heard the stories of the people I work with.

HOW DO YOU RECHARGE? Fresh air always gives me renewed energy. I love to walk at night after work during the warmer months. Even during the winter, I find it fun to shovel snow when the world is so beautiful and quiet. I also enjoy working in my vegetable garden.

Pulling weeds and seeing something accomplished is therapeutic.

takes time to think and then he provides suggestions and guidance. Together, we make decisions that are best for me. As we execute our plan, he is open to feedback and new insights along the way. If I need immediate help, he is available by phone or email. Every three months, we meet to assess our plan and any changes we need to make in the direction we are taking. What I appreciate most, is this doctor is in the business of saving lives.

If he can calmly think, plan and execute a lifesaving plan, I also can think, plan and execute as I encounter challenges in my profession! n

DO YOU HAVE A MENTOR? HOW HAVE MENTORS HELPED YOU IN YOUR CAREER? I have a rare disease that I have been treating for years. The physician who oversees my treatment at the University of Utah Hospital has been my greatest mentor in life and my career. He takes time to listen and understand my situation, concerns and problems. Most importantly, he

Amy Anholt, CPA, is the vice president of finance for Dental Select. Previously, she worked in public accounting for Arthur Andersen and KPMG. Currently, she is serving on the Joint UACPA/AWSCPA(UT) Task Force for Women in the Profession.

Amy can be reached at amya@ dentalselect.com.

Imagine... a chair without a desk Delivering Results - One Practice At a time Ryan Pannell www.APS.net

800-397-0249 Ryan@APS.net

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MEET THE EXECUTIVE BOARD

What Was a Memorable Celebration For You? Monica Gardner President

Stacy Weight Vice President

"For me any celebration or get together is memorable first and foremost because of the people. When I was in high school my grandparents took all of their kids and grandkids to Florida.

Of course, we had a fun time, but the best part was spending time with my cousins who lived out of state."

"I recently attended a bell ringing ceremony for my niece's last day of chemotherapy! This was a memorable event to celebrate the end of the pain and sacrifice our entire family has watched over the past 18 months. She is a tremendous source of courage and inspiration to me every single day!"

Jason Tomlinson Treasurer

Troy Runnells Secretary

"My wedding reception because it was a PARTY! Live jazz band, dancing, friends, family and the girl of my dreams at my side."

"I had the opportunity to attend the final stage of the Tour de France in Paris. It was amazing to be surrounded by the racers and people who had contributed to the success of the racers. I was inspired by their accomplishment and the level of the teamwork that went into the race. I liked the camaraderie of the team and the humility of the individual racers."

Jay Niederhauser President-Elect

Matt Klein Immediate Past President

"One of my most memorable celebrations was our 40th wedding anniversary (a couple of years ago already!). It was memorable because our children and grandchildren were all together and brought pictures and memories of a lifetime of blessings!"

"When I received my Eagle Scout award at the age of 14 it represented a significant amount of work and an accomplishment I was proud to celebrate. There was a real bald eagle at the event – that was pretty cool to a 14 year old (and still now)."

Nate Staheli Member-at-Large

Susan Speirs CEO

"My great-grandfather helped establish Dixie Academy in St. George. I was able to help establish the first master’s degree at Dixie State University. After 107 years, we were able to offer graduate programs. Attending the celebration formally approving the MACC by the Board of Trustees was memorable.

I am thankful to continue a heritage of progress and development in the southern end of the State."

"Years ago my grandmother was selected as queen for the Daughters of Utah Pioneers. She was honored for her entrepreneurship, tenure as an elementary school teacher and mother.

I was honored to able to chauffer her to the festivities and participate in her joy!"

Not pictured: Tom Colligan (Member-at-Large), Brandon Allfrey (AICPA Council) and Katie Chandler (ProNet Council) 32

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BOARD BULLETS

News from the UACPA Board The following actions were taken by the executive board at the last board meeting.

•

The annual audit for the year ended March 31, 2019, was presented by Haynie & Company and approved by the board.

•

The investment committee presented amendments to the investment policy.

Amendments were approved by the board.

•

Names were discussed and approved to be submitted to become trustees to the UACPA retirement plan.

•

Held discussion for names to be submitted to the AICPA for board members and at large council members.

•

Held discussion regarding tax reform, summaries of meetings held around the state of the tax restructuring task force and what to expect moving forward. Also, discussion was held on Utah NonProfit Association position of tax reform in Utah.

•

Had discussion with regards to issuing a license to an individual with a criminal history.

DOPL has asked us to review parameters and give recommendations as they update their records to recently passed legislation.

An updated chart was submitted to the State Board of Accountancy.

•

HB389 – Incentive Program Amendments, which was passed in the 2019 legislative session, requires CPAs to issue an attest report we are unable to issue due to our own rules and regulations. Discussion was held regarding possible wording of an oversight amendment that would provide the governmental division the ability to provide a report in agreed upon principles.

MEET THE UACPA STAFF

What Was a Memorable Celebration For You? april deneault cpe manager "My mom’s birthday is Jan. 2 and for her 50th, we celebrated in July with a 50½ birthday luau for her. She has hated having a birthday right after Christmas and gifts of 'clearance sweaters.' She was so happy to celebrate a birthday outside, with warm weather, but we made sure she still got a 'clearance sweater' as one of her gifts."

tyler hodges membership development coordinator "A few years ago my wife planned a surprise party for my birthday. I remember the feeling of my friends and family coming out of nowhere, laughing and smiling. I felt silly for not knowing what was going on, but I loved being with everyone and having a good time!"

amy spencer marketing/communications "There were two beautiful celebrations this year: The celebration of life for my mother-in-law where guests planted flowers in her garden that she was known for and her granddaughters releasing butterflies; and my parents 60th anniversary. Seeing their faces when we gave them watercolor paintings of our family home was priceless."

tom horn financial director "My most recent memorable celebration would have to be winning my company’s breach of contract lawsuit against NASA after 11 years in court with a 5-week trial in U.S. Federal Claims Court."

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2019 LECTURE SERIES the uacpa presents OCT 9

Cyber Security Hossein Dadkhah

NOV 6 Legislative Update David, Ryan & Craig Peterson

DEC 11

Ethics

EARN ONE HOUR OF CPE. $15 FOR MEMBERS. Attend online or in person. UACPA, 136 S. Main Street, Ste 510.

ALL LECTURES ARE HELD AT NOON. LUNCH WILL BE PROVIDED. Register at www.uacpa.org 34

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MEET A MEMBER

Rob Anderson, CPA ROB ANDERSON, CPA grew up in Sandy and graduated from Alta High School. Rob earned his bachelor's and master's in accounting from the University of Utah and is currently the CFO for Bedrock Quartz Surfaces.

Rob and his wife live in Herriman with their six children.

WHAT LED YOU TO BECOME A CPA? I have always been fascinated by business. In college while studying business, I really enjoyed the required accounting classes. As a result, I chose to major in accounting.

WHAT DO YOU LIKE TO DO OUTSIDE OF WORK? I try to spend every minute I can, outside of work, on a bike. I love both mountain and road biking. Currently, I am a coach for my children’s mountain bike team. During a typical summer weekend you can find me on a mountain trail riding with my kids.

WHAT WOULD SURPRISE PEOPLE TO KNOW ABOUT YOU? One thing that often surprises people is that I can do the splits. As a youth I was a gymnast. I have been able to maintain my flexibility.

WHAT IS ONE BOOK THAT HAS GREATLY INFLUENCED YOU? The 360 Degree Leader by John Maxwell. This book taught me that leadership is not about position and title. It is about influence. It help me realize that I can be a leader no matter what position I am in.

WHAT ARE SOME OF YOUR GOALS BOTH PERSONALLY AND PROFESSIONALLY? Personally: I am training to complete a century bike ride. Professionally: to build a best-in-class company and team.

WHAT ADVICE DO YOU LIVE BY? “You only fail when you quit.” Never give up. With enough time and effort you can accomplish anything. n

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Photos, Golf Tournament

The annual golf tournament was held Aug. 8 at the Homestead Resort. More than $5,000 was raised for the Utah CPA Education Foundation.

Thank you to the golf tournament sponsors!

• • • • • • • • • • •

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Paychex Beehive Insurance KSL NOW CFO Cost Segregation Authority Premier Computing Wells Fargo My529 Foresight Management Netwize Fidelity

Photos, Inauguration & Awards Newly licensed CPAs were among those celebrated at the annual Inauguration & Awards Banquet. See more photos from the event on the UACPA Facebook page, facebook.com/utahassociationofCPAs

The following individuals, licensed between August 2016 and July 2019, were honored.

Michael Acord, CPA Robert Alexander, CPA Warren Anderson, CPA Jeremy Andrews, CPA Louisa Anowi, CPA Austin Argyle, CPA Austin Averett, CPA Sean Averett, CPA Daniel L. Barney, CPA Rebekah Battaglia, CPA David Black, CPA Joseph Brewer, CPA Kevin Brickson, CPA Jacob Bybee, CPA Travis Call, CPA Kendra Christensen, CPA Tyler Dickerson, CPA Kyle Dowdle, CPA Slater Duncan, CPA

Elise Faucette, CPA Rebecca Fleming, CPA Dalton Haberl, CPA Jessica Hart Moore, CPA Ryan Hawkley, CPA Scott Hinkle, CPA Bryson Hurst, CPA Deborah Jacobson, CPA Kyle Jardine, CPA Johnathon R. Jensen, CPA Dustin Jensen, CPA Alisha Jerauld, CPA Jordan Jones, CPA Taylor Komarek, CPA Laura H. Krummenacher, CPA Lauren Lambson, CPA Michael Law, CPA Gun Hee Lee, CPA Jennyffer Lopez, CPA

Justin Mangone, CPA Charlotte R McKinney, CPA Zhongbo McNall, CPA Jennifer Messer, CPA Jiayi Miao, CPA Jeremy Miller, CPA Chase Nielson, CPA Emily Peck, CPA Abby Potter, CPA John Robinson, CPA Gregory Schenk, CPA Stephon Schoonmaker, CPA Gage Simms, CPA Christina Ter-Gevorkian, CPA Sara Toone, CPA Tyson VandenAkker, CPA Taylor Wagner, CPA

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37

CPECourseSchedule Register online at uacpa.org, or call the UACPA office at (801) 466-8022.

CREDIT HOURS COURSE TITLE

DATE

INSTRUCTOR

VENDOR

MEMBER FEE*

NONMEMBER FEE

OCTOBER 10/11/19

8

U.S. GAAP: Review for Business & Industry

Marty Van Wagoner

AICPA

$285

$340

10/14/19

4

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

Marty Van Wagoner

AICPA

$170

$195

10/14/19

4

The Bottom Line on the New Lease Accounting Requirements

Marty Van Wagoner

AICPA

$170

$195

10/17/19

4

Social Security and Medicare: Maximizing Retirement Benefits

William Taylor

AICPA

$170

$195

10/17/19

4

Smart Tax Planning Strategies for Individuals

William Taylor

AICPA

$170

$195

10/18/19

8

Best Practices for Payroll Taxes and 1099 Issues

William Taylor

AICPA

$285

$340

10/25/19

8

Accounting and Auditing Update for Small Businesses

Marty Van Wagoner

AICPA

$285

$340

10/28/19

4

Preparation, Compilation, and Review Engagements: Update and Review

Jeffrey Lieman

AICPA

$170

$195

10/28/19

4

Audit Workpapers: Documenting Field Work

Jeffrey Lieman

AICPA

$170

$195

10/29/19

8

Construction Contractors: Accounting, Auditing and Tax

Jeffrey Lieman

AICPA

$285

$340

10/31/19

8

K2's Excel Data Magic, Including Advanced Pivot Tables & Power Pivot

TBD

K2 Enterprises

$285

$340

11/1/19

4

K2's Emerging Technologies, Including Blockchain and Cryptocurrencies

TBD

K2 Enterprises

$170

$195

11/1/19

4

K2's Testing and Auditing Excel Workbooks

TBD

K2 Enterprises

$170

$195

11/4/19

8

Annual Update for Accountants and Auditors

Marty Van Wagoner

AICPA

$200

$340

11/7/19

8

Estate and Life Planning Issues for the Middle Income Client

John Sherrick

Surgent

$285

$340

november

11/8/19

8

Securing a Comfortable Retirement in the Age of Spending

John Sherrick

Surgent

$285

$340

11/11/19

8

Annual Update for Controllers

Ronald Kral

AICPA

$285

$340

11/12/19

8

Enterprise Risk Management: New Approaches for Today's Complexities

Ronald Kral

AICPA

$285

$340

11/13/19

4

Developing Your Digital Mindset

John Cox

AICPA

$170

$195

11/13/19

4

Change the Way You Work: Success as a Virtual CFO

John Cox

AICPA

$170

$195

11/14/19

8

Advanced Controller and CFO Skills

John Cox

AICPA

$285

$340

11/15/19

4

Applying Professional Skepticism in an Audit

Marty Van Wagoner

AICPA

$170

$195

11/15/19

4

Fraud and Cash Receipts: Common Frauds and Internal Controls

Marty Van Wagoner

AICPA

$170

$195

11/18/19

4

Reviewing Partnership Tax Returns: What Are You Missing?

Steven Wagner

AICPA

$170

$195

11/18/19

4

Reviewing S Corporation Tax Returns: What Are You Missing?

Steven Wagner

AICPA

$170

$195

11/19/19

4

Reviewing Individual Tax Returns: What Are You Missing?

Steven Wagner

AICPA

$170

$195

11/19/19

4

Hottest Tax Planning Developments Under the Current Tax Law

Steven Wagner

AICPA

$170

$195

11/20/19

8

Not-for-Profit Accounting and Auditing Update

Stacey Bergman

AICPA

$285

$340

11/21/19

8

Not-for-Profit Financial Reporting: Mastering the Unique Requirements

Stacey Bergman

AICPA

$285

$340

11/22/19

8

AICPA's Annual Federal Tax Update

Michael Blackburn

AICPA

$200

$340

11/25/19

8

Form 990: Mastering the Unique Requirements

David Peters

AICPA

$285

$340

11/26/19

8

Advanced Tax Strategies for LLCs and Partnerships

David Peters

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 (excluding 4-hour courses and core training courses) where the AICPA is listed as the vendor. Use promo code AICPA8 for 8-hour courses.

38

the journal entry | october 2019

CPECourseSchedule Register online at uacpa.org, or call the UACPA office at (801) 466-8022.

DATE

CREDIT HOURS COURSE TITLE

INSTRUCTOR

VENDOR

MEMBER FEE*

NONMEMBER FEE

DECEmber 12/2/19

8

Governmental Accounting and Auditing Update

Robert Moody, Jr.

AICPA

$285

$340

12/3/19

8

The New Yellow Book: Government Auditing Standards, 2018 Revision

Robert Moody, Jr.

AICPA

$285

$340

12/4/19

8

Nexus Update: Latest Developments in State Income, Franchise, and Sales Tax

Pamela Davis-Vaughn

AICPA

$285

$340

12/5/19

8

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

Pamela Davis-Vaughn

AICPA

$285

$340

12/9/19

8

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

Robert Minniti

AICPA

$285

$340

12/10/19

8

Preventing, Detecting, and Investigating Identity Theft

Robert Minniti

AICPA

$285

$340

12/16/19

8

Individual Income Taxation: Practical Tax Return Guidance for Your Upcoming Tax Season

Peter Bunce

AICPA

$285

$340

12/17/19

8

Individual Income Taxation: Critical Tax Compliance and Planning Strategies

Peter Bunce

AICPA

$285

$340

NonProfit Conference Wednesday, Nov. 20 Wasatch Conference Center, 75 S. 200 East, SLC 8 – 1 p.m.

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39

Winter Conference

December 12 - 13

Sheraton Salt Lake City CPE: 16 hours Fees: $342 for members before Nov. 27; $380 after Nov. 27;Also available as a webinar.

Register at uacpa.org 40

the journal entry | october 2019

Member Benefits

The UACPA Honors 100% Membership

Beehive Insurance

Congratulations to the firms and businesses currently 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 Groups with 2 to 100 eligible employees can participate in medical, dental, vision, telehealth and voluntary onsite programs through this plan. For more information, contact Todd Valentine, 801-743-7788 or tvalentine@beehiveinsurance.com.

National Affinity Service

Identity 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.

Payroc

Payroc, a full-service payment processing company, makes it easier and faster for your clients to pay you, and can even eliminate the vast majority of the fees a firm pays for credit card processing. Contact Colby Poulson at 801-951-8110 or colby.poulson@payroc.com.

Camico

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

PUBLIC PRACTICE • CBIZ • Cook Martin Poulson • Davis & Bott • Eide Bailly • Haynie & Company • Hinton Burdick • Jones Simkins • PricewaterhouseCoopers • Savage Esplin & Radmall • Squire • Stayner Bates & Jensen • Tanner, LLC INDUSTRY • LDS Church Auditing Department

Office Depot/Office Max

UACPA members can save up to 80% on office products, printing, technology and furniture. Visit www.officediscounts. org/uacpa to learn more.

Paychex

Paychex, Inc., a leading provider of integrated human capital management solutions for payroll, benefits, human resources, and insurance services offers UACPA Members. For more info, visit Paychex.com/accounting-professionals.

Firms with 10 or more full-time CPAs are eligible to be a part of the 100% membership program. Learn more by talking to Tyler Hodges, thodges@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

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41

accounting & auditing conference

Dec. 6 UACPA

training room 8 hours CPE Fees: $248 for members before Nov. 22; $275 after Nov. 22 Also available as a webinar.

Register at uacpa.org

ContactList

IN MEMORIAM

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

Mark Anderson 801-532-7800

John B. Fairbanks IV

January 20, 1948 – July 7, 2019 UACPA member since 1985

William (Bill) Spencer Nicholson May 29, 1939 – May 31, 2019 UACPA member since 1965

markanderson@hayniecpas.com

December

James E. Stewart

September 11, 1930 – June 13, 2019

Mark Anderson 801-532-7800

UACPA member since 1962

markanderson@hayniecpas.com

Blake Jeffery Hymas

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.

October — December Steve Avis 801-532-7800 stevea@hayniecpas.com

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

August 10, 1950 – July 29, 2019 UACPA member since 1982

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

Utah Practice For Sale: gross revenues shown: Southern Weber County, UT Tax $130K; Salt Lake City (Near Airport) Tax & Acctng $55K. For more information, please call 1-800-397-0249 or visit www.APS.net to see listing details and register for free email updates.

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

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@APS.net.

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43

UTAH ASSOCIATION OF CPAS

Nonprofit Org.

136 S. MAIN STREET, SUITE 510

U.S. Postage

SALT LAKE CITY, UT 84101

PAID

Salt Lake City, UT Permit No. 1996

technology Dec. 19 – 20 South Towne Expo Center, 9575 S. State Street 16 hours of CPE

$418 for members before Dec. 5; $465 for members after register at uacpa.org

conference