On Balance Magazine - Nov/Dec 2021

November | December 2021 | Vol. 17 No. 5 A publication of the Wisconsin Institute of CPAs | wicpa.org

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Hal Trescott, CPA | 6 Plus: Post-pandemic fraud risk | 12 Labor law update | 16 Single audit tips | 26 Data transformation | 30

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A publication of the Wisconsin Institute of CPAs | wicpa.org

November | December 2021 Vol. 17 No. 5

6 Features

Columns

6 No flair for accounting Harold C. (“Hal”) Trescott, CPA, was told by his first accounting professor that he’d never make it as an accountant. He took that as a gauntlet throw-down and strove to prove his professor wrong.

By Marcia Tillett-Zinzow

26 ACCOUNTING & AUDITING

Tips for working with first-time single audit clients Many recipients of pandemic funding who will need a single audit have never had one before and may not know what is required.

From the American Institute of CPAs

12 The next normal: preparing for a post-pandemic fraud risk landscape A troubled economy and the shift to remote work brought on by COVID-19 have created new opportunities for fraud.

By James D. Ruotolo

30 TECHNOLOGY

Four steps to successful data transformation To achieve a business intelligence solution that delivers everything you need and more, you must establish the right processes.

By Kenneth F. Kortas, CPA, and Kate Brown

16 Labor law update New membership of the National Labor Relations Board will bring about new interpretations of the National Labor Relations Act.

By Robert J. Simandl, CPA, JD, and John A. Rubin, JD 20 The tech-driven audit approach A tech-driven audit approach can help auditors work more efficiently and generate greater value to clients.

By John Colthart

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32 FINANCIAL PLANNING

Roth conversion planning Advising and assisting seniors and retirees with Roth conversion planning should involve several key considerations.

By Lucas L. Petzold, CPA, MST, JD

30 Departments 3 Outlook | chair’s letter 4

In Touch | president & CEO’s message

10 Kudos | members in the news 24 Welcome | new members 29 Memorials | departed members

34 TAXATION

Maximizing charitable-giving tax benefits Donating appreciated stock vs. making a qualified charitable distribution.

By Brian Ellenbecker, CFP, EA, CPWA, CIMA, CLTC

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2021-2022 WICPA OFFICERS/BOARD MEMBERS Chair Angela C. Thomas, CPA

On Balance is published five times a year by the Wisconsin Institute of Certified Public Accountants (WICPA). Change of address should be sent to: Membership, W233N2080 Ridgeview Pkwy, Suite 201, Waukesha, WI 53188; Phone: 262-785-0445 or 800-772-6939; Fax: 262-785-0838; email: comments@wicpa.org. Statements and opinions expressed are those of the authors and not necessarily those of the WICPA. Publication of an advertisement does not constitute an endorsement of the product or service by On Balance or the WICPA. Articles may be reproduced with permission. © Copyright 2021 On Balance.

Join us online!

Chair-elect Steven A. Pullara, CPA, CGMA Past Chair Wendi M. Unger, CPA Secretary/Treasurer Lucien A. Beaudry, CPA, JD Directors Jeff Dewane, CPA, CGMA, CMA, MBA John R. Heindel, CPA Ruth A. Kallio-Mielke, CPA Kyle R. Stephens, CPA Stacy A. Stinson, CPA

INSIDE STAFF

President & CEO Tammy J. Hofstede Design & Layout Brett Stallman Advertising Sue Daniels Editor Marcia Tillett-Zinzow Printing Delzer

AICPA Council Ryan J. Hanson, CPA, CGMA Neil R. Keller, CPA/ABV, CVA

Join the WICPA Educational Foundation Board!

The WICPA Educational Foundation is seeking members to serve on its board of directors.

Some of the opportunities include: • Assisting in efforts to attract students to the profession.

• Providing strategic governance in accordance with the WICPA Educational Foundation mission.

• Acquiring new leadership skills.

The WICPA Educational Foundation plays a pivotal role in supporting programs to improve awareness and perceptions by educating students and educators about the exciting opportunities available to accounting professionals.

To apply, visit wicpa.org/EFBoardApplication through Feb. 28, 2022.

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Questions? Contact tammy@wicpa.org.

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OUTLOOK | CHAIR’S LETTER “If we are to survive change, we must continue to find and develop talent, to re-evaluate our business models, to evolve existing skills and to fill the pipeline.”

A Call to Adapt and Thrive

By Angela C. Thomas

E

very October, the AICPA brings together a representative group of CPA members and affiliates from across the U.S. to discuss the most important topics facing accounting and tax professionals and to set the path for the future of the profession. While I missed the in-person meetings this year, I appreciate that emerging technology allowed us to gather virtually and share information to effect change.

our business models, to evolve existing skills and to fill the pipeline. It is up to us now to promote accounting as a rewarding career to attract the best and brightest to the profession. One way to help increase our numbers is by getting involved in or contributing to the WICPA Educational Foundation, which focuses on improving awareness and perceptions of the profession and promoting careers in accounting.

The AICPA message this year was “Adapt and Thrive.”

Businesses that will thrive are those that rise to meet market demand. Prospective employees are looking for flexibility, culture, belonging, fulfillment, opportunities for advancement and work-life balance.

Providing a voice for the profession in government is also important. In order to maintain a long-term focus on our political awareness efforts and build relationships, members of the WICPA board will be meeting with our Wisconsin members of Congress. As representatives of the WICPA and our profession, we will reiterate that we are here to help, advise and provide guidance. When we make these connections, we establish relationships that can be helpful if and when issues arise that may impact us and our businesses.

One imperative we face is working to develop diversity, equity and inclusion (DEI) within the profession.

According to U.S. Census data reported by the AICPA, minorities make up 40% of the population but comprise only 14% of the CPA profession. The AICPA suggests the following five key efforts to enhance DEI in our profession: 1. Understand the business case for DEI. 2. Provide support and flexibility for women in the profession.

3. Address biases, sense of belonging, and implications on advancement and retention.

4. Maintain accountability through measurement and the establishment of goals.

5. Support diverse students (high school and college) and young professionals.

One of the best opportunities and most challenging aspects of our work is the constant of change. To paraphrase from the AICPA meeting: If we are to survive change, we must continue to find and develop talent, to re-evaluate

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One way to strengthen our voice is by contributing to the WICPA Campaign for Political Awareness (CPAC) and Legislative Involvement Fund (LIF). CPAC and LIF strive to protect the interests of CPAs, accounting professionals, clients, organizations and the public. You also have the opportunity to join the WICPA Public Policy Committee and regularly meet with your peers and Wisconsin state senators and assembly representatives.

As CPAs, we take the next steps, always evolving — and continuing to “Adapt and Thrive” together.

Angela C. Thomas, CPA, is the expenditure and revenue accounting section chief for the Wisconsin Department of Natural Resources and the 2021–2022 chair of the WICPA board of directors. Contact her at 608-318-3881 or angela.c.thomas@gmail.com.

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IN TOUCH | PRESIDENT & CEO’s MESSAGE “You can help make a real difference in our common goal of promoting the profession and helping populate the CPA pipeline.”

Many Ways to Give Back to Your Profession

By Tammy J. Hofstede

W

ith year-end approaching and a new year waiting in the wings, I wanted to remind you of the opportunities members have that can impact students and educators in Wisconsin and help populate the CPA pipeline in the process.

facing the CPA profession. More than 3,000 copies are circulated on college campuses and to high school educators each fall and spring. If you would like to write an article for CPA2b, contact the editor at mtzinzow@icloud.com. Members can gain CPE credit for the time they spend writing articles.

The WICPA Educational Foundation plays a pivotal role in supporting programs to improve awareness and perceptions by educating Wisconsin students and educators about the exciting opportunities available in the accounting profession. Many members are unaware of the number and variety of activities the Educational Foundation supports, so I am describing some of them here. More activities are described at www.wicpa.org/give/ foundation, and you can contact me directly (tammy@wicpa.org) for additional information.

DECA & FBLA: DECA and FBLA are professional business organizations that prepare high school students for careers in business. The Educational Foundation sponsors an informational booth for students at the annual state competitions in the spring, and members also participate in judging the competitions.

Accounting Career Awareness Grants: Each year, more than $50,000 in Accounting Career Awareness Grants are awarded by the Educational Foundation to Wisconsin teachers who attend the Educator Accounting Symposium and create programs, projects and curriculum to promote accounting as a career.

Accounting Program for Building the Profession (APBP): The Educational Foundation supports the APBP training for Wisconsin teachers to encourage and assist with providing a high-quality accounting curriculum for students.

College Scholarships: Each year, the Educational Foundation awards college scholarships to qualified accounting students who are working toward the 150-hour requirement needed to receive their CPA license.

College Speaking Engagements: WICPA members share their experience with college students about accounting career opportunities and their own career paths at college career fairs, CPA panel discussions, accounting club and class presentations and other events at two- and four-year colleges throughout the state.

CPA2b Student Magazine: The biannual CPA2b provides information on accounting careers, the CPA Exam and issues

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Educator Accounting Symposium: Firsthand information from accounting professionals is provided to educators at the annual Educator Accounting Symposium, where they receive curriculum ideas, tools to better serve their students and the opportunity to apply for an Accounting Careers Awareness Grant.

High School Speaking Engagements: Through the High School Speaking Program, WICPA members promote the accounting profession by making presentations about their careers and various opportunities in the accounting profession. The WICPA can help you find a speaking opportunity in your locale.

Junior Achievement BizTown & Finance Park: BizTown, held at Junior Achievement’s Kohl’s Education Center in Milwaukee, takes elementary school students into the world of business. During their day at Junior Achievement’s BizTown, students learn what it takes to create and run a business, as well as how to manage money. Junior Achievement’s Finance Park combines in-class learning with a day-long visit to a fully interactive, simulated town where students in grades 8–12 are introduced to personal finance and career exploration.

Junior Achievement Career Days: Students from grades 7–12 are given the opportunity to interact with professionals from a variety of careers, including accounting, at their schools. Students learn about career paths, personal stories, educational decisions and how to apply skills learned in in the classroom to the world of work.

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New CPA Banquet: Each year, the Educational Foundation sponsors the New CPA Banquet, which honors newly licensed CPAs and celebrates their hard work, dedication and the achievement of earning the CPA designation.

Reading Makes Cents & The Big Read: In conjunction with National Financial Literacy Month and Money Smart Week, the Foundation helps fund the cost of money-themed books for statewide financial literacy events for children in pre-K through grade 4 and also provides these books to WICPA members to take to their children’s classrooms.

SecureFutures: Formerly known as “Make a Difference – Wisconsin,” SecureFutures is a program in which WICPA members can share their expertise and make positive connections with high school students while teaching them financial literacy skills and empowering them to make sound financial decisions.

Students & Leaders Network: This program provides live web conferencing and digitally stored interactive video discussions on topics that provide insight on accounting careers.

With this program, WICPA members can reach high school classrooms across the state with one recorded presentation.

Wisconsin Educators of Business & Information Technology: WEBIT is an annual state convention for high school business teachers. The Educational Foundation

sponsors an informational booth with accounting resources for educators. WICPA members also present an accounting session for educators.

Young Entrepreneurial Scholars (YES): The YES program is a collaboration between the National Association of Black Accountants (NABA) – Milwaukee Chapter, the WICPA and the pre-college divisions of UW-Oshkosh and UWMilwaukee. YES gives qualified minority high school students a career-enhancing experience through exposure to accounting and other business professions during a six-week internship.

The opportunities YES offers can help more minorities to become CPAs and increase diversity, inclusion and equity in the profession.

Now is the time to make your tax-deductible contribution or sign up for activities to participate in during the coming year. You can help make a real difference in our common goal of promoting the profession and helping populate the CPA pipeline. Whether you make a contribution of time or treasure, you are giving back to your profession in a meaningful way.

And the rewards are immeasurable.

Tammy J. Hofstede is president & CEO of the WICPA. Contact her at 262-785-0445 ext. 4518 or tammy@wicpa.org.

YOU have the opportunity to impact thousands of students and educators in Wisconsin.

Through your contribution to the WICPA Educational Foundation, you can help us reach students and educators in high school and college to create awareness about the accounting profession.

As the end of 2021 draws near and you are thinking about tax planning, consider donating to the WICPA Educational Foundation.

Questions? Contact Tammy J. Hofstede, WICPA President and CEO at tammy@wicpa.org.

To contribute, visit wicpa.org/EF.

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Photography by John Sibilski

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By Marcia Tillett-Zinzow

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arold C. (“Hal”) Trescott, CPA, was told by his first accounting professor that he’d never make it as an accountant. Yet he went on to graduate from the University of Wisconsin School of Business with Senior Honors and a Bachelor of Business Administration (BBA) degree in accounting — 27th in a class of 311 students in the business school.

“My life has been an interesting series of events,” he said.

Trescott graduated from Horicon High School in 1956 and began his college studies that fall as a pre-law student at the University of Wisconsin–Madison. After his first year there, he realized he would have to go to work to earn the money needed to finish college. His father had passed away during Trescott’s sophomore year in high school, so the family was unable to help with tuition, and there were no student loan programs at that time. If he wanted an education, he would have to get a job. As it turned out, he had quite a few.

“The first year and a half, I worked at a Clark Oil & Refining gas station along Highway 41 just south of Fond du Lac,” he said. Later, he would also work for a restaurant in Madison, canning factories in Lomira and Rosendale, a Volkswagen parts department in Fond du Lac, an interior decorating business in Fond du Lac, a teacher’s assistant in Oshkosh and the Department of Natural Resources in Madison. He also spent some time working for the United States government.

“In those days, the Selective Service System maintained a military draft. Since I was going to have to go into the military sooner or later, I decided to make it sooner,” he said. “I signed up with the Wisconsin National Guard for six months of active duty at Fort Leonard Wood, Missouri, and five and a half years of reserve duty to follow.”

Defying fate After his six months in Missouri, Trescott had enough money to return to school. Since he was living in Fond du Lac by that time, he decided to commute to Oshkosh State College for his sophomore year. It was 1959, and Oshkosh was not yet a part of the UW system. It also did not yet have an accounting program. “The school had only 2,000 students,” Trescott recalled.

“At the rate I was going, it was going to take me forever to graduate from college — so I switched my major to business and planned to return to Madison for my junior year,” he said.

Accounting was required to get into business school, so Trescott enrolled in Beginning Accounting, taught by a former attorney from New York state. The professor felt

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“

I told the professor I had to have accounting to get into the School of Business at Madison, and he said, ‘ You’ll never make it. You have no flair for accounting.’

I told him I wasn’t going to quit. he had too many students in the class; so, in an effort to make the class more manageable, he gave a particularly tough exam in the beginning of the semester, hoping to weed out half the students. Trescott, along with numerous others, failed the exam and was told to drop the course — but he refused.

“I told the professor I had to have accounting to get into the School of Business at Madison, and he said, ‘You’ll never make it. You have no flair for accounting.’ I told him I wasn’t going to quit,” Trescott said.

Determined to succeed, he bought a second textbook and studied every topic in both texts for the rest of the semester.

He ended up with an A in Beginning Accounting, worked for his professor part time and got another A in Intermediate Accounting. “I liked accounting so much that I decided that’s what I wanted to do for the rest of my life,” he said.

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Standing 400 feet tall, the U.S. flag Trescott stands in front of is a signature of Acuity's headquarters. You can see the Acuity Flag, which is considered to be America's largest free-flying flag, from I-43 near Sheboygan.

Off he went to UW-Madison School of Business as a junior, hoping to major in accounting. Because he had transferred in from Oshkosh, he was required to get an A or B in Advanced Accounting to become an accounting major. Trescott aced the course. He subsequently became active in Beta Alpha Psi and was doing quite well. But fate intervened once more and forced him out of school again.

Completing goals “In the second week of my senior year at Madison, I was recalled as a reservist into the U.S. Army,” Trescott said. “I was one of about 150,000 men who were placed on active duty when the Communists built the Berlin Wall.”

After a year of active duty at Fort Lewis, Washington, Trescott returned to UW–Madison to finally finish his education. With all the interruptions, it took seven years to complete. But in 1963, he earned his BBA in accounting and graduated with Senior Honors. “Only a couple of accounting students got that,” he noted.

After graduation, he went to work for Arthur Young in Milwaukee as a junior accountant in audit. “Those were the days of the Big Eight accounting firms, but the Milwaukee office was small,” Trescott said. “We only had about 22 employees.” Arthur Young would later merge with Fontaine & McCurdy and ultimately with Ernst and Ernst, becoming Ernst & Young, the Big Four firm we know today.

“When I went to work for Arthur Young, they had a two-week training class for young accountants in Lake Forest [Illinois]. People came from all over the Midwest for it,” Trescott explained. “Everybody had all the questions answered

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beforehand. They had worked on it for months and months — but nobody in the firm had told me you were supposed to have it done beforehand, so I did terribly! They ranked people, and because I did so badly, I was ranked near the bottom. My firm said, ‘Who is this guy? We thought he was pretty good, but he did terrible in Lake Forest!’ They thought I’d never make it, but then I passed the CPA Exam in one sitting. They couldn’t understand how someone who did so poorly at Lake Forest could do that.”

Trescott descended from a family of small business owners: farmers, dress shop owners, jewelers, radio shop owners and the like. So when he decided to leave Arthur Young — after getting married — and strike out in a new direction, he went to work for a small CPA firm in Sheboygan. “We discussed my having a financial interest in the firm in the near future, but that never happened,” he said.

Answering when opportunity knocks In 1966, he answered a Wall Street Journal ad for a director of accounting and statistics position at Heritage Mutual Insurance Co. in Sheboygan. He got the job.

“I took over the accounting and finance function at the age of 27,” Trescott said. “The company was small, and I did it all: tax returns, financial statements, some of what today would be termed actuarial work, balancing the bank accounts, budgets, reinsurance analysis — a wide variety of tasks. It was just me and two other, noncollege-trained employees.”

At that time, the company had fewer than 100 employees and had a net worth of $1 million. Today, it’s known as Acuity Insurance — the name was changed in 2001 —and its net worth is $3.1 billion. The company has more than 1,200 employees

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locally and another 200 in other states, according to Trescott. He has watched it grow and been part of its success for the last 56 years — most recently as a member of the board of directors.

“When I joined a small, little-known company in Sheboygan, some of my accounting friends asked me what I was doing.

‘That company will never go anywhere,’ they said. It would not survive in the world, as they saw it,” Trescott recalled.

“Since then, the large companies they were with have gone out of business, and Acuity marches forward. It is a well-known, important employer in Wisconsin and a major contributor to local charitable causes,” he said.

Photo provided by Acuity Insurance

Trescott retired in 2004 from his final post as senior vice president – finance and a few years later became a consultant to the board of directors Audit Committee. In 2010, he was appointed as a member of the board of directors and currently serves on three board committees, including Audit. Trescott pointed out that it’s unusual for someone to spend that many years with a company and then spend more years with the company on the board.

“Nobody does that. I’m 83!” he exclaimed. Then he smiled, “It’s been a real adventure for a guy with no flair for accounting.”

Marcia Tillett-Zinzow is a Wisconsin freelance writer and editor.

Contact her at mtzinzow@icloud.com.

A 65-foot Ferris wheel is one of the perks Acuity employees can share with their families. Trescott poses with it on the cover of this issue.

Check out our featured member benefit providers Bank-A-Count

Becker

Bank-A-Count Corp. is a leading national printer of business checks located in central Wisconsin with an unwavering focus on low prices and exceptional customer service. We offer a variety of complementary items, including deposit products, preinked stamps, and custom print and mailing services.

Since launching its CPA Exam Review over 50 years ago, Becker Professional Education has been committed to providing students the tools they need to prepare, pass and be empowered to excel – on exam day and at every level of their professional careers.

Duff & Phelps, a Kroll business Duff & Phelps, a Kroll business, is the global advisor that protects, restores and maximizes value for clients in valuation, corporate finance, investigations, disputes, cybersecurity, regulatory compliance and other governance-related issues. We work with clients across diverse sectors, mitigating risk to assets, operations and people.

These affinity partners and more can be found at wicpa.org/discounts. wicpa.org

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kudos

Joseph Boucher

Mitch Davis

Jeffrey Lemmermann

Joseph Boucher, CPA, MBA, JD, founding shareholder of the Madison law firm of Neider & Boucher S.C., was awarded the Excellence in Entrepreneurial Education award by the Wisconsin Technology Council, recognizing his career in law, accounting and teaching and his decades-long support for the startup and investing sectors in Wisconsin.

Erin Breber, CPA, a senior manager with SVA Certified Public Accountants, has been named a Rising Star in Finance and Accounting by the Biz Times of Milwaukee.

Mitch Davis, CPA, MPA, a senior manager with Wegner CPAs, has been named a Rising Star in Finance and Accounting by the Biz Times of Milwaukee.

Connie DeKemper, CPA, has been hired by Yavapai County, Arizona, as their new finance director.

Patti Schauer

Tim Seidel

Tom Weller

Mark Scheunemann, CPA, owner at Legacy Accounting & Financial Services LLC, Wisconsin Rapids, has joined the Prevail Bank board of directors.

Tim Seidel, CPA, MPA, has been promoted to partner with Wegner CPAs. He has been with the firm since 2009.

Tony Staniak, CPA, will be promoted to CFO at Quad/ Graphics Inc., effective Dec. 31.

Eli Steimle, CPA, was promoted to regional president at Bank First, headquartered in Manitowoc. In April, Steimle founded Hipp Juice, an unpasteurized cold press juice bar committed to enhancing the health movement in in the Manitowoc community.

Keith Jochims, CPA, chief financial officer at QPS Employment Group, Brookfield, has been named a 2021 CFO of the Year by The Milwaukee Business Journal.

Joseph Toonen, CPA, COO/CFO of PRN Home Health & Therapy LLC, has joined the board of directors of Worzalla, an employee-owned printing company specializing in highquality custom products, including books for children and coffee table books.

Paul Krejcarek, CPA, MBA, has joined Fisher Barton, a leading metallurgical science innovation company based in Watertown, as chief financial officer.

Matt Vanderloo, CPA, a principal and shareholder with SVA Certified Public Accountants, has been promoted to CEO of the SVA Companies.

Richard J. Kutch, CPA, has joined the Racine CPA firm of Berkley, Iselin, and Lotz SC as a new partner.

Robert Wedel, CPA, MBA, has joined the law firm of Davis|Kuelthau s.c. as director of finance.

Jeffrey Lemmermann, CPA, CITP, CISA, CEH, information assurance auditor and consultant for SynerComm Inc., on Wednesday, Nov. 3, presented a session on “Business Email Compromising Terrorism” as part of UW–Green Bay’s “Countering Terrorism” community training program.

Tom Weller, CPA, PMP, has been promoted to senior director at Oracle, in the Advanced Customer Services business unit.

Mark Linzmeier, CPA, owner of Linzmeier Business Solutions LLC, shared his insights in an interview for a recent article in Ag Update, an online source for agriculture and farming news.

Christine Robinson, CPA, has been promoted to partner in the audit and assurance practice at Deloitte in Milwaukee.

Patti Schauer, CPA, MBA, SPHR, chief financial officer at Core Creative Inc., Milwaukee, was named a CFO of the Year by The Milwaukee Business Journal.

ORGANIZATION NEWS Hawkins Ash CPAs, a full-service regional CPA and business advisory firm, announced in August that Roberts, Ritschke & Tyczkowski, Ltd. (RR&T), Neenah, would be joining them effective September 1. The addition of RR&T expands Hawkins Ash to seven offices in Wisconsin, three offices in Minnesota, 20 partners and more than 160 professionals serving clients throughout the United States.

Want your new job, promotion or award mentioned in Kudos?

H Email your announcement and photo in JPG format to mtzinzow@icloud.com. H

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The Next Normal: Preparing for a Post-Pandemic Fraud Risk Landscape

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By James D. Ruotolo

n organization’s fraud risk landscape is constantly evolving, and ongoing assessments can be the key to protecting your organization from all sorts of fraud threats. But this moment is different — and it’s critical for companies to take steps to be proactive.

State of fraud

Fraud is like an iceberg: Its deceptive nature means that it is unknown until discovered, and some of its greatest threats lie beneath the surface. The Association of Certified Fraud Examiners (ACFE) estimates that organizations around the world lose an estimated 5% of

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Fraud is like an iceberg: Its deceptive nature means that it is unknown until discovered, and some of its greatest threats lie beneath the surface. their annual revenues and funding to fraud. Applied to the 2019 Gross World Product (GWP), this amounts to $4.3 trillion in potential global fraud losses. Due to new government funding and the changing work environment, fraud is on the rise in frequency and in cost. In fact, a recent joint survey by

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Grant Thornton and ACFE revealed that 71% of organizations expect the overall level of fraud to increase over the next year.

On top of that, risks continue to shift as technology and security evolve, which provides threat actors the opportunity to create and sell new methods and penetrate organizations from the inside or outside. To combat these threats, organizations need to keep an eye on both internal and external fraud threats to devise a mature anti-fraud framework.

While the pandemic has brought attention to many external fraud schemes, internal fraud risks remain. Statistically, the most well-respected employees are four times more likely to commit fraud than someone with a poor reputation. Fraudsters are also more likely to have been with their organizations a long time — and the longer they’ve been there, the more they tend to take. Surprisingly, only 4% of perpetrators have a prior fraud conviction, so background checks alone are not sufficient to pick up red flags. The most important tip for profiling fraudsters is to be emotionally intelligent and be aware of employees who display increased rationalizations for behaviors, changes in lifestyle or uncommon patterns like increased privacy or social anxiety.

Fraudsters are displaying increased technical know-how, and they have expanded their arsenal to more commonly include credential-stuffing, web conference hacks, creating fictitious audio and video (“deep fakes”), DIY fraud “how-to” guides and system hacks wherein they sell stolen data on the dark web. In fact, dark-web activity has skyrocketed over the past few years. The dark web offers anonymity to bad actors to conduct their illicit business. Every second, 69 records are stolen or lost — and a majority are ending up for sale in darkweb marketplaces to be bought and used for future crimes.

A troubled economy and the shift to remote work brought on by COVID-19 has also created new fraud opportunities.

Added financial pressure due to unemployment and rising health care costs may cause some fraud actors to rationalize that they are protecting their families or trying to make ends meet. They might even feel entitled because they’ve been working hard under stressful conditions.

Cyberthreats Cyberthreats in particular are on the rise as over 70% of the workforce operates remotely. Cyber and ransomware attacks are up substantially since the onset of the pandemic. A lack of control over home networks, inconsistent monitoring, increased personal device usage, relaxed enforcement and a shift to crisis management have all contributed to the rise in cyberfraud. Knowing the growing trends and profiles of fraudsters can help improve fraud risk identification and the maturity of an anti-fraud framework.

Fraud risk identification Understanding the types of fraud your organization is vulnerable to is imperative to developing the right antifraud controls. A key first step is developing a fraud risk map that identifies potential fraud schemes and other related information for each scheme, such as the type of fraud actor and fraud risk entry points. The map should consider external and internal fraud, whether individual or collusive.

When generating or updating a fraud risk map, it helps to “think like a fraudster” with the Fraud Triangle in mind.

(See graphic.) The Fraud Triangle is a useful model for explaining the factors that cause individuals to commit fraud and can be useful when identifying fraud schemes.

Internal fraud risk Insiders have so much access to data that it’s easy for them to take advantage of organizations. Keeping what we call the Fraud Triangle in mind (more on that later) can help identify these perpetrators early. At some point, at least 85% of all fraudsters exhibit at least one behavioral red flag.

When identifying fraud schemes, consider the perpetrator and the fraud risk entry points (e.g., the function or process the actor capitalizes on to carry out the fraud scheme). And do so in a group — brainstorming sessions on how one can penetrate the organization at every level are a great way to deepen your understanding of the fraud risk landscape. Extrapolating the information into potential fraud schemes can help you effectively understand the types of fraud your organization is most vulnerable to.

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Response to emerging risks Organizations should implement simple, cost-effective anti-fraud controls to mitigate their fraud risks. The top control weaknesses are lack of internal controls, lack of management review and the override of existing controls.

These can all be addressed with consistent communication of an organization’s culture and by promoting a clear tone at the top, as well as performing ongoing evaluations of controls, conducting reviews and revisions of fraud detection programs, and the regular communication of fraud risks.

Another key tool is fraud training and awareness. The trainings should cover topics such as behavioral red flags, the punishment for dishonest acts, how to report fraud, how fraud damages the organization and how to identify financial and transactional red flags. These trainings could save organizations money, support employee morale, alert employees to red flags, support the tone at the top, strengthen prevention and detection and reinforce reporting channels.

To further enhance your anti-fraud framework, you can also utilize industry-leading frameworks such as the Committee of Sponsoring Organizations’ Fraud Risk Management Principles1 and “The Anti-Fraud Playbook”2 developed by the Association of Certified Fraud Examiners in coordination with Grant Thornton. These two guides provide practical tools for building impactful anti-fraud programs.

Call to action It is up to organizations themselves to be aware of their fraud risk landscape and to adapt to the ever-changing environments they operate in. Complacency will always be a silent killer, but understanding the weak links and the evolving threats can help stop the bad guys from winning at the end of the day. Lastly, communication is key, and a great corporate culture is a core anti-fraud asset. At all levels, your employees’ morale has a direct impact on the success of your anti-fraud program. Your employees have a voice, and they can play a major role in detecting and preventing fraud. You should listen to them.

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James Ruotolo, CFE, is a senior manager in the fraud & financial crimes practice at Grant Thornton LLP. He is a certified fraud examiner, the co-inventor of two patented fraud detection models, and a frequent author and speaker on fraud analytics technology.

Contact him at james.ruotolo@us.gt.com.

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https://www.coso.org/documents/coso-fraud-risk-management-guide-executive-summary.pdf https://www.acfe.com/uploadedFiles/ACFE_Website/Content/fraudrisktools/Antifraud-Playbook.pdf

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LABOR LAW UPDATE New administration initiatives employers should be aware of

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I

By Robert J. Simandl, CPA, JD and

John A. Rubin, JD

nterpretations of the National Labor Relations Act (NLRA) have ebbed and flowed based on the composition of the National Labor Relations Board (NLRB). With the Biden administration selecting its NLRB membership, there will be changes in interpretation coming.

On August 12, new General Counsel (GC) Jennifer Abruzzo issued General Counsel Memorandum GC 12-04, Mandatory Submissions to Advice,1 identifying issues that she believes warrant a fresh look. The memo identifies areas where change in interpretation can be expected and serves as a roadmap for employers to review. NLRB case law is expected to follow GC Abruzzo’s priorities and goals in establishing labor policy. Below are several of the key issues suggested for re-evaluation.

Employee handbook rules The NLRB has long held that facially neutral workplace rules — rules that do not on their face restrict union or protected concerted activity — may be unlawful if they interfere with employees in exercising their NLRA rights. Prior precedent often subjected many common workplace rules to close scrutiny on a case-by-case basis. In The Boeing Co.,2 in an effort to provide clarity and predictability, the NLRB created a new framework for determining the legality of workplace rules and handbook policies, placing the rules into three categories: (1) presumptively lawful rules, (2) rules requiring a case-by-case analysis and (3) unlawful rules. Under this new framework, the NLRB classified a number of rules as presumptively lawful on subjects such as confidentiality, nondisparagement, social media, media communication, civil and respectful conduct, offensive language and no-camera rules.

GC Abruzzo plans to re-examine cases involving the application of Boeing. Employers can anticipate that workplace rules on subjects such as those listed above will be subject to closer scrutiny.

It is important for employers to review their employee handbooks and published policies for areas of exposure. Simple changes in language may mean the difference between a fully enforceable policy and a policy that will subject the employer to damages for unlawful conduct. Remember, this is not a 1 2

https://www.nlrb.gov/guidance/memos-research/general-counsel-memos 365 NLRB No. 154 (2017)

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union/employer issue, and the NLRB is a viable source for the adjudication of employee termination and dissatisfaction issues in nonunion employer situations.

Management rights and unilateral changes Collective bargaining agreements (CBA) routinely include management rights clauses that allow the employer to take unilateral action with respect to certain terms and conditions of employment without first bargaining with the union. For many years, the NLRB employed a “clear and unmistakable waiver” standard3 for determining whether a CBA permitted an employer’s unilateral change under a management rights clause.

This standard required that the CBA contain a great degree of specificity as to the matter on which the union has agreed to waive its decision rights as well as its waiver of the right to discuss the consequences of the decision on the employees.

If the CBA failed to specifically refer to the type of employer decision at issue, the NLRB’s position was that no clear and unmistakable waiver existed. This exacting standard rendered most management rights clauses unenforceable unless they contained an arguably unrealistic degree of specificity.

This standard was abandoned in MV Transportation.4 There the NLRB abandoned the clear and unmistakable waiver standard in favor of a “contract coverage” test, allowing a CBA to be interpreted using ordinary principles of contract interpretation to allow an employer to take unilateral action. For example, under the contract coverage standard, if a management rights clause permits the employer to implement rules and policies, the employer may be able to make unilateral changes on a wide range of workplace policies without bargaining with the union. By contrast, under the clear and unmistakable waiver standard, specificity as to the waived right would be required, at a minimum, to take unilateral action.

It is anticipated that GC Abruzzo will restore the clear and unmistakable waiver standard. Employers should be cautious in relying upon generalized language in a CBA to take unilateral action. A re-evaluation of bargaining strategies and objectives should be undertaken to assess the potential risks associated with unilateral acts in the operation of the business.

Other areas of anticipated change The Trump-era NLRB-issued decisions were perceived to be more employer-friendly. GC Abruzzo will likely seek to overrule or limit those decisions in favor of greater protection of employee rights. GC Abruzzo will also be seeking to revisit other precedent to expand the scope and coverage of the NLRA. Charges will be brought against employers who may have relied on past NLRB pronouncements. Employers are well advised to revisit policies and practices to assess the following:

3 4

See Provena St. Joseph Med. Ctr., 350 NLRB 808 (2007).

368 NLRB No. 66 (2019).

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• Lawfulness of workplace investigative confidentiality rules5 • Scope of activity viewed as protected for mutual aid and protection6 • Employee use of employer email and IT systems for union organizing7 and communications • Lawfulness of separation agreements containing confidentiality and nondisparagement clauses8 • Degree and type of evidence of motive required to prove an unlawful discharge or discipline9 • Standards for the extent to which offensive or abusive conduct remains protected10 • Definition of “employee” versus “independent contractor”11 • NLRA jurisdiction over religious institutions12 and employee rights to organize • Whether and under what circumstances an employer, when presented with “authorization cards,” may decline to recognize the union and insist on an election13

Revisiting current policies and positions, including policies on maintaining union-free status, may minimize liability or undesired outcomes.

See Apogee Retail LLC d/b/a Unique Thrift Store, 368 NLRB No. 144 (2019); see also Watco Transloading, LLC, 369 NLRB No. 93 (2020).

6 See Alstate Maintenance, LLC, 367 NLRB. No. 68 (2019).

7 See Rio All-Suites Hotel and Casino, 368 NLRB No. 143 (2019).

8 See Baylor University Medical Center, 369 NLRB No. 43 (2020).

9 See Tschiggfrie Properties, Ltd., 368 NLRB No. 120 (2019); see also Electrolux Home Products, 368 NLRB No. 34 (2019).

10 See General Motors, 369 NLRB No. 127 (2020).

11 See Velox Express, Inc., 368 NLRB No. 61 (2017).

12 See Bethany College, 369 NLRB No. 98 (2020).

13 See Joy Silk Mills, Inc., 85 NLRB 1263 (1949).

5

Robert J. Simandl, CPA, JD, is a shareholder with von Briesen & Roper s.c. Contact him at 262-923-8651 or rsimandl@ vonbriesen.com. John A. Rubin, JD, is an attorney in the Labor and Employment Section at von Briesen & Roper. Contact him at 262-923-8655 or jrubin@vonbriesen.com.

Mandatory COVID-19 vaccines in the workplace On July 6, 2021, the U.S. Department of Justice (DOJ) opined that mandatory workplace vaccine policies are permissible under the federal Food Drug and Cosmetic Act (FDCA). Section 564 of the FDCA permits covered employers to impose COVID-19 vaccination as a condition of employment even when the vaccine is subject to Emergency Use Authorization. This opinion applies to both public and private employers outside the context of the armed forces.

The DOJ emphasized that vaccine mandates are not coercive: They do not strip employees of their rights to refuse or accept a vaccine.

Rather, they provide employees with information on the conditions for employment with the employer.

Although Section 564 states that recipients must be informed of

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“the option to accept or refuse administration” of the vaccine, Section 564’s mandates are merely informational. The employer meets the requirements of law under the FDCA when it provides notice to the employee of the employer’s expectations for employment.

As with other conditions of employment, discipline up to termination can be an acceptable consequence for employee refusal to adhere to an otherwise valid employer vaccination policy.

Employees can freely choose to accept or refuse a COVID-19 vaccine but will need to work elsewhere if they refuse vaccination against the employer’s policy. This information should be clearly set forth in the employee communication.

DOJ opinion that are more global in reach. While executive orders can be effective immediately, others will take time to produce legal expectations for employers.

It is suggested that employers evaluate the legal dictates that may be applicable to them and review or set acceptable policies that are consistent with the anticipated requirements for legal compliance.

Now is the time to consider the strategies and expectations to achieve legal compliance. Whether aggressive or passive approaches are desired, an assessment of vulnerabilities and the creation of a plan of action will be crucial for employers in the near future.

— Simandl and Rubin, von Briesen & Roper s.c.

There have been several other federal directives issued since the

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19

Tech-Driven Audit Approach: What You Need to Know

By John Colthart

D

eciding on the best audit approach isn’t a cookiecutter process. While a long-standing relationship with a client or in-depth industry knowledge can give auditors a leg up, defining an effective audit approach requires careful consideration and planning for every engagement.

After all, your audit teams understand that every client is unique. So, deciding on the best ways to approach an audit will be, too. Everything from the client’s objectives and business operations to known or unknown risks, internal controls and much more will determine how you and your team go about any particular audit.

However, there’s something else you may need to think about that often goes unmentioned: the role of technology in your audit approach.

As this pandemic continues to propel widespread digital transformation and standards evolve to embrace new technologies, there is a growing need for auditors to consider updating their audit methodology, too.

After all, a tech-driven audit approach can not only help auditors work more efficiently, but it may also allow them to deliver greater value to their clients. Whether it’s AI auditing software or other financial automation tools, technology

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serves to complement traditional auditing processes and lays a foundation for even better financial insights over time.

How does a tech-driven audit approach differ from a traditional audit?

A tech-driven audit approach considers the use of technology right from the get-go. It means there’s already some level of buy-in from management about auditing technologies, so your people are trained on the tech you’re using. You might even have data-handling processes set up to fully leverage the capabilities of the new auditing solution.

While reaching this level of technological adoption might seem overwhelming, it shouldn’t have to be. With a little support on your side from the right vendor and a solid change management plan, you’ll be able to easily trial new technologies and reach higher levels of adoption at your own pace.

Then, as you go into new audit engagements over time, it’ll become second nature for you to think about the role of technology, how it will complement your existing methodologies and how it may support your resources. From the planning stages right through to completion, you’ll consider how to automate manual tasks, get extra validation and assertion and perhaps even uncover new insights that are buried in the mounds of client financial data.

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In other words, implementing a tech-driven audit approach means you’re thinking ahead about how to best use the technology to deliver a quality audit. And you’re identifying the specific procedures or tasks where the auditing technology will be most beneficial.

What are the key factors to consider in a techdriven audit approach?

Defining a tech-driven audit approach isn’t entirely different than a traditional one. It just requires another layer of consideration about how the technology fits into your methodologies. Below, we’ll explore what a tech-driven audit approach might look like and the areas where technological considerations can be made.

Understanding the client’s business and objectives Whether you use technology in your audit or not, getting to know your client is a given. You’ll need to consider the industry they’re in, their business operations, their audit objectives and other unique factors that pertain to the organization to achieve an effective assessment.

When defining objectives, it’s also important to consider those beyond the financial statement audits. In fact, in a recent Deloitte report, 95% of the 351 C-suite, finance and Audit Committee executives polled said that audits should provide additional value beyond an independent report on the historical financial information. Essentially, clients are looking for deeper insights, analysis and recommendations.

When you implement a tech-driven audit approach, your audit team will be able to automate manual tasks and work more efficiently. That’ll allow you to assign extra resources to added-value services such as helping your client uncover new insights. Using technology, you’re essentially able to broaden your service offering and point your clients toward new opportunities that will positively impact their business.

At this stage, you’ll also need to understand what financial software your client is using and how you’re going to best access the information you need. With all this in mind, here are a few questions to ponder to map out your tech-driven audit: • How will the technology you’re using offer your clients more insights and value beyond the initial scope of objectives?

• Can your auditing technology support remote audits?

Does the technology you have enable easy access to the financial statements and information?

• Does the technology ensure full ownership over the data and keep your client’s financial information secure?

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“

Implementing a tech-driven audit approach means you’re thinking ahead about how to best use the technology to deliver a quality audit.

Conducting the preliminary risk assessments Identifying risks of material misstatement and their relative significance is an integral part of defining your audit approach.

When you have a good understanding of the potential risks at play, you’re better able to plan for and execute a comprehensive and high-quality audit.

At this stage, auditors will look over balance sheets and income statements to spot any obvious inconsistencies. They might also dive into subledger data and run some preliminary testing on journal entries. The challenge here is that a traditional audit approach will leave so much data untouched and unexamined.

In a tech-driven audit approach, this is a key area where your audit technology can really make a difference. For instance, if you’re using an AI auditing platform, you’ll be able to test 100% of your client’s financial data and dive into accounts receivable and accounts payable subledgers to see if any other anomalies stand out. This allows your team to conduct a deeper level of preliminary risk analysis and potentially uncover risks that weren’t on your radar.

Consider the following on risks assessment when building a tech-driven audit: • How can you use your auditing technology to get a clearer picture of the financial risks?

• Does your technology allow you to filter results and dive into your client’s financial data to get a better understanding of those risks?

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• If you save time by automating risk assessment procedures, where else can you apply resources to offer your clients more value?

Evaluating the company’s internal controls Evaluating the effectiveness of the company’s internal control over financial reporting is another critical component in your audit. Your auditors will likely perform a series of tests to validate how well internal controls are being upheld within the company.

In a tech-driven audit approach, the technology can either complement or replicate manual testing procedures to achieve higher levels of assurance. The technology might also point your team to riskier data that will then open up new conversations with your clients about potential weaknesses in internal controls.

For example, our AI auditing software automatically identifies control points to spot high-risk transaction data. The auditing team can also adjust these control points and use other capabilities within the platform to recreate traditional control testing models.

All of this will allow your team to move forward with greater confidence in the audit engagement while ensuring high levels of accuracy and diligence. Here’s more to think about: • Does your technology complement internal control testing or replicate manual processes?

• What control testing models can you effectively carry out using your technology?

• Can you adapt control points and testing to different clients and industries?

Building the plan for the audit engagement Putting together the audit plan outlines why, how and when you’re going to execute the audit procedures. These include everything from the planned nature, timing and extent of risk assessment procedures; controls tests; substantive procedures; and any other relevant audit tasks.

When putting together the audit plan, an auditor will usually provide examples and reports that justify why certain procedures will be critical for the audit. In a tech-driven audit, it’s important to consider how your technology can back up your findings and assessments and help you build a more complete plan.

This could include exporting powerful visual graphs and data that support your audit plan and substantiate the details of specific procedures. Ultimately, this gives the client a snapshot view of where the auditors have identified risks and why certain procedures are warranted.

Here are some tech-focused questions to consider when creating your audit plan:

“

Auditors who stick with the traditional audit approach for fear of change are going to be left behind.

• Does your technology allow you to easily export information to build a better audit plan?

• Can you customize graphs or visuals to support the findings of your preliminary risk assessment?

• Can you easily share information with your client to help steer conversations about the audit plan or other potential opportunities?

Are you ready to embrace a tech-driven audit approach?

The role of technology in audits is growing every day. Not only are more auditors embracing new tools such as AI auditing software to support their audit strategies, but industry standards are also evolving to accommodate higher levels of automation in audit practices. Even the AICPA has announced the Dynamic Audit Solution Initiative, promising to create a new, innovative process for auditing using technology.

Auditors who stick with the traditional audit approach for fear of change are going to be left behind.

John Colthart is SVP of Strategic Insights for MindBridge, a company that supports clients through the technology adoption process and offers value-add services to help reach companywide success.

This article reprinted with permission from the Connecticut Society of CPAs.

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Welcome new members!

Get to know the newest members of the WICPA. August 1, 2021 – September 30, 2021

Matthew P. Adler Meridian Group Inc.

Mary Jo Driscoll RSF Accounting Inc.

Shannon R. Lyster St. Francis Xavier Parish

David J. Barr

Brendan M. Fleming Scribner, Cohen and Co. S.C.

Adam Mabie Quad/Graphics Inc.

Brooke B. Frey

Heidi K. McKibben HSA Bank

Alex J. Barta Skye Financial Services Inc. Gage D. Bean Johnson Controls Inc. Alison J. Berry Acuity A Mutual Insurance Co. Elizabeth A. Black Baker Tilly Erica L. Blumberg Andrea & Orendorff LLP Matthew J. Brannan Vrakas CPAs + Advisors Kaitlin M. Brant Ellsworth Cooperative Creamery Nicole C. Bray Dominican High School Pamela M. Buckley Jonco Industries Kali J. Burmester MBE CPAs LLP Kelly A. Burris Prosperity Payments LLC Sarah E. Campbell BKD LLP John C. Cardoza Continental Properties Company Inc. Richard S. Chisick Jr. SVA Certified Public Accountants S.C. Nana Adjoa S. Coleman Heritage-Crystal Clean LLC Kent T. Cornell UHY LLP Katrina L. Cruz Herrera American Family Insurance Kathryn M. Czarnecki KPMG LLP Emily E. Dambrink Andrew J. DeCheck AbbVie Austin R. Decker Wegner CPAs

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Jayme Frisch Lauren B. Gieschen BDO USA LLP Malisa A. Goss Direct Supply Joseph Grabowski Insight Accounting Robert D. Hanley Ernst & Young LLP Jennifer E. Hinker ENT & Allergy Associates S.C. Ali M. Holmes Badger Liquor Company Inc. Judith A. Jankowski Medical College of Wisconsin Cynthia L. Jensen Cambridge High School Mike Jensen Jensen Tax & Accounting LLC Jaret Jentges BDO USA LLP

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Rachel L. Scott Husch Blackwell LLP

Ruth E. Shibilski SBS Tax, LLC

Casey M. Nelson PPD Development

Jonah D. Sibley KPMG LLP

Joseph R. Novotny PwC

Kirsten Siladi Valor Equity Partners

Samuel Otto Uncle Sam’s Accounting LLC

Kacey M. Spoerl Baker Tilly

Rachel K. Packwood Morrison & Associates S.C.

Elizabeth A. Staaland TIAA Financial Services Madison

Macey M. Patrie S3 AeroDefense Andrew T. Peters

Laura Poupitch University of Wisconsin– Whitewater

Peter T. Kopanon Baker Tilly

Erica L. Schubert Kerry

Molly A. Mundinger Vrakas CPAs + Advisors

Shari L. Kathe RSM US LLP

Caitlin Koepsell Ascendium Education Group

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Marianne M. Serra Walkowicz, Boczkiewicz & Co. S.C.

Melissa Lynn Potts CPA Partners ML LLC

Abigail R. King Wipfli LLP

Matthew G. Scheuers Lakeland University

Clifford M. Mui Baker Tilly

Ian P. Johnson BKD LLP

James R. Kieckhaefer Kieckhaefer Wealth Management Group of RBC Wealth Management

Robert J. Schadrie Lincoln Industries of Wisconsin LLC

Mario Prcic Strohm Ballweg LLP Tracy L. Rancour Jamf Justin J. Reddeman Terry M. Reitz Johnson Controls Inc. Nicole Rice Vrakas CPAs + Advisors Brandon C. Ronning Snap-on Inc. Kevin D. Russell Briggs & Stratton Corp.

John M. Salfer Fiserv Inc.

Grant E. Wheat RSM US LLP Joshua P. Wilberding Baker Tilly Todd Williams Plymouth High School Megan E. Winkel MCL Industries Inc. Jing Xu Spectrum Brands Inc. Michele B. Yeager Rockwell Automation Stephanie A. Yost SVA Certified Public Accountants S.C. Ethan T. Young Lunda Construction Co.

Daniel M. Szczepanek Kalahari Resort & Convention Center Michael J. Tennie U.S. Venture Amy N. Thomas Commercial Horizons Inc. Kim Toussaint Girl Scouts of Wisconsin – Badgerland Council Ronald Van Nuland Nsight Telservices Katelin M. VanBeek Pioneer Metal Finishing Corp.

Leah Vespalec Green Valley Enterprises Inc. Luke R. Wacek Johnsonville Sausage LLC Marissa M. Warzynski Accounting Workshop S.C. Emily Weber WICPA Matthew T. Wettstein Baker Tilly

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Tips for Working With First-Time Single Audit Clients From the American Institute of CPAs

T

he U.S. has seen historic levels of federal funding in response to the COVID-19 pandemic. Various laws, including the CARES Act and the American Rescue Plan Act of 2021, have provided billions of dollars to American businesses, state and local governments and not-for-profits. While this funding has provided relief, especially for nonprofits, it may cause complications for many recipients.

Does your client need a single audit?

Much of the new pandemic funding is subject to single audit rules. Not all recipients of this funding will need a single audit.

However, when a nonfederal entity spends $750,000 or more of federal awards in a fiscal year, a single audit is required.

Many recipients of pandemic funding have never had a single audit before and may not know what is required. Your existing clients may need a single audit for the first time, or you may begin working with new clients who have never even had a financial statement audit before. Here are some tips for you to help your clients through the evolving single audit process.

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Ask clients what funding they have received.

Talk to your clients about what types of funding they have received from the beginning of the pandemic in 2020 to the present. In some cases, you may consider helping them review their grant agreements to identify what is needed on their end and then on your end as the auditor. Additionally, you could email clients with news related to the funding they’ve received or update your website with the most current information.

The sooner your clients know about important and relevant information, the better prepared they will be and the better audit you can perform — so it is a win-win.

Encourage your clients to be proactive and ask questions about funding they have received. For example, one controller contacted her CPA as soon as she knew her organization would receive funding. She knew this funding had stipulations but didn’t know yet that a single audit would be required.

Finding out early in the process was a huge benefit. But many organizations may be unaware of all the requirements in the funding they have received.

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Communicate openly with your clients.

This is a time when having open lines of communication with your clients is especially important. Learning whether your clients have reviewed and truly understand the guidelines for the type of funding they received is key, as well as that they have procedures in place to comply.

Also, clients need to know — even if they are under the $750,000 threshold — that administrative and other requirements of federal funding apply even if a single audit is not needed. For example, the funds may only be spent for certain purposes. This is an important concept for clients to understand.

Be aware of audit quality concerns.

Some first-time single audit clients may be concerned with audit costs because they are required to undergo an additional audit. While cost is always one consideration, in this situation it is also important to focus on the experience of the firm to make sure they are getting the highest-quality audit possible.

“

Many recipients of pandemic funding have never had a single audit before and may not know what is required.

Also, as auditors you have a duty to the public to perform high-quality audits. Single audits have a significant public interest component, as they involve taxpayer dollars, and federal agencies rely on them as part of their administrative responsibilities for determining compliance with the requirements of federal awards. Because of this, audit quality should always be at the forefront of every auditor’s mind.

Because of the complexity of single audits and the necessity of specialized knowledge of their rules and compliance requirements, you should consider whether you should accept a single audit engagement if you do not have experience performing them.

Perhaps you could consider performing the financial statement audit, but other options for the single audit might be to refer your clients to someone else in your organization with the appropriate experience or to another firm that specializes in single audits.

Alternatively, if you have some experience but not much, you could consider engaging another firm to perform a pre-issuance review or other type of consultative assistance to help ensure a highquality audit. You can use the AICPA’s Peer Reviewer Search1 tool to find an auditor to refer your clients to or to look for consultative assistance. Additionally, the AICPA’s Governmental Audit Quality Center (GAQC) has a listing of its member firms, with contact information on its Find A Member2 page.

Make time for continuing education, and pay attention to developments.

Firms should ensure auditors receive the required training for all specialization areas. For example, generally accepted government auditing standards (referred to as the Yellow Book) require auditors who perform single audits to maintain their competency through CPE hours and topics listed in the 2018 Yellow Book.

If you take on a single audit, there is single audit learning available through the WICPA and the AICPA, among other sources, to help you gain the fundamental knowledge you need.

Regarding the new COVID-19 funding, you may want to pay close attention to any training provided by federal agencies. wicpa.org

Additionally, you can access the AICPA’s GAQC3 website, in particular its COVID-19 Resource page,4 which outlines many resources. You may also want to contact other firms on their single audit and pandemic-related resources. It’s useful to speak to your peers about what they’re doing and learn from their experiences. Keeping on top of things is important.

Looking ahead The pandemic has drastically changed work in many industries, and the accounting profession is no different. The next few years will see many more single audits being performed by more public accounting firms across the country.

Keeping up with all these changes while continuously striving to be that trusted adviser for your clients is tough. In these times, in addition to all the other tips above, it is especially important to be mindful of staff well-being.5 Organizations need to provide support to staff so they can remain engaged and avoid burnout. Focusing on well-being can enable staff to do their jobs better, which allows them to better serve their clients and, ultimately, contributes to enhancing audit quality.

These are challenging times in the single audit arena for sure.

But the tips above should help provide a pathway to success. https://peerreview.aicpa.org/reviewer_search.html https://www.aicpa.org/interestareas/governmentalauditquality/membership/findamemberfirm.html 3 https://www.aicpa.org/interestareas/governmentalauditquality.html 4 https://www.aicpa.org/interestareas/governmentalauditquality/resources/singleaudit/covid?cid=refe rral:Blog:AICPAInsights:SingleAuditTips:aicpa&utm_medium=referral&utm_source=Blog&utm_ campaign=AICPAInsights&utm_content=SingleAuditTips 5 https://blog.aicpa.org/2020/05/wellness-in-mind-resources-for-self-care.html 1 2

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ATTENTION! THE CURRENT CPE REPORTING PERIOD ENDS DEC. 31, 2021 Reporting Period: Jan. 1, 2020 – Dec. 31, 2021 CPE Requirement: 80 total CPE credits Ethics Requirement: 3 Ethics CPE credits

Visit wicpa.org/CPErequirements for more information about CPE requirements.

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• Automatically tracks WICPA formal learning activities • Add any non-WICPA CPE courses • Print reports for any reporting period

To get started, visit wicpa.org/cpetracker

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wicpa.org

memorials Jeffrey T. Dejno, CPA (1969 – 2021)

Jeffrey T. Dejno, CPA, 51, of Eau Claire, died suddenly on Saturday, Sept. 4, at his residence. Dejno graduated from Chippewa Falls High School in 1987 and served honorably in the U.S. Marine Corps. He graduated from St. Cloud University with a degree in accounting, became licensed as a CPA and at the time of his death was employed as a senior manager at Wipfli LLP in Eau Claire. Dejna is survived by his parents, two sisters, his fiance and her three daughters, as well as a nephew, nieces, aunts, uncles, and other relatives and friends.

Gary Olsen, CPA, MBA, PhD (1944 – 2021)

Gary Olsen, CPA, MBA, PhD, passed away Friday, Sept.

10, at age 77. Olsen graduated from Green Bay West High School in 1962 and eventually earned bachelor’s, master’s and doctoral degrees. He became licensed as a CPA in 1975.

Olsen taught business and accounting courses at Carroll University for 43 years and was active in the WICPA Accounting Education Committee, serving a one-year term as vice chair of the committee in 2018–2019. He also served on the WICPA Educational Foundation board of directors from 1985 to 1988. Olsen served in leadership roles across several other organizations, including as district governor for the 64 Rotary clubs in Southeastern Wisconsin. In addition to his WICPA membership, he was active in the Association of Higher Education, World Affairs Council, American Institute of CPAs, FEI and Brookfield Soccer Club. Olsen is survived by his wife of 51 years, Kathy; two sons; four grandchildren; a sister; and many other relatives and friends.

James W. Parsons, CPA (1941 – 2021)

James W. Parsons, CPA, a lifetime member of the WICPA, passed away Thursday, Aug. 5, at age 80. He earned his accounting degree from UW–Madison, eventually becoming a CPA, and went to work with his father in their fatherson accounting practice, Parsons and Parsons, in Sturgeon Bay. The company was in business more than 50 years, until Parsons’ 79th birthday, when he decided to retire. He was an institution in the community of Sturgeon Bay and Door County, where he inspired many young accountants, bookkeepers and support staff to start and succeed in their careers. He is survived by his four children, two grandchildren, a brother and two sisters.

Thomas G. Ragatz, CPA, JD (1934 – 2021)

Thomas G. Ragatz, CPA, 87, a lifetime member of the WICPA, died on Friday, Sept. 3. Ragatz earned a bachelor’s degree in accounting from UW–Madison in 1957. He spent a year in the U.S. Army and then returned to UW–Madison to study law, earning his JD in 1961. After graduation, he clerked for Wisconsin Supreme Court Justice George Currie before joining the law firm of Roberts, Boardman, Suhr, Bjork & Curry; and then in 1978 moved to Foley & Lardner, where he rose to become managing partner of the Madison office. Ragatz was an active member of the Wisconsin State Bar Association and served as president of the Dane County Bar Association and on the board of governors of the Wisconsin State Bar. In 2002, he retired from practice. Active in the Madison business community, Ragatz served as president of the United Way of Dane County Foundation, director of the foundation for Madison Public Schools, president of the Business and Education Partnership, president of the Agrace Hospice Foundation, director of the Methodist Hospital Foundation, president of the Madison YMCA and president of the Wisconsin Sports Development Corporation, president of the Madison Club, foundation president of the First Congregational Church and a member of the University of Wisconsin Foundation.

He is survived by his three sons and their spouses, seven grandchildren, a great-grandchild, two siblings, a sister-inlaw and a close circle of extended family.

Donald E. Watzke, CPA (1939 – 2021)

Donald E. “Don” Watzke, CPA, of Oregon, passed away on Sunday, Aug. 29, at age 82. Watzke graduated from Portage High School in 1958 and received a Bachelor of Business Administration degree from UW–Whitewater.

After graduation, he worked for Wipfli LLP in Wausau for six years and then Certco Inc. in Madison for 40 years, the last 26 years as the company’s president, retiring in 2008.

Watzke was a member of both the WICPA and AICPA as well as a member of the Knights of Columbus since 1965 and International Association of Turtles since 1980. He is survived by four children, eight grandchildren, four greatgrandchildren and a sister.

If you are aware of a member obituary and believe it should be included in Memorials, please send a copy of the obituary or contact Marcia Tillett-Zinzow at mtzinzow@icloud.com.

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{ Technology | Data transformation }

FOUR STEPS TO SUCCESSFUL

DATA TRANSFORMATION

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By Ken Kortas, CPA and

usines intelligence (BI) and data analytics technology have been available for years, but many organizations continue to use spreadsheets to manipulate data and make business decisions.

Why? Some organizations have found that, as time-consuming as it is to put reports together and as difficult as it is to keep track of different versions of Excel documents, this process has worked for them in the past.

They’re comfortable with the status quo.

Other organizations were Kate Brown excited about BI tools, jumped into a solution, found themselves underwhelmed by the dashboards they created or stuck with technology that didn’t work for them, and fell back into old habits.

But the world is only growing more digital, and the amount of data organizations collect annually continues to increase. Business leaders can’t afford to spend time building information rather than acting on it.

If your organization is losing valuable productivity to onerous spreadsheet creation but is hesitant to look at a data analytics solution, the true first step here is understanding that business intelligence is more than data visualization.

Dashboards are just the tip of the iceberg. To achieve a BI

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solution that delivers everything you need and more, you must invest the time upfront to establish the right processes.

Here are the four phases to achieving data transformation:

1. Data discovery Planning is the key to success. The data discovery phase is where you identify the opportunities, capabilities, metrics, stakeholders and platforms needed to enable data transformation.

Essentially, you must understand what information/metrics are important to running and innovating your business, who will be consuming and using this information and what ways they will consume it. Will they want to drill down into or manipulate the data? Which key performance indicators are “nice to know” and which are “need to know”?

2. Data curation and platform modernization Once you know what data you want to use, you then need to know where it’s located. Do you need to connect data from different systems and sources? Can you connect directly

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to a system, or are there data points you need to create or manually cleanse?

The data curation and platform modernization phase is all about leveraging technology to connect to, extract, cleanse, structure and store your data in an automated fashion, eliminating all manual steps in your reporting pipeline.

A modernized platform removes human dependencies, ensuring insights and information are timely and accurate.

3. Data quality and analytics governance Speaking of cleaning up data, how will you make sure your information is accurate? Your accountants make sure the data within financial statements is accurate through the reconciliation process, but what about other sources of data?

The data quality and analytics governance phase helps you establish sufficient structures around compliance, architecture, policies and controls, security, processes and more to ensure your data can be trusted and you can use it to make strategic business decisions.

leveraging your data going forward. Data transformation is a journey, and taking a methodical and proven approach ensures you maximize your wins along the way.

Plus, once you’re up and running with a BI solution, you’ll be able to redirect the employees responsible for manually building reports to more value-added and fulfilling activities.

If your organization has struggled with the adoption of business intelligence solutions in the past, look for a partner who specializes in business intelligence and data transformation. They can help you work through each phase and take an improved approach to developing dashboards that will be far more leveraged within your organization.

Ken Kortas, CPA, is a partner at Wipfli LLP in Milwaukee and the practice leader for Wipfli’s Business Solutions group. Contact him at kkortas@wipfli.com or 414-431-9326. Kate Brown is a business intelligence and analytics manager at Wipfli in Minneapolis. Contact her at kbrown@wipfli.com or 952-548-3326.

4. Data literacy and awareness The final phase focuses on your employees’ abilities to read and use data effectively. Change management comes into play here. Ensuring employees know how to use the dashboards and datasets to elevate their decision-making framework is critical to getting them to adopt the BI platform. Train your employees on how to use filters, drilldowns, etc.

Also ensure that everyone has the same definition of each term you’re using. For example, “cost” and “utilization” are terms that commonly have several definitions within an organization. Only with a consistent definition can the end user fully understand how to act on the data they’re looking at.

To put it into perspective, the manager in charge of sales needs to have the same definition of “leads” and “opportunities” as the rest of the sales team. That way, if they look at a dashboard and see the sales pipeline is decreasing, they can talk with the team to understand why lead flow is down and what needs to happen to solve this issue.

The benefits of the methodical approach to data transformation Data visualization is the tip of the iceberg, so by executing on the four phases underneath the surface, you can help ensure you not only build effective dashboards that your employees will use and appreciate but also position yourself to easily scale to broader and more innovative ways of

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Results that transform Empowering individuals and organizations to dream bigger and accomplish more — time and again.

wipfli.com

Audit | Tax | Consulting | Private Wealth

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{ Financial Planning | Roth conversions }

Roth Conversion Planning Assisting seniors and those approaching retirement

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PAs are facing a common question from both seniors and clients approaching retirement: How much should the client put toward Roth conversions this year?

Advising and assisting seniors and retirees with Roth conversion

By Lucas L. planning should involve several key Petzold, CPA, considerations that can affect clients MST, JD in different ways. First, clients enrolled in Medicare or planning to be enrolled within two years may have their premiums increased due to the higher income brought about by Roth conversions. Second, clients receiving Social Security who are in low tax brackets may be impacted by Roth conversion income, as more Social Security income becomes taxable as the clients’ income rises.

Third, clients may be pushed into higher income tax and capital gains tax brackets due to additional Roth conversion income. Finally, clients will face the decision of how to pay for the taxes due on the Roth conversion, including the impacts of using available cash or retirement funds. While for some clients the answer may be simple, for many clients the answer is more complex.

Medicare premium brackets Clients who are enrolled in Medicare and those within two years of enrolling in Medicare should be made aware of Medicare premium brackets that are tied to the client’s federal adjusted gross income (AGI). If income from a Roth conversion bumps the client into a higher Medicare income bracket, the client’s Medicare premiums may rise two years later, as the taxpayer’s 2021 AGI will determine their Medicare

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“

Advising and assisting seniors and retirees with Roth conversion planning should involve several key considerations that can affect clients in different ways. premiums for tax year 2023. The increases to the client’s Medicare premiums are called Income-Related Monthly Adjustment Amounts (IRMAAs). CPAs and advisors will want to take note of the current brackets and advise clients accordingly. Information on Medicare IRMAAs can be found on the Medicare.gov website.

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Social Security taxability Next, clients who receive Social Security income and who are in low tax brackets may need to consider the effects of the additional income from Roth conversions on the taxability of their Social Security income. The percentage of Social Security that is taxable is based on a sliding scale formula whereby higher incomes result in a higher percentage of taxable Social Security income. Therefore, in a situation in which the client would not normally have a high percentage of taxable Social Security income, additional income from Roth conversions could increase the amount of taxable Social Security income, which can result in an unexpected tax cost for the Roth conversions.

As with the Medicare premium issue, CPAs will need to advise clients on the effects Roth conversions may have on the taxability of Social Security and assist them in determining if Roth conversions are still worthwhile. The IRS provides a Social Security taxability calculator on its website (www.IRS.gov).

Ordinary income and capital gains tax brackets Third, the client’s current-year income should be reasonably estimated so that Roth conversions can be fine-tuned to fit within desired tax brackets. Roth conversion planning is especially successful when Roth conversions made postretirement and prior to age 72 are used to smooth out income and maintain lower tax brackets, thereby reducing rising tax brackets that can be caused by large RMDs later in the client’s life. Clients who are planning on selling off longterm investments for large capital gains should also consider a Roth conversion’s impacts on the capital gains tax brackets.

Under the Tax Cuts and Jobs Act of 2017, the capital gains tax brackets are no longer linked to the ordinary income brackets for tax years 2018 through 2025. Capital gains tax brackets and rates for 2021 can be found at www.IRS.gov.

How will the taxes be paid?

Finally, clients will need to determine how they will pay the taxes on the Roth conversion. Clients with large amounts of cash may not have an issue, while clients with low liquidity and funds in investments will need to consider the investment and tax impacts of selling investments to pay for the taxes.

While Roth conversions are not subject to the early withdrawal penalty, clients under age 59½ may face early withdrawal penalties if they distribute additional amounts from the traditional IRA to pay for the taxes on the Roth conversions.

Also, clients age 59½ or older may need to consider whether to reduce the original planned Roth conversion by the amount of taxes owed or to withdraw additional amounts for tax withholding/estimated payments, keeping in mind that additional amounts distributed drive income up even more.

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Conclusion CPAs assisting retirees and seniors approaching retirement with Roth conversion planning will find that each client is different and requires a specific analysis. Roth conversions can be very advantageous to clients over the long term, but various factors need to be considered and communicated to the client so that the client is making their decision with the best information.

First, CPAs must understand how to assist clients currently enrolled in Medicare and those who will be enrolled within two years, who may be negatively impacted by increases in income caused by the Roth conversion. Next, proper analysis should be provided to clients who receive Social Security income and are in low tax brackets, who may be required to pay more income taxes on their Social Security income due to Roth conversion income.

Third, clients will need assistance managing both ordinary income and capital gains tax brackets as their income rises from the Roth conversion. Finally, clients should be informed of their options for paying the taxes due on the Roth conversion as well as the tax impacts of each option.

So how much should the client put toward Roth conversions this year? The answer is “It depends.” With the tax reductions of the Tax Cuts and Jobs Act of 2017 set to expire at the end of 2025 and discussions beginning in Congress regarding future tax increases, many are expecting higher tax brackets for all taxpayers in 2026. Therefore, Roth IRA conversions may cost less during the next several years from a tax perspective and are becoming a vital tax strategy to seniors, retirees and those approaching retirement. CPAs will want to make sure they are well-equipped to meet their clients’ needs as both clients’ tax situations and the tax landscape continue to change.

Lucas L. Petzold, CPA, MST, JD, is the tax leader for Kollath CPA, with offices in Madison, Brookfield, and Sauk, WI. Contact him at 414-751-6847 or at lpetzold@kollathcpa.com.

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{ Taxation | Charitable donations }

Maximizing Charitable Donation Tax Benefits Donating appreciated stock vs. making a qualified charitable distribution: Which option is right for your client?

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By Brian Ellenbecker, CFP, EA, CPWA, CIMA, CLTC

or clients who are charitably inclined, there is an abundance of options available to donate money to charity while also maximizing the tax benefit.

Two of the most popular strategies are donating appreciated stock and making a qualified charitable distribution from your IRA. Which of these options should you consider for your clients?

Before we discuss the appropriateness of each technique, it’s important to understand the key aspects of each.

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Qualified charitable distributions (QCDs) An IRA owner can donate up to $100,000 directly from their IRA to charity. The distribution also counts toward their required minimum distribution (RMD). For the distribution to be considered a QCD, be sure your client’s withdrawal meets the following conditions: • The IRA account holder must be age 70½ or older as of the date of the distribution.

• The distribution must be made to a public charity.

Donor-advised funds, private foundations and supporting organizations do not qualify.

• The payment would have to otherwise qualify as a charitable contribution.

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• The distribution must be a direct transfer from the IRA trustee to the charity. It cannot be a reimbursement to the IRA owner for gifts made from other funds.

When preparing the IRA owner’s return, the income is not reported as part of adjusted gross income (AGI) — nor is it claimed as a charitable deduction. This guarantees that the IRA owner receives the maximum charitable benefit from the IRA withdrawal.

Excluding the IRA distribution from income lowers AGI. This can help high-income taxpayers avoid the 3.8% Medicare tax on investment income, paying higher Medicare premiums due to Medicare’s Income-Related Monthly Adjustment Amount (IRMAA) and paying tax on a portion of Social Security benefits. It also makes it easier to deduct expenses subject to AGI floors, such as medical expenses.

Some taxpayers don’t get an immediate tax benefit for at least a portion of their donations because they either claim the standard deduction or their donations exceed the cap on charitable deductions. By recommending a QCD to these clients, they can exclude the IRA withdrawal from income, which provides the same benefit as deducting the donation.

QCDs are not automatically reported by the IRA custodian.

Because 1099-Rs do not include information on QCDs, ask your clients who are over 70½ if they made any QCDs when you are preparing their return to ensure they receive the tax benefit. Otherwise, they may forget to tell you, and you’ll have no other way of knowing they made a QCD during the year.

When reporting a QCD on your client’s Form 1040, the full amount of the IRA distributions is reported on Line 4a. On line 4b, enter only the taxable amount (line 4a less QCDs and any other nontaxable amounts) and enter “QCD” next to this line.

Donating appreciated securities Donating appreciated securities is often preferable to donating cash. For securities held for more than one year (366+ days), not only does your client potentially receive a charitable deduction for the market value; they also avoid paying tax on the capital gain. If the security is held for one year or less, the deduction is limited to the cost basis of the investment. If your client wishes to donate a security with a capital loss, it’s better to sell the stock first, realize the tax loss and then donate the cash.

To receive the tax benefit, your client must itemize deductions. In addition, if the charitable donation itself is the expense that pushes the client over the standard deduction amount, only the portion that exceeds the standard deduction is deductible. The maximum amount that can be deducted when donating appreciated securities is limited to 30% of AGI or 20% when donated to certain entities like private foundations.

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“

Some taxpayers don’t get an immediate tax benefit for at least a portion of their donations because they either claim the standard deduction or their donations exceed the cap on charitable deductions.

Choosing between the two Making a QCD is generally more appealing than donating cash; however, it may be inferior to donating appreciated securities from the portfolio.

On the surface, donating appreciated securities looks like a slam-dunk strategy. Advantages include: • Realizing two tax benefits — you can deduct the market value as a charitable deduction AND avoid paying tax on the capital gain. Typically, the larger the embedded gain in the security donated, the greater the advantage to donating that appreciated security vs. making a QCD. • Appreciated securities can be contributed to a donoradvised fund, a charitable trust or a private foundation, but QCDs cannot.

There are situations where the benefit of a QCD outweighs the benefit of donating appreciated stock, however. Consider making a QCD for at least a portion of your clients’ charitable gifts if any of the following situations apply:

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35

{ Taxation | Charitable donations }

• The added income from the RMD triggers other tax consequences, such as:

over for up to five years. To avoid needing to carry over the deduction, consider making a QCD for the charitable gift amount above the deductibility limit.

o Causing more Social Security income to be taxed. o Subjecting the client to higher Medicare premiums due to IRMAA. o Reducing AGI-based deductions like medical expenses. o Reducing or eliminating income-based tax credits. o Subjecting investment income to the 3.8% Medicare surtax on net investment income.

• Your client claims the standard deduction. At least a portion of their charitable expenses will be used to push them above the standard deduction amount. Only the portion of charitable expenses that exceeds the standard deduction amount (when combined with other deductible expenses) provides a tax benefit.

It’s important to remember that any charitable planning strategy should be implemented only if your client already plans to donate to charity. If they are not charitably inclined, they are financially better off not donating to charity, keeping the money for themselves and forgoing any tax deduction.

Be sure the client’s charitable giving strategy coordinates with other aspects of their financial plan, such as their estate plan and their income tax plan. Working closely with their other professionals, including their financial planner and estate planning attorney, helps ensure all phases of the client’s financial life are managed as a cohesive strategy.

Brian Ellenbecker, CFP, EA, CPWA, CIMA, CLTC, is a financial planner with Shakespeare Wealth Management in Pewaukee.

Contact him at 262-814-1600 or brian@shakespearewm.com.

• The size of the gift of appreciated securities exceeds the 30% AGI deductibility limit. The excess amount can carry

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37

{ Member Benefits | Committees }

COMMITTEE HIGHLIGHTS Joining a WICPA committee or serving on a board is a great way to network with like-minded individuals, sharpen communication abilities, gain leadership skills, form business relationships and friendships and strengthen your brand. They are also ways to “give back” to the profession that has given you so much. Sharing talent as a volunteer enhances the CPA profession while helping others achieve ambitious goals.

The Federal Taxation, Public Policy and Wisconsin Taxation Committees, all highlighted here, are currently accepting volunteers. To join a committee or to find out more about any other volunteer opportunities, contact Tammy Hofstede, WICPA president & CEO, at tammy@wicpa.org or 262-785-0445, ext. 4518.

FEDERAL TAXATION COMMITTEE

The Federal Taxation Committee regularly engages in dialogue with the IRS; discusses new developments in federal taxation matters; and keeps WICPA members informed of new developments in tax authority, practice and procedures.

Chair Lucas Petzold, Tax Leader, Kollath & Associates CPA LLC

Rebecca Jungwirth

Board Liaison Lucien Beaudry, Equity Shareholder, Reinhart Boerner Van Deuren s.c.

Tricia Knight, Partner, RitzHolman CPAs

Members Gordon Adler, Sole Proprietor, Gordon J. Adle CPA Kari Apel, CEO & President, Apel Associates Inc.

Ronald Berman, Shareholder, Neider & Bouche S.C. James Brandenburg, Tax Partner, Sikich LLP

Michael Donahue, President, Donahue & Associates LLC Brian Ellenbecker, Financial Planner, Shakespeare Wealth Management Inc. Christie Felton, Director, Wipfli LLP Scott Franklin, Partner, Kohler and Franklin CPAs

Jessica Gatzke, Shareholder, Scribner, Cohen and Company S.C.

Tyler Gold, Tax Associate, Baker Tilly Janet Hartung Renfert, Porter & Sac CPAs S.C.

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Matthew Kleinow, Partner, Wipfli LLP

Deborah Kossow Nicholas Lascari

Terri Lillesand, Tax Principal, CLA Robert Mathers, Shareholder, von Briesen & Roper s.c.

Holly Muehl-Pett, Manager, Hawkins Ash CPAs LLP

Christopher Olson, Senior Manager, KerberRose S.C. Douglas Patch, Shareholder & Tax Team Leader, Godfrey & Kahn S.C. Christopher Rosborough, Senior Director, RSM US LLP Michael Scholz, Partner, Wegner CPAs

“

Our committee meets regularly to discuss current federal tax issues and tax law changes affecting CPAs and their clients. Committee members often communicate with state representatives to provide opinions on pending legislation and potential impacts. The group is balanced with experienced professionals as well as new associates and works as a great sounding board for whatever federal tax issue troubles you today. We are welcoming new members and encourage your participation to pass on a tradition of collective brainstorming and sharing of tax wisdom.

— Lucas Petzold, Committee Chair

Tania Sinha, Tax Analyst, Fiser Inc. Michael Slye, Partner, Gordon J. Maier & Compan LLP

Jeffrey Stoub, Tax Manager, CLA

Brenna Truesdale, Senior Manager, Grant Thornton LLP

Brad Voght, Partner, Reilly, Penner & Benton LLP

Jonathon Wendorf, Partner, MBE CPAs LLP

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PUBLIC POLICY COMMITTEE

The Public Policy Committee is vigilant in monitoring public policy issues that impact the profession and in recommending and implementing appropriate actions and responses to our state’s elected representatives and other policy-making bodies.

Chair Angela C. Thomas, Expenditure & Revenue Accounting Section Chief, Wisconsin Department of Natural Resources

Jeffrey Kowieski, Partner, Wipfli LLP

Board Liaison Jeff Dewane, Assistant Controller, Vinton Construction Co.

Edwin Miller, Senior Accountant, Entry Fee CCRC Div, Brookdale Senior Living

Members William Ahlstrom

Thomas Alberte, Independent Tax & Incentives Consultant, CPA Tax & Incentives Services LLC

Kari Apel, CEO & President, Apel Associates Inc. Stanley Babicz, Principal, CLA

Kyle Beld, CFO, Integrity Grading & Excavating

Ryan Maniscalco, Office Managing Partner, Baker Tilly

Tricia Nielsen, Principal, CLA

Emma Pilon, Income Tax Manager, Kohls Corp.

Steven Pullara, Tax Partner, BDO USA LLP John Rasche, Public Relations Manager, WICPA John Reinhart, CFO, Bear Development LLC

Robert Cottingham, Partner, Wipfli LLP

Charles Roedel, Audit Manager, City of Milwaukee Office of the Comptroller

Paul Fischer, Jerry Leer Professor of Accounting, Director of Accounting, UW–Milwaukee Lubar School of Business

Matthew Schaefer, Vice President Credit Officer, Bank of Wisconsin Dells

Gerald Denor

Karin Gale, Principal, CLA

Jessica Gatzke, Shareholder, Scribner, Cohen and Company S.C.

Jean Hansen, SVP-Finance / CFO, Manitowoc Tool & Manufacturing LLC Ryan Hanson

“

Nicholas Lascari

If we want public policy to truly address the needs and the concerns of the public, then we —“the public” — need to engage. Let your elected officials know what is important to you and your community by joining the WICPA Public Policy Committee. The committee encourages everyone to work together to find solutions that are timely and address our priorities. The WICPA will provide the opportunity to discuss solutions with your peers and your legislators.

— Angela C. Thomas, Committee Chair

Michael Ruby, Managing Shareholder, KerberRose S.C.

Frederick Sitzberger, Shareholder/ CFO, Sitzberger & Company S.C.

Keana Spencer, Chief Tax Strategist Denise Vandenbush, Financial Projects Manager, City of Waukesha Finance Department

Theodore Hart, CPA, Theodore E. Hart LLC Sherri Huff, Owner, Huff Consulting LLC

Matthew Kleinow, Partner, Wipfli LLP

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{ Member Benefits | Committees }

WISCONSIN TAXATION COMMITTEE

The Wisconsin Taxation Committee regularly engages in dialogue with the Wisconsin Department of Revenue; discusses new developments in Wisconsin taxation matters; and keeps WICPA members informed of new developments in Wisconsin tax authority, practice and procedures.

Chair Tiffany Davister, Senior Manager, Ernst & Young LLP Board Liaison Ruth Kallio-Mielke, Managing Director, Deloitte & Touche LLP Chair Kari Apel, CEO & President, Apel Associates Inc.

Jennifer Janecek, Director – Tax, Alliant Energy Corp.

Henry Jasper, Director, MBE CPAs LLP Brian Kelley, Director – State & Local Tax Services, Sikich LLP

Richard Kollauf, Principal, Trusts & Estates, SVA Certified Public Accountants S.C.

Morgan Blount, Financial Advisor, Portfolio Advisor, Merrill Lynch Wealth Management

Steven Koritzinsky, Director, CLA

Craig Cookle, Partner in Charge of SALT Group, Wipfli LLP

Andrew Mathes, Senior Manager, KerberRose S.C.

Nick Boegel, SALT Managing Director, BDO USA LLP

Jack De Young, Sole Proprietor, Jack E. De Young CPA

Barbara DeBaere-Poppy, Sole Proprietor, Poppy CPA Jeffrey Dvorachek, Partner, Hawkins Ash CPAs LLP

Michelle Eno, Shareholder, KMA Bodilly CPAs & Consultants S.C. Sarah Evans, Director, CLA

Linda Feirn, Partner, Wipfli LLP

Alyssa Geracie, Senior Manager, Baker Tilly W. Richard Gerhard, Sole Practitioner, W. Richard Gerhard CPA LLC Michael Gordon, Senior Tax Manager, Deloitte & Touche LLP

Douglas Gross, Partner, MBE CPAs LLP

Gerri Kroepfl

Kenneth Larsen, Sole Proprietor, K A Larsen Consulting LLC

“

The Wisconsin Taxation Committee meets regularly to discuss state tax issues that affect CPAs and their clients. Committee members interact with the Wisconsin Department of Revenue and keep WICPA members abreast of the state tax landscape. Both experienced professionals and newer members are welcome in the group.

— Tiffany Davister, Committee Chair

William Mayer, Partner, RitzHolman CPAs

Caz Muske, Assistant City Administrator, City of Clintonville

Nicholas Newhouse, Manager, Grant Thornton LLP Thomas Nichols, Shareholder/ Attorney, Meissner Tierney Fisher & Nichols S.C. William Nolan, Executive Director, Ernst & Young LLP Daryl Ohland, Owner / State and Local Tax Consultant, NTWR Consulting LLC Jodi Payne, Tax Manager, SVA Certified Public Accountants S.C.

Zachary Rieboldt, Partner, RSM US LLP

James San Fillippo, SALT Managing Director, BDO USA LLP Richard Scott

Paul Senger, Signing Director, CLA

Ricardo Sevilla, Tax Manager, Focus CPA Sali Sheafor, TAP Consulting LLC

Tania Sinha, Tax Analyst, Fiserv Inc.

John Healy

Emma Pilon, Income Tax Manager, Kohls Corp.

Michael Slye, Partner, Gordon J. Maier & Company LLP

Laura James, Tax Manager II – State Audits, Kimberly-Clark Corporation

William Rewolinski, Tax Advisor, Chortek LLP

Allan Young, Shareholder, Fox, O’Neill & Shannon S.C

Holly Hoffman, Owner, Sales & Income Tax Advisory Network

40

On Balance

November | December 2021

Karen Renner, Director of Tax, Catalyst Consulting Group LLC

Brad Voght, Partner, Reilly, Penner & Benton LLP

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