Board of Public Accountancy s1
STATE OF MARYLAND
BOARD OF PUBLIC ACCOUNTANCY
MINUTES
DATE: June 30, 2010
LOCATION: 500 North Calvert Street
Baltimore, Maryland 21202
Third Floor Conference Room
MEMBERS
IN ATTENDANCE: H. Terry Hancock
Elizabeth S. Gantnier
Tim Murphy
Raymond C. Speciale
Ella Pierce
MEMBERS ABSENT: Marjorie Root
DLLR OFFICIALS/STAFF: Dennis L. Gring, Executive Director
Linda L. Rhew, Administrative Officer
Alicia Coar, Administrative Staff
Matthew Lawrence, Counsel
Norbert Fenwick, CPE Consultant
Shannon Davis, Outreach Coordinator
Stanley J. Botts, Commissioner, O&P
Harry Loleas, Deputy Commissioner, O&P
OTHERS PRESENT: Sandy Steinwedel, MSA
Mary Beth Halpren, MACPA
The June 30, 2010 meeting of the Maryland Board of Public Accountancy was called to order by Chairman H. Terry Hancock at 9:07AM.
Upon a motion (I) by Mr. Murphy, and seconded by Ms. Pierce, the minutes of the May 4, 2010 meeting were approved, without corrections, unanimously.
Chairman’s Report
Mr. Hancock expressed his regret in having to miss the MACPA swearing in ceremonies for newly licensed CPAs on June 28, 2010, due to family obligations. He also noted that Board members and staff should continue to strive to respond as timely as possible to constituent’s inquiries.
Executive Director’s Report
Mr. Gring reported that the 93 examination candidates passed the Uniform CPA Examination in April and May, with some scores still to be processed. A more complete analysis of the exam scores from the April – May examination window will be provided at the August 3, 2010 meeting.
Mr. Gring advised the Board that the Department will reintroduce HB1137 in the 2012 General Assembly in January. The bill provides eligibility to sit for the Uniform CPA Examination upon the attainment of a degree in accountancy, or its equivalent and the completion of 120 semester hours of higher education. Under this legislation, applicants for a license would have to obtain 30 additional semester hours of college credit.
CPA Board Minutes
June 30, 2010
Page 2
In his report on ongoing projects, Mr. Gring also advised the Board that remaining technical issues that have delayed the Board’s participation in the NASBA Accountancy Licensing Database have been resolved. The Board will be participating in this program soon.
The executive director advised the Board that NASBA has created a search committee, chaired by John Peace of Arkansas, to select a new chief operating officer. David Costello, the current NASBA CEO, is retiring in 2012. The NASBA leadership is soliciting recommendations for the qualifications applicants should have to qualify to be considered as the new NASBA CEO. The Board members unanimously agreed that the next NASBA CEO be a licensed CPA who also has significant regulatory experience. The Chair and the executive director will send a letter making these recommendations to the NASBA Search Committee.
Mr. Gring reported that the new continuing professional audit procedures are working well. On April 4, 2010 the Board and other professional boards in the Division initiated a procedure to advise licensees that they were chosen for audit at the time of online renewal. Licensees chosen for audit have been timely filing their CPE documentation and the process is working more efficiently.
Mr. Gring recommended that the Board create a task force that would be charged with modernizing the way licensees report continuing professional education hours. The goal of this project would be to design, develop and implement the contemporaneous reporting of CPE earned by a licensee as well as sponsoring CPE agencies. The Chair indicated that he will ask Marjorie Root to chair this task force. The executive director, the CPE consultant and representative of MACPA and MSA, two of the agencies that provide CPE will also participate on this task force.
CPA Examination Denial Appeals
In EA-0610-01 the Board denied the written appeal of a CPA Examination applicant because the applicant had not completed required courses prior to making application. The applicant must file a new application and meet the education requirements and provide documentation of all courses completed in the United States and in foreign countries, including any evaluation by a foreign education credentials evaluation service.
Upon a motion (II) by Mr. Murphy, and seconded by Ms. Pierce, the Board unanimously voted to deny the application.
In EA-0610-02 the Board denied the written appeal of a CPA Examination applicant due to the applicant’s lack of a three semester hour course in ethics
Upon a motion (III) by Ms. Gantnier, and seconded by Mr. Murphy, the Board unanimously voted to deny the application.
In EA-0610-03, the Board approved the examination application an applicant who provided documentation of education which in the Board’s opinion meets the education requirements for qualification to sit for the Uniform CPA Examination
CPA Board Minutes
June 30, 2010
Page 3
Upon a motion (IV) by Mr. Murphy, and seconded by Ms. Gantnier, the Board voted 3-2 to approve the application. Mr. Murphy, Ms. Gantnier and Mr. Hancock voted in favor of the
motion. Mr. Speciale and Ms. Pierce opposed the motion.
Education Report
Mr. Speciale reported three (3) regular reciprocal application approvals and (1) transfer of grades application approvals. Three regular reciprocal applications were denied as follows:
File RD-06-10-01, the applicant was denied licensure as the result of lacking three semester hours devoted primarily to ethics.
File RD-06-10-02, the applicant was denied licensure as the result of lacking three semester hours devoted primarily to ethics.
File RD-06-10-03, the applicant did not take the Uniform CPA Examination.
Fifteen applications were denied due to the applicant’s failure to provide documentation to support the application.
Mr. Speciale requested the Board to affirm the following policies:
Repeat Courses – Courses taken by an applicant to achieve a greater grade may only be counted once for the purpose of meeting the education requirements for the Uniform CPA Examination.
College Level Examination Program (CLEP) Courses - After discussion, the board reaffirmed that it will continue to accept CLEP credits as evidenced on an appropriately accredited college or university transcript. The board also affirmed that the timing ofCLEPcredits will not be considered when analyzing credits for exam/license candidates. As long as the creditsare not a repeat ofpreviously earned credits, they will be considered.
American Council of Education (ACE) - ACE Military Courses taken by an applicant for the examination must be listed separately with course title and credit received on a regionally accredited college or university transcript to be acceptable toward the education requirements for the Uniform CPA Examination.
Upon a motion (V) by Ms. Pierce, and seconded by Ms. Gantnier, the Board unanimously approved the Education Report.
Experience Committee Report
Ms. Pierce presented the Experience Committee Report. Fifty-nine (59) Maryland applicants and eighteen (18) reciprocal (4 in 10) applicants were approved during the period May 4, 2010 through June 30, 2010.
Ms. Pierce also reported that one (1) reciprocal (4 in 10) application was denied because the applicant lacked 11 months of the required four years of experience.
CPA Board Minutes
June 30, 2010
Page 4
Upon a motion (VI) by Mr. Speciale, and seconded by Mr. Murphy, the Board unanimously approved the Experience Committee Report.
Peer Review Committee Report
The Peer Review Oversight Committee met at former Board Chair Alicia Foster’s office and fleshed out the activities for the summer. The PROC agreed that the work would concentrate this first year in “understanding” the processes in place at MACPA and how it interacts with the AICPA and the Board. In early June - Jim Brackens met with Ms. Foster and Ms. Gantnier and Mary Beth Halpern, of MACPA, to discuss peer review from the AICPA’s perspective. The next meeting is in July where the PROC intends to continue its focus. The PROC will provide a more “formal” report each year to the Board on activities to date, rather than a “official” report only once every two years or so. The PROC is looking for one more member
Upon a motion (VII) by Mr. Speciale, and seconded by Ms. Pierce, the Board unanimously approved the Peer Review Report.
Firm Permit Committee Report
Ms. Gantnier presented the firm permit committee report. She reported one out of state application for a corporate CPA permit was denied because the firm failed to provide the proper documentation to support the application.
Upon a motion (VIII) by Mr. Speciale, and seconded by Mr. Murphy, the Board unanimously approved the Firm Permit Report.
New Business
Upon a motion (IX) by Ms. Pierce, and seconded by Mr. Speciale, the Board approved, unanimously the request of Mr. Mark D. Pesanelli, for a waiver of the reinstatement fee for his license renewal.
Upon a motion (X) by Mr. Murphy, and seconded by Ms. Pierce, the Board approved the waiver of the peer review for August C. Bonsall, CPA, P.A.
The Board discussed correspondence submitted by Hull Company Accountants, Inc. The Board, in conjunction with Mr. Lawrence, determined that Hull Company Accountants, Inc. is not required to have a peer review if it does not perform audits. However, each CPA who works in that firm who performs peer review mandated services must have a peer review. Mr. Lawrence will craft draft opinion to this effect.
The motion (XI) to adopt this opinion was made by Mr. Murphy, and seconded by Ms. Pierce. The motion was adopted unanimously.
The Board considered correspondence from the American College of Forensic Examiners which inquired as to the use of the credential “Certified Forensic Accountant (Cr. FA®) relative to license requirements of the Maryland Public Accountancy Act. Mr. Lawrence advised that the credential “Cr. FA®” issued by the American College of Forensic Examiners is not within the jurisdiction of the Board. However, anyone with that credential who performs
CPA Board Minutes
June 10, 2010
Page 5
an audit in Maryland would also need to be licensed as a CPA. Mr. Lawrence will provide a response to the American College of Forensic Examiners.
Executive Session
The Board, upon a motion (XII) by Mr. Murphy, and seconded by Ms. Pierce, went into Executive Session at 12:00 Noon in the 3rd Floor Conference Room, 500 N. Calvert Street,
Baltimore, Maryland 21202. The purpose of this session was to consult with counsel. This session is permitted to be closed pursuant to State Government Title Section 10-508(a), (7).
Upon completion of the session, the Board resumed its public meeting at 12:46 PM, upon a motion (XIII) by Ms. Pierce and seconded by Mr. Speciale, to conduct the administrative hearing in CPAS 08-0036 – Board of Public Accountancy v. Sema T. Sickler”.
The Board resumed its public meeting at 2:00 PM.
Complaint Committee Report
Mr. Murphy reported that the Board received fifteen (15) complaints during the period May 4, 2010 through June 30, 2010. During this period seven (7) complaints were closed: CPAS 10-0049, CPAS 10-0054, CPAS 10-0061, CPAS 10-0064, CPAS 10-0065, and 10-0066, CPAS 10-0071.
Mr. Murphy also reported that the Board participated in criminal prosecutions against two individuals for misrepresentation to the public that they were CPAs. The prosecutions in Baltimore and Prince Georges Counties resulted in guilty pleas and the imposition of civil penalties.
Upon a motion (XIV) by Ms. Pierce, and seconded by Mr. Speciale, the Board approved the Complaint Committee Report.
Upon a motion (XV) by Mr. Murphy, and seconded by Ms. Pierce, approved accommodations under the Americans With Disabilities Act for a CPA Examination applicant (ref. EX-A0610).
Upon a motion (XVI) by Ms. Pierce, and seconded by Ms. Gantiner, the Board approved 4-0 with Mr. Speciale abstaining, accommodations under the Americans With Disabilities Act for a CPA Examination candidate (ref. EX-B0610).
Upon a motion (XVII) by Ms. Gantnier, and seconded by Mr. Speciale, approved accommodations under the Americans With Disabilities Act for a CPA Examination candidate (ref. EX-F0610).
Upon a motion (XVIII) by Mr. Speciale, and seconded by Ms. Pierce, the Board approved the extension of the Notice to Schedule for a candidate for the Uniform CPA Examination until November 30, 2010 (ref. EX-10610).
Upon a motion (XIX) by Mr. Murphy, and seconded by Ms. Pierce, the Board approved the original license application for an applicant who answered “yes” to a conduct question on the application (ref. EX-D10610).
CPA Board Minutes
June 10, 2010
Page 6
Upon a motion (XX) by Mr. Murphy, and seconded by Mr. Speciale, the Board approved the renewal license application for an applicant who answered “yes” to a conduct question on the application (ref. EX-E10610).
Upon a motion (XXI) by Ms. Pierce, and seconded by Mr. Speciale, the meeting adjourned at 2:04 PM.
NEXT MEETING
Tuesday, August 3, 2010, 500 North Calvert Street, Third Floor, 9:00 AM
__ ___ With corrections ______Without corrections
______Chairman Date