STATE OF MARYLAND
BOARD OF PUBLIC ACCOUNTANCY
MINUTES
DATE: February 3, 2009
LOCATION: 500 North Calvert Street
Baltimore, Maryland 21202
Third Floor Conference Room
MEMBERS
IN ATTENDANCE
Thomas Chambers
Tim Murphy
Raymond C. Speciale
Ella Pierce
MEMBERS ABSENT: H. Terry Hancock
Marjorie Root
Muhammad A. Khan
DLLR OFFICIALS/STAFF: Dennis L. Gring, Executive Director
Linda L. Rhew, Administrative Officer
Alicia Coar, CPA Office Secretary
Matthew Lawrence, Counsel
Norbert Fenwick, CPA Consultant
OTHERS PRESENT: Sandy Steinwedel, MSA
Mary Beth Halpren, MACPA Tom Hood, MACPA
The February 3, 2009 meeting of the Maryland Board of Public Accountancy was called to order by Mr. Chambers at 9:08 AM.
Upon a motion (I) by Mr. Murphy, and seconded by Ms. Pierce, the minutes of the December 2, 2008 meeting was approved unanimously.
REPORTS
Mr. Chambers reported on the continuing discussions by NASBA regarding the 120/150 issue. He reported that 13 state boards have posted comments on the NASBA website representing views on both sides of the issue. Thirty-one states have adopted CPA mobility. Seventeen state legislatures are considering mobility legislation. Eighteen state boards now participate in the Accountancy License Database (ALD). It is anticipated that nine more state boards will be added in the near future.
Executive Director’s Report
Mr. Gring introduced the newest member of the Board’s staff, Alicia Coar. Ms. Coar joined the Board on January 7, 2009. Her responsibilities will be to assist in the management of complaints, continuing education, and peer review.
CPA Board Minutes
February 2, 2009
Page 2
Mr. Gring reported that ninety-two candidates successfully completed the Uniform CPA Exam in the fourth quarter of 2008. Two hundred ninety-one candidates were successful in 2008. To date, 961 candidates have completed the examination successfully since the beginning of computerized testing in 2004. In 2008, 774 applications for CPA Exam candidacy and 3,043 registrations for examination sections were processed. Last year, the Board also processed 550 license and firm applications. Combined 1,324 applications (CPA Exam, License/Permit) were processed in 2008.
Mr. Gring advised the Board that five proposed regulations were published in the January 30, 2009 Maryland Register:
1. Continuing Education – Ethics CPE Requirement each renewal period (COMAR 09.24.02Continuing Education).
2. Continuing Education – CPE credit for teaching, qualification as acceptable CPE and subject matter. (COMAR 09.24.02Continuing Education).
3. Two additional subject areas under Group II Business Subjects – Adding quantitative analysis/methods and computer information systems to qualifying business education subject matter (09.24.05Examinations).
4. Modified language regarding affiliated entities of permit holders – Changes to reflect CPA mobility (09.24.04Firm Permits and Ownership).
5. Repeal of Chapter 07 Notification of Intent to Practice – Section is obsolete as a result of CPA mobility legislation.
The deadline for public comment for these regulations is March 9, 2009. The Board is scheduled to take final action on these proposed regulations at the April 7, 2009 meeting.
Mr. Gring also reported that 1,054 individuals and firms have complied with the peer review reporting requirement to date. The following is a breakdown of the responses:
Peer Review Not Required
(Do not provide peer review mandated services) Firms 19 Individuals 674
Reporting Peer Reviews
Individuals 18 (Report, 6; Engagement, 5; System, 7)
Firms 15 (Report, 2; Engagement, 4: System, 9)
Individuals Claiming Peer Review of Firm
Maryland CPAs 304
Other State CPAs 24
CPA Examination Application Appeals
There were no CPA Examination candidate appeals this meeting.
Education Report
Mr. Speciale reported that 2 regular reciprocal applications were approved for the period December 2, 2009 through February 3, 2009. During this period, two transfer of grades applications were denied, four education reciprocal licenses were denied.
CPA Board Minutes
February 2, 2009
Page 3
Reciprocal Denials
Laura Lee Catlett – Incomplete application.
Jay Edward Estabrook – Incomplete application.
Irwin Sean Kaplan – Incomplete application.
Nadia Crain Khan - Lacked three semester hour course in professional ethics, and one semester hour in business related subjects.
Transfer of Grades Denials
Priya Chandrasekar - Lacked three semester hour course in professional ethics, and one semester hour in financial accounting.
Yuhua Xiang – Lacked 21 semester hours in business related courses.
Upon a motion (II) by Ms. Pierce, and seconded by Mr. Murphy, the Board unanimously approved the Education Report.
Mr. Speciale discussed the issue of the effective date of an educational institution’s accreditation for the purpose of accepting course work and transcripts for examination candidates and license applicants. He proposed that the Board recognize transcripts dated after the effective date of the accreditation of the institution.
Upon a motion (III) by Mr. Murphy, and seconded by Ms. Pierce, the Board adopted Mr. Speciale’s recommendation that Board recognize transcripts dated after the effective date of the accreditation of the institution.
It was a consensus of the Board that evaluations by foreign credential evaluation services be considered on a case by case basis.
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Experience Committee Report
Ms. Pierce presented the Experience Committee Report. Sixty-one (61) Maryland applicants and 11 reciprocal (4 in 10) applicants were approved during the period December 2, 2008 through February 3, 2009.
Upon a motion (IV) by Mr. Speciale, and seconded by Mr. Murphy, the Experience Committee Report was unanimously approved.
Continuing Education Committee
There was no formal committee report.
Peer Review Committee
Mr. Chambers advised the Board that the next COAC committee meeting is in the process of being scheduled. One of the issues to be addressed by the Committee is a recommendation on disciplinary action for licensees who fail to file the peer review form.
CPA Board Minutes
February 2, 2009
Page 4
Communications Committee Report
Ms. Gring presented the Communications Report on behalf of Ms. Root. To date, Board members have provided articles for the first newsletter. Mr. Gring said that the next step is to work with the Department’s information office to set a production schedule. Upon a motion (V) by Ms. Pierce, and seconded by Mr. Speciale, the Communication Committee Report was unanimously approved.
Old Business
The Board considered regulation governing the transfer of grades application process, COMAR 09.24.01.05. Mr. Lawrence explained the proposal. The purpose of the regulation is to modify the license application requirements for individuals who have passed the Uniform CPA Examination in another state. Specifically, this proposed action would limit license application through transfer of CPA Examination grades to individuals who: 1) have not previously held a license in another state; and 2) met the requirements of education and experience as specified in Business Occupations and Professions Article, Title 2, Subtitle 3, Annotated Code of Maryland, at the time of initially applying to take the examination in the other state; or 3) meets the current requirements of education and experience as specified in Business Occupations and Professions Article, Title 2, Subtitle 3, Annotated Code of Maryland.
This proposed action also requires individuals who passed the Uniform CPA Examination more than four years prior to applying for a license through transfer of grades to complete 80 hours of continuing education in compliance with the Board’s continuing professional education regulations before receiving a license to practice certified public accountancy.
Upon a motion (VI) by Mr. Speciale, and seconded by Ms. Pierce, the Board approved this proposal for publication in the Maryland Register.
New Business
There were no new business items considered by the Board.
Correspondence
Mr. Gring briefly discussed a letter sent to Boards of Accountancy from the CBT Examination Steering Group which advised that fees for the Uniform CPA Examination be increased, effective for Maryland candidates in August. The fee increase is attributable to a 4% increase in seat time for taking the exam at Prometric Test Centers. The hourly rate for exam sections will be increased from $23.85 to $24.80. The CSG also advised that exam fees associated with maintenance of the National Candidate Database and AICPA fees for test preparation and grading will not be increased through December 31, 2010.
The Board reviewed letter from other state boards of accountancy regarding nomination for NASBA VIce-Chair. Mr. Chamber recommended that the Board endorse the North Carolina nomination of Walter C. Davenport. It was moved (VII) by Ms. Pierce, and seconded by Mr. Speciale, that the Board endorses Mr. Davenport’s nomination for NASBA Vice-Chair.
CPA Board Minutes
February 2, 2009
Page 5
Executive Session
Upon a motion (VIII) by Ms. Pierce, and seconded by Mr. Murphy, and approved for the Board to go into Executive Session at 10:35 AM 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 11:25 AM.
Mr. Murphy reported that the Board received 6 complaints during the period December 2, 2008 through February 2, 2009. Ten complaints were closed: CPAS 08-0011, CPAS 08-0011, CPAS 08-0032, CPAS 08-0043, CPAS 09-0013, CPAS 09-0015, CPAS 09-0016, CPAS 09-0018, CPAS 09-0020, CPAS 09-0022.
Upon a motion (IX) by Ms. Pierce, and seconded by Mr. Speciale, the Board approved the
Complaint Committee Report.
Upon a motion (X) by Mr. Murphy, and seconded by Ms. Pierce, the Board denied the license application of an applicant for original licensure based upon answers to conduct questions on the application.
Upon a motion (XI) by Ms. Pierce, and seconded by Mr. Speciale, the Board approved the renewal of a licensee, contingent upon quarterly receipt of medical information.
Upon a motion (XII) by Mr. Murphy, and seconded by Mr. Speciale, the Board denied the renewal application of a licensee based upon answers to conduct questions on the application.
Upon a motion (XIII) by Mr. Murphy, and seconded by Ms. Pierce, the Board approved the renewal application of a licensee, contingent upon notification to the Board of any changes in probation status.
NEXT MEETING
Tuesday, March 3, 2009, 500 North Calvert Street, Third Floor, 9:00 AM
Upon a motion (XIV) by Ms. Pierce, and seconded by Mr. Speciale, the meeting adjourned at 11:30 PM.
______With corrections ______Without corrections
______Chairman Date