The Centennial Issue of CONNECTIONS - January February 2019 by Alabama Society of CPAs

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SPECIAL MESSAGES 2 | Jeannine Birmingham, President and CEO 3 | Chair Lynne Bozeman 6 | Bryan Hassler, CPA: My 50 Years with the ASCPA

MEET 4 | The ASCPA Board of Directors 34 | Gilbert Forbes “Tup” Dukes, Jr. of Smith Dukes 56 | The Young CPA Cabinet 60 | Vivian Jo Van Chateau, Partner Emeritus of Crow Shields Bailey, P.C. 66 | Edwin Landon “Lanny” Crane of Jackson Thornton 78 | David and Gerry Kassouf of Kassouf and Company, P.C. 88 | Don J. Machen, Retired Senior Partner of Machen McChesney

STORIES OF THE CENTURY 7 | The ASCPA: Heier’s Histories – An Eight Part Series 32 | The First CPA Firm in Alabama: Smith Dukes & Buckalew, LLP. 38 | A View from the Outside and Alongside 48 | The Oldest Firm in Montgomery: Aldridge Borden & Company 52 | You’re Invited to the 100th Annual Meeting and Anniversary Gala 63 | Memberbilia 64 | Jackson Thornton – A Century of Service to Alabama and Beyond

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January/February

MESSAGE FROM JEANNINE

appy Birthday, Alabama Society of CPAs! Over the past year I have thought about many ways to say just that, Happy Birthday, and to express my gratitude to the many who have helped shape the accounting profession in Alabama. I mean, can you imagine a small group of gentlemen sitting around a table and literally drawing straws for their respective CPA certificate numbers? And here we are today, soon to issue Alabama CPA certificate 14,000. My own CPA certificate is number 5429, which means I, too, have seen many changes and tremendous growth during my professional career. So much has happened over our 100year history and I hope you will take time to read or re-read Dr. Jan Heier’s historical overview found on pages 7-28. Dr. Heier has gone above and beyond, spent an inordinate amount of personal time, and honestly has been like family to the ASCPA team while researching and writing our history. I hope you enjoy learning and/or remembering the ASCPA’s history to give context for our celebration of this centennial.

Jeannine P. Birmingham, CPA, CGMA, CAE President and CEO Troy University ____________________________________ Began career in public accounting with a large Montgomery firm, then moved into association work with the Alabama Banking Association. Deputy Director during tenure of Bryan Hassler. Responsible to the ASCPA Board of Directors for all operational and financial aspects of the organization. 21 years at the ASCPA

ASCPA Connections

One hundred years: there is so much to talk about and celebrate. I should first thank (celebrate) all ASCPA members past, present and yes, even our future CPAs, for your support and for your vision in advancing Alabama’s accounting profession. Each of you played an important part in the ASCPA’s past, present and future. Specifically, I extend my personal gratitude to Bryan Hassler who hired me twenty-one years ago and for his faith in my ability to lead. Here’s a personal example of how membership and professional networking are so important. I was taking a CPE class in Dothan with Dr. Tom Ratcliffe, who inquired about my career. Tom had been a major influence on me while I was at Troy University. I told him that I was moving to Montgomery and was searching for a job. Bryan Hassler called me the next day. Talk about networking! What a blessing Dr. Ratcliffe was to me, as was Bryan. We all have those special people in our lives: mentors, visionaries, leaders who helped guide our path. To these two gentlemen I am especially grateful.

Speaking of our past leaders and visionaries, the ASCPA has been blessed with 99 incredible chairmen and chairwomen, who are not only a part of our history but were called to pay it forward. These leaders dedicated great time, talent and resources to help shape the vision, the future of the ASCPA. I have been able to work with 21 of our board chairs, and I have learned something from each of them. Over our history, the board made decisions to offer professional education courses, implement peer review, influence legislation, advance regulations, launch a website, advocate for high school accounting as an advanced course, create a Young CPA Board, build an office (actually, TWO offices), collaborate with other state societies and express our voice on many national issues. Your Alabama Society of CPAs Board has made a difference in our profession nationally and continues to serve and support Alabama CPAs. It’s not just the board that makes this organization strong; many, many of you volunteer with us each year. You too are a part of our history as is the incredible ASCPA team. Once again, I count my blessings to be surrounded by talent, energy and creativity of volunteers and staff. I learned a long time ago that to be successful one must be surrounded by people who have strengths much better and different than one’s own. That variety means everyone can grow and learn from one another. In my opinion, people are the greatest part of why the ASCPA is 100 years strong. We have incredibly talented and committed men and women who work hard and work together to sustain our mission and pursue new goals. June 2019 is a big moment. It is our birthday! I hope each of you take tremendous pride in your profession and membership in your state professional organization. Happy 100th birthday ASCPA! Here’s to the next 100. We are rolling up our sleeves and coming after you.

Jeannine

MESSAGE FROM THE CHAIR

appy 100th birthday, ASCPA! In this issue, we celebrate our centennial along with firms celebrating their 100th. Come along with us! Your Alabama contingent attended the AICPA Fall Council in October. As always, we heard lots of interesting presentations with loads of information. Here are some brief recaps of what we learned from just a few of the outstanding sessions. A presentation on the Enhancing Audit Quality Initiative included data about enhanced peer review. In 2014 when the program began, reviews found that about 18% of reviewed audits were deficient. This number has increased to 63% in the most recent review year. Of the deficiencies found in reviews, 50% are due to issues relating to risk assessment including inadequate understanding of internal controls, failure to identify any risk at all, and identifying risks but not addressing them. It was also noted that 50% of deficiencies noted in all areas could have been eliminated through proper documentation. In light of these findings, expect changes in engagement materials relating to risk assessment. For 2019, the focus for peer reviews will be risk assessment and documentation, of course, plus estimates, internal controls, and SOC reports. Some new free resources are available on the AICPA site to assist firms with peer review changes. Council included a panel discussion that presented impassioned discussions from both sides relating to the changes adopted for the ABV designation at the Fall Council meeting. Since that Fall meeting, several changes were made to the requirements for “other qualified professionals” to obtain the ABV credential. Ultimately, after a good bit of discussion and information, the Council voted to uphold the decision approved at Fall Council to permit non-CPAs to obtain the ABV credential. In his talk, Barry Melancon reiterated that the rate of change will never be as slow as it is today. He also discussed a new AI assisted resource for preparations, compilations and reviews called On Point PCR that generates practice aids, engagement letters, and

reports in an interactive guided engagement based on standards. On Point PCR is currently available through the AICPA. A similar product, Dynamic Audit Solution (DAS), is currently in development for audits in partnership with CaseWorks. This audit tool is a result of obtaining $50 million in funding from most of the top 85 largest firms plus the PCPS group with a goal of making large firm audit technology available to smaller firms. This technology is expected to be available in 3-4 years. He also noted the trend in smaller firms changing their revenue models to a subscription base – not quite half, at present, but the movement is in that direction. Last, he announced some other resources available through AICPA – namely a new Tax Reform ChatBot with frequently asked questions on section 199A along with other Tax Reform resources and some new 8-10 minute Human Intelligence Skills videos on various topics under the “Go Beyond” disruption video series. Another tax season is upon us! With all the changes in the tax law for this year and the uncertainty in applying many of those changes, it’s shaping up to be an exciting, challenging, and interesting season. Hang in there, my fellow tax professionals! Breathe…. and remember to take time for yourself and your family. This season will be another one in the rear view soon enough - Then we can start doing all the things we do between filing seasons – including preparing for the next one. In 1919, the major issues facing our state were education, prison reform, mental health, and how to pay for them. As we approach the start of our next legislative session, progress has been made in the last century to address these concerns though these challenges still remain a focus for our state. Certainly, a lot has happened in our world since the birth of the Alabama Society of CPAs in 1919. Some obvious things come to mind – women got the right to vote, the Great Depression, a world war, the proliferation of automobiles and air transportation, the creation of television, men in space and on the moon, and the invention and rise of the personal computer and

internet with the accompanying explosion of technology – just to name a few. There are also those we may not think of as readily like the introduction of sliced bread, several more states joined our union, Social Security began, the birth of rock and roll, availability of antibiotics and near eradication of polio, the formation of the European Union and breakup of Russia, Pluto is no longer a planet!, and so very much more. Alabama played a large part in this history being made - introducing the Tuskegee airmen to the war effort, gaining a number of military bases, birthing the Civil Rights movement, our substantial contributions to the space race, the Muscle Shoals music scene, the state’s growing automobile manufacturing and technology industries, nationally recognized medical facilities, and in addition, we brought home some national championships to our state, of course – not just in football! A century – WOW! Celebrate 100 with us by participating in an activity near you! Then join us for the big gala in June – it’s gonna be a lot of fun! Happy 100th birthday, ASCPA!

Lynne January/February

ASCPA BOARD OF DIRECTORS Chair Lynne Bozeman Managing Partner Richard, Harris, Ingram & Bozeman

Bozeman is active in all phases of the firm’s practice with 35 years of experience. Areas of specialization include taxation of timber and extractive materials and agriculture, audits of small governments, schools, school boards and not-for-profits. She is a graduate of Troy University.

Chair-elect Dennis Sherrin Managing shareholder Hartmann, Blackmon & Kilgore

Sherrin holds multiple professional designations, including CVA, CFF and CGMA. As the firm’s managing partner, he is responsible for guiding all aspects of the practice including its vision and strategic plan. Sherrin concentrates his services to clients on strategy and development of organizations that utilize their collective talents to enhance operations.

Past chair Marc Hamilton CFO CDG Engineers & Associates, Inc. in Andalusia

Hamilton obtained an undergraduate accounting degree at Athens State University and a masters of tax accounting at the University of Alabama. He has served in a variety of roles in industry, including Gulf States Paper, Saks, Inc., Westervelt Company and now as CFO/treasurer at CDG Engineers & Associates. He is deeply involved in technology and teaches for the ASCPA on the topics of blockchain, big data, artificial intelligence and cyber security.

ASCPA Connections

Jon Heath

James White, Jr.

AICPA Council Representative • Director Carr Riggs & Ingram, Enterprise

Managing Partner Banks, Finley, White & Co.

As the firm’s director of professional services, Heath is responsible for quality control and professional education initiatives. He has served as partner on dozens of employee benefit plan audit engagements, including both defined benefit and defined contribution plans. He has authored and presented various courses in internal control for firm, the ASCPA and CRI’s own CPE Week and Leadership Academy. Heath is a graduate of Troy University.

John Shank AICPA Council Representative Founding Member and Partner Barfield Murphy Shank & Smith

Shank has extensive experience working with clients in manufacturing, wholesale distribution, finance, venture capital and not-forprofit industries, specifically those larger companies which have complex accounting and tax needs. He and his partners founded the company because of a belief that that the firm could provide great services to clients while also creating an environment of life-work balance for employees.

Laine Spruiell CFO Wish Boutique

After 39 years in accounting, 28 years of them with Progress Rail Services corporation in Albertville, Spruiell now works with Wish Boutique, a chain of stores founded by his daughter. He concluded his career at Progress Rail as international controller. He is a graduate of the University of Montevallo.

White is a graduate of the University of Maryland. He has been in public practice in the Atlanta office of Banks Finley as well as 15 years with EY. He has coordinated audits for several multi-national, publicly-traded corporations in various industry sectors. He holds CPA certificates in five states.

Brian Grainger Manager Horton, Lee, Burnett, Peacock, Cleveland & Grainger

Grainger holds undergraduate degrees from both Auburn (health administration) and University of Alabama at Birmingham (accounting). He has been in public accounting for 14 years, specializing in audit, review, compilation and tax services to construction, manufacturing, real estate and restaurant industries.

Cherion Sibley Member Barfield Murphy Shank & Smith

Sibley leads the firm’s Private Client Services group, providing comprehensive tax and financial planning for highnet-worth individuals and closely-held businesses. She grew up in Muscle Shoals, is a graduate of the University of North Alabama and holds the CFP designation.

James Moody

David Scott

Sarah Propper

Partner Dent Moses

Partner Tucker, Scott & Wates

Partner Pearce, Bevill, Leesburg, Moore

Moody joined Dent Moses in 2008, becoming partner in 2014. He is a graduate of Samford University with both undergraduate and master’s degrees. He is a past president of the ASCPA’s Birmingham Chapter and serves on the Accounting Advisory Board of the Brock School of Business at Samford. Moody was honored by the school as its 2014 Distinguished Accounting Alumnus.

Scott has over 25 years of public accounting across a wide range of services. He has served as president at the Wheeler Basin Chapter, as past member and chair of the Alabama Board of Public Accountancy. He is involved in a variety of community organizations and lists raising beef cattle as an interest.

Cindy Boeggeman Rathle

Director of Recruiting & Professional Development Auburn School of Accountancy

Shareholder Crow Shields Bailey

Rathle is a graduate of the University of South Alabama and specializes in tax, estates and gifts, small business and consulting. She serves on the Estate Planning Council of Mobile, Lifelines Family Counseling Board of Directors and the USA Accounting Advisory Board.

Colby Lakas

Lakas worked for seven years in Big 4 public accounting, combining auditing and recruiting while at Deloitte in Atlanta. She serves the school’s undergraduates in recruiting and professional development activities and is the advisor for both Beta Alpha Psi and the Financial Leadership Society.

Propper is a native of Huntsville and a graduate of BirminghamSouthern College. She has over 15 years of public accounting experience, joining PBLM in 1999. She focuses her practice on tax planning for businesses and individuals.

Carey Rome CEO Cypress Resources

Educated at LSU and Louisiana Tech, Rome was at HealthSouth, then Arthur Andersen before moving into private industry as COO and CFO for a privatelyheld business. He founded Cypress Resources to offer companies an objective partner who can help deliver strategic initiatives more efficiently.

NOMINATIONS FOR THE 2019 and 2020 Board of Directors The ASCPA Nominating Committee is asking the general membership to nominate candidates for the 2019/20 board of directors. The Nominating Committee will review the candidates and recommend a slate of officers and board members to the governing ASCPA Board of Directors. Board members should be able to address complex issues occurring in a radically-changing environment. They should possess excellent communication skills, leadership ability and be willing to actively serve. The board of directors must be competency-based; diverse in age, background and gender. Duties of a board member include four board meetings and one strategic planning session per year, as well as support of ASCPA initiatives and programs. The committee encourages nominations from all membership sectors, from the 11 ASCPA chapters, and from the Young CPA Board. You can submit your nomination at www.ascpa.org/BOD-Nominations.

January/February

MY 50 YEARS WITH THE ASCPA (Disclaimer: All dates are subject to the memory of a senior adult!)

place and I became the assistant executive secretary for the Society on May 1, 1987. The next twenty years were a wonderful experience! Two duties I had as executive director were to promote the ASCPA on the national level and to maintain close relations with the Alabama State Board of Public Accountancy as well as its national counterpart, NASBA, the National Association of State Boards of Accountancy. I had already served on the AICPA’s Peer Review Executive Committee, Ethics Executive Committee and the CPE Executive Committee. I became acquainted with many future leaders of the profession and these contacts served me well in developing my dreams for the Alabama Society. The crowning event in our increasing national presence was having an Alabama CPA, Jimmy Williamson, elected as chairman of the AICPA Council! The biggest blessing for me was always the incredible relationships built through Society events and activities. Tom Ratcliffe and Bill David Smith were not only smart and savvy practitioners, both of whom gave unselfishly their time, expertise and energy to the Society. They were great travel partners and dear friends. Other people who made an impact on me were, first and foremost, all the ASCPA Council Presidents who served the Society with me. Each had a unique approach to improving our place in the profession. Beside the presidents, helping me on the legislative front was Ryan DeGraffenreid, lobbyist for the Society until his untimely death in 2006. Of tremendous help and counsel was Barry Melancon, president and CEO of the AICPA. He was gracious to speak at our annual meeting on a number of occasions, keeping our members updated on current developments in the profession.

It seems impossible that the Alabama Society is celebrating 100 years and, even more astonishing, that I have been part of the organization for 50 of those years!

I would be remiss if I didn’t mention Lamar Harris, executive director of the Alabama State Board. He revered his own professional identity as a CPA and his membership in the Society. We had many discussions about changes in the profession and the requirements to sit for the CPA exam. We didn’t always agree, but agreed to disagree! The Alabama State Board of Public Accountancy has had a very close and cooperative relationship with the ASCPA. Please know that this is not the case in other states! For instance, both organizations were housed together for the majority of their shared history, and Joe Robertson served as executive secretary of both for about 15 years.

Becoming a member of the ASCPA was not even a question after I received my license (certificate 788) in May of 1968. It was just part of what you did as a new CPA. I joined the Society on September 13, 1968 and being a member has made all the difference in my personal and professional lives.

Lastly, and certainly not least, were the ladies involved in the profession. From CPA volunteers to the wives of CPAs who worked tirelessly for the profession and the women who so ably assisted me in the ASCPA office. Thank you for your efforts to make me “look good” and for doing a superb job!

After passing the CPA exam (under the old system I had to wait two years after graduation to take the exam), joining the Birmingham Chapter was a no-brainer. I will never forget the kindness Bill Blankenship showed me to make me feel welcome. He was a kind of mentor to my progressing up the “political ladder” within the ASCPA. I served in all official chapter positions, becoming president in 1971 or 1972. This position enabled me to immediately take a seat on the Alabama Society’s governing body. Holding every position on the Society Council, I was eventually elected to serve on the American Institute of CPAs’ Council. This was a two-year term and I made friends with peers across the United States. Also during this time, I got to know ASCPA Executive Secretary Joe Robertson very well. We became close friends and, as Joe discussed his pending retirement, he expressed his concern about finding a suitable replacement. He mentioned that I would make a good successor. However, I had an accounting partner in Birmingham which complicated the decision for me. On the plus side, I had recently married my life partner and best friend and she wanted to move back to Montgomery. Things eventually fell into

I don’t even know if I can accurately recap the historic milestones during my tenue as executive director. Certainly, implementation of peer review was one, having Jimmy Williamson as the first Alabama CPA as AICPA chair in 2006 was amazing and speaks to the high visibility of the Alabama Society at the national level. We weathered the storms of the demise of Arthur Anderson and the HealthSouth meltdown by continuing to represent the profession with our heads held high.

Bryan Hassler, CPA

ASCPA Connections

Since I stepped away from the ASCPA ten years ago, I’ve watched it constantly adapt to today’s technology-driven environment. Among other channels, the magazine has become a beautiful publication which always highlights the most important aspect of the Society, its members. Fellow CPAs, I invite you to stand with me, and all CPAs who helped improve our profession, as we move into this year of celebration. Attend events at the chapter level, please interact with students in your area and join me at the Gala on June 13, 2019. I’ll see you there!

The History of

HEIER HISTORY

THE HISTORY of the ASCPA

Sometime in early 2016, as planning for the ASCPA Centennial was just getting off the ground, there was no doubt about one thing: this momentous undertaking needed a history. Fortunately for the Alabama Society, there was an amazing member who joyfully took on this project, Dr. Jan Heier, Auburn University Montgomery Professor Emeritus. He developed a chronology, outlined the articles he envisioned and began by going way back. Way, way back to the very beginnings of accounting as a profession. Each succeeding article built on the one before and gradually brought us to the 20th century and the formation of the Alabama Society, the Alabama State Board of Public Accountancy and the three original Alabama CPA firms. Heier’s gift was in uncovering not just the dry facts about the ASCPA’s development, but also amusing and human aspects of the 100 years of its history. Thank you, Jan Heier, for

your dedication in bringing to life for future generations the story of Alabama’s accounting profession. Jan Heier was on the faculty at AUM for thirty years, teaching cost and managerial accounting to several thousand students at all levels. He earned his undergraduate and master’s degrees from the University of Wisconsin at Oshkosh before moving south and completing a doctor of business administration degree from Mississippi State University. He became a CPA in 1987. Heier has presented more than 65 professional articles, leading to publication of many of them in scholarly journals. He has served on the boards of local non-profits and been active with the ASCPA’s Education Committee for the past ten years. He currently teaches accounting as a visiting professor at Montgomery’s Huntingdon College.

January/February

From the Stylus to Being Stylish Thoughts on the Second (or Third) Oldest Profession Dr. Jan Richard Heier, CPA

Since the invention of cuneiform writing by the Sumerians nearly 5,000 years ago, scribes have made their impact on the development of society by making sense out of business transactions. This, by definition, makes accounting probably the second oldest profession. These transactions ranged from the first “tax accountants” shown on the walls of ancient Egyptian tombs accounting for the payment of tribute to the pharaoh by his vassals, to clay tablets and papyrus prepared with a stylus and ink that recorded such mundane activities as the yield of the annual harvest and distribution of food. By the time of Greco-Roman era, accounting had developed to a point where it possessed its own language with a professional scribe called a rationales that roughly translated to “the keeper of the official book”. These professionals completed their work using a tally system that would transform into a proto-double entry method using the adversaria (or rough records journal) to make a final accounting in the codex rationurn (the book or accounts or ledger). The term adversaria came about because people often used these personal records to defend themselves from frivolous lawsuits in the very litigious Roman

society. It appears two millennia later that little has changed except for the names of lawyers. Unfortunately, the records were completed using Roman numerals that are very hard to manipulate. Imagine trying to add IX + IL.* Enter an amazing little machine that is still in use today, the abacus. The relatively simple accounting of the Romans spread through most of the old Roman Empire and by the medieval period in the British Isles during the medieval period scribes called clarkes were managing the great estates of the period. Old English word clarke would eventually morph into the modern term clerk. So if you have the last name of Clark (or Clarke), chances are someone in your family tree was an accountant. Talk about dead wood! Although these records were useful for managing the estates, they were still missing accounting’s heart and soul – the double entry ledger. This fabulous invention would not be practical, however, and could not come about until, finally, some enterprising person in Arabia, or India or wherever, invented our modern numerical system, (1, 2, 3, 4, 5, 6, 7, 8, 9), that also included an amazing and very useful numeral called ZERO. Zero allowed for adding

1913

1894 1905

1887

ASCPA Connections

1905 Journal of Accountancy is published for the first time

1906 AAPA creates a committee for study and creates ethics standards

1908 The National Association of State Boards of Accountancy

1915

The first CPA bill is introduced but fails in the Alabama legislature.

1915

Christine Ross becomes the first female CPA

American Association of Public Accountants (AAPA) is formed and issues certificates based on experience

The first overall discussion of this masterful invention came in 1494 with the publication of the of the first book

The 16th Amendment to the U.S. Constitution permitting a federal income tax is ratified

The AAPA passes its first standard to include a balance sheet in a financial statement

1890

and subtracting (you know – from 2nd grade - add the one, carry the zero) without the need of an abacus. More importantly, it allowed accountants to increase and decrease individual accounts and fix upon an end number, called a profit or loss, because once you have zero you can also have positive and negative. Double entry accounting had arrived.

The Beta Alpha Psi accounting honor society is formed.

1896 New York passes the first CPA law

1895

1900

1905

First in a series on the History of the Alabama Society of CPAs and the profession in Alabama

HEIER HISTORY

on accounting titled De Computis et Scripturis (Of Reckonings and Writings)* by Fra Luca Bartolomeo de Pacioli. The book taught the “Venetian” method of double entry based on the fundamentals of algebra. So important was this book to commerce at this time that it became one of the first technical books published using the Gutenberg press, invented forty years prior. Within a short period, the book was translated and published into most of the major languages of Europe. Pacioli’s principles outlined in 1494 allowed for a flexibility in the double entry system of accounting that combined utilitarian expediency and “rock-solid” orthodoxy (assets = liabilities + owner’s equity). This allowed businesses to initiate, to expand, and to flourish in a never-ending stream of accounting discussed by the Periodic Principle still unchanged in most intermediate accounting classes. This allowed changes in equity capital that permitted the expansion of international trade using the “ship-voyage” as a unit of business to be closely monitored. Some say that this helped pave the way for the Age of Discovery and was the basis for modern capitalism. Over the next three hundred years,

double entry would become the gold standard for business accounting and would spawn a new, and well-respected professional on par with physicians and lawyers. At first, the accounting profession was seen through the lens of Charles Dickens’s 1843 portrayal of Bob Crachit, Scrooge’s back office counting house bookkeeper in A Christmas Carol at a high desk with green eyeshades and shirt garters. The actual public accounting profession, depending on whom you ask, began in 1854 with the formation of the Glasgow (Scotland) Institute of Accountants and Actuaries. That institute created the core of a new English profession called the Chartered Accountant or CA. It evolved because of a need for audits of British stock companies, started under the auspices of several British “Companies” Acts that that regulated accounting and reporting. Eventually, these accountants would come to America in the guise of well-known companies such as Price Waterhouse or Peat Marwick Mitchell. The United States soon would have its own fledgling accounting profession with the designation of certified public accountant, CPA, when New York passed the first law in 1895.

1919 1919 George Rosson of Mobile becomes Alabama’s first Certified Public Accountant

Ten charter members form the Alabama Society of CPAs

1919 The Alabama Legislature passes the state’s first CPA law. It creates the Alabama State Board of Public Accountancy and its requisite regulations.

1919

The ASCPA will publish a series of articles in advance of its centennial in 2019 and that of the Alabama State Board of Public Accountancy. These articles will be on the history and development of the profession in Alabama. As part of this effort, a side-by-side timeline of the development of the accounting profession in the United States and Alabama is presented below. * If you are curious, it is 9 + 49 = 58 or LVIII *Note: This was part of a much larger book entitled Summa de arithmetica, geometria. Proportioni et proportionalita or, simply, Everything about Mathematics

1922 The first board publication is The Director, discountinued in 1924.

1919 1921

Frank Broaker was issued New York certificate #1. It would be another twenty-five years before the Alabama Legislature would follow suit. George Rosson of Mobile passed the first Alabama exam and would hold Alabama certificate #1. In the succeeding century, the CPA profession has become the trusted business partners to most all economic endeavors providing accounting, tax, audit and business consulting services. A profession that started with sharpened styluses recording harvests, in a mere four thousand years, has become, dare we say it, stylish.

University of Alabama institutes its undergraduate business degrees including accounting

John Cromwell is the first African-American CPA

ASCPA Committee on Legislation begins a long history of political action to combat attempts to repeal CPA laws, or to change them to the detriment of the profession.

1910

1915

1923 Lehman vs. Alabama State Board of Accountancy affirms the right of the board to discipline its member and, if necessary, revoke CPA certificates.

1925

1922

The ASCPA incorporates and approves a formal set of by-laws

1927 The first local Society chapters are organized

The state board issues education and experience regulations, including two years working as a CPA or a degree from a recognized “educational institution”.

1927

Stock market crash and the beginning of the Great Depression, and New Deal era

1929 Ultramares case defines accountants’ liability in cases of negligence.

1920

1925

First in a series on the History of the Alabama Society of CPAs and the profession in Alabama

January/February

Into the Unknown in 1919: A New CPA Board and the First Alabama Exam Dr. Jan Richard Heier, CPA

In mid-July 1919, an estimated eighty candidates sat for the first CPA exam in Alabama. With a short preparation time allotted, the exam was announced in late May 1919, these first CPA candidates probably felt the same dread as a young 2016 CPA “wannabe.” Here, however, the difference was that these first candidates were moving into a great unknown and did not have the benefit of the Becker CPA Review, but had to rely on either years of accounting experience or accounting principles books to get them through. Regardless, they were among the first cadre of thousands of test takers in Alabama spread over the next century. The goal: acquiring those three coveted letters behind their name, CPA. In the spring of 1911, a small group of “public accountants”, primarily from Birmingham, organized the Alabama State Association of Public Accountants (ASAPA). The association’s secretary G. L. Lemon (and apparent lead person) drafted and sent a letter to the American Association of Public Accountants (AAPA) asking for admission as new chapter under the AAPA auspices. The letter also explained that the primary purpose of the new association was to pass CPA regulations. Unfortunately, the ASAPA lacked a critical mass of members and faced a dearth of interest from the accounting community in the CPA designation. It would take a world war to enhance that interest. The organization eventually collapsed in 1915 after its non-payment of dues to the AAPA, but not before it took a small step towards passage of a CPA law and filed a draft law with the Alabama state legislature. Unfortunately, they lacked someone to sponsor the bill and shepherd it through the legislature. It subsequently died during the 1915 legislative session. The AAPA Yearbook for 1915 noted that, “it is the hope that some accountants in Alabama [could eventually] secure the enactment of a law, and the bill which has been prepared and submitted to this association has met the entire approval of [AAPA] committee on state legislation.” Efforts for an Alabama CPA law were resurrected late in 1918 when a group of prominent accountants from Birmingham, Mobile and Montgomery began a concerted effort to pass the necessary legislation. According to Mary Baily, there was a growing necessity for a CPA law that allowed Alabama accountants to become qualified to provide certain tax services for businesses related to World War I cost and revenue regulations. In January 1919, the group drafted a bill modeled on existing state CPA laws for consideration by the Alabama legislature. This time, however, the profession had a champion following the law through the process, Mayer Aldridge. Aldridge was a prominent accountant from Montgomery (one of the founders of Aldridge Borden and Company), who also happened to be the state assembly’s reading clerk, and thus, according to Baily, “was in a position to make the attempt to insure passage of the bill.” The bill (Figure 1) passed the state senate on February 17, 1919 and was signed into law by Governor Thomas Kilby on the same day. The four page law described the nature of the CPA designation and makeup of the Alabama State Board of Public Accountancy (Board) which was to have three members, (one of which had to 12

ASCPA Connections

be an attorney). Its powers allowed it to issue and revoke CPA licenses and regulate the profession in Alabama. As it turned out, for the future members of the new board, passing the law was going to be the easy part. The Board was quickly organized when Gov. Kilby appointed its first three members. The accounting appointees judged, according to the CPA law, to have “a good moral character,” were Chairman Mayer Aldridge from Montgomery, George Rosson from Mobile, and R. C. Williams from Dothan” All three would eventually become CPAs, so it is unknown who was the required “reputable attorney.” Although all of the members were practicing accountants, none of them were CPAs --- YET! To rectify this problem, the original Alabama CPA law contained a provision that allowed the board to waive the exam requirements for current accountants that From the Journals of Alabama House and Senate for 1919, January 18, 1919: Senate Speaker pro temp, T. J Bledsoe from Grove Hill in Clark County introduced Senate Bill 69 and sent to Judiciary Committee. January 23: Walter Jones (founder of Montgomery’s Jones Law School) introduced nearly identical House Bill 74. January 29: A competing bill S242 was introduced on January 29 by Senator Green from Dallas County, along with S243 that would require that the Alabama Examiner of Public Accounts should be required to be a CPA. February 5: S69 came out of the judiciary committee with proposed amendments. February 6: Morning. The Senate took up the bill and passed clarifying verbiage amendments along with two major amendments that included a requirement to inform an exam candidate whether they passed or failed within thirty days and require the first group of CPAs in Alabama in 1919 pay $25.00 a year license fees like all the other CPAs to come rather than the bill’s original $10.00 annual license. February 6: Afternoon. Each amendment, as well as the final bill S69, pass unanimously and reported to the House. February 11: Rep. Jones apparently changed his bill to match that of the Senate. February 14: S69/H74 passed by the House unanimously. February 17: After a final reading by the Senate, it was finally passed and sent to the governor at 3:15pm on February 17 when it was immediately signed. August 17, 1919: S242/243 never got a second reading and was reported adversely out of the Judiciary Committee. Figure 1 Anatomy of a CPA Bill

met the basic criteria for an Alabama CPA certificate under Section 1 of the law, and had worked for at least five years in Alabama as an accountant. It also provided for persons who possessed CPAs from other states to be certified in Alabama. Both of these provisions apparently were unheard of, but eventually the newly formed American Institute of Accountants (AIA), predecessor to the AICPA, would accept the new legislation with the provisions intact. Such acceptance was needed to show Alabama’s CPA requirements were comparable to other jurisdictions regarding items like reciprocal licenses and jurisdictional work permits. According to Baily, at its May 26, 1919 organizational meeting, the new board decided not to issue waiver certificates, but required all candidates to take the first Alabama CPA exam that they had scheduled for July 17 and 18, 1919. The next order of the day was

Second in a series on the History of the Alabama Society of CPAs and the profession in Alabama

HEIER HISTORY to find an exam to administer. The Board thought they simplest approach to this problem was to obtain the exam from the AIA, in that it prepared exams for twenty-six out of the forty-six CPA jurisdictions in the country. Unfortunately, the AIA had just given an exam in May and they were evidently reluctant to give Alabama copies. In addition, the next AIA-sponsored exam would not be until November, and the Board was under pressure to “mint” its own CPAs within six months of the new law. The only course open to the Board was to create its own exam --- so they did. Although the Board could have used published questions from states like Illinois and Wisconsin, which created and administered their own exams, it appears they also created many of their own questions, such as one about allocation depreciation at a saw-mill, a large Alabama industry at the time. The only surviving copy of the first Alabama CPA exam comes from the AICPA library at the University of Mississippi. This four-page, typed copy on Board letterhead (See Figure 2), provided the examples of exam questions that we’ll discuss later in this article. As it turned out, the subject matter of the Board’s first exam seemed to follow the spirit of the new CPA law that stipulated that the subjects for examination would include Theory of Accounts, Practical Accounting, Auditing, and Commercial Law, but it may not have exactly followed the letter of the law, because it did not provide a separate Theory section. The July 1919 exam began with a combined practical accounting/ accounting theory section that included six questions on a variety of subjects facing contemporary accountants of that day. Several focused on accounting for corporate and partnership forms of businesses as noted in Figure 2. The archaic terminology used in the exam, however, would challenge even the best modern CPA candidates. For example, what was a book debt? In addition, as the reader can see, the accounting for partnerships is not very different from modern procedures. However, what is a contingent liability doing on a balance sheet? A candidate from 1919 needed to know whether it belonged or not. This must have been important because there was comparable audit question on this subject. Other questions were related to current accounting problems like accounting for raw materials inventory for World War I munitions manufacturers. Again, there was a comparable auditing question. There was even an ethics question about elevating the new Alabama CPA designation to its proper professional status in the community. The most comprehensive question of this section asked the candidates to take a list of about fifty accounts and put them in correct balance sheet and income statement order. Here again, the archaic early 20th century accounting terminology was in many cases very different than that of 2016. For example, a “Surplus of Former Fiscal Period” was listed. Another strange item noted was difference between the “productive” and “unproductive” labor accounts. Here the candidate needed to know if these were expenses, assets, or liabilities, and, of course, which financial statement they were reported on. Finally, there was a rather strange one called Collections and Exchanges. Next, the auditing section was comprised of ten essay questions for which each candidate was required to complete eight. These ranged from the bond question noted in Figure 3, to questions about the verification of receivables and payables and reconciling

Figure 2 First Page of the first Alabama CPA Exam

accounts. All of these questions could easily appear on a modern CPA exam. However the difference is that many of the audit procedures such as observing inventory or confirming receivables were not developed or institutionalized until the late 1930s. Finally, there were twelve questions related to commercial law. The majority of the questions focused the same subjects that modern candidates prepare for; the elements of contracts and negotiable instruments. In 1919, however, candidates had to know Alabama law and procedure. By contrast, a modern candidate learns the Uniform Commercial Code. Taxation, which is now a major focus of the “regulation” part of the modern exam, was not even tested in the first Alabama exam. Although Baily never mentions who actually graded the exam, she noted that, “twenty-six men passed the first Alabama CPA exam”, and “and certificates were issued to the two members of the board, Aldridge and Rosson, thus a total of twenty-eight certificates were issued.” This meant that they probably created and graded the exam and could not take it due to an obvious conflict of interest. Baily went on to note, that “approximately two thirds of the total applicants failed to pass. Many of these men had no experience in public accounting and were not prepared for the examination.” Three months later, on September 18, 1919, the AIA finally approved the new law. The reason for the delay in its acceptance seems to be centered on two issues. The first was the previously discussed waivers in the original law. Aldridge explained, in a letter to the AIA in March 1919, that the clause was inserted in the legislation to gain legislative approval. After this communication, Aldridge again asked for approval of the Alabama law in May 1919 after explaining in a letter to the AIA that at the Board’s organiza-

Second in a series on the History of the Alabama Society of CPAs and the profession in Alabama

January/February

tional meeting it was decided not to generally use the waivers. Regardless, the AIA still did not approve of the law. Another issue for the AIA centered on the content of the July 1919 exam. Apparently the Board sent a copy of the exam to the AIA in September of 1919 to help gain approval of the Alabama law. This copy from the AICPA library even had handwritten notations expressing concerns about the exam’s results, especially regarding the fact that, “100% of the candidates passed the auditing section of the exam. Therefore we must regard this exam with caution.” The final approval from the national organization occurred after the Board accepted the suggestion (probably requirement) that Alabama use the AIA’s uniform CPA exams in the future. The direct effect of this decision appears to be that only one Alabama CPA candidate passed the November 1919 exam.

Materials for this article came from Mary Baily’s History of the ASCPA 19191965 and published AICPA documents.

Figure 3 Written notes about Audit Exam on AIA Copy

ASCPA Connections

Second in a series on the History of the Alabama Society of CPAs and the profession in Alabama

HEIER HISTORY

The Lehmann Decision Dr. Jan Richard Heier, CPA

manager, F. Hopkinson Smith, was an member of the American Institute of Accountants, but not a licensed CPA. However, all of the principals in their New York office at 54 Wall Street held New York licenses.

Introduction: Since the late 1930s, the standard set by the accounting profession for a CPA to complete an audit was to be independent from the client in both “fact and in appearance.” Even with that simple definition, the AICPA has had a long history of attempting to interpret its meaning. In the early part of the 1920s, however, the accounting profession apparently understood the theory of independence, but it took a Supreme Court decision (J. Harrod Lehmann2 v the State Board of Accountancy) to begin the long process toward institutionalizing the concept.

During the September 1921 ASCPA annual meeting held, again, in Mobile, cracks in administration of the 1919 CPA law were becoming apparent with several ethics issue. The first dealt with ASCPA member and the organization’s first president, Henry. S. Miller, who had apparently been charged with forgery. Members at the 1920 annual meeting designated the council to investigate the matter and eventually issued a letter to the membership (Exhibit A) with two of the five council members asking that Miller be removed from membership. This was promptly accomplished through a unanimous motion to the membership on hand. Miller held Alabama license #6 which was revoked by the Board in 1922.

Early CPA Ethics Problems in Alabama: The saga of Mr. Lehmann’s dispute with the Alabama State Board of Public Accountancy (ASBPA) began in 1919 when he earned CPA license (#21) after passing the first CPA exam administered in the state. Although new to the public accounting profession, Lehmann actually worked as an accountant and auditor in Birmingham where he started J. H. Lehmann & Co. in 1912. His offices were located in the Jefferson County Bank Building.3 According to court documents, Lehmann, plaintiff in the lawsuit against the Board, indicated that “by experience and assiduous attention to his duties built up a large and lucrative business.” The Alabama Society of CPAs (ASCPA) organizational minutes of the first Annual meeting held in Mobile in September 1919, showed that Lehmann played a prominent role in the proceedings of the new organization by being elected to its five member council. In addition, he made several motions, including one asking the ASCPA to take out advertisements in most of Alabama’s major cities listing the members of new Society and the nature of state’s new CPA law. In a “future” irony, he also asked Mayer Aldridge, the current chair of the ASBPA to take up “ethics matters” with the Alabama Attorney General as to the accounting practice by “Loomis, Suffern, and Fernald,” a New York based CPA firm with an office in Birmingham’s First National Bank Building.4 Unfortunately he did not outline his concerns, but it was known that the firm’s local

Of the three that did not sign the letter, Mr. Harden had already announced his retirement at the 1921 meeting, and resigned from the council. Mr. Percy Wright’s certificate had also been revoked and he was removed from the Society’s roll for mishandling ASCPA funds as the Society’s first secretary-treasurer. Finally, Mr. Lehmann may have also been in trouble at this point because, as the meeting progressed, Frank Latady, chairman of the ASCPA council, reported problems in, “connection with an audit of the books of the City of Birmingham, and of certain irregularities in the [audit] report prepared by Mr. Lehmann, dealing with the matter of handling Government Food Supplies.” Later court documents revealed that Lehmann may have lost his certificate due to a lack of independence (and a possible defalcation) in completing an audit for the Traylor Optical Company in the city of Birmingham (with no mention of government food supplies). At this point, the meeting passed a motion to refer the matter “to the incoming Council with the power to act.” Because the Council would not meet for another year, the State Board would act first late in November 1921. Legal Action and its Results: According to court documents, on November 17, 1921 the State Board sent Lehmann a letter outlining his transgressions as required by the state law. In the letter, the Board referred a complaint from one J. F. Kastner (a CPA for the Birmingham office of a Chicago accounting firm, P. L. Crawford) who asked the Board

Third in a series on the History of the Alabama Society of CPAs and the profession in Alabama

January/February

to revoke Lehmann’s certificate due to improper auditing procedures at Traylor. It should be noted at this point that the documents never explain how Mr. Kastner knew of Lehmann’s “internal” relationship with the audit client. The primary issue focused on Lehmann’s acting both as the secretary-treasurer of the client and also as its auditor. In addition, he had direct access, as a designated signer of checks, to Traylor’s accounts from which he “borrowed” a total of $4,700 between October 1919 (after he received his certificate) and January 26, 1921. In his rebuttal, Lehmann presented an affidavit from the owner of the business, Mabel B. Traylor, indicating that she knew of, and apparently approved of, the withdrawal of funds. To him, this settled the issue, affirming that he had done nothing wrong. In addition, Kastner also charged (or strongly implied) that Lehmann ignored the “inflated” value of the Traylor’s inventory and took a $2,000 “bonus” from the company to look the other way when he closed the books on December 31 1920. Lehmann denied this and specified that he relied on the inventory figures from company personnel “upon whose [expert] judgment he had the right to rely.” Based on Kastner’s complaint, on January 21, 1922 the Board revoked Lehmann’s certificate. Without using the term “independence,” they must have seen Lehmann’s actions as a breach of professional ethics where the auditor was reviewing the work that he actually completed. Lehmann now took the only recourse available to him: he sued the members of board to force them to reinstate his certificate. Within the suit, it was alleged that the Alabama CPA law was unconstitutional because it denied his ability to carry on the profession that he had practiced for a number of years before getting a state-sanctioned CPA certificate. In addition, even though the original law gave the Board the power to revoke a certificate in Section 7, Lehmann felt 1 2 3 4 5 6

that the Board’s lack of due process procedures made this clause ineffective and unconstitutional. 5At the ASCPA’s September 1922 annual meeting in Birmingham, the minutes noted that the efforts of J. H. Lehmann, a member of the Alabama Society, to have the CPA law of the state “declared unconstitutional, in connection with charges preferred against him before the [Board], were unanimously disapproved by the entire membership and … he was expelled from the [Society]”. The minutes also noted that the “Lehmann case was reported before the U.S. Supreme Court.” Exhibit A — Council Letter about H. S. Miller

This nearly eighteen month journey to the Supreme Court of the United States started in February 1922 in Montgomery County circuit court before Judge Walter B. Jones Jr. Originally, the judge instituted a temporary restraining order against the revocation of Lehmann’s certificate. After a further hearing on April 21, 1922, Judge Jones vacated his order and ruled against Lehmann, citing state law that held Board members were agents of the state and, like any other licensing board, have the responsibility to regulate the actions of the profession. As a result, Lehman directly appealed to the Alabama Supreme Court for review.6 About the same time, Judge Jones also ruled against Henry Miller and Percy Exhibit B — Title bars of the State and Federal Supreme Court Rulings Wright sending both cases to the higher court.

Exhibit C — Final Paragraph of Supreme Court Decision

On June 29, 1922, the Supreme Court of Alabama (208 Ala. 185) (Exhibit B), by a vote of eight to one, affirmed the ruling of the circuit court and held that the State Board of Accountancy can indeed regulate the use of the CPA designation, ostensibly because the “legislature may delegate to its own appointed administrative agencies legislative discretion as authority to make such minor rules and regulations as are necessary or appropriate for administration and enforcement of the general laws”.

The materials for this article mostly came from ASCPA board and meeting minutes and court documents from Montgomery County Case 2486 (April 1921) that is held in the Alabama Department of Archives and History in Montgomery. Records alternatively use J. Harrod and J. Harold as spelling of the name of story’s central figure. Harrod apparently is the correct spelling. The firm continues to exist today as Lehmann, Ullmam, and Barclay, LLP located in Birmingham. As a side-note, this firm would merge into Lybrand, Ross Brothers and Montgomery in 1958 which would eventually become Coopers and Lybrand and then PriceWaterhouseCoopers. Henry Miller also filed a lawsuit over the revocation of his CPA certificate over the forgery charge brought by the Board. Available court documents do not assert a claim conflict of interest on the part of the Judge as a cause for the appeal even though this same Judge Jones was instrumental in helping the CPA laws get passed in the in February 1919 when he was in the legislature..

ASCPA Connections

Third in a series on the History of the Alabama Society of CPAs and the profession in Alabama

HEIER HISTORY Lehmann and his attorneys proceeded to appeal the opinion to the United States Supreme Court based on two major questions. First the CPA law was “also in conflict with the Constitution of the United States, the latter in that it, the statute, deprives plaintiff in error of his property without due process of law, and subjects him to an ex post facto law.” In addition, the Lehmann case again asserted that the Board “never adopted any code or promulgated any rules or definition of what is or is not professional conduct, or what is sufficient cause for the revocation of a certificate.” Justice McKenna, writing for the court, the U. S. Supreme Court published its unanimous opinion on December 23, 1923 (Exhibit B). At first blush, in a reading of the Lehmann v. State Board of Accountancy Exhibit: 263 U.S. 394 (1923) B it appeared that the court decided in favor of Lehmann, however it actually carved out a special set of situations for the CPA profession (Exhibit C) that could be used nationwide to “defend” the CPA as a professional designation and license that stood for quality and knowledge, without interfering or impeding non-CPA accountants from working. In a short period of time, the Alabama Supreme court used the federal Lehmann v Board to find in favor of ASBPA in its litigation with Henry Miller. According to the West-law data base, both the state and federal supreme court cases regarding Lehmann v Board have been cited as a precedent no less than 83 times over the past ninety years. The case has been used either to uphold or defend the state’s right to regulate certain professional matters. The last one was in 2000 in a strangely-titled

case ex parte (not present) Alabama State Examiners in Counseling (Re Theron Michael Covin) v. Alabama State Examiners in Counseling 796 So.2d 355. Conclusion: Nearly 15 years after Lehmann v Board, in an odd twist to the long legal battle, the minutes of the 1937 ASCPA annual meeting at the Greystone Hotel in Montgomery included a resolution from William Christian to reinstate J. Harold Lehmann to membership in the Alabama Society. According to the minutes, the resolution was seconded by Robert Troy from Montgomery and unanimously approved. In an introduction to the resolution it was also noted the request came with a copy of the State Board’s action on Lehmann’s certificate that was originally revoked in 1922. Mr. Lehmann was able to reacquire his certificate after the state legislature amended the CPA law in a special session in February 1937 allowing for reinstatement of certificates by the board if certain conditions are met. Regardless of this outcome, the current website of the Alabama Board of Public Accountancy continues to show Lehmann’s certificate and license was revoked. Through Lehmann v State Board, the ASBPA has been able to assert its authority over the use of the CPA designation, thereby strengthening the effectiveness of the certificate and solidifying the early accounting profession in Alabama and possibly throughout the county. This an opinion was bolstered by the eminent accounting and history scholar James Don Edwards in his book “History of Public Accounting” (p.113), that the Lehmann case “added greatly to the professional standing of accountancy.”

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Third in a series on the History of the Alabama Society of CPAs and the profession in Alabama

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January/February

Creating a Professional Pipeline: The ASCPA’s Efforts to Support Accounting Education in Alabama Dr. Jan Richard Heier, CPA The support of accounting education by the ASCPA has been a hallmark of the organization from almost the beginning. During the society’s organizational meeting in September 1919, it originated a standing (permanent) education committee with R. H. Screven (Mobile) named as its first chair. Originally, the committee was formed to provide training to the Society members but soon it began efforts to support accounting education at all levels. These efforts over the past century have provided a solid and steady pipeline of new CPAs to fill the need and maintain professional sustainability. From the minutes of annual meetings, the committee’s first formal push came in 1922 when it wanted to prepare a report regarding the “the facilities available for education of current CPAs at Alabama colleges.” In 1923, Harold Crane (Montgomery) reported that the Alabama schools were “uncooperative in the matter of continuing education” so the committee chose to change its focus to helping accounting students and, in turn, helping the staffing needs of the profession in Alabama. One of its first initiatives in this area was to create a list “of accounting textbooks, libraries, other data, and make them available to all those interested in accounting education and to the various educational institutions of the State.” Support for education also came from the Society when it investigated and approved an accounting/bookkeeping program that was offered by the YMCA in Birmingham. At this point becoming a CPA in Alabama did not require a college degree and would not be formally required until 1989. At the 1923 meeting, Francis Latady (Birmingham) also offered a motion, and the Society accepted, that “it would be up to the discretion of the Society Council for providing suitable prizes or awards to the students at the new School of Commerce at the University of Alabama (U of A).1” These prizes would be for “exceptional accounting research, not to exceed $25.00.” The purpose of the awards was to encourage, “interest [in accounting] at the [U of A] School of Commerce,” The Society once again passed an awards resolution at the 1926 annual meeting with the education committee also introducing and passing an additional motion to establish an annual scholarship with ASCPA funds not to exceed $300.00. Although this seems like a miserly amount by 21st century standards, a UA General Catalogue from 1922 indicated that the cost to get an accounting degree for the nine month school year was as follows (not counting personal needs): Room rent, light, water and attendance

$45.00

Registration, Incidental, Library, gymnasium and medical fees $27.00 Student Activities Fee

$13.50

Tuition

$15.00

Total

$100.50

It would not be until 1929 when the ASCPA actually voted to fund the research scholarship. It is uncertain if anyone was awarded the scholarship from 1929 because no mention was made in the minutes of the annual meeting or council. In 1931 the Society again approved 1 * This is the fourth in a series of articles on the first 100 years of the ASCPA. All information comes from the minutes of the ASCPA annual meetings and Council meetings. ** Dr. Heier is Professor Emeritus in the School of Accountancy at Auburn University Montgomery and now teaches part-time at Huntingdon College in Montgomery, Al. U of A was the only school in Alabama at the time to have professional School of Commerce (created in 1919). Springhill College, a Catholic Jesuit college outside of Mobile also provided a business and accounting curriculum with Alabama Polytechnic Institute (Auburn) having a “business science” curriculum with as of yet no school of business. 18

ASCPA Connections

Area scholarship students were recognized at the Birmingham Chapter’s May luncheon. $300.00 for research “fellowships.” At the 1932 meeting, Langston Hawley, who was awarded the “fellowship”, presented his research A Survey of the Accounting Procedures and Records in the County Government of Alabama to the attendees who “gave him a rising vote of thanks and appreciation for his splendid efforts.” 2 The work was completed under the supervision of Chester Knight, a long-term UA accounting instructor and department head. Shortly after Knight’s death in the early 1950s, the Society helped to fund a permanently endowed scholarship in the late professor’s name to help accounting undergraduate and graduate students. This scholarship currently endures as the annual Chester Knight Memorial Scholarship. Mention of the $25.00 awards (but not the competitive scholarships) continued in the minutes, on and off, for nearly thirty years and, in the interim, the committee expanded the awards to include students from five other schools3 in the state besides UA. With the onset of the Great Depression in the 1930s and World War II in the 1940s, efforts to help students were largely put on hold. Revenues to the Society dried up as CPAs (like many others) lost their jobs but efforts to help train new accountants continued. For example, in 1942 the Society and long-term UA professor S. Paul Garner developed a program through the University to train new bookkeepers and accountants to staff the many defense contractors that operated in the state. The end of the war in the mid-1940s brought back an active Society Educational Committee whose would begin to make inroads with students considering public accounting as a career. In addition to the scholarships and awards that began with the 1926 annual meeting, the minutes of that year also pointed to another way that new accountants could be trained and acclimated to the profession. In this case Walter Smith, a CPA in Mobile, explained that “Spring Hill College allowed accountant students to do some actual work in offices of the [CPAs] and that it allowed [academic] credit for such work.” Smith said he used “several of the students and encouraged other schools and firms to participate in this practice because the results were satisfactory not only to his firm, but the experience was of great value to the students.” Although never using the word internship, this practice from Spring Hill College would eventually develop into the standard (and some say required) internships provided by firms and supported by accounting programs to prepare students for accounting careers. Society efforts regarding internships began in earnest after World War 2 Langston Hawley went on to teach accounting at U of A in fall 1934. He received a Ph.D and then taught management at the school. 3 These included Alabama Polytechnic (Auburn), Florence State Teachers College (North Alabama), Birmingham Southern, Howard College (Samford) and Springhill College.

Fourth in a series on the History of the Alabama Society of CPAs and the profession in Alabama

HEIER HISTORY II when veterans filled the colleges using the GI Bill. In 1945, the committee began a program to find internships specifically for UA students. In 1948, the committee report suggested that the program possessed a “lasting significance for the future development of the profession in the state … [to encourage] some of the better students to consider public accounting as a career instead of going into private accounting.” To help the process of identifying students and graduates for potential employers, by the mid-1950s the Society published a list of accounting graduates available for employment and made it accessible to the firms in the state. In a sign of the times, the information provided to future employers included the candidate’s Selective Service draft status along with basic biographical and academic information! The process was transformed into the very successful Accounting Interview Day, started with the help of Dr. Judy Kamnikar at Auburn-Montgomery. The program was designed to provide an opportunity for students from smaller Alabama accounting programs to interview with larger statewide and national accounting firms and businesses. In 1950 the original internship program met with some difficulties when it was asserted that interns (and graduates) were leaving the state because many of the Alabama-based firms were not participating in the program or hiring new employees. In modern sociological terminology, this is called a “brain-drain.” In addition, it appeared that not enough new students were entering UA and other Alabama accounting programs to fill all of the requests for interns by out of state employers, let alone staffing any Alabama-based firms. With this in mind, during the 1950s and 1960s, the Society continued to devise ways to bring enough new people into the public accounting profession. Kermit T. Hart, a CPA from Mobile and president of the Society, noted in his 1952 report to the annual meeting that “an emphasis was needed for a greater understanding and assistance to the colleges that are training most of the future public accountants.” That same year, the Education Committee reported that it wanted to develop an orientation program for candidates of CPA exam to “reduce the mystery concerned with the examination.” As such the committee began to make visits to the various universities “a portion of financial burden and colleges to “liaison” with the faculty and talk with accounting students about is lifted off my shoulders so I choosing public accounting as a career can better focus on my final rather than working for industry or bankyear… The scholarship will ing. These efforts were soon to be called encourage me to influence others, especially students, to “acuman” meetings to get students acset high goals for themselves.” climated to the accounting profession and lasted into the early 1970s. Into the 1960s, the committee continued its work and stayed in contact with the educational institutions. It added Jacksonville College and University of South Alabama to the list of schools where accounting students would be eligible for the Society’s awards. These awards, which now came with a medal, in addition to the $25.00 stipend, continued to show the Society’s interest in accounting education, but not necessarily its direct support. This particular program became the current Accounting Achievement Award given to the top student of each program in the state. It would not be until 1967 that the society would make its next major change in its educational focus. Although the records available do not give a specific date, it appears that in May or June 1967 the Education Committee was tasked with determining how the Society could set up a scholarship fund to directly support accounting students. This process culminated with the creation of the ASCPA’s Educational Foundation at the end of 1967. The first meeting of the new corporation board was in December 1967, with the following noted at the end of its original by-laws: “I, David E. Young4, Secretary of Educational Foundation of the Society of Certified Public 4 David Young was also the first full-time Executive Secretary of the ASCPA.

Accountants, a corporation, do hereby certify that the foregoing is a true and complete copy of the by-laws of this corporation as submitted at, read to, discussed and adopted as the by-laws of the corporation at the first meeting of the Board of Directors held on the 15th day of December, 1967.” The Foundation’s tax 501(c)(3) exemption status would not be formally approved by the U. S. Internal Revenue Service until May 1968. Although the by-laws of the organization did not seem to mention it, according to a recent IRS Form 990 from 2014, the mission of the foundation was, “to encourage qualified students to enter the field of accounting and to provide financial assistance to those students”. At the outset, the committee decided that the board members of the new foundation would be the five immediate past presidents of the Society. Although this would change with availability of funds and educational costs, the original scholarships would be no more than $500. Current scholarships are $2,500. At the 1968 annual meeting, the president of the new foundation, John Smither (CPA from Decatur) was questioned about the new foundation on several matters. The first matter led to a motion that two members who were not past presidents be put on the board. According to the minutes, it did not carry. In addition, the Society membership wanted to know if the foundation’s charter would be “published.” In light of a previous discussion about the amount of mail sent by the Society in 1967, it was decided to send copies of the charter “upon request.” Funding for the original scholarships would come principally come from the Society membership and individual CPA firm pledges. Each Alabama chapter of the ASCPA was responsible for contacting their local members. For the first six months of 1968 the foundation had $25,000 in pledges with $17,000 coming from individuals and the rest from firms. As of the June 1969, Foundation Secretary/Treasurer Jim Money of Tuscaloosa reported that the foundation had received $64,000 in pledges and it was felt that the “$100,000 goal of seed money could be met by the end of the year.” Unfortunately, according to council minutes, in 1971 it became apparent that collections of the pledges would be $10,000 less than anticipated due to “an over accounting” of the original pledges from the Mobile area. This created a situation where the new foundation was without enough funds to pay for administrative support and “… it helped me like a breath of fresh provide the requisite scholarair financially. … My parents were ships in 1969. As a result, the Society took responsibility for thrilled when they heard … but when I those costs and would for many explained to her the significance of the ASCPA, [my mother] understood it was years to come. much more than just another academic

Even with this shaky start, as achievement. … I think it showed her we celebrate the 2017 fiftieth I I’m growing in my career, and doing anniversary of the Educational well at it. … it solidified my choice of Foundation, the record shows becoming an accountant.” that it has been a great success. The Foundation has a current endowment fund in excess of $1.5 million. Most recently, there were awards of $75,000 for academic year 2017/18. These scholarships are awarded via an application process, although about half of the general scholarships are selected by faculty. There are other awards created by specific endowments and more based on student financial need and the efforts to expand diversity in the profession. Although the membership and firms continue to provide funding each year for the Foundation, a large part now comes from investment income and proceeds of the Young CPAs Annual Golf Tournament which raises around $20,000. This effort continues to impress upon the younger members of the profession, some of whom had recently benefited from the scholarship program, the need to help sustain the CPA profession into the future by providing a pipeline of highly educated, trained, and motivated young accountants.

Fourth in a series on the History of the Alabama Society of CPAs and the profession in Alabama

January/February

A Tempest in a Teapot or Professional Pugilism: The Society’s View of Relations between CPAs and Attorneys in 1950s Alabama Dr. Jan Richard Heier, CPA On January 16, 2018, the Alabama Society’s Montgomery Chapter held its annual bankers and attorneys luncheon at the Montgomery Country Club. This professional interaction began in the 1950s in order to generate cooperation between the state society and two other prominent professions, whose work often overlapped with that of the accounting profession. On one hand, the accounting profession’s relationship with the banking community appears to have been relatively strong over the years with a few issues, like bankers’ acceptance of non-audit reviews and compilations in the early 1980s, causing some relational friction. However, as the following article discusses, the congeniality between accountants and lawyers was not always so, well, congenial. Especially during the 1950s when a professional war between the two nearly erupted over the issue of non-attorney tax preparers and the right to read and interpret the U. S. tax code. According to Hopwood & Hreha, the accounting profession’s ability to prepare federal tax returns had been a given almost since the day that the 16th amendment to the U. S. Constitution was ratified in 1913. With the issuance of Treasury Circular 230 (TrC 230) in 1921, CPAs officially had the right to complete tax returns for clients and practice before the IRS (called enrolled agents). It was not until the advent of the Board of Tax Appeals (BTA) in 1932 that the American Bar Association (ABA) began its meddling and initiated efforts to shut out CPAs before the tax courts. Actual tax preparation, however, remained sacrosanct for the CPA, and hopefully would remain that way. Baily, in her history of early years of the Society, noted that issues related to an accountant’s right to perform tax work first appeared in its records in 1939 when the ASCPA Council discussed a letter from

outgoing Society president, and Birmingham CPA, J. J. Scarborough. In the letter, he observed that “activities [related to the] unauthorized practice of law have continued to be a matter of some concern to practicing accountants.” The letter went on to remark that negotiations between the ABA and the AIA (AICPA predecessor – the name changed in 1957) at the national level were underway, but it could take years for them to produce lasting fruit. This was due to the major impediment in developing “broad rules indicating a clear dividing-line between the practice of law and the practice of accounting in tax cases because of the interrelationship between accounting and law in this field.” As such, it was suggested that any “unauthorized practice of law” claims should be dealt with on a case-by-case basis. Apparently, this model was to be implemented in New York as a guide to other states, but it is unclear if that ever happened. When the Congress elevated the BTA to the status of a federal court in 1942, the judges of the new U. S. Tax Court required that all nonattorneys must pass what turned out to be an almost impossible exam, in order for CPAs and others to maintain their privilege to practice before the court. This dropped CPA participation from about a third of all representatives to only a handful. In 1951, the U. S. Treasury, in an update to TrC 230, gave nearly 90,000 preparers their “IRS practice cards” back. This action precipitated ABA challenges to make TrC 230 null-and-void based on the licensed practice of law. According to Baily, during this period the Alabama Society’s Birmingham Chapter “was active in seeking [an Alabama] a solution to the situation.” for which the society president “congratulated their satisfactory work in adopting policies between the Birmingham Bar and Birmingham Society Chapter at the 1951 annual meeting.”

This is the fifth in a series on the early development of the Society, with material coming from Society records and minutes, 1950s era Alabama CPA issues, Hopwood and Hreha “The Interprofessional Tax Altercation the Accounting Historians Journal, spring 1984 and Mary Baily’s History of the ASCPA 1919-1965.

ASCPA Connections

Fifth in a series on the History of the Alabama Society of CPAs and the profession in Alabama

HEIER HISTORY Despite these cooperative efforts, lawsuits were filed in many states. The first noted by Hopwood & Hreha was a 1950 New York case (Bercu) in which a corporation asked a CPA for help in preparing an annual tax return. After the work was completed, the company refused to pay the CPA on the grounds that he was practicing law without a license by giving tax law advice!1 The CPA sued for the compensation and lost, with the New York appellate court eventually upholding the original trial decision. In Minnesota, a CPA was also found guilty of practicing law without a license with the court holding, “That in order for a person to aid and assist a taxpayer in making out an income tax return presenting problems properly in the field of law … [for] … it is mandatory for such a person to have and possess knowledge, training, and skill found only … [in a] … duly licensed attorneys-at-law.” It was apparently acceptable for CPAs to complete the tax returns, but not legal for them to read or interpret the law without the guidance or approval of a licensed attorney. The most egregious case came in 1954 from the Agran decision in California. The particulars of this case were similar to Bercu, however, the end result was that the Supreme Court of California ruled that the approval of a CPA to represent a client before the Tax Court and IRS does not supersede an individual state’s regulations as to who can act give legal advice. Accountants, at least in California, were about to be stopped from giving tax advice, and possibly from preparing tax returns, unless an attorney reviewed them. Well, as in the old saying, as California goes, so does the rest of country. Although all seemed quiet on the home front, the Alabama Society was obviously weary of events in other states. At its May 1953 Annual Meeting, the Society voted to extend an olive branch to the Alabama State Bar Association (SBA) to convene an Alabama State CPA-Lawyer Cooperation Committee (CC) along the lines of a set of principles agreed to by the AIA and the ABA in 1951. The two professions sought to “iron out” their differences through negotiation, not litigation.2 At about the same time the Society was working on developing the CC, its Legislative Committee chair Mayer Aldridge, learned of a bill sponsored by the SBA related to the: “limitation of practice before certain types of Boards, Commissions, and [regulatory bodies].” Aldridge stated that if passed, “in its present form [the bill] could be harmful to public accountants in the state of Alabama.” To mitigate its effect, Aldridge and Scarborough contacted the bill’s author, Henry Sims, a Birmingham attorney, who stated that he had no problem rewording sections of the bill provided that the president of the SBA approved the changes. Concerns about this legislation exacerbated the widening rift between attorneys and CPAs. To counteract its potential impact, at the May 6, 1954 council meeting Aldridge and Scarborough explained that the SBA was contacted about forming the committee, but the organization suggested that nothing could be accomplished in 1953 because they were in the process of transitioning presidents. The somewhat duplicitous nature of the comment was apparent when Aldridge reported that he attended the 1953 SBA annual meeting and noted that the CC request was never “formally presented.” Rather it was referred to the committee on the Unauthorized Practice of Law. This committee went on the record “as opposed to any agreements or statements of principles with accountants … until certain legislation, then pending, was enacted into law satisfactory to it.” In other words they wanted the upper hand before any negotiations occurred. 1 There seems to an implication that this was a set-up against the CPA profession from the start by CPA/Lawyer who operated the company. 2 The AIA was a bit hamstrung on the national cooperation committee because the ABA demanded and got a provision that said their participation was conditional on always having 51% or more of voting power.

Aldridge and Scarbourgh later reported that the SBA legislation to “more clearly define what constitutes the unlawful practice of law” was not enacted during the 1953 legislative session but was “in danger” of coming back in 1954, and ominously suggested that the matter “may precipitate a contest between the two professions.” They concluded by writing, “Your committee therefore feels that our gesture of cooperation was tabled by the SBA at the present, we have not pursued the matter further as it seemed inopportune to do so at this time … Notwithstanding the fact that the [relations] have improved at the national level, there are repeated efforts at the State level to restrict the field of the accountant, notably in California.” It was no wonder that the leadership of the Alabama Society got even more nervous when SBA announced in September 19543 that it was establishing a committee on taxation to: 1) advise the Bar as to significant changes in tax law; 2) recommend proposals with respect to taxation; 3) advise (sic: lobby) as to laws and regulations concerning taxation; 4) generally act as a committee about taxation. The most onerous part of this new committee’s charges for the Society probably was the third item because, considering the lawsuits throughout the country, it appeared that the nationwide conflict between CPAs and attorneys was moving south to Alabama. The growing professional concern among Alabama CPAs regarding the Agran decision was apparent in an article in the October 1954 issue of the Alabama CPA. It reported on a member discussion about this issue during the September 17 Birmingham Chapter meeting. Although there was a wide range of opinions on the tax practice matter, the article noted two overwhelming conclusions. First: some concluded that “to help our relationship with the Bar”, the profession should essentially capitulate and “amend our rules of professional conduct to provide that no member will engage in the practice of law (tax work) unless he is admitted to the Bar.” Others felt that accountants were destined to lose this war between the two national associations and those that wish to retain our tax practices should enroll in law schools and get ready for the Bar examination.. Neither of the opinions was, to say the least, very optimistic: It seemed pessimism was the theme of the day. In the same edition of the Alabama CPA, the publication’s editor, William H. Whitney, presented a rather lengthy (eight page) editorial entitled “Simplicity Versus Complexity.” In it he wrote that the law profession did not become interested in preparing taxes until it was published that completing the tax return for General Motors could earned a “six-figure” fee. He further surmised that, “There are few lawyers with successful tax practices because of their own incompetence. Clients just do not gravitate to an incompetent professional man.” He further implied that lawyers that cannot compete within their own profession are now “invading the field occupied by the accounting profession” These cynical jabs at attorneys’ aside, the editorial concluded that most attorneys probably did not want to do taxes because the accountant was much better suited to the complex computations involved. Although no action was noted on a bill pending in 1954 that would limit certain activities of CPAs, the tensions continued. By mid-1955 there were, however, efforts in most states for reconciliations between the two professions. At its July 1955 meeting, the Society’s council endorsed the AIA’s attempts at reconciliation that included 1) renewed negotiations with the ABA; 2) efforts to get the U.S. Treasury to better clarify Circular 230; 3) support for pending Congressional legislation to “reaffirm the Treasury’s authority to regulate tax practitioners; and 3 The President of the Alabama Bar in 1954 was Judge Walter B. Jones who was instrumental in shepherding the original CPA law through the Alabama legislature thirty-five years earlier in 1919.

Fifth in a series on the History of the Alabama Society of CPAs and the profession in Alabama

January/February

finally 4) legal action “to bring Agran [or like case] involving the rights of CPAs in Treasury practice before the U.S. Supreme Court”. Of these four items, the Treasury soon proceeded to clarify Circular 230 as to the rights of CPAs and others to perform tax work without requiring a law license. Such action by the federal government, and presumably the fact that the Alabama Bar’s onerous legislation was never passed, seemed to create a thaw in the tensions between the two professions. This was apparent in an article in the January 1957 issue of Alabama CPA about the Lawyer-Accountant Workshop on tax law that transpired on December 12, 1956 at Montgomery’s Whitley Hotel. The article noted that: “This is known to be the first such meeting … in Alabama and perhaps in the United States.” Amazingly, the meeting resulted from an invitation extended by officers of the SBA to the officers of the Society to plan a joint program. It was reported that during the meeting little or nothing was discussed about the legal tensions between the two professions and, “by implication there was every indication of mutual respect, mutual goodwill, mutual confidence, and mutual recognition of a duty on each side to give clients the benefit of skills and knowledge possessed by those on the other side when clients’ interests were served by doing so.” After nearly two decades, a longterm armistice appeared to be possible.

Summary of the Whitney Editorial “Simplicity Versus Complexity.” • In 1913 when the 16th amendment was enacted, the legal profession showed no interest in federal tax practice. • The simple law entailed the completion of complex accounting procedures to have a successful tax practice. The law profession did not have those skills. • Because the skills needed, there was really no rivalry between the practices of “tax accounting” and “tax law,” because each profession must know their own competencies and limitations. • The U.S. Treasury, in completing the 1954 Tax Code, relied heavily on the CPA profession for inputs into the changes. • Taxpayers can rely on the accounting profession to use every opportunity available to simplify a complex tax code and help reduce a person’s tax burden. • If CPAs no longer can perform tax work, the taxpayers would be the biggest losers because they would have to pay more in [legal fees] to have their tax work completed. • The CPA profession should inform their clients about the issues at hand and ask their representatives to support a bill (H.R. 9922) before the Congress to “officially” allow CPAs and other to complete tax work.

The professional war, at least in Alabama, did not end until 1959 when the Alabama Bar and the Society agreed to “a statement of principles relating to the field of federal taxation comparable to those adopted by the [ABA and AICPA].” The Society approved these principles at its 1959 annual meeting. As Hopwood & Hreha reported, nationally the conflict formally came to an end in 1965 when the Congress passed legislation that specifically and permanently granted CPAs the right to practice in the arena of taxes and tax law. Well then, who won? Clearly the legal profession retained its right to prepare returns, and to conduct litigation in courts in the case of conflicts in the tax law or criminal actions. At the same time, the CPA profession solidified its right to interpret tax law, prepare tax returns, and represent their clients before the IRS and Tax Court, navigating their clients through latest of in a string of CPA full employment acts -- The Tax Cuts and Jobs Act of 2017.

ASCPA Connections

Fifth in a series on the History of the Alabama Society of CPAs and the profession in Alabama

HEIER HISTORY while department head at the university, serving as chair of the American Accounting Association and being noted as one of the foremost accounting research scholars at the time.3 The records of the Society did show reimbursements for the money he spent on his “volunteer” position and, on an occasional basis, a $25.00 honorarium was voted by the membership to thank Dr. Garner.4 Everyone knew, however, that this could not last.

We Have Paul

The decade-long process of finding the Society’s first paid executive1 Dr. Jan Richard Heier, CPA At the January 17, 1959 Council Meeting of the ASCPA, Edward Powers, a CPA from Birmingham and chair of the Executive Secretary Search Committee, formally moved that David E. Young be offered the position of the Society’s first paid and permanent executive with the designated title of executive secretary [box 1]. This was a momentous milestone for the Society and one that was almost a decade in the making. The process had been both acrimonious and somewhat comical from the beginning. For example, when the possibility of a paid executive was informally discussed in the late 1940s, one wit said, “Why do we need [one], we have Paul”, whom it was implied would do the job for free. The “Paul” he was referring to was S. Paul Garner, eminent accounting scholar at the University of Alabama, who served on and off as the Society’s secretary-treasurer for nearly a decade. During that time he “singlehandedly” completed the Society’s financial reports,2 and prepared/distributed most correspondence. Dr. Garner did all of this 1 Materials of this article come from Society records and the Montgomery Advertiser. 2 A review of these reports shows how financial reporting for notfor-profit organizations evolved over the first century of ASCPA’s existence.

Although it is very difficult to pin down when the first formal comments about the need for a paid executive occurred, the catalyst came from a problem related to filling a State Board of Accountancy vacancy on a timely basis. In or about 1951, a board vacancy occurred at a time of transition from one set of Society officers to another. It was also, unfortunately, the end of tax season. At the April 28, 1951 ASCPA Council Meeting, it was moved and seconded that Society President, James Regan (Birmingham), should meet with then Governor Gordon Persons and ask for a delay in filling a vacant seat. The delay would allow the Society to discuss a replacement at its annual meeting in late May. Evidently the governor agreed. The Society became aware of an occasional leadership gap that left it unable to fulfill a non-binding practice agreement among the Society, the Alabama Board of Accountancy, and the governor’s office to recommend candidates for ASBPA vacancies. It was all too apparent that to be an effective (and politically savvy) organization, the Society needed someone on a fulltime basis to deal with Board appointments and legislative concerns when officers were not available to help. The second issue that precipitated a need for a fulltime executive was the doubling of the Society’s membership in the years since the end of World War II. The administrative nightmare was heightened by membership mail outs and other Society correspondence approaching 5,000 pieces per year with only volunteer help available. In some cases, it appeared that employees of a volunteer’s firm (or other organization, as the case may be) helped to complete communications from the Society to its membership, as evidenced by the use of firm stationery. 3 During this period Dr. Garner published one of the seminal books on accounting history entitled: Evolution of cost accounting to 1925. 4 In 1958, the Society voted Dr. Garner was $600 honorarium: his last.

Sixth in a series on the History of the Alabama Society of CPAs and the profession in Alabama

Again, a fulltime executive could be tasked with these administrative responsibilities. In the president’s report of May 23, 1952, Kermit Hart formally put the issue of an executive on the record when he listed a ten point plan to “improve and strengthen the society and at the same time provide added credit to the profession.” The number one item on this agenda was to “secure as soon as possible at least a part-time qualified executive director.” As part of this plan, Hart tasked a sub-committee (comprised of Winton Brooke from Anniston and Hardin Thomas of Birmingham and, of course, PAUL) to explore the possibility of hiring an executive in the near future. The first official documents related to hiring an executive came from the September 5, 1952 ASCPA Council Meeting held at the offices of Crane, Jackson and Wilson in Montgomery. Council President James Money (Tuscaloosa) opened the discussion with a review of projected dues for the next five years. At this point, it appeared that even with the projected growth of the Society, only about $2,500 would be available to pay an executive. The sub-committee made it clear that $2,500 was not enough, based on their discussions with Mr. Beasley, the Florida Institute’s executive. Beasley commented first that Alabama should not employ a joint executive with another organization, but that a temporary or part-time one would be viable alternative. After noting that the salary of a fulltime secretary of the Florida Institute was $12,000 per year, or about two thirds of their total budget (about the same as ASCPA’s own projections), it was apparent that Alabama Society had a lot of groundwork to complete before they could hire an executive. Beasley emphasized, “Regardless of the type of employment, the expenses would have to be underwritten by the membership.” Subcommittee chair Brooke shared that it was the opinion of the subcommittee that the Alabama Society should employ a non-CPA because a CPA could not “…toot our horn as loudly as a non-CPA.” He then noted that members’ dues should be raised by $50.00 per year for the “..purpose of financing the employment of a fulltime secretary.” In turn, the council instructed the subcommittee to develop a five year budget to determine if (and when) the ASCPA could afford to make a hire. By the time of the 1953 annual meeting, the committee would confidently project that, through a combination of increases in dues and projected increases in membership, it was possible for the Society to have nearly $8,000 per year available by 1958. Therefore, at the 1953 meeting the membership accepted the proposal to incrementally January/February

increase annual dues with a vote of a $10.00 per annum for five years. The resulting fund would pay for the salary of an executive secretary starting somewhere between 1956 and 1958.

dition, the new executive would also act as a liaison with the various ASCPA chapters and committees tasked to monitor legislation and professional ethics issues, organize meetings and other activities.

By the 1954 annual meeting on May 8, the subcommittee presented5 its findings and its recommendations, based on the principles set out at the 1953 meeting. Their report outlined projected growth in dues and membership that indicated that there was a good possibility that a $7,800 per year fund would be available by May 1956. The committee told the members that they should be on the lookout for potential applicants and explained the type of person that the Society needed. They wrote: “The background and personality characteristics of the this person will bear some analysis inasmuch as he will fulfill the important functions of a leader and coordinator; a constant representative and instigator of progress to the Society’s members … and those groups which both influence and are influenced by the accounting profession.” They then made a list of important criteria needed for a successful candidate [box II].

It is interesting to see that the committee also made a bold statement when it wrote “…throughout this report masculine gender was used; however, there is no implication intended that a women might fail in this assignment. Your Committee expresses no opinion as to whether the executive secretary should be a man or woman, but it does want to point out that both have advantages and disadvantages [that] would accrue to either.” Apparently, in 1954 everyone knew exactly what the advantages or disadvantages were and the committee [may have wisely] ended the report rather than trying to enumerate them.6

To emphasize the Society’s administrative issues, they further explained that such a person would “…lift from the shoulders of officers many of the burdens now borne by them”, giving the Society the ability to expand by 25% or more in membership. In addition, the continuing problem of routine functioning of the elected officers is ineffective for three months out of the year was noted. During this time (both tax season and officer transition at the time of the annual business meeting), the new executive could continue to monitor matters related to the society and dispense with them, unless guidance from the officers or council was necessary. In ad5 The subcommittee was reappointed three times. The last was by Society Council President John Borden of Montgomery in 1954.

of hiring an executive would be the downfall and bankruptcy of the Society! Well, after all, they still had Paul. Part II of this article will pick up in 1958 when the Society finally had both the money, the stability, and the will to search for and hire the first fulltime executive secretary. It would be David Young, who despite health problems and political opposition, developed a lasting model for the job of the Society executive that lasted nearly intact until the early 2000s; a model that is based on “tooting the horn” for the accounting profession. 1 As it turned out the first executive secretary, like the three since, spent a considerable amount of time dealing with the state legislature and state board.

The need for an executive would again be brought up at the 1955 annual meeting by ASCPA Council President John Borden. Unfortunately, with the continuing challenges by the national bar organization and the Alabama Bar to take away the CPAs’ ability to give tax advice and prepare tax returns without attorney review, the issue of a hire was put on hold for over three years until these issues were finally resolved.7 In 1956, the Society leadership tried once again to make a hire, but renewed opposition from a portion of the membership over the cost of the executive, and the increase in dues necessary, again postponed any decision. One enterprising (opposing) member even created a budget to show the definitive consequence 6 As a contrast, and a sign of the times, in April 1954 the Society sent out informational brochures on the accounting profession to all 300 “white” high schools in Alabama. Although there were female CPAs, with Clara Chambers the first in 1945, in Alabama, it would not be until 1974 that Alabama would confer a CPA certificate to an African America, James White. 7 See ASCPA Connections Magazine “A Tempest in a Teapot or Professional Pugilism: The Society’s View of Relations between CPAs and Attorneys in 1950s” Alabama, March/April 2018.

Box I–Montgomery Advertiser, March 3, 1959

He must have imagination, integrity, and diplomacy;

A nodding acquaintance with politics;1

Writing experience;

Experience in coordinating small groups;

Working knowledge of various groups of people in Alabama like business and civic associations, publicity outlets and the like;

A fair knowledge of printing, layout and publicity mechanics.

Box II–Experience Needed for the Society Executive. 24

ASCPA Connections

Sixth in a series on the History of the Alabama Society of CPAs and the profession in Alabama

HEIER HISTORY tion Service where he worked for ten years. During the 1950s Young completed a master’s degree in agricultural education and counseling and worked with many civic organizations such as the Lion’s Club and its associated Alabama Sight Conservation Association. He was instrumental in forming the Alabama Association of Mental Health and one of America’s first really successful not-for-profit organizations, the March of Dimes, whose goal was to eradicate child birth defects. Finally, Young was a very active member of Montgomery’s Cloverdale Church of Christ. From his resume, it was clear that Young was a focused worker with the talents that Society needed: organizational skills, leadership skills, and community skills. Young, however, would eventually make his lasting mark on the Society through his love of education.

Exhibit I – Picture of a C46 Commando flying the “Hump” in World War II

Flying into the Job:

The society’s first executive, his accomplishments, his challenges, and his legacy1 1 Materials of this article come from Society records, the Montgomery Advertiser, and Mary Bailey’s History of the ASCPA. 1919-1965

The Montgomery Advertiser (MA) from July 22, 1973 reported that the Educational Foundation of the Alabama Society of CPAs awarded an accounting scholarship to Jimmy L. Hurst, a Jacksonville State accounting major from Talladega. The Foundation named this scholarship after David E. Young, the first executive secretary of the Society. He had died in December 1972 at age 56 after an extended illness. A previous article discussed, the process of hiring the first full-time ASCPA executive lasted nearly a decade and included uncharacteristic political maneuvers within the Society. At the January 17, 1959 ASCPA Council Meeting, Edward Powers, Birmingham CPA and chair of the search committee, formally moved that David E. Young be offered the position.2 The ASCPA Council offered Young a starting salary of $4,000,3 which he promptly accepted. On March 2, 1959 the Advertiser noted that Young’s responsibilities with the Society would include, “…the administration of the Society’s affairs and assisting in the group’s professional activities.” This article discusses Mr. Young’s twelve years at the helm of the Society before his untimely death in 1972. Biographical information published in several Advertiser articles 1958-1972 shared that Young was born in rural Lawrence County in 1916 and was a 1941 graduate of Auburn 2 The search committee only brought Young’s name forward with no other potential candidates were mentioned 3 The U.S. Bureau of Labor Statistics Inflation Calculator estimated this would be equivalent to $34,757.10 in 2018 dollars. Author Note: At this level of income, Jeannine Birmingham is probably eating her heart out.

University4 with a degree in agricultural education. He enlisted in the Army Air Corps immediately after the attack on Pearl Harbor on December 8, 1941 and earned his wings as a service pilot. He was assigned to Southwest Airlines as a trainer of the flight instructors who would teach thousands of new combat pilots. During 1943 he was attached stateside to the Air Corps Ferry Command5 to free up combat pilots from shifting aircraft from base to base. During this period he married Hilda Pope of Abbeville and they would have two children after the war, David Jr. and Brenda. In 1944 Young was reassigned to the Air Transport Command in the China-BurmaIndia theater of operations flying supplies in C46 Commando cargo planes from India to China over the eastern edge of Himalayas, known as “the Hump.” (Exhibit I). After earning a distinguished flying medal for completing 56 missions, Young was discharged from the service in 1946 attaining the rank of flight officer.6 After his return to Alabama, he was employed by the Veterans Administration as an agricultural training officer working with disabled veterans. In 1948 he was hired as a district supervisor for the Alabama State Department of Education’s Joint Vocational and Rehabilita4 The school was named Alabama Polytechnic Institute at this point in history. 5 This organization is famous for the all-female WASP (Women’s Air Force Service Pilots) organization. 6 The title “flight officer” was a military rank used by the United States Army Air Forces during World War II for mostly non-combat flight personnel.

Seventh in a series on the History of the Alabama Society of CPAs and the profession in Alabama

Young began work with the ASCPA in March 1959 and hit the ground running. His work ethic was more than apparent after presenting his first report on his activities to the Society’s Annual Meeting in June 1959. Although covering only three and half months, the report was ten pages detailing his travel schedule, meetings with various chapters, working on legislative issues and monitoring committee activities. Young was also able to identify several areas for improvement of the Society and its operations (Exhibit II) and presented them to the annual business meeting for discussion and action. At the end of the report, he noted: “… I am pleased to be filling [this] post as ... I can envision great things for this profession and certainly hope to be part of the growth and development that the future holds.” He ended in a self-deprecating manner by joking, “I certainly hope I have not talked myself out of a job by suggesting that some of you must assume responsibility and contribute your time and energy toward making The Accounting Profession the leading profession in the field of Public Service.” It would not be long before his skills as an advocate faced challenges to the integrity of the profession in Alabama. The primary challenge came from Alabama’s small, but politically savvy, Alabama Association of Public Accountants (PA). It was contesting the 40-year-old CPA law to gain a co-equal status in the accounting and auditing profession. Apparently, the PA profession started the challenge because its designation of PA (as unofficial as it was) was “dying out” and they wanted legislative protections (colloquially called dying class legislation) to allow PAs to be “grandfathered” in as a “class” of practicing accountants with a limited time for their members to register. According to the November 23, 1958 Council minutes the challenge began in late 1958 and to mitigate the problem a committee of six PA’s and six January/February

CPAs met on November 21 1958 to forge a framework of regulatory legislation “for the accounting profession in Alabama.” Out of this framework, Bill 571 was passed in January 1960. Unfortunately, before Young could deal with the legislation he had suffered a “serious heart attack” in mid-September 1959 at age 43 and remained in the hospital until the second week November 1959. During his absence, the Society officers, particularly President Winston Brooke of Anniston and Treasurer Frank Hill of Montgomery, took over his responsibilities. Although Young was back in the office by mid-December 1959 in a shortened work schedule, he did not appear in official council minutes until April 1960 when he was again the recording secretary. In his ASCPA Annual Meeting report on June 13, 1960 he thanked the Society for their support during his convalescence from the heart attack he suffered, and proceeded to discuss the work he completed since his illness. The new law apparently did not please either the CPAs or the PAs because it appeared that the PA’s could legally attest to financial statements, but not before a rigorous evaluation by the Alabama State Independent Contractors Board. Principally, the PAs would be regulated by the State Board of Accountancy but presumably licensed by the Contractors Board. In the end, regulations from Bill 571 were promulgated that required current PAs, who wished to be grandfathered needed to apply by September 30,1960 with the contractor’s board accepting and evaluating those viable applications by December 30, 1960. The applicant then was required to pass a “CPA Board exam” by December 31, 1961 to gain recognition. What really surprised the PAs is that they would have to show “audited financial statements” for the period of examination.7 Though left unspoken, this probably was done to show that each candidate was actually working in accounting. By the end of June 1960, only seventy applications from PAs (compared with about 500 current practicing CPAs) had been received with just a few months remaining in the application process.

again had a heart attack in church in Lawrence County, the area where he was from and where his parents still lived. Unfortunately, the development of modern medical treatment for such attacks was only in its infancy at this time with reports revealing that “although this was not as bad as his previous attack, he had to remain quiet under an “oxygen tent” with no visitors for two weeks … with months of bed rest expected.” It would two more years before UAB hospitals would perform their first open heart bypass operation that would be eventually become the primary treatment for avoiding future heart attacks. Young would survive this setback and served the Society for a dozen more years. The next time that Young appeared in the records was as recording secretary for the council on February 25, 1961. Now apparently in good health, Young would work for eleven more years making positive mark of the Society and the profession through the use of his experience as a vocational rehabilitation expert. His first challenge, however, would be from the PAs. They wished now for a change

in the Bill 571 that they originally supported, asking for “perpetuation of the PA profession, equal representation on the board of accountancy, and a ‘lesser’ exam for PAs compared to that for a CPA.” Well, so much for equality. The two groups would wrangle for another four years, at which time Gov. George Wallace signed legislation in July 1965 to realign the CPA board. Under the new law, the CPA Board was expanded to five members, the requirement of an attorney member was dropped, and the PAs were “temporarily” recognized as a regulated profession in Alabama with one PA to serve on the Board. Thanks to lobbying from the council and Young, the number of PAs grandfathered remained at about the original 1962 levels8, It would not be until February 2018, that this legislation was changed and the requirement of PA representative on the board was dropped because that profession had largely “and officially” died out with few candidates left to take this position. Over the next seven years, Young’s background of educational training came to forefront as he became an ardent advocate for

Congratulations to the ASCPA on their Centennial Celebration!

Although he was partially back to his administrative duties by January 1960, Young was not able to not participate in the political activities of the Society before he had a second health setback. At the August 31, 1960 Council meeting it was announced Young 7 Eventually this would be required for all independent contractors but the process had to be clarified to deal with business year-ends other than December 31.

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8 In addition to thisBUTLER, legislative fight, there were many others facing FROM THE STAFF AT BERN, Young including a challenge to CPAs auditing of public hospitals and municipalities which, at this time, was assumed to be the purview of

the Alabama Examiners of Public Accounts. Eventually the elected CAPILOUTO & MASSEY, P.C. State Auditor would ask for more audit power and subject these entities to a possible triple audit. In the end the State Auditor accepted only

4137 CARLMICHAEL ROAD SUITE 200, MONTGOMERY, ALproperty 36106 the constitutionally authorized audits of state inventories.

CPAs began auditing municipalities for GAAP reporting purposes and

issuances of the annual. Comprehensive Annual Financial Report 334.244.4100 | WWW.BBCM-CPA.COM (CAFR) required by the Governmental Accounting Standards Board (GASB).

Seventh in a series on the History of the Alabama Society of CPAs and the profession in Alabama

HEIER HISTORY ing standards. Attendance exceeded 67% of the registered CPAs in Alabama. By 1966 the success of courses compelled the Society to form a Professional Development Fund to account for the courses separately from regular Society business. Although the “profits” of the fund remained as “seed money’ for future classes, transfers from time to time were made to help with the costs of operating the Society.

Exhibit I – Picture of Young from the Montgomery Advertiser Feb. 11, 1962 continuing professional development and education of practicing CPAs. Training CPAs was actually nothing new to the Society who had been co-sponsoring the Alabama Tax Clinic since 1947 along with the University of Alabama. In the mid-1950s, the Society also provided training on Electronic Data Processing and the Management of Small Businesses. However, with the advent of accounting and auditing standards from the Accounting Principles Board and AICPA, Mr. Young and the Council felt that it was necessary to develop and present courses sponsored by the Society. In 1962 a Committee for Professional Development was organized and in its first report to the membership they indicated that, “It is the opinion of the committee that a systematic program of continuing education should be adopted by every practitioner to assure his own growth and development.” Based on the need for CPAs to maintain professional knowledge and skills, between 1962 and 1965 Baily reported that the society sponsored twenty six professional development courses with topics ranging from managing a CPA firm to understanding newly issued accounting and audit-

During the 1960s, Young also became involved with the AICPA’s national efforts to expand professional education. For example, in 1966 Young attended a national planning meeting hosted by the AICPA that covered such topics as scheduling, promotion, and faculty for CPE courses as they were now being called. As part of his efforts to “institutionalize” professional development for CPAs in Alabama, Young also became a member of the recently formed National CPA Society Executives Association whom he served first as secretary/treasurer and later president in 1967 and 1968. In an interview about the organization in the MA, he stated that “he was amazed to find that many of the state directors did not have the [close relationship] with their membership as he does with Alabama’s Society membership. With his and the membership’s hard work, Young, in his 1967 annual report, explained that “your Society work is being recognized by … other states … therefore the tempo of requests concerning [your programs] is picking up considerably.” In 1971, the AICPA called for all CPA members to undergo annual training and by 1972, the Alabama State Board had written regulatory rules for legislative approval requiring professional development hours for all licensed certificate holders (maybe). In addition to these efforts, Young administratively was sending out in excess of 22,500 pieces of mail by the 1966-1967 fiscal year. As a result, the Board and the Council approved a hiring of a secretary and larger office space. To help with this mailing problem he also purchased a used Address – o – Graph machine9 to deal with the expanding list of society. Communication was important for Young who often sent out many letters explaining new legislation, changes in bylaws, questionnaires regarding the member’s opinion and, of course, on the collection of dues. This communication between the Society and its membership continues to be important, but now it is fulfilled by less work intensive means like e-mail. With this excellent work ethic and advocacy of the profession, Young continued to be rewarded by the Society who was now paying him $8,700 per year.10 9 If you really want to know what this is, go to https://en.wikipedia.org/ wiki/Addressograph 10 His final annual salary would be $11,200.

Seventh in a series on the History of the Alabama Society of CPAs and the profession in Alabama

Over the next five years, Young continued his efforts with professional development and monitoring legislation that might be detrimental to Alabama’s CPAs. This was accomplished while acting as the “de facto” executive director of the State Board of Accountancy that was housed in the same set of offices. He performed a wide range of administrative duties for the board from verifying dues to dealing with CPA ethics problems, in addition to member communication. It would not be until 1985 when the State Board of Accountancy had its own executive director. All was going well for Young until May 1972. Executive Committee minutes in the months prior to May show that Young was continuing to work on professional development, CPA professional insurance and general administration of the Society, but his old nemeses, the PAs, were in the process of filing another legislative effort. The problem was never fully explained in the documents but seemed to focus on the PAs asking the legislature to exempt them from the coming state board professional education requirements. After the AICPA asked for across-the-board requirements, the state board wrote regulations and legislation to require 120 hours over three years, but backed off to 96 hours. Through a series of regulations, by 1984 the Board would have the power to enforce CPE for CPAs, but not exactly for PAs.11 The last formal mention of Young at this point would be at an April 26 meeting where he discussed problems of attendance for the upcoming 1972 annual meeting to be held in the Bahamas. Apparently, the Society chartered three planes to take all of the participants and spouses, but reservations were lagging. About three weeks later David Young would again be in intensive care and just holding his own. David Young Jr., 12 came to the June 3, 1972 meeting with a cautiously optimistic outlook for his father’s recovery, but it was expected to take six months for Young senior to recover. Although both of his children were out of high school and his wife Hilda had been employed as an English teacher for 27 years in the Montgomery Public Schools, 13 the Society kept Young on full salary for the time being with hopes of a quick recovery. Unfortunately, by end of July 1972 it was becoming clearer that Young might never return to work. At this point, the Executive Committee took steps to 11 A person who passes the CPA examination, …, must complete at least forty (40) acceptable professional CPE, --- Filed September 3, 1982 12 David Young Jr. was a 1965 winner of the prestigious Jimmy Hitchcock award in 1965 as the half-back for the state championship Lanier High School Poets. 13 According to Hilda Young’s obituary in 2013, in addition to being a teacher, she was the president of the Montgomery County Teacher’s Association and enjoyed a reputation in Montgomery for service projects. She was 95 when she passed away.

January/February

minded professional club and changed it into a modern professional organization that continues to advocate for the accounting profession and serve its members. maintain the Society’s integrity and continue to help the Youngs financially. First it was decided that the Society could only pay his salary through the end of November 1972, at which time it would be cut in half and finally ending by mid-1973. In the meantime the Society set up a special trust account to take donations for the Youngs. By the end of November, the trust fund was just shy of $4,000 that could be accessed by the family to pay medical bills or supplement income. Finally, Mr. Joe Robertson14, a retired army colonel, was hired as the Assistant Executive Secretary to, at least temporarily, take over Young’s duties.. In early November, things actually began looking up for the David Young and his doctor allowed him to come back to work half time after the Thanksgiving holiday. During this time he was able to come to two executive committee meetings on Nov 30 and Dec 12. At the November meeting he was surprised 14 After Young’s death, Joe Robertson was named Executive Secretary and served until 1988. His story and obituary was published in the September 2015 Connections Magazine

ASCPA Connections

by the existence of the Trust Fund and at the December meeting he even optimistically asked for funding to go to the 1973 AICPA annual meeting to be held in Portland, Oregon. Unfortunately, a week later word came that David E. Young passed away at 12:45 am on December 19, 1972: He was only 56 years old.

a. Create a president-elect position to eliminate

Young’s term was up, but over the ensuing half century his legacy continues in the form of the wide-ranging CPE programs of the Society and its work with the legislature to move legislation that is to its advantage. Young also put together an embryonic framework for the Society’s modern administration and acts as a model for all subsequent Society executives. Finally, as discussed in a previous article15 in this series, Young championed the development of the Educational Foundation to help recruit and educate new members of the profession. In the end, the Society would name the first scholarships after him. Overall, Young took a forty-year-old provincially-

will always be experienced people on a given committee at the beginning of each year.

the problem of no viable Society leadership at the end of each year.

b. Establishing Committee Day so that all

committee meet at least once a year.

c. Rotating committee appointments so that there

d. Create a publication committee to handle the

Society’s monthly newsletter

e. Establishment of additional chapters

particularly in the Anniston/Gadsden and Dothan areas.

f. Increasing participation in the Society by all of

its membership.

Exhibit II – Young’s First Recommendations to the Society’s membership June 1959

15 Note Connections Sept. /Oct 2017

Seventh in a series on the History of the Alabama Society of CPAs and the profession in Alabama

Accounting Change and its Impact on Alabama’s CPA Profession: A Personal Essay Dr. Jan Richard Heier

About three years ago, Jeannine Birmingham approached me about writing a book on the history of the Alabama Society for its centennial anniversary. With a few fits and starts, it was decided that I would write a series of articles about the Society’s history for publication in Connections Magazine. As a long-time professor at Auburn Montgomery, familiar with “publish or perish rules”, I spent much of my time publishing articles on accounting history and development. In most cases these articles were academically formal, but in researching and writing the Society articles, I was elated that I could use more creativity to tell a story—and I enjoyed every minute of the process. In the first seven articles in this series, I attempted to show the growth and maturing of the profession in Alabama through its first fifty years and how these historical events continue to influence the profession into a new century. This article looks to bring the profession up to date with a discussion of the changes that have occurred in the last few decades and the reaction of these changes by the profession. For the article, I had a conversation with Landon (Lanny) Crane1 of Jackson Thornton, a nearly 60 year veteran of the profession. We discussed a number of areas of change and challenge for the profession over the years. Regardless of the adversities facing the profession, for Mr. Crane the bottom line was a stalwart continuity that met all challenges: client confidence and trust in the integrity, training, and professionalism of the Certified Public Accountant. Standards Overload and Tax Code Changes: Mr. Crane indicated one of the primary issues he faced over a fifty year career were the constant changes in tax laws and accounting standards. I have experience this first-hand as a college professor. For example, in mid-1970s my intermediate accounting book2 (which was only $12.50 compared to nearly $400 today) did not even talk about the Financial Accounting Standards Board. Instead there were only seventeen Accounting Principles Board pronouncements and Accounting Research Bulletin 43 (a codification of all previous ARBs and a few updates). The “standards overload” problem since then has done more to impact the direction of the profession with over 950 accounting and auditing standards issued by an “alphabet soup” of private and government agencies. There is absolutely no way an individual accountant, or professor for that matter, could know everything, even with the sophisticated codifications that now exist. The impact exponentially expanded the profession’s knowledge and has moved CPA professionals from generalists into a more fragmented profession of specialists in both tax and auditing, as well as an ever growing list of other areas such as business valuation and litigation support. To help with the overload problem, the Society has provided a wide range of continuing professional education courses to allow the audit professional to grasp the requirements lengthy and complicated professional standards. For tax professionals, the Society has partnered with the University of Alabama and Alabama Bar to provide the Alabama Tax Clinic since 1947. As noted in a previous article, the silver-lining for the profession is that any legislative tax changes can amount to an “accountants 1 Mr. Crane was the grandson of Harold Crane, one of Alabama’s first CPA in 1919 and one of the original partners at Crane Jackson Thornton one of the state’s oldest firms. 2 Personal Note: It is fun to inform students that I had to complete intermediate accounting without the use of a calculator which I could not afford until senior year. The TI 10 was $89 or about $375 in today’s money. The best part though is the look of horror on their faces when there is a realization that I am the age of their grand-parents

HEIER HISTORY full-employment act.” As a partner from a local firm related to me, “Congress can pass the ever-discussed flat tax the day after I retire.” It is interesting that I can trace a portion of my life through the changes in the accounting standards since 1973. For example, the first FASB pronouncements occurred while I was in the later stages of my undergraduate years in 1977. In my master’s program, I was a bank analyst when SAARs pronouncements were issued. This concerned the banks because it allowed the CPA profession to give limited assurance as to the fairness of the customer’s financial statements without an audit, but it also gave customers the ability to reduce costs, leaving more money to pay back loans. During my doctoral program in the mid-1980s, there was an expansion of the application of present value calculations to more and more transactions along with the elimination Statement of Changes in Financial Position in favor of the bane of all intermediate students, the Cash-flow-Statement. In the middle of my career at Auburn University Montgomery, the PCAOB came into existence and I published an article on the fickle changes in audit standards regarding the responsibility of CPAs to understand internal controls. By 2015, Board had issued 163 statements and too many Accounting Standards Updates (ASUs) to count. It was at this point I figured it was a great time to retire. Dr. Heier’s Accounting Personal Accounting Odyssey - #1 From Low Tech to High Tech Confusion: What is block chain? Frankly, I doubt very much that even the people who say they know the inner workings of block chains, really don’t; but apparently it is something that will significantly impact financial reporting and auditing in the near future. As has happened numerous times in the past, the pundits are again prophesizing the end of the accounting profession. Who needs accountants if the transactions are self-audited? Who needs the accountants if the data is immutable? These were comments from an article on the Accounting Today website entitled “Audit is Dead in a Decade”. This would not be the first time this has happened to the profession. In the 1970s, as the accounting records of audit clients, especially the smaller clients, increasingly used electronic data processing to complete their transactions, the venerable Journal of Accountancy (April 1976) discussed the dire consequences of using generalized audit software. In effect, the article felt there was a looming independence problem (actually client internal control problem) because there was no way to verify the content and the process of client’s software; a “blackbox” problem. As a very literal accountant, this metaphor gave me fits in my auditing courses as I envisioned the color of the computer itself and not the program running the CPU. In essence, such a problem left accountants with concerns about the understanding integrity and computation integrity of the data with the implication of end of the profession if it could not overcome the problems.3 Bottom-line, the accounting firms needed programing and systems expertise. This is not much different from the current “Big Four” firms staffing up with a large percentage of new audit staffers in the form of systems people.4 The current article noted above, did point out that auditing has always been less about the format of the data and more about providing “independent verification of thirdparty data, … apply accounting standards, [to] use judgment to verify that the record is valid and accurate.” To shamelessly misquote Mark Twain, “the report of the death of the accounting profession is an exaggeration” – at least for now Regardless of the challenges of the past four decades, the CPA profession has been cognizant of change by adapting new methods, processes and standards to mitigate past, present and hopefully future challenges. With nearly 95% of audits of the largest of the companies in the U.S. completed by the Big four and next three, it is doubtful that the high-tech block chains and other related issues will directly impact local CPAs and their clients in the near term. However, even 3 The literature was rife with arguments of “auditing around” or “auditing through” the computer 4 As an aside, in a proactive stance, the Auditing Standards Board has announced the activation of a task-force to devise methods and standards to deal with block chain technology and related issues.

Eighth in a series on the History of the Alabama Society of CPAs and the profession in Alabama

January/February

local firms have embraced technology, with audits now conducted on lap-top computers and I-pads with work papers moving from encyclopedia sized books to online storage and even the “cloud”: Another metaphor I do not understand, after all a cloud is nothing more than heavy mist. Gone are the days of junior staff going to a warehouse and culling the working papers. As for tax practice, clients may still be bringing in “shoe-boxes” filled with receipts, but now at most firms they are scanned into a client folder for interface to a tax preparation software program. This probably has not made tax return preparation any easier, but it does cut down on input and calculation errors. So as you see, accountants are adaptable. A Big Change in the Men’s Club: According to Society records, the first female CPA to pass the exam in Alabama was Clara Chambers in 1948: nearly 30 years after the Alabama CPA law was passed. Mr. Crane related that Jackson Thornton hired its first female staff professional a few years after he started with the firm in 1960. In the course of time, the staff member would also be the firm’s first female partner. According to Mr. Crane, his firm (and all others too) had to change to accommodate the issues related to motherhood, childrearing, and family time. Even into the 1970s, as I struggled through intermediate and other classes at the University of Wisconsin at Oshkosh there were probably no more than ten female students, out of 80 or so accounting majors. Regarding female careers in accounting, a colleague of mine at AUM indicated that she was told after graduation in the late 1960s that a career in auditing probably was not viable because clients would never accept female auditors. That thankfully has changed. It would not be until 1986 when Barbara Malkove became the Society’s first female president (now chair). Although change was long incoming, the success of the early female pioneers in the profession helped to open a floodgate for the entrance of women in the profession during the 1990s. Through management flexibility and understanding, firms such as Jackson Thornton now have a cadre of female partners nearly equal in number to the male partners at the firm. I first took the 2½ day (19½ hour) exam under Wisconsin rules at the St Paul, Minnesota Civic Center in 1983 and passed Accounting Theory and Auditing. These made sense because it was based on a set of rules that that applied in most situations. It would not be until 1986 that I took it under Mississippi rules in the gymnasium at Mississippi College outside of Jackson, and passed the two day practice part. As I took this part it appeared that the accounting god’s were not kind because I had to complete a dreaded consolidation problem without benefit of a calculator. But, I made it through. From there, I think I took the business law portion twice more under Mississippi rules at the Civic Center in Montgomery, Alabama until I passed in 1988. Law literally made no sense to me because nothing balanced, but I finally had the “Holy Grail” and have been a Mississippi CPA for thirty years. Sufficient to say, I am a poster-boy for two CPA aphorisms. First, anything past a score of 75 on an exam part is wasted effort, and the CPA actually stands for CAN’T PASS AGAIN.

Education, and the Exam: Although we did not talk much about education, Mr. Crane did relate that he took the CPA exam at Montgomery’s Whitley Hotel and passed it on the first try after getting a degree at Auburn and moving on to Alabama for his masters degree. At this time, the exam had grown to a 2½ day (19½ hour) exam that featured a two part Accounting Practice section. It goes without saying that I did not pass the exam on the first try. See related box below. By 1989, the AICPA along with the National Association of State Boards of Accountancy (NASBA) recognized that a change was needed in the exam format and focus. The first changes would move the exam to a two day 15½ hour exam by combining Accounting Theory and Practice Sections to create an Accounting and Reporting Section (Parts A & B) along with Auditing and Business Law and Professional Practice Sections. The most controversial part of the change was to allow candidates to use NASBA approved calculators. At this point the AICPA asked for help and surveyed its membership. I would like to say that I saw the “no calculator” as a rite of passage for new CPAs, but agreed with the change because it was obvious that the expansion of accounting knowledge made them necessary. Besides, with 10 key adding machines around for decades, what accountant actually made calculations by hand? Everything was quiet until 2003 when it was decided that on-line testing would be the best approach to opening up the profession to eager new minds that were already tech-savvy. This process allowed the candidate to take the exam sections one at a time making the exam making it much easier to pass - well - not really. Even though the new exam format includes the traditional multiple choice questions and the completion of problems, and the exam writers created simulations that challenged candidates to complete an accounting problem, but research the application of the tax law or an accounting standard and write a report for grading. This process not only tested the accounting knowledge of the candidate but also the candidate’s all important communication skills. Final Comments: As noted above, I really enjoyed writing these articles on behalf of the Society’s upcoming Centennial celebration. This last article allowed me to remember and reminisce about a career in accounting that has lasted in excess of forty years. Although I never did a lot of accounting and auditing work myself, I can honestly say that I have vicariously lived through the accounting careers of countless students that I have taught over the years. It is a rare week that I do not run into a former student whose face I recognize but, unfortunately, whose names I do not! Generally I will inquire, with great interest and pride, what they are doing in their career. In most cases they will muse about how hard (and sometimes how boring) my classes were but usually they leave with a thank you and comments about actually using the “stuff” I taught. My general comment in return is a comment made by a good friend of mine to remind students that “if the classes weren’t so boring they could not get such good jobs.” It was really a great career.

Dr. Heier’s Personal Accounting Odyssey - #2

ASCPA Connections

Eighth in a series on the History of the Alabama Society of CPAs and the profession in Alabama

Carr, Riggs & Ingram is proud to celebrate the Alabama Society of CPAs C e n t e n n i a l A n n i v e r s a r y. . .

Cheers to 100 Years Top 20 CPA Firm | CRIcpa.com

MEMBERSHIP IT ALL STARTS HERE. SHANNA JACKSON, VP MEMBERSHIP AND WEBSITE ADMINISTRATION

Here’s the drill: Go to school, graduate, sit for (and pass) the Uniform CPA exam, earn experience, collect an additional 30 hours of credit, become a licensed CPA! The next step? Join the Alabama Society of CPAs, of course! Through our wonderful relationship with the Alabama State Board of Public Accountancy, we receive lists of newly-licensed CPAs every couple of weeks. It is then that the well-oiled machine of our membership department goes into high gear, making sure that new CPAs know about the ASCPA and are invited to join. This is nothing new, it’s been going on for the last 100 years. The key is getting members to join and to remain members. That’s pretty much the same challenge which EVERY member organization faces. We like to think that we offer exceptional value for your member dues (see below) and that remaining a member is not even a question. The goal of my department is to help people every day. Help them become members, help them update their information, help them rejoin the ASCPA and help them to access resources. While my job is to get new members on the bus, it’s the responsibility of every staff member at the ASCPA to provide the customer service and benefits that will keep members riding the bus year

POWER YOUR MEMBERSHIP ❱ UPDATE YOUR MEMBER PROFILE

• Stay connected when it matters • Select publications and interests • Discover benefits and opportunities ❱ JOIN THE FIND A CPA DIRECTORY

• Help people find your firm or business • Add your areas of expertise • Publicize your firm ❱ USE YOUR CPE TRACKER

• Record development and expertise • See progress and accomplishments • Stay covered in case of an audit

after year. Our staff is completely committed to this goal and do an exceptional job of making members feel heard, seen and assisted. Data analytics have become an increasingly important part of doing business and we are no exception. We use the information in our database to constantly search out ways to serve you better. Whether it’s targeting marketing of education products, identifying needs within our membership or building networks, there is tremendous value in examining data. Along with maintaining our database, the website side of our department has aided in giving birth to a brand new website during 2018. Thank you for your patience as we worked out the bugs in our new system in order to offer you a simple, useful experience on the www.ascpa. org site. Don’t forget that YOU are our biggest advocate in having new members join and remain. Is there someone at your firm or organization who is eligible but not a member? Let me know and I’ll initiate contact. With members in public accounting (42%), industry (30%), associate members (4%), education and government (6%), out of state (5%), students (6%) and retired (7%), we offer tremendous professional educational opportunities, scholarships, discounts on CPA exam prep and channels for personal growth through leadership development. We stand ready to assist you at any time; don’t hesitate to get in touch, sjackson@ascpa.org, 334.386.5754

❱ VOLUNTEER FOR COMMITTEES & TASK FORCES

• Sustain and advance your profession • Educate students about CPA careers • Learn from other members ❱ CONTRIBUTE TO ASCPA CONNECT COMMUNITIES

• Pose questions to and reply to posts from other members • Join interest -based discussion forums • Connect with peers locally and find colleagues with similar or diverse interests ❱ ACCESS THE MEMBER DIRECTORY

• Check our database of members • Connect with thousands of CPAs and financial professionals

Visit www.ascpa.org to find out how to make the most of your membership.

ASCPA Connections

Vice President of Membership and Website Administration Jacksonville State University _______________________________________________________ Manages all aspects of membership department including updating of database, development of analytics and other research tools. Came to the ASCPA from Altec, Birmingham-based manufacturer. Currently enrolled in Auburn’s Accounting Online Program to complete her accounting degree. 12 years at the ASCPA

Main Office

One Commerce Street, Suite 200 Montgomery, AL 36104 334.223.5800

STAFF PROFILE

Shanna Jackson

Montgomery East Banking Center 8117 Vaughn Road, Unit 20 Montgomery, AL 36116 334.223.5600

AT L A N TA • B I R M I N G H A M • C H A R L E S T O N • D O T H A N • H U N T S V I L L E M O B I L E • M O N T G O M E RY • N A S H V I L L E • P E N S AC O L A • T A M PA BAY www.servisfirstbank.com

Member FDIC | Equal Housing Lender

January/February

TELLING THE FIRM STORY

Smith Dukes & Buckalew, L.L.P. SMITH DUKES & BUCKALEW, L.L.P (Smith Dukes) traces its roots to the early 1900â&#x20AC;&#x2122;s accounting firm of Rosson and Smith. When Alabama passed its first Certified Public Accountancy (CPA) law in 1919, George T. Rosson was awarded Alabama certificate number one and Walter K. Smith was awarded Alabama certificate number three. Because of failing health, George Rosson subsequently sold his interest in the firm to Walter Smith in 1929. On October 31, 1933, Walter Smith sold the firm to his employees, Gilbert F. Dukes and Vardaman M. Buckalew, with Mr. Dukes & Mr. Buckalew, retaining the use of the Smith name and Mr. Smith and his brother Fred retaining the right to rejoin the firm for a period of time at specified prices. Since 1933, the firm has operated as Smith Dukes & Buckalew, shortening the trade name to Smith Dukes as part of a 2010 rebranding project. Additional partners have been added over the years and the current group of equity partners represent a transition through three generations of local, independent firm ownership serving clients primarily on the central Gulf Coast but reaching clients around the world. 34

ASCPA Connections

We take great pride in service to our clients and remain committed to staying abreast of current developments in business, innovation and technology while remaining true to the core competencies of our profession. Our team of 30 CPAs, 17 non-certified degreed accountants, 4 IT specialists, 3 placement professionals, 5 payroll specialists and 8 support personnel remains committed to lifelong learning to seek to understand the ever increasing complexities of todayâ&#x20AC;&#x2122;s businesses, tax law and regulations and ever evolving technical standards of accounting, auditing and business. We professionally affiliated with the AICPA, ASCPA, and the BDO Alliance. Smith Dukes continues to be blessed with some of the finest clients in the world and we are committed to being their most trusted advisor. Additionally, we are active participants in our community, with many of our partners and professional staff involved in community projects. Also, we are dedicated to guiding and molding our profession by being involved in the activities of the ASCPA for now 100 years including having 8 members who have served as chairman or president.

We help your business stand

2501 East 5th Street, Montgomery, AL 334.832.4975 walker360.com January/February

Lifetime Member

Gilbert Forbes “Tup” Dukes, Jr. of Smith Dukes

Walking into the lobby of Smith Dukes, filled with contemporary art, does not reveal the long history of this firm, the first CPA firm in Alabama. Founding partner George Rosson was awarded Alabama CPA certificate number one as the profession organized in 1919. A conversation with Gilbert Forbes “Tup” Dukes, covers almost 60 years of history of both the firm and the ASCPA. Dukes is a man with a sincere manner, a Southern gentleman, still involved in the day-to-day work of the firm and up-todate on the current state of the accounting profession. He had just attended the 75th Federal Tax Clinic in Tuscaloosa and shared a handout from the conference. It highlighted these facts: the world just finished a war, automobiles were becoming more plentiful, there were no commercial airplanes, working conditions were abysmal, Babe Ruth was a pitcher for Boston, and women did not have the right to vote. He felt this overview was important, especially the graph showing the accelerating growth of knowledge that has propelled the profession he loves. First of all, Tup Dukes is his father’s son. And not just because he’s named for him. “My dad was smart. He became a CPA by correspondence course through LaSalle University and worked hard his entire life. He held Alabama certificate number 66. At one point, his office was in the old First National Bank building downtown (torn down in the 1960s) and I guess I absorbed accounting by osmosis. I know I went down there with him a lot when he was working on weekends and remember taking a running start and sliding on those smooth tile floors”, he shared. “I probably drove him crazy.”

ASCPA Connections

A native Mobilian, Dukes went to college at Washington and Lee University in Lexington, Virginia and completed his master’s degree at the University of Alabama. But before college he worked. He worked summers during high school at a sand and gravel company, eventually moving into the office and tackling accounting tasks. “I was good at numbers, so accounting was simple for me, made sense to me and I was lucky enough to have had a lot of exposure to accounting processes from an early age.” As he finished up at UA, he applied for a finance program with the U.S. Army. He entered the program with 30 others and spent his entire three-year hitch at Fort Stewart, Georgia, outside Savannah. “While it was a wonderful period in my life, full of great lessons, we were not in the lap of luxury in historic Savannah. We were outside the city in the swamps!” Dukes returned from the Army in 1960 and joined Smith Dukes & Buckalew. The firm numbered 12-14 professionals at that time. (He demonstrated his keen memory by “walking” down the halls and recalling who was in what office 58 years ago.) He then had to wait two years before taking the CPA exam. “First you had to acquire experience, then took the exam and were certified. Now, of course, it’s just the opposite. That on-the-job work contributed to doing well on the exam, but the work itself was simpler than it is now. Yes, we’re still completing tax forms and auditing companies, but there were not nearly as many regulations, reports to

MEMBER PROFILE

be filed by companies and so forth. In college we did what were called ‘practice sets’ in our auditing class. You could actually take one of them to an audit, follow the listed steps and get the job properly completed. You ended up learning everything about the company you were auditing. Any of our CPAs could have gone to their clients and actually run the company, based on the deep knowledge they had gained.” Dukes and partner Lamar Reeves shared a keepsake on the wall of their large conference room, a framed copy often or so letterheads ofthe firm, starting in 1919. The Smith, Dukes & Buckalew name stayed the same from 1933 until a recent re-branding. Both gentlemen described the ebb and flow of partners/owners of the firm over the years and mentioned that it had served as an incubator for at least six other CPA firms. “There were not very many CPA firms in Mobile and as the city grew, as businesses grew, there was definitely a need for more firms. Some of our CPAs branched out and formed their own organizations. Just last

year we merged with one of them, Wood, Singleton, Hicks and Haisten, and we’re glad to have them back. We know that we are an anomaly, having survived for 100 years, largely intact. It’s a source of great pride for us”, said Dukes. While Smith Dukes has developed a solid small business resource branch, an IT division and a staffing company, they adhere closely to the core business model of tax, audit and consulting. Dukes spoke very movingly about working with clients over the course of generations. He had worked with one family for over 50 years and shared that fact at a recent client meeting, amazing the family. It is this continuity which is a hallmark of Smith Dukes. Congratulations to the firm on their 100-year celebration. They have been enormously active in the Alabama Society, numbering eight ASCPA chairs, starting with George Rosson in 1920. Many thanks to Gilbert Forbes “Tup” Dukes for sharing his time and memories.

Smith Dukes - NEW Half Page.pdf 1 12/20/2018 2:34:43 PM

celebrating a century of service as the first CPA firm in Alabama.

CMY

Shoulder-to-shoulder with the Alabama Society of CPAs for the next 100 years. 1919-2019

3800 Airport Boulevard #101, Mobile, AL 36608 251.343.1200 | www.smithdukes.com

January/February

Many things have changed over the years, but one thing remains the same—

OUR COMMITMENT TO HELPING OUR CLIENTS THRIVE. Congratulations ASCPA on 100 years of service to Warren Averett and all Alabama accountants.

warrenaverett.com

this is the year to put your story out there If you haven’t heard yet, it’s our Centennial Year and we want to share the best of our society with our members and closest acquaintances! Bring your story to 6,500 Alabama certified public accountants by advertising in one of three ways: printed advertising in our bimonthly CONNECTIONS magazine, through classified advertising in the magazine or our weekly digital newsletter, #ALcpasuccess, OR step up to sponsor one or more of our major events to gain significant face time with members. Reach out to Corena Cottles at ccottles@ascpa.org for your copy of the 2019 Media Kit to find out how to get started.

AdvertisewithUs.indd 1

ASCPA Connections

12/14/2018 9:55:28 AM

Communications Director Auburn University at Montgomery _______________________________________________________ Creates and manages weekly digital newsletter, creates external advertising and other graphics projects, updates website content and is editor of CONNECTIONS magazine. Worked in real estate management and retail before joining the Society staff. 5 years at the ASCPA

STAFF PROFILE

Corena U. Cottles

RUSSELL THOMPSON BUTLER & HOUSTON, LLP

PEOPLE AND PARTNERSHIPS THAT COUNT CONGRATULATIONS ASCPA Through the years, we’ve come to learn it’s the people and partnerships that truly count. As we celebrate with the Alabama Society of Certified Public Accountants on 100 years, we are as proud today as we have ever been to be members of this esteemed organization. We look back over a century of service and success and look forward to a bright future for our industry and friends around the state.

Together, we celebrate. Together, we serve. Together, we succeed.

SUPERIOR THINKING. UNCOMPROMISED INTEGRITY.

RTBH.COM

January/February

ASCPA Connections

A View from Outside and Alongside RON LEVITT, SIROTE & PERMUTT

One Hundred Years. That’s a long time. One Hundred Years of supporting Alabama CPAs who provide essential planning, reporting, consulting and general accounting services to Alabama businesses and families and who serve as their “right hand”. One Hundred Years of being the key “partner” that tax lawyers rely on to help us serve our common clients. It is from the lens of that third point of view that I applaud the Alabama Society of CPAs, as it celebrates One Hundred Years of enhancing Alabama’s accounting profession through advocacy, education and member engagement.

Society of CPAs for its One Hundred Years of Excellence.

To tell you the truth, growing up, I had planned on becoming a CPA, mostly because of how important my father’s CPAs were to him. Clearly my father relied on these key financial advisors for advice on how to run his dental practice, how to handle his investments and even to help him make decisions that were not all that business or tax oriented. That’s what a trusted advisor does. My father highly valued the role CPAs played in his life (which had a big impact on our family) and I thought, given that being a dentist was not at all appealing to me, becoming a CPA and working in that trusted advisor role was very attractive.

In addition to the great client work and relationships that have been developed, it is impressive to see talented accountants, in their work for and on behalf of the Society, give their time and money to help others in their profession (as well as those of us who are part of the Alabama Tax Bar) better understand how tax law works. This is found most notably in connection with the Federal Tax Clinic held each November in Tuscaloosa as well as in the robust continuing education programing the Society sponsors for its members. Continuing education, a key part of the Society’s mission, is where I had the pleasure of spending many hours working with (or for) Joe Robertson (of blessed memory), and his successor Bryan Hassler, and still today with Jeannine Birmingham and her staff. Teaching and presenting tax-related continuing education courses for the Society has always been a special part of my practice. Moreover, we at Sirote & Permutt, PC highly value our role in the Society’s continuing education program.

So even though I found out as a student at the University of Alabama, when confronted with Intermediate Accounting (oy, that was not a fun course), that accounting was just not my bag, I had a feeling that working with CPAs on a regular basis would be in my future. That turned out to be true as I continued my education and became a tax lawyer. As other tax lawyers in Alabama can attest, the collaborative relationship between tax lawyers and CPAs is of great value to tax lawyers and of even more value to our common clients. And while we highly value the individual CPAs with whom we regularly work, we know how important the Alabama Society of CPAs has been, and will continue to be, to Alabama’s accounting profession, to the Alabama Tax Bar and, more importantly, to our clients. I know that I can speak for my law partners at Sirote & Permutt, PC, and on behalf of my tax lawyer colleagues throughout the State of Alabama, in offering a hearty “Mazel Tov” (look it up) and salute to the Alabama

In looking over the names of the past presidents of the Alabama Society, I can clearly recall many of the CPAs with whom I had the pleasure of working and who helped me better understand what it means to truly serve clients and to do one’s best, as a professional advisor, to help clients reach their goals and objectives. It is probably the close personal relationship that many CPAs enjoy with their clients that is most valued by such clients and should be emulated by others.

I’ll tell you a secret: we find teaching of tax related courses to the Alabama Society gratifying and rewarding, not only because it is fun, but because it gives us the opportunity to learn from bright CPA attendees who often ask questions about issues that have not occurred to us and which help us better understand issues that our clients often face. We look forward to continuing to teach and learn with the Society as it enters its next century. One Hundred Years, ten decades, or 36,500 days. However you measure it, that’s a long time. A long time of excellence.

January/February

B A L? T H IN K

G LO

Certified Public Accountants and Business Advisors B I R M I N G H A M

S E L M A

T U S C A L O O S A

J M F . C O M

100 and counting! Congrats to ASCPA on a century of success. Best wishes from your friends in the SEC,

ASCPA Connections

Centennial Consultant Florida State University _______________________________________________________ Manage and promote Centennial activities and events in partnership with other staff. Has worked in multiple sales and recruiting positions. Owner/designer/manufacturer of Heidi Kidwear, custom childrenâ&#x20AC;&#x2122;s clothing line, before joining the ASCPA as Communications Director. 16 years at the ASCPA

STAFF PROFILE

Diane L. Christy

Dent Moses - Half Page.pdf 1 1/2/2019 1:45:12 PM

CMY

January/February

Charges for

2018

2017

Services, Dues,

Net Revenues Over

Expenditures

and Contributions

(Under) Expenditures

$787,436

$1,013,582

$226,146

$63,549

Membership

107,951

1,063,798

955,847

894,102

Quality Review

237,954

129,981

(107,973)

18,589

Public Relations

221,054

(221,054)

(214,789)

Scholarships and awards

112,826

65,239

(47,587)

(65,880)

55,417

30,801

(24,616)

(15,098)

340,781

297,299

(43,482)

(27,651)

17,826

(17,826)

(17,827)

2,500

(2,500)

(500)

$716,955

$634,495

$(582,102)

$(616,373)

194,986

233,279

31,492

52,770

$361,331

$304,171

Programs: Professional Development Seminars

Newsletter Conferences & committees Chapter activities Political Contributions Total Program Services

$1,883,745

$2,600,700

Management and general expenses Net realized/unrealized gain on investments Other revenues Net Revenues Over Expenditures

Conferences & Meetings 11%

Contributions 2%

Membership 38%

CPE Seminars 36% Other Program Charges 1%

Quality Review 5%

ASCPA Connections

Newsletter 1% Investment Income 6%

2018

2017

Assets Cash equivalents and certificates of deposit

$1,297,243

$961,994

Pledge receivables (net)

10,187

Other current assets

54,358

55,573

Property and equipment, net

1,707,572

1,672,898

Investments in stocks and bonds, fair value

3,578,508

3,497,782

$6,637,681

$6,198,434

$360,448

$288,097

Other current liabilities

103,279

94,542

Deferred compensation - Long-term portion

273,249

291,550

Total Assets Liabilities Deferred revenues

Debt - Long-term portion

15,129

Total Liabilities Net Assets

Conferences & Meetings 11%

Membership 4%

$752,105

$674,189

$5,885,576

$5,524,245

Other Program Costs 8% Newsletter 2% Public Relations 9%

CPE Seminars 32%

Administration 24%

Quality Review 10%

January/February

TURNING VISION INTO VALUE 100 YEARS & COUNTING

100

CELEBRATING

YEARS

1918 - 2018

Attestation

46 44

Taxation Consulting IT Bookkeeping 74 Commerce Street | Montgomery AL 36104 116 Company Street | Wetumpka AL 36092

ASCPA Connections

OneSource

Wear Howell - Half Page.pdf 1 12/14/2018 10:23:02 AM

Congratulations to the ASCPA for 100 years of success

from proud sponsor

CMY

1323 Stratford Road SE Decatur, AL 35601 256.353.8902 | www.whsq.com

Â®

THANK YOU ASCPA FOR 100 YEARS OF SERVICE. LIVE UNITED United Way fights for the health, education and financial stability of every person in every community.

www.uwca.org

January/February

The History of Peer Review through the ASCPA CHUCK JORDAN, CPA

Peer Review has evolved since it’s inception more than 40 years ago. One thing that has not changed is that Peer Review is dedicated to contributing to enhanced quality of accounting, auditing and attestation services performed for the public by those enrolled in the program. In the beginning Peer Review was optional, yet firms joined because they realized the importance of enhancing the quality of their A&A practice and the importance to the profession if the public trust was to be earned and maintained. The Peer Review program is and was from the beginning, focused upon evaluating quality performance, education and improvement. Internal inspection was used in the 1960s by larger firms to monitor their A&A practices for consistency between their offices. In the 1970s the larger firms began firm-on-firm reviews partly as a result of SEC disciplinary actions. There were no standards or uniformity to the process until 1977 when the AICPA established peer review through two voluntary membership sections. Within Peer review, firms could join the SEC Practice Section (SECPS) or the Private Companies Practice Section (PCPS). Upon joining one of those sections firms agreed to several membership requirements centered on quality including having an external Peer Review performed every three years. In 1977 the AICPA membership voted to make Peer Review mandatory for membership. Also updated were educational requirements and a revised and updated code of professional conduct. At that time peer review was not a requirement for licensure in Alabama. On June 24, 1987 the Alabama State Board of Public Accountancy (The Board) adopted rules requiring “Practice Review”. Under Practice Review, firms were required to submit one each Audit, Review and Compilation report with their annual registration. The Board formed a practice review committee to review these reports each year. On November 3, 1983 the Board replaced the annual “Practice Review” and adopted the AICPA Peer Review Program 48

ASCPA Connections

requiring all Alabama firms performing A&A to have a peer review every 3 years. In 1989 the ASCPA began administration of the AICPA Peer Review Program in Alabama. ASCPA Peer Review was initially staffed with one full time administrator and a committee of practicing member volunteers that donated their time and expertise. Alabama maintained this model until two years ago. The ASCPA has always emphasized supporting and assisting its member firms through the peer review process while following the requirements of the program. In recent years the AICPA initiated an audit quality initiative that includes improvement to the peer review process. Some changes are to hold Peer Review Administrators accountable for adherence to the standards through measurable benchmarks. The ASCPA leadership and Board decided to dedicate resources to meeting these new standards and to maintaining a high level of support to member firms throughout their peer review process. The administration staff has grown from one to a current team of three with plans to add to support staff by one more in early 2019. The Committee consists of fourteen volunteer members today and we have 3 part-time technical reviewers. While Alabama had the vision to commit resources to supporting peer review, many other states have decided not to continue peer review administration. The Arkansas Society of CPAs recently voted to move the administration of their peer review program to Alabama beginning in the 2nd quarter of 2019. We are pleased and excited to welcome Arkansas firms to the Alabama Peer Review Program soon. We also expect their committee members will join with the Alabama Peer Review Committee to form a stronger committee. Peer Review has come a long way since it’s inception and your ASCPA is prepared to serve you with the support you need to navigate the process.

Peer Review Administrator Troy University ________________________________________________ Manages all aspects of the Peer Review program; works closely with firms, assigns technical reviews, organizes and leads monthly and quarterly meetings of the Peer Review Committee, enlists new CPAs to serve on the committee. Special assistant to the mayor of the city of Troy prior to the ASCPA. 4 years at the ASCPA

Charles A. Jordan III (center) Peer Review staff CPA Auburn University ______________________________________________________ Provides professional guidance to Peer Review program in tandem with Peer Review staff. Retired from 40 years in public accounting with large regional firm.

Raegen Nuffer (left) Peer Review Administrative Assistant ________________________________________________ Works closely with Ashley Sellers and Chuck Jordan in the execution of Peer Review responsibilities.

STAFF PROFILE

Ashley S. Sellers (right)

Previously employed at an area bank. 2 years at the ASCPA

40 years as a member of the ASCPA, one year on staff.

Welcome to the team!

+ The Alabama Society of CPAs’ Leadership and Peer Review Team would like to welcome the Arkansas Society of CPAs to our Peer Review Program! We are looking forward to continued success as we guide ﬁrms from our two states through the process of Enhancing Audit Quality for the profession and the public beneﬁt.

WelcomeArkansas.indd 1

12/14/2018 9:55:06 AM

January/February

TELLING THE FIRM STORY

Aldridge Borden & Company

2018 represents the 100th anniversary of the oldest accounting firm in Montgomery. Aldridge Borden & Company is a well-regarded business in the River Region & is known for its involvement in the community.

Rossen & Aldridge were awarded Alabama CPA Certificates numbered 1 & 2, respectively, & each was a signer of their own certificate. Along with Aldridge & Rossen, there were 26 others who passed the first Alabama CPA Exam in July 1919.

Mayer W. Aldridge, considered the founder of our firm, was the first chairman of the Alabama State Board of Public Accountancy. He along with George T. Rosson, a CPA from Mobile, & J.S. Edson, a Montgomery Attorney, were appointed by the Governor of Alabama to serve on the first Alabama State Board of Public Accountancy.

According to “The Accountants’ Directory & Who’s Who” of 1920, Aldridge served as a corporate accountant & office manager until 1913, & from 1913 until 1919, he served as a public accountant. Aldridge, along with Percy V. White, were members of the firm Wright, Aldridge & Co., which was located on Dexter Avenue in the First National Bank Building.

ASCPA Connections

Wright was from Cambridge, MD, & like Aldridge, received his Alabama CPA Certificate in July 1919. Prior to receiving his certificate, Wright also practiced public accounting, & was the Senior Partner of Wright, Aldridge & Co. It is uncertain when Wright, Aldridge & Co was formed or when Wright was no longer associated with the firm. However, according to the Montgomery Area Chamber of Commerce, the firm, Aldridge, Borden & Co or its predecessor, perhaps Wright, Aldridge & Co, has been a member of the Chamber since February 1, 1918. After WWII, Aldridge took on two partners, John Borden & Charles Jones & the firm was renamed Aldridge, Borden, Jones & Co. In 1957 Charles Jones was killed in an automobile accident, & the firm’s name was changed to its current nomenclature, Aldridge, Borden & Company. Aldridge Borden & Company’s services include attestation, taxation, bookkeeping, as well as business consulting services. Aldridge, Borden & Company is an independently owned & operated member firm of CPAmerica International, one of the largest

associations of CPA firms in the United States. Through their affiliation, they have instant access to the expertise & resources of more than 2.500 professionals across America. For any good business to flourish in today’s world, it must invest significantly in its community. Aldridge Borden & Company has made this investment a solid priority. Of their employees, 14 serve on 27 various boards within the community. The firm is heavily involved in the River Region United Way along with participating in many other community activities including Alabama Head Injury Foundation – Brain Freeze Challenge, Brantwood Children’s Home Love Run & Tukabatchee Area Boy Scouts Golf Tournament. Aldridge Borden & Company feels that although it has learned & achieved much over the past 100 years, it remains resolute in becoming continuously better at providing services to its clients. It is committed to the future. As the owners, management, & employees celebrate this 100th anniversary, they wish to take this opportunity to thank all their wonderful clients, many of whom they are fortunate to call friends. They look forward to serving the River Region & beyond for years to come.

January/February

We extend our deepest gratitude to our

Centennial Sponsors! These organizations are represented throughout this commemorative issue. 50% of the contributions from the Premiere, Centennial Champion, Chairman’s Circle, and Board Patron Sponsors are a direct donation to the ASCPA Educational Foundation.

PREMIERE SPONSOR

Aon – AICPA Member Insurance Programs

CENTENNIAL CHAMPION Jim D. Martin

CHAIRMAN’S CIRCLE

American Institute of Certified Public Accountants Anglin Reichmann, Snellgrove & Armstrong, PC. Banks, Finley, & White, Co. Barfield, Murphy, Shank & Smith, LLC. Carr, Riggs, & Ingram, LLC. Dent Moses, LLP. Hartmann, Blackmon & Kilgore Kassouf & Co.

ASCPA Connections

JamisonMoneyFarmer, PC. Machen McChesney CPAs Russell, Thompson, Butler & Houston, LLC. ServisFirst Bank Sirote Smith, Dukes, & Buckalew, LLP. United Way of Central Alabama Warren Averett, LLP.

BOARD PATRON Abroms & Associates, P.C. Bern, Butler, Capilouto & Massey, PC. Bradley Law Firm Culotta, Scroggins, Hendrix, & Gillespie, PC. Jackson Thornton & Co., PC. McDaniel & Associates, P.C.

Merrill Lynch Pearce, Bevill, Leesburg, & Moore, P.C. Richard Harris Ingram & Bozeman Wear, Howell, Strickland, Quinn & Law , CPAs Wilkins Miller

CENTENNIAL MAGAZINE ADVERTISERS ACPEN - Business Professionals Network Aldridge, Borden & Company, P.C. Arkansas Society of CPAs Auburn University Auburn University at Montgomery Business Learning Institute CPA Crossings Cygnal K2 Enterprises Society of Louisiana CPAs and Florida Institute of CPAs Surgentcpe Tennessee Society of CPAs Troy University University of Alabama Walker 360 Werner-Rocca Seminars

January/February

ASCPA Connections

Alabama S0ciety 0f CPAs Invites you to its

100th Anniversary Gala Thursday, June 13, 2019 5:30-8:00 PM

Alabama Department 0f Archives and Hist0ry

624 Washington Avenue Montgomery, Alabama $100 per pers0n â&#x20AC;˘ $150 per c0uple

1920s C0cktail Attire Proceeds benefit the Alabama Societyâ&#x20AC;&#x2122;s Educational Foundation

An anniversary this big only comes around every century. Congratulations to the Alabama Society of CPAs on your 100th anniversary, and for enhancing the accounting profession through advocacy, education and member engagement. Hereâ&#x20AC;&#x2122;s to another 100 years of working together to advance the profession. aicpa.org

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ÂŠ 2018 Association of International Certified Professional Accountants. All rights reserved. AICPA and American Institute of CPAs are trademarks of the American Institute of Certified Public Accountants and are registered in the United States, the European Union and other countries. The Globe Design is a trademark owned by the Association of International Certified Professional Accountants and licensed to the AICPA. 1811-0739

We don’t sit at the “children’s table” anymore! AMANDA FREEMAN, CPA The Young CPA Cabinet connects and advances young leaders through contributions to their profession, workplaces and communities, championing the next generation of influential certified public accountants. The first Young CPA Board started in November 2002, under the leadership of ASCPA Council President Thomas A. Ratcliffe and current Smith Dukes Managing Partner Tim Smith, and has been making waves ever since. Early boards were structured along the same lines as the “big board”, one representative per chapter across the state. Oh my, how things have changed! Now, members who are interested in serving on the Young CPA Cabinet submit applications, along with their resumes, in early spring. The applications are reviewed and, while some consideration is still given to geographical location, more important is their involvement in the community, their diversity and their willingness to roll up their sleeves and truly contribute to the goals of the cabinet.

The Young CPA Cabinet meets four times a year to add their energy and support to the strategic initiatives of the ASCPA Board of Directors. They are strong representatives for their demographic and provide unique feedback that is essential in leading our organization into the next generation.

How do Young CPAs make an impact? • These leaders are usually the first group of volunteers to make contact with students at all levels about our profession and to share their stories. • Since 2002, the Young CPA Charity Golf Tournament has raised more than $485,000 for the ASCPA Educational Foundation and The Exceptional Foundation, making it the largest single donor to the Foundation during those years. • The Young CPAs have led the Classroom Blitz for the past 10 years, speaking with more than 30,000 high school students about the accounting profession and how to make smart financial decisions.

• Members of the Cabinet attend meetings of the ASCPA Board of Directors in August and November, providing their feedback and perspective, offering insight and advice. • They support The Exceptional Foundation by attending various programs in the name of the ASCPA. • Young CPAs serve on ASCPA Chapter Advisory Councils, making sure that members at local levels learn about the larger goals and aims of the Society and also to add a youthful, fun element to chapter activities. As you read the roster of the Young CPA Cabinet’s members, think about encouraging a young professional you know to apply for the Young CPA Cabinet in 2019. It’s service that leads to excellent leadership skills, to opportunities to network with senior CPAs at ASCPA events and to grow into other roles at the Society and AICPA. Please direct any of your questions to me, afreeman@ascpa.org, 334.386.5755.

Chief Financial Officer and Vice President of Operations Troy University ________________________________________________________________ Responsible for all financial aspects of the Society’s operation, including some human resource functions. Liaison to the Young CPA Cabinet. Worked in public accounting with a major regional firm before joining the ASCPA. 9 years at the ASCPA

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STAFF PROFILE

Amanda S. Freeman, CPA

YOUNG CPA CABINET The ASCPA’s Young CPA Cabinet is a diverse group of leaders who bring a variety of talents and viewpoints to our leadership team. When each member joined the cabinet, we asked them what they would like to accomplish as a Young CPA Cabinet member and what they are passionate about.

Scott Gardner · Chair Audit Senior Deloitte & Touche, LLP.

Graduate of Auburn University “I am very excited to learn from my fellow young accountants throughout the state.”

Marena Messina · Vice Chair Staff Accountant Carr, Riggs, & Ingram and the University of Alabama Birmingham

Graduate of the University of Alabama Birmingham and the University of Alabama “I want to enhance the profession by connecting with other professionals as we assist each other through obtaining more knowledge, and by supporting one another as we advance our careers. I also want to give back and advance the profession as a whole.”

Kate Thigpen · Secretary Manager Giles Underwood & Wilson, LLC

Graduate of the University of Alabama “I’m excited to bring new perspective and connect with more members. I’d like to make sure we all understand the ‘why’ behind our initiatives to encourage more participation from CPA’s across the state. I think it would be great for us to take on another project and expand the impact of our footprint as the Young CPA’s in Alabama.”

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Katie Grissom · Golf Chair

Tiffany Holifield

Supervisor JamisonMoneyFarmer, PC

Graduate of the University of Alabama “I look forward to helping the ASCPA Board appeal to Young CPAs within the state who would benefit from being engaged with the state society, as well as making the golf tournament the best it can be as the upcoming Golf Tournament Chair.”

Perry Hilyer · Classroom Blitz

Internal Auditor Poarch Band of Creek Indians

Graduate the University of Alabama and the University of Alabama Birmingham “While working at a small firm has given me some great advantages, I would love to connect to more young professionals with whom we can discuss the changes going on in our profession.”

Latei Iyegha Audit Assistant Deloitte & Touche, LLP.

Chair

Accounting & Auditing Deloitte & Touche, LLP.

Graduate of the University of Montevallo “I want to contribute knowledge and ideas, and use resources available through Deloitte to allow the Cabinet to gain new perspectives.”

Graduate of the University of Alabama Birmingham “I would like to give back to the community and help others (particularly students) who are interested in the CPA profession.”

Tyler Lahti Accounting Senior Iberiabank

Jessica Cassiday Solutions Manager Anglin Reichmann Armstrong, PC

Graduate of Purdue University and the University of Illinois “I am looking forward to Classroom Blitz. I want to teach young students how their financial decisions impact their entire lives and to show them all the opportunities a career as a CPA can offer. I think it’s important that students understand that being a CPA doesn’t necessarily mean you have to do taxes. If you enjoy tax, it’s a great field, but there are so many other opportunities for CPAs.”

selecting a career.”

Graduate of Auburn University “I’d like to bring more attention to the profession and increase interest that accounting gets from kids when they’re

Julie Mercado PhD Student The University of Alabama

Graduate of Oral Roberts University and Northeastern State University “I love the impact we’re able to make across the state through the YCPA Golf Tournament and the Classroom Blitz. In addition to contributing to those efforts, I hope that over the next year we continue making progress helping CPAs of all ages connect with each other and adapt to the changes facing our profession.”

Alison Montanaro

Garrick Sams

Tax Manager Dixon Hughes & Goodman, LLP.

Graduate of Auburn University “I want to bring more awareness to those around me about the ASCPA does for our community.”

Dan Post Vice President of Finance Guardian Credit Union

Bri Wright Tax Manager Hall, Albright, Garrison & Barnes

Graduate of the University of Alabama and the University of Alabama Huntsville “I have a passion for helping people. One of our firm’s core values is peace. I enjoy working through challenges and simplifying topics that bring inner peace for our clients.”

Manager Dent Moses, LLP.

Graduate of Samford University “I want to help improve communications with the Young CPAs of Alabama and try to get them more involved in the CPA community.”

Graduate of the University of Alabama Birmingham and Auburn University at

Montgomery “I want to learn from others, share my experiences and develop relationships with other CPAs across the state of Alabama. I also want to be a part of the effort to emphasize the value and importance of the accounting profession.”

Becca H., Alumna Master of Accountancy Program (MAcc)

CONGRATU L ATIONS

ASCPA CE N T E N N I A L CE L E B R AT I O N F RO M T ROY U N I V E R S I T Y S CH O O L O F ACCO U N TA N CY

January/February

You are the reason we have made it one hundred years! Thank you for being 1 of 6,000 members strong. Don’t forget to renew your membership in April 2019 to stay connected to the ASCPA. Until then, visit ascpa.org to see what’s new and where we’re heading in 2019. 60

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12/21/2018 11:46:09 AM

Merrill Lynch is proud to salute the Alabama Society of CPAs. Ingram, Ray and Associates Jacob J. Ray, CFP® Vice President Wealth Management Advisor

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ROUND YOUR TEAM UP FOR THE

Young CPA Charity

Golf Tournament JUNE 12, 2019 ROBERT TRENT JONES CAPITOL HILL PRATTVILLE, ALABAMA

WWW.ASCPA.ORG/YCPAGOLF

January/February

Lifetime Member

Vivian Jo Van Chateau

Partner Emeritus of Crow Shields Bailey, P.C.

I was born in Mississippi during the Great Depression and am one of twelve children.

However, I did not take the exam immediately. The exam was costly for me since I had to spend three days in a Montgomery hotel, along with paying the exam fees. Looking back, it would have been much easier if I’d done it as soon as I was allowed following completion of my degree.

During World War II, the family moved to my grandfather’s farm near Selma, where my father worked with the U.S. Department of Agriculture in coordinating the farmer’s directives to raise crops necessary to assist the war But by far the biggest efforts. My earliest school influence on my life came years were spent in a twofrom my parents. Beginning room elementary school with in early childhood, my wellonly two teachers responsible educated, professional for grades one through six. parents promoted and Dr. Dawn Blackwell, Dr. Steven Blackwell, Midshipman The support of my parents supported education. They 4/C Stella Blackwell and Midshipman 1/C Bailey Blackwell more than compensated dedicated their lives to with Vivian Jo Chateau in the US Naval Academy Chapel for the gaps in schooling. helping each of their children following Stella Blackwell's performance in Messiah Both parents had completed develop high standards college. My mother had for living. Those standards taught school prior to marriage and was a very dedicated educator included love and respect for others, integrity, strong character, the who was a mentor for many young people, including her children, all value of education and being a trusted leader. Later on, I was given who became highly educated and skilled professionals. guidance and confidence by the two most senior partners in the public accounting firm, Wiik, Reimer & Sweet, CPAs, where I was employed After I completed the fifth grade my family moved to Citronelle, a after getting my degree. Both were great mentors. I became a partner small quiet town near Mobile. I graduated from high school, attended in this firm which was later renamed Dudley, Chateau & Cox, P.C. In the University of Southern Mississippi for one year and got married. 2009 as part of retirement planning, we merged with Crow Shields Seventeen years later, as a single parent with children ages 11, 8 and 2, Bailey, P.C. which had several offices in the Gulf Coast area. I returned to college and completed a B.A. degree with a concentration in accounting at the University of South Alabama. As a senior I was the The nature of my work with a small, local accounting firm was diverse. recipient of the Alabama Society of CPAs’ Accounting Achievement However, I think that educating clients, both business owners and their Award. As an alumna, I later served on South Alabama’s National personnel, to understand and monitor their financial position was most Alumni Association Board of Directors. rewarding. While working in industry I was trained and specialized in cost-analysis and profitability. This training and my interaction with After my first year in college, I entered the work force in the bookkeeping management helped me clearly identify my clients’ needs to succeed. department of a bank. The next year, I worked as an accounting clerk with an international chemical manufacturing company. After I would have never predicted the opportunities for service that resulted moving to Fort Worth, Texas, and as a result of many years of learning from my relationships with the clients and colleagues. The leadership the different functions necessary for financial reporting in industry, I training I received through the Alabama Society of CPAs, while serving was hired as an assistant controller of another large manufacturing on its council and as an officer, was excellent, and a great value to me firm. While gaining this experience, I worked with individuals who professionally. were degreed accountants and gained great respect for both their I am grateful for the experience and have benefited from serving my work ethic and personal values. My experience and the professional community as well as my profession. I feel that my experience as a accountants I worked with were most influential in my decision to get CPA and a partner in my firm gave me the ability to help others who an accounting degree. served on committees with me to understand financial problems and My education experience and peers while in school were major factors applications as well as certain communication skills. in the decision to obtain my certification as a CPA. At that time, it was considered the next necessary step after earning a degree in accounting.

ASCPA Connections

MEMBER PROFILE I am a member of: Impact One Hundred Baldwin County. It is an organization composed of women (initially we had one hundred members). We provide financial grants to not-for-profit organizations that address the needs of individuals and which plant the seeds for a secure future for everyone in Baldwin County. The National Society of the Daughters of the American Revolution, an organization established for community service, preservation of history, educating children as well as honoring and supporting those who serve our nation. The Mobile Council Navy League and the Military Officers Association of America where I have served on Council. Served as Board President of the Family Counseling Center and the Consumer Credit Counseling Center. Been active in the Mobile Area Chamber of Commerce and worked with the many leaders as an investor and their Partners for Growth long-term economic and community development program since its inception. Active involvement in my church as both a deacon and elder and as chair of the personnel and finance committees. Served on the Auburn University School of Accountancy Advisory Council 1998 – 2015. In reviewing my involvement with the ASCPA, there were local, statewide and national roles. Mobile Chapter officer Member of ASCPA Council (now Board of Directors) Council president (now ASCPA Chair) Alabama Tax Legislative Committee, including a term as chair ALA/CPA/PAC Board of Trustees Alabama Federal Tax Clinic Board of Trustees AICPA Council

my choices in school, and later in my career, was my mother. As I was going through high school, my mother was working through college. She did that as a single mother to three children - no easy task. By the time I was in college, she was working as a professional in her field. The foundations of ethical behavior, hard work and self-motivation could not have been demonstrated to me any clearer than by my mother.” I am blessed with three very special children: Michelle Blackwell Dudley, mother of three, a CPA, now director of Physician’s Practice at the University of South Alabama’s University Hospital; Rebecca Blackwell Chilton (Tommy), an educator, now a stay at home matriarch and mother of three children, and Dr. Steven Blackwell (Dawn), father of two, an anesthesiologist, and commander with the U.S. Navy Reserve. We love family time. My most fun and relaxing time is spent at my home on the water at Point Clear. It is such a joy to watch the beautiful sunsets or have coffee in the mornings on the wharf watching the water fowl or the glistening white sails against the sky. Also a favorite is my love for entertaining to include preparation of meals, whether crab boils for picking on the wharf, a great tailgate spread for game day on the Plains or for more formal meals with elegant settings. To me cooking is creative and relaxing. Just to note a fun experience, I have had a favorite recipe selected by Southern Living magazine and its picture used on the cover of the November 2009 monthly issue. It has also been featured in at least five Southern Living/Oxmoor House publications to include their gorgeous Golden Anniversary Celebration Book which included both the recipe and the cover photo. What advice would I give to the generation coming up? As you begin your profession as a CPA you should be technically prepared. Very soon you will be working and interacting with clients on assignments required for the needs of the client. As the opportunity arises, know as much as you can about the client as related to his/her business and how you can serve them. That person is your most important assignment and vital to your success. Your job now is really about competent service to others. Finally, make each day better for someone. You will always remember the special smile that your service brings forth as well as having the satisfaction of a job well done!

Service at each of these levels gave me an awesome understanding of the profession’s challenges today to include the need for qualified programs run by qualified educators in our college programs in order to graduate talented students to serve the profession. Involvement also brings more awareness of the rising costs of accounting and tax services resulting from compliance with standards and regulations and the necessity of the support needed from the professional and governing bodies. Now that I am retired, I find the most difficult part of retirement is how much I miss working with my professional family, organizations and clients. Next, I miss the technical support of a fabulous administrative assistant and the whiz kids with an answer to all computer mysteries! The blessing is that I have a daughter, niece and granddaughter who have all chosen the accounting profession. Each of them has looked for encouragement and guidance from me at some time. I have been an outspoken advocate for their entering this profession. The following is a quote from my daughter, Michelle Dudley, that is very meaningful to me: “The single most influential person shaping

January/February

School of Accountancy

Congratulations

ASCPA Connections

Memberbilia MEMBER SINCE 1978

MEMBER SINCE 1977

STEVE SHELTON

Happy 100th Birthday ASCPA. I am incredibly proud to be a member of the ASCPA. After having worked with our fine staff and many of my fellow Alabama CPA’s, I am convinced that we have one of the best organizations I have ever had the privilege of being a part of. It was a sincere pleasure to serve as your president and I most enjoyed getting around the state meeting many of you face to face. My thanks to everyone who serves our organization selflessly to make it better for all of us. MEMBER SINCE 1995

CAROLYN AVERY-WHITE

My professional career in the auditing/accounting field, whether in private practice, the non-profit sector, or public enterprise, has been a journey of excitement and gratefulness. I am beholden to be one of more than 6,500 Alabama CPAs in the industry. Being raised in a rural town of Newbern in Perry County, Alabama, I understand and appreciate the value of the industry and the ASCPA. As such, I am openly willing to assist in cultivating and coaching future accounting professionals in the industry. Congratulations ASCPA on your Centennial Celebration! “But by the grace of God I am what I am, and his grace toward me was not in vain. On the contrary, I worked harder than any of them, though it was not I, but the grace of God that is with me.” 1 Corinthians 15:10 (ESV) MEMBER SINCE 2015

COLBY LAKAS

I never worked in Alabama when I was in the profession, so my only frame of reference for legendary CPAs is in the education realm. However, I can say with certainty that Dr. Wayne Alderman can be credited with so many accounting-related successes at Auburn University. He’s about to retire from AU with nearly 40 years of service to our students, which is pretty amazing!

TOMMIE CUMMINGS

When I had my first baby in 1977, the Alabama State Board of Public Accountancy had never had a CPA candidate who had passed the exam, but who was going on maternity leave before completing the experience requirement! I had to wait two months before learning whether I had to start all over again. It was determined that if I returned to work within six months, my previous experience would still count. I became a new mom and new CPA at the same time. MEMBER SINCE 1987

DEBRA PEEL

I’ve worked in the accounting profession for almost 35 years now and it would not have been possible without the assistance, support and guidance offered by Professor Ollie Powers and Marlene McCain. Ollie Powers provided a challenging, informative and, unexpectedly, entertaining accounting education experience that has served me very well for years and I think of him often even though he is no longer with us. Ms. McCain was instrumental in helping me obtain my first professional job in Birmingham during a very difficult period in my life and has been a valued friend, confidant and unofficial career adviser since then! MEMBER SINCE 1985

ANDY GREEN

I am grateful for 35 years in a profession that I never dreamed I would be a part of. To have worked my entire career for one firm and one family. Thank you Sidney White for taking a chance on a “green” young man with no polish and seeing his potential. Grateful for Bill Fleming who mentored me, was a sounding board for frustrations and most important for being a friend. Lastly, my appreciation to Ray White who had the vision to align our local firm for the future and enabled me to retire under my terms with no regret or fear of the future success for our firm.

January/February

Janet and Ned Sheffield, Lanny Crane, Emily and George Smith

TELLING THE FIRM STORY

Jackson Thornton A CENTURY OF SERVICE TO ALABAMA AND BEYOND

Jackson Thornton was founded in 1919 when Harold Crane opened an accounting office in the Bell Building in downtown Montgomery. The company’s long history reflects the growth of the communities in which the firm has chosen to establish offices and – in many cases – the growth of the privately owned businesses that it has served since the beginning. “Through our century of service, we have worked with many closely held and family-owned businesses. What began with the grandparents has now been passed down to children and grandchildren. It’s a privilege for us to be a small part of the growth and success of these companies which have become so important to the communities they serve,” said Ned F. Sheffield, President & Managing Principal. In the 1960s, the firm began to bear the name of earlier principals Douglass Jackson and James Thornton and its clients drew largely from the agriculture, lumber, manufacturing, banking, automotive and merchant sectors. Today, Jackson Thornton serves an even wider array of industries and created specific groups within the firm to specialize in areas like utilities, healthcare, construction, business valuation, not-forprofit and governmental, to name a few. Jackson Thornton has also launched a full family of companies, including Jackson Thornton Asset Management, founded in 1999, and Continuum Education + Training and Jackson Thornton Technologies, both founded in 2001. “These companies began because our clients needed these kinds of

ASCPA Connections

services, and it was gratifying to us to continue to serve as a trusted advisor in new directions,” Sheffield said. More than 200 professionals work for the firm with the corporate office in Montgomery and other Alabama offices in Dothan, Prattville, Wetumpka, and Opelika. There is also a Nashville location, bringing the total number of offices to six. Playing a Role in Downtown Montgomery Revitalization Harold Crane’s decision to locate the first office in downtown Montgomery has remained a commitment even during five additional moves. Jackson Thornton was part of the initial resurgence of the downtown area when the firm moved to lower Commerce Street in 1980 at the suggestion of James Loeb and the Landmarks Foundation. In 1997, the corporate office building was expanded to include a portion of the adjoining property at 210 Commerce Street. The founder’s grandson, E. Landon (Lanny) Crane, is a former managing principal of Jackson Thornton and a current principal with Jackson Thornton Asset Management. With his tie to the firm’s founding and his contributions as a longtime philanthropist, Crane parallels the company’s larger impact on the community in the arts, historic preservation, and philanthropy. “Community involvement and philanthropy have been and will always be very important to the firm. We invest our time, talents, and resources in our home communities,” said Sheffield.

The name Crane has long been carried on the rolls of the ASCPA and the AICPA. Mr. Harold Crane joined the Society in late 1919 and was followed by his son, William H. Crane, a Crane, Jackson and Thornton partner. On June 1, 1960, Lanny Crane (son of William and grandson of Harold) was employed by the firm, making it the first time in the history of the Society for three generations to actively practice public accounting in the state of Alabama.

Dragonboat Race Team

Tax Hotline 2018

ALM Luncheon 2018

Jackson Thorton Building

January/February

MEMBER PROFILE

Lifetime Member Edwin Landon “Lanny” Crane of Jackson Thornton

Lanny Crane is the eminence grise at Jackson Thornton. Tall, lean, with a twinkle in his eye, Crane has been part of the firm since he obtained his license (certificate 553). Originally an engineering major, he changed his mind after spending hot summer days, 5:30 am to 8:00 pm, pouring concrete for the Day Street overpass leading to Maxwell AFB in Montgomery. That was actually the last time he changed anything major in his life. He has worked for the same firm and lived in the same zip code for the last 50 years. He speaks in a soft voice, and is clearly amazed at finding himself at this point in life, looking back over a long career at age 82. How different was it, back in the day, doing those debits and credits? “It was less complex, but the work is still the work. We gradually saw the need for specialization, and developed work groups in different areas”, said Crane. “It was obvious that we needed to expand our services.” And expand they did, adding one service niche after another during a period of tremendous growth during the 1960s and 1970s. In addition to providing value for their clients, a firm is still a business. Crane shared that in 1967-8 partner Douglas Jackson (CPA since 1944) started a retirement plan for Jackson Thornton staff with a modest investment, which has grown significantly. In the 1970s Jim Loeb, a cotton broker deeply involved in historic preservation in Montgomery, and Milo Howard, director of the Alabama Department of Archives and History, came to the Jackson Thornton partners with the idea of revitalizing downtown. As a consequence, the firm purchased the building at 200 Commerce Street and became the linchpin of a dramatic shift in the nature and perception of the area near Union Station.

ASCPA Connections

“It’s made all the work so much more efficient. We used pencil and paper when I started and the billing rate was $5.00 per hour. I find that hard to believe even now.” The second change he mentioned was more women in the profession. “Carolyn Young was our first female partner at Jackson Thornton and set the bar pretty high for those who came after. Now we see about half of our professional staff are women. They are smart, capable and juggle all the parts of their lives with such grace. I have so much respect for the women at Jackson Thornton and enjoyed working with them in my years at the firm.” “We thought it made sense to have an office downtown, where many of our business clients were located. It was an investment that has certainly paid off and we’ve had a front row seat as the pace of change around us has accelerated.” Prior to retiring two years ago, Crane’s work area was the wealth management division, formed in the late 1980s. The thread throughout his story was always about helping people, solving problems and the creation of this niche was about that. “Some of us went to a conference and realized that wealth management would be a great addition to our list of services. We learned a lot about the financial markets and felt we now could do a better job of advising clients. We created a model portfolio that we stick to and it allows us to weather any shortterm market shifts well. The key was to embrace broad, global diversification in how we built that portfolio.” What have been the biggest changes he’s witnessed in the profession? Certainly, technology is one area.

When asked for advice to pass along to the next generation, he confessed that he was not really involved in recruitment over the years. “I watched the development of new CPAs, and offered my perspective when I was asked for help. I do know that one thing hasn’t changed: you must build relationships with your clients. All the technology in the world will not make up for direct, face-to-face contact. And people know whether you really care about their problems or not. You learn such private things about your clients, sometimes more than you wanted to hear! I’d encourage younger professionals to concentrate on their communication skills. Writing clear sentences, using good grammar and language, which explains but doesn’t confuse, are essential. It all goes back to building a solid relationship that is credible.” As the ASCPA celebrates its Centennial with Jackson Thornton it was a pleasure to connect with a member who represent a significant part of the Alabama Society’s history. Thank you, Lanny Crane!

100 years of cultivating excellence for Alabamaâ&#x20AC;&#x2122;s CPA profession Anglin Reichmann Armstrong would like to congratulate ASCPA for this historic occasion. Your dedication and commitment to excellence for Alabamaâ&#x20AC;&#x2122;s accounting industry and its professionals has paved the way for us all.

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Proud to be growing together in excellence with ASCPA. Congratulations on 100 years!

â&#x20AC;&#x153;Your true success in life begins only when you make the commitment to become excellent at what you do.â&#x20AC;? -- Brian Tracy

Kassouf C E R T I F I E D

Birmingham | Auburn | Orange Beach | Baton Rouge

P U B L I C

Co A C C O U N TA N T S

kassouf.com

Administrative Assistant U.S. Army â&#x20AC;&#x201C; Administrative Personnel Specialist _______________________________________________________ Manage office logistics and assist CEO/staff on special projects, including ASCPA Student Guide to Alabama Accounting Firms. Worked at Colonial Mortgage prior to joining the ASCPA as Peer Review Administrator. 17 years at the ASCPA

STAFF PROFILE

Shirley L. Carroll

wilkinsmiller.com Mobile & Fairhope 251.410.6700

HAPPY BIRTHDAY Congratulations to the Alabama Society of CPAs for 100 years of service to our profession! We look forward to your continued success for years to come!

January/February

MEMBER NEWS Alabama. Tyler is also a member of the AICPA, the AICPA Leadership Academy, and regularly speaks to college students at Auburn University’s Beta Alpha Psi meetings about work/life balance.

ASCPA Chair Elect Dennis Sherrin (center left), managing partner at Hartmann, Blackmon, & Kilgore, P.C. in Fairhope, attended the AICPA and CPASEA Leadership Conference in Amelia Island, FL, October 19-21. Dennis had the opportunity to meet and connect with AICPA Vice Chairman Tracey Golden (left) and AICPA President and CEO Barry Melancon (right) and other representatives from the American Institute of CPAs. ASCPA President and CEO Jeannine Birmingham (center right) accompanied Dennis to the conference, which is designed to help incoming presidents from state CPA societies prepare for their year as chair. It also provides opportunities for these leaders to interact with one another and other state society directors. Dennis’s term as chair of the ASCPA will begin at the 100th Annual Meeting of the ASCPA on Thursday, June 13, 2019. Alan Alexander is the new Chief Opertating Officer at Jackson Thornton, a certified public accounting and consulting firm based in Montgomery. Alan comes to Jackson Thornton from RSM US where he was a Strategic Project Director/Senior Manager. He had served as the Chief Operating Officer for Sellers, Richardson, Holman & West prior to their acquisition by RSM US. Alexander is a graduate of Auburn University and the University of Alabama Birmingham and holds a Master of Accounting with a tax concentration. He is a member of the AICPA, and he is a national board member of the CPA Firm Management Association.

ASCPA Leadership Academy Class VI Graduate and East Alabama Chapter Advisory council member, Tyler Crawford, shared his insights on performing Artificial Intelligence Audits at the AI in Accounting and Auditing Conference for the Maryland Association of CPAs. Tyler is a manager and recruiter in the Auburn office of the public accounting firm, Barfield, Murphy, Shank & Smith. He earned his Bachelor of Science in Business Administration from Auburn University and Masters of Accountancy from the University of 72

ASCPA Connections

Merrill Johnston, Jr. of Barfield Murphy Shank & Smith has been awarded the FFI GEN (Global Educational Network) Certificate in Family Business Advising (CFBA) by the Family Firm Institute. The certificate is presented to individuals who have achieved comprehensive professional knowledge and gained significant expertise in concepts, skills and knowledge necessary to optimize effectiveness as family business advisors and consultants. The Family Firm Institute is an international professional membership organization of over 1800 individuals and organizations across 88 countries dedicated to providing interdisciplinary education and networking opportunities for family business and family wealth advisors, consultants, educators and researchers. It works to increase public awareness and broaden the understanding of trends and developments in the family business and family wealth fields. Doug Marshall, President and CEO of the Presbyterian Home for Children in Talledega, has joined the Board of Directors for the Presbyterian Oaks senior housing community. Doug graduated from the University of West Florida in 1985 and was recognized as a Distinguished Alumnus in 2012. In 2017, he was recognized as one of the Top 50 Over 50 in central Alabama by Positive Maturity. He’s previously served as CFO of United Ability and Alabama Family Trust, spent 25 years with Energen Corporation as Vice President/controller of Spire, and worked in the tax department for Ernst & Young, LLP.

WHAT’S GOING ON OUT THERE Anglin Reichmann Armstrong has been named among the 2018 Best Small Firms to Work for by national publication Accounting Today. According to Accounting Today, an annual survey and recognition is conducted in partnership with Best Companies Group to select the Best Accounting Firms to Work for in three categories (small, midsize, and large), and is designed to identify, recognize and honor the best employers in the accounting profession. Barfield, Murphy, Shank & Smith (BMSS) is proud to announce it is merging with Huntsville-based CPA firm Hall Albright Garrison & Barnes on January 1, 2019. The existing BMSS location in Huntsville will relocate to HAGB’s office at 400 Meridian Street. Once the merger is complete, the combined entity will have 29 partners, 94 CPAs and approximately 225 employees. The two firms will consolidate under the name BMSS, LLC. BMSS ranked 12th on Accounting Today’s 2018 Regional Leaders list for the Top Firms in the Gulf Coast region with an expected $25 million in annual revenue by the end of 2018. In addition to the CPA firm, the BMSS family of companies includes a wealth management company, BMSS Wesson Wealth Solutions, a payroll and benefits company, PBS, a PEO company, PBS PEO and an IT company, Abacus IT Solutions. Since 1998, BMSS has also been an independent member of the BDO Alliance USA, a nationwide association of independently owned accounting firms. Hall Albright Garrison & Barnes is a full-service public accounting firm whose team of CPAs and consultants have served the North Alabama area for over 30 years. The firm offers tax, audit, payroll and bookkeeping services and specializes in serving government contractor clients. The firm was formed in 2009 through a merger of

House and Albright, P.C. and Hall and Garrison. With the addition of Greg Barnes in 2016, they became Hall Albright Garrison & Barnes, P.C.

Vic Smith, CPA, PC, a public accounting firm in Alabaster, helped sponsor the local 2018 Fall Fling. The event gives special-needs students from two school systems the opportunity to get together and meet new friends while enjoying activities they otherwise might not get to enjoy. Students enjoyed activities at seven different stations featuring activities such as face painting, carnival games, a drum circle, inflatable bounce houses, and the highlight of the event—a catfishing pond. Warren Averett CPAs & Advisors helped sponsor Conecuh County’s biggest annual event—the 2018 Conecuh Sausage Festival this past October. In addition to Conecuh sausage, participants enjoyed the South East Regional Fly-in & Air Show, a Professional Cowboy Association (PCA) Sanctioned Rodeo, the Alabama Junior High & High School Rodeo, a Bigfoot Calling Contest and car show.

Hieronymus CPAs, LLC sponsored the 2018 Salty Worm Brackish Classic and Delta Bash held at the Bluegill on the Causeway in Mobile. The fishing tournament, silent auction, and after-party benefitted the Gaillard Pancreatic Cancer Research Endowment at the USA Mitchell Cancer Institute. SPB Accounting Group, previously based in Hoover, joined Dent Moses, LLP on December 1, 2018, bringing four accounting professionals and staff on board. The combined firm provides a wide range of accounting, tax and consulting services to their clients throughout the region, as well as technology consulting through their subsidiary, Impact Technology Group.

Wilkins Miller, an accounting and advisory firm with offices in Mobile and Fairhope, has been named a “Top 400 Firm” by INSIDE Public Accounting (IPA). The definitive list was developed by gathering information from more than 550 firms that completed IPA’s Survey and Analysis of Firms and professional associations that aided in the search for firms to add to the list. Wilkins Miller came in the 338th spot and was one of firm Alabama firms named to the list.

REMEMBERING RICHARD DONALD LECROY

May 4, 1952 - October 27, 2018 Tuscaloosa, AL | Certificate # 1733 Richard Donald LeCroy, age 66, born in Clanton, Alabama, passed away on October 27, 2018. He was a servant of Jesus Christ, loving husband, guiding father and sweet “Pop’’. Richard gave his life to Christ at an early age and served Him as a member of Brent Baptist Church, Alberta Baptist Church and most recently Five Points Baptist Church for the past 33 years. During his lifetime Richard served as a Deacon, Royal Ambassadors (R.A.) leader, teacher, and on numerous leadership committees. Richard enjoyed being active and spent years coaching baseball at Kentuck Park in the Warrior Baseball program as well as R.A. basketball and girls’ softball at Five Points Baptist Church. He saw the potential in every boy and girl on the teams he coached and relished the opportunity to make a positive impact in their lives. Richard graduated from The University of Alabama in 1974, and became a Certified Public Accountant in 1977. He opened his own practice in 1978 and loved serving clients for the past 40 years. Although termed clients, Richard thought of them as dear friends

and was thankful for the opportunity to serve them, many of whom he knew for the entire tenure of his practice. Richard also loved those he practiced accounting with and considered them his best friends as much as his colleagues and co-workers. He was an avid fan of any sport at The University of Alabama. He and his wife, Cheri, attended as many athletic events at the Capstone as possible through the years. He loved Alabama football and taking his granddaughters to Alabama Gymnastics meets. Richard was also an avid golfer and enjoyed time on the course with his friends. Richard was a loving husband and father who cherished the moments he spent with his loved ones. He never missed an opportunity to be an encouragement to those around him. Richard was an unceasing supporter of his sons’ pursuits whether athletic or academic. He loved his granddaughters, Addy and Audrey, and took pride in being called their “Pop.’’ He made the most of life and those who knew him are better for having done so.

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BANKS, FINLEY AND WHITE, CPA RECENTLY CELEBRATED THEIR 45TH ANNIVERSARY. The firm was founded by the first African-American CPA in Alabama, Mr. James C. White, Sr., Chairman Emeritus (far left). Leaders of the firm are pictured with him: (left to right) James C. White, Jr., Managing Partner, Jeffery White, Sr., Partner in their Birmingham office, Stanley B. Sawyer, Resident Partner-in-Charge of their Memphis office, and Lenox M. Forsythe, Partner in their Atlanta office.

“A Commitment to Excellence” Serving our communities for over 45 years, alongside the 100-year strong Alabama Society of CPAs Congratulations ASCPA!

Birmingham, Alabama . Atlanta, Georgia . Memphis, Tennessee Website: www.bfwcpa.com

ASCPA Connections

e s u o h r e v l Cu s e t a l u t a r g ! s con r a e y 0 0 1 n o you Thank you, ASCPA, for all you do for our students and grads. culverhouse.ua.edu/accounting

CHAPTERS

Impacting the CPA profession across the state since 1927 The ASCPA has 11 chapters throughout Alabama. Chapter membership allows you to network with CPAs in your area, remain active in the ASCPA and track industry news throughout the state. This year, chapter activities across the state have transformed. In addition to recognizing our centennial at annual chapter hosted continuing professional education, chapters have taken initiative to make a difference in their local community, build connections with

ASCPA Connections

local businesses, and just enjoy celebrating our centennial over food, drinks, and even cornhole games! ASCPA chapter members continue to better the profession locally by giving of their time, talent and resources. You can get more involved and find out about your next chapter event on www.ascpa.org/chapters.

Membership Relationship Manager Auburn University at Montgomery _______________________________________________________ Works with eleven chapters and student programs to increase the profile of the ASCPA and to serve membersâ&#x20AC;&#x2122; needs at the local level. Formerly with the state of Alabamaâ&#x20AC;&#x2122;s judicial system. Liaison to Advisory Council members, student members and their campus organizations, as well as university educators. 5 months at the ASCPA

STAFF PROFILE

Zack W. J. Camerio

Our Proven Track Record Speaks for Itself. Combining the experience and expertise of a regional firm with the

attention and focus of a dedicated local firm for over 35 years.

EXPERIENCE | INTEGRITY | PERSONAL SERVICE - SINCE 1981

110 Office Park Drive, Suite 100 Birmingham, Alabama 35223 205-323-5440 | www.pearcebevill.com

January/February

CHAPTER EVENTS 1 Montgomery Chapter Photos with Santa Fundraiser for Mercy House; 2 Montgomery Chapter Members Tailgating at the Mission House; 3 CPAs and their Families Serving at the Manna House with the Huntsville Chapter; 4 East Alabama Chapter Social at the Collegiate Hotel; 5 ASCPA Staff at Photos with Santa to Benefit the Mercy House; 6 Birmingham Chapter making a donation to the University of Alabama Birmingham; 7 Pastor Austin and his family at Photos with Santa Benefitting the Mercy House; 8 Team Spirit from Richard Harris Ingram Bozeman; 9 North Alabama Social Benefitting Beta Alpha Psi; 10 Montgomery Chapter Members Representing their Teams; 11 Huntsville Chapter Serving the Manna House; 12 Cornhole at the North Alabama Social at the Gun Runner; 13 Montgomery Chapter Tailgate at Mission House; 14 East Alabama Chapter at the Collegiate Hotel; 15 Huntsville Chapter Members Serving at the Manna House; 16 ASCPA Staff Tailgating with the Montgomery Chapter; 17 Huntsville Chapter Members Giving Out Desserts at the Manna House; 18 Jeannine Birmingham Shirley Carroll and Keary Foster at the Montgomery Chapter Tailgate; 19 East Alabama Chapter Social Sponsor

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19 January/February

A Family Affair: Jonathan G. Kassouf, CPA, David P. Kassouf, CPA, Gayle K. Thigpen, Bradley Stephen, CPA, Gerald J. Kassouf, CPA, and Michael D. Kassouf, CPA

David and Gerry Kassouf

Keeping a family tradition alive at Kassouf and Company, P.C.

There are several Alabama firms which have a rich family tradition. Kassouf & Co., P.C. of Birmingham is one of them. David and Gerry Kassouf tell their story. We were born and raised in Birmingham and spent our early years living about a mile from our office’s current location. We attended John Carroll High School and the University of Alabama, earning both undergraduate and master’s degrees. Our father was Paul Kassouf, a CPA who founded our firm and was its leader until the mid-1980’s. He continued to be active at the firm until he passed away in 2008. Our mother, now 94 years old, stayed at home until their youngest child started school, when she began to assist with firm bookkeeping. David and I have two sisters: Beverly K. Kimes taught school and worked in education administration for almost 50 years, while Gayle K. Thigpen works at Kassouf & Co. as the firm administrator. David and his wife Jean have three children, Catharine Kassouf, Michael Kassouf and Sarah Charles, and six grandchildren. Michael is a shareholder at Kassouf & Co. Gerry and his wife Nazha also have three children, Michelle Campbell, twins Jonathan and Jason Kassouf and four grandchildren. Nazha and Michelle have worked part-time for the firm. Jonathan is a shareholder at Kassouf & Co. Sister Gayle has three children, Douglas Stephen, Ashley Roach and Bradley Stephen. Bradley is a supervising senior accountant at Kassouf & Co. Even though many of us are involved in the firm, we were not pushed into the profession. We simply lived the profession as a family. Dad would 80

ASCPA Connections

bring home bank statements and we, as a family, would sort checks into numerical order so he could prepare bank reconciliations. We’d work during school breaks and summers; first as couriers, with bookkeeping and accounting tasks following. David began college knowing that accounting was going to be his profession. Gerry followed David. At the University of Alabama, Professor Joe Lane and Professor Baker Flowers made lasting impacts on us, both personally and in our careers. They were passionate about the profession and instilled that same passion in us. Our father, in his own way, guided us in how important planning - tax planning, consulting and being a trusted advisor - is in helping clients succeed. Our paths from college were similar. David completed graduate studies the same day Gerry completed undergraduate studies. We both began our full-time career on the same day, December 14, 1974. We have worked at the firm since then; David in the firm’s Business Services Group and Gerry in the firm’s Heathcare Group. Gerry worked for a short period before returning to graduate school, coming back to the firm after receiving his degree. We both took the CPA exam in May of 1975. David passed on the first attempt. Gerry completed the exam after returning from graduate school in 1976. Were there any surprises when we started working at the firm full-time? The surprises are the normal ones working with family may bring! We have definitely have the opportunity to work with great co-workers and clients. We are fortunate to have a third generation of family working

MEMBER PROFILE in our firm, and a fourth-generation CPA, Zachary Kimes, working with another Birmingham firm.

unique opportunities to design and implement plans that align with the different desires and needs of the family.

David: The impact of choosing accounting was the opportunities that have come my way as a result of this career. We have been truly blessed to work with great clients who appreciate our commitment to them and who have allowed us to become their trusted advisor. Working with our great staff of highly motivated and service-oriented team members has made the greatest portion of my working career a joy. Gerry: The biggest impact is providing help to our clients and working with our coworkers to learn from them and to simultaneously help them progress in their career. The constant changes in tax law, government regulations and firm growth are daily reminders that nothing stays the same.

We have both worked to give back whenever possible and have been involved in a variety of civic, educational and religious organizations for many years. We’ve served our church council, have been members of accounting advisory boards at several state colleges and universities, and have served on many civic and not-for-profit boards. Each of us continues active involvement on many of these boards.

Over time, we have worked together to add services to our firm. Our father helped form the first corporation for medical practices in the state of Alabama, providing a gateway to the health care field. As a result, Gerry has spent the vast part of his career working with physicians. The firm has a health care niche, with eight non-accountants providing specialized services to clients nationally. The firm also has a physician’s practice management company, providing day-to-day back office operations for health care groups. David works in the business area with a varied client base. Over the years, he has assisted the firm and its clients with mergers and acquisitions, business valuations and litigation support in addition to the traditional compliance and reporting services. Together, we have added third party administration and investment management as

David has been deeply involved with the ASCPA. He served as an officer of the Birmingham Chapter and served on a variety of committees at local and state levels. He also had the privilege of serving the Alabama Society as an officer on its board for many years and ultimately served as its president, 20 years after Dad Paul Kassouf filled the same role. David also represented the ASCPA as an AICPA Council member for many years and served two terms on the Alabama State Board of Public Accountancy, as did Paul Kassouf. Gerry has been a member of the ASCPA’s Federal Tax Committee and served on the AICPA’s Retirement Plan committee. Retirement, yes that’s what’s looming on our horizon! David: Much of the spring in my step (what’s left of it) comes from working with the

additional client services. It’s gratifying helping clients succeed. Being able to meet to discuss their goals, plans, desires and opportunities. Listening to them and asking questions is critical. Gerry worked with a group of physicians to open one of the first freestanding outpatient care facilities in the state of Alabama. It took two years of 6:00 am Tuesday morning meetings to create the concept, and to turn it into a plan and reality. That’s just one example of what can happen when you are deeply immersed in a particular practice area. David has worked with several family businesses and, with the assistance of other professionals, helped transition family business ownership from generation to generation using a variety of techniques. Working with families that have both direct and indirect multi-generational involvement in their business provides

January/February

young and talented staff we have. I will truly miss the energy that we feel when we are around the bright, talented and gifted team members we have the privilege of working with daily. We’ll miss the client contact - but as we transition, we know our clients’ needs will continue to be served at the highest level. Gerry: Missing clients and missing our great team. But retirement provides opportunities for those who remain to do what I have enjoyed for my whole career. I learn something new every day. I know that the next generation will, too. Did Dad’s philosophy affect us as we joined the firm? Yes, as our beloved friend and classmate Professor Tom Ratcliff would say: “There is no right way to do the wrong thing.” Our father firmly believed there was only one way to practice and did not tolerate any variance from doing the right thing. We continue to operate with a firm vision that includes mutual respect, honesty and openness. Outside of work, what do we do? David: Service to the ASCPA and ASBPA provided so many opportunities to visit different parts of the United States that it really whetted our appetite for travel. With both the AICPA Council and NASBA meetings twice a year, Jean and I, with other Alabama representatives, visited many cities and states that we might not have otherwise chosen. Jean and I also traveled recently with neighbors to Portugal, visiting both Lisbon and Porto. The culture,

ASCPA Connections

architecture and history are delightfully different from that of our native state. We are both looking forward to continuing our travels. Gerry: Nazha and I have recently returned from a three-week vacation to Europe, including Greece, Italy, Malta and France. I was able to visit an American World War I cemetery near Verdun, France, where my godmother’s son is buried. He was an immigrant to the United States, fighting for his newfound country and was shot and died on Armistice Day, November 11, 1918. To visit his gravesite, and to understand how many gave their lives for our freedom, was very moving. We’ve got three suggestions for younger professionals: 1. Become an expert. We think that today’s CPAs should find an area that they are passionate about and to develop expertise in that area. Understanding, learning and working as an expert will provide opportunities. 2. You must create a network to succeed. 3. Never lose sight of patience, honesty and humility. We’re reminded of the advice our father would routinely give us both – “Don’t take any wooden nickels” - a lighthearted, but earnest reminder, to be cautious in everything we do.

STAFF PROFILE

Ashley N. Sides (left) Continuing Professional Education Coordinator Faulkner University ____________________________________________________ Provides administrative assistance for CPE, working closely with Jessica Roberts and members of local chapter Advisory Councils. Interned with the Alabama State Board of Public Accountancy while an accounting student. Planning to enroll in distance learning masterâ&#x20AC;&#x2122;s program. 2 years with the ASCPA

Jessica A. Roberts, CPA (right) Vice President of Continuing Professional Education Troy University _________________________________________________ Responsible for scheduling, managing, organizing and executing continuing education offerings across multiple delivery channels and vendors. CFO for the Central Alabama Community Foundation prior to joining the ASCPA. 4 years at the ASCPA

January/February

Knowing Knowing that that the the ASCPA ASCPA selected selected me me out out out out of of hundreds hundreds of of applications applications reaffirmed reaffirmed my my passion, passion, hard hard work, work, and and commitment commitment to to success. success. It It has has boosted boosted my my confidence. confidence. As As aa single-mother single-mother and and aspiring aspiring CPA CPA in in the the early early stages stages of of my my career, career, receiving receiving the the Chairman Chairman Scholarship Scholarship has has not not only only helped helped me me financially financially but but it it has has made made me me feel feel as as though though II have have enough enough talent talent to to succeed succeed as as aa CPA, CPA, and and there there is is nothing nothing more more motivating motivating than than that. that. Andrea Butler Andrea Butler Alabama State University Alabama State University

TEXT TEXT “ASCPA” “ASCPA” TO TO 77977 77977 TO TO MAKE MAKE A A CONTRIBUTION CONTRIBUTION TODAY TODAY Make a one-time or reoccuring contribution to the Educational Foundation by texting Make a one-time or reoccuring contribution to the Educational Foundation by texting ASCPA to 77977. Download the ASCPA Educational Foundation app to make a ASCPA to 77977. Download the ASCPA Educational Foundation app to make a contribution, see the latest from the ASCPA, and hear more student success stories. contribution, see the latest from the ASCPA, and hear more student success stories. Your donation directly supports students like Andrea. Your donation directly supports students like Andrea. 84

ASCPA Connections

STUDENT EVENTS 1 Young CPAs visiting the University of North Alabama; 2 Future CPA from Auburn University at Montgomery; 3 Student Members from Jacksonville State University; 4 Meet the Firms at the University

of West Alabama; 5 Beta Alpha Psi Members from Auburn University at Montgomery; 6 Amanda Freeman speaking to accounting students at AUM; 7 Intern Blakey Vinson from AUM; 8 Jacksonville State University Accounting Students

8 January/February

individuals, firms and two of the ASCPA’s eleven chapters. Annual funding for the Foundation comes from the proceeds of the Young CPA Annual Charity Golf Tournament. In 2019, 50% of Centennial sponsor fees, as well as 50% of the June 13 Gala tickets, are also a donation to the Educational Foundation.

HOW IT WORKS

Each December, university educators are reminded that the ASCPA Educational Foundation will award one general scholarship to each accounting program, as well as five at-large Diversity in Accounting and two Financial Need awards. There are slightly different criteria for the three categories and students may apply for one or all, if they qualify. In addition, there are two endowments within the Foundation, one from Kassouf & Co., P.C., which provides a scholarship at the University of Alabama and Auburn University, as well as the Pearce Bevill Minority Scholarship at the University of AlaThe Alabama Society’s Educational Foundation was formally founded in 1967, although scholarships had been given, and students supported in other ways, from 1926 onward. Internship programs were in place, with Walter Smith (certificate #3) stating that his firm was working closely with Spring Hill College to employ accounting students and allow them to receive academic credit for their work. During the 1950s, the ASCPA began building stronger relationships with universities, in order to encourage their students to seek public accounting positions in Alabama, versus moving out of state or choosing an accounting role in industry. The Educational Foundation’s Board met for the first time in December 1967 and established the foundation’s by-laws. They decided that the five immediate past ASCPA presidents would serve on the board. Initially funded by pledges from individual members and firms, the first scholarships were for $500. For the 2018/19 academic year, the Foundation awarded $77,000, most of it $2500 general scholarships. In conjunction with the 2011 Fortune Forward capital campaign, the board elected to add diversity and financial need awards. The $700,000 raised through five-year pledges came from 86

ASCPA Connections

bama at Birmingham. The applications and their criteria are posted on the ASCPA website and students can download the application and submit to the ASCPA by the March deadline, along with their resume, 300-word essay and transcript. The essay is a new addition to the application package and does a good job of transforming simple paperwork into a human being. Applicants are encouraged to tell their story, to talk about why they chose accounting and what the scholarship will mean to them. About a third of the universities choose the scholarship recipients themselves and inform the ASCPA of their selections. The balance of the schools submit application packages to the ASCPA for review. General scholarships are reviewed by several ASCPA staff, while a task force from the Educational Foundation selects the diversity and financial need recipients.

Bradley congratulates the ASCPA on 100 years of providing advocacy and education to Alabama’s accounting professionals

Better Together. At Bradley, our attorneys understand that legal matters are more than contests of critical thought; they have real-world implications, which is why we prioritize integrity and teamwork. We go above and beyond our clients’ expectations by providing innovative solutions, dependable responsiveness and a deep commitment to success. On behalf of all the attorneys at Bradley, we are grateful for the opportunity to work with the dedicated and talented professionals who are part of the Alabama Society of Certified Public Accountants.

bradley.com No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. ATTORNEY ADVERTISING. Contact: John D. Watson, Esq., 205.521.8436, jwatson@bradley.com, Bradley Arant Boult Cummings LLP, 1819 Fifth Avenue North, Birmingham, AL 35203. © 2018

The biggest challenge for the reviewers? Making a decision! It comes down to (almost) tossing a coin, because these students are all so talented. They are academically skilled, have part-time or full-time jobs, are involved in community organizations, play collegiate sports and many are non-traditional students with families. Are tears shed as reviewers read the student essays? Absolutely. No one is immune to the amazing journeys which the students have taken. The best part is informing the schools and students of the scholarship selection. Okay, thatâ&#x20AC;&#x2122;s actually the second-best part. The very best part is the foresight of the Educational Foundationâ&#x20AC;&#x2122;s Board of Directors in setting policy for the use of the scholarship funds. There are no strings attached. While students can use the money for tuition or other school expenses, they may need a new laptop or to pay rent or for travel home. This flexibility enables students to truly benefit from the scholarship in ways which are most meaningful to them.

1 Text2Give-UPDATED.indd

The Society commissioned a video for the 2011 Fortune Forward capital campaign and filmed on the Samford University campus. ASCPA member and educator Dennis Price generously allowed the camera into his classroom and shared how important the scholarship had been to him, when he was an undergraduate. His mother had been widowed and was strug-

gling to help him stay in school. Receiving the scholarship made a huge difference and allowed him to finish his degree. Does your donation to the Educational Foundation make a difference in the lives of these students? Of course, just as it did for Dennis Price forty years ago.

HAPPY 100TH BIRTHDAY FROM THE DISCOVERY TEAM

Custom Market Research | Alabama Prices W W W.C YG N. A L

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87 3:33:02 PM 1/3/2019

It adds up. The bottom line is that an accounting degree from Auburn University at Montgomery is unmatched in the region when it comes to building and accelerating careers. Accountants deal in numbers. Here are some that are impossible to ignore: • Ranked in Top 1% of Business Schools in the World - AACSB Accredited. • Complete your graduate degree in as little as 3 semesters. • Online, On-campus, Full- or Parttime availability of classes. • Taught by award-winning practitioners and educators. Learn from top faculty like Alabama Society of CPA’s 2017 Outstanding Accounting Educator, Dr. Keren Deal.

aum.edu/accounting

Lifetime Member

Don L. Machen

Retired Senior Partner of Machen McChesney Don L. Machen has practiced public accounting in Auburn since September 1963. In January 1965, he became partner in McChesney and Machen, Auburn, Alabama; fifteen years later he became senior partner of Machen, McChesney & Chastain, LLP. Branded today as Machen McChesney, LLP, the firm is a regional accounting and business advisory firm with 21 certified public accountants and a total staff of 44 shared between offices in Auburn and Montgomery. Don Machen retired from the firm in 2002. Machen was born March 8, 1940, in Cordova, Alabama. He moved with his family to Sylacauga, in 1944 and played sports throughout his childhood. His skill led him to a football scholarship at Auburn University in 1958. Don Machen’s story in his own words: My athletic career was molded by my parents, Louis and Augusta Machen. My father was an athlete himself at Jacksonville State University and made their top 100 athletes list. My mother was also a great influence on my life and taught me to care for others and embedded true Christian values in me through my upbringing in the church. In 1958, my senior year in high school, I met my wife to be Jane Stewart. Jane and I married in January 1960. Jane had spent one year at Maryville College in Tennessee and then joined me at Auburn University. She has been the real love of my life for 58 years now and the mother of my three loving children, Mindy Keel (Bobby), Melany Iannuzzi (Tony), and Mike Machen (Polly), and grandmother to nine wonderful grandchildren. I owe my career in the accounting profession to the great faculty that I was privileged to study under at Auburn University. The professors that taught me my basic principles were the three H’s; A.J. Hill, Dennis Hale, and Al Hartman. They not only gave me a firm foundation in accounting but led me to the decision to spend the next fifty years in the accounting profession. A former professor at Auburn University and, at the time the owner of his own accounting practice, L.D. (Don)

ASCPA Connections

McChesney, offered me an intern position my senior year and I never looked back from there. I began my career in Auburn in 1962 and have remained here ever since. After deciding on a career in public accounting, I started working immediately out of college and Jane and I started our family. After a few years of obtaining public accounting experience, I decided I needed to take the CPA exam to become better prepared to face the future for myself and my clients. At this point, Mr. Dave Young, executive director of Alabama Society of Certified Public Accountants, entered my life. Dave encouraged me to sign up for the University of Georgia’s CPA Review Course. Without his encouragement and actions, I wonder what my future would have held! The next step in my career was to join the Alabama Society of Certified Public Accountants. This decision was definitely one of my career highlights. I was not only able to meet some of my fellow CPA’s from across the state, but also had the wonderful experience of working with the next generation of executive directors, Joe Robertson and Bryan Hassler. These two gentlemen were not only outstanding leaders for the Alabama Society but were well-respected nationally through the AICPA. The friendships formed by my service on numerous ASCPA and AICPA committees have had a lifetime impact and are something I will always cherish. My only regret was that I retired before having the opportunity of working with our outstanding current ASCPA President and CEO, Jeannine Birmingham. My association with my fellow members of the Society and the sharing of their own experiences and knowledge in our profession certainly impacted my own life and my accounting practice. I was able to bring back home to my firm professional knowledge, expanded goals, sound management practices and put them to use immediately. I have never regretted my choice of entering public accounting as a career. Working with so many different clients over the years and being there to share in their businesses growth, development, and prosperity have been a real joy to me.

MEMBER PROFILE MMC-0145 ASCPA Ad_Rev 5.qxp_Layout 1 11/12/18 10:58 AM Page 1

My main area of practice was tax preparation and tax planning which enabled me to meet with clients often and gave me annual insights into their successes. The one aspect of leaving a day-to-day practice that I truly miss is my annual meetings with so many wonderful clients. While in the active practice of public accounting I was also given the opportunity to offer my services to many non-profit organizations. I looked on these opportunities as a way to give back to my community as a small repayment of what had been given to me and my family over the many years of living in Auburn. I am also proud of the fact that my son, Mike Machen, has continued to serve Auburn and surrounding communities as a CPA. I am glad that he saw enough good points out of my life that he chose public accounting as his career. Mike has also decided to give back to his community by serving many nonprofit organizations. As Jane and I have entered our “retirement years”, we have truly enjoyed the quiet times we spend together at our Lake Martin home, “Piney Point”, and visits to see our wonderful children and grandchildren. My life as a CPA has been an amazing experience and I would not trade it with anyone. I only offer one bit of advice to the next generation of CPAs and that is to be active in your chosen profession. This means not only to be the best advisor to your clients that you can be and to stay current with accounting knowledge but also be active with the ASCPA. It will pay huge dividends back to you. And finally, “Be Proud to Be a CPA!” Machen’s service to the ASCPA and to community organizations is a long list. His commitment to the profession through his local chapter, through ASCPA committees and on council was exemplary.

Machen McChesney would like to offer our sincere gratitude to the ASCPA for their past, current and future dedication to the profession we all love. Your hard work enhances the delivery of accounting, assurance, tax, and advisory services to our clients and communities. We look forward to the next 100 years!!!!! It has been a joy for 65 years to provide professional services to our clients. We are blessed to have caring and proactive people who work together to create and maintain an environment that produces results for our clients, promotes teamwork, provides opportunities to grow personally and professionally, and offers work/life balance. “I have been fortunate to have been associated with great partners and staff. Together we have created a friendly work environment with the flexibility to afford all of us a great work-life balance.” – Don Chastain “The firm’s focus on staff development and advancement has allowed me to obtain my goal of becoming partner. The firm has a very family oriented culture that Returns Value to me and my family.” – Aaron Waller “Working at Machen McChesney is a pleasure. The firm provides a challenging professional environment, while maintaining a family feel among the staff. The work-life balance the firm allows is a blessing to my young family.” – Allison Moore Machen McChesney pledges to Return Value to our clients, communities, and employees on a daily basis. We pledge to maintain the highest level of integrity, quality, and service in each of our interactions. We seek long-lasting mutually beneficial relationships that make a difference and achieve success.

Auburn - Opelika | Montgomery | www.machenmcchesney.com

January/February

save the date.

2019 ASCPA Conferences & Workshops BUSINESS & INDUSTRY APPRECIATION | March 14 at the Vulcan EMPLOYEE BENEFITS WORKSHOP | May 23 at the ASCPA Offices 100TH ANNUAL MEETING | June 13 at Wynlakes Country Club GULF SHORES CPE CLUSTERS | June 18-21 at the Beach Club SUMMER EDUCATION CONFERENCE | July 1-5 at the Sandestin Golf & Beach Resort EMERGING LEADERS SUMMIT | July 25 at the Avondale Brewing Company TECHNOLOGY CONFERENCE | August 15-16 at the Embassy Suites - Hoover FINANCIAL A&A CONFERENCE | September 27 at Auburn University at Montgomery EDUCATOR CONFERENCE | October 2019 at the ASCPA Offices GOVERNMENTAL A&A FORUM | December 2019 in Birmingham

ASCPA Connections Get more details and register at www. ascpa.org/CPEConferences.

REAL WORLD SEMINARS’

Jim Martin CPA, CGMA, MAcc

is your Centennial Champion for Accounting & Auditing. Join the ASCPA and Jim for the best A&A offered all year long.

2019 A&A Update for the real world 05.14.19 05.16.19 05.16.19 08.20.19 08.26.19 08.29.19

Birmingham | 002 | 4 hours Montgomery | 010 | 4 hours Live-Stream | LS010 | 4 hours Tuscaloosa | 051 | 4 hours Auburn | 080 | 4 hours Mobile | 107 | 8 hours

financial statements of nonprofit organizations: significant changes are happening 05.17.19 08.21.19 08.27.19 09.26.19

Montgomery | 016 | 4 hours Tuscaloosa | 068 | 4 hours Auburn | 097 | 4 hours Mobile | 166 | 4 hours

non traditional services & other methods of making a living

2019 compilation & review update for the local firm 05.14.19 05.16.19 05.16.19 08.20.19 08.26.19 08.29.19 09.18.19 09.19.19

Birmingham | 004 | 4 hours Montgomery | 012 | 4 hours Live-Stream | LS012 | 4 hours Tuscaloosa | 059 | 4 hours Auburn | 087 | 4 hours Mobile | 100 | 8 hours Huntsville | 129 | 4 hours Birmingham | 144 | 4 hours

A&a for tax people who hate A&A 09.18.19 09.19.19 09.24.19

Huntsville | 123 | 4 hours Birmingham | 137 | 4 hours Mobile | 159 | 4 hours

Small Business Fraud: The Lessons behind the stories 09.26.19

Mobile | 168 | 4 hours

09.24.19

Mobile | 161 | 4 hours

The new leasing standard: It’s here and it’s huge 05.15.19 09.20.19 09.25.19

Birmingham | 008 | 4 hours Birmingham | 156 | 4 hours Mobile | 165 | 4 hours

The new revenue standard: speaking a different language of revenue 05.15.19 05.17.19 09.20.19 09.25.19

Birmingham | 006 | 4 hours Montgomery | 014 | 4 hours Birmingham | 150 | 4 hours Mobile | 164 | 4 hours

what you need to know about the revenue recognition and leasing standards 08.21.19 08.27.19

Tuscaloosa | 061 | 4 hours Auburn | 089 | 4 hours

get the latest details on Jim’s courses at www.ascpa.org/JimMartinCPE.

HISTORY OF ASCPA CPE Since the Public Accountancy Law of 1973 was passed, Alabama CPAs have been required to report continuing education with their annual license renewals. Today, the world of professional development is experiencing disruptive change. As such, the CPA profession will need to embrace this disruption and evaluate how we meet the needs of today’s professional learners. The lifelong learner will be affected by ever-changing technology, innovations in education methods, and the gap between compliance and competency. Exponential improvements in technology have shifted the paradigm of learning. Today’s CPA needs CPE that can be earned anytime, anyplace, and on any device. Smart phones, mobile internet, and cloud computing provide unprecedented access to knowledge and data. CPAs no longer need to memorize facts relating to the latest tax law changes or FASB standards because that information is only a Google search away. The current one-size-fits-all approach to CPE is obsolete, and must be replaced by technology-driven, customized approaches. 94

ASCPA Connections

Innovations in education give learners more control over the pursuit professional development. One such innovation is nanolearning, where a single concept is taught in a short, ten-minute burst, on-demand, and usually on a mobile device. Another concept gaining traction in the education profession is the flipped classroom, or blended learning. Under this method of learning, the instructor serves as a facilitator, rather than a lecturer. Learners do a portion of their work ahead of time, such as reading class materials, or watching videos, then have interactive discussions or workshops during their in-person class time. Gamification, or using game design elements in non-game contexts, is another area of potential in the professional d e v e l o p m e n t world. Concepts are presented as a game or simulation and the participants master concepts through the experience. Opportunities to earn badges or progress through levels in the simulation invest

the user in the experience and increase the retention of the given concepts. All of these methods increase the learner’s engagement, and positively impact the competency and retention of learning objectives. Even with increasing access to technology, and innovations in educational methods, a gap exists between the current model of measuring compliance with continuing education requirements, and the experience of building professional competency. Research has shown that 70% of what we learn is through first-hand experience,

20% is through mentoring or coaching, and the remaining 10% is through formal structured instruction. Even though we know only 10% of what we learn is through classroomtype instruction, CPAs are still required to earn forty hours of continuing education each year. Every regulated profession is challenged by this detachment between competency and compliance. NASBA, the AICPA, and the Alabama State Board have all made strides to address this dilemma. In response to the evolving needs of the 21st Century CPA, the State

100 Congratulations

on A Century of Excellence

From From Your Your Friends Friends at at the the Arkansas Arkansas Society Society of of CPAs CPAs

Arkansas Society of Certified Public Accountants

Board has approved changes to the CPE requirements that will go into effect with the 2019-2020 CPE reporting year. In addition to addressing some of their most common CPE audit failures, the changes will make reporting your CPE credits much, much easier. Beginning with the 2019-2020 reporting year, the Board will remove the cap on self-study hours, where in the past, a limit of 50% has been in place. The Board will begin accepting both nano-learning and reporting of half-hour credits. To allow for reciprocity with more states, the State Board will add a twohour ethics requirement. These changes will not only make reporting easier but will also help CPAs earn their credits in more convenient ways than before. The ASCPA’s education department is busily preparing for the State Board’s rule changes. The offerings in the very popular CPE buffet have been expanded. The CPE department is researching various learning management systems which will allow the packaging and offering of on-demand and nano-learning courses.

continued vitality requires evolving the way we develop, deliver and measure learning and competency for CPAs.” Incorporating technology-driven education to CPAs will allow them to access educational opportunities on any topic at any time, and on any device. Implementing innovative educational methods will invest users in their objective and increase competency in the desired topic. Finally, bridging the gap between compliance and competency through changes in the State

Board’s continuing education requirements will return control to professional learners, and bring about much-needed change in the continuing education world. The world of continuing

education is experiencing disruptive change, and there has never been a more exciting time to be a part of the lifelong learning profession.

While these changes seem far away, the Society has an exciting schedule planned for the upcoming CPE year. The Society will hold its 100th Annual Meeting in June which will wrap up a year of Centennial celebration activities. In March, the Society will bring back and rebrand the Business and Industry Appreciation Conference. A new Emerging Leaders’ Summit will be held in July, and it will be in a TED Talk format. A not-forprofit event is also in the works. This year clusters will be offered in May in both Birmingham and Montgomery, as well as livestreaming of the Montgomery courses. To wrap things up, the AICPA’s Future of Learning Initiative states, “the CPA profession’s

January/February

GENERAL CPE SCHEDULE 001 Surgent’s Individual Income Tax Update May 14, 2019 | Pelham | Tax: 4

015 Agricultural and Farm Activities: Special Rules and New Rules May 17, 2019 | Montgomery | Tax: 4

002 2019 A&A Update for the Real World May 14, 2019 | Pelham | AA: 4

016 Financial Statements of Nonprofit Organizations: Significant Changes are Happening May 17, 2019 | Montgomery | AA: 4

003 Surgent’s S Corporation, Partnership, and LLC Tax Update May 14, 2019 | Pelham | Tax: 4 004 2019 Compilation and Review Update for the Local Firm May 14, 2019 | Pelham | AA: 4 005 The Complete Guide to Section 199A’s 20% Pass-Through Deduction After IRS Guidance May 15, 2019 | Pelham | Tax: 4 006 The New Revenue Standard: Speaking a Different Language of Revenue May 15, 2019 | Pelham | AA: 4 007 Surgent’s Mastering Basis Issues for S Corporations, Partnerships, and LLCs May 15, 2019 | Pelham | Tax: 4 008 The New Leasing Standard: It’s Here and It’s Huge May 15, 2019 | Pelham | AA: 4 009 Surgent’s Individual Income Tax Update May 16, 2019 | Montgomery | Tax: 4 010 2019 A&A Update for the Real World May 16, 2019 | Montgomery | AA: 4 011 Surgent’s S Corporation, Partnership, and LLC Tax Update May 16, 2019 | Montgomery | Tax: 4 012 2019 Compilation and Review Update for the Local Firm May 16, 2019 | Montgomery | AA: 4 013 The Complete Guide to Section 199A’s 20% Pass-Through Deduction After IRS Guidance May 17, 2019 | Montgomery | Tax: 4 014 The New Revenue Standard: Speaking a Different Language of Revenue May 17, 2019 | Montgomery | AA: 4

029 Examining the New Lease Accounting Standard: More than Meets the Eye June 19, 2019 | Gulf Shores | AA: 4 030 ASU No. 2016-14: Not-for-Profit Financial Reporting June 20, 2019 | Gulf Shores | AA: 4

017 ASCPA Employee Benefits Workshop May 23, 2019 | Montgomery | AA: 8

031 Developing Your Digital Mindset June 20, 2019 | Gulf Shores | Other: 4 032 Maximizing Your Social Security Benefits June 20, 2019 | Gulf Shores | Tax: 4

018 Current Issues in Accounting & Auditing: An Annual Update June 18, 2019 | Gulf Shores | AA: 4

033 Change the Way You Work: Success as a Virtual CFO June 20, 2019 | Gulf Shores | Other: 4

019 The Complete Guide to Section 199A’s 20% Pass-Through Deduction After IRS Guidance June 18, 2019 | Gulf Shores| Tax: 4 020 Annual FASB Update and Review June 18, 2019 | Gulf Shores | AA: 4 021 Guide and Update to Compilations, Reviews, and Preparations June 18, 2019 | Gulf Shores | AA: 4 022 Gaining a Competitive Advantage: Critical Skills for CFOs and Controllers June 18, 2019 | Gulf Shores | Other: 4 023 The Essential Multistate Tax Update June 18, 2019 | Gulf Shores | Tax: 4 024 Surgent’s Individual Income Tax Update June 19, 2019 | Gulf Shores | Tax: 4 025 Controller’s Update: Today’s Latest Trends June 19, 2019 | Gulf Shores | Other: 4 026 Guide to the Topic 606 Revenue Recognition Model for all CPAs June 19, 2019 | Gulf Shores | AA: 4 027 Surgent’s S Corporation, Partnership, and LLC Tax Update June 19, 2019 | Gulf Shores | Tax: 4 028 Lean Accounting and Management: Saving Money by Streamlining Operations June 19, 2019 | Gulf Shores | Other: 4

045 Surgent’s Federal Tax Camp August 19, 2019 | Pelham | Tax: 8 046 The Complete Guide to Section 199A’s 20% Pass-Through Deduction After IRS Guidance August 19, 2019 | Dothan | Tax: 4 047 Interpreting the New Revenue Recognition Standard: What All CPAs Need to Know August 19, 2019 | Dothan | AA: 4 048 Surgent’s Individual Income Tax Update August 20, 2019 | Dothan | Tax: 4 049 Accounting and Auditing Update August 20, 2019 | Dothan | AA: 4 050 Surgent’s Mastering Basis Issues for S Corporations, Partnerships, and LLCs August 20, 2019 | Tuscaloosa | Tax: 4 051 2019 A&A Update for the Real World August 20, 2019 | Tuscaloosa | AA: 4 052 K2’s Accounting Solutions Shootout for Small and Mid-Sized Businesses August 20, 2019 | Pelham | AA: 8 053 Surgent’s Individual and FinancialPlanning Tax Camp August 20, 2019 | Pelham | Tax: 8 054 Advanced Concepts in SSARS and Nonattest Services: Are You Certain You are in Compliance August 20, 2019 | Pelham | AA: 8 055 The Value-Added Controller August 20, 2019 | Montgomery | Other: 8 056 The Complete Guide to Section 199A’s 20% Pass-Through Deduction After IRS Guidance August 20, 2019 | Tuscaloosa | Tax: 4 057 Surgent’s S Corporation, Partnership, and LLC Tax Update August 20, 2019 | Dothan | Tax: 4 058 Preparation, Compilation, and Review Engagements: Update and Review August 20, 2019 | Dothan | AA: 4

G O TO WWW.ASCPA.ORG FOR NEW CLASSES AND MOST CURRENT INFORMATION. 96

ASCPA Connections

GENERAL CPE SCHEDULE 059 2019 Compilation and Review Update for the Local Firm August 20, 2019 | Tuscaloosa | AA: 4

072 Governmental A&A and Yellow Book Update August 22, 2019 | Pelham | AA: 8

060 Surgent’s Individual Income Tax Update August 21, 2019 | Tuscaloosa | Tax: 4 061 What You Need to Know About the Revenue Recognition and Leasing Standards August 21, 2019 | Tuscaloosa | AA: 4

073 Practical Planning Boot Camp: S Corporations & LLCs August 22, 2019 | Montgomery | Tax: 8 074 Analytics and Big Data for Accountants August 23, 2019 | Montgomery | Other: 8 075 Revenue Recognition, Leases, and Financial Instruments: The FASB’s “Big Three” New Standards August 23, 2019 | Pelham | AA: 8

062 ASCPA’s Community Banking Update August 21, 2019 | Pelham | AA: 8 063 The Eight Hour MBA August 21, 2019 | Montgomery | Other: 8 064 Partnership and LLC Core Tax Issues from Formation Through Liquidation August 21, 2019 | Pelham | Tax: 8 065 Surgent’s Federal Tax Camp August 21, 2019 | Montgomery | Tax: 8 066 Accounting, Audit, and Attest Update for Practitioners with SmallBusiness Clients August 21, 2019 | Pelham | AA: 8 067 Surgent’s S Corporation, Partnership, and LLC Tax Update August 21, 2019 | Tuscaloosa | Tax: 4 068 Financial Statements of Nonprofit Organizations: Significant Changes are Happening August 21, 2019 | Tuscaloosa | AA: 4 069 Advanced Audits of 401(k) Plans: Best Practices and Current Developments August 22, 2019 | Pelham | AA: 8 070 Construction Contractor’s Advanced Issues August 22, 2019 | Montgomery | AA: 6, Tax: 2 071 Fiduciary Accounting and Tax Issues of Estates and Trusts August 22, 2019 | Pelham | AA: 4, Tax: 4

086 The Complete Guide to Section 199A’s 20% Pass-Through Deduction After IRS Guidance August 26, 2019 | Auburn | Tax: 4 087 2019 Compilation and Review Update for the Local Firm August 26, 2019 | Auburn | AA: 4 088 Surgent’s Individual Income Tax Update August 27, 2019 | Auburn | Tax: 4 089 What You Need to Know About the Revenue Recognition and Leasing Standards August 27, 2019 | Auburn | AA: 4

076 Employer’s Handbook: Legal, Tax, and Healthcare Issues August 23, 2019 | Montgomery: Other: 5, Tax: 3 077 Not for Profit A&A Update August 23, 2019 | Pelham | AA: 8

090 Federal Business Income Tax Update August 27, 2019 | Mobile | Tax: 8 091 Annual Update and Practice Issues for Preparation, Compilation, and Review Engagements August 27, 2019 | Huntsville | AA: 8

078 Sales and Use Tax Workshop August 23, 2019 | Pelham | Tax: 8

092 Basis Calculations & Distributions for Pass-Thru Entity Owners Schedule K-1 Analysis August 27, 2019 | Huntsville | Tax: 8

079 Agricultural and Farm Activities: Special Rules and New Rules August 26, 2019 | Auburn | Tax: 4 080 2019 A&A Update for the Real World August 26, 2019 | Auburn | AA: 4

093 Internal Control Development That Balances Risk with Strategy August 27, 2019 | Montgomery | AA: 8

081 Governmental and Not for Profit A&A Update August 26, 2019 | Mobile | AA: 8

094 Governmental A&A and Yellow Book Update August 27, 2019 | Montgomery | AA: 8

095 K2’s Small Business Internal Controls, Security, and Fraud Prevention and Detection August 27, 2019 | Mobile | AA: 8 096 Surgent’s S Corporation, Partnership, and LLC Tax Update August 27, 2019 | Auburn | Tax: 4 097 Financial Statements of Nonprofit Organizations: Significant Changes are Happening August 27, 2019 | Auburn | AA: 4 098 K2’s Advanced Excel August 28, 2019 | Huntsville | AA: 4, Other:4

099 K2’s Business Intelligence, Featuring Microsoft’s Power BI Tools August 28, 2019 | Mobile | Other: 8 100 2019 Compilation and Review Update for the Local Firm August 28, 2019 | Mobile | AA: 8 101 Securing a Comfortable Retirement in the Age of Spending August 28, 2019 | Montgomery | Other: 4, Tax: 4 102 Not for Profit A&A Update August 28, 2019 | Montgomery | AA: 8 103 Fraud Update: Detecting and Preventing the Top Ten Fraud Schemes August 28, 2019 | Huntsville | AA: 8 104 Buying and Selling a Business: Critical Tax and Structuring Issues August 29, 2019 | Montgomery | Tax: 8 105 K2’s Budgeting and Forecasting Tools and Techniques August 29, 2019 | Huntsville | AA: 4, Other: 4 106 Governmental and Not for Profit A&A Update August 29, 2019 | Huntsville | AA: 8 107 2019 A&A Update for the Real World August 29, 2019 | Mobile | AA: 8 108 Controller’s Update: Today’s Latest Trends August 29, 2019 | Mobile | Other: 8 109 Becoming an AICPA Peer Review Team or Review Captain: Case Study Application September 12, 2019 | Montgomery | AA: 8 110 GASB Update September 17, 2019 | Huntsville | AA: 4 111 Ethics & Professional Conduct: Updates and Practical Applications September 17, 2019 | Pelham | AA: 4 112 Controller’s Update: Today’s Latest Trends September 17, 2019 | Pelham | Other: 4

G O TO WWW.ASCPA.ORG FOR NEW CLASSES AND MOST CURRENT INFORMATION.

January/February

GENERAL CPE SCHEDULE 113 Securing a Comfortable Retirement in the Age of Spending September 17, 2019 | Huntsville | Tax: 4 114 IRS Tax Examinations and Hot Issues September 17, 2019 | Pelham | Tax: 4 115 What You Need to Know About the Changes to Yellow Book and Uniform Guidance Update September 17, 2019 | Huntsville | AA: 4 116 Lean Accounting and Management: Saving Money by Streamlining Operations September 17, 2019 | Pelham | Other: 4 117 Financial Reporting for Not-forProfit Entities September 17, 2019 | Pelham | AA: 4 118 Tax, Financial, and Estate Planning Strategies Under the Trump Administration September 17, 2019 | Montgomery | Tax: 8 119 Key Partnership and S Corporation Tax Planning Strategies September 17, 2019 | Huntsville | Tax: 4 120 S Corporation Taxation: Advanced Issues September 17, 2019 | Pelham | Tax: 4 121 K2’s Excel Financial Reporting and Analysis September 18, 2019 | Montgomery | AA: 8 122 Federal Income Taxation of Estates and Trusts Update September 18, 2019 | Montgomery | Tax: 8 123 A&A for Tax People Who Hate A&A September 18, 2019 | Huntsville | AA: 4 124 Developing Your Digital Mindset September 18, 2019 | Pelham | Other: 4 125 Select Estate and Life Planning Issues for the Middle-Income Client September 18, 2019 | Huntsville | Tax: 4

126 Compliance Testing for Single Audits September 18, 2019 | Pelham | AA: 4 127 Critical Issues Involving Taxation of Construction Contractors September 18, 2019 | Pelham | Tax: 4 128 Change the Way You Work: Success as a Virtual CFO September 18, 2019 | Pelham | Other: 4 129 2019 Compilation and Review Update for the Local Firm September 18, 2019 | Huntsville | AA: 4 130 Maximizing Your Social Security Benefits September 18, 2019 | Huntsville | Tax: 4 131 GASB Update September 18, 2019 | Pelham | AA: 4 132 Four Tiers of Loss Limitations: A guide to the New Rules for PassThrough Entities September 18, 2019 | Pelham | Tax: 4 133 The Complete Guide to Section 199A’s 20% Pass-Through Deduction After IRS Guidance September 19, 2019 | Huntsville | Tax: 4 134 Introduction to Blockchain September 19, 2019 | Pelham | Other: 4 135 Financial Reporting for Not-forProfit Entities September 19, 2019 | Huntsville | AA: 4 136 K2’s Securing Your Data September 19, 2019 | Montgomery | Other: 4 137 A&A for Tax People Who Hate A&A September 19, 2019 | Pelham | AA: 4 138 Surgent’s Top Five Tax Topics This Year September 19, 2019 | Pelham | Tax: 4 139 Limited Liability Companies: Losses, Liquidations, Terminations, Continuations, and Sales September 19, 2019 | Huntsville | Tax: 4

140 Cybersecurity Risk Fundamentals Risk Fundamentals September 19, 2019 | Pelham | Other: 4 141 Audit Workpapers: Documenting Field Work September 19, 2019 | Huntsville | AA: 4 142 K2’s Emerging Technologies for Accountants, Including Blockchain and Cryptocurrency September 19, 2019 | Montgomery | Other: 4

143 2019 Compilation and Review Update for the Local Firm September 19, 2019 | Pelham | AA: 4

158 This Year’s Top Tax and FinancialPlanning Ideas September 24, 2019 | Mobile | Tax: 4

144 Real Estate Taxation: Critical Consideration September 19, 2019 | Pelham | Tax: 4 145 The Bottom Line on the New Lease Accounting Requirements September 20, 2019 | Huntsville | AA: 4

159 Nontraditional Services and Other Methods of Making a Living September 24, 2019 | Mobile | AA: 4

146 Controller’s Update: Today’s Latest Trends September 20, 2019 | Huntsville | Other: 4

160 The Top Five Tax Issues in Dealing with LLCs and Partnerships September 24, 2019 | Mobile | Tax: 4 161 The Complete Guide to Section 199A’s 20% Pass-Through Deduction After IRS Guidance September 25, 2019 | Mobile | Tax: 4

147 K2’s Testing and Auditing Excel Workbooks September 20, 2019 | Pelham | AA: 4

162 The New Revenue Standard: Speaking a Different Language of Revenue September 25, 2019 | Mobile | AA: 4

148 The New Revenue Standard: Speaking a Different Language of Revenue September 20, 2019 | Pelham | AA: 4

163 The New Leasing Standard: It’s Here and It’s Huge September 25, 2019 | Mobile | AA: 4

164 Select Estate and Life Planning Issues for the Middle-Income Client September 25, 2019 | Mobile | Tax: 4 165 Risk, Cost and Cash Management for Controllers and Financial Managers September 26, 2019 | Mobile | Other: 4 166 Financial Statements of Nonprofit Organizations: Significant Changes are Happening September 26, 2019 | Mobile | AA: 4 167 Financial Forecasting: Planning for Success September 26, 2019 | Mobile | Other: 4

G O TO WWW.ASCPA.ORG FOR NEW CLASSES AND MOST CURRENT INFORMATION. 98

ASCPA Connections

GENERAL CPE SCHEDULE

168 Small Business Fraud: The Lessons behind the Stories September 26, 2019 | Mobile | AA: 4

Technical Learning Accounting Accounting (Governmental) DEVELOP Auditing YOUR BEST TEAM. Auditing (Governmental) Business Law Economics GOOD STAFF TRAINING ISN’T BORING. Finance Information Technology Management Services Regulatory Ethics Specialized Knowledge

LS104 Buying and Selling a Business: Critical Tax and Structuring Issues August 29, 2019 | Montgomery | Tax: 8

169 The Best Federal Tax Update Course by Surgent January 9, 2020 | Pelham | Tax: 8 LS010 2019 A&A Update for the Real World May 16, 2019 | Live Stream | AA: 4

LS118 Tax, Financial, and Estate Planning Strategies Under the Trump Administration September 17, 2019 | Live Stream | Tax: 8 LS121 K2’s Excel Financial Reporting and Analysis September 18, 2019 | Live Stream | AA: 8

LS012 2019 Compilation and Review Update for the Local Firm May 16, 2019 | Live Stream | AA: 4 LS013 The Complete Guide to Section 199A’s 20% Pass-Through Deduction After IRS Guidance May 17, 2019 | Live Stream | Tax: 4 LS015 Agricultural and Farm Activities: Special Rules and New Rules May 17, 2019 | Montgomery | Tax: 4 LS017 ASCPA Employee Benefits Workshop May 23, 2019 | Live Stream | AA: 8

LS150 Governmental A&A Update September 19, 2019 | Live Stream | AA: 4

LS156 Not for Profit A&A Update September 19, 2019 | Live Stream | AA: 4

Every course in the Business Learning Institute Course Catalog can be customized for your organization and brought on-site to your office. BLI instructors are known for their expert knowledge (each teaches his or her own curriculum), and also for their engaging and collaborative teaching styles and methodology. BLI is the future of learning.

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Culotta Scroggins - Third Page.pdf 1 12/31/2018 11:13:31 AM

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CMY

G O TO WWW.ASCPA.ORG FOR NEW CLASSES AND MOST CURRENT INFORMATION.

January/February

a desk CLASSIFIEDS

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Congratulations to the Alabama Society of Certified Public Accountants on your Centennial Anniversary!

From your friends,

100

ASCPA Connections

YOUR LIFE IS COMPLICATED... SO WE SIMPLIFIED THINGS!

Our new website makes it easier than ever to access your membership profile, register for classes, and see the latest news from the Alabama Society of CPAs. Go to www.ascpa.org to give it a try and see for yourself. And for answers to all of your professional questions, be sure to visit the ASCPA Connect Community under the “Connect” menu at the top of every webpage.

EDUCATE | PROTECT | CONNECT + more on the new www.ascpa.org

ASCPA Mission Statement The Alabama Society of Certified Public Accountants leadership and staff will continue:

ENHANCING ALABAMAâ&#x20AC;&#x2122;S ACCOUNTING PROFESSION THROUGH ADVOCACY, EDUCATION, & MEMBER ENGAGEMENT. Thank you for supporting this great profession by joining the ASCPA in these efforts.

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Presort Std US Postage PAID Permit No 131 Montgomery, AL

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