AZ CPA May 2018

AZ CPA May 2018

Transcending Work-Life Balance Into Living Well New ASCPA Board of Directors

The CFO as Chief Risk Manager Excellence in Teaching Award Recipient Heather A. Altman, CPA

The Arizona Society of Certified Public Accountants y www.ascpa.com

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AZ CPA MAY 2018

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MAY 2018 AZ CPA

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AZ CPA The Arizona Society of Certified Public Accountants President & CEO

ASCPA Annual Meeting & Awards Luncheon

May 16, 2018 at the Arizona Biltmore Be sure to register for the ASCPA Annual Meeting where we will hear from guest speaker Kimberly Ellison-Taylor, past chair of the AICPA.

We will also honor our newest Life Member Layne Reid Simmons, CPA, a partner with Jaffa Simmons PLC and past chair of the ASCPA and the Arizona State Board of Accountancy.

Editor Advertising

Cindie Hubiak Patricia Gannon Heidi Frei

Board of Directors Chair Mike Allen Chair-Elect Jared Van Arsdale Secretary/Treasurer Ginny DeSanto Directors

Rachael Bertrandt

Tom Duensing

Paul Evans

Kristen French

Alan Gold

Aaron Grant

Tim Hansen

Vanessa Makridis

Karen McCloskey

Alice Pope Sami Raynes-Houseknecht

Nikki Vogt Immediate Past Chair

Molly Montgomery AICPA Council Members

Chapter Presidents Southern Chapter

Rob Dubberly Greg Nelson Cathy Kinzer

Northern Chapter James Shankland Southwest Chapter Helen Greenwell North-Central Chapter Ellen Carpenter

Heather A. Altman, CPA, with the University of Arizona, will receive the 2018 Excellence in Teaching Award.

Thank You to Our Preferred Provider Sponsors: CPACharge, Enterprise Bank & Trust, and Paychex and our Gold Sponsor: Headfarmer.

Register at www.ascpa.com 4

AZ CPA MAY 2018

AZ CPA is published by the Arizona Society of Certified Public Accountants (ASCPA) to provide information, news and trends to the accounting profession. It is distributed 10 times a year as a regular service to ASCPA members. The ASCPA, its members, board of directors and administrative staff assume no responsibility for advertisements herein. The ASCPA and the above people also assume no liability for business decisions made by readers in reference to statements and/or claims in articles or advertisements within this publication. Opinions expressed by contributors are not necessarily those of the ASCPA. Arizona Society of CPAs 4801 E. Washington St., Suite 180 Phoenix, AZ 85034-2040 Telephone (602) 252-4144 AZ Toll-Free (888) 237-0700 www.ascpa.com

Volume 34 Number 4

AZ CPA

MAY 2018

Features

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Meet Your 2018-19 ASCPA Board of Directors See who is representing you on the Arizona Society of CPAs Board of Directors.

Altman to be Honored with 2018 Excellence in Teaching Award

Heather A. Altman, CPA, from the University of Arizona reflects on what it means to be a professor of accounting.

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Transcending Work-Life Balance Into Living Well

16

The CFO as Chief Risk Manager

Does work-life balance now have a negative connotation? Examine what living a better and more meaningful life means to you.

by James Sean McGettigan, CPA

Columns & Departments Chair’s Message by Michael T. Allen, CPA

6

Member News

7

A Dash of SALT by James G. Busby, Jr., CPA

11

Quick Quiz

21

by Paul L. Walker, Ph.D., and Mark L. Frigo, CGMA, Ph.D.

Classifieds 22

18 Arizona Society of Certified Public Accountants 4801 E. Washington St., Suite 180 Phoenix, Arizona 85034-2040 www.ascpa.com

CFOs can play a critical role in helping organizations proactively manage disruptions and create value.

Take Advantage of Your ASCPA Membership

We asked your colleagues to share how they take advantage of their ASCPA membership.

MAY 2018 AZ CPA

5

ASCPA Chair’s Message

Staying Out of the Cactus I never really liked math. I pursued my CPA certificate as an opportunity to operate my own business and be my own boss. I believe that, whatever other skills any of us may possess, being able to understand how an organization operates from the inside out provides a tremendous advantage. Only one avenue of training and certification provides this level of expertise, depth of knowledge, and business acumen: the CPA certificate.

by Michael T. Allen, CPA As CPAs, one of our greatest gifts is that we learn from our past experiences and apply these lessons to our future activities.

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AZ CPA MAY 2018

I also consider myself an avid hiker, and my physical health plays an important role in my life. I spend much of my time on the weekends experiencing the many urban hikes available in our community. After recently moving near the McDowell Mountains, I have seen what can be accomplished through the vision of leadership to create a preserve such as this. The McDowell Sonoran Preserve is a spectacular treasure we can all enjoy.

I constantly challenge myself to complete a hike faster or go farther to a view I’ve not yet experienced. The time I spend in these amazing natural places allows me to think about all that we can accomplish if we set our minds to it.

I’m excited and eager to serve as chair of the ASCPA in the upcoming year.

There is much we can accomplish, and through the efforts of our incredible staff, the leadership of Cindie Hubiak and the active participation of our board and our members, I am looking forward to a highly productive year and building on all that Molly Montgomery has accomplished during her year as chair. (Great job, Molly!)

Our board members bring unique insights and approaches to solving problems based on their varied experiences. They serve in a multitude of community and business leadership roles and as a group are committed to those activities that advance our great state.

There is no better collection of individuals attuned to the needs of Arizona and the organizations we serve than the ASCPA membership. I had the opportunity to recently meet with Governor Ducey, and I encouraged him to consider taking full advantage of our capabilities. Where else can you find a group of individuals who have more skills, knowledge and expertise in those matters that so greatly impact Arizona than the ASCPA? We are like the Angie’s list for business! If you have a need, just ask — we have the professionals who can help.

Recently, I’ve been running down the mountain as a part of my hikes. (I never said I was smart.) The exhilaration that comes from the physical exertion can give you a sense of accomplishment. It can also hurt, as I found out on one of my hikes when I met up with a Cholla cactus.

As CPAs, one of our greatest gifts is that we learn from our past experiences and apply these lessons to our future activities. We are just wired for continual learning. I hope to learn from my experiences, slow down a little, enjoy the year ahead and stay out of the cactus. n

Member News

(L to R:) Ryan Littleton, James McGettigan, Michael Hawthorne, Andrea Levy, Aaron Grant, Quynh Le, Scott Wallace, Laura Leopardi, Ira Feldman, Jennifer Mansfield, Samantha Mahlen, Kent Utter, Kate Franklin, Marissa Graves and Jo-Ann Humphrey.

We are the Champions!

Thank you to our members who volunteered to be ASCPA Champions! They completed a training session earlier this year and earned their capes and masks. ASCPA Champions will encourage CPAs to become members and engage in ASCPA events and programs. We appreciate our Champions and all of our members who share the value of the ASCPA with others.

If you are interested in learning about the program and becoming a future champion, please contact Heidi Frei at hfrei@ascpa.com or (602) 324-4743.

John J. Chichester, Jr. CPA, PFS, CFP®, AIF®, completed the sale of Chichester Financial Group LLC to TrustBank and has joined their team as senior wealth strategist.

Shawn M. Werner, CPA, joins ProVision, PLC as a senior tax manager.

Daniel Foley, CPA, joined REDW in Phoenix as a tax manager.

Wallace, Plese + Dreher (WP+D) promoted Scott M. Bromley, CPA, to tax senior manager.

In Memoriam Walter A. Bednarik, CPA, of Secore & Niedzialek, P.C. Rob Leslie, CPA, a well-respected member of the ASCPA, served on the ASCPA Not-for-Profit Committee for many years, and was a frequent CPE instructor for the Society.

Jay J. Senkerik, CPA, of BeachFleischman PC in Tucson. Senkerik served on the ASCPA Nominating Committee.

MAY 2018 AZ CPA

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Meet Your 2018-19 ASCPA Board of Directors Executive Committee Members

Mike Allen ASCPA Chair Principal, REDW LLC

Jared Van Arsdale Chair-Elect Ullmann & Company, P.C.

Molly Montgomery Immediate Past Chair Owner, Founder’s Haven

Tom Duensing Director 2017-2019 Assistant City Manager, City of Glendale

Rachael Bertrandt Director 2018-2020 VP & Controller, Insight Enterprises

Paul Evans Director 2018-2020 VP & Corporate Controller, IMH Financial Corp.

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AZ CPA MAY 2018

Ginny DeSanto Secretary/Treasurer VP & CFO, ASU Enterprise Partners

Kristen French Director 2017-2019 Shareholder, Upworth, PLLC

Alan Gold Director 2017-2019 Managing Partner, MGKS, Inc.

Aaron Grant Director 2017-2019 Supervisor, CD Arevon USA, LLC

Tim Hansen Director 2018-2020 Shareholder, Nordstrom & Associates

Vanessa Makridis Director 2018-2020 Equity Methods

Karen McCloskey Director 2018-2020 Partner, BeachFleischman PC

Alice Pope Director 2017-2019 Senior VP & CFO, HonorHealth

Sami Raynes-Houseknecht Director 2018-2020 Specialist, Walker & Armstrong, LLP

Nikki Vogt Director 2017-2019 Partner, Deloitte & Touche LLP

AICPA Council Member Rob Dubberly Partner, KPMG LLP

AICPA Council Member Greg Nelson Principal, Nelson Consulting, PLLC

MAY 2018 AZ CPA

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AZ CPA MAY 2018

A Dash of SALT

Will Arizona’s Legislature Clarify the Taxation of Digital Goods and Services?

In this month’s state and local tax (SALT) column, Busby addresses the status of Arizona’s efforts to clarify the application of the state’s sales tax to digital goods and services. The author helped draft this proposed legislation.

The Arizona Joint Legislative Ad Hoc Study Committee on the Taxation of Digital Goods and Services completed its work and issued its recommendations in December.

by James G. Busby, Jr., CPA

Legislation Introduced With broad support from the state’s business community, key lawmakers introduced legislation to clarify the application of Arizona’s sales tax to digital goods and services in January.

House Ways & Means Chair, Michelle Ugenti-Rita (R), and Senate Finance Committee Chair, David Farnsworth (R) co-chaired the committee and dropped companion bills in their respective chambers that would update Arizona’s tax statutes to address and stimulate this burgeoning area of our economy.

Ugenti-Rita stressed the need for clarity and the importance of alleviating administrative burdens in order to “foster continued growth in Arizona’s technology economy.” Arguing that “Arizona’s tax statutes have not kept pace” with our digital economy, Farnsworth emphasized that “we need to ensure that Arizona has a modern tax environment that is predictable, transparent and fair for all taxpayers.”

Senate President Steve Yarbrough (R) indicated his commitment to working with the Governor, the House and his fellow Senators to pass legislation on this important issue. And business-friendly Gov. Doug Ducey (R) is likely to sign the legislation, which would promote the growth of the digital economy, if it makes it to his desk.

Key Provisions

James G. Busby, Jr., CPA, is a state and local tax attorney at The Cavanagh Law Firm. Busby previously worked in the SALT departments at Arthur Andersen and Deloitte & Touche. Before entering private practice, Busby was in charge of all transaction privilege (sales) tax audits at the Arizona Department of Revenue.

If you have any questions, please contact the author. He can be reached at (602) 322-4146 or JBusby@CavanaghLaw.com.

While the bills still could be amended and may not even pass, if approved in their current form, they would: • define “prewritten computer software” and permit the Department of Revenue and the cities to impose retail sales taxes on proceeds from prewritten computer software regardless of delivery method; • define and prohibit DOR and the cities from taxing proceeds from “specified digital services,” including software as a service, platform as a service, infrastructure as a service, application service providers, hosting services, data storage management, data processing and information services, streaming services, digital authentication services, and any other cloud-based or other remotely accessed computing services; • define “specified digital goods” to include digital audio-visual works, digital audio works and digital books; • permit DOR and the cities to tax proceeds from sales of “specified digital goods” such as retail sales when they are transferred in whole to a customer; • prohibit DOR and the cities from taxing proceeds from “specified digital

MAY 2018 AZ CPA

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Hit the Mark — Be the Advisor of Choice!

goods” when they are merely streamed or accessed remotely rather than transferred in whole;

Will the Legislation Pass?

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Learn more at www.ascpa.com/fpc2018

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AZ CPA MAY 2018

The Arizona House of Representatives approved HB 2479 via a wide margin on February 28. Then, on March 1, minutes before the Senate was scheduled to vote on its version of this legislation, SB 1392, the Joint Legislative Budget Committee released a fiscal note. Because some Senators who were expected to vote in favor of the legislation were concerned by the fiscal note — which suggested that this bill would result in a significant loss to the state general fund — Senate leaders postponed the vote.

Since then, the data and assumptions utilized to develop the fiscal note have been questioned. If the fiscal note is withdrawn or revised downward, then this legislation is likely to pass. Otherwise, it is not likely to pass. By the time this column is published, we should know the status of this legislation. n

Altman to be Honored with 2018 Excellence in Teaching Award Heather A. Altman, CPA, with the University of Arizona has been selected as the 2018 Excellence in Teaching Award recipient. She will be honored at the ASCPA Annual Meeting & Awards luncheon on May 16. She is a full-time lecturer that teaches Managerial Accounting and Survey of Accounting courses. Prior to teaching, Altman worked as an auditor at Heinfeld, Meech & Co., PC. During her tenure as a teacher, she has received the Judi Prize, an Undergraduate Course Improvement Grant in Innovation and the Philip A. Blanchard Teaching Award. She also served on the Advisory Board of Eller Social Innovation.

What made you switch from an Auditing and Accounting practice to education?

I taught my first class the summer after I graduated with my master’s degree and completely loved it. I hadn’t thought much about teaching before that experience, and during that summer I realized that teaching at the college level was something I really wanted to do eventually. While working in public accounting, I was involved with our firm’s internship and externship programs and was consistently on campus for recruiting events. I was also involved with new staff training, and I realized that teaching was a true passion of mine. When the opportunity came for me to start teaching part-time, I embraced it, and now I feel very fortunate to interact with students on a daily basis.

How are you incorporating technology in the classroom?

In my opinion, it is still very important to teach introductory accounting topics with a pencil and paper approach.

Even though we rely on technology in the workplace, accountants still need to know how to quickly jot down a journal entry or draw up a t-account. Though I stress the importance of this in class, we still use “clickers” for students to respond to polling questions, and I have created practice problem solution videos and online homework assignments that they work with outside of class. In my online courses, I’ve developed voice over PowerPoint lectures and have embedded them with Learning Glass videos which feature me walking through examples or reviewing formulas that were discussed in the lecture.

Is mentoring important to you? And what have you learned from being a mentor?

Mentoring is extremely important to me. I am where I am today because of relationships that I’ve formed with my mentors, and I am hoping that I have that same impact on some of my students. When I was working in public accounting, I found myself mentoring the interns and externs and tried to help them figure out their career path. Now, in my role as a faculty member, I have several accounting students that I mentor and meet with throughout their time as an upper division accounting student. I’ve found that many of the students I mentor can relate to experiences I’ve had in school, preparing for the CPA exam, and seeking internships and full-time employment. Sharing my experiences with students has helped calm their stress or uneasiness as they are going through the process.

What is your impression of today’s accounting students?

Today’s accounting students are smart, driven and getting involved in real-life work experiences earlier and earlier.

Many students are starting to extern or intern after their sophomore year; it’s great to see them getting so involved in the profession so early on. They are also passionate about giving back and volunteering, and an increasing number are looking to get involved in the nonprofit sector.

What do you like to do in your spare time?

In my spare time I enjoy spending time with my family and friends, traveling, reading and cheering on my favorite sports teams. Bear Down! n

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New Federal Tax Law Creates Huge Opportunity for S-Corps & Many LLCs Arizona State Tax Credits can help S-Corps, and LLCs that file as an S-Corp, reduce their Federal Tax burden for 2018! The deadline of June 30th is fast approaching. Contact IBE’s Corporate Program Coordinator, Wendi Hauser, at 520-512-5438 or wendi@ibescholarships.org Notice (A.R.S 43-1603): A school tuition organization cannot award, restrict, or reserve scholarships based solely on a donor’s recommendation. A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer’s own dependent.

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AZ CPA MAY 2018

Transcending Work-Life Balance Into Living Well

by James Sean McGettigan, CPA/PFS, CFP, CGMA Recently, while at a recruiting prep meeting at our firm, we began to talk about work-life balance. The conversation started to shift. A participant mentioned that the term work-life balance feels forced and represented mixed feelings, yielding more negative than positive ones. This unsurprisingly led the room to silence with the inevitably long pause. As good facilitators know, silence is used as an advantage to engage thought and emphasis. This comment was definitely thought-provoking: Is work-life balance forcing a conversation similar to that of a performance review and constructive feedback?

The Harvard Business Review published a piece by Rebecca Zucker, “Help Your Team Achieve Work-Life Balance – Even When You Can’t.” Zucker makes references to “work-life sustainability” and that “setting and keeping boundaries has never been more challenging or more important” in the work-life balance equation. One of the key points for managers is to communicate that the organization’s success is based on a marathon, not a sprint, breaking down the bigger picture into manageable increments.

In its simplest definition, work-life balance is being present during your professional time and being present in your non-professional time and activities. What happens when the allotted “work” time invades the non-professional time and vice-versa? Stress is alive and well in those moments! What comes to your mind when thinking about work-life balance?

• • • •

Is it positive and fully engaging?

Does conflict come to mind?

Is it just another term in distant articles from HR? Is it a fluid and dynamic framework?

Each of us individually develops our own unique approach to work-life balance or the lack thereof. What if we flipped the equation and put life before work – living well, approaching work-life balance as part of your overall wellness conversation and plan: • Traditional model: Work + Life = Balance • Wellness model: Values + Purpose + Achievement = Living Well A few life hacks on developing your framework: • Invite your managers, partners, life coaches and mentors, in addition to your family, to join the conversation • Acknowledge that sometimes you will require more time for work and more time for personal, either planned or unplanned • Include flexibility into your framework for 10-, 15- or 60-minute breaks and sprinkle a play date, lunch date or workout in during your day.

The long-term sustainability of the profession depends on our short-term work to develop a personal framework for living well and work-life balance.

Whether at work or at home, engaging in positive experiences or in conflict, Dr. Shefali Tsabary sums it up best: “That’s your now, engage in it.”

Start a conversation. As part of the Emerging Leaders Committee of the ASCPA, we would love to be part of this conversation and invite you to the 2018/2019 series. n James Sean McGettigan, CPA/PFS®, CFP®, CGMA® is chair of the ASCPA Emerging Leaders Series and is also an ASCPA Champion. He is a manager at Eide Bailly LLP in Phoenix.

Be a part of the Emerging Leaders Series and attend the Series Kick-Off in August. Go to www.ascpa.com for more details.

MAY 2018 AZ CPA

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valuable one day, and it can go ‘byebye’ the next, depending on who enters a marketplace where you’re competing ... The importance of understanding the business you’re in, the competitive landscape, and where your competition might be coming from, [from] a strategic standpoint, is a lot more important now. I think CFOs need to be part of that thought process.”

THEME 2

The CFO as Chief Risk Manager Disruption is driving risks for every organization.

CFOs can play a critical role in helping organizations proactively manage them and create value.

by Paul L. Walker, Ph.D., and Mark L. Frigo, CGMA, Ph.D. The role of the CFO in managing enterprise risk and creating future value continues to evolve in this dynamic and rapidly changing environment of disruption. Our research, which we released in a report by the Financial Executives Research Foundation (FERF), The Strategic Financial Executive: Managing Enterprise Risk in a Disruptive World, describes strategies CFOs can use to manage risk and create value in today’s dynamic landscape and discusses how CFOs can incorporate strategic risk themes emphasized in the new enterprise risk management (ERM) framework by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

The research is based on extensive interviews with financial executives and other corporate stakeholders from leading companies. The takeaways in the report encompass four strategic themes: recognizing disruption, developing risk management maturity, communication and strategic thinking.

THEME 1 Recognizing Disruption, The Speed Of Change and Underlying Sources of Disruption The roles and skillsets of the financial executive must swiftly adapt. CFOs bring value to the table by, among other things, informing the board and CEO regarding matters they may not be familiar with and providing insight to nuances they may not have seen.

Fifty years ago, people managed physical assets to deliver cash flows, explained Corey West, chief accounting officer and corporate controller for Oracle. “Today, you manage intangible assets to deliver cash flow. Those intangible assets can be

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AZ CPA MAY 2018

Increasing the Enterprise’s Risk IQ and Capabilities ERM is evolving and becoming more strategic in its efforts and results. Given the efforts of COSO to highlight strategic risk dimensions, executives should expect board members to ask more strategic risk questions and be prepared to address them when asked. The ERM framework developed by COSO points out that strategic risks can be sourced as follows: Strategy and business objectives not aligning with mission, vision and values.

• The implications of the strategy chosen.

• The risk involved in executing the strategy.

Executives and board members should seek or reconfirm their knowledge related to those strategic risk dimensions. To get this right, financial executives should look to leverage their current ERM processes to determine what strategic risk help and analysis is being developed. Some advanced companies already use strategic risk analysis tools, such as workshops on strategic disruption, black swan events, and emerging trends practices.

THEME 3 Thinking and Communicating Strategically With the proper strategic thinking, noise and signals can help your organization to know where the market is heading and where to compete. Consider all the factors, such as customers, the global economy, foreign currency hedging, and contracts with escalations.

Financial executives are in a unique

position to take advantage of an integrated approach that sees changes, identifies the risks, and links them to the business model.

THEME 4 Developing Skills to Enable a Forward-Thinking Finance Organization Successful financial executives look toward future value creation. Decisions made with this risk information are aimed at better business models and future strategy. “Enterprise risk management consists of a set of forward-looking tools for senior management,” said Jeff Pratt, general manager of enterprise risk management at Microsoft.

Knowledge of accounting, finance, reporting requirements and related skills may have helped financial executives move to the top. But that knowledge is not enough to keep them successful and able to add the most value to their organizations. We recommend based on work with CFOs that they develop a professional development plan for their CFO team that incorporates strategy, strategic risk management and business model skills. Consider the profile of skills needed and access the current skillset as a starting point.

“The more senior role that you play in the organization, the more time you should spend looking forward versus looking in the rear-view mirror,” said Bob Verbeck, senior vice president of finance and corporate controller at Boeing. “It’s really about proactively determining where you are going with your responsibility and your business.”

Dealing With Disruption Financial executives can take the following steps to help recognize disruption, grapple with the speed of change, and understand the underlying sources of change: 1. Periodically rethink and redefine your real competitors. Look outside of the normal channels.

2. Get involved in the identification of signals of change facing your organization.

3. Ensure that you are looking at the

right sources of change and disruption.

4. Build a sophisticated process to identify noise and potential changes.

5 . C o n s i d e r y o u r c o m p a n y ’s c u s t o m e r s a s a k e y s o u rc e o f information, not just about current sales but about future change and potential disruption.

6. Have contingency and resiliency plans based on the size of a disruption.

7. Factor in reaction time. It is more important for some areas than others.

Identify when it is critical for your organization.

8. Survey the landscape. Look for disruptors in technologies. Look for disruptors in other industries that might indicate changes in your sector.

9. Build a method to link change and disruption to the business model and to your enterprise’s current strategy.

Boosting Risk IQ Financial executives can take the following steps to help their organizations boost their risk IQ and capabilities: 1. Check with your board to determine what information they need about each of the three strategic risk dimensions.

2. Develop a plan to address those needs.

3. Compare your current risks with the three dimensions. Do they all fall into one of the dimensions (perhaps strategic execution risk)? Adjust for any areas that have no associated plans or tools.

4. Review how strategic risk is addressed in your ERM process.

5. Know the answers to the following questions: What tools have we applied to know that our strategy is the right one? What tools have we applied to determine if we are aligned? What tools have we applied to strategic execution risk?

6. Work with the ERM team to improve the risk IQ and broader risk thinking in the organization.

7. Ensure that risk thinking is seen as part of business thinking.

8. Review the smaller recurring risks for potential surprises. Look for

a larger pattern or theme that could signal additional risks.

9. Develop tactical strategies for known risks. Take the risk beyond a map and consider the longer-term budgeting and financial implications.

10. Identify the assumptions in the risk-profile rankings.

Thinking Strategically Financial executives can take the following steps to think and communicate more strategically: 1. Ensure that identified risks are incorporated into the business units.

2. Have regular sessions to rethink derailment, opportunities, new business models, and the related risks.

3. Understand the business’s view of the risk. Engage business units. Listen to their points of view.

4. Bring in subject-matter experts, futurists and others to validate the potential business model and strategic risks.

5. Review trends in cross-functional business teams to determine their impact and opportunities.

6. Measure each dimension of strategic risk.

7. Test new strategic risks.

8. Flesh out the financial implications of major risk assumptions.

9. Track identified risks to the strategic plan.

10. Have regular sessions to focus on leveraging the risks into new business models. Do this also with your key customers. n Paul L. Walker (walkerp@stjohns.edu) is the executive director of the Center for Excellence in ERM at St. John’s University.

Mark L. Frigo (mfrigo@depaul.edu) is the director of the Center for Strategy, Execution and Valuation and Strategic Risk Management Lab at DePaul University.

This article first appeared in CGMA Magazine.

For more articles, sign up for the daily email update CGMA Advantage at http:// bit.ly/2svn2AY.

MAY 2018 AZ CPA

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Take Advantage of Your ASCPA Membership

of them, but for now, I feel like I know them and how their firms operate, and they know me. You can feel very isolated running your own practice – I’m sorry that so many others have the same issues, but it is also comforting to know you’re not alone in this.

We asked your colleagues to share how they take advantage of their ASCPA membership. Here is what they said:

Cathy Kinzer, CPA Member Since 2009

CliftonLarsonAllen LLP Southern Chapter President

Jessica Iennarella, CPA, CFE Member Since 2012 HSNO Forensic Consulting Event Attendee & Volunteer

Why would you recommend others attend ASCPA events?

Whether it is a Behind-The-Scenes field trip or a specialty

How do chapter meetings help you grow your business networking event such as the ABC event, take advantage of the or career and why would you recommend that people opportunity to meet other professionals. Practicing networkattend chapter meetings? ing in a low-risk environment and at an early stage in your Attending chapter meetings helps you make connections and stay current on tax and accounting changes. It’s also nice to connect with other CPAs in the community, while getting some CPE and lunch at the same time.

Alexandra L Miller, CPA Member Since 1990

Alexandra L Miller, CPA, P.C. ASCPA Connect Site User

career can help lessen the stress involved. While the end goal of practice may be different than when you are networking with potential clients, learning how to start a conversation and relate to other professionals is a skill that can be practiced in a multitude of settings.

Greg Patel, CPA Member Since 2006 Greg Patel, CPA PLLC Tax Committee Volunteer

How have you been able to help a client through using Connect?

What did you enjoy about participating in the Tax I’m a small practitioner who doesn’t have a huge research Committee? What did you gain from that experience?

staff at her disposal. Connect is an invaluable resource for a practitioner like me to reach out across the state for help with those issues that are just beyond my scope.

Would you recommend Connect to other members?

Absolutely! For those of us on our own, or with very small firms, it’s an excellent way to network virtually across the state. I’ve never met most of the people I connect with, but I feel like I know who they are. Someday, I hope to meet more

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While serving on the ASCPA Tax Committee, I gained valuable experience and knowledge. Being surrounded by professionals with such a great knowledge base and passion for what they do is inspiring. This experience has developed my leadership skills even further. I have benefitted from the variety of topics and problems that people present. The unusual and often complicated tax scenario provides the group the opportunity to grow as we work through them together.

The Tax Committee has also proven to be a good outlet to

learn more about other tax practices and useful software that could assist in running a more efficient CPA firm. Committee members have created an environment of analytical discussions that lead to more adept professionals. Individuals who choose to volunteer at the ASCPA will be challenged in new ways and have the chance to make great connections, both personal and professional.

Patricia Lees Bambridge, CPA, CGMA Member Since 2002 Whitehat, Inc. Advocacy

Richard E. Bingaman, CPA Member Since 2000 Richard E. Bingaman, CPA, PLLC CPE Attendee

What have you learned in an ASCPA CPE course that has helped you or your business?

By attending continuing education courses through the ASCPA that correlate with the disciplines in my practice, I have the opportunity to exchange ideas with colleagues regarding best practices, especially relating to technology in our industry. I feel the ASCPA is the optimal choice for CPE due to quality, convenience and opportunities to network with colleagues.

In your opinion, how have the ASCPA’s advocacy efforts positively influenced/affected the profession?

I have great confidence that this comprehensive team monitors, reviews and ushers the legislative process in the interest of our profession. Collectively, they are a respected force. It is through their efforts of leadership with integrity, that I can be proudly associated with my credentials and my profession.

Renew now at www.ascpa.com/renew or by calling (602) 252-4144.

Stephen J. Rodis, CPA Member Since 1993 Wallace, Plese + Dreher, LLP On-site CPE

Don’t miss out on an additional Why would you recommend on-site CPE to other organizations?

ASCPA on-site training is an excellent source for quality CPE. The course content and instructors have been vetted by the Society. You are able to customize the program so that it meets your specific needs whether it is staff related or industry specific. You have the ability to schedule the program for a time that is convenient for the firm. It is a value benefit proposition because you have the professionals in one place at the same time and location. The discussions that naturally occur are more meaningful since the focus is on the firm and its practice.

15% discount on most 2018-2019 ASCPA CPE when you renew your membership and sign up for classes on or before

May 31.

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AZ CPA Quick Quiz You’ve Read It, Now Get Credit Take this quiz online or submit this hard copy on AZ CPA content.

Receive a score of 70 percent or more and earn one hour of CPE credit in specialized knowledge. It’s that easy!

Fees: Members: $25 Nonmembers: $40 Online Access Go to www.ascpa.com/QuickQuiz to access links to all active quizzes. Purchase quiz and the quiz link and password will be emailed to you. Your results will be sent immediately after completing, and certificates are emailed within two business days.

Hard Copy Please select one answer for each question. Fill out registration/payment information below and mail or fax to the Society office. Quiz results and certificates will be emailed to the address provided on the registration form. *This quiz will be available until May 2019. Please note that users have three attempts to pass the quiz with at least a 70 percent score.

May 2018 Issue of AZ CPA* 1. In his column, what analogy does new ASCPA Chair Mike Allen use to advise members? m Don’t rock the boat m Go with the flow m Stay out of the cactus 2. Who are your AICPA Council members for Arizona? m Molly Montgomery & Layne Simmons m Rob Dubberly & Greg Nelson m Cindie Hubiak & Mike Allen 3. ASCPA member James G. Busby, Jr., CPA, helped draft the proposed legislation for Arizona sales tax on digital goods and services. m True m False 4. Which Arizona Senator argued that Arizona’s tax statutes have not kept pace with our digital economy? m David Farnsworth m Steve Yarbrough m John McCain 5. If passed, the digital services and goods bill would permit the DOR and cities to tax proceeds from sales of “specified digital goods”

such as retail sales when they are transferred in whole to a customer. m True m False 6. The ASCPA Excellence in Teaching Award recipient for 2018, Heather A. Altman, CPA, is a teacher at which school? m University of Arizona m Arizona State University m Northern Arizona University

7. James Sean McGettigan writes that the term work-life balance: m Is used to describe vacation schedules m May represent mixed feelings m Is Old School 8. In McGettigan’s article, work-life balance is defined as: m Being present during your professional time and in your non-professional time m Taking more vacations m Balancing your tasks in a timely fashion 9. What is NOT recommended when dealing with disruption in a risk management plan? m Having a contingency plan m Factoring reaction time m Looking in a rear-view mirror 10. What is one of the steps included for CFOs to think and communicate more strategically? m Relying on knowledge of tasks m Fleshing out the financial implications of major risk assumptions m Cross-training employees

Quick Quiz Registration Name: ____________________________________________________ Email:_____________________________________________________ Telephone: _________________________________________________

Payment

m Member: $25 m Nonmember: $40 Checks: Please make payable to: The Arizona Society of CPAs Credit Card:

m Visa m MasterCard m American Express

Credit Card #: _______________________________________________ Expiration Date: _____________________________________________ Name on Card. _____________________________________________ Mail to: ASCPA, 4801 E. Washington St. Suite 180, Phoenix, AZ 85034-2040; fax to (602) 324-6045 scan and send to ASCPACPE@ascpa.com.

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Classifieds Employment

Not-for-Profit Conference: The Speed of Change June 26 Black Canyon Conference Center

Available in-person or via webcast Keynotes: GuideStar: Untapping Your Fundraising Potential Cybercrime Scams, Trends and Other Financial Frauds Tax Track: • 990 Common Errors • Using Charitable Lead Trusts to Maximize the Economic Benefits of Charitable Giving • Using the 990 as a PR Tool: How to Tell Your Story • New Tax Laws: Update and Developments for Exempt Organizations Audit & Accounting: • Revenue Recognition: Does This Really Apply to My NFP? • Changes in Financial Reporting for Nonprofits (ASU 2016-14) • Implementation of ASU 2016-14 • 2017 Yellow Book Management: • Leveraging – Doing Good With Other People’s Money • Healthcare Reform Update: The Post ACA Era • Reasonable Compensation: Is it All Relative?

• Fraud, Waste & Abuse in Not-for-Profits

Thanks to Platinum Sponsor: Eide Bailly LLC Thanks to Gold Sponsors: CBIZ MHM LLC, CliftonLarsonAllen LLP and Henry+Horne

Learn more at www.ascpa.com/npc2018

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CHIEF FINANCIAL OFFICER — Food for the Hungry — The CFO provides strategic financial management leadership for the organization by working with the executive leadership to establish near and long-range financial goals, financial management strategies, and appropriate plans and policies to ensure efficient and effective financial and budgeting competencies are in place across the organization. At FH, we operate under a set of guiding principles we call “The Heartbeat,” our Values, Vision and Purpose. Together we follow God’s call responding to human suffering and graduating communities from extreme poverty. A complete job description is on our Career page: https://www.fh.org/ about/careers/. Please contact Donna Bradford, Global Recruitment Manager, at dbradford@fh.org.

SENIOR TAX ACCOUNTANT — Partridge & Associates CPAs, PLC — N-Scottsdale CPA Firm seeking experienced Senior Tax Accountant to prepare higher end business and personal returns. Requires min. 4-year degree, emphasizing in Tax/Accounting.

Preference for EA/CPA. Must have 5+ recent years preparing taxes $70,000– 95,000 (including overtime) larry@ partridgecpas.com.

TAX SENIOR/TAX MANAGER/ SENIOR TAX MANAGER — A Tempebased innovative CPA firm, specializing in strategic tax and wealth planning, tax and business consulting and tax compliance, is seeking an experienced Tax Senior to prepare high net worth entrepreneurs, individual and business tax returns and Tax Manager to review returns. Tax Senior must have bachelor’s degree in accounting, 2+ years’ experience including tax planning, compliance and preparation. Tax Manager must have 5+ year’s, including 1+ years of management experience, CPA license required. Experience working directly with clients is a plus. Employee benefit premiums 100% paid for. Email: laurie. shannon@provisionwealth.com.

Phoenix Tax Workshop Series 24 Hours of Live CPE for $375 * Added Bonus for purchasing 2018-19 Phoenix Tax Workshop Series! You will gain access to all 2018-19 recorded sessions for later viewing.

Who’s on the agenda?

Presentation topics are selected and then matched with the expertise of speakers drawn from the Advisory Committee, members of the Legislature and Arizona government.

The Phoenix Tax Workshop was established in 1961 to educate professionals in all areas of taxation—federal, state and local. We invite you to join this elite group of tax professionals at their Saturday CPE/CLE sessions (eight times per year). This series is also offered as a webcast.

What is the Advisory Committee?

The Advisory Committee is comprised of the Valley’s top legal and tax accounting professionals who have agreed to volunteer their time.

What does it cost?

The annual fee of $375 (due by the first meeting in May) includes the opportunity to earn 24 hours of CPE/CLE credit per year, which includes eight, three-hour meetings. You may attend individual meetings for $70. (Payment can be applied toward annual fee if you decide to enroll in the series). To enroll in the Phoenix Tax Workshop Series, complete the registration form below. Members of the ASCPA may also join by checking the box on their dues invoice.

Meeting dates and times The following Saturday meetings are held at the ASCPA offices in Phoenix from 9 a.m. to noon. A full breakfast is included with each meeting. You may also participate by webcast from your home or office.

What’s on the agenda?

Topics are drawn from current tax issues, court cases and current legislation on both federal and state arenas. You will have the opportunity to take part in question and answer sessions to ensure you leave with a complete understanding of the material. Updated agendas will be sent prior to each meeting and will be available in the online CPE catalog. Check periodically for updated information.

Name ___________________________________________ Company ________________________________________ Address ________________________________________ City ___________________State _____ Zip ___________ Phone __________________ Fax ____________________ Email ___________________________________________ Check all that apply: r ASCPA Member r Nonmember r CPA r Not a CPA r Attorney r Other I will be attending: r In-person r On Webcast

May 26, 2018

Jan. 19, 2019

June 16, 2018

Feb. 16, 2019

Sept. 22 2018

April 27, 2019

Oct. 20, 2018 Nov. 17, 2018

Method of Payment: r Check r VISA r MasterCard r American Express Name on Card _______________________________ Card Number ________________________________ Exp. Date ____________ Amount $ Signature of Card Holderr______________________ Please return this form and payment to: Arizona Society of CPAs 4801 E. Washington St., Ste. 180 Phoenix, AZ 85034 Fax credit card orders to: (602) 252-1511 or register online at www.ascpa.com/ptw.

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Arizona Society of CPAs 4801 E. Washington St., Suite 180 Phoenix, AZ 85034-2040

PRSRT STD U.S. Postage PAID Phoenix, Arizona Permit No. 952 ADDRESS SERVICE REQUESTED

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