FALL 2019 | VOLUME 35, NUMBER 4
Leading the Digital Workforce
PAGE 12 Florida Enacts Legislation to Advance Federal Tax Conformity Date
PAGE 17 GRC Tools: Hype or Reality?
PAGE 20 How to Create a Password Policy
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CONTENTS PRESIDENT/CEO Deborah L. Curry, CPA, CGMA EDITORIAL COMMITTEE David J. Hochsprung, CPA, chair Joel M. DiCicco, CPA Lynda M. Dennis, CPA David S. Holland, CPA Jonathan S. Ingber, CPA Michael S. Kridel, CPA Troy Y. Manning, CPA Ryan A. Myers, CPA Will Quilliam, CPA All articles submitted to Florida CPA Today are subject to technical review, Editorial Committee review, space availability, and editing requirements and restrictions. Florida CPA Today publishes letters to the editor in its Members’ Forum. For information about the guidelines, visit ficpa.org/letterstoeditor. Statements expressed herein are those of the identified authors and not necessarily those of the Florida Institute of Certified Public Accountants, Inc. (FICPA), nor should statements be considered endorsements of products, procedures or otherwise. The FICPA reserves the right to reject any editorial material or paid advertising that does not meet Florida CPA Today criteria or detracts from its ethical and professional standards. Florida CPA Today is published quarterly by the Florida Institute of Certified Public Accountants, Inc., 3800 Esplanade Way, Suite 210, Tallahassee, FL 32311. Telephone: (850) 224-2727 or (800) 342-3197. Visit our website at ficpa.org. This magazine is provided to members of the FICPA. No specific amount of your dues, either expressed or implied, is for this publication. This magazine is not available for purchase by either FICPA members or nonmembers.
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RPA: Leading the Digital Workforce
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For display advertising information, contact the FICPA Marketing Department at (850) 224-2727, Ext. 270. Š 2019 by the Florida Institute of Certified Public Accountants, Inc. All rights reserved. Reproduction in whole or part is prohibited without the express written consent of the FICPA.
COVER STORY
DEPARTMENTS
Florida Enacts Legislation to Advance Federal Tax Conformity Date and Address Other Federal Tax Reform Matters GRC Tools: Hype or Reality? ENDORSED PARTNER CONTENT
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President's Message Chair's Message News Briefs Staff Reports CPAs in the Spotlight Marketplace
How to Create a Password Policy, Protecting the Keys to your Digital Kingdom
Visit issuu.com/ficpa to access and download the digital version of Florida CPA Today. FALL 2019 | FLORIDA CPA TODAY
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PRESIDENT'S MESSAGE
The CPA Profession: Creating Viable Forces for Change While attending the AICPA's Fall Council Meeting every October, I am always reminded of the depth and breadth of our profession. Working together with the AICPA and our companion state societies, we are a formidable machine, impacting decision-making through legislation, interaction with standard setting bodies and collaboration with licensing boards. Together we create viable forces for change. At Council meetings, CEO Barry Melancon and his team share their views of the top priorities for the profession. His vision: Reimagine. Reimagine the profession as one that is continually evolving to meet the needs of those we serve, providing more value, more digitally directed services and more relevance.
DEBORAH L. CURRY CPA, CGMA
Reimagine the profession as one that is continually evolving to meet the needs of those we serve, providing more value, more digitally directed services and more relevance.
Championing change requires vision, investment and overcoming obstacles. Most importantly, we must admit the need for expediency to avoid being left behind and subjecting our profession to challenges from emerging disruptors. This can’t wait, the disruptors are rapidly adopting technology as their key resource for providing advanced services. The CPA Evolution (CPA Exam advancement) summarized below is one of many important topics discussed at Fall Council. You will hear more about it next year and I will provide updates as available. CPA Evolution: Addressing the need to prioritize the impact of technology and data science on the services CPAs offer. NASBA and the AICPA are exploring revisions to the CPA exam to include a greater concentration in these two areas, based on the following principles: • Technology disruptions such as artificial intelligence, robotics and data analytics are occurring at an exponential pace; • Performing assurance work, as well as tax and other emerging services, will require more advanced technological and analytical expertise; • The profession must continually evolve to protect the public interest. Initial licensing requirements need to include knowledge of technologies underlying the daily operations of business platforms; • Retaining the status quo view of skills needed for the profession in the past will create obsolescence. The profession must attract individuals with technological and analytical expertise, coupled with a defined core of professional accounting competencies to perform CPA services; • While current candidates in the pipeline should continue the path in process, the need for immediate action to revise future exam models should be rapid, transformational and substantive. Thank you for your devotion to the profession. As we evolve together, the future looks bright. Wishing you and yours happy holidays and a prosperous New Year!
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FLORIDA CPA TODAY | FALL 2019
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CHAIR’S MESSAGE
Advocacy, My Membership Reason Number One On Sept. 4, our firm started receiving TIP letters from clients who were being asked to submit additional information to the FL Department of Revenue (Department) by Sept. 3. Ummm — we missed the deadline — how did we not know about this additional filing request? Did all other FL CPAs know about it? How on earth were we going to comply with a filing deadline that had already passed AND meet the Sept. 16 tax filing deadline? Whether or not you handle taxes, this issue is a case-in-point of the importance of the advocacy efforts our association provides to all Florida CPAs.
ABBY DUPREE CPA
I encourage everyone to always look for the “positives” in their life and I encourage all of you to seek out one person who is not a member of the FICPA and turn them into one!
There is so much that the governmental affairs team regularly does on our behalf that many of us never even hear about. The FICPA governmental affairs team was already on top of the above issue — they were aware of the potential onslaught from members and got right to the matter of “fixing it” for everyone. They were addressing the issue before many of us were even aware of it. The result is that our team was able to secure a 60-day extension for submitting the additional information to the Department. The FICPA’s advocacy efforts on behalf of Florida CPAs is extremely important to me. I want someone looking out for potential legislation that could impact our profession. I feel confident that our governmental affairs team will protect my license. FICPA members have many benefits, but for me, the advocacy efforts are my number one reason for choosing to be a member. I have a hard time understanding why any licensed Florida CPA wouldn’t join the FICPA. I realize that all Florida CPAs benefit from the FICPA’s advocacy efforts, whether or not they are members, but if everyone chose to NOT be a member, there would be no FICPA governmental affairs team looking out for our best interest. In addition to joining the FICPA, every licensed CPA also should contribute to the Florida CPA/PAC (PAC) (unless they are prohibited). Our PAC contributions support political candidates who will watch out for our profession. If you have a relationship with a legislator, be sure to visit the FICPA website and register as a Key Person Contact (KPC). As a KPC, you may be asked to reach out to that legislator you know and request their help with impending legislation that could be good or bad for our profession. Remember the proposed sales tax on services legislation? In addition to being an FICPA member and regular PAC contributor, I believe all Florida CPAs should contribute to the FICPA Scholarship Foundation (SF). Our SF provides scholarships to 4th and 5th-year accounting students. What a wonderful way to support our profession by helping to contribute to the education of an accounting student. Your contribution may just make the difference in whether an accounting student becomes a Florida CPA some day! I always try to see the positive side of things and I see many positive reasons for being an FICPA member. I encourage everyone to always look for the “positives” in their life and I encourage all of you to seek out one person who is not a member of the FICPA and turn them into one!
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FLORIDA CPA TODAY | FALL 2019
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FALL 2019 | FLORIDA CPA TODAY
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NEWS BRIEFS
FICPA NEWS
FICPA Sailfish Chapter Cruise Raises Funds for Scholarships
hours TB by Michael A. Lampert, ESQ. The group enjoyed a festive Mexican Fiesta cocktail party generously sponsored by TD Bank. The chapter also thanks Jim and Gerry Keefe for their generous Lido sponsorship.
CRUISE WITH US: MAY 1-4, 2020
The fifth annual FICPA Sailfish Chapter Learn at Sea Cruise took place May 9-12 aboard the Royal Caribbean megaship Harmony of the Seas. The getaway included a one-day stop in sunny Nassau plus a day cruising the beautiful Caribbean waters. Net proceeds of $2,300 were donated to the FICPA Scholarship Foundation.
The funds will provide scholarships to deserving fourth and fifth-year Florida accounting students. Since inception chapter’s Learn@Sea Cruise has donated nearly $12,000 to the Foundation. Our fun group of 42 included 18 CPAs. The Chapter provided four hours of CPE, including two hours A&A by Mark Sellner, CPA, JD, LLM and two
Join us next this spring at our sixth annual Learn at Sea cruise! For details, visit ficpa.org/learnatsea. We will be sailing aboard Royal Caribbean Mariner of the Seas from May 1-4, 2020. All FICPA members, families and friends are encouraged to attend. Please contact Ellen Holoway (eholoway1964@gmail. com) Sailfish Chapter treasurer, for cabin availability. Bookings filling and deadlines quickly approaching. ELLEN HOLOWAY, Sailfish Chapter Treasurer
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FLORIDA CPA TODAY | FALL 2019
NEWS BRIEFS
FIRM NEWS
Thomas Howell Ferguson P.A. CPAs Acquires Bainbridge Firm Dowdy & Whittaker CPAs Thomas Howell Ferguson P.A. CPAs, headquartered in Tallahassee, has recently acquired the Bainbridge, Georgia firm, Dowdy & Whittaker CPAs (D&W). D&W has been providing tax and accounting services for over 30 years in the Bainbridge community. The firm has primarily focused on tax preparation, accounting, and consulting services. By joining with THF, the firm will be able to offer tax services, audit and assurance services, business consulting, merger & acquisition expertise, and disaster and emergency management services to the Bainbridge community and Southwest Georgia. D&W owners John Dowdy and Charles Whittaker will stay involved with the firm while Dennis Gallant from the THF Tallahassee office will become the Bainbridge Market Leader. All D&W team members will remain with THF and continue serving clients from the Bainbridge office.
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Leading the Digital Workforce
By Jason Chorlins and Roberto Valdez, Kauf man|Rossin
Organizations and accounting firms seek to increase productivity and reduce costly errors by replacing manual processes with automation, such as robotic process automation (RPA) solutions. As a result, bots are joining the workforce faster than ever, and today’s CPAs are increasingly expected to understand and evaluate the costs and benefits of adopting RPA. BENEFITS OF ROBOTIC PROCESS AUTOMATION
RPA is an approach to automation enabled by software that mimics computer activities performed by people. The approach can include things as simple as automating keystrokes and mouse clicks or as complex as a chain of sophisticated logic routines spanning large segments of an accounting cycle and using artificial intelligence technologies such as computer vision, fuzzy logic, and natural language processing. Either way, the automated routines act as virtual robots — or simply “bots” — or they can have significant impact on an organization’s productivity. Bots are capable of performing tasks many times faster than humans when properly designed. Traditionally, they have been created for routine, rule-based processes, such as gathering records from database searches for accounts or transactions in various systems. Properly designed, a bot may help organizations minimize or eliminate human intervention in the execution of tasks. They can improve productivity by working around the clock, 365 days a year, and, improvements in efficiency can be found not only in 8
FLORIDA CPA TODAY | FALL 2019
the speed of activities performed but also in accuracy, as effective design can reduce the probability of typographical errors or overlooked information. Some organizations are implementing large fleets of bots, which can be scheduled to optimize the order of routines performed, the use of software licenses, and consumption of computing resources. Teams of bots performing a large scope of activities act as a digital workforce. A digital workforce may be used to augment an existing workforce or relieve the overflow for a workforce operating at capacity. Some organizations may consider RPA when reviewing their hiring plans. Instead of augmenting their team with additional human capital, they may be able to augment with RPA. Automation of routine tasks means that employees can focus their time on doing the more analytical parts of their jobs — the parts which typically are more stimulating and satisfying. In a recent Forbes survey 92% of employees were found to have increased workplace satisfaction after the implementation of intelligent automation and RPA.
USE CASES FOR DIGITAL WORKERS
RPA is often used to automate repetitive, rules-based tasks, such as scanning electronic documents for needed information, comparing data from one spreadsheet to another, or scraping data from websites and entering it into an application. Because these are adaptable data entry activities, they may relate to a number of different functions in an organization. For example, RPA software can be a useful tool when it comes to tasks for accounts receivable, purchasing, account reconciliations, or compliance and due diligence requirements. Kaufman Rossin is having success deploying bots internally and for clients. Internal projects include bots for manipulating, assembling, and storing PDF files of prepared tax returns as well as automating the electronic filing of those returns with the IRS and monitoring for responses. During peak tax compliance seasons, the automation is helping to relieve overtime hours for administrative staff and free up attention to address client requests. To assist with bank compliance audits, Kaufman Rossin created a screening bot that consumes large lists of parties and counterparties to transactions and performs searches on those parties for risk indicators. Overnight, the bot reads the listing of hundreds of entity names, performs searches against those names for indicators of risk, and prints hyperlinked PDFs that are available for the audit professionals to quickly review the next day. Kaufman Rossin has also deployed bots into client environments. For a professional services firm, we designed, implemented, and maintain a bot that checks a log of jobs performed against cash deposits, identifies cash receipts for jobs performed, records the date, and signs off as “bot” in a subledger for review. When less cash was received than expected, the bot records the amount in the subledger and highlights it yellow for further inspection. For a jewelry retailer, we created a bot that checks invoices received against purchase orders and packing slips to validate unit prices and quantities. Issues are flagged for review, and load files are created for import into the company’s point of sale system. Banks and financial services organizations have been among the early adopters of RPA technology. Most banks perform due diligence screening when a new customer requests a service. Employees enter the potential customer into their database to calculate the risk, interest rates and other offerings for the customer. Well-deployed RPA can also screen multiple lists and sites, such as those in the Office of Foreign
Assets Control, to detect those on sanctions lists or even identifying politically exposed persons. Increasing adoption of RPA in several industries is expected. In December 2018, federal bank examiners urged banks to pursue new ways to meet BSA/AML obligations with the goal to “further strengthen the financial system against illicit financial activity.” The joint statement from financial watchdog and oversight agencies (which include the Federal Reserve, the FDIC, FinCEN, the OCC and the NCUA) encourages banks to consider, evaluate and, where appropriate, responsibly implement innovative approaches aimed at combating money laundering, terrorist activity and fraud. The statement noted that BSA/AML gaps exposed by pilot programs will not necessarily lead to supervisory action. DESIGNING, IMPLEMENTING, AND OPERATING A DIGITAL WORKFORCE
There are important steps to take to support successful implementation of an RPA solution. Align and incorporate your automation program with the business strategy. Today, most technology projects are also business projects, and RPA implementations are no exception. In addition to understanding the goal of the process you’re seeking to automate, it’s important to assess how the technology aligns with the organization’s overall business strategy and goals. That means that senior management must be committed to the approach from the beginning and their review and approval of the governance model is critical.
92% Percent of employees found to have increased workplace satisfaction after the implementation of intelligent automation and RPA. FALL 2019 | FLORIDA CPA TODAY
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Identify your competencies. Are you going to build, buy, or borrow a team capable of implementing the talent? Managing a successful RPA program requires multiple types of knowledge and skill. In addition to the business managers and process owners, common roles for a successful program may include an automation program manager, business analysts, bot developers, automation architects, and infrastructure managers. Building would involve training multiple existing employees within your organization to assume the roles necessary to perform these functions. Buying suggests hiring the experienced personnel. Borrowing means using consultants. Many organizations use a blend of all three.
...it’s important to assess how the technology aligns with the organization’s overall business strategy and goals. That means that senior management must be committed to the approach from the beginning and their review and approval of the governance model is critical. Examine your processes. The rule of thumb is that RPA will amplify and accelerate existing processes. An organization that already has good governance will amplify it through RPA. But robotic process automation may also highlight less-than-sound processes. Don’t just aim to automate the current process, take advantage of the opportunity to re-engineer and optimize the process. Some organizations have personnel whose role includes process optimization. Other organizations may choose to automate and optimize through an iterative process. Develop an automation roadmap. To maximize the benefits of RPA while controlling the risk related to change, it’s often a good idea to start as small as possible with your pilots. People may want to start off with a big win and demonstrate high return on investment as quickly as possible; however, limiting the number of variables changed in a process helps to manage the risk of unintended consequences. You are less likely to break interfaces and create incompatibilities by decomposing from programs into projects, projects into routines, routines into tasks, and tasks into steps. 10
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Test your automation. Follow sound change management practices not only for the technology but also for the business process being automated. Criticality of processes and sensitivity of data should be identified before beginning so that proper business continuity and information security planning can be incorporated into development, testing, and deployment. Proper authorization of changes should be obtained. Development and testing should be performed in segregated environments with test data in robust test cases. Staging environments should be provided for user acceptance testing. Approval of changes should be obtained prior to deployment. Post-implementation testing and monitoring of automated process is key. Measure results. Comparing the time required for RPA to complete a task versus the time required for manual completion of the same task will help you start to quantify efficiency gains. Successful use of RPA often requires a significant investment in software licensing, staff training, new employees and/or consultants. There will be a learning curve, most likely errors to fix and tweaks to make. Be wary of vendors who promise an unrealistic return on investment (ROI) in six months or a year. CONCLUSION
The use of artificial intelligence, machine learning and robotic process automation in the industry will undoubtedly continue to grow in the coming years. As the technology evolves and becomes more available, it will also become more sophisticated and enable professionals to focus their time on analysis, judgment, strategic thinking and innovation, rather than on routine processes — we’ll have bots for that. JASON CHORLINS, CPA, CFE, CAMS, CITP is principal, Risk Advisory Services at Kaufman|Rossin (KR). He spearheads forensic and financial service investigative engagements as the banking practice co-leader for KR’s Risk Advisory Services practice. Jason is a past president of the FICPA Scholarship Foundation. ROBERTO VALDEZ, CISM, CISA, CPA is director of Cybersecurity Automation within KR’s Risk Advisory Services. He specializes in leveraging technology to help businesses mitigate risk, protect their information and achieve strategic objectives. Rob also is an adjunct professor for Florida Atlantic University.
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Florida Enacts Legislation to Advance Federal Tax Conformity Date and Address Other Federal Tax Reform Matters By Chris Oatis, managing diector, state and local tax services, Grant Thornton
O
n June 28, 2019, Florida Governor Ron DeSantis signed legislation adopting the version of the Internal Revenue Code (IRC) in effect as of Jan. 1, 2019. Included in the legislation is the requirement that taxpayers filing a Florida corporate income tax return (Florida return) must submit certain information related to specific provisions of the Tax Cuts and Jobs Act (TCJA)1 through a secure online application created by the Florida Department of Revenue (Department). Additionally, the legislation addresses Florida’s treatment of Global Intangible Low-Taxed Income (GILTI),2 and extends the current automatic tax rate adjustment and refund mechanism for an additional two years. IRC CONFORMITY
Florida adopts the IRC on a static conformity basis, and has amended its conformity date from Jan. 1, 2018 to Jan. 1, 2019.3 While Florida generally is considered to be a static-conformity state, “any amendment to the IRC shall be given effect under this code in such manner and for such periods 1 P.L. 115-97. 2 H.B. 7127, Laws 2019. 3 Fla. Stat. Ann. § 220.03(1)(n), (2)(c).
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as are prescribed in the IRC, to the same extent as if such amendment had been adopted by the Legislature of this state.” However, an amendment has effect for Florida purposes only to the extent that the amended provision of the IRC is taken into account in the computation of net income subject to Florida tax.4 TAX REFORM INFORMATION REPORTING REQUIREMENT
In order to further analyse the implications of the TCJA, based on actual amounts being reported for federal and Florida taxable income purposes, the legislation creates the requirement to disclose such amounts to the Department.5 This information will be provided to the Revenue Estimating Conference in order to ascertain the budgetary implications of these provisions, and is for informational purposes only. Every taxpayer required to file a Florida return for a taxable year beginning during the 2018 or 2019 calendar years must submit to the Department the following information for those taxable years using a secure online application: 4 Fla. Stat. Ann. § 220.03(3). 5 Fla. Stat. Ann. § 220.27.
1. Name, Federal Employer Identification Number (FEIN), taxable year beginning and ending dates, and whether a Florida consolidated return is required or has been elected; 2. North American Industry Classification System (NAICS) code, based on the business activity that generates the greatest proportion of gross receipts; 3. Federal taxable income subject to certain limitations,6 and Florida apportionment fraction; 4. Amount of GILTI included in federal taxable income, and the amount of the related deduction under IRC Sec. 250, to the extent it pertains to GILTI; 5. Amount of Foreign-Derived Intangible Income (FDII) computed for federal income tax purposes, and the amount of the related deduction under IRC Sec. 250, to the extent it pertains to FDII; 6 Under Fla. Stat. Ann. § 220.13(2), a taxpayer's taxable income for the taxable year means taxable income as defined in IRC § 63 and properly reportable for federal income tax purposes for the taxable year, but subject to the limitations set forth in Fla. Stat. Ann. § 220.13(1)(b) with respect to the deductions provided by IRC §§ 172 (relating to net operating losses), 170(d)(2) (relating to excess charitable contributions), 404(a)(1)(D) (relating to excess pension trust contributions), 404(a)(3)(A) and (B) (to the extent relating to excess stock bonus and profit-sharing trust contributions), and 1212 (relating to capital losses).
6. Amount of business interest expense deducted for federal income tax purposes (including any carryover), the amount of current year business interest expense (including any carryover) that was not deducted due to the IRC Sec. 163(j) limitation, and the amount carried over from previous taxable years; 7. Amount of federal net operating loss (NOL) deduction applied in determining federal taxable income, and the amount of any federal NOL carryover that was not applied due to the limitation in IRC Sec. 172(a)(2); 8. Total amount of Florida NOL carryover available after filing the tax return for the current taxable year; and 9. Total amount of state alternative minimum tax (AMT) credit carryover available after filing the tax return for the current taxable year.7 The requirement to submit this information is imposed upon all taxpayers subject to taxation under Fla. Stat. Ann. Sec. 220.22(1),8 which not only applies to C corporations, but also other entities that are required to file a Florida return, including for example: • S corporations that pay federal income tax on Line 22c of federal Form 1120S; • Homeowner and condominium associations that file federal Form 1120 (and not federal Form 1120-H); • Political organizations that file federal Form 1120-POL; and • Tax-exempt organizations that have “unrelated trade or business taxable income” for federal income tax purposes.9 7 Fla. Stat. Ann. § 220.27(1)(a)1.-9. 8 Fla. Stat. Ann. § 220.27(1)(a). 9 Fla. Admin. Code Ann. r. 12C-1.022.
Regardless of whether or not the provisions of the TCJA are applicable to these other entity types at the federal level, an online application is still required to be submitted. To the extent that a provision is not applicable to the entity, though, then the correlating field within the online application should be populated with a zero amount. For partnerships, since the requirement to file an informational return comes under Fla. Stat. Ann. Sec. 220.22(2), they are not subject to the reporting requirement. Either an officer of the taxpayer, or a person duly authorized to act on the taxpayer’s behalf, must certify that the information submitted is true and correct.10 The required information must be submitted by the earlier of: (i) 10 days after the extended due date of the taxpayer’s Florida corporate income tax return, or (ii) 10 days after the date the return is filed.11 To the extent that a taxpayer filed its Florida return on or before Aug. 24, 2019, therefore, the information would be considered timely if submitted by Sept. 3, 2019. The Department is given authority to perform any additional financial and technical audits and investigations necessary to verify the accuracy of the information submitted.12 Any taxpayer who fails to timely provide the required information is subject to a penalty of $1,000 or 1% of the tax determined on the most recent return filed with the Department, whichever is greater.13 The Department may settle or compromise any penalty if it determines that noncompliance is due 10 11 12 13
Fla. Stat. Ann. § 220.27(1)(c). Id. Fla. Stat. Ann. § 220.27(1)(d). Fla. Stat. Ann. § 220.27(1)(e).
to reasonable cause and not willful negligence, willful neglect, or fraud.14 The Department was tasked with creating the secure online application on its website by Sept. 3, 2019 to be used by taxpayers when submitting the required information.15 When the secure online application was established Aug. 26, 2019, the Department sent out a Tax Information Publication (TIP) to each registered corporation, whose registration indicates the requirement to file a Florida return.16Receipt of the TIP indicates that the Department anticipates the recipient will submit the required information.17 If the recipient is not required to file a Florida return, however, the TIP also provides guidance for how to update the taxpayer’s account with the Department to reflect this status.18 Failure to receive the TIP, though, should not be construed by a taxpayer as not having a reporting requirement, and each situation should be separately evaluated to determine the appropriate course of action. FLORIDA’S TREATMENT OF GILTI
The adoption of the TCJA provided a significant overhaul of the federal income tax system and was enacted in part to transition the U.S. toward a partial territorial system. As part of this transition, IRC Sec. 951A established GILTI, a new category of income recognized by U.S. shareholders of controlled foreign corporations (CFCs). Specifically, the GILTI provision requires U.S. shareholders owning 10% or more of a CFC to 14 Id. 15 Fla. Stat. Ann. § 220.27(1)(b). 16 Tax Information Publication No. 19C01-01, July 31, 2019. 17 Tax Information Publication No. 19C01-03, Aug. 26, 2019. 18 Id.
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include GILTI in their current taxable income.19 The inclusion of GILTI is partially offset by a deduction contained in IRC Sec. 250, currently equal to 50% of the GILTI inclusion.20 Effective June 28, 2019, and operative retroactively to Jan. 1, 2018, Florida provides a subtraction adjustment for the amount included in taxable income under IRC Sec. 951A.21 However, any amount subtracted is only allowed to the extent that it is not deductible in determining federal taxable income.22 While it is not specifically identified, this added language appears to relate to the offsetting impact of the GILTI deduction under IRC Sec. 250, so that the subtraction adjustment cannot exceed the net GILTI amount reported for federal taxable income purposes. Additionally, Florida also requires that an offsetting addback be made, equal to all expenses deducted that are attributable, directly or indirectly, to the subtracted amount.23 EXTENSION OF POTENTIAL TAX RATE ADJUSTMENT AND REFUND PERIOD
H.B. 7093, previously enacted on March 23, 2018, created an automatic, downward adjustment to the historic Florida corporate income tax rate (including the franchise tax rate imposed on banks and savings associations) of 5.5%, dependent upon the overall impact to revenues collected during the state’s 2018-2019 fiscal year.24 The current Florida legislation extends the period provided for the potential tax rate reduction and correlating refunds through the state’s 2020-2021 fiscal year.25 19 IRC § 951A. GILTI is specifically defined as the excess (if any) of such shareholder’s net CFC tested income for such taxable year, over such shareholder’s net deemed tangible income return for such taxable year. 20 IRC § 250(a)(1)(B). The deduction amount drops to 37.5% for tax years beginning after 2025. 21 Fla. Stat. Ann. § 220.13(1)(b)2.(b). 22 Id. 23 Id. 24 H.B. 7093, Laws 2018. 25 Fla. Stat. Ann. § 220.1105.
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Although the penalties under Florida’s requirement are not as egregious as what Maryland had assessed, they still pose a risk for the unwary if the required information is not provided by the established due date. The onus for reporting this information is ultimately on taxpayers, who will assuredly be looking to tax professionals for assistance with the process. If the state’s net collections26 exceed the state’s adjusted forecasted collections27 by 7% or more, the tax rate of the preceding calendar year in which a fiscal year ends will decrease by the quotient of the adjusted forecasted collections divided by the net collections for that fiscal year.28 The deadline for the Department to evaluate and report any related adjustments to the tax rate is Oct. 1 of each respective fiscal year end.29 Any adjusted tax rate will subsequently be repealed for taxable years beginning on or after Jan. 1, 2022, and the rate will revert back to 5.5%.30 If the tax rate adjustment is implemented, the amount of net collections in excess of adjusted forecasted collections for a fiscal year will be used to provide each eligible taxpayer31 with a refund of corporate income taxes paid for a fiscal year.32 The refund will be distributed based on the percentage of the eligible 26 Fla. Stat. Ann. § 220.1105(1)(a). Net collections are the total amount of corporate income taxes collected during a state fiscal year, including interest and penalties, net of refunds. 27 Fla. Stat. Ann. § 220.1105(1)(b). Adjusted forecasted collections are the forecasted net collections (as determined by the Revenue Estimating Conference) for a fiscal year multiplied by 1.07. Fla. Stat. Ann. § 220.1105(1)(c). 28 Fla. Stat. Ann. § 220.1105(2). 29 Fla. Stat. Ann. § 220.1105(3). 30 Fla. Stat. Ann. § 220.1105(5). 31 Fla. Stat. Ann. § 220.1105(4)(a)1. An eligible taxpayer for fiscal year 2018-2019 has a taxable year that begins between April 1, 2017 and Mar. 31, 2018, and whose final tax liability for such taxable year is greater than zero. For fiscal years 2019-2020 and 2020-2021, the taxable years of an eligible taxpayer begin between April 1, 2018 and March 31, 2019 and April 1, 2019 and Mar. 31, 2020, respectively. 32 Fla. Stat. Ann. § 220.1105(4).
taxpayer’s final tax liability33 against the total eligible tax liability34 for a fiscal year,35 to be determined by the Department no later than April 15 following a fiscal year,36 and to be paid no later than May 1 following a fiscal year.37 COMMENTARY
The tax reform information reporting requirement will likely remind some seasoned professionals of other states’ information reconnaissance efforts, such as the Maryland combined reporting disclosure statement from over a decade ago. Although the penalties under Florida’s requirement are not as egregious as what Maryland had assessed, they still pose a risk for the unwary if the required information is not provided by the established due date. The onus for reporting this information is ultimately on taxpayers, who will assuredly be looking to tax professionals for assistance with the process. The enactment of this law codifies Florida’s treatment of GILTI as a subtraction adjustment, which is consistent with what was expected for this TCJA provision, similar to the 33 Fla. Stat. Ann. § 220.1105(4)(a)3. Final tax liability is the taxpayer’s amount of tax due for a taxable year, reported on a corporate income tax return filed with the Department. 34 Fla. Stat. Ann. § 220.1105(4)(a)4. Total eligible tax liability is the sum of final tax liabilities of all eligible taxpayers for a fiscal year as shown on the latest corporate income tax return filed with the Department as of Feb. 1 immediately following the fiscal year. 35 Fla. Stat. Ann. § 220.1105(4)(a)5. 36 Fla. Stat. Ann. § 220.1105(4)(a)6.(b). 37 Fla. Stat. Ann. § 220.1105(4)(a)6.(c).
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approach taken by the state with other foreign-sourced income items, such as Subpart F income. The state’s first fiscal year in which the potential tax rate reduction legislation took effect recently ended June 30, 2019. In addition to the potential for unexpected refunds that could be generated, taxpayers should consider potential fourth quarter 2019 tax provision implications. It should be noted that the tax rate reduction legislation is still temporary, meaning that the 5.5% corporation income tax rate currently will not be subject to reduction in 2022 and beyond. If Florida’s current conformity to IRC Sec. 163(j) continues, taxpayers with significant interest expense limitations under that provision may be faced with significantly higher Florida corporation income tax liability in the long term when the tax rate reduction legislation expires.
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CHRIS OATIS is managing director, state and local tax services for Grant Thornton in Orlando. He serves as the Florida Income/Franchise Tax Compliance Leader and is the Business Record Repository Steward for the Income/Franchise Tax Business Line. Oatis joined Grant Thornton in 2005.
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GRC Tools: Hype or Reality? How can they help your compliance and security teams?
By Gene Geiger, chief technology off icer, A-LIGN
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he industry and regulatory requirements placed on companies have significantly increased over the past 10 years. Since the introduction of the Statement on Auditing Standards (SAS) No. 70 in 1992, companies have been under a constant barrage of requirements including the Health Insurance Portability and Accountability Act of 1996 (HIPAA), the Federal Information Security Management Act of 2002 (FISMA), the Payment Card Industry Data Security Standard (PCI DSS) in 2004, increased adoption of HITRUST in 2016, and most recently the General Data Protection Regulation in 2018. In addition to the regulatory pressure, increasing data breaches — in both size and impact, are driving companies to escalate their focus on risk management. Focusing on risk requires additional work from existing information security and compliance professionals. These tasks include tracking assets, maintaining and monitoring vendors, and keeping track of service providers; all of which require additional time to complete. Tracking these responsibilities and data points on spreadsheets and notebooks has become unrealistic from an efficiency and effectiveness position. To address this issue, the market has responded with an industry of software providers to support the Governance, Risk and Compliance (GRC) needs of companies. The question remains: Do these technology platforms truly drive audit efficiency and reduce the workload on the information security and compliance professionals and the companies, as a whole?
DEFINING GRC PLATFORM OPTIONS
GRC platforms typically provide one or many of the services below. The purpose of each module is to provide a centralized, systematic platform to perform the governance, risk or compliance activities. • Compliance Management: The flagship GRC offering for most platforms designed to support the annual audit cycle • Enterprise Risk Management: Supports the overall risk management function of the companies • Vendor Management: Assists in identifying, risk ranking and monitoring of vendors • IT Risk Management: Risk management specifically focused on IT-related risks • Business Continuity Management: Business continuity planning, document hosting & event management FALL 2019 | FLORIDA CPA TODAY
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• Internal Audit: Conducting internal assessments of the company’s controls • Policy Management: Drafting, updating and hosting company’s policies and procedures • Vulnerability Management: Conducting vulnerability scanning activities against the company’s information technology assets. GRC platform providers are broken into two primary categories: purpose-built or wholistic. Purpose-built GRC platforms focus solely on one of the GRC modules and strive to be best-in-class in that risk area. Wholistic providers offer most, if not all, of the modules in a single software solution. The goal of the wholistic GRC solutions provider is to be the single solution that companies select to meet their governance, risk and compliance needs. Although there are many strong, purpose-built GRC solutions, wholistic GRC solutions continue to be the predominant offering in the GRC space. Whether considering a purpose-built solution or a wholistic solution providing a wide range of GRC solutions, how do you know if a GRC solution is right for your company?
NEED FOR GRC SOLUTIONS
GRC software solutions were traditionally reserved for the large to enterprise-level companies. There are two key drivers leading small to medium-sized businesses (SMB) to adopt GRC solutions and resulting growth of the GRC software industry. First, risk management activities and adoption of audit frameworks are not just for large companies. SMB companies are also feeling the added pressure of audit requirements. Second, the software as a service (SaaS)-based delivery model and subscription pricing now brings the GRC platform’s price point and implementation effort to a reasonable level for the SMB market. With these trends, the SMB, as well as enterprise companies, should evaluate if a GRC solution is right for their company. The need for GRC solutions can be driven by a number of characteristics. Companies in highly regulated industries including healthcare, financial services and government, are strong candidates for GRC solutions to assist in the management of the risk and compliance landscape. Service providers with strict audit, compliance and contractual requirements from their customers are also strong candidates for a GRC solution. Lastly,
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companies that host a large amount of sensitive data should consider a GRC solution to help manage risk. BENEFITS OF GRC SOLUTIONS
Understanding that there is a time commitment and financial outlay to implementing a GRC solution, it is important to consider the return on investment (ROI). As the audit, risk and compliance requirements increase within a company, the need for GRC solutions increases. “Managing our multiple audit requirements without a GRC solution is a significant time draw on my team,” shared Milinda Rambel Stone, vp & ciso for Provation Medical. “By implementing a GRC solution my team will be able to systematically manage the requirements for the audits.” The benefits of a properly implemented GRC solution certainly live up to the hype. Although meeting the rigorous governance, risk and compliance requirements in today’s environment demands time and dedication, a GRC solution reduces the time and effort needed to meet those requirements. SELECTING THE RIGHT GRC SOLUTION
If your company decides to move forward with a GRC solution, you should contemplate the following questions: 1. What type of implementation should you consider? For most companies, a SaaS solution would be the right selection. For large to enterprise size companies that own their infrastructure, an on-premises solution could be considered. Your company should evaluate the technical skills and capacity of your information technology team before making a selection. 2. Should you customize your solution or accept an out-of-the-box configuration? Companies commonly will
find that the features within most GRC solutions will meet their needs. However, for companies that are in unique industries or may have internally-developed GRC requirements, a customized solution may be appropriate. The cost associated with the customized solution should be considered against the ROI of the additional needs. 3. When should you select a purpose-built solution over a wholistic GRC solutions provider? The value proposition for purpose-built platforms is strongest for those companies with a critical need for one specific risk area. For example, a large company that has hundreds or even thousands of vendors that present a high level of risk may want a best-in-class vendor management GRC platform. Without a specific focus on a particular risk area, a wholistic provider may be the optimal choice. The verdict is in, the heightened risk-focused world that we all live in requires an automated solution to reduce the time and energy needed to maintain a strong governance, risk and compliance program. There are many solutions in the marketplace to meet your company’s needs, no matter the size or industry you operate in. Companies should evaluate their industry, regulatory requirements and internal capabilities and select the solution that is right for their company. GENE GEIGER is the chief technology officer at A-LIGN. He has over 20 years of experience implementing and assessing IT controls. He focuses on governance, risk, the compliance software industry and leads the company’s development efforts for the A-SCEND platform.
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How to Create a Password Policy, Protecting the Keys to your Digital Kingdom by Christophe Réglat, President and CEO, Coaxis
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ybersecurity awareness helps people understand and take action to ensure their online lives are kept safe and secure. At work, this means all employees sharing responsibility for protecting their company’s data and infrastructure, including using secure passwords. Managing privacy and security risks is a top concern for CPA firms of all sizes, according to the AICPA’s 2019 PCPS CPA Firm Top Issues survey. One good precaution to address this concern is implementing a strong password policy.
HOW TO CREATE A PASSWORD POLICY
To be effective, a password policy needs to be easy for employees to implement; otherwise, compliance will suffer. A basic policy should include the following three elements: 1. Rules for Creating a Strong Password
Passwords have been called “the keys to the digital kingdom” used by hackers to break into an organization’s computer system to steal sensitive data and personally identifiable information, or hold it ransom. Among the methods hackers use to discover passwords are dictionary attacks that cycle through a list of words commonly used in passwords, lifting information from social media to answer security questions, and password-cracking programs that use brute force to repeatedly try millions of combinations of characters, until a password is detected.
Creating a strong password might seem obvious until you consider the five most common passwords are: 123456, 123456789, qwerty, 12345678 and 111111. Avoid these common blunders by providing your employees with guidelines to create a password that is unique and complex.
It can happen to anyone. Literally. Earlier this year, Forbes reported on a mega-breach of more than one billion unique email address and password combinations that had been posted to a hacking forum. Even more concerning, the stolen passwords were available in plain text for anyone to see. Hackers can use the information to compromise your services with a credential-stuffing attack that deploys bots to automatically test millions of email and password combinations on a whole range of website login pages.
The strongest passwords are those that are a) eight or more characters long; b) contain a combination of upper and lower case letters, numbers and symbols; c) use made-up phrases. Do not use common words or other dictionary words, or personal information
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such as the name of a family member or pet. For instance, instead of using the phrase “I love to shop”, change it up to “1luv2shop”, or even better, “#1Luv2shop!.” 2. How Often to Change Passwords
The AICPA’s Director of IT Security Strategy Jay Overcash recommends changing passwords as least once per year. “If employees use the same password on multiple websites, then consider changing the password more frequently; however, the best advice is to have a unique password per website and application,” he added. Some password policies also establish rules for how frequently old passwords can be reused, to discourage employees from recycling common passwords that can be easily hacked. Best practice is to require a history of five passwords. For employees who struggle to create and change multiple passwords, provide a random password generator program, such as Dashlane or Keeper, that can help by manually creating passwords based on your firm’s specified set of rules. 3. How to Securely Store Passwords
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Remembering multiple passwords or frequently changing them can boggle the mind. It is unrealistic to prohibit employees from writing down their passwords and can result in them choosing weak ones or forgetting them altogether. Instead, ask staff to keep their written passwords in a secure place, such as a safe or in an encrypted master file.
• Avoid using the same password for all logins. If one application gets hacked, the rest will, too • Log out of websites and devices when you are finished using them • Don't answer "yes" when prompted to save your password to a computer's browser A final piece of advice: Update your password policy regularly. The realm of cybersecurity is constantly evolving and hackers are getting bolder and more calculated by the day. Consider hiring a cybersecurity professional to help. They can attempt to hack into your system, locating loopholes in your password policy and your infrastructure security, in general. COAXIS ad 2.pdf
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Passwords remain the predominant method for securing online data. Yet, nearly 63 percent of all data breaches occur due to weak or stolen passwords, according to Verizon’s annual Data Breach Investigations Report. It’s in your firm’s best interest to take every precaution necessary to protect your electronic information; especially when it comes to creating an effective password policy. CHRISTOPHE RÉGLAT is president and CEO of Coaxis, an endorsed program for the FICPA. Coaxis provides CPA firms with a fully-hosted and managed network solution designed to remove the complexities of federal and industry compliances, curb the demands of maintaining an IT infrastructure, and greatly minimize the threat of cybercrime. For more information, call (850) 391-1022 or email lisa.bryant@coaxissolutions.com.
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STAFF REPORT
Government Affairs News & Updates PRESIDENT GALVANO APPOINTS BYRON SHINN TO FLORIDA CYBERSECURITY TASK FORCE
On October 11, Florida Senate President Bill Galvano announced the appointment of FICPA member Byron Shinn, CPA to the Florida Cybersecurity Task Force. This Task Force is charged with reviewing and providing recommendations for Byron Shinn, CPA improving Florida’s cybersecurity infrastructure, governance, and operations. “Byron is a very well-respected Certified Public Accountant with a solid background in cybersecurity issues, particularly those dealing with federal tax fraud,” said President Galvano. “An accountant for nearly 40 years, he also has experience running a small business, which will be a valuable perspective for the Task Force.” The FICPA is proud to have Mr. Shinn represent the CPA profession on the Task Force and share his cybersecurity experience.
FICPA MEMBER APPOINTED TO BLOCKCHAIN TASK FORCE
Gary Ruderman, CPA, of Pompano Beach and owner of Ruderman and Company, PA was appointed by Governor Ron DeSantis to the Blockchain Taskforce. A graduate and past board Chairman of Leadership Broward, Ruderman is past president of the Gary Ruderman, CPA Tax Executive Institute’s Florida Chapter and a member of the FICPA. Ruderman earned his bachelor’s degree in accounting from the University of Miami and master’s in taxation from Florida International University.
STATE TAX COMMITTEE HOLDS ANNUAL MEETING WITH DOR
(L-R) Kevin Herzberg, FICPA DOR Liaison Chair; Joe Handy; FICPA President- CEO Deborah Curry; DOR Executive Director Jim Zingale; FICPA State Tax Committee Chair Chris Oatis
On November 19, the FICPA State Tax Committee held its annual liaison meeting with the Florida Department of Revenue in Tallahassee. The premier event, for many decades, provides practitioners and the Department an invaluable opportunity to have open dialogue about the issues impacting taxpayers. Every year FICPA member attendees receive an update from the Department on issues including the newest administrative rule changes, current legal case decisions, the Department’s legislative initiatives overview. New this year, the Department of Economic Opportunity’s economist Adrienne Johnston presented an informative economic update. IRS CONSIDERS PRACTITIONERS SERVICES DIVISION
IRS Commissioner Rettig announced last summer that the IRS is considering forming a practitioners services division as part of its modernization plan — a step that the combined voices of the AICPA, FICPA and fellow state CPA societies have advocated for on behalf of tax preparers and taxpayers. According to bloombergtax.com, Commissioner Rettig said, “I’m aware of it. I’m sensitive to it.” Bloomberg further reported that Rettig said the IRS will need to factor in budget constraints when considering the new division.
JUSTIN THAMES, DPL, director of governmental affairs, FICPA
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STAFF REPORT
Student Track Prepares CPA Next Generation of New Vision CPA Group. The students learned what to expect on the CPA exam from Surgent CPA Review Director of Market Development Ray Ruiz. CPA panelists Lavderim Hysa (FBI), Lydia Desnoyers (Desnoyers CPA) and Michael Kacka (Berkowitz Pollack Brant Advisors) then shared real-world accounting career experiences and discussed the differing paths they took to becoming CPAs.
Panelist Lydia Desnoyers shares her CPA career experience at FICPA student track.
Twenty-two college students gathered for the 4th Annual Student Track, held at the Accounting Show Next Era in Fort Lauderdale at the Broward County Convention Center. During the half-day track, the accounting majors enjoyed learning about the limitless possibilities and benefits of earning their license. Kicking off the day was the inspiring Accounting Show Next Era keynote address from Jody Padar, president/CEO
Ensure our profession has a seat at the table in Tallahassee.
To help students prepare for job searching, Sean Hollis, branch manager for RobertHalf International trained the class in effective networking skills and discussed resume writing do’s and don’ts. “I liked the networking and resume building sessions the best,” commented a participant. Concluding the student track was a presentation on requirements and preparing for the CPA exam and licensure from Karan Lee of Florida’s Board of Accountancy. “Thank you so much! This information was very useful,” said participant Anessa Rippie. Learn more about future FICPA student tracks by visiting students.ficpa.org. MONICA DAVILA, career development specialist, FICPA
For more than 40 years, the Florida CPA/PAC has been the voice of CPAs in the political process. Your financial contribution makes the difference in our ongoing work to support pro-CPA, pro-business candidates running for office; educate lawmakers on issues that matter to CPAs; and advocate for protection of the CPA license. MEMBERSHIP TIERS:
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Take action TODAY! Contribute to the CPA/PAC: ficpa.org/PACcontribute Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others. The Florida CPA/PAC is registered as a corporation with the Florida Division of Corporations and as a Political Committee with the Florida Department of State.
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In case you missed it: THE FICPA ACCOUNTING SHOW NEXT ERA By Diane Major, manager of learning curriculum
From data analytics, Artificial Intelligence Robotic Process Automation (AI RPA) and blockchain, to transformational leadership, ethics and the virtual workplace, 2019 Accounting Show Next Era attendees received valuable, cutting-edge tools and information designed to transform their practices for future viability. More than 40 thought leaders shared their expertise at this long-running event held September 25-27 at the Broward County Convention Center in Fort Lauderdale. Here are a few conference highlights:
Data Analytics & the Impact on the Accounting Profession Since moving from a paper-based environment, data is becoming streamlined but created in much larger quantities. The results are new data integrity challenges for accounting professionals. “Data analytics can be used to efficiently and effectively test data on a macro level basis for identifying data anomalies, allowing professionals to focus on the relevant information and exceptions,” said presenter Kathryn K. Horton, CPA PA, president, Kathryn K Horton CPA PA. Data analytics is popular with accountants because it works best in controlled environments with rules and sets of processes. The AICPA released a data analytics guide (Dec. 2017), providing auditors with direction and encouragement for making use of technology-based audit data analytics.
Cannabis Accounting Cannabis is a developing topic of interest to the accounting profession. As more states embrace cannabis in either a medicinal or recreational capacity, CPAs are being called upon to familiarize themselves with this unique field. “The key cannabis accounting issues are inventory, revenue recognition, lease accounting and income taxes,” says speaker Marc Silverman, audit partner, WithumSmith+Brown, PC. “Key tax considerations include IRC Section 280E. Internal controls, segregation of duties and banking issues are also high on the radar.” Florida CPAs need to stay advised of possible changes, as the state currently has mixed legal status on the product and its use.
Transformational Leadership of the Future Virtual offices. Multi-generational workforces. Exploding technology. Suffice to say, leadership styles must adapt and grow in the rapidly evolving workplace. Well-known leadership coach, Michele Norris, founder, Navigen Leadership, LLC, took participants through five key leadership traits; how to build trust; and discussed the number one reason for leadership failure. Conversation is paramount to leadership success, according to Norris. Workers from each generation have unique interactive skills and preferences. The key to success is understanding your team and what works best with them. This interactive session allowed attendees to explore their communication preferences and how they relate to others. “Interpersonal dynamics are key to successful leadership,” says Norris. “Leaders must take the time to analyze themselves and acknowledge their own areas for improvement.” 26
FLORIDA CPA TODAY | FALL 2019
We gratefully thank our generous sponsors for their support of the show and of CPA educational excellence. We couldn’t do it without you!
DON’T MISS NEXT YEAR’S NEW SOUTH FLORIDA EVENT New Next Year the Accounting Show Next Era is moving to the Seminole Hard Rock Hotel & Casino in Fort Lauderdale! The new event will feature cutting-edge topics, new vendor learning labs, the industry’s best thought-leaders and a new name – The South Florida Summit. The South Florida Summit is a two-day immersive learning and networking event scheduled for November 18-19, 2020. Mark your calendars now as you won’t want to miss this one!
FALL 2019 | FLORIDA CPA TODAY
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STAFF REPORT
Scholarship Foundation News & Updates BOND FOUNDATION FUNDS THREE ACCOUNTING SCHOLARSHIPS
The 2019 Bond Foundation scholarships were awarded to Rachel Moore, a student at the University of Florida (Derek’s Alma mater); Will Lomawu Kossi Amouzou from Florida State University (Ann’s alma mater), and Michele Roby from the University of Central Florida (the alma mater of another Bond Foundation CPA board member). Derek Blakeslee
Derek Blakeslee and his wife Ann serve on the board of the Bond Foundation, Inc, a private grant making foundation founded in 1997 from the estate of Blakeslee’s mentor, Walter Bond. Three extra scholarships were awarded during the fall 2019 semester by the FICPA Scholarship Foundation thanks to a generous financial gift from the Bond Foundation. Bond board member Derek Blakeslee has been a CPA for 31 years and a loyal member of the FICPA since the date he passed the CPA exam. An ardent supporter of the profession, Blakeslee also is a member of the Florida CPA/ PAC and long-time Scholarship Foundation donor. The Bond Foundation, based in Winter Garden, charitably awards over $350,000 annually to various programs, primarily in the Central Florida area. The Bond Foundation board includes three CPAs. Collectively they determined that creating three named scholarships ($2,000 each) through the FICPA Scholarship Foundation to be a great way to promote the FICPA while helping future CPAs offset the rising costs of tuition. 28
FLORIDA CPA TODAY | FALL 2019
The Bond Foundation board plans to continue supporting the FICPA Scholarship Foundation and the FICPA for many years to come; both individually and through its Foundation. “I wish more people would realize how helpful this funding is for students and how using the FICPA Scholarship Foundation helps our CPA brand,” said Blakeslee. Most importantly, Derek knows that his financial support is having a positive impact on the next generation of CPAs. Through the Named Scholarship Program, individual and corporate donors may designate which school(s) will receive their scholarship(s). Donors are invited to personally
“I wish more people would realize how helpful this funding is for students and how using the FICPA Scholarship Foundation helps our CPA brand...” — Derek Blakeslee present their named scholarship award(s) to deserving fourth or fifth-year accounting students. “The Named Scholarship Program is a wonderful way for donors to get directly involved with the students, without the responsibility of evaluating applicants, explained Eugene "Bill" Moore, SF president. “Once a donor chooses the school, our Foundation takes care of matching the funds with a deserving Florida accounting student.” JAN DOBSON, CAE, APR, SF sr. director
STAFF REPORT
FAMILY HONORS F. GORDON SPOOR WITH ENDOWED SCHOLARSHIP
F. Gordon Spoor
Incoming FICPA Chair W.G. Spoor, along with his siblings James “Rusty” Spoor, Mathew L. Spoor, and Danielle Cole were looking for a special birthday present for their dad and longtime CPA, Gordon Spoor. They decided on a gift that will honor their dad into perpetuity — an FICPA Scholarship Foundation Endowed Scholarship.
The F. Gordon Spoor Endowment will fund a half scholarship each year to a deserving 4th or 5th-year accounting student at the University of South Florida, St. Petersburg or Tampa campus. Gordon Spoor, CPA, PFS, CGMA is principal at Spoor Bunch Franz in St. Petersburg. He founded Spoor + Associates in 1974, after graduating from USF and is a past member of the FICPA Scholarship Foundation’s Board of Trustees.
An active FICPA member since 1980, Gordon was awarded the FICPA Presidential Service Award for his efforts as the lead representative on the FICPA’s Florida Uniform Principal and Income Act task force. He served on the FICPA Board of Governors, is a multiple winner of the outstanding CPE discussion leader
award, and has a long committee service record including chairing the State Legislative Policy and Federal Taxation Committees. He also is an AICPA member and was a member of the AICPA Tax Executive committee from 2012-16. “Endowments change lives — and the future of the profession,” said SF President Eugene “Bill” Moore. “Planned giving gifts like this one from the Spoor children to their dad are a double-win, providing a lasting tribute and helping tomorrow’s leaders of the profession.” For information about the Named Scholarship Program, Endowments and other ways to give, please contact scholarships@ficpa.org or visit www.ficpa.org/sf. JAN DOBSON, CAE, APR, SF sr. director
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STAFF REPORT
Foundation Awards 67 Fall Scholarships During the fall 2019 semester, the FICPA Scholarship Foundation awarded 74 scholarships to accounting students from 26 Florida universities. Congratulations to the following recipients. Applications for 2020 scholarships now open. Visit scholarships.ficpa.org.
4th and 5th-year Scholarship Recipients and presenters across Florida, fall 2019.
FALL 2019 SCHOLARSHIP RECIPIENTS
Barry: Trevor Holden Bethune-Cookman: Chakia Grate, Flagler St. Augustine: Ryann Coppedge Flagler Tallahassee: Renee Coburn FLA A&M: Wicliff Fleurizard FLA Atlantic: Evelyn Abad, Clara Arango, Karlena Burch and Austin Dahlstrom FLA Gulf Coast: Stacy DiNardo FLA Inst. of Technology: Nicholas Driscoll, Ryan Fink, Shannon Kelley FLA International: Loidys Scott, Ingrid Hernandez, Daniel Weiland FLA Southern: Daniel Knapp, Edgar Sandoval, Madelyn Snodgrass, Sarah Yannick, Charles Gotsch, Hunter Harildstad JAN DOBSON, CAE, APR, SF sr. director
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FLORIDA CPA TODAY | FALL 2019
FLA State: Will Amouzou, Stephen Atkins, Alejandro Barnichta, Joseph Bianco, Julia Blair, Audrey Coleman, Bradford Heckman, Michael Scola, Jamiel Shillingford Hodges: Loyda Fernandez Indian River: Jason Drake, Cynthia Fulmer, Becky Wich Jacksonville U: Jacqueline Hodskins Southeastern: Jacqueline St. John St. Leo: Jacob Wolstenholme, Theresa Kimball, Gregory Miller Stetson: Mark Hodae, Ivan Veramkovich U. Central FLA: Malcom Brown, Ashley Callahan, Douglas Kersey, Eleni Pampoukis, Samir Fikry, Angela Pitino, Michele Roby, Caitlin Mingonet
U. FLA: Ana Castro, Elliott Karr, Collin Kosuch, Andres Padilla, Jake Pagano, Rachel Moore U. Miami: Marshelle Davis U. N. FLA: Nathaniel Kauffman, Crystal Menza, Nicole Ordway, Houston Wilson U. S. FLA – Sarasota/Manatee: Elizabeth DeJong, Katie Kroos-Roberts U. S. FLA – St. Petersburg: Scott McMaster, Heather Shamblin, Suzanne Smith U. S. FLA – Tampa: Christopher Champlin, Hanna Gonsalves, Ethan Moses, Sharleen So U. of Tampa: Kristine Davis U. W. FLA: Claudia Griswell, Tatiana Kakliauskas, Christian Watkins
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CPAS IN THE SPOTLIGHT
FORT MYERS
ST. PETERSBURG
HUGHES SNELL, PA, CERTIFIED PUBLIC ACCOUNTANTS
CONCANNON MILLER
Ryan Moore Catherine Palmisano
Aaron Selka
Hughes, Snell & Co., P.A., Certified Public Accountants and Consultants announces Catherine Palmisano, CPA, and Aaron Selka, CPA, have received the AICPA Advanced Defined Contribution Plans Audit Certificate.
Congratulations to the Fall 2019 CPAs in the Spotlight! For more news about FICPA members, visit CPAs in the Spotlight at ficpa.org/cpaspotlight. Please email submissions for CPAs in the Spotlight to Communications@ficpa.org.
Announcements published on this page are limited to news focusing on FICPA members, including promotions and new hires; speeches at professional conferences and other news, such as recognition of business achievements. We do not publish FICPA committee appointments because of space limitations.
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FLORIDA CPA TODAY | FALL 2019
Laura Guidry
Tammie Yearwood
Lauren Wieser
Concannon Miller announces the following staff promotions:
TALLAHASSEE THOMAS HOWELL FERGUSON PA CPAs
Renn Vickers
Kayla Twogood
Lorelle Chapman
Madeline Ruttenbur
Matthew Walker
Nick Gilpin
Jorge Rivera
Dennis Gallant
Ryan Moore, CPA, CVA, CGMA, from Manager to Senior Manager. He is a leader in the firm’s niche serving McDonald’s Franchisees. Tammie Yearwood, CPA, from Manager to Senior Manager. She heads the firm’s Estate & Trust Services team. Laura Guidry, CPA, from Staff Accountant to Senior Staff Accountant. She works in the firm’s McDonald’s Group. Lauren Wieser, CPA, from Staff Accountant to Senior Staff Accountant. She works in the firm’s Accounting, Audit & Tax Group.
STUART MARI HUFF C.P.A., P.A.
Mari Huff C.P.A., P.A. has promoted Daniel Ranchurejee to Senior Accountant and congratulates him on receiving his Master of Accounting degree.
Thomas Howell Ferguson P.A. CPAs, welcomes Renn Vickers to its Assurance Services Dept. and Kayla Twogood as a Senior in the Tax Services Dept. The firm also announces the following promotions. Assurance Services Dept.: Lorelle Chapman and Madeline Ruttenbur to Senior, and Matthew Walker to Senior Manager. Tax Services Dept.: Nick Gilpin and Jorge Rivera to Managers, Dennis Gallant to Director and Bainbridge Market Leader.
CPAS IN THE SPOTLIGHT
TALLAHASSEE (CONTINUED) THOMAS HOWELL FERGUSON PA CPAs
THF’s Allison Harrell has joined the Governor’s Club Board of Governors and Andrea Medley has joined the American Red Cross North Florida Region Board.
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Paul Dunham, of the CBIZ Tampa Bay office has been promoted to co-tax practice leader. Dunham joins Dave Janosek and assumes Paul Dunham responsibilities for practice growth, financial management and results for the tax practice, coordinating local technical and quality efforts with the company's National Tax Office.
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Martin R. Woods, CPA, of Caler, Donten, Levine, Cohen, Porter and Veil, P.A. (CDL) has been promoted to Shareholder. Woods Martin Woods will join the Firm’s 12 Shareholders in advancing client services, professional talent recruitment and growth opportunities.
FALL 2019 | FLORIDA CPA TODAY
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Notice of Regular Council Meeting FICPA OFFICIAL NOTICE In compliance with Article XI, Section 6 of the FICPA Bylaws, be it known that the regular meeting of the FICPA Council will be held at 2:00 p.m. on Saturday, Jan. 25, 2020 at Fenway Hotel in Dunedin, FL.
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FLORIDA CPA TODAY | FALL 2019
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THE LEARNING YOU NEED. THE FLEXIBILITY YOU WANT.
On-site learning. Choose the time, date and instructors for your customized CPE. The FICPA wants to be your strategic learning partner. We offer customized On-site training for groups of 15 or more participants. Options range from 4-hour sessions to multi-day training events. The FICPA partners with national learning providers, allowing us to bring current topics to firms and businesses at your convenience.
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FICPA Offers Unbeatable CPE Opportunities You can earn CPE year–round with the FICPA's wide variety of CPE offerings. Each year, the FICPA schedules 15 conferences and two trade shows — especially for you, our members. Our conferences and trade shows are developed by a committee of your peers, bringing you current updates that are delivered by national and international speakers. Here is a list of our upcoming courses. Find courses that are right for you and register online today!
TO SEE ALL FICPA CONFERENCES & TO REGISTER VISIT:
FICPA.ORG/CONFERENCES
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FLORIDA CPA TODAY | FALL 2019
SAVE THE DATE FOR THESE UPCOMING EVENTS
VALUATION, FORENSIC ACCOUNTING & LITIGATION SERVICES CONFERENCE
Ft. Lauderdale + Live Stream January 9-10, 2020 FICPA.ORG/VFALS
Miami + Live Stream Bootcamp: January 15, 2020 (Bootcamp not Live streamed)
Conference: January 16-17, 2020 FICPA.ORG/ITC
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Tampa + Live Stream
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March 26 - 27, 2020
April 23 - 24, 2020
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May 28 - 29, 2020
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FALL 2019 | FLORIDA CPA TODAY
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Ongoing change. Ongoing learning.
April 23-24, 2020
Orlando + Live Stream
• CPE: Up to 17
The FICPA Health Care Industry Conference is specifically designed for CPAs, CFOs, and other financial officers working in Florida’s health care industry. With health care finance constantly evolving, this event keeps you up-to-speed on new rules and regulations.
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