November/December 2010 - Florida CPA Today | Volume 26, Number 6 by Florida Institute of CPAs

contents Volume 26, Number 6

EXECUTIVE EDITOR AND CEO-EXECUTIVE DIRECTOR Kathryn B. Anderson, CAE SR. DIRECTOR OF MARKETING & COMMUNICATIONS Jan Dobson, CAE EDITOR Suellen D. Wilkins GRAPHIC DESIGNER Loleta K. Bolden PUBLICATIONS COORDINATOR Dianne Dearduff EDITORIAL COMMITTEE William C. Quilliam, CPA, Ph.D., Chair Douglas Day, CPA, Vice Chair Walter C. Copeland, CPA • Lynda M. Dennis, CPA Cynthia Fernald, CPA • David Hochsprung, CPA Michael Kridel, CPA • Troy Y. Manning, CPA All articles submitted to Florida CPA Today are subject to technical review, Editorial Committee review, space availability and editing requirements and restrictions. Please contact the editor before submitting unsolicited manuscripts. Florida CPA Today publishes letters to the editor in its Members’ Forum. For information about the guidelines, visit www.ficpa.org/Content/Members/Tools/Publications/FCT/ LettersToEditor.aspx. Statements expressed herein are those of the identified authors and not necessarily those of the Florida Institute of Certified Public Accountants, Inc., 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’s qualifications or detracts from its ethical and professional standards. Florida CPA Today is published bimonthly by the Florida Institute of Certified Public Accountants, Inc., P.O. Box 5437, Tallahassee, FL 32314. Telephone: (850) 224-2727 or (800) 342-3197. (Street address: 325 West College Ave., Tallahassee, FL 32301.) Visit our website at www.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. For display advertising information, contact the FICPA Marketing Department at (850) 224-2727. © 2010 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.

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November/December 2010

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PRESIDENT’S MESSAGE 5 EDF Nears Deadline for $1 Million Challenge

COVER STORY 6 GASB 54 Changing the Reporting of Fund Balance

FEATURES 8 Going Concern Evolving Standards and Management’s Future Role 12 FICPA Proposes Peer Review Licensing Requirement 20 Everything Added Up at the 25th Annual Accounting Show 22 Red Flags Rule Get Ready to Comply

DEPARTMENTS 14 FICPA NewsFlash Digest 16 Governmental Affairs 18 Educational Foundation 25 DOR Update 30 Student Outreach 32 News Briefs 34 New Members 36 Marketplace 37 Kudos 38 On the Move

27 Industry Icons Lifelong Learning is Secret to Hudson’s Success

Mission Statement Florida CPA Today is an award-winning, professional publication for more than 18,500 members of the Florida Institute of CPAs. Our magazine: Allows members to share their professional expertise on technical issues Keeps members informed about FICPA events and advocacy Highlights the people and issues that affect Florida CPAs Recognizes the professional accomplishments of our members

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ADVERTISERS’ INDEX: Accounting Practice Sales............................................... 35 ADP............................................................................11, 26 AON Insurance Services............................................15, 29 Audimation...................................................................... 14 Bank Atlantic..................................................................... 2 CPS Investment Advisors (CPAlliance™)....................... 23 Fifth Third Private Bank................................................ 22 LTC Global......................................................................... 4 Nova Southeastern University......................................... 10 Penservco......................................................................... 26 PNC.................................................................................. 19 The White Law Group..................................................... 24 Trugman Valuation Associates, Inc................................... 24

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President’s Message

EDF Nears Deadline for $1 Million Challenge

By the time this issue of Florida CPA Today is printed, we’ll have two months to complete our goal of raising $1 million to meet the challenge grant started in memory of James L. Wilcox. I’m excited to report that, at publication time, we’d raised $825,604 in cash – and, including pledges, a total of $898,208. The terms of the challenge require that we meet the goal in cash, so we’re only $174,396 away. This is an important milestone for the 50th anniversary of the FICPA Educational Foundation (EDF). This challenge grant has changed the EDF’s direction. For most of its history, the EDF has distributed all the scholarship funds it received in one year during the next year. We now have created endowments – “the gift that keeps on giving” – that will enhance our ability to help students in need enter our profession. This effort’s success will have an impact on our ability to provide scholarships for many generations to come. Some of our tireless leaders have had endowments given in their names. These will provide annual scholarships to deserving students and leave a legacy of caring in our leaders’ honor. I thank the officers of the Miami-based private foundation, some of whom are FICPA members, for their vision. The funds they donated to enhance minority scholarships, and their challenge to us to raise additional funds, will make a difference in the future of our profession in Florida. It was a simple act of kindness and caring when Ron Thompkins attended the funeral of his lifelong friend and fellow CPA, James L. Wilcox. Ron began a dialog that culminated in the realization of this opportunity. Ron, an FICPA past president and an EDF trustee, has been a leader in our profession for many years. We cannot thank him enough for his assistance in making this a reality. I also thank the EDF trustees, who volunteer their time and talent to raise money annually for scholarships, for their significant participation in this campaign. The trustees are excellent stewards of EDF funds and all Florida CPAs should thank them for their service. I’d be remiss if I didn’t thank the many FICPA members who are active in their Chapters. The Chapters provide significant funds from various efforts in which members participate during the year. Without these funds, we’d have far fewer scholarships. I ask each of you to consider a gift that will help us reach our goal. This is the time of year when we celebrate Thanksgiving and the religious holidays. Leaving a legacy is an act of caring about the future of our profession, which has provided a good living for you. I hope you’ll remember the EDF now, and in your future giving plans.

Michael R. Pender, CPA

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FLORIDA CPA TODAY

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GASB 54 Changing the Reporting of Fund Balance

By Troy Manning, CPA

The reporting of fund balance has considerable significance for internal and external users of governmental financial information, especially in the current economic environment. Most financialstatement readers understand that fund balance represents the difference between assets and liabilities. However, the classification of fund balance provides financial-statement users with critical information relating to a government’s liquidity (i.e., the ability to meet short term operating expenditures and repay long-term debt when due); the amounts available to balance the subsequent year’s budget; and the resources available to finance particular activities, programs or projects. The Governmental Accounting Standards Board (GASB) has issued Statement 54 Fund Balance Reporting and Governmental Fund Type Definitions. It is effective for all government financial statements that report governmental funds for periods beginning after June 15, 2010. Any reclassifications of fund balance that result to conform to the provisions of Statement 54 must be applied retroactively by restating fund balance for all prior periods presented. The primary purpose of Statement 54 is to enhance the usefulness of fund balance information by establishing classifications and definitions that are easy to understand. Statement 54 also will improve consistency between fund balance information reported in government-wide statements and 6

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governmental fund financial statements. Overall, this standard will significantly impact the financial reporting of fund balance and the disclosures relating to fund-balance classification policies and procedures. The initial assessment of the time to implement a new government accounting standard is commonly underestimated. Therefore, governments with numerous governmental funds should understand the technical requirements of Statement 54 and plan to assess the financial reporting implications as early as possible. The implementation process typically requires research and collaboration with individuals outside the finance department to correctly implement Statement 54.

Governmental Fund Reporting The revised fund balance classifications include a hierarchy based primarily on the extent to which a government is bound to honor constraints on the specific purpose for which amounts in those funds can be spent. The fund balance classifications, in order of the relative strength of the spending constraint that is imposed externally and internally, are as follows: • Non-spendable fund balance represents amounts that cannot be spent, such as inventories; prepaid amounts; property held for resale; and long-term notes receivables. It also includes amounts

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that are legally or contractually required to be maintained intact, such as the corpus of a permanent fund. • Restricted fund balance represents amounts that are restricted to specific purposes that are either “externally imposed by creditors, grantors, contributors or laws or regulations of other governments; or imposed by law through constitutional provisions or enabling legislation.” The definition of restricted fund balance is the same as the definition of restricted net assets used in government-wide financial reporting. This should result in consistent reporting of amounts that are restricted fund balances in the governmental-fund financial statements, and amounts that are restricted net assets in the governmentwide financial statements. • Committed fund balance represents “amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision-making authority.” Because of the differences in the powers accorded to governments, Statement 54 does not define the decision-making authority that would represent the highest level of authority that could undertake a formal action to commit fund balance. However, the highest level of decisionmaking authority should be high enough to represent the governing body as a whole and require the same type of action to remove or change the amounts committed. For certain local governments, the highest level of decision-making authority may reside in the government’s ability to pass ordinances and resolutions. For certain special-purpose governments, the highest level of decision-making authority may be a motion that the board passed. Statement 54 requires the formal action to commit fund balance to take place before the end of the reporting period, even when the exact amount cannot be determined until after the year end. • Assigned fund balance represents “amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed.” The authority for making an assignment of fund balance does not require the government’s highest level of decision-making authority, but rather an assignment made by an authorized body, such as a budget or finance committee. An assigned fund >>> www.ficpa.org

balance would be comparable to a designation of fund balance that was defined in the pre-Statement 54 fund balance classification model. • “Unassigned fund balance is the residual classification of the general fund.” The general fund is the only fund that reports a positive unassigned fund balance amount. This is because it represents the fund balance that has not been restricted, committed or assigned to specific purposes. If other governmental funds, such as a special revenue or capital project fund, have incurred expenditures for specific purposes that have exceeded the amounts in the fund that are restricted, committed and assigned to that purpose, the residual (or negative balance) should be classified as unassigned. Ajay Gajjar, assistant finance director of the Hillsborough County Clerk of the Circuit Court, indicated Hillsborough County plans to implement Statement 54 early. Their analysis of the classification of fund balances based on the new definitions was relatively straightforward. The Florida Statute, ordinance or other legal authority and information needed to make the determination was shown as a part of the fund or sub-fund title in their accounting system, in most cases. Other governments may need to research, analyze and document the specific external or internal authority that created a constraint to determine the amounts that should be classified as restricted, committed or assigned.

“The primary purpose of Statement 54 is to enhance the usefulness of fund balance information by establishing classifications and definitions that are easy to understand.” www.ficpa.org

Statement 54 also provides guidance on the classification of fund balance amounts set aside under stabilization arrangements; the presentation options for displaying fund balance classifications on the face of the balance sheet; and the reporting of encumbrances. There are also required fund balance disclosures of amounts that are committed and assigned, and the governments’ accounting policy regarding whether it considers restricted or unrestricted amounts to have been spent when an expenditure is incurred for purposes for which both restricted and unrestricted (committed, assigned or unassigned) amounts are available.

Governmental Funds Defined Special revenue funds are “used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.” In addition, the specific revenue sources that are restricted or committed should continue to comprise a “substantial portion of the inflow reported in the fund.” During the initial implementation of Statement 54, governments should assess their special revenue funds to determine if restricted or committed revenues are the foundation of these funds. Governments should base their initial assessments on their expectations about whether a substantial portion of the inflows will be from specific restricted or committed revenue sources. There is no requirement to assess whether each special revenue fund meets the definition on an annual basis. However, when it subsequently becomes apparent that the inflows of a special revenue fund no longer will be substantially restricted or committed, the net resources of the fund should be reported in the general fund. Because of the change in defining a special revenue fund, funds that previously were reported in the financial statement as special revenue funds may be required to be reported in the general fund. Capital project funds “are used to account for and report financial resources that are restricted, committed or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.” This definition reflects the fund balance

classifications of Statement 54. In addition, capital projects funds were broadened to include expenditures for capital outlays that were not included in the previous definition of a capital project fund. Debt service funds “are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest.” This definition was changed only to reflect the fund balance classifications of Statement 54. Permanent funds include funds that “account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s programs.” The definition change does not affect the current reporting of permanent funds. It merely modifies the wording to be consistent with the other definitions in Statement 54. Troy Y. Manning, CPA, specializes in the local governments and not-for-profit sectors as a practitioner, consultant, instructor, speaker and author. Manning is a member of the FICPA Editorial Committee and an instructor for the AICPA and Thomson Reuters.

FLORIDA CPA TODAY

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Going Concern Evolving Standards and Management’s Future Role

When performing a financial statementi audit, the auditor spends a significant amount of time and effort ensuring that the historical financial statements – which management presents on a going-concern basis, in most cases – are in accordance with Generally Accepted Accounting Principles. Going concern is assumed in financial reporting in the absence of significant information to the contrary. Because most entities operate and report as a going concern, there had been minimal attention paid to the required auditor going-concern assessment process and related decision to issue a going-concern opinion. However, as a consequence of the economic crisis and ongoing weak economy during the past few years, the auditor and management have placed a renewed emphasis on the required going-concern assessment process.1 As a direct result of the economic crisis, the AICPA issued an Audit Risk Alert, Current Economic Crisis: Accounting and Auditing Considerations. It included a section titled “Consideration of an Entity’s Ability to

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By Lawrence S. Burke, CPA

Continue as a Going Concern.” The Public Company Accounting Oversight Board (PCAOB) issued a Staff Audit Practice Alert, Audit Consideration in the Current Economic Environment. It included a section on the auditor’s consideration of a company’s ability to continue as a going concern. The PCAOB highlighted the guidance in Auditing Standard AU 341A. The standard states that the auditor has a responsibility to evaluate if there is substantial doubt about an entity’s ability to continue as a going concern for a reasonable period of time, not to exceed one year beyond the date of the financial statements. The auditor’s evaluation is based on his or her knowledge of relevant conditions and events that exist at or have

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occurred prior to the date of the auditor’s report. The PCAOB also included a list of “conditions and events that, when considered in the aggregate, indicate there could be substantial doubt about the company’s ability to continue as a going concern for a reasonable period of time.” They include: • Negative trends – for example, recurring operating losses; working capital deficiencies; negative cash flows from operating activities; adverse key financial ratios • Other indications of financial difficulties – for example, default on loan or similar agreements; arrearages in dividends; denial of usual trade credit from suppliers; restructuring of debt; noncompliance with statutory capital requirements; need to seek new sources or methods of financing to dispose of substantial assets • Internal matters – for example, work stoppages or other labor difficulties; substantial dependence on the success of a particular project; uneconomic long- >>>

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term commitments; need to significantly revise operations • External matters that have occurred – for example, legal proceedings, legislation or similar matters that might jeopardize a company’s ability to operate; loss of a key franchise, license or patent; loss of a principal customer or supplier; uninsured catastrophe such as a drought, earthquake or flood Although each of these indications are intended to be part of the auditor’s consideration as part of the going concern assessment, AU 341A also requires that the auditor obtain evidence and feedback from management – which, understandably, can be biased. As part of the going-concern assessment, the auditor is required to use subjective judgment because neither the auditor nor management ultimately can predict the future. Although such judgment is based on audit evidence, it still can differ from management’s perspective, especially in light of the current economic uncertainty. In those cases, a controversial situation could arise between the auditor and management. The auditor has an imposed obligation to perform an assessment that many feel should reside with management. Interestingly, past

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academic studies have found audit firms have made going-concern qualifications for just over half of the companies that go bankrupt, according to Joseph Carcello, a University of Tennessee professor who sits on the PCAOB’s advisory group. In 2008, the Financial Accounting Standards Board (FASB)2 issued an exposure draft (ED) titled Going Concern. It clarifies that an entity and its respective management shall have the primary responsibility for assessing its ability to continue as a going concern. The initial Going Concern ED was not without controversy. Several areas generated feedback from respondents. The ED defines the time horizon during which an entity shall evaluate its ability to continue as a going concern as “at least, but not limited to, 12 months from the end of the reporting period.” This is consistent with the time horizon in International Accounting Standard (IAS) 1. However, this definition is not consistent with the time horizon used in AU 341, which is defined as not to exceed one year beyond the date of the financial statements. After considering respondents’ comments about the initial ED, the FASB has recommended the time horizon during which management shall take into account available information generally will be 12 months from the end of the reporting period. However, certain events that are expected to occur or are reasonably foreseeable beyond the 12 months, and would materially affect the assessment, are considered part of the time horizon. The

new FASB-recommended time horizon was based on the concept of avoiding the issues associated with a brightline time horizon test. The current recommendation is more in line with a principles-based approach. However, in discussing the new time-horizon recommendation, the FASB stated that it does not intend for the assessment of the period beyond a year to be open ended or indefinite. The FASB also did not elect to specifically define a going concern. Instead, the FASB recommended that the following required disclosures be made when “management, applying commercially reasonable business judgment, is aware of conditions and events that indicate, based on current facts and circumstances, that it is reasonably foreseeable that an entity may not be able to meet its obligations as they become due without substantial disposition of assets outside the ordinary course of business, restructuring of debt, issuance of debt, issuance of equity, externally or internally forced revisions of its operations or similar actions. a. Pertinent conditions and events giving rise to the assessment, including when such conditions and events are anticipated to occur, if reasonably estimable b. The possible effects of those conditions and events c. Possible discontinuance of operations d. Management’s evaluation of the significance of those conditions and events and any mitigating factors e. Management’s plans to mitigate the effects of the conditions and events, whether those plans can be effectively implemented, and the likelihood that such plans will mitigate the adverse effects. >>> PAGE 10

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f. Information about the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities.” Other ED-respondent comments addressed the adoption and application of the liquidation basis of accounting. Accordingly, during its public Going Concern project meeting deliberations, the FASB recommended that following principle based guidance be used: 1. “An entity should prepare financial statements on the going concern basis unless liquidation is imminent. Liquidation is imminent if (a) a plan of liquidation has been approved by the entity’s owners or (b) the plan to liquidate is being imposed by other forces and it is remote that the entity will become a going concern in the future. If liquidation is imminent, an entity’s financial statements shall be prepared on a liquidation basis. 2. Liquidation basis financial statements should reflect relevant information about the value of an entity’s resources and obligations in

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liquidation. Such financial statements should consist of a Statement of Net Assets in Liquidation and a Statement of Changes in Net Assets in Liquidation. An entity that applies the liquidation basis of accounting should measure the items in its financial statements to reflect the actual amount of cash that the entity expects to collect or pay during the course of liquidation. This measurement should include, but is not limited to, recognition of (a) costs to dispose of assets or liabilities and (b) expense and income to be incurred through liquidation. The measurement bases and significant assumptions used should be disclosed.” The FASB is expected to reissue the Going Concern ED in the fourth quarter of 2010 for additional public comment with the intent of having it finalized in the first quarter of 2011. It is expected that the updated Going Concern ED, once finalized, will clarify to the financial-statement users that management, and not the auditor of an entity, is primarily responsible for assessing the going concern of their respective entity.

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Lawrence S. Burke, CPA, is a managing director of Sunera, LLC, a leading provider of governance, risk and controls consulting services throughout the United States and Canada. Burke serves on the FICPA’s Accounting Principles and Auditing Standards Committee. _____________________ Note: This article does not address GASB No. 56, which requires management of governments to address going concern issues. 1 In March 2009, the Governmental Accounting Standards Board (GASB) issued Statement No. 56, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards, which established accounting and financial reporting standards for relate- party transactions, subsequent events, and going-concern considerations for all state and local governments. As it relates to going concern considerations, this standard states preparers of financial statements for state and local governments “have a responsibility to evaluate whether there is substantial doubt about a government’s ability to continue as a going concern for 12 months beyond the financial statement date.” In addition, the standard requires preparers to consider information that is currently known to the government that may raise substantial doubt shortly after this 12-month period and site as an example “within an additional three months.” The requirements of Statement No. 56 were effective upon its issuance. 2 See footnote 1 for a discussion of the requirements for preparers of financial statements for state and local governments. i

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FLORIDA CPA TODAY

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FICPA Proposes Peer Review Licensing Requirement

By Dan Hevia, CPA FICPA Board of Governors

In his September/October President’s Message, Mike Pender discussed the FICPA’s top legislative priority – peer review as a firm licensing requirement. This article provides background about this legislative initiative and highlights the key parts of the proposal. Florida and Delaware are the two remaining states that have not adopted peer review as a state licensing requirement. The National Association of State Boards of Accountancy (NASBA) supports a peer-review licensing requirement and includes one in its model accountancy act. Federal agencies, such as the Government Accountability Office (GAO), have incorporated peer review into their own standards. The AICPA has had a peer-review membership requirement since 1988. Nationally, more than 30,000 CPA firms now participate in the AICPA Peer Review Program. Peer review has proven to be a valuable tool in improving the quality of CPA firms’ accounting and auditing practices. It also provides users of those services with reasonable assurance that

CPAs are complying with professional standards. In 2006, the FICPA created a task force to consider the pros and cons of peer review as a requirement for firm licensing. The task force was comprised of a broad base of the membership by firm size, nature of practice and members’ initial attitudes about peer review. That task force, and a follow-up membership survey, resoundingly concluded that a peer review licensing requirement was needed in Florida, and that a significant majority of the membership supported it. In 2007, the FICPA Board of Governors formally adopted a legislative policy that endorsed the concept of peer review as a firm-licensing requirement. The FICPA believes a peer-review requirement will have a positive impact on the Florida accounting profession, and will provide valuable protection to Florida consumers. During its deliberation, the task force learned that those who aren’t familiar with the peer review process hold several misconceptions about peer review. And

“Florida and Delaware are the two remaining states that have not adopted peer review as a state licensing requirement.” 12

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when those misconceptions are clarified, the level of apprehension and opposition to peer review greatly decreases. With that in mind, the FICPA is reaching out to its members, as well as users of CPAs’ attest services, to communicate the scope and goal of the proposed peerreview requirement. The proposal will require that all CPA firms that practice in Florida undergo a peer review of their accounting and auditing practice once every three years in order to renew their Florida CPA firm license. This proposal includes several safeguards to ensure that the focus of peer review remains educational and remedial, helping CPA firms improve the quality of their accounting and auditing practices.

Requirement Won’t Apply to All Firms This requirement will follow the AICPA Peer Review Program Standards and participation in the AICPA Peer Review Program will meet this statutory licensing requirement. Therefore, this proposal will not impact AICPA member firms because those performing attest services already undergo peer review. Approximately 75 percent of FICPA members are AICPA members. The proposal will not impact CPAs in private industry, education and >>> www.ficpa.org

government because the requirement applies only to CPAs in public practice. The proposal will not impact CPA firms that limit their practices to tax or consulting services. The requirement only applies to firms that perform attest services, including compilations. For CPA firms that are required to have a peer review, the peer review will cover only the firm’s accounting and auditing practice and the related quality-control system. It will not extend to other aspects of a firm’s practice, such as tax or consulting services. Firms that are subject to inspection by the Public Company Accounting Oversight Board (PCAOB) also will be subject to peer review for the non-SEC portion of their accounting and auditing practice.

Results will be Confidential The peer review results of individual firms will not be made public. The results will remain confidential between the reviewed firm, the reviewer and the Peer Review Committee. With very limited exceptions, there will not be any reporting of individual peer review results to the Board of Accountancy or any other government or ethics body.

The FICPA continues to support the current statutory requirement that exempts all information collected in a peer review from discovery in state court. We anticipate that reporting to the Board of Accountancy will be limited to a firm affirming on its firm license renewal that it has completed a peer review within the past three years. A firm may, however, voluntarily make its peer-review report publicly available. A firm may provide copies in engagement proposals, for example, or become a member of an AICPA Audit Quality Center. There will be very limited exceptions to the confidentially and reporting provision. Exceptions include instances in which a firm is terminated from the peer-review program for material non-cooperation, and instances in which a firm fails two consecutive peer reviews. In these instances, the Board of Accountancy would be notified.

has developed draft legislation and rules for Florida Board of Accountancy consideration. We anticipate introducing this information during the 2011 Legislative Session. There likely will be a phase-in of the requirement for firms as they renew their licenses, although those details have yet to be finalized. Firms that will be subject to this requirement and have not yet undergone a peer review should start planning for one. The FICPA invites your comments and questions about this legislative proposal. The January/February 2011 edition of Florida CPA Today will include a followup article that will discuss some of the important aspects of peer review, such as the differences in peer review for firms that do and do not perform audits; cost considerations; and how peer reviewers are selected.

FICPA to Introduce Legislation in 2011

Dan Hevia is chair of the AICPA Peer Review Board and a member of the FICPA Board of Governors. He is a Florida CPA and the managing director of Hevia Beagles & Company in St. Petersburg. He can be reached at danhevia@heviabeagles.com.

The FICPA Board of Governors believes now is the time to be proactive in promoting this enhancement to Florida’s accountancy laws and rules. The FICPA

Meeting your clients’ needs along with your own professional needs is a true balancing act.

Join today. It’s free. It’s easy. It just makes sense. Visit www.ficpa.org/sections, or call (800) 342-3197 (in Florida) or (850) 224-2727, or e-mail sections@ficpa.org.

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FLORIDA CPA TODAY

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FICPA NewsFlash Digest

To bring FICPA members the most current news and information in today’s fast-paced business environment, the FICPA compiles NewsFlash, a timely assortment of news events happening in the profession. The newsletter is e-mailed every two weeks, typically on Thursday afternoons. Here are some of the most popular recent FICPA NewsFlash features. To view the full stories and other NewsFlash briefs, visit our archives at www.ficpa.org/members/newsflash.

process, is considered a “creditor” under the current Red Flags Rule that has yet to go into effect.

Oct. 7, 2010 IRS Activates New PTIN System – All paid tax return preparers must apply. The IRS deployed a new preparer tax identification number (PTIN) registration system as a component of its initiative to register and regulate paid tax-return preparers.

Sept. 23, 2010

Oct. 21, 2010 Robert Half Releases 2011 Guide to Accounting and Finance Salaries – With some signs pointing to a slight uptick in financial hiring, compensation for accounting and finance professionals should see commensurate gains. According to Robert Half’s recently released 2011 Salary Guide, starting salaries in these fields are expected to rise an average of 3.1 percent during the coming year. Get Ready to Comply: FTC to Begin Enforcement Dec. 31 – The Federal Trade Commission will begin enforcement of its Red Flags Rule Dec. 31, 2010 for financial institutions and creditors subject to the FTC’s jurisdiction – including CPA firms. Any business that bills customers for sales or services after they’ve been performed, even in the normal course of a traditional billing

Tax Advisers Must Prepare for Inevitable Tax Increase – Congressional bickering about the upcoming expiration of tax cuts implemented during the George W. Bush administration is making small-business owners nervous. Tax advisers should prepare now for an inevitable long-term tax increase – no matter which political party wins control of Congress after midterm elections.

Sept. 9, 2010 Tech Tip: How to Automatically Record Skype Calls – Skype is a great way of calling people from all over the world. However, it lacks the call-record feature. Use the MP3 Skype Recorder program to record all your incoming and outgoing Skype calls. The output audio’s format is MP3, so it’s easy to listen to and share recorded calls.

FICPA OFFICIAL NOTICE In compliance with Article IV, Section 6 of the FICPA Bylaws, be it known that a regular meeting of the Board of Governors of the Florida Institute of Certified Public Accountants will be held Thursday, December 9, 2010, at 9:00 a.m. at the FICPA Administrative Office, Tallahassee, FL.

FLORIDA CPA TODAY

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FLORIDA CPA TODAY

| November/December 2010

Leaders of the PAC Recognizing those who contribute to the Florida CPA/PAC By John W. Johnson, FICPA Director of Governmental Affairs

Gerald J. Cavanaugh, CPA Nov. 6, 1919-Dec. 19, 2009 Gerald Cavanaugh moved from Rochester, N.Y. to Sarasota in the early 1970s. He opened a small tax office to keep him busy in his “retirement” years. The firm grew from two employees – he and his wife, the bookkeeper – to a total of 18 employees in two cities, Sarasota and Venice. Cavanaugh, who joined the FICPA in 1971, recognized the importance of protecting the trust, confidence and esteem of the CPA certificate by contributing annually to the Florida CPA/PAC. He never missed a year. In his memory, Cavanaugh & Co., CPA, LLP has decided to give an annual contribution of $500 in Cavanaugh’s name, to keep his tradition alive.

16 16 | | FLORIDA FLORIDACPA CPATODAY TODAY | | November/December November/December2010 2010

While standing guard for the profession, the FICPA is committed to actively participating in the public-policymaking process. Funding is necessary to help elect candidates who are educated about the issues that affect CPAs and the way they practice. Through the Florida CPA/PAC, FICPA members can help elect business-minded candidates to the Florida Senate, House of Representatives and Cabinet. The Florida CPA/ PAC – a separate entity from the FICPA – is supported solely by voluntary contributions. The PAC is committed to protecting the truth, confidence and esteem the public associates with the CPA certificate. Most Florida CPA/PAC members contribute individually. But through a special fundraising effort, the Florida CPA/PAC asked the top 250 firms in Florida to consider making a contribution on their firm’s behalf. We thank the 14 firms that contributed to the CPA/PAC during this campaign. The Florida CPA/PAC values and encourages FICPA members’ political participation. We recognize each participating firm and managing partner for their support and generosity (see page 17). These people are a part of an elite group of members who recognize the power of political activity. Again, we thank each of you who participated in this very worthwhile effort. To learn more about the Florida CPA/PAC, visit the FICPA’s website at www.ficpa.org/Content/ GovernmentalAffairs/PAC.aspx. Or, contact John Johnson, FICPA director of Governmental Affairs, at (850) 224-2727, Ext. 203, or govaffairs@ficpa.org. www.ficpa.org www.ficpa.org

P L AT I N U M C LU B $5,000 Carr Riggs & Ingram LLC

Kaufman, Rossin & Co. James R. Kaufman

William H. Carr

Miami, FL

Florida Cities: St. Augustine, Crestview, Destin, Gainesville, Marianna, Mary Esther, Niceville, Orlando, Palatka, Panama City, Panama City Beach, Tallahassee & Tampa Bay

William H. Carr

James R. Kaufman

G O L D C LU B $2,500 Morrison, Brown, Argiz & Farra, LLP

Thomas Howell Ferguson, PA

Antonio L. Argiz

Winston K. Howell Tallahassee, FL $2,500.00

Miami, FL $2,000.00 Antonio L. Argiz

S I LV E R C LU B $1,000

Barnes & Associates CPAs, P.A. Joseph B. Barnes Ft. Lauderdale, FL

B R O N Z E C LU B $500 Frederick Carroll III

Jeffrey M. Tuscan, CPA

Irving L. Goldstein

Cavanaugh & Company, CPA, LLP In Memory of Gerald J. Cavanaugh Sarasota, FL

Tuscan & Company, P.A. Jeffrey M. Tuscan, CPA Fort Myers, FL

GLSC & Company, PLLC Manuel M. Garcia Miami, FL

Goldstein, Zugman, Weinstein & Poole, LLC Irving L. Goldstein Ft. Lauderdale, FL

Batts Morrison Wales & Lee Michael E. Batts Orlando, FL

Carroll and Company CPAs Frederick Carroll III Tallahassee, FL

Concannon, Miller & Co., P.C. John G. Estock St. Petersburg, FL

Becher, Nall, Brydon, Spahn & Co. Daniel W. Nall Coral Gables, FL

Michael E. Batts

OTHER CONTRIBUTORS $250

Locke & Associates, CPAs Charles L. Locke St. Petersburg, FL

Payments, contributions or gifts to the Florida CPA/PAC are not deductible as charitable contributions for federal income tax purposes. www.ficpa.org

FLORIDA CPA TODAY

| November/December 2010

Educational Foundation

FICPA Educational Foundation Closes in on $1 Million Challenge Grant

By Jason Zaborske, FICPA Educational Foundation Development Manager

In January 2009, the FICPA Educational Foundation (EDF) announced it had received a $1 million challenge grant from a Miami-based private foundation. For its 50th anniversary, and in memory of the late James Wilcox, CPA, the EDF received the gift to meet the Florida accounting profession’s growing needs. The contribution came with a condition, though – Florida CPAs had until Dec. 31, 2010 to raise $1 million in order to receive a matching $1 million. As of Oct. 31, 2010 we were more than three-quarters of the way there! During the past 21 months, CPAs have contributed more than $825,000 in cash – and including pledges, a total of $898,000. This has already allowed the EDF to start many new scholarship programs to benefit accounting students. But we’re not done yet! We still have to raise $175,000 to meet our match and pull down as many scholarship dollars as possible. “We’re very close,” said Michael R. Pender Jr., FICPA president and chair of the 50th Anniversary Leadership Committee, which is raising awareness and dollars for the challenge. “It’s amazing what we can do when we work together to accomplish a goal. I don’t think many people expected us to get this far, but we have some dedicated

FLORIDA CPA TODAY

| November/December 2010

To find out how you can become a $50 for 50 member, or to learn about new ways your firm can help, please visit www.ficpa.org/ edfoundation.

CPAs who work in this state and who want to make a difference. The fact is there’s no bigger difference-maker than matching contributions.” “This year we were able to provide $313,000 in scholarships to Florida accounting students” said Jason Zaborske, development manager for the FICPA Educational Foundation. “This is a record number of scholarship dollars, and during difficult economic times, students really need it,” Zaborske said. From now until Dec. 31, 2010, CPAs have the opportunity to “double their impact.” Every dollar the EDF receives will be matched, and will help provide more students with scholarships to pursue accounting degrees. Your participation and dedication have brought the EDF this far, and your help is needed to make it to the finish line. For more information about the 50th Anniversary Campaign contact Jason Zaborske, FICPA Educational Foundation development manager, at (800) 342-3197, Ext. 417, or edfound@ ficpa.org. The Florida Institute of Certified Public Accountants’ Educational Foundation Inc. is recognized as tax exempt under section 501(c) (3) of the Internal Revenue Code. Contributions are tax deductible to the fullest extent of the law. A copy of the official registration (#CH2614) and financial information may be obtained by calling the Florida Division of Consumer Services at (800) 435-7352 (toll free in Florida). Registration does not imply endorsement, approval or recommendation by the state.

www.ficpa.org

FLORIDA CPA TODAY

| November/December 2010

Everything Added Up at the 25th Annual Accounting Show

By Wendy Johnson, CPE Conference Manager

The FICPA continued its tradition of excellence at the 25th Annual Accounting Show. This year’s show took place Sept. 29Oct. 1 at the Broward County Convention Center in Fort Lauderdale. With expert speakers delivering more than 50 sessions, the show offered a variety of topics and gave attendees the opportunity to earn up to 23 CPE hours. At the discounted member rate of $17.35 per credit hour, the show offered exceptional value. And with almost 900 participants, the show raised the bar by providing worthwhile networking opportunities featuring top accounting and business vendors. The Accounting Shows Committee, a dedicated group of volunteer CPAs, selects Annual Accounting Show topics each year. This year, the committee chose timely educational topics including the economy; fraud; auditing standards; eldercare services; technology; and financial planning. These sessions, as well as a fourhour ethics seminar, were exceptionally well attended. Attendees heard from a variety of expert speakers, including two keynote speakers.

David W. Walker, CPA, president of the Peter G. Peterson Foundation, talked about America’s fiscal responsibility. And Chris Kuehl, PhD, managing partner of Armada Corporate Intelligence, updated attendees on the country’s latest economic trends. “The keynote speakers were by far the best in years! Please continue to bring in people in the know,” one attendee evaluation said. Other highly respected presenters included Cecil “Pat” Patterson Jr., CPA, MBA, president of Patterson & Associates, PA; Eugene Ristaino, CPA, ABV, MT, partner with Isdaner & Company, LLC; Steve Platau, CPA, professor of accounting at the University of Tampa; Linda B. Trugman, CPA, ABV, MCBA, ASA, vice president of Trugman Valuation Associates Inc.; and Daniel J. O’Keefe, CPA, CFE, MBA, shareholder of Moore Stephens Lovelace, PA.

The Show Must Go On With a looming topical storm threatening the early part of the show, FICPA staff contacted speakers to ensure their safe arrival into Fort Lauderdale. Because of potential flight delays, keynote

Attendees take a break in the Exhibit Hall during the 25th Annual Accounting Show. 20

FLORIDA CPA TODAY

| November/December 2010

speaker David Walker was unable to travel to the show. But thanks to the fastacting staff at Walker’s office, as well as the technical staff at the Broward County Convention Center, the FICPA provided a live keynote presentation via video conferencing. FICPA President Mike Pender introduced Walker, who delivered his presentation from the safety of his office in New York. FICPA staff collected questions from the audience and relayed them for Walker’s response.

Sustainability on the Move The FICPA practiced multiple sustainability policies in an effort to lesson its carbon footprint on our planet. Attendees received all conference material in advance, electronically. Registrants also received their attendee list and evaluations forms via e-mail. On site, pitchers of water and refillable water coolers replaced bottled water to lesson the amount of plastic in land fills. And the oversized attendee bags, made of recyclable material, make great grocery bags! >>>

FICPA members attend one of the many outstanding CPE courses available at the Show. www.ficpa.org

Vendors Showcase Up-to-the-Minute Ideas, Equipment

The Accounting Show was host to almost 100 companies. During breaks throughout the day, attendees explored the show floor and gained hands-on experience with the latest accounting software, tools and technology. Members unwound at the always-popular complimentary cocktail reception on Thursday. Participants returned completed membership surveys to the prize barrel for a chance win a variety of prizes. Giveaways included more than $1,500 in CPE; hotel packages; and Disney theme park tickets. The FICPA Educational Foundation (EDF) also announced the winner of the Blue Hat Raffle, Ira Herschbein, who returned his winnings to the EDF for the $1 million matching grant. The EDF also announced the winners of an array of unusual and luxurious silent-auction items.

FICPA Thanks Sponsors and Committee Members The FICPA accounting shows wouldnâ&#x20AC;&#x2122;t be possible without the generous support of our sponsors. Sponsors of the 25th Annual Accounting Show include ADP, Bisk Education, Thomson Reuters, The Tax Advisor and the AICPA Journal of Accountancy. We thank all of them for their contributions. It is because of the continued dedication of the Accounting Shows Committee that the FICPA can provide the most relevant topics and speakers. Many thanks to these members, who selflessly contribute their time and energy to facilitate this premier CPE event.

2009-2010 Accounting Shows Committee Frank Ward, Chair Chris Moreno, Vice Chair Randee Abramson Alan Campbell Lynn Clements Lenice DeLuca Wayne DeWitt Richard Dotson Gary Fracassi Cindy Gallagher Paulette Holder Stanislav Jansta Sharon Lassar

Jim Luffman Bill Maloney Patty McDougle Rhonda Mowry Mario Nowogrodzki Pat Patterson Jr. Marty Prague Bob Rankin Diane Reich Poornima Srinivasan Denise Stubbs Cheryl Whitehead Donna C. Zeitler

Join Us Next Year! Mark your calendar now for the 26th Annual Accounting Show, Sept. 21-23, 2011 at the Broward County Convention Center in Fort Lauderdale. We hope to see you there! www.ficpa.org

ADP, Bisk Education and Thomson Reuters (top to bottom) were among the generous sponsors of the 25th Annual Accounting Show. FLORIDA CPA TODAY

| November/December 2010

Red Flags Rule: Get Ready to Comply From FTC and AICPA Reports

The Federal Trade Commission (FTC) will begin enforcement of its Red Flags Rule Dec. 31, 2010 for financial institutions and creditors subject to the FTC’s jurisdiction – including CPA firms. Any business that bills customers for sales or services after they’ve been performed, even in the normal course of a traditional billing process, is considered a “creditor” under the current Red Flags Rule that has yet to go into effect. Here’s a brief rundown of the new rule, how it affects CPAs and how CPAs can make sure they are in compliance.

FLORIDA CPA TODAY

Rule Addresses Identity Theft Protection The Red Flags Rule was developed under the Fair and Accurate Credit Transactions Act, in which Congress directed the FTC and other agencies to develop regulations requiring “creditors” and “financial institutions” to address the risk of identity theft. The resulting rule requires all such entities that have “covered accounts” to develop and implement written identitytheft prevention programs to detect the warning signs – or red flags – of identity theft in their day-to-day operations.

| November/December 2010

Who’s Affected? According to the AICPA, CPAs could become subject to the rule. Recent interpretations from the FTC to other professional organizations, such as lawyers and physicians, indicate that a “creditor” includes “any entity that defers payments, even in the normal course of a traditional billing process.” Thus, if a CPA bills clients monthly, this could be considered an extension of credit. That would require the CPA to have an internal program, subject to inspection and review, designed to detect, prevent and mitigate client identity theft. >>>

www.ficpa.org

The rule initially became effective Jan. 1, 2008 and full compliance was required for all covered entities by Nov. 1, 2008. The FTC has issued several Enforcement Policies delaying enforcement of the rule as Congress finalized legislation that would limit the scope of business covered.

Legal Actions Are Pending The AICPA has a lawsuit (filed Nov. 10, 2009) pending in the United States District Court for the District of Columbia that seeks a bar against the application of the rule to CPAs and accounting firms. The AICPA’s suit, in part, asserts that the FTC exceeded its statutory authority by extending the rule to regulate accountants and public accounting firms. The AICPA does not believe there is any reasonably foreseeable risk of identity theft when CPA clients are billed for services rendered. Earlier this year, AICPA members in public accounting were granted a 90-day grace period from the date on which the U.S. Court of Appeals for the District of Columbia Circuit renders an opinion in the American Bar Association’s case against the FTC. The FTC’s appeal on the ABA case is pending in the Circuit Court.

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What Should a Plan Include? According to the Red Flags Rule, an identity theft prevention program must: • Include reasonable policies and procedures to identify the red flags of identity theft you may run across in the day-to-day operation of your business. For example, if a customer has to provide some form of identification to open an account with your company, an ID that looks like it might be fake would be a red flag for your business. • Be designed to detect the red flags you’ve identified. For example, if you’ve identified fake IDs as a red flag, you must have procedures to detect possible fake, forged or altered identification. • Spell out appropriate actions you’ll take when you detect red flags. • Address how you will re-evaluate the program periodically to reflect new risks. • Further, a board of directors (or a board committee) must approve the first written program. If you

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don’t have a board, approval is up to an appropriate senior-level employee. The program also must state who’s responsible for its implementation and administration. Because employees have a role in preventing and detecting identity theft, the program must include appropriate staff training. If you outsource or subcontract parts of your operations that the rule would cover, your program must address how you’ll monitor your contractors’ compliance. Reprinted with permission of the California Society of CPAs from the October 2010 edition of California CPA. For more information about the Red Flags Rule, including a risk-exposure checklist and a prevention-program development template, visit www.aicpa. org and search for A CPA’s Guide to Creating an Identity Theft Prevention Program. This information was current at the time of publication. For the latest updates, visit the AICPA’s website at www.aicpa.org.

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FLORIDA CPA TODAY

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www.ficpa.org

Department of Revenue Update By Mark Zych, Director, Office of Technical Assistance and Dispute Resolution

DOR Initiates, Coordinates Rulemaking Process

What are the Department of Revenue (DOR) procedures for writing rules, and who determines what rules to write? Although the basic provisions related to rulemaking are contained in Section 120.54, F.S., DOR may initiate rulemaking for various purposes. It may be necessary to clarify new or existing statutory language; amend or repeal a rule that has been declared invalid; describe procedural requirements; or incorporate a judicial ruling. A new statutory provision or a statutory amendment usually is the main reason a rule is adopted, amended or repealed. When deciding if a new rule is needed, DOR considers whether there are other ways to provide the information to taxpayers. DOR regularly posts information on its website at dor.myflorida.com and publishes Tax Information Publications (TIPs). DOR also considers whether the new rule will provide taxpayers, practitioners or DOR personnel with useful guidance, and whether failure to initiate a rule will cause problems or confusion. Anytime DOR updates, amends or changes a form the public uses, it must go through the formal rule promulgation process. When the rule promulgation process starts, the Administrative Procedures Act (Chapter 120, F.S.) sets time requirements for almost every stage of the process. DOR resources and the schedule of the Florida Governor and Cabinet make it critical that the rule promulgation be properly coordinated. Rulemaking can be divided into three distinct stages. The first is the pre-proposal stage. During this stage, a draft of the rule may be created and workshops are held to gather information and feedback from industry groups and taxpayers. Although a

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draft rule is not required for a workshop, DOR has determined that workshops are more productive when a preliminary draft is available for discussion. The second stage in rulemaking is the proposal stage. This stage begins with a presentation of the rule to the Governor and Cabinet during a public meeting. During the presentation, DOR requests authority to conduct a public hearing on the rule. If authorized, DOR conducts a rule hearing to receive any final comments on the proposed rule. Third is the adoption stage. Assuming DOR has decided to proceed with the rule, it must be presented again to the Governor and Cabinet for adoption.

Online Meetings Get Taxpayers, Tax Practitioners Involved

DOR needs to receive and review certain facts and information about businesses or industries. An open dialogue and taxpayers’ written statements help DOR understand business and industry needs.

More Rule Workshops in the Works During the past year, DOR has promulgated about 60 new rules and amendments. Some major changes in sales tax rules include the Food Rule, which incorporates Rules 12A-1.011 and 12A1.0115 F.A.C.; and the Medical Rule, which incorporates Rules 12A-1.020, 12A1.021 and 12A-1.0215 F.A.C. DOR expects to begin developing a few additional rules during the next few months. These rules will include Rule 12A-1.007 Aircraft, Boats, Mobile Homes and Motor Vehicles; and Rule 12A-1.070, Leases and Licenses of Real Property. The latter rule has not been amended in a few years, and there are various statutory amendments and judicial rulings that need to be incorporated.

On Aug. 25, DOR conducted a rule workshop on a statutory amendment to Section 212.08(6), F.S., dealing with contractors involved in public works contracts. For the first time, DOR used an internet-based software program that For more information about DOR allowed taxpayers to participate, ask rulemaking, call the Office of Technical questions and present information online. Assistance and Dispute Resolution at The presentation was successful and DOR (850) 617-8346. plans to do more of them. A hearing officer ends each rule workshop or hearing with a written For a lis script that states: “On behalf of the t of rece Department, we wish to thank each of p u b l i shed rul ntly you for taking the time to be here and es, as w notices making your comments and concerns ell as a b o u known. We think it is invaluable to t u p co worksho the Department to receive this kind of ps and h ming e visit DO participation from both the taxpayer R’s web arings, representatives and those from private site myflorid industry. It is always easier when we a.com/d at dor. or can form an alliance between the or dor.m yflorida /law/ affected groups and the Department .com/ dor/rule to work for a common goal.” s/. DOR truly believes it’s best to have a joint effort when developing a rule. To properly draft and promulgate rules, FLORIDA CPA TODAY

| November/December 2010

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Industry Icons Lifelong Learning is Secret to Hudson’s Success

From FICPA Communications Staff Reports

Q. Could you tell me about your new role as executive chairman of TECO Energy and your journey to that position?

A. I’d like to step back a little bit and talk about my role

as CEO, which I assumed in July of 2004. I just completed six years. Those were very exciting and challenging years. The company had some struggles, so with great teamwork from a lot of people, including some very good CPAs here, we were able to get the company back on track. It’s been a labor of love being CEO, and now I’m really excited about my new role as executive chair. I’ll be involved in strategy and mentoring and working with the Board. In this day of Sarbanes-Oxley, boards are very active, and rightfully so. www.ficpa.org

ANSWERS

I’ll be spending a good bit of time working with the board to make sure it continues to support management and the company in achieving its goals.

Q. Tell me about your career leading up to your previous position as chairman and CEO of the company.

A. I would tell you that I’m really grateful for the career

I’ve had. From the time I started college, I wanted to be a CPA. So, right from my freshman year, I embarked on a career that culminated in my position as CEO. I joined the firm of Haskins & Sells (which now is Deloitte Touche) in 1965 and was fortunate to have a 37-year career there. Working in public accounting was a terrific experience – it was challenging and gave me an opportunity to work with some of the smartest, finest people in the world at a variety of companies. It provided opportunities to learn in so many situations. And it allowed me to contribute in a lot of ways, through my service as a CPA, to the success of companies and individuals who’ve been our clients.

Q. What do you feel have been your greatest professional

QUESTIONS

On behalf of FICPA President Michael Pender, Florida CPA Today (FCT) is pleased to introduce a series of interviews with CPAs who’ve chosen careers in industry. Through these interviews, Pender hopes to highlight this segment of our profession and share the outstanding contributions these CPAs have made to their businesses and communities along the way. We hope you enjoy getting to know some of the FICPA’s influential members in industry and accounting profession icons. Please look for additional interviews in upcoming issues of FCT. Sherrill W. Hudson was named executive chairman of TECO Energy’s Board of Directors in August 2010 after having served as chairman and CEO since July 2004. He joined the Board in January 2003 and previously served as chair of the Audit Committee. Hudson is a member of the Finance Committee, and as CEO, he was intimately involved in overseeing TECO Energy’s operations and the implementation of new corporate strategies. He also serves on the boards of Publix Super Markets and Lennar Corporation. Hudson retired from Deloitte & Touche, LLP, in August 2002 after 37 years of service. He spent 19 years in Miami as managing partner for the firm’s South Florida offices, which included oversight responsibilities for its Florida and Puerto Rico offices. Hudson received his bachelor’s degree from Ashland University in Ashland, Ohio, graduating cum laude and valedictorian. He is a member of the FICPA, which recognized him as the 2006 Outstanding CPA in Business and Industry. FICPA President Mike Pender recently spent some time talking with Hudson about his role as a CPA in industry.

Sherrill W. Hudson, CPA TECO Energy

accomplishments?

A. As I reflect on my 37 years with Deloitte & Touche, I

was able to maintain the role of managing partner for 26 years, which I think was quite an accomplishment. The life of a managing partner is a little bit like the life of a football player – it averages about five years, so I did it five times the average. I attribute that to a real focus on client service and on people, and to developing business for the firm. If you have the right people you can provide outstanding service, and we were able to do that. So I take great pride in the people and the client aspect of my tenure at Deloitte & Touche. Altogether different was being CEO of TECO Energy, starting out with very troubled times and taking the company back to having some significant achievements. We’ve paid off over $1 billion of debt, increased market capitalization by about $1 billion, and developed a really great management team. I also have a successor who, I’m 100 percent confident, is going to lead the company to even greater successes. >>> PAGE 28 FLORIDA CPA TODAY

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QUESTIONS ANSWERS 28

(CONTINUED FROM PAGE 27)

Q. What’s something about you that a lot of people don’t know?

A. Probably that I was born and raised on a

sharecropper’s farm in Mississippi. I grew up in a home that didn’t have running water or any indoor facilities. We had a well out back and all of that. It’s a humble background and one I wouldn’t trade anything in the world for. There are probably very few people who know that because I don’t talk about it much. It was another era, but it prepared me for a career of hard work and really expecting to be rewarded for what I did, and not expecting anybody to give me something that wasn’t deserved and earned.

Q. What is your biggest pet peeve? A. I don’t know that I’d call it a pet peeve, but the thing

that bothers me most is people who aren’t willing to change or to embark upon a career of continual learning. I think it’s very frustrating when people think they have all the answers and don’t need to do anything else. One thing I’ve found is that the most successful people are the first ones to admit making a mistake, and who commit to being better every day.

Q. What’s your greatest joy? A. First I have to say having a wonderful wife who I’ve

spent almost my whole life with, and my family. From a professional standpoint, my greatest joy is the people whose success I’ve had a little bit of involvement with. There are a number of people at Deloitte who have gone on to be national and international leaders in that firm. At TECO, we have a succession-planning program, and we’ve put a new person in almost every senior position. All those people are doing great. It gives me so much satisfaction to see people be successful, and to do everything I can to help them be successful and stay successful.

Q. What knowledge or skill set do you think would help

members in industry enhance their careers as executives in industries or organizations?

A. I think it’s important to continually strive to learn

new things. Whether you’re in industry or in public accounting, life should be a journey of learning every step of the way. One of the real keys to success is to be up to date on technology. What that will do is make you much more productive, and productivity leads to success.

Q. How has belonging to the FICPA helped in your career, and how would you encourage members in industry to be involved with the FICPA?

A. One of the first things I did when I came to Florida

in 1983 was join the FICPA, and I’ve been a member ever since. I think the FICPA does so many things for public accounting and for industry. They have great publications, their CPE programs are second to none and the Chapters give you an opportunity to meet and get to know some of the best and brightest people in the profession. FLORIDA CPA TODAY

| November/December 2010

From an industry standpoint, sometimes if you’re with one company you really don’t get the broad exposure like you do from a public accounting firm. If someone chooses to be active in the FICPA, it gives them exposure to a variety of companies and to many people with different ideas.

Q. What advice would you give accounting students or young CPAs who are considering a career in industry?

A. I think going into public accounting is a terrific

way to start any career. I would urge anybody who’s in accounting to consider going into public accounting for some period of time. I think a number of them will really love it and stay, as you and I have done for most of our careers. What it does is prepare you for success, whether you go into industry, government, academia or whatever you choose. In public accounting, you deal with various people and companies, as well as all kinds of challenges, and you have to learn to be a good communicator. Those are all the factors that lead to success in whatever career a person ultimately ends up with. Nothing, I think, prepares people for success better than a few years in public accounting.

Q. What are some of the biggest challenges you currently face, and that you expect to face in the future?

A. The electric utility industry is going through some

really significant changes. And it’s coming at us from a lot of angles – especially in the form of regulations, both from the federal and the state levels. And there are the challenges that go along with renewables, and there’s also the cost involved with providing electricity. Especially in these tough economic times, we want to do everything we possibly can to hold costs down. We’re at the mercy of what happens with the prices of natural gas and coal, so our hands are tied on a big portion of our costs. But one thing we really are focused on is providing people with safe, reliable electricity at the lowest possible cost. Let me tell you, that is a real challenge.

Q. What would you say is the most important lesson you’ve learned during your career?

A. I would say being able to deal with change, and

being able to make decisions and execute based upon the decisions you make. At the most successful companies I’ve worked with, including TECO, you have a very defined strategy and you execute that strategy every day. There are so many people who talk a great game. There are so many companies that profess to be successful. Really what you need is the right strategy and to execute that strategy. Closely tied with that is having the right people. There should be a continuing focus on developing outstanding people and helping every one of them be successful. Because the more successful they are, the more successful the company or the public accounting firm is going to be. To see FICPA President Mike Pender’s entire interview with TECO Executive Chairman Sherrill Hudson, visit the FICPA’s website at www.ficpa.org/hudsoninterview. www.ficpa.org

www.ficpa.org

FLORIDA CPA TODAY

| November/December 2010

Student Outreach

We Love It! FICPA Introduces PwC Accounting Development Program

By Brenda Hubbard, Director of Academic Relations & Student Initiatives

Through a grant from PricewaterhouseCoopers (PwC), the FICPA has successfully launched its newest summer student camp, the PwC Accounting Development Program (ADP). The new initiative, offered through a partnership among PwC, Florida International University (FIU) and the FICPA, gives community-college students a glimpse at the accounting profession. Like the James L. Wilcox Minority Summer Residency Programs (MSRPs), the ADP is aimed at minority students. “At PwC, we’re looking to build a strong pipeline of diverse talent and broaden awareness of the exciting opportunities that a career in public accounting offers,” said Aisha Washington, U.S. diversity recruiting leader at PwC. “By supporting initiatives such as the PwC Accounting Development Program, we’re able to do both and help students build a foundation for future success.” “The ADP is the first program in the country to encourage community-college students to transfer to a four-year accounting degree program,” said Sharon Lassar, former director of the FIU School of Accounting. “As the economy has weakened, more students have begun their higher education at community colleges. Nationwide, community-college enrollments increased 25 percent in just two years. It’s important for the profession to include this source of future talent in its development efforts.” The inaugural six-day, five-night intensive program was held June 6-11 at FIU in Miami. More than 60 students from 12 states representing 28 community colleges applied for the program. Only 35 students were selected. Of those, 13 were from Florida. The program was promoted nationwide to minority students who had completed their first year of college and were considering transferring to a four-year institution to earn an accounting degree. “The program blew my expectations out of the water,” said Kurt Patrice from Borough of Manhattan Community College. “I

FICPA member Ron Thompkins of TCBA Watson Rice, LLP speaks with ADP students at FIU about credit-card use. Thompkins also judged the student reports and spoke at the MSRP graduation. learned much about PricewaterhouseCoopers as a firm, and about its culture and environment. “The program also helped me discover my comfort level with traveling away from home. I always assumed I’d stay in the NYC area, but after seeing how comfortable the firm made me feel and how amazing FIU is, I’m more open to different options,” Patrice said. The students learned accounting and business concepts through interactive classroom exercises. They visited the PwC Miami office to learn about the firm and work with PwC professionals on their case project. They went to the Miami Heat and American Airlines Arena to see how accounting is applied in a real-world setting. And they completed a comprehensive case study, applying accounting concepts they learned during the week. Students also developed professionalism through participation in mock interviews with PwC staff, an etiquette dinner and a presentation of their case solution. “The ADP offers a collegiate experience that inspired participants. For most, it may be their only opportunity to live in campus housing and experience ‘college-life’ like full-time, traditional students,” Lassar said. “The program’s goals are to ease the transition from a community college to a bachelor’s program and to prepare students for the education that awaits them.”

Students Attend MSRPs The 12th Annual James L. Wilcox Minority Summer Residency Program (MSRP) was held at FIU June 13-17 and at the University of South Florida (USF) June 27-July 1. Thirty-seven students attended the program at FIU and 35 attended at USF. The program is aimed at rising minority high-school seniors throughout Florida who are interested in exploring the accounting profession. >>>

We especially thank our sponsors, whose donations made the Minority Summer Residency Programs possible. Grant Sponsor – Walter H. Coulter Foundation Presenting Sponsor – Ernst & Young, LLP Coca-Cola Enterprises Columbia Restaurant – Ybor City Florida Institute of CPAs Florida International University – School of Accounting FICPA Educational Foundation/1040K Race FICPA Atlantic Chapter 30

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| November/December 2010

FICPA Central Florida Chapter FICPA Gold Coast Chapter FICPA Gulf Coast Chapter FICPA Jacksonville Chapter FICPA Suncoast Chapter Office Depot PricewaterhouseCoopers, LLP Publix Super Market Charities Inc. University of South Florida – School of Accountancy www.ficpa.org

ADP students visit the American Airlines Arena and Miami Heat to learn how accounting is applied in the entertainment and sports fields. A highlight was touring the Miami Heat’s practice gym, locker room, meeting and family areas. As with ADP, students learned about the profession through classroom sessions and field trips. Students in Miami visited Ernst & Young and Beckman-Coulter. Students in Tampa visited Ernst & Young and PwC, as well as Coca-Cola Enterprises and the Columbia Restaurant. Students also learned about personal finance, applying for college, communications, accounting concepts and college life, as well as accounting careers. “This program taught me more than I’ve learned at school about CPAs and other business professionals. I’m now more interested in accounting than I was before,” said Tolulope Akinpetide from Montverde Academy. “The program motivated me to excel in life after I heard other people’s testimonies about how they had excelled in life.” “The program offered a lot of opportunities – from meeting new people, who were so kind and funny, to hearing CPAs and CFOs share their desires and discuss why they love the profession,” said Damaris Payen from Coral Glades High School. “It gave us an overview of the many different jobs this business offers, as well as a great taste of what college life is really about (not to mention the food!).” The programs used CPA role models to show students the profession’s diversity. “I witnessed diversity at every level at FIU, PwC and E&Y,” remarked Sidney Askew, a professor at Borough of Manhattan Community College and ADP/MSRP chaperone at FIU. “Recent hirers, midcareer professionals and seasoned veterans representing almost ethnicity in America gave tips on pursuing successful careers in accounting.” For more information about these programs, contact Brenda Hubbard at hubbardb@ficpa.org, or (800) 342-3197, Ext. 419. www.ficpa.org

Twenty-nine students attend the inaugural ADP class at FIU. PwC Florida sourcing staff and FICPA/student chaperones sport green shirts.

We thank our FICPA members who shared their expertise with students at these summer programs. Mario de Armas PricewaterhouseCoopers LLP Miami

Karel Johnson Ernst & Young LLP Tampa

Daniel Prinzing PricewaterhouseCoopers, LLP Miami

Stephanie Bryant, PhD University of South Florida Tampa

Celina Jozsi University of South Florida Tampa

Thais Rodriguez Ernst & Young, LLP Tampa

Ryan Buckner SAS 70 Solutions, Inc Atlanta

Monte Kane Kane & Company, PA Miami

Mark Ross PricewaterhouseCoopers, LLP Miami

Jimmy Carmenate Florida International University

Michael Kridel Daszkal Bolton, LLP Boca Raton

Samuel Schulman The Miami Heat Miami

Yanicel Caceres PricewaterhouseCoopers LLP Miami

Sharon Lassar School of Accounting Florida International University

Ron Thompkins TCBA Watson Rice, LLP Miami

Robert Goodwin Fall 2010 Beta Alpha Psi President University of South Florida

Gabriela Manrique PricewaterhouseCoopers, LLP Miami

Gregory Thornton Wallace H Coulter Foundation Miami

Chris Gonzalez Ernst & Young LLP Tampa

Maria Mari Miami-Dade College Miami

Jose Valiente LarsonAllen Tampa

Daniel Henn Daniel P. Henn, CPA Rockledge

Andre McAden Blake & Associates, PC Hollywood

Maria Yip Yip Associates Coral Gables

Kenneth Henry School of Accounting Florida International University

Diana Morales Ransom Everglades School Coconut Grove

Andrew Wallace PricewaterhouseCoopers, LLP Ft Lauderdale

Michael Parsons PricewaterhouseCoopers, LLP Miami

John Wilkinson John F. Wilkinson Jr, PA Tampa

Parmalyn Jacob Wallace H Coulter Foundation Miami Tarsha Jacobs BKHM, PA Winter Park

Mario Perez DeVry University Miramar

FLORIDA CPA TODAY

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News Briefs From FICPA Staff Reports

Monk Receives AICPA Gold Medal Harold L. Monk Jr., CPA, CFE has received the AICPA 2010 Gold Medal Award for Distinguished Service. The AICPA gives the Gold Medal, its highest award, to those who have made major contributions to the CPA profession. Kathy G. Eddy, former AICPA chair and a member of the Awards Committee, presented the award at the fall meeting of the AICPA governing Council. A nationally-known expert on accounting and auditing standards, Monk is a partner with Carr, Riggs & Ingram, LLC in Gainesville. He has served as a member of the AICPA’s governing Council and Board of Directors. Monk was chairman of the Auditing Standards Board and the Private Companies Practice Section Executive Committee, and president of the Accounting Research Association. In 2002, former U.S. Comptroller General David Walker appointed him to the Government Accountability Office’s Advisory Committee on Auditing Standards.

Robert Harris, 2009-2010 AICPA Chair (left) and Kathy Eddy, AICPA Awards Committee (right) congratulate Harold Monk, AICPA Gold Medal Award recipient. Monk has served on the FICPA Board of Governors and is a member of the Institute’s State Legislative Policy Committee. The FICPA named him Outstanding Seminar Leader for seven years. Accounting Today named him one of the 100 most influential people in accounting for four consecutive years. Monk has taught auditing as an adjunct faculty member of the University of Florida’s School of Accounting. The AICPA recognized him numerous times as one of the top 20 instructors of accounting and auditing.

Anderson Installed as President of CPA-SEA Kathy Anderson, CAE, CEO-Executive Director of the Florida Institute of Certified Public Accountants, was installed Oct. 17 as 2010-2011 president of the Certified Public Accountants-State Executives Association. CPA/SEA is a national organization for executive directors of state CPA societies. Anderson has been a member of CPA/SEA since 1998. She has served on the CPA/SEA Board of Directors as treasurer, secretary and president-elect. She also chaired the Steering Committee for the American Institute of CPA’s National Interchange Conference. CPA/SEA assists CPA society executive directors in achieving excellence in managing their organizations, and to provide networking and communications opportunities.

Anderson Tommye Barie Elected to AICPA Board of Directors At the fall meeting of the AICPA governing Council, Tommye E. Barie was elected to the AICPA Board of Directors for a three-year term ending in 2013. Barie served as FICPA president during the 2004-2005 fiscal year and has held leadership positions at virtually every level of the FICPA. Barie serves as chair of the AICPA’s National Accreditation Commission, which has oversight responsibility for the AICPA’s four credentials. Barie also is a member of the AICPA’s Strategic Planning Committee. She is a partner with CPA Associates in Bradenton.

Barie 32

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www.ficpa.org

FICPA Offers Webcast on Oil Spill Reimbursement Process The FICPA, along with the Alabama, Louisiana, Mississippi and Texas CPA societies, recently offered members a webcast about the BP oil-spill reimbursement process. The free, four-hour event took place Aug. 24 and featured four concurrent speakers. Two replays were available on Sept. 1. More than 1,000 CPAs registered for the live webcast and 400 more took part in the September replays. About 500 of the 1,400 participants were Florida CPAs and 74 percent were first-time users of our webcast product through the Accounting Continuing Professional Education Network (ACPEN).

FICPA Webcast speakers included (back row, left to right) David Tipton, Marshall Gunn Jr., John Tomlinson, Stanley D. Sterna, (front row, left to right) Marta Alfonso, Norman “Jeff” DeWeese and Tracy Conerly. Not pictured are Jacqueline Zins and Phillip Howell.

FICPA Names Quinlan Lifetime Honorary Member

FICPA President-Elect Stam Stathis (left) presents John Quinlan with a plaque naming him a lifetime honorary FICPA member.

John V. Quinlan retired in September from his third term on the Florida Board of Accountancy (BOA). In recognition of his notable service to Florida CPAs, FICPA President-Elect Stam Stathis presented Quinlan with lifetime, honorary FICPA membership during the Board of Governors’ September meeting in Fort Lauderdale. Quinlan’s is the fifth honorary membership the FICPA has awarded. Beginning in 2001, Quinlan served the profession and the public through three consecutive BOA appointments. As an attorney practicing primarily in banking, corporations and agricultural law, his volunteer service included various leadership positions with the Manatee County Bar Association; Girls Club; Girls Club Foundation; Bradenton Rotary Club; Leadership Manatee; and Junior Achievement.

Burbridge Attends AICPA Leadership Academy FICPA member Kirsten Burbridge recently participated in the AICPA’s 2010 Leadership Academy. The interactive, three-day program included leadership training, networking activities and presentations from some of the profession’s top leaders. This year’s academy took place Oct. 5-7 in Durham, N.C. The academy was established in 2009 to inspire, nurture and empower the next generation of CPA leaders. Applicants must be licensed CPAs who are members of the AICPA and a state society; have at least three years of experience in the profession; and are 25 to 35 years old. Burbridge works with Pricewaterhouse Coopers in Orlando and is a member of the FICPA’s YCPAs Committee. She is the daughter of CPAs David and Lynda Dennis.

Burbridge FlCPA Member Aces CPA Exam, Receives AICPA Award On the basis of his excellent Uniform CPA Examination scores, FICPA member Ryan Ossowski, CPA of Port Orange recently received one of the 2009 Elijah Watt Sells awards. Under the sponsorship of the AICPA, the Elijah Watt Sells awards program was established in 1923 to recognize outstanding performance on the CPA Examination. Current criteria require that Sells awards be granted annually to the 10 candidates who pass all four sections of the examination on their first attempt and earn the highest cumulative scores. Ossowski’s Sells Award indicates that, of all 2009 examinees, his scores were among the 10 highest. Ossowski is employed with James Moore & Co., PL in Daytona Beach. www.ficpa.org

>>> PAGE 35

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New Members The Florida Institute of Certified Public Accountants welcomed 217 new members during August and September 2010. Atlantic Boca Raton: Mark Kupelnick, Wesley Raider Boynton Beach: Jacqueline A. Gibbons Ocoee: Joseph C. Buvel Wellington: Scott A. Sherry

Wauchula: Jennifer M. Groves Winter Park: Laura Oberhelman Winter Springs: Tabitha A. Hobbs

Brevard County Melbourne: Sonia Banks Palm Bay: Martha L. Sale

Florida Keys Key Largo: Richard C. Darden

Broward County Atlantis: Kathleen C. Reeg Coral Springs: Andres M. Bustamante Davie: Cynthia K. Gross Fort Lauderdale: Charles A. Burruano, Holly M. Cimino, Theshan De Silva, Sue E. Folkringa, Kristin M. Plank Hollywood: Zachary Glasser Lauderdale Lakes: Carrel C. Renaud Miami: Daniel E. Bauza, Natalee Camoesas, Ana F. Jimenez Miami Shores: Patricia A. Robinson Miramar: Carolina M. Cueto, Sean W. Davis, Yaskary I. Herrera, Rea T. Martinez-Malo Parkland: Michael S. Johnston, Stephen D. Kraft Pembroke Pines: Aderemi O. Roberts Plantation: Danielle M. Camillucci, James McCloskey, Daniel M. Morgan, David A. Perrin Weston: Edward C. Martinelli, Denise C. Miot Wilton Manors: James W. Ridout Central Florida Clermont: Lisa M. Leonettipineiro Deltona: Laura N. Shannon Dundee: Dorothy T. Pendergrass Lake Buena Vista: Erica L. Henderson Orlando: Katherine B. Ahmed, Sue E. Brantley, Robert F. Carmichael, Nicholas J. Lucas, Deborah L. Moran, Joseph J. Rohan, Jared M. Schultz, Brian D. Stephenson, Michael W. Tufarelli, Robert G. Zinkil Oviedo: Linda K. Baldwin, Matthew P. L. Holt, Daniel R. Judah 34

FLORIDA CPA TODAY

Emerald Coast Fort Walton Beach: Jennifer G. Costello

Gold Coast Coral Gables: Mario MassesValera Miami: Daniel R. Toribio Jimenez Plantation: Colleen Tobiasson Gulf Coast Bradenton: Kim Dalglish, Kevin A. Hassall, Courtney B. Johnson, Shawn S. McCray Lehigh Acres: Kimberly A. Mckenzie North Port: Tammy A. Ashley, James C. Newman Osprey: Ronda R. Ballog Palmetto: Marcia N. Saulo Parrish: Annamaria Kiss Sarasota: Michael L. Audet, Rick Bennett, Clifford P. Brunetti, Yussef Cedeno, Heather Coonradt, David P. Johnson, Aimee A. Losurdo, Ryan J. McDonald, Daniel K. Raymond, Donald Stitt, Dora Maria C. Thomas, Linda C. Valenti, Jason L. Williams St. Petersburg: Azuree M. Ashby Jacksonville Jacksonville: Pamela R. Bomba, Scott A. Brown, Shalyndell P. Mckenzie, Bevin C. O’Brien, Joan C. Perin Starke: Robert A. Green Miami-Dade Coral Gables: Sonia E. Quevedo Doral: Ruben E. Lopez Miami: Maria C. Barthelmess, Roxana P. Cabrera, Jesus Guerrero, Delleperche Joseph, Marlene Lepre, Candice McCrae, Darlene C. Merino, Antonio D. Morejon, Kahlil J. Osborne, Luis A. Perez, Peter B. Reimon, Antolin D. Saiz, Liane C. Sanchez del Valle | November/December 2010

Miami Beach: Fortuna M. Suster North Miami Beach: Edwuar D. Quilca Palmetto Bay: George P. Denis Miami-Downtown Coral Gables: Amanda L. Bonifay Miami: Brian P. Bentz, Mayra M. Fernandez, Bethany L. Rapinchuk, Krizia Storr Miami Beach: Xiaoyuan Zhu Village Palmetto Bay: Katalina Cruz Miracle Strip Panama City: Tiffany M. Ennis North Central Florida Fort Lauderdale: Jessica L. Storz Gainesville: Nadia H. Batey, Thomas P. Kerwin, Aisha Mayes Melrose: Stephanie J. Gillain St. Augustine: Kathrine A. Taylor Tampa: Julia E. Daigle North Suncoast Land O’ Lakes: Daniel J. Tschopp Tampa: Shannon L. Ogden Palm Beach Boca Raton: Beckie L. Breyer, Joseph G. Dowds Boynton Beach: Ashley Jones Coral Springs: Kevin R. Roach Delray Beach: Robert I. Berger, Michael Rabin Fort Lauderdale: Marien I. Jamshidi Hobe Sound: Robert C. Maida Lake Worth: Donald Hall, Donald L. Stimely Loxahatchee: Glen G. Uehlein Mclean, Va.: Shaun A. Lockhart North Palm Beach: Aaron I. Hershman, Elizabeth A. Meyer Palm Beach Gardens: Stephen E. Kaler Tequesta: Danielle M. Nichols Wellington: Paul H. DeSilva, Salli P. Hinton, Carlos Ysaguirre Polk County Lakeland: Debra S. Roth Sailfish Palm City: Ruth A. Ashmead, Gary L. Tortora Port St. Lucie: Jon R. Taylor Stuart: Nicholas A. Ferraro

South Dade Miami: Helen R. He, Arthur W. Heggen, Yaury A. Jattin, John E. Kruszewski Palmetto Bay: Tibor Silber Southwest Florida Bradenton: Carolyn J. Wright Cape Coral: Steven C. Chaipel Fort Myers: William J. Wilcop Naples: Jessica M. Beauchamp, Jessica Burgos, Debora D. Ferris, Nicole L. McGinnis, Frances H. Nolan, Pamela Osborne, Beata T. Sulek Punta Gorda: Amy L. Penttila St. Johns River Orange Park: Stephen C. Chesney Suncoast Bloomington: Gary W. Fagg Bradenton: Korinna Nikhazy Indian Rocks Beach: Asher R. Lewis South Pasadena: Brian J. Ingleright St. Petersburg: James A. Bankes, Bradley J. Hopson, Andra Z. Salveggi Tallahassee Port Orange: Robert Scott Tallahassee: Kevin M. Klinkman, Kenneth T. Porras, Michael S. Present, Qi Shi, John M. Treadaway Volusia County Edgewater: Catherine M. Alqallaf New Smyrna Beach: John W. Peel Palm Coast: Richard A. Fasano Sunrise: Sharon K. Ford West Coast Brandon: Jonathan D. Jeerapaet Lutz: Jeffrey A. Clement, Richard Villarino Palm Harbor: Crystal M. Dunn, Timothy O. Lima Riverview: Ryan O’Connor Tampa: Hesham A. Alatiqi, Mark J. Joyce, Carla Luke, Dennis A. Paleveda, Jeff Petersen, Paul A. Peterson, Nhu Pham, Ana A. Riddell, Timothy J. Sheelen, Jason P. Smith Valrico: Rachel R. Blount, Catherine Haun >>> www.ficpa.org

West Florida Fort Lauderdale: Alyson B. Koons Gulf Breeze: Angela L. Daly Pensacola: Stacie L. Court, Linda Crews Tallahassee: Laura G. Nelson Valrico: Ashley Adams Out of Country Edmonton, Canada: Dani K. Keller Providenciales, Turks and Caicos Islands: Marisa D. Matthews Out of State Danbury, Conn.: Lauren Saunders Essex Junction, Vt.: Michael G. LeBoeuf Lexington, S.C.: Edward J. Hallgren Matawan, N.J.: Laura L. Dugan Nashville, Tenn: John H. Crosslin New London, Conn.: William R. Hannaford Ramsey, N.J.: Thomas J. Flannery Warrington, Pa.: Jonathan T. Marks

www.ficpa.org

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INSIDE Public Accounting, Accounting Today Announce Honorees Several FICPA member-firms recently were named among Accounting Today’s 2010 Best Accounting Firms to Work for. Accounting Today and Best Companies Group create the annual list. The award program was designed to recognize the best places of employment in the accounting industry. The Best Accounting Firms to Work For list includes 100 companies: 45 small-sized companies (15-49 employees), 45 medium-sized companies (50-249 employees) and 10 large-sized companies (more than 250 employees). To be considered for participation, companies had to be public or privately held U.S. accounting firms with at least 15 employees. Here are the FICPA member-firms who made the list. Small-sized companies • Ennis, Pellum & Associates, CPAs, Jacksonville • Garcia, Espinosa, Miyares & Co., LLP, Coral Gables • Hoyman Dobson, Melbourne Medium-sized companies • Averett Warmus Durkee, Orlando • Daszkal Bolton, LLP, Boca Raton • Pender Newkirk & Company, Tampa Large-sized companies • Kaufman, Rossin & Co., Miami Kaufman, Rossin & Co., along with Kirkland, Russ, Murphy & Tapp, PA in Clearwater, also were named among INSIDE Public Accounting (IPA)’s 2010 Best of the Best Honorable Mention Firms. These firms are selected for their strong management and superior operational performance, based on more than 50 criteria. Almost 400 firms throughout the United States, with annual revenue as high as $170 million, participated in IPA’s 2010 Annual Survey and Analysis of Firms.

FLORIDA CPA TODAY

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Market Place POSITIONS AVAILABLE CPA – Entrepreneurial CPAs to do high-level corporate consulting & tax work. Must be willing to market & sell. Orlando. E-mail hr@profitcoach.com. Jupiter CPA seeking per diem work. Experienced in individual, trust, estate, corporate & partnership taxation. Fluent in workpaper organization, Excel worksheets, Word, Quickbooks & Lacerte. Able to work in my own commercial ofc, client’s location or other sites. Current w/all continuing education including BP claims & intellectual property issues. With over 10 yrs exp as a public accountant, I would like to be your efficient & pleasant accounting assistant. E-mail greenfootprint@comcast.net; ofc (561) 748-1123. LarsonAllen LLP – LarsonAllen, a prof service firm providing assurance, accounting, tax, consulting & advisory services, has audit/tax openings in our Fort Myers/Naples ofcs. Please visit our website at www.larsonallen.com to learn more. LarsonAllen is an Equal Opportunity Employer. Alpern Rosenthal, LLC is seeking accountants w/3-5 yrs of current public accounting experience for our tax & audit departments. We are seeking ambitious, high-impact individuals who want to make a difference the moment they begin working with us. If you are considering a job change, look to Alpern Rosenthal, a company that values its most important resource – people. E-mail resume to dleydig@alpernfl.com. West Palm Beach CPA firm has a FT position for CPA w/a min of 4-5 yrs exp; prefer significant tax knowledge. Liberal benefits, great client base, challenging tax issues; fax resume to (561) 686-3304. Tax Manager – boutique, growing firm seeking tax manager. Must be results-oriented, trustworthy, multi-tasker, flexible & team player. CPA & 5 yrs corporate tax exp preferred. Send letter & resume to Isaac@chamberlainpa.com. OFFICE SPACE Professional ofc shared space available in Sarasota (within city limits) and/or South Sarasota County. Flexible arrangements, which may include use of conference room, kitchen & administrative assistance. E-mail scclnm@yahoo.com. Miami Kendall Area CPA firm seeks to share ofc space w/other CPAs; 3 private ofcs, reception area & conference room available, ample parking, one-story independent building. Contact Jorge at jorge@mgccpa.net or (305) 274-2626. Hollywood CPA has large private office available; annual lease or month to month; access to reception area, conference room & kitchen; on-site parking. Call Marty at (954) 922-3144. Kendall Area CPA Firm – ofc space available for rent; near Turnpike & Kendall Dr; free parking, use of conference room, kitchen, receptionist. CPAs or attorneys only. Call Irwin Katz or Juan Rivera at (305) 595-2149 for an appt. PRACTICES WANTED FOR PURCHASE OR MERGER CPA in Palm Beach County looking to buy out or associate w/ retirement-minded practitioner in Palm Beach or Dade County. I am looking for a practice between $150,000-$400,000. Please e-mail me at cpanj2009@aol.com. Seeking to acquire the CPA practice of a retirement-minded Coral Gables or S Miami practitioner. Preferred transition period 1-5 yrs. E-mail veritasaccounting@yahoo.com. 36

FLORIDA CPA TODAY

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www.ficpa.org

Kudos KRMT Holds Annual Community Service Day From FICPA Communications Staff Reports On July 30, Kirkland, Russ, Murphy & Tapp, PA (KRMT) in Clearwater closed for the day to celebrate the firm’s annual Community Service Day. KRMT is committed to giving back to the Tampa Bay community. Staff members formed small working groups and spent the day volunteering with 12 organizations in the area. They cleaned, painted, shoveled, pulled weeds, sorted donations and prepped food. They procured furniture and PCs for a computer lab at a local YMCA branch and picked up litter at a rest area/ fishing pier. “We were hot, sweaty and tired, and totally out of our element…but we were victorious!” said Bill Tapp, KRMT’s managing shareholder. “We accomplished our goals, completed our projects and helped the community we love become better, even if just a little bit.” The firm donated approximately 250 service hours during the day. According to David W. Jezek, president and CEO of the YMCA of Greater St. Petersburg, the firm made a difference in their community. “Outstanding job by your team!” Jezek said in a message to Tapp. “Our YMCA continues to be blessed by the support we

S Miami CPA practice looking to purchase a 2-4 person tax & accounting CPA firm in SW area. Have ofcs to accommodate. E-mail larry@jnccpas.com or call Larry Nones at (305) 274-1200. FOR SALE

Successful transitions require experienced, confidential, professional services you can trust. This is what Akins Professional Brokerage provides. Specializing exclusively in the brokerage of CPA firms, we have no upfront fees. List your firm w/a professional. Call David Akins, CPA, at (877) 277-0272. Visit our website at www.ProfessionalCPAbroker.com.

Jenny Matasic, Colin Bock, Lisa Anello, Paul Dunham and Melissa Curtis (left to right) were among the KRMT staff members who participated in the firm’s annual Community Service Day. receive from the community, and it’s through examples like the one your company has set that social responsibility is demonstrated. We are so excited about and appreciative of the difference you’ve made at our Harbordale YMCA.” KRMT’s culture is driven by core values of integrity, reliability, lifestyle balance, teamwork and continuous improvement. These values translate to service leadership and quality delivered through the hands-on involvement of experienced and committed professionals.

Buy-Sell-Merge-Finance your practice w/ USA’s No. 1 Accounting Brokerage Firm. A Florida-licensed real estate broker w/ 27 yrs of CPA firm merger-acquisition exp; 90% bank financing w/no closing costs. Current practices available include JacksonvilleGainesville area CPA $465,000+; St Pete grossing $200,000+; Tampa-Largo area grossing $1,200,000; Sarasota grossing $665,000+; Tampa Bay Carrollwood $550,000; Tampa-Clearwater $1,500,000+; Orlando $450,000: Ocala $185,000+; West Palm Beach area $650,000+; Clearwater $175,000+ & many others! Contact Leon W Faris CPA, Erwin Rosenblatt or Jack Saltman at Professional Accounting Sales. Tel (800) 729-9031 or visit our website at www.cpasales.com. MISCELLANEOUS How to Establish Your Fees. Practical tips for accountants who want to improve their fee structure. For your free copy, call Mostad & Christensen at (800) 654-1654 or go to www.mostad.com/ss.

Ready to Buy or Sell? Accounting Practice Sales is the nation’s largest marketer of accounting & tax firms. Don’t go it alone – let us help you get the best deal possible! Call Rick Lee (877) 760-7700 Ext. 710, or Tim Price (727) 698-7262; www. accountingpracticesales.com. www.ficpa.org

For complete classified policies, visit www.ficpa.org/ Content/CPAResources/ClassifiedsJobs/Classifieds.aspx. FLORIDA CPA TODAY

| November/December 2010

Daniel M .

On the Move

an elm Richard S. F r hte ec

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TRANSITIONS Coral Gables: Cherry, Bekaert & Holland, LLP announces that Danielle Cardoso has been promoted to tax senior. Fort Lauderdale: Fiske & Company announces that Colleen Tobiasson has joined the firm as staff accountant. Fort Lauderdale: Hughes Snell & Co., PA announces that Erica K. Harp has been promoted to tax manager. Fort Lauderdale: Kane & Company, PA has opened an additional office at 100 N.E. Third Ave., Suite 470. The firm now has five offices in Florida. Fort Myers: Hill, Barth & King, LLC announces that Tara Ruska has been promoted to manager. Jacksonville: Dixon Hughes has named Daniel M. Edelman as managing member for Florida. Miami: Berkowitz Dick Pollack & Brant announces that Adam L. Firestein has been promoted to director and announces two new associate directors, Richard S. Fechter and Joel D. Glick. Also, Sandra Perez has been promoted to firm director. Orlando: Averett Warmus Durkee and Osburn, Henning and Company merged their practices and will be known as Averett Warmus Durkee Osburn Henning, CPAs. Palm Beach Gardens: Moore, Ellrich & Neal, PA announces the relocation of their offices to 11025 RCA Center Drive, Suite 401, Garden Square Plaza. Sarasota: Kerkering, Barberio & Co. announces that Aimee Losurdo has joined the firm as a tax manager and that Ashley Morey has been promoted from in-charge accountant to senior accountant. Tampa: Pender Newkirk & Company announces that Alex Bolton-Schultes and Scott Decelles have been promoted to tax senior manager; Jessica Fetting has been promoted to audit manager; Heather Gilliland has been promoted to tax senior; Marissa Layden has been promoted to audit senior; and Will Rodriguez has been promoted to business valuation and tax senior manager.

WHO’S NEWS

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Averett Warmus Durkee Osburn Henning in Orlando is included in the Orlando Sentinel’s annual list of Top 100 Companies for Working Families. Elizabeth T. Carlson of CPA Associates in Bradenton attended the 2010 Annual Consultants Conference hosted by NACVA/IBA in Miami. Angeline Choo, Jennifer Coleman, and Kelly Talamo of Myers, Brettholtz & Company, PA in Fort Myers attended the Hospitality Financial and Technology Professionals 2010 Club and Hotel Controllers Conference in Orlando.

Sue Christopher of LarsonAllen in Naples has earned her certified construction industry financial professional (CCIFP) credential. Miguel G. Farra of Morrison, Brown, Argiz & Farra, LLP in Miami was appointed to serve on the University of Miami’s inaugural Business Accounting Advisory Board. Clint Freeman of LarsonAllen in Tampa has earned his certified construction industry financial professional (CCIFP) credential. Katie Gilden of Fiske & Company in Fort Lauderdale is now a certified valuation analyst (CVA). Jennifer Harrison, Bill Iffland, Anthony Lewis and John Reed of LarsonAllen in Fort Myers have earned their certified construction industry financial professional (CCIFP) credential. Anthony Hoffmaster of Divine, Blalock, Martin & Sellari, LLC in West Palm Beach has become licensed as a CPA in Florida. J. Richard Huckaby of Pender Newkirk & Company in Tampa has been elected to serve as president of the Executive Committee for the Manufacturing Services Association. LBA Certified Public Accountants in Jacksonville has been accepted as the exclusive Jacksonville member of the Institute of Dental CPAs and the National CPA Health Care Advisors Association (HCAA). Also, Financial Advisor magazine ranked LBA Wealth Management as the top registered investment advisory (RIA) firm in North Florida. Gary Opper of Levie-Opper, LLC in Fort Lauderdale recently presented a speech that will be a guide to business valuation creation. Sharelle Turner of Kerkering, Barberio & Co in Sarasota recently presented a series of workshops on financial planning after a divorce. The workshops were held at and sponsored by the Women’s Resource Center of Sarasota. Rick Shavell of Shavell & Company, PA in Boca Raton has worked with Associated Builders and Contractors Inc. to craft a bill called American Job Builders Tax Reform Act of 2010 (H.R. 6097). The purpose of the bill is to increase the gross receipts threshold for contractors to use more favorable tax-reporting methods. Olga Weider of Christopher, Smith, Leonard, Bristow & Stanell, PA in Bradenton/Sarasota has passed the exam to become a certified public accountant. Kiondra White of Myers, Brettholtz & Company, PA in Fort Myers completed the QuickBooks ProAdvisor certification.

For more news about members and other Florida CPAs, visit CPAs in the Spotlight at www.ficpa.org/Content/News/Spotlight.aspx. The space for Who’s News, Transitions and other announcements published on this page is limited to news focusing on promotions and new hires for FICPA members; speeches by members at professional conferences; and other firm news, such as recognition of business achievements. We do not publish FICPA committee appointments as a part of this feature because of space limitations. Submissions for On the Move can be e-mailed to communications@ficpa.org. 38

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