Summer 2022 - Florida CPA Today | Volume 38, Number 3

Get to Know

JULIAN DOZIER

the 2022-23 Chair of the FICPA

PAGE 8

DBPR’s New CPE

Reporting Requirements

PAGE 36

Welcoming Our 2022 FICPA Scholarship Winners

PAGE 2

Unveiling FICPA’s New Vision, Mission, Strategy - and Home!

PAGE 19

Meet Our 2022-23 Board of Directors

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PRESIDENT & CEO

Shelly Weir

EDITORIAL COMMITTEE

Lynda M. Dennis, CPA, Chair

Joel M. DiCicco, CPA

David J. Hochsprung, CPA, Jonathan S. Ingber, CPA

Douglas B. Keith, CPA

Michael S. Kridel, CPA

Ryan A. Myers, CPA

Will Quilliam, CPA

FICPA STAFF

Nick Menta, Communications Manager and FCT Editor

Alejandra D’Jermanos, Graphic Designer

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The FICPA reserves the right to reject any editorial material or paid advertising that does not meet Florida CPA Today criteria or detracts from its ethical and professional standards. Florida CPA Today is published quarterly by the Florida Institute of Certified Public Accountants, Inc., 135 W. Central Boulevard, Suite 1140, Orlando, Florida, 32801. Telephone: (850) 2242727 or (800) 342-3197. Visit our website at ficpa.org

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FICPA to Launch New Strategy Plan in Its New Home

I want to start off by thanking everyone who joined us in June at Disney’s Contemporary Resort for MEGA 2022 (see Page 10). The in-person return of our premier event was three years in the making and proved a special week for FICPA staff and leadership. As much as our MEGA reunion felt like a return to what we’ve missed these past few years, it also represented a new beginning.

Over the last 12 months, we’ve worked diligently to lay out a new vision, mission and strategy for the FICPA. Our Chairs – past and present – Board and Council members, and staff have put together a detailed plan aimed at growth, innovation, and responding to what you told us were your most acute needs.

This is a strategy that puts you, our valued FICPA members, at the center of all that we do.

As you’ll see in detail on Page 5, this five-year plan, taking us into 2027, is comprised of four central pillars:

1. Diversifying our membership and learning programs

2. Enhancing our member-value proposition

3. Strengthening our advocacy and public policy engagement

4. Building a Scholarship Foundation for the future

This is a strategy born out of our efforts to Protect, Promote, Educate and Innovate. We’re committed to meeting the needs of our diverse membership and supporting CPAs throughout their career. We’re here to recruit students, empower Young CPAs, and partner with senior leaders, as we take you a comprehensive member journey through the FICPA, taking your career to the next level.

As we set our plan in motion and take our next step, we’ll soon complete our ongoing relocation to Downtown Orlando. Last month, I approved the final building plans for our brand-new FICPA headquarters. Members will soon be able to visit us at 250 S. Orange Avenue in the Park Building – attached to what was formerly known as the SunTrust Center. This 11,000-square-foot space was chosen specifically for its proximity to FICPA member firms and organizations. Construction will soon begin as we build out the new HQ, and we hope to have FICPA staff moved some time in late 2022 or early 2023.

As we prepare to write the next chapter in our history, I am immensely grateful to the FICPA volunteer leaders who have helped execute our relocation.

The last two years have been a time of a great change and transition for the FICPA. Soon, we’ll hit the ground running in our new home – equipped with our new vision, mission and plan.

To paraphrase our new 2022-23 Chair Julian Dozier, it’s a great day to be a member of the FICPA!

Soon, we’ll hit the ground running in our new home – equipped with our new vision, mission and plan.

SHELLY WEIR

Shelly Weir signs off on the final building plans for our new home.

FICPA Envisions a Thriving and Future-Ready Profession

What a privilege it is to serve the Florida Institute of Certified Public Accountants as its 95th Chair! This organization has played an important role in every stage of my career, and I am grateful to my fellow volunteer leaders – past and present – who played a role in today’s successes.

As an FICPA Council member since 2016, I’ve witnessed remarkable change in our world, profession, and Institute in a short time. But as many of us heard AICPA President & CEO Barry Melancon discuss at MEGA 2022, the rate of change will never be as slow as it is today. Although we’ve all been forced to react to changing circumstances in recent years, institutions adapt and grow best when they’re being proactive.

At the FICPA, we’ve worked diligently over the past year to refine our vision for the profession. As our President & CEO Shelly Weir outlines on Page 2, FICPA’s leadership and staff have developed a new five-year strategic plan with one overarching goal: providing you the very best member value.

As the Institute rolls out its strategic plan, I am pleased to also unveil our updated vision and mission statements:

FICPA’s Vision: A thriving and future-ready accounting profession that powers the success of Florida businesses and the communities we serve.

FICPA’s Mission: To protect the value of the CPA license, promote the accounting profession, educate and enrich the professional excellence of the members we serve, and innovate through forward-thinking leadership.

Each part of our mission helps accomplish our broader vision. Ongoing advocacy efforts in Tallahassee and Washington D.C. – together with our close relationship with the Department of Business and Professional Regulation – help protect the value of licensure as we highlight the important role CPAs play in the success of national, state, and local economies. Our forthcoming campaign to promote the profession will increase public awareness of our services and attract the next generation of CPAs. High-quality, flexible, and affordable solutions to educate our members about the latest issues impacting our profession remain central to what we do. And our work to innovate will put us all in position to meet future challenges as CPAs seize valuable business opportunities.

We believe our work over the next five years will advance our vision of a thriving, future-ready profession. Of course, this vision is only possible with your continued dedication and support. Stay tuned for details about how you can help us through your volunteer efforts. I look forward to working alongside you.

Institutions adapt and grow best when they’re being proactive.

JULIAN DOZIER CPA, ABV, CFF, CFE

RENEWED VISION, MISSION AND FIVE-YEAR STRATEGY PLAN

VISION

A thriving and future-ready accounting profession that powers the success of Florida businesses and the communities we serve.

MISSION

To protect the value of the CPA license, promote the accounting profession, educate and enrich the professional excellence of the members we serve, and innovate through forward-thinking leadership.

Goal 1: Diversified Membership & Learning Programs

• Enhanced membership options for individuals and organizations

• High-quality and a ordable educational o erings delivered in a variety of formats

• Professional development programs focused on emerging topics to help CPAs reskill and adapt to changing dynamics

• Florida-specific content and learning

• Development training to support career advancement

• Enhanced focus on serving CPAs in corporate finance

• Strengthened relationships with members, firms, and partners

Goal 2: Enhance the Member-Value Proposition

• A “members-first” mindset, with exclusive access to content and resources

MEMBERS

• Development of a new suite of benefits to address acute talent recruitment and retention needs

• Tailored benefits for member groups – from sole practitioners to small firms, corporate finance executives, and young CPAs

• Seamless reporting of CPE under new Board of Accountancy requirements

• Reinvigorated engagement and resources at the local level

• Technology and website enhancements to better facilitate networking and access to member resources

Goal 3: Strengthen Advocacy and Public Policy Engagement

• Protect the CPA license in Florida

• Launch a comprehensive public a airs campaign to educate both the public and students on the value of the CPA profession

• Member engagement, input and insight into the legislative e orts that impact the profession in Tallahassee and Washington

• Continued partnership with DBPR, State Board of Accountancy, and NASBA

• IRS service relief and state tax filing extension and relief

Goal 4: A Foundation for the Future

• An expanded mission that creates a singular philanthropic funding source for scholarships to address pipeline challenges in Florida (see page 38)

• Fortify integration with the FICPA to execute cohesive career development programs that cultivate the accounting profession

• A well-funded organization through diversified corporate and individual donor pool

DBPR’s New CPE Reporting Requirements: IMPLEMENTATION SCHEDULE AND DEADLINES

By FICPA Staff

Recently, FICPA members received a notice from the Florida Department of Business and Professional Regulation (DBPR) regarding changes to Continuing Professional Education (CPE) reporting requirements and the reinstatement of mandatory CPE reporting by licensees.

Since 2011, Florida licensed CPAs were no longer required to submit a list of the 80 hours of CPE courses when they renewed their license, and instead were able to “check the box” certifying the completion of their CPE requirements for their respective re-establishment period. Along with this change, Florida Statute required that the profession maintain a 95 percent compliance rate for accurate CPE reporting. Based on DBPR data over the past eight years, compliance results from CPE audits have averaged 87.5 percent, which is well below the statutory requirement. In the six years prior to that, when the CPAs submitted lists, the audit results averaged 92.7 percent – which still was short of the 95 percent compliance rate mandated by statute.

As a result, effective with the re-establishment period ending June 30, 2024, all Florida-licensed CPAs who began their re-establishment period on July 1, 2022 must enter the details of all CPE courses completed and upload corre-

sponding proof of completion documents to DBPR’s CPE reporting tool in the DBPR Online Services Portal. The reporting tool will be available Aug. 1, 2022. Licensees will have access to the reporting tool and make uploads for the entire re-establishment period.

The FICPA’s CPE Tracker tool will help make this process easier for licensees by helping ensure the hours reported to DBPR are correct and allow for one aggregate certificate to be used for all FICPA courses.

The FICPA’s CPE Tracker is a free, online member service that automatically records CPE credit hours earned for every FICPA course attended. The interactive tracking system helps CPAs maintain a current record of all CPE credit-hour totals for a specified period. The signed “Certificate of Attendance” downloaded from the CPE Tracker is accepted by DBPR as proof of attendance. Members can also add credits from non-FICPA courses attended.*

IMPLEMENTATION SCHEDULE SUMMARY

The following grid summarizes the implementation schedule for licensees to use the reporting tool. We encourage licensees to input and upload data as they complete courses, which then will be reflected in online accounts.

The implementation schedule does not impact the reporting requirements or the renewal process for the establishment periods:

• ending June 30, 2022, and the corresponding renewal period Oct. 1, 2022 to Dec. 31, 2022

• ending June 30, 2023, and the corresponding renewal period Oct. 1, 2023 to Dec. 31, 2023

The following grid shows the deadlines for completing CPE and entering details/uploading proof of completion for the re-establishment period beginning July 1, 2022, and ending June 30, 2024, and renewal cycle ending Dec. 31, 2024.

Note that re-establishment period dates have not changed. You should complete your required 80 hours of CPE by June 30 in the year your license expires, unless you are using one of the automatic extensions. Note the extension deadlines for completion, reporting and uploading are the same. For additional information on the Continuing Professional Education requirements, please refer to Rule 61H1-33.003(1), F.A.C.

For more information about CPE reporting for the 2022 and 2023 re-establishment periods, visit DBPR’s website or

call the Division of Certified Public Accounting at (850) 487-1395.

For more information about the FICPA members-only CPE Tracker, contact Member Services at msc@ficpa.org, (800) 342-3197, or (850) 224-2727.

* Members may manually add credits earned from non-FICPA courses into the CPE Tracker. However, the FICPA is not responsible for verifying attendance for any non-FICPA courses.

Notice of Regular Council Meeting

FICPA

OFFICIAL NOTICE

In compliance with Article XI, Section 6 of the FICPA Bylaws, be it known that a regular meeting of the FICPA Council will be held virtually on Tuesday, Sept. 27, 2022 at 9:00 a.m.

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2022 Women to Watch: Veronica Larriva and Jodi Malis

As part of our Women’s Leadership Summit at MEGA 2022, the FICPA presented its annual Women to Watch Awards, honoring Emerging Leader Veronia Larriva and Experienced Leader Jodi Malis.

“The Women to Watch Awards recognize and celebrate the women among us who exemplify leadership excellence,” said FICPA President & CEO Shelly Weir, who presented the awards. “I thank them for the contributions they’ve made to the FICPA and the profession, and I look forward to seeing what they accomplish in the future.”

Larriva is a partner at McHale, Caruso, Scullion and Knox, and a trusted forensic accountant. She is an active member of the FICPA, serving as a past board member of our Southwest Florida Chapter, past chair of the Florida Gulf Coast University Accounting & Tax Conference Committee, and a member of the Vaulation, Forensic Accounting and Litigation Support (VFALS) Conference and Young CPAs committees. She was previously honored with the FICPA Horizon Award, recognizing the most promising Young CPAs in the profession. Malis is a partner at Hancock Askew & Co., where she oversees assurance and advisory services for numerous public and private companies and manages the firm’s Employee Benefits Plan (EBP). With more than 35 years of public accounting experience, she specializes in audits, researching complex accounting and auditing issues, and SEC and financial reporting. She has served on the executive committee of the AICPA’s EBP Audit Quality Center and is currently a member of the AICPA’s Enforcement Committee.

The Experienced Leader Award is reserved for women who have risen to leadership positions after more than 10 years in the profession. The Emerging Leader Award recognizes women who have made significant contributions to the profession in the early stages of their careers.

Nominations for the 2023 awards will be open from Dec. 1, 2022, through Jan. 15, 2023, with winners to be announced at MEGA 2023.

Meet. Engage. Grow. Achieve.

Three Years in the Making: A Look Back at MEGA 2022

We would like to thank everyone who played a role in the staging of our 2022 MEGA Conference in June! We truly appreciate all our members, speakers and event sponsors who joined us at Disney’s Contemporary Resort to Meet, Engage, Grow and Achieve.

This year’s conference marked the in-person return of MEGA for the first time since 2019, and your involvement made it worth the wait.

MEGA 2022 was a jam-packed, five-day event, featuring insightful presentations and a variety of specialized programs, including our Accounting Scholars Leadership Symposium, Bridge the Gap Conference, and Women’s Leadership Summit, where were proud to recognize our 2022 Women to Watch Award winners, Veronica Larriva and Jodi Malis (see Page 6).

We also want to extend a special thank you to two of our keynote speakers and most-valued partners in the profession: AICPA President & CEO Barry Melancon and

Florida Department of Business and Professional Regulation Secretary Melanie Griffin.

As we look back on the week, Friday evening holds a special place in our hearts, with our Annual Meeting & Town Hall giving way to our Newly Certified Ceremony, where Secretary Griffin, Board of Accountancy Chair Steve Platau and Division of Certified Public Accounting Executive Director Roger Scarborough were on hand to honor our state’s newest licensees. From there, the party was on, as our Chair’s Closing Night Celebration featured the passing of the gavel from Kristina Bivona to Julian Dozier and honored a pair of past Chairs in W.G. Spoor and Abby Dupree.

Finally, MEGA 2022 went out with a bang, as MEGA attendees and FICPA leadership and staff took in the evening’s fireworks display.

It was a week full of the kind of memories only MEGA can provide, and we can’t wait to see even more of you back in Orlando next June!

And thank you to our sponsors:

Julian Dozier

Uses Curiosity and Dedication to Provide Insight and Perspective

By Nick Menta, FICPA Communications Manager

Julian Dozier knows the exact depth of the gas pipes buried in his yard – 24 inches, as required by inspectors in Leon County.

He has a good understanding of how far a tankless water heater needs to be installed from a glazed window – or set below the overhang of a roof. He knows these things not because he has to – but because he wants to.

“I enjoy learning about things that others might find irrelevant,” he jokes, poking fun at his own very real sense of curiosity.

These are the kinds of minute details other people overlook. But they also offer a glimpse into the process-first approach that Dozier applies to just about everything.

Photo by Copeland Productions

“More than what is happening, I want to know why things are happening,” he explains. “If you start by understanding why things happen, you can then pull back, see the big picture, understand what needs to be tweaked, and make plans for tomorrow.”

It’s this big-picture mindset – combined with a passion for service – that led him rather naturally to his current role as the 95th Chair of the Florida Institute of Certified Public Accountants.

Dozier, 39, is a shareholder at Thomas Howell Ferguson P.A. CPAs and the director of the firm’s assurance services department. Following in a proud tradition, he is one of four members of the firm’s team who have served as FICPA Chair or President, including Shareholder Emeritus Winston Howell (2002-03), Director Steve Stevens (2008-09), and Managing Shareholder Jeff Barbacci (2014-15).

“By his very nature, he’s a leader,” says Barbacci. “From early on, we identified him as someone who was going to make great contributions to the profession. Our firm’s participation in the FICPA is something that we believe in strongly and encourage from the beginning of our accounting professionals’ career at THF. We feel like the FICPA gives back to us as much and more than what we put into it.

“I’m excited for Julian personally, and I’m excited for him to be in this position. He really understands strategic direction and how that fits within the broader picture.”

It’s fitting, then, that Dozier has spent the last year alongside FICPA President & CEO Shelly Weir, Past Chair Kristin Bivona and the rest of the FICPA Board and Council, outlining the Institute’s new vision, mission and five-year strategic plan to promote and advance the CPA profession (see Page 4).

“It’s an exciting time to be a CPA,” Dozier says. “I genuinely believe that. And it’s up to us to convey that message, to tell our story to a wider audience.”

That story, as Dozier tells it, is about a profession that gives everyone the chance to build a career that fits their interests, values, schedules and preferred work-life balance. The trust, professionalism and expertise exhibited by CPAs are needed across industries, whether in public practice, private business, government, or the not-forprofit sector. In that way, accountants, and CPAs in particular, are anything but boxed in.

If you start by understanding why things happen, you can then pull back, see the big picture, understand what needs to be tweaked, and make plans for tomorrow.”

- Julian Dozier

Photo by Copeland Productions

For Dozier, his steadfast commitment to his career is but a piece of an otherwise varied life. The proud father of his daughter, seven-yearold Emory, the pair spend their time traveling, riding bicycles to Tallahassee’s many parks and outdoor festivals, and building LEGOs, specifically of the Stars Wars and Harry Potter varieties. Throughout the pandemic, Dozier has valued the ability to work from home, both in those challenging first months when schools suddenly closed and later as his daughter shifted to virtual learning, attending kindergarten via Zoom.

“One thing that appeals to me is that you can do what you want within the profession,” he says. “If you want to be home with your kids, you can be home with your kids. If you want to be an auditor, that’s great, you can be. If you’d rather work in industry, go work in industry. If being available at 4 o’clock in the afternoon for after-school sports is important to you, you have the flexibility to design your career to accommodate that.

“When you have the opportunity to take your career and make it your own, you’re going to be more fulfilled.”

That flexibility gives Dozier the freedom to stay busy, pursuing a mix of personal interests and volunteer opportunities. Raised with a passion for service, he has previously contributed in leadership roles to the Tallahassee Symphony Orchestra, Greater Tallahassee Chamber of Commerce, and LeMoyne Center for the Visual Arts. He is the Immediate Past Chair of Leadership Tallahassee, a program of the Greater Tallahassee Chamber focused on engaging local leaders who are committed to improving the community.

“I think if you know Julian at all, you recognize him as extremely intelligent,” says Barbara Boone, a Chamber Vice President and the Executive Director of Leadership Tallahassee, who has known and worked with Dozier the last eight years. “He collects the information from both sides and then comes to an informed

conclusion. There’s no agenda. He doesn’t clamor for attention. He’s very quietly effective, and that’s why when he talks, people listen.

“Having watched him, he’s exceptionally good at bringing a group of stakeholders together, balancing their interests, and building consensus. In that way, I’ve always seen him as wise beyond his years.

“He very much embraces that idea of servant leadership, of stewardship. He’s the epitome of it.”

Since graduating with his bachelor’s and master’s in accounting from Florida State University – where he was an FICPA Scholarship recipient – Dozier has risen through the leadership ranks of both the FICPA and AICPA. He’s been a member of the FICPA since 2006, an active Committee member since 2010, and a fixture on the Council since 2016.

“I wanted to see the bigger picture,” Dozier says, in standard fashion.

He is likewise a member of the AICPA Council, previously graduating from the AICPA Leadership Academy and receiving the organization’s “Standing Ovation” recognition for his work in forensic accounting. During his time in the Leadership Academy, Dozier developed something of a personal mantra. As part of an exercise, he was given 60 distinct values, ultimately narrowing them to just four of personal significance.

“What I ended up with was a phrase,” he says. “I use curiosity and dedication to provide insight and perspective.

Photo by Copeland Productions

Photo and Cover Image by Two Stories Media

That’s what I try to do in my forensic accounting and expert testimony, as a Shareholder at THF, and as Chair at the FICPA.”

He’s spent the last 12 months serving as FICPA Chair-Elect and using those skills in support of Bivona, who took great pride in passing the gavel to her friend and successor during this June’s Chair’s Closing Night Celebration at MEGA 2022.

“Julian has been an invaluable partner and friend,” said Bivona. “I thank him for always listening and being the first to lend a helping hand. I admire his dedication to the FICPA, I am confident in his vision and leadership, and I look forward to supporting him in the next year.”

Over the next year, Dozier will work closely alongside Weir. Together, they will complete the Institute’s ongoing headquarters relocation to its new home in Downtown Orlando and oversee the rollout of its new vision, mission and strategy.

“Julian is the perfect person to help lead the FICPA into the next chapter of our storied history,” says Weir. “This will be a transformative year for the organization, and I am grateful to have a transformative leader in Julian by my side to guide us along the way. His expertise and dedication are exactly what the FICPA needs at this exciting time.”

As for what the future holds, Dozier and the FICPA are focused on innovation and growth, recruiting new CPAs, and retaining valuable existing talent. Dozier, Weir, and the entire FICPA leadership team envision a thriving and future-ready accounting profession that powers the success of Florida businesses and the communities they serve.

“The future of the profession depends on organizations like the FICPA being successful,” he says. “We need to have a pipeline of interested accounting students – the people who want to become CPAs and want to work in CPA firms, industry, or government. We need to protect the value of the CPA license, promote the profession, educate our members, and innovate.

“We’re not abandoning what the FICPA already does well, but we do need to broaden our appeal. We have to make sure our Young CPAs feel heard and that we run an organization that meets the diverse needs of our diverse members over their entire career.

“This is already a great organization, and it has been for more than a century. Like all my fellow Chairs before me, I’m just here to give back to what’s been given to me – and leave this place better than I found it.”

Photo by Copeland Productions

Photo by Copeland Productions

We proudly welcome our 2022-23

FICPA BOARD OF DIRECTORS

Get to know the team leading our association forward.

Key G. O’Keefe, CPA | Chair-Elect

Key O’Keefe is a partner with O’Keefe, Somerville & Associates PLLC. She provides tax and accounting services to small businesses, individuals, and estates and trusts. An Alabama native, Key and her family settled in Melbourne when her husband retired after 30 years of service in the Coast Guard. Since returning to Florida, she’s been active with the FICPA, serving the local chapter, several state committees, state task force and the Council and Board. A passion for financial literacy education has led to more than 20 years of volunteer work with Junior Achievement. She serves on the board of Junior Achievement of the Space Coast and is a frequent volunteer in the classroom.

Hector Aguililla, CPA

Hector E. Aguililla provides auditing and accounting services, due diligence, litigation support services and business consulting services at Berkowitz Pollack Brant. He works with clients across a wide variety of industries including real estate, construction, hospitality, professional services, manufacturing and distribution, retail, and employee benefit plans. With over 20 years in the industry, he consistently helps clients achieve their business goals. He is a member of the American Institute of Certified Public Accountants (AICPA) and the Florida Institute of Certified Public Accountants (FICPA).

Valrie Chambers, Ph.D., CPA

Dr. Valrie Chambers is a Past Chair of the M.E. Rinker, Sr. Institute of Tax and Accountancy and an Associate Professor of Accounting at Stetson University in Deland. Prior to receiving a Ph.D. concentrating in taxation in 2000, she had over a decade of public accounting experience as owner/partner-in-charge of a CPA firm in Houston that specialized in accounting issues for small business owners. Dr. Chambers has published articles in such journals as the Journal of Business Ethics, Journal of State Taxation, Strategic Finance, Journal of Accountancy, Tax Notes and Tax Adviser.

Ed Duarte, CPA, CGMA

Ed Duarte is the Chief Financial Officer of Foreign Parts Distributors, Inc. (FPD), a worldwide leader in the automotive aftermarket industry. Prior to joining FPD in 2015, Ed served in various leadership roles at national and regional public accounting firms in New York, Puerto Rico and Miami, covering a full range of professional services including audit, accounting, financial reporting and consulting. Ed received his Bachelor of Arts in Accounting & Finance from Florida International University and is a licensed Certified Public Accountant in Florida and New York. Ed has served the FICPA in various roles since 2006. He currently serves on the AICPA Council.

Jennifer Gunter, CPA, CISA, CISSP

Jennifer Gunter joined the Florida Department of Transportation’s Office of Comptroller in 2015, where she oversees contracts, grants and funds management activities. A public servant with over 26 years in state government, Jennifer spent her first 19 years at the Florida Office of the Auditor General, where she served in Quality Control and Information Technology Audit roles. Her professional activities with the FICPA include service on the FICPA Board, Council, Finance and Office Advisory Board, and Compensation Committee. She is Past President of her local FICPA chapter.

Kathryn K. Horton, CPA, CMA, CIDA, CFE

Kathryn Horton is President of Kathryn K. Horton CPA PA based in Coral Springs Kathryn is a nationally recognized leader in data analytics and performs audits and reviews of private companies and not-for-profit organizations. Kathryn was recognized as a 2021, 2020 and 2019 National 40 Under 40 Honoree by CPA Practice Advisor, and has served on the FICPA Board of Directors since 2020. Kathryn is also a Florida delegate on the AICPA Governing Council. Kathryn started her involvement with the FICPA through the CPA Day of Service and as a 2018 graduate of the Emerging Leaders Program, subsequently becoming a speaker at various FICPA Conferences.

Jennifer Keller, CPA

Jennifer Keller is a senior tax manager at Crowe, LLP. Based in Tampa, she is a leader in Crowe’s National Retail Dealer services group, which interacts with more than 12,000 dealerships in the U.S. and provides specialized audit, tax, advisory and consulting services that dealers require. Jennifer has over nine years of public accounting experience, providing federal tax compliance and consulting to large multi-point dealership groups. As an active member of the FICPA, she has completed the Emerging Leaders Program, served as a regional advisor for the program, served on the Women in Leadership committee, participated as a speaker at Scholarship Nights, and served as the West Coast Chapter Chair and Chair of the Young CPAs Committee.

Mindy Rankin, CPA, CCD

Mindy Rankin is a member of Warren Averett, LLC. She earned a Bachelor of Science degree in Mathematics with a minor in Information Systems from Troy University, where she played Division I softball. She went on to earn a Master of Accountancy with a concentration in Taxation from the University of West Florida. Her primary practice area is in the construction industry, as she provides reviews, compilations, and assistance to contractors on percentage completion accounting as they obtain bonding for projects. She spends the rest of her time preparing tax returns for individuals and small businesses.

Brion Sharpe, CPA

Brion Sharpe serves as a Director in the Trust Solutions practice of PwC in the Central Florida area. He is an alumnus of the University of Florida where he earned his bachelor’s and master’s degrees in Accounting and continues to support the Fisher School of Accounting. Brion has enjoyed supporting the leadership efforts of both Past Chair Bivona and Chair Dozier as well as President & CEO Weir since she joined the association. The outreach and advocacy efforts of the FICPA have been unparalleled, and Brion looks forward to continuing those efforts to connect with our members and protect and enhance the value of their license.

Cheri Swain, CPA

Cheri Swain is a Partner with Carr, Riggs & Ingram, LLC (CRI). She has been providing accounting and auditing (A&A), internal controls, and business consulting services at CRI since 2004. She has worked with clients from a variety of industries with a concentration on nonprofits, educational institutions, and real estate entities. Her background includes extensive experience with information technology audits and assurance, including performing service organization control 1 reports, assessing and testing IT controls as part of the financial audit, and utilizing computer-assisted auditing techniques tools. Cheri is passionate about giving back to the profession and helping develop future professionals.

Alex Welsh, CPA, CISA, CTIP

(Young CPAs Committee Chair; non-voting advisory member)

Alex Welsh is an Associate Manager at A-LIGN. She is focused on ISO 27001, HIPAA, and SOC cybersecurity audits and is based out of Boca Raton. She is looking forward to an exciting year as Chair of the Young CPAs Committee and hopes to continue the momentum from last year. Her involvement with the FICPA includes successfully completing their Emerging Leader program and serving as a region leader. Alex is passionate about giving back and does so with the Salvation Army, Junior Achievement, and Junior League of Boca Raton. She graduated from Florida State University with a Bachelor of Science in Accounting and Finance.

New Audit Report Is Here – What Auditors and Their Clients Need to Know

By Lynda M. Dennis,

In May 2019, the Auditing Standards Board (ASB) issued Statement on Auditing Standards (SAS) No. 134, “Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements,” which is effective for financial statement audits for fiscal periods ending on or after Dec. 15, 2021. While early implementation is permitted, early application is limited to audits for fiscal periods ending on or after Dec. 15, 2020.1

The ASB issued SAS No. 134 to enhance the relevance and transparency of the auditor’s report and to converge the audit report, where appropriate, with standards of the Public Company Accounting Oversight Board and the International Auditing and Assurance Standards Board. While issued in May 2019, SAS No. 134 is part of a suite of five auditing standards issued from May 2019 to April 2020 relating principally to the auditor’s report. As such, all five standards are required to be implemented together, and implementation for financial statement audits for fiscal periods ending prior to Dec. 15, 2021, is not permitted.2

SAS No. 134 makes significant changes to several sections of current AICPA Professional Standards and adds an entirely new section relating to Key Audit Matters (KAMs). In addition, the SAS amends existing standards to address disclosures included in audited financial statements. The following are the sections of current standards that are replaced, amended, or added to the AICPA Professional Standards by SAS No. 134.

• AU-C Section 700, Forming an Opinion and Reporting on

Financial Statements (replaced in its entirety)

• AU-C Section 701, Communicating Key Audit Matters in the Independent Auditor’s Report (new section)

• AU-C Section 705, Modifications to the Opinion in the Independent Auditor’s Report (replaced in its entirety to align the report form and content when the auditor concludes an unmodified opinion is not appropriate)

• AU-C Section 706, Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor’s Report (replaced in its entirety to clarify the relationship between Emphasis-of-Matter paragraphs and KAMs and to address additional communications when the auditor determines an Emphasis of Matter or Other Matter paragraph is appropriate)

• AU-C Section 570, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (amended to include a separate section in the auditor’s report when substantial doubt exists)

• AU-C Section 260, The Auditor’s Communication With Those Charged With Governance (amended to require the auditor to communicate auditor identified significant risks with those charged with governance)

CPA

• Various AU-C sections amended to focus auditor attention on disclosures throughout the audit process, including new requirements in AU-C Section 315, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatements and AU-C Section 330, Performing Audit Procedures in Response to Assessed Risks.

A summary of the major changes made with SAS No. 134 are discussed in the following paragraphs. Because a detailed discussion of SAS No. 134 is beyond the scope of this article, readers are strongly encouraged to read SAS No. 134 in its entirety.

Report Titles

Two separate headings are required when the auditor is responsible for reporting on the financial statements as well as other legal or regulatory requirements (for example, a compliance audit performed in accordance with the Single Audit Act). In such cases, the heading, “Report on the Audit of the Financial Statements,” which includes the opinion section through the Other Information section, is followed by the “Report on Other Legal and Regulatory Requirements” section. These headings are only used when the auditor reports on both the financial statements and other legal and regulatory requirements.

Report Contents and Order

Users of the audited financial statements will likely notice the new order of the auditor’s report as well as the contents of several of the sections. Making the auditor’s opinion the first section of the report increases the visibility of the opinion. The Basis for Opinion section, which immediately follows, provides needed transparency into the auditor’s basis for the opinion. In addition, the Basis for Opinion section clarifies the auditor’s obligation to be independent and to meet other ethical responsibilities. Unlike the current audit report, SAS No. 134 requires the auditor to include a Basis for Opinion section in all audit reports rather than only when the auditor issues a modified opinion on the financial statements.

Going Concern

SAS No. 134 enhances going concern reporting by including information

about the auditor’s and management’s responsibilities. The Responsibilities of Management for the Financial Statements section will specifically state the date through which management is required to evaluate its ability to continue as a going concern. Information about the auditor’s responsibilities to conclude whether conditions or events raise substantial doubt about the audited entity’s ability to continue as a going concern will be included in the Auditor’s Responsibilities for the Audit of the Financial Statements section. Additionally, SAS No. 134 requires the auditor to include a separate section in the report when substantial doubt exists.

Other Auditor Responsibilities

In addition to the enhanced focus on going concern, the auditor’s responsibilities section will explain what the auditor’s responsibilities are for the audit, such as, exercising professional judgment, maintaining professional skepticism, identifying and assessing risks of material misstatement whether due to error or fraud, obtaining an understanding of relevant internal control in order to design appropriate audit procedures, and communicating with those charged with governance.

Key Audit Matters (KAMs)

AU-C section 701 is a new section in the AICPA Professional Standards which establishes standards relating to the auditor’s responsibility to communicate KAMs. KAMs are, in the auditor’s judgment, matters of the most significance in performing the audit. They are selected from the matters communicated to those charged with governance, and the content communicated in the report is based on the auditor’s judgment as well. In the audit report, KAMs immediately follow the Basis for Opinion section and are reported under the heading Key Audit Matters. It is extremely important to remember SAS No. 134 does not require the communication of KAMs; however, when the auditor is engaged to communicate KAMs, AU-C section 701 applies.

Concluding Thoughts

SAS No. 134 is one of five audit standards relating to the auditor’s report, all of which are effective for financial statement audits for fiscal periods ending on or after Dec. 15, 2021. All five audit standards make significant changes to the form and content of the auditor’s report and are required to be implemented together. Auditors need to be aware of the changes made to current standards by all five standards but especially changes made with SAS No. 134. In some cases, audit programs, engagement letters, and management representation letters may require modification. Because some of the changes relate to management responsibilities, auditors need to ensure their clients are aware of the changes and understand why the changes were made. Despite the changes made to the auditor’s report with SAS No. 134, the result will be a more relevant and transparent audit report.

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SAS No. 145 Changes Coming to Risk-Based Audits

By Ryan S. DiLeo, MSA, CPA

Auditors alike can agree one of their primary objectives is to identify and assess the risks of material misstatement (RMM) in financial statements. In addition, auditors are tasked with reducing audit risk to an acceptable level. These efforts by the auditor are done to obtain comfort that financial statements do not contain material misstatements. The American Institute of Certified Public Accountants (AICPA) continues to provide ongoing guidance to auditors to achieve these objectives through Statements on Auditing Standards (SASs). Therefore, auditors must remain fluid and adaptive, much like the ever-changing economic, technological, and regulatory environments.

The Auditing Standards Board (ASB) recently issued SAS No. 145, “Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement,” effective for periods ending on or after Dec. 15, 2023. SAS No. 145, will supersede SAS No. 122, as amended, section 315 of the same title. SAS No. 145 will also amend various AU-C sections in AICPA “Professional Standards.” In striving to converge with the ISA, the ASB continues to strive towards convergence with International Standards on Auditing (ISAs). This standard was developed using ISA 315, “Identifying and Assessing the Risks of Material Misstatement” (Revised 2019), as a starting point.

There is a high degree of deficiencies and inconsistencies accumulated and reported as matters for further consideration (MFCs) amongst peer review reports related to the auditor’s risk assessment procedures. As such, the ASB has provided clarification and enhancement of the auditor’s RMM assessment thereby improving audit quality through

SAS No. 145 by addressing the following:1

1.) Enhance and provide for new requirement in understanding of the entity’s system of internal control relating to the auditor’s work effort to obtain the necessary understanding.

2.) Continue to modernize the standard as it pertains to information technology (IT) considerations, including addressing risks arising from an entity’s use of IT.

3.) Determine the risk of material misstatement, including significant risks.

This article outlines the pertinent requirements and responsibilities of auditors under SAS 145 by emphasizing the most significant changes.

Auditors’ Assessment of Risk of Material Misstatement

Similar to previous standards, SAS No. 145 was not constrained to any single audit methodology or technique. Audit risk is a function of detection risk and RMM.2 SAS No. 145 is meant to clarify and enhance certain aspects of RMM identification which drives better risk assessment and increase in audit quality. The most important aspects of SAS No. 145 are as follows:

• New guidance on scalability.3 This notion of scalability is that this SAS is in fact intended for audits of all entities, regardless of size or complexity. As such, application of this SAS may incorporate specifications where appropriate.

• Revised definition of significant risk.4 More precisely, a significant risk arises when the assessment of inherent risk is close to the upper end of the spectrum of inherent risk. Inherent risk may be assessed at the upper end of the spectrum due to the degree to which inherent risk factors affect the combination of likelihood of misstatement and the magnitude of potential misstatement. This is to be treated as a significant risk.

• New requirement to identify IT applications and other aspects of the entity’s IT environment that are subject to risks arising from the use of IT.5

a. Identify related risks arising from the use of IT

b. Identify the entity’s general IT controls that address such risks

This new requirement is discussed in further detail within this article to provide for more context and explanation.

• Revised requirements to evaluate whether the design of certain controls is effective to address the RMM at the assertion level, including but not limited to general IT controls, and to determine if such controls have been implemented.6

• New requirement to separately assess inherent risk and control risk at the assertion level.7 Control risk should be assessed at the assertion level based upon the understanding of controls and the testing of the operating effectiveness of controls performed by the auditor. If the auditor does not plan to test the operating effectiveness of controls, the auditor should assess control risk at the maximum level such that the assessment of the RMM is the same as the assessment of inherent risk.8

• New “stand-back” requirement intended to drive the evaluation of the completeness of auditor’s identification of significant classes of transactions, account balances, and disclosures.9 Regarding those material classes of transactions, account balances, or disclosures that have not been determined to be significant, the auditor should evaluate whether their determination remains appropriate.

• Revised requirement to perform substantive procedures for each relevant assertion of each significant class of transactions, account balance, and disclosure regardless of the assessed level of control risk. This may be observed in Paragraph .18 of AU-C section 330 which was revised to align the definitions in SAS 145 with Public Company Oversight

Board (PCAOB) Auditing Standard (AS) 2301, “The Auditor’s Responses to the risks of Material Misstatement.”

• There are both new and revised requirements related to audit documentation.10 Such documentation should include:

a. Discussion amongst the engagement team and the significant decisions reached.

b. Key elements of the auditor’s understanding, sources of information from which the auditor’s understanding was obtained, and the risk assess ment procedures performed.

c. Evaluation of the design of identified controls and determination of implementation.

d. Identification and assessment of RMM at the financial statement level and at the assertion level. This includes significant risks and risks for which substantive procedures alone cannot provide suffi cient appropriate audit evidence. In addition, the rationale for the significant judgements made regarding the identified and assessed RMM.

• New guidance on maintaining professional skepticism.11

“The Application and Other Explanatory Material” section of SAS No. 145 contains specific information applicable to other financial reporting frameworks, as well as considerations to entities and smaller, less complex entities.

Auditors’ Consideration of Understanding of IT and General IT Controls

Understanding of IT

SAS No. 145 reemphasizes the need for the auditors’ understanding of an entity’s IT in its system of internal control. This is due in large part to the fact certain components of an entity’s system of internal control may depend on IT. Therefore, obtaining an understanding of IT will include understanding of the IT environment.12 IT environment includes the following:

a. IT application – program or set of programs that are used in the initiation, processing, recording, and reporting of transactions or information. IT appli cations include data warehouses and report writers.

b. IT infrastructure – comprises networks, operat ing systems, and databases and their related hard ware and software.

c. IT processes – entity processes to manage access to the IT environment, management program changes or changes to the IT environment, and management IT operations.

An entity’s information system may include manual and automated controls that might affect the manner in which transactions are: 1) initiated, 2) recorded, 3) processed, and 4) incorporated in the general ledger and then subsequently reported in the financial statements.

After obtaining a general understanding of IT, then consideration of the risk arising from the use of IT should be contemplated by the auditor. A handful of considerations that may assist in determining whether IT applications are subject to risks arising from the use of IT are as follows:13

• Does the entity utilize stand-alone applications or are the applications interfaced?

• What is the magnitude of the volume of data (transactions)?

13. A279 Appendix F

• Are the application(s) functions of a complex nature? More specifically does the application automatically initiate transactions or are there a variety of complex calculations underlying automated entries?

• Are transactions supported by original hard copy documentation?

Appendix F of SAS No. 145 provides further explanation of the nature of the general IT controls that may be implemented related to various aspects of the IT environment.

Conclusion

While many of the specific requirements and guidance related to assessment of RMM and understanding of the entity’s system of internal control remains the same, auditors should remain cognizant and adaptive to the ongoing changes that are coming due to SAS No. 145 and plan accordingly. Interested parties should read all SASs referenced in No. 145 including the applicable application materials for full context to effectively prepare for implementation.

Mr. Ryan S. DiLeo, MSA, CPA is a Senior Manager at Vestal & Wiler CPAs in Orlando, Florida. His career experience has concentrated in providing assurance services. Mr. DiLeo is a member of the FICPA and AICPA.

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CONDO REFORM LAWS

– BE AWARE AND PREPARE

By Dave Hochsprung and Guy Strum

Condominium and cooperative associations in Florida need to brace themselves for massive changes regarding building inspections and reserve funding brought about by recent legislation. Practitioners that serve the industry need to be aware of these changes to advise their clients as they try to comply with the new law. However, associations may find compliance challenging as an analysis of the new law raises several questions – questions that don’t seem to have answers, yet.

During the Legislature’s Special Session in May of this year, Senate Bill 4-D (with companion House Bill 5-D) was filed. This proposed legislation was unanimously approved by both the House and Senate and signed into law by the governor on May 26, 2022. The legislation applies to condominium and cooperative associations with buildings three stories or higher. The main provisions of the law require certain associations to have Milestone Inspections and Structural Integrity Reserve Studies. Legislation of this type was inevitable in the wake of Surfside Condominium collapse in October 2021. Similar legislation was introduced during the Regular Session, but lawmakers were unable to reach a compromise before time ran out.

Specific language in the new law states: “The Legislature finds that maintaining the structural integrity of a building throughout its service life is of paramount importance in order to ensure that buildings are structurally sound so as to not pose a threat to the public health, safety, or welfare. As such, the Legislature finds that the imposition of a statewide

program for aging condominium and cooperative buildings in this state is necessary to ensure that such buildings are safe for continued use.” This statement clearly sends the message to association board members that they will be accountable to their membership for the structural integrity of their building.

Key provisions of each of these new requirements follow below.

Milestone Inspections

• Required for condominium and cooperative association buildings that are three stories or higher and greater than 30 years old (or 25 years if within three miles of a coastline).

• If the buildings meet the age criteria now, the inspection must be done by Dec. 31, 2024.

• Must be performed by a licensed architect or engineer.

• Must be done every 10 years after the initial inspection.

• The inspection consists of two phases. Phase 1 requires visual inspection of certain elements of the building to assess whether “substantial structural deterioration” is identified. If none is found, no further inspection is required, and a report is prepared and submitted stating such findings. Phase 2 is required if Phase 1 does indicate substantial structural deterioration. This inspection may include destructive or nondestructive testing to determine the extent of deterioration and must make recommendations for repairs.

The legislation provides that a board of county commissioners may adopt an ordinance requiring the association to make the recommended repairs.

Structural Integrity Reserve Study

As defined by statute, the Structural Integrity Reserve Study is a “study of the reserves required for future repairs and replacement of common areas based on a visual inspection of the common areas.”

• Required for condominium and cooperative association buildings that are three stories or higher.

• The visual inspection must be performed by a licensed architect or engineer.

• Must be completed by Dec. 31, 2024.

• Must be prepared at least every 10 years.

• The study must identify the common areas being inspected. For each item, it must state the estimated remaining useful life and estimated replacement cost or deferred maintenance.

• Must include items identified in Florida Statute 718.111(2) (g) (“Paragraph (g) reserves”). (See table on next page.)

• Provide a recommended annual reserve funding amount that will provide the necessary funds to pay for the replacement or repair of these items.

• The recommended funding requirements of the study must be included in the association’s annual budget.

• Effective Dec. 31, 2024, funding for Paragraph (g) reserves cannot be waived or reduced.

• Alternate use of Paragraph (g) reserves is not allowed, even with a membership vote.

The FICPA Common Interest Realty Association Committee has a subcommittee devoted to reviewing proposed legislation and providing comments as needed. The committee reviewed the new legislation and identified a few concerns that may prove problematic as associations implement the requirements of the new law.

Separating required reserves that exist in current pooled funds Paragraph (g) reserves carry with them a different set of requirements regarding funding and alternate use compared

to regulations over existing reserves. As a result, associations will have to separate Paragraph (g) reserves from other reserves to properly administer those funds. Separating these reserves will be problematic if an association has maintained reserves on the pooled method. Existing pooled reserves will likely include funds for Paragraph (g) reserves. As these items now need to be separated, a question arises: What dollar amount of those pooled reserves can be assigned to the Paragraph (g) reserves that need to be administered under these new requirements? By definition, reserve items in a pool have no assigned value.

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A reasonable method could be established. A present-value approach looking at the required expenditures in the future and bringing them back to a present value would probably be the most technically correct. Theoretically, the sum of those present values should be the amount in the reserves.

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Another question is whether funding for Paragraph (g) reserves can be calculated on the pooled or straight-line method. Since the new law is silent on the issue, it seems we can assume that either method would be acceptable. The pooling method would soften the financial impact.

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What type of reserve study needs to be performed for the nine years between the required Structural Integrity Reserve Studies?

The law is clear that the Structural Integrity Reserve Studies must be performed once every 10 years. The results of that study must be included in the association’s annual reserve budget, and Paragraph (g) reserves as identified in that study cannot be waived or reduced. The new law is silent as to what elements are required for a reserve study that would be performed in the other nine years, other than what is already in the statute prior to the new law. This could lead to some manipulation of the inputs for the budgets in years that don’t require the Structural Reserve Integrity Study.

Can associations use reserve studies that don’t conform with the elements of a Structural Integrity Reserve Study in the

years they are not required?

Possible inconsistency when the impact of Structural Integrity Reserve Studies goes into full effect

Structural Integrity Reserve Studies are required to be completed by Dec. 31, 2024, presumably for inclusion in the 2025 budgets for calendar-year-end associations. The new law prohibits the waiver or reduced funding of Paragraph (g) reserves effective Dec. 31, 2024. As a result, the reserves in a 2025 budget that were derived from and computed by the necessary Structural Integrity Reserve Study information and funding plan could be waived or reduced by the membership as long as the vote is done before Dec. 31, 2024. We don’t believe that was the legislative intent, but it seems like an issue that needs to be resolved.

The Florida Administrative Code contains rules promulgated by state agencies. These rules are generally created to clarify language contain in Florida Statutes and are usually created as a result of a legislative directive contained in statute. We understand that, at present, there is no agency that has rulemaking authority to clarify these issues.

The full financial impact of the reserve funding requirement in the new law is, for most associations, undeterminable at this time. However, it will probably be significant. As a result, associations affected by the new law should consider including a footnote in their financial statements describing the mandatory funding requirements.

We are hopeful that these questions can be answered either in the next Legislative Session or through rulemaking.

The authors extend their thanks to the FICPA CIRA Committee’s Legislative Subcommittee for their input and analysis.

g. Electrical systems

h. Waterproofing and exterior painting

i. Windows

j. Any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000 and the failure to replace or maintain such item negatively affects the aforementioned items as determined by the engineer or architect performing the visual inspection portion of the structural integrity reserve study.

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Glad You Asked: Answers to the Most Common Cloud Computing Questions Raised by CPAs

Since 2018, Coaxis has been educating CPAs on the importance of having a secure and compliant information technology (IT) infrastructure and providing members with customized, discounted solutions as an endorsed program for the FICPA.

The reality then is the same today. A CPA firm’s data and client information are among its most valuable assets. From software and equipment updates to meeting the tech demands of today’s mobile workforce and evolving cyber risks, IT management has never been more important or more challenging.

We understand that migrating a firm’s premises-based IT infrastructure to a cloud-hosted environment can be as daunting for CPAs as tax planning and filing can be to your clients. For members who still have questions about cloud computing and what to expect from a fully hosted and managed network solution, here are answers to some of the most common questions we have addressed over the past four years.

What is cloud computing? In simplest terms, cloud computing means storing and accessing data and programs over the internet on a network of remote servers hosted by a third-party or external provider instead of on your computer’s hard drive.

What are the advantages of using a cloud provider? An alternative to on-site data centers and IT infrastructures, cloud providers offer partially hosted solutions for specific applications (like Thomson Reuters) or fully managed solutions that provide a host of advantages for firms of all sizes. They include security, compliancy, business continuity, mobility, cost and time efficiencies, and scalability, which is especially beneficial for CPA firms whose workforce and IT requirements often fluctuate in size and seasons.

What is the difference between a public cloud and a private cloud? A public cloud is a self-managed, multitenant environment where your server shares the same hardware, storage and network devices with the cloud’s other tenants. Think Dropbox and Box. Lack of compliancy and security are common concerns for most public cloud solutions. A private cloud is a single-tenant, dedicated environment designed to assure high levels of security where the hardware, data storage and network are not accessible by other clients in the same data center.

How affordable is a fully hosted and managed network solution? Most CPA firms find that moving to a full managed network solution is less expensive than operating their own premise-based server by eliminating or minimizing IT-related expenses the firm may be paying. However, it’s important to beware of hidden costs for things such as IT support and back-up charges. The Coaxis solution

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is all-inclusive with scaling costs for increasing storage or number of users reflected on the original proposal so there are no surprises.

Why should a CPA firm consider Coaxis? Coaxis provides CPA firms with a fully hosted and managed network solution – meaning data plus applications, environment, emails and security – and designed to remove the complexities of federal and industry compliances, curb the demands of maintaining an onsite IT infrastructure, and minimizing the threat of cybercrime.

What differentiates Coaxis from other cloud-hosted solutions? Coaxis has been providing managed data hosting to CPAs and the financial sector for more than 20 years. We have extensive experience supporting a broad range of tax and financial reporting software applications, including, but not limited to: Thomson Reuters/CS Professional Suite, Wolters Kluwer/CCH Solutions, Intuit QuickBooks Enterprise/Premier, Lacerte Tax, ProSeries, Drake, OfficeTools, Workspace, Sage Accounting and others. In most cases, our tech support team can resolve financial software questions promptly and without referring the user to the software vendor.

What federal and financial industry compliances does Coaxis maintain? Coaxis is compliant with GLBA, HIPAA HITECH, and CJIS. Additionally, Coaxis has a SOC 2 Type 2 Unqualified Audit Opinion and is FedRAMP and FISMA ready.

What is a Service Level Agreement and why is it important? Service Level Agreements – commonly referred to as SLAs – are a contract between a service provider and a client that covers important factors such service quality, service response times, and service responsibilities. For instance, Coaxis owns and operates a private, single-tenant data center that is built, operated and maintained to strict ANSI/TIA-942 Site - Rated 3 standards with the infrastructure, capacity and maintenance to provide an uptime more than 99.9999%.

What is the onboarding and implementation process and how long does it take? Each new client is assigned a dedicated implementation manager to manage the entire onboarding and deployment process. It begins by gathering information using technical audits and onsite visits to evaluate your firm’s infrastructure and confirm software compatibility. If necessary, the team will work with your vendors to ensure they’re supported in the new environment. Next, we build the new infrastructure to replicate your current one as closely as possible and conduct pre-deployment testing with your firm’s “power users” to make sure everything is working as it should. We also provide staff training on how to

use the new system before it is deployed to minimize learning curves and workflow disruption. Coaxis’ deployment plans typically take 15 days until implementation.

If we move physical locations, do we have another setup fee? There is no fee if your office moves physical locations. Since all your data and applications are hosted in our data center, it doesn’t matter where you are physically located, you will always be able to connect provided you have an Internet connection.

What is included in the Office 365 E3 package? Office 365 E3 includes Word, Excel, PowerPoint, Outlook, Encryption, Archiving, SharePoint and Exchange 100GB.

Can we restrict websites? Websites can be restricted for a company through set security policies.

Can we save files from the cloud to our laptop’s hard drive, make changes and then send it back to the cloud server for times when we are working in places that may not have Wi-Fi/internet access, such as on a plane? We have a tool that allows you to move files out of the cloud and onto your local computer and back again that is free to use with our service.

FICPA members rely on information technology to manage their practices and meet the needs of their clients. And yet, the ability to create, process, store, retrieve and exchange electronic data and information brings with it constant change, complexity and unforeseen threats. Without professional IT management, your firm’s productivity and reputation can be adversely impacted.

Moving to a fully hosted and managed cloud-based network solution offers a wealth of benefits that range from curbing the demands of maintaining an IT infrastructure and reducing software and hardware costs to removing the complexities of federal and industry compliances and greatly minimizing the threat of cybercrime. To learn more, contact Lisa Bryant at (850) 391-1022 or lisa.bryant@coaxissolutions.com.

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SCHOLARSHIP FOUNDATION

Congratulations to Our Class of 2022!

We are pleased to introduce our FICPA Scholarship Foundation Class of 2022. Congratulations go out to all 74 FICPA Scholarship recipients. We are proud to add these future CPAs as part of our Foundation family! Please note: The window to apply for a 2023 FICPA Scholarship will open on Jan. 1, 2023.

Richard Abasial

Florida State University – Tallahassee Carroll Endowed Scholarship

Mya Anderson

Florida A&M University

Wilcox Endowed Scholarship

Shanyne Blanc

Miami-Dade College Professor Burrows Scholarship

Marco Calvo

St. Leo University FICPA Scholarship

Hunter Caron

Florida Atlantic University Lewis Davis Scholarship

Shane Charles Florida Institute of Technology FICPA Scholarship

Dennis Clarke

University of South Florida - Tampa

John Perry Thomas Endowed Scholarship

Katrina Cruz

University of Central Florida FICPA Scholarship

Rick Daniel St. Thomas University Lewis Davis Scholarship

Yesmin Delgado Alabart

University of South Florida - St. Petersburg Anderson Endowed Scholarship

Chabella Diaz

University of Central Florida Mia Thomas Endowed Scholarship

Amanda Duenas

University of Miami FICPA Scholarship

Hayden Dumars

University of Florida Bond Foundation Scholarship

Katelyn Dunlap

University of Central Florida FICPA Scholarship

Clarissa Eraso

University of Miami FICPA Scholarship

Noel Fagg

Florida State University - Panama City FICPA Scholarship

Sydnei Favorite University of West Florida FICPA Scholarship

Strevetchy Fleurime Miami-Dade College Professor Burrows Scholarship

Skylar Flood

Nova Southeastern University Stevens Endowed Scholarship

Pedro Flores-Carrillo Indian River State College FICPA Scholarship

Nicole Fulford

Flagler College - St. Augustine FICPA Scholarship

Nicholas Gamotis

University of West Florida FICPA Scholarship

Valeria Garces

Florida Atlantic University

Nedlisky Endowed Scholarship

Quincy Garcia Escobar

Miami-Dade College Stevens Endowed Scholarship

Patricia Gomez

Florida Atlantic University North Dade/ South Broward Chapter Endowed Scholarship

Christian Hill

University of South Florida - St. Petersburg

Cavanaugh Endowed Scholarship

Ethan Hull

Stetson University Shierling Endowed Scholarship

Emmanuela Jean-Baptiste

Florida Atlantic University

Wilcox Endowed Scholarship

Louise Joseph

Florida Gulf Coast University FICPA Scholarship

Mary Joyce

University of South Florida - Tampa

Cohen Endowed Scholarship

Joseph Jusinski

Nova Southeastern University FICPA Scholarship

Hallie Kern Jacksonville University FICPA Scholarship

Rebekah Kishna

University of South Florida - Tampa

Azalea Grace Endowed Scholarship

Walter Klein

Stetson University Shierling Endowed Scholarship

Austin Kocher

University of South Florida - St. Petersburg Gulisano Endowed Scholarship

Zhishan Liang

Florida Gulf Coast University FICPA Scholarship

Madison Lilienthal

Southeastern University FICPA Scholarship

Lara Litton

Florida Atlantic University

Brigade Endowed Scholarship

David Long

Bethune-Cookman University

Wilcox Endowed Scholarship

Fairuts Lopez St. Thomas University

FICPA Scholarship

Fabio Louis

University of South Florida - Tampa FICPA Scholarship

Lily Lyons

University of South Florida - Tampa

FICPA Scholarship

Spencer Machuga

Stetson University

Harris Endowed Scholarship

Patrick Maggio

University of South Florida - Tampa

FICPA Scholarship

Antwain Marshall

University of North Florida

Douglas Davis Endowed Scholarship

Micah Martin

University of Florida

Lane Endowed Scholarship

Lisandro Mateo University of Florida FICPA Scholarship

Jasmin McIver

Nova Southeastern University Wilcox Endowed Scholarship

Danielle Middleton

Florida State University - Panama City

Prague Endowed Scholarship

Julianna Mirabile

University of Tampa

Cavanaugh Endowed Scholarship

Dominique Olivo

Florida State University - Tallahassee

Bond Foundation Scholarship

Simon Ouellet

Ave Maria University

FICPA Scholarship

Alexandru Pasarariu

Florida Atlantic University

Brigade Endowed Scholarship

Lydia Paternoster

Florida Gulf Coast University FICPA Scholarship

Rebekah Pratt

Florida Institute of Technology FICPA Scholarship

Isabella Quintero

University of Florida FICPA Scholarship

Tiffany Regueira

University of Miami North Dade/South Broward Chapter Endowed Scholarship

Christopher Ries Florida Gulf Coast University Prague Endowed Scholarship

Abigail Roskind

Jacksonville University

Nedlisky Endowed Scholarship

Mia Steller

University of Florida FICPA Scholarship

Michael Sterling

University of Central Florida Wilcox Endowed Scholarship

Victoria Taranowski Stetson University Shierling Endowed Scholarship

Skyler Tawney

University of Tampa Pender Endowed Scholarship

Mia Tellechea-Choi

Florida State University - Tallahassee Gulisano Endowed Scholarship

Valerie Tenemas

Florida Atlantic University

Wilcox Endowed Scholarship

Hailey Tomas

University of West Florida FICPA Scholarship

Isabel Torres

University of Central Florida Bond Foundation Scholarship

Thuy Tran

University of South Florida - Tampa Bond Foundation Scholarship

John Tucker

Florida Southern College Pender Endowed Scholarship

David Turino

University of Florida FICPA Scholarship

Cristina Valadez

Florida International University

Lewis Davis Scholarship

Casey Van Dyke

Florida State University - Tallahassee

Friedly Scholarship

James Wiseman

University of West Florida Anderson Endowed Scholarship

Teresa Xiao-Lin

University of Florida Turman Endowed Scholarship

CARSHENA ALLISON, 2022-23 FOUNDATION CHAIR

Scholarship Foundation Expands the Scope of Its Vision and Mission

The FICPA Scholarship Foundation has long acknowledged the level of work, commitment, and financial support needed for individuals to become CPAs. As such, the organization has disbursed more than $4 million since 1959 to financially support students enrolled in accounting programs.

Recently, the Foundation’s Board of Trustees reviewed the challenges affecting both the CPA pipeline and the retention of CPAs.

We determined that there was an opportunity to reach more individuals and make a significant impact on current and future CPAs by expanding the Foundation’s vision and mission, which are outlined below:

Vision: To attract talent and cultivate the accounting profession in Florida.

Mission: To provide support and foster success for current and future CPAs

To fulfill our vision and mission, the Foundation will operate according to the following core principles, as we:

• Provide financial scholarships to students to reduce the burden of entry into the CPA profession

• Empower career advancement opportunities for current CPAs

• Encourage, support, and promote diversity to create a more inclusive profession

• Provide a bridge between students, academia, and the business community

• Assist to develop students and young CPAs as future leaders of the community and serve others

In expanding the scope of these statements, our goal is to provide support and engagement along the entire career pathway, rather than focus solely on scholarships at the collegiate level.

The CPA designation is a symbol of trust and professionalism in the communities we serve, which is why we must work to ensure that financial barriers do not impede the ability of deserving individuals to become CPAs.

We continue to listen to our students, members, and practitioners regarding the challenges and demands in achieving and maintaining the CPA license. We recognize the need to increase awareness of the CPA profession, provide support where financial gaps may exist for CPA requirements, and provide development and retention opportunities for CPAs working in the profession.

As we embark on our five-year strategic plan, we look forward to communicating our vision to our partners, stakeholders, and local communities. These vital connections will provide an understanding of exactly how our expanded direction can make a positive impact on the profession as a whole.

Our goal is to provide support and engagement along the entire career pathway.

Serving the collective needs of neighboring property owners

November 10-11, 2022

Broward County Convention Center, Ft. Lauderdale + Online

CPE: Up to 16

The FICPA CIRA Committee is proud to host our 20th Annual CIRA Conference at the Broward County Convention Center in Fort Lauderdale, Florida. Our two-day program will be full days of education and updates focused solely on the CIRA industry and topics relevant to CPA practitioners.

CPAs must know the complex issues faced by common interest realty associations to serve them well. At the annual two-day CIRA Conference, you’ll hear from regulators, attorneys, reserve specialists and CPAs specializing in this industry.

BRING YOUR TEAM AND SAVE!

To maximize cost savings, we recommend you combine early bird savings with a group discount! Groups of 5-7 receive 15% o , and groups of 8 or more receive 20% o . (Group discounts cannot be booked online.)

FGFOA, FAC and FACC members can also register at FICPA member rates! Call the FICPA Member Service Center at (800) 342-3197 to sign up and save.

EARLY BIRD SPECIAL | BOOK BY OCTOBER 18

EARLY BIRD SPECIAL | BOOK BY OCTOBER 18

At the FICPA Scholarship Foundation, we are dedicated to our vision to attract talent and cultivate the accounting profession in Florida by providing support and fostering success for current and future CPAs.

So far this year, we have had the opportunity to host several successful events, including our Virtual 1040K Race, Day at the Races, and Golfing Fore Education outing.

As we look ahead, we are thrilled to announce the launch of an all-new, statewide TopGolf Tournament. Firms, corporations, current and past FICPA Scholars, university partners, families and friends will all have the chance to come together at TopGolf locations across the state. Mark your calendar and join us on Thursday, Jan. 12, 2023, in Orlando, Lake Mary, Tampa, Miami Doral, Miami Gardens or Jacksonville and

compete via a live, virtual tournament leaderboard. Registration and sponsorships now available for purchase on our website: https://www.ficpascholarshipfoundation.org/ topgolf.

We also hope to see you for our Suncoast Scramble outing at The Eagles Golf Club in Odessa on Thursday, Oct. 27, and for our three Scholarship Nights honoring our Class of 2022 through the fall!

Warm regards, Kelsey Bryceson, Events & Development Manager kelseyb@ficpa.org

2022-23 Scholarship Foundation Board of Trustees

Finally, we are pleased to welcome our new 2022-2023 Board of Trustees! New members are highlighted in bold below:

Carshena Allison (Chair)

Elizabeth Carlson

Silvana Capaldi

(Programs Chair & Chair-Elect-Elect)

David Cumberland

Jason Chorlins

Lori Gleim

Michael Halfast

Paul Hays

Celina Jozi

Nancy Juron

Jennifer Keller

Jason Klein

Gary Margolis (Finance Chair)

Kylan McNemar

Bitnita Mehta

Frank Morera

Steven Morrison (Fundraising Chair & Chair-Elect)

Joe Murray

Brandon Perry

Angela Poole

Amanda Porupski

William Quilliam (Governance & Nomination Chair)

Sean Robinson

Marie Rosier (Marketing Chair)

Maria Rust

Amy Santos

Rick Shapiro

Rick Smith

Paola Suarez

Carey Vasallo

Shelly Weir

Alan West

Floridians to Vote in November on State Constitutional Amendments Affecting Property Tax

By John Harrell,

Florida voters will determine the outcome of two state constitutional amendments relating to property tax that will appear on the November 2022 general election ballot. This is a quick summary:

House Joint Resolution 1 and implementing language in House Bill 1563 from the 2022 regular legislative session authorize an additional $50,000 property tax exemption on property owned by certain “front-line” workers. These include classroom teachers, law enforcement officers, correctional officers, firefighters, emergency medical technicians, paramedics, child welfare services professionals, active-duty members of the U.S. Armed Forces, and Florida National Guard members. The additional $50,000 exemption will apply to a property’s assessed value between $100,000 and $150,000 for all taxes except school district taxes. Qualified homeowners would have to meet certain conditions outlined in the legislation and provide specified information annually to their property appraisers to receive the exemption. A county property appraiser would be able to take action if a taxpayer improperly claims the exemption, and penalties could also be applied. Consistent with existing exemptions, the Legislature would appropriate funds to offset reductions in ad valorem tax revenues experienced by fiscally constrained counties.

House Joint Resolution 1377 and implementing language in House Bill 7061 from the 2021 regular legislative ses-

sion prohibit a county property appraiser from considering changes or improvements to residential property that improve the property’s resistance to flood damage when determining the property’s assessed value. The assessed value of a residential property would not increase if the property is voluntarily elevated to meet National Flood Insurance Program and Florida Building Code elevation requirements and the square footage of the property after improvements does not exceed 110 percent of the original square footage. The area below an elevated structure created as a result of elevating the property would be excluded from that 110 percent as long as it is used solely for parking, storage, or access and does not exceed 110 percent of the original property’s square footage. The assessed value of the property would not increase if the total square footage of the property is 1,500 square feet or less. The portions of property exceeding these limits would be assessed at just (market) value.

These amendments must have at least 60% voter approval to be become law. If approved, the exemptions will take effect on January 1, 2023.

The Florida Department of Revenue’s Property Tax Oversight program provides information on exemptions and other property tax related topics at floridarevenue.com/property. For more information, call Property Tax Oversight, Technical Assistance at (850) 717-6570 or email DORPTO@floridarevenue.com

Property Tax Oversight, Florida Department of Revenue

OCTOBER 27-28, 2022

Location: Embassy Suites, Estero

CPE: Up to 16 Hours

Register at FICPA.ORG/FGCU

by Sept. 22 to take advantage of early registration pricing.

Classified Ads

For information on rates and classified ad policies, visit ficpa.org/marketplace.

READY TO MERGE OR SELL YOUR FIRM? Are you a retirement-minded CPA but don’t have a clear plan of what to do? Give us a call. KSDT CPA is one of South Florida’s fastest-growing firms. Contact Jeff Taraboulos at info@ksdt-cpa.com or (305) 670-3370 to learn about favorable purchase terms.

UNIQUE OPPORTUNITY. Long-established CPA practice in South Florida is seeking sole practitioners or firms to associate, affiliate and assimilate into our practice with the intent of full partnership and eventual ownership upon retirement of the founding partners. This is a unique opportunity to transition our clients and grow yours with our facility and complement of necessary software and systems. For a confidential discussion and full details, send contact information to mirage2318@gmail.com

PRACTICES FOR SALE

RETIREMENT MINDED CPA - SOLE PRACTITIONER. Located in Indian River County. Annual 2021 revenue in excess of $260K and on the same track for 2022. Primarily a tax practice seeking association with a sole practitioner or firm with ultimate sale of practice. Email msc@ficpa.org and reference Ad#638.

SOUTHWEST FL PRACTICE FOR SALE. Tax and writeup practice for sale in Lee County, FL, in Fort Myers area for $295,000. 225K+ annual gross. Well-established over 26 years. Please respond to cpapracticesale@gmail.com for details.

RETIREMENT-MINDED CPA. We are seeking a firm to merge and ultimately acquire our practice. Located in a high-growth area of Volusia County. Annual 2022 revenues are projected at more than $500K, consistent with 2021. Primarily a tax and consultation practice, we are seeking association with a sole practitioner or firm with ultimate sale of practice. For information email msc@ficpa.org and reference add #609.

FICPA Conferences Are Where Members Make Memories

EVENTS

October 20-21, 2022 Online FICPA.ORG/FALL

October 21, 2022 Orlando + Online FICPA.ORG/CIC

October 27-28, 2022

Estero + Online

FICPA.ORG/FGCU

November 9-11, 2022

Fort Laderdale + Online

FICPA.ORG/SFAC

November 10-12, 2022

Gainesville + Online

FICPA.ORG/UFAC

November 10-11, 2022

Fort Laderdale + Online

FICPA.ORG/CIRA

January 11-13, 2023

Miami + Online

January 13-14, 2023

Fort Laderdale + Online

This dues renewal cycle, stand with our profession and make a voluntary contribution to the Florida C PA / PAC .

Donating to the Florida CPA/PAC is the most e ective way to ensure you have a voice in the political process. Your donations go directly towards vetting, educating, and electing pro-CPA, pro-business candidates who understand the issues a ecting our profession. We carefully research and interview every candidate we support so that your dollars go towards supporting positive legislative change. And with multiple membership tiers and ways to give, we make it easy for you to make a di erence this November.