Insight Magazine - July 2009

Businesses get creative in their hunt for everelusive

30 Desperately Seeking Investors

B y Sh er yl N a n c e - N a sh

Businesses are searching high and low for scarce investment dollars

34

Capital Conscience

B y D er r i c k Li l l y Nonprofits are feeling the pinch

38

Recession-proof Investments

B y C a r o l yn Ta n g

We’ve seen the collapse of glorified investment houses, government takeovers of bereft corporations and a steep downturn in the markets Given these conditions, the question of where to put your investment dollars is a heady one

6

The Chair Lee A. Gould, CPA/ABV, JD, CFE, CFF

Incoming Society Chairperson Lee A Gould shares his hopes and aspirations for the year ahead

12

Career Jet Set

B y C ec i l y O’ C o n n o r

Working abroad can fast-track you to the top

14 Technology Twitterblogiverse

B y A l l i so n E n r i g h t

Can you social network your way to business success?

16 Supply Chain Heavy Lifting

B y Sel en a C h a vi s

Build a strong supply chain to wrestle a weak economy.

20 Diversity Accounting Women

B y IC PA S Wo m en ’ s E xec u t i ve C o m m i t t ee

Why hasn’t anything significantly changed for women in public accounting leadership roles?

24 Development Goodbye Training Program?

B y Ren ee B ec k m a n , C PA

Don’t bid adieu to your staff development dollars quite yet Find budget-friendly training alternatives instead

26

Strategy Set the Standard

B y D ea n K . Ma t t , C PA

How do you define success in an uncertain economy?

28

Tax Small Biz, Big Impact

B y H a r vey C o u st a n , C PA

Tax act provisions could mean significant changes for the nation’s small businesses

Garelli

To learn more about our dedication to finding the right fit, visit us on the web or call your local office.

Publisher

ICPAS President & CEO

Elaine Weiss, JD

Editor-in-Chief

Publications Director

Judy Giannetto

Creative Services Director

Gene Levitan

Creative Services Manager

Rosa Garcia

Publications Specialist

Derrick Lilly

National Sales & Advertising

Stephanie Bunsick

The YGS Group

1808 Colonial Village Lane Lancaster, PA 17601

Phone: 1 800 501 9571, ext 137

Fax: 1 717 390 9891

stephanie.bunsick@theygsgroup.com

Information Systems Manager

Jim Jarocki

j arocki j @ i cpas org

Editorial Office

550 W Jackson Blvd , Suite 900, Chicago, IL 60661

INSIGHT is the official magazine of the Illinois CPA Society, 550 W Jackson, Suite 900, Chicago, IL 60661, USA Its purpose is to serve as the primary news and information vehicle for some 23,000 CPA members and professional affiliates Statements or articles of opinion appearing in INSIGHT are not necessarily the views of the Illinois CPA Society The materials and information contained within INSIGHT are offered as information only and not as practice, financial, accounting, legal or other professional advice Readers are strongly encouraged to consult with an appropriate professional advisor before acting on the information contained in this publication It is INSIGHT’s policy not to knowingly accept advertising that discriminates on the basis of race,religion, sex, age or origin

The Illinois CPA Society reserves the right to reject paid advertising that does not meet INSIGHT’s qualifications or that may detract from its professional and ethical standards The Illinois CPA Society does not necessarily endorse the non-Society resources, services or products that may appear or be referenced within INSIGHT, and makes no representation or warranties about the products or services they may provide or their accuracy or claims The Illinois CPA Society does not guarantee delivery dates for INSIGHT The Society disclaims all warranties, express or implied, and assumes no responsibility whatsoever for damages incurred asa result of delays in delivering INSIGHT INSIGHT (ISSN-1053-8542) is published bimonthly except monthly in July and August by the Illinois CPA Society, 550 W Jackson, Suite 900, Chicago, IL 60661, USA, 312 993 0393 or 800 993 0393, fax 312 993 0307

Subscription price for non-members: $30 U S , $40 Canada and International addresses, $42 Mexico Copyright © 2009 No part of the contents may be reproduced by any means without the written consent of INSIGHT Permission requests may be sent to: Editorial Director, at the address above Periodicals postage paid at Chicago, IL and at additional mailing offices POSTMASTER: Send address changes to: INSIGHT, I l l i n o i s C PA S o c i e t y, 550 W Jackson, Suite 900, Chicago, IL 60661, U S A

I N S I G H T A W A R D S

2008 Apex Award, Magazine & Journal Writing

2007 Magnum Opus Award, Best All-around Association Publication

2006 Apex Award, Magazines & Journals

2006 Apex Award, Magazine & Journal Writing

2004 Apex Award, Magazines & Journals

2004 Apex Award, Magazine & Journal Writing

2002 Apex Award, Magazine & Journal Writing

2002 Chicago Women in Publishing Excellence Award, Writing/Editing

2001 Apex Award, Feature Writing

2001 Apex Award, Best Redesigns

2000 Apex Award, Magazine & Journal Writing

2000 Apex Award, Best Rewrites

The economy tanked, the stock market crashed, t h e u n e m p l o y m e n t r a t e s o a r e d , t h e r e a l e s t a t e sector collapsed Bernard Madoff was caught in t h e b i g g e s t P o n z i s c h e m e i n r e c e n t h i s t o r y a n d m a j o r banks and investment firms with distinguished names and records of success disappeared overnight Other than that, Mrs Lincoln it was a quiet year

Despite the historic and tumultuous year, with its economic turbulence and significant impact on savings and investments, I am gratified to report that the Illinois CPA Society ends its own fiscal year on solid ground, bolstered by its strong leadership, active membership and professional commitment to serving the CPA community and the public at large

Under the impressive leadership of Sheldon Holzman, the ICPAS calmly navigated through the year, serving the needs of our members in a rapidly changing business environment We developed programs to address the increasing number of members who found themselves facing career transitions in uncertain times Our Town Hall forums around the state saw increased turnout as members were anxious to stay up-to-speed on professional issues and to maintain contact with professional colleagues.

The media turned to the ICPAS for assistance in unraveling the economic complexity of the world around us From the President’s economic stimulus plan to the Governor ’s budget proposal, the media now seeks ICPAS members to provide the context, quotes and background to make sense of financial developments and the day-to-day world around them

The emerging issue of International Financial Reporting Standards captured the attention of the CPA profession this year The ICPAS provided programs and resources to help our members get up-tospeed on the wide range of issues corresponding to IFRS Our public service efforts increased this year, as CPA members gave their time and expertise to assist people in critical need of financial assistance, from flood victims in Iowa to military personnel and their families around the state The ICPAS also continued its outreach to students and young professionals, to engage them in service and social networking opportunities that will keep them connected to their professional community and ensure a future pipeline of smart, savvy CPAs in coming years. Our government affairs team worked hard to advocate on behalf of Illinois CPAs and finance professionals, leading our efforts in both Springfield and Washington, D C

While the economy dominated our thoughts and activities in recent months, I believe the ICPAS ends the fiscal year on a positive note Membership is up slightly over last year Our operational budget stayed the course. The student pipeline into the profession remains robust. Our members continue to give their time and talents to serving the ICPAS even while their day-to-day work lives get tougher and their own workforce challenges get greater Make no mistake The past year has been rough The year ahead looks to be challenging. But the ICPAS is prepared to meet the challenge.

Today you can link-in, twitter, friend us or just show up at an old-fashioned seminar The ICPAS stands ready to serve In a very tough year, I want to thank the staff and the volunteer leadership for stepping up to the plate and serving the CPA community with energy, expertise and enthusiasm. El ai

I C

P A S O F F I C E R S

Chairperson, Lee A Gould, CPA/ABV, JD, CFE, CFF Gould & Pakter Associates LLC

Vice Chairperson, Sara J. Mikuta, CPA The Leaders Bank

Secretary, Charles F. G. Kuyk III, CPA Crowe Horwath and Company LLP

Treasurer, Robert E Cameron, CPA Cameron Smith & Company PC

Immediate Past Chairperson, Sheldon P Holzman, CPA, CFE, CFF Baker Tilly Virchow Krause, LLP

I C P A S B O A R D

O F D I R E C T O R S

Brent A Baccus, CPA Washington Pittman & McKeever

Therese M Bobek, CPA PricewaterhouseCoopers LLP

William P Graf, CPA Deloitte & Touche LLP

Kelly J Grier, CPA Ernst & Young LLP

Cara C. Hoffman, CPA Blackman Kallick LLP

James P Jones, CPA Edward Don & Company

Charlotte A Montgomery, CPA Illinois State Museum

Elizabeth A Murphy, PhD DePaul University

Annette M O’Connor, CPA RR Donnelley & Sons Company

Michael J Pierce, CPA RSM McGladrey Inc

Marian Powers, PhD Northwestern University

Daniel F Rahill, CPA KPMG LLP

Lawrence H. Shanker, CPA Shanker Valleau Accountants Inc

Edward H Stassen, CPA Recycled Paper Greetings Inc

It is with great pride and respect for those who have held this position before me that I embark on my year as chair of the Illinois CPA Society

W h e n I b e g a n m y p r o f e s s i o n a l c a r e e r a s a y o u n g auditor (and, might I add, naïve; but, of course, with a dose of healthy skepticism imbedded in me by my auditing professors at the University of Illinois), I had dreams and ambitions of a career in public accounting as an auditor Although my career path has dram a t i c a l l y c h a n g e d f r o m m y i n i t i a l y e a r s i n p u b l i c accounting (for those whom I have not yet had the privilege to meet, I am now on the consulting side of the profession), I am an auditor at heart and remain a very proud CPA

As a longtime member of the Illinois CPA Society, I value all that I have learned as a volunteer on various Society committees and special interest groups, and during my tenure as a Board member As a result of these contributions, I have learned how the Illinois CPA Society affects and enriches our profession.

Although the ICPAS strives to proactively meet the needs of our membership, and is one of the most respected contributing state societies to the AICPA, we need to continue to grow and evolve To accomplish that end, the Board of Directors and the ICPAS undertook a Board Governance initiative that began three years ago. The initiative’s purpose is to align the ICPAS w i t h t h e b e s t p r a c t i c e s i n n o n p r o f i t g o v e r n a n c e , a n d c r e a t e a s t r a t e g i c m i s s i o n - f o c u s e d agenda. Our focus includes, among other goals and objectives, to:

n Anchor and align the Society with its mission (“Enhancing the Value of the CPA Profession”) and ends policies (which describe the results the Society strives to accomplish in support of its mission)

n S t r e n g t h e n a n d g r o w n o t o n l y o u r m e m b e r s h i p b u t a l s o t h e i n v o l v e m e n t o f a l l o f o u r members, especially our young professionals (our future leaders)

n Maintain and enhance services to our valued membership.

n Embrace and nurture the growth of diversity within the profession and the Society

As a result of this focus, as well as the many other initiatives undertaken by the ICPAS on our behalf, I am very excited about the direction in which the ICPAS is headed.

The initiatives undertaken by the ICPAS are far too numerous to list in these brief remarks, but needless to say, their impact has been extremely positive However, I believe we must continue to improve and enhance the value of all CPAs Part of that goal the need to increase the diversity of our membership and persuade a wide range of minorities to join our noble ranks remains a priority I am proud of the ICPAS’ outreach programs and initiatives currently in place, and am deeply pleased with and excited about the diversity initiatives currently being developed in partnership with the CPA Endowment Fund

I look forward to beginning my year as chair Although I believe that the ICPAS will continue to make a positive impact on the profession, I encourage you to provide input and guidance on how we can better serve you

To the numerous CPAs that I am already acquainted with, I hope to see you in attendance at one of several Society Town Hall Forums, conferences or seminars I am eager to hear about what your CPA means to you and how we can further its value for you To those of you whom I have not yet met, I look forward to meeting you to learn your personal story, and what being a CPA means to you.

Lee A Gould, CPA/ABV, JD, CFE, CFF, ICPAS Chairperson

SEEN H E A R D

$11.6 bil lion

Compensation earned by the top 25 hedge fund managers in 2008.

Source: Institutional Investor/Alpha Magazine

Recession Changes Accountant’s Role

While the US Bureau of Labor Statistics continues to report month- over-month job

Reporting Standards (IFRS), the Economic Stimulus Package and

need for financial analysis, budgeting and forecasting during the recession Their responsibilities, however, are changing

Ajilon Finance polled 688 finance and accounting professionals as part of the Institute of Management Accountants' Inside Talk Webinar Series, to gauge how the current economy is impacting jobs, companies and the accounting profession According to the survey, 75 percent feel that the recession has changed their on-the-job responsibilities, with 59 percent citing more time spent on cost-cutting initiatives Twenty-seven percent cited more time spent on risk assessment, a further 27 percent cited providing financial advice to their companies, and 9 percent cited a focus on regulatory work In the face of these changes, Ajilon offers finance professionals these tips:

1 S t a y f o c u s e d It ’ s easy to lose sight of the most important task fostering and growing business profitability Finance managers should work closely with all stakeholders and anticipate their needs in the current economy

2 Fo l l o w t h e s t i m u l u s Company leaders should think about how this capital infusion will affect their company ' s business, in order to better prepare for market changes

3 P a y a t t e n t i o n t o T A R P Companies should review their accounting and legal teams to ensure they have the necessary talent to handle increased government regulation should their business participate in the Troubled Asset Relief Program (TARP)

4 R e d u c e c a r b o n f o o t p r i n t s An easy way to trim costs is to reduce office energy usage Significant cost savings can be realized by turning off office equipment at night and switching off unnecessary lighting

For more information, visit www ajilon com

IFRS Inspires Mixed Feelings

Grant Thornton LLP ’ s national survey of CFOs and senior comptrollers from public and private entities reveals that 49 percent believe US companies should be permitted to use IFRS instead of US GAAP for filing financial statements with the SEC The remaining 51 percent, however, sits on the other side of the fence Given the choice, 40 percent would choose to never use IFRS, while the rest are looking to bide time before implementation Twenty percent said they would start using IFRS in 2011, 19 percent would prefer to start using IFRS some time after 2016, and another 18 percent favor 2014

Visit www grantthornton com for more

1.5 million

The number of accountants and auditors

States by 2016.

Source: Bureau of Labor Statistics, Occupational Outlook Handbook, 2008-09 Edition

90 million

The number of tax returns filed electronically this year; a new record, led by a big increase in people using home computers

Source: Internal Revenue Service

The World’s Top 10 Business Risks

Late last year, Aon began surveying business leaders from 40 countries in 31 industries to determine the world’s greatest emerging and escalating business risks The recently released Definitive Report on Risk – Aon’s 2009 Global Risk Management Survey reveals that the top 10 most pressing risks are: 1 The economic slowdown 2 Regulatory/legislative changes

3 Business interruption 4 Increasing competition 5 Commodity price risk 6 Damage to reputation 7 Cash flow/liquidity risk 8 Distribution or supply chain failure 9 Third-party liability 10 Failure to attract or retain top talent

For more on the survey, visit www aon com

Question Your Way to Success

According to the Gallup Organization, determining why one organization, division, department or any other managerial unit is happier and more profitable than another comes down to the answers to these 12 questions:

1 Does everybody know what is expected of them?

2 Do they have the materials and equipment they need to do the work correctly?

3 Do team members have the opportunity to do what they do best every day?

4 In the last seven days, have they received recognition or praise for good work?

5 Does their manager, or someone else in the team, care about each individual as a person?

6 Does every person in the team have someone who encourages his or her development?

7 Does everybody's opinion in the team seem to count?

8 Is the company ’ s mission explained in such a way that the team feels its work is important?

9 Are all the people in the team visibly committed to doing quality work?

10 Does everybody in the team have a best friend at work?

11 In the last six months, has the manager talked to each team member about progress?

12 Does every person have the opportunities to learn and grow at work?

The questions and their ability to analyze managerial performance are documented in First Break all the Rules, by Marcus Buckingham (Simon & Schuster, 1999) [Source: Coaching for Leadership, coachingleadership blogspot com]

Worries Linger Among Real Estate CFOs

A recent Grant Thornton LLP survey of 28 CFOs and senior comptrollers from public and private companies in the real estate industry reveals that 93 percent expect commercial real estate values to continue their decline through the year What’s worse, 63 percent report that their property tax assessments have continued to increase during the past three years

Adding to the glum outlook is the fact that more than four-out-of-five (82 percent) real estate CFOs believe the US economy will remain in a recession through the end of the year; 75 percent expect it to remain the same or get worse during the next six months; and 39 percent expect layoffs at their companies

Facing pricing pressures themselves, 71 percent of real estate CFOs are concerned about the cost of employee benefits, while 74 percent are cutting costs by not giving raises this year and refining and streamlining processes

For more on the survey, visit www.grantthornton.com.

The Illinois CPA Society has made it easier than ever to identify the up and comers in the accounting profession. Just visit the Illinois CPA Society’s Career Center and search student resumes to fill your next internship.

All across the state, Illinois CPA Society student members have uploaded their resumes for you to view online. These students represent the future of the profession and your guidance as a seasoned member of the profession can put them on the right track. These students are available for summer, fall or spring internships.

Search by various criteria, including:

The best and brightest interns are at your fingertips.

51 percent

Decline in Q1 2009 IPOs compared to Q1 2008

Source: Ernst & Young US IPO Pipeline study

Fast Track Back to the Manager ’s Seat

In a recent Robert Half Management Resources survey, executives polled felt that, on average, a senior manager could be out of work for nine months before his or her career prospects were adversely affected If nine months seems too long a stretch, however, these five tips may help to speed the process

1 . B e f l e x i b l e . Explore ways to apply your expertise in new areas and highlight your transferable skills

2 N e t w o r k e f f e c t i v e l y Make sure your network includes people both inside and outside of your industry, and at various experie n c e l e v e l s N e t w o r k i n g w e b s i t e s l i k e L i n k e d I n c a n e x t e n d y o u r reach even further

3 . K n o w t h e c o m p a n y. The more you can find out about a business ’ strengths, weaknesses and corporate culture, the better you can tailor your resume to fit its needs

4 C o n s i d e r r e l o c a t i n g Be open to opportunities in other cities or states, particularly if your skills are highly specialized or few job openings exist locally

5 S t a y p o s i t i v e Finding a management position can take longer than you expect, simply because there are fewer positions currently available Try not to be discouraged, however, since you’ll wear away the very confidence you’ll need to win over recruiters For more information, visit www rhi com

C o r r e c t i o n : Please note that in the May/June 2009 edition’s Cutting Room article, Crowe Chizek should have appeared as Crowe Horwath Also, Mike Hillgameyer was intended to appear as Mike Hillgamyer

Obama’s 2010 Budget & Illinois

Under President Barack Obama’s 2010 budget, which strives to create jobs and boost the economy, Illinois will see a range of changes in healthcare, education, veteran affairs and infrastructure funding Highlights include:

n Tax cuts for 4 8 million families

n $17 5 billion in small biz loan guarantees to get credit flowing

n $4 5 billion in new funding for Pell Grants to help families pay rising college fees

n $1 2 billion for schools, students and teachers

n A 2 9-percent pay raise for the 47,900 men and women in Illinois serving in our Armed Forces

n The establishment of a national Infrastructure Bank to fund Illinois infrastructure projects

n A $76 6 million investment in the federal HOME program

n $63 3 million for the Housing Choice Voucher program to help Illinois families find affordable, good quality places to live

n $643 9 million for state and local student achievement initiatives in low-income areas

n $119 1 million for teacher and principal training and recruitment efforts in high-need school districts

n $12 4 million for the state’s School Breakfast program and $55 million for its School Lunch program

Source: WhiteHouse gov

Higher Pay is the Way to Play

Overall, an increase in salary is the most popular means of compensation among 2,000 senior executives and managers, according to a worldwide NFI Research survey The next most popular method is performance -based bonuses (16 percent), closely followed by more vacation time (15 percent) Almost half (49 percent) of respondents at large companies rank salary increases top, compared to 38 percent at small companies

Visit NFIResearch com for more survey results

Jet Set

Wo r k i n g a b ro a d c a n fa s t - t ra c k yo u t o t h e t o p

By Cecily O’Connor

In 2003, Alan Jagiello was offered a position at Deloitte’s Brussels office to serve t h e n e e d s o f v a r i o u s l a rg e E u r o p e a n manufacturing clients Although on track to make partner back at home, the insights he gained into European markets by accepting the Brussels assignment prov-ed invaluable w h e n i t c a m e t o h i s l a t e r m o v e u p t h e career ladder

“My career has definitely been enhanced, and I was able to progress faster as a result of my international assignment,” he explains. Jagiello is now an audit partner in Deloitte’s Chicago office He credits his overseas experience with broadening his professional network and providing him with opportunities to work on high-level engagements in the United States Working overseas can be o n e o f t h e r i c h e s t e x p e r ie n c e s o f a n a c c o u n t a n t ’s career Relocating is never e a s y, b u t t h e c h a n c e t o b r o a d e n t a x a n d a c c o u n ting experience on a global s c a l e i n p l a c e s s u c h a s I n d i a , M e x i c o , C h i n a a n d Europe is hard to pass up. In fact, all but three of 400 D e l o i t t e p r o f e s s i o n a l s s u rv e y e d i n 2 0 0 8 s a i d t h e i r overseas experience was so beneficial that they’d consider doing it again

While it’s not a guarantee o f a d v a n c e m e n t , “ I t c a n and often does position you ahead of your peers,” says M a r i l i n M a rz a n , n a t i o n a l human resources manager for Grant Thornton’s global mobility program, Chicago.

The impending adoption

o f I n t e r n a t i o n a l F i n a n c i a l Reporting Standards (IFRS)

and ongoing globalization will drive demand for accounting and finance professionals with international business acumen, according to a 2008 Robert Half International survey About 71 percent of CFOs said overseas experience will be necessary for accounting and finance professionals five years from now an increase from 56 percent in 2002

I n a d d i t i o n t o t h e c o n v e rg e n c e o f U S

G A A P a n d I F R S , t h e d e m a n d f o r i n t e r n ational experience is being driven by factors s u c h a s c l i e n t r e q u e s t s f o r m u l t i n a t i o n a l buy in, the need to maintain foreign relat i o n s w i t h s u p p l i e r s , a n d t h e d e s i r e t o strengthen a corporate brand worldwide.

“As a firm, we have gone as far as to position mobility as one of our 10 global priori t i e s , ” e x p l a i n s Wa r r e n S m i t h , d i r e c t o r o f HR for Ernst & Young’s Midwest area, based in Chicago

O p p o r t u n i t i e s f o r i n t e r n a t i o n a l a s s i g nment vary widely depending on the firm, and the current slowing of the global economy is taking its toll. Grant Thornton, for e x a m p l e , h a s s e e n a 1 0 - p e rc e n t d r o p i n outbound long- and short-term assignments from last year, Marzan explains The number of inbound assignments has decreased by about 40 percent She expects to see a bit more slowdown before the number of placements turns around

Nevertheless, executives do expect numbers to grow in the not-too-distant future Ray Lombardi, US managing partner of Deloitte’s Office of Global Deployment in Chicago, foresees the number of deployed Deloitte professionals increasing steadily over the next four years, with the number of US inbound and outbound assignments reaching 1,900 by 2012, up from 1,100 today For all member firms in the Deloitte network, that number was around 1,500 last year, and is likely to grow to 3,000 by 2012

G i v e n c u r r e n t s h i f t s i n t h e a c c o u n t i n g p r o f e s s i o n , n o w i s t h e t i m e f o r y o u n g e r

professionals to plan for overseas development, says Louise Hraur DeSina, a director i n t h e c o m m u n i c a t i o n s d i v i s i o n o f t h e A m e r i c a n I n s t i t u t e o f C e r t i f i e d P u b l i c A c c o u n t a n t s ( A I C PA ) “ T h a t p l a n w i l l b e your roadmap to get you where you want to be in the world,” she says

She offers some tips: Ask “What do I want to achieve?” “Where would I like to live?” a n d “ Wo u l d I p r e f e r a l o n g - o r s h o r t - t e r m assignment?” If you have a family, how will they feel about relocating? If you’re not currently employed, target job opportunities that o f f e r m u l t i n a t i o n a l o p p o r t u n i t i e s a n d s t a r t networking. Also get up to speed on international accounting issues And pay attention to global trends Specialty areas like forensics and corporate compliance are becoming hotter and hotter in the march towards increased financial transparency The green movement is also noteworthy as more accountants deal w i t h e n v i r o n m e n t a l r e p o r t i n g r e q u i r e m e n t s on a global platform

As you look ahead, however, be prepared f o r f i e rc e c o m p e t i t i o n a m o n g s t a s s i g n m e n t c a n d i d a t e s , s a y s S m i t h E r n s t & Yo u n g , f o r one, will likely become even more discriminating in selecting global deployment candidates “to ensure we have the right roles and the right people on assignment ”

G e n e r a l l y s p e a k i n g , w h a t a r e f i r m s l i k e Ernst & Young looking for? Strong leadership a n d o rg a n i z a t i o n a l s k i l l s , t e c h n i c a l k n o w ledge and a demonstrated interest in working w i t h o t h e r c u l t u r e s . P r o f e s s i o n a l s w h o a r e bilingual and are familiar with another count r y ’s t a x , c o m p l i a n c e , l e g a l a n d r e g u l a t o r y issues also are extremely attractive as overseas assignment recruits

Long-term assignments typically last a year or more, while short-term stints can range anywhere from a couple of weeks to a couple of months It all depends on client needs and the scope of work involved Firms such as Ernst & Young also offer volunteer programs abroad, through which professionals can assist an entrepreneur in an emerging country

Most important in your hunt for internat i o n a l o p p o r t u n i t i e s i s c o m m u n i c a t i o n o f your desires to the people at the top Talk to p a r t n e r s a b o u t t h e i r o v e r s e a s e x p e r i e n c e s , t e l l t h e m a b o u t y o u r i n t e r n a t i o n a l a s p i r ations, offer to work on international projects while you’re still stateside, and learn all you c a n a b o u t t h e t e c h n i c a l i t i e s o f t h e g l o b a l financial landscape

Twitterblogiverse

Can you social network your way to business success?

By Allison Enright

Twitter Hits the C-Suite

Twitter is being used by almost a third of senior executives for business purposes, according to a new worldwide NFI Research survey A fourth of senior executives, specifically, say they tweet, while two-thirds of senior executives and managers combined use LinkedIn for business purposes A further 26 percent use blogs and 22 percent use Facebook What ’ s more, the survey reveals that more small companies versus large companies use social networking

Visit www nfiresearch com for more

Bu s i n e s s u s e d t o b e d o n e w i t h a h a n d s h a k e S o m e t i m e s , i t s t i l l i s But for a growing number of potent i a l c u s t o m e r s , t h e m a j o r i t y o f r e s e a rc h , r e f e r r a l s a n d r e c o m m e n d a t i o n s a r e b e i n g done by virtual rather than physical word, via social networks like LinkedIn, Facebook and MySpace.

LinkedIn, a social network for business p r o f e s s i o n a l s , a t t r a c t s n e a r l y 6 9 m i l l i o n monthly unique visitors, according to web analytics firm Compete Inc Facebook, one o f t h e l a rg e s t g e n e r a l - i n t e r e s t s o c i a l w e b communities in the world, has more than 200 million active users (as of April 2009) More than half of that number log on to the network every day, sharing more than a billion pieces of content each week, according t o F a c e b o o k r e s e a rc h f i n d i n g s . B l o g s , i n w h i c h r e a d e r s c a n r e s p o n d t o c o n t e n t p o s t e d b y b l o g a u t h o r s , n u m b e r e d m o r e t h a n 11 2 m i l l i o n i n 2 0 0 8 , s t a t e s w e b r e s e a rc h f i r m Technorati And 33 percent of US Internet users say they read them

T h e u n b r i d l e d g r o w t h o f t h e s e c o m m u n i c a t i o n o u tl e t s h a s c o m p e l l e d a s e a c h a n g e i n t h e w a y b u s inesses communicate. From s o l e p r a c t i t i o n e r s t o l a rg e c o r p o r a t i o n s , p a r t i c i p a t i n g on the social web scene has become a near essential

“People need to wake up t o t h i s w h o l e t h i n g , ” s a y s N a t h a n E g a n , f o u n d e r a n d managing director of social w e b c o n s u l t a n t s , t h e F r e esource Agency. “Get involved and take it seriously.”

For those who are tempted to shrug off the idea of social media as something just for teens and twenty-

somethings, consider this: The fastest-growing user group on Facebook is women over 55, which grew almost 550 percent in just six months. The 25 and under crowd grew by less than 20 percent LinkedIn users have an average of eight years’ work experience, and 23 percent of MySpace’s 65.1 million active members in the United States are aged 35 years and older You do the math

Egan says the benefits of active participation in social media sites like LinkedIn can be huge Imagine, for instance, that you’re a sole practitioner connected to your clients via a virtual network. If you were to ask a satisfied client to write a recommendation f o r y o u , t h a t r e c o m m e n d a t i o n w o u l d b e broadcast to not only your connections, but those of your client as well That’s invaluable free marketing

“If a CPA has 30 recommendations and they are all from clients, who is going to get the look or the nod? It’s going to be the person with the most recommendations,”

Egan explains

Business professionals also can participate in LinkedIn Q&A forums, where they a n s w e r q u e s t i o n s p o s e d b y t h e L i n k e d I n community. Whenever you answer a question, that answer appears on your profile page. The more questions you answer, the greater your credibility, says Egan.

What’s more, members can join LinkedIn special interest groups, which help to further expand your network and build your reputation Since LinkedIn is tied to the algorithms Google uses to return search results in general web searches, boosting a profile on the network can increase a CPA’s visibility to non-LinkedIn participants as well

I n d i v i d u a l s e l f - p r o m o t i o n i s o n e t h i n g ; however, putting yourself “out there” as an organization can be intimidating.

“It’s already tough for corporate execut i v e s t o w r a p t h e i r m i n d s a r o u n d s o c i a l m e d i a , ” s a y s Va l o r i e L u t h e r, f o u n d e r a n d CEO of Creative Concepts Consultants, a

PR and social media consultancy “They are very leery of complete transparency, and are afraid of losing control What I say to every business afraid of this is, ‘You can only gain control once you lose control ’”

Also consider the fact that, in an ultra-competitive market for t a l e n t , h a v i n g a p r e s e n c e o n s o c i a l n e t w o r k i n g s i t e s t h a t a r e favored by young professionals may give your organization the edge it needs in the fierce recruiting game KPMG and Deloitte, for example, both use Facebook and MySpace as recruiting tools for internships and entry-level positions, in addition to promoting their on-campus events.

Other companies have used social web technologies to enhance their brand and business Wells Fargo & Company, for instance, is considered a pioneer in bringing the social web to financial services, says Luther The bank launched its first blog in 2006 and now supports five It further developed an online virtual world game called Stagecoach Island [blog.wellsfargo.com/StagecoachIsland], which targets teens with a message about fiscal responsibility. It also communicates via MySpace, Facebook and Twitter

“In every channel you can find your next consumer, an individual who is interested in hearing your brand’s message,” says Luther

As far as blogs go, though, Wells Fargo may be the exception rather than the rule. In fact, less than 15 percent of Fortune 500 companies maintain a corporate blog, according to PR firm Burson-Marsteller ’s blogging index survey

Nevertheless, blogs represent an easy entrée into the world of social media, and are a great way to build your personal brand and raise your profile to potential employers “Recruiters are using blogs to help to understand their potential employees. If there is a blog out there written by a candidate, they read it,” Egan explains. “It can really help to make a distinction between you and the guy next to you who doesn’t have a blog That level of transparency makes it easier to make a judgment call if they are going to hire ”

Some companies are going so far as to establish unique web s p a c e s a p a r t f r o m t h e i r m a i n p o r t a l s t o h e l p t o p r o m o t e t h e i r brand. In February 2009, for example, Boston-based insurer Libe r t y M u t u a l l a u n c h e d t h e R e s p o n s i b i l i t y P r o j e c t [ R e s p o n s i b i l it y P r o j e c t c o m ] , w h i c h c o m b i n e s b l o g s , v i d e o s a n d f o r u m s d e s i g n e d t o s t i m u l a t e c o n v e r s a t i o n s a b o u t p e r s o n a l f i n a n c i a l responsibility The site is a hybrid of consumer-generated content and content sourced by Liberty Mutual.

“Consumers today want to engage in conversation with companies and other consumers, not be spoken at through corporate press releases and glossy ads,” says Luther “Social media works because it is all about relationships ”

Zecco, a low-cost stock brokerage, launched ZeccoShare, a social community for investors, late in 2007, making it a key part of their customer acquisition and marketing plan. It now boasts more than 230,000 members that use the community think-tank to develop and manage their portfolios ZeccoShare allows investors to show off their profiles and trade wins Members also can join specific groups to participate in discussions on topics like socially responsible investing or diversity in investing

No matter how deeply you decide to wade into social networking waters, be aware that the systems only work if you are actively engaged in them “People say, ‘I joined LinkedIn but it didn’t do anything for me,’” says Egan “Well, it’s not going to do anything for you unless you make it work for you ”

Heavy Lifting

Build a strong supply chain to wrestle a weak economy

By Selena Chavis

In a global economy that is uncertain at best and plunging into a deeper chasm at worst, the concept of a strong and costeffective supply chain should be at the heart of every company’s agenda At least, that’s what a recent DSC Logistics survey says “We’ve seen that trend evolving for many y e a r s C o m p a n i e s b y a n d l a rg e c e r t a i n l y realize now that there is a lot of money and s a v i n g a t s t a k e i n t h e s u p p l y c h a i n . T h e r e c e n t c h a l l e n g e s h a v e b e e n f o c u s e d a r o u n d t h e d r a s t i c c h a n g e s t h a t h a v e o c c u r r e d i n a s h o r t p e r i o d o f t i m e , ” s a y s DSC Logistics VP of Customer Care Scott Morgan, adding that every year, the financ i a l p r o f e s s i o n a l ’s r o l e b e c o m e s m o r e prominent in this process

We are in the midst of an era marked by extreme changes in fuel and material costs, lower consumer spending, tightening capital, growing pessimism and fluctuating exchange rates. The challenges of building a strong supply chain are piling up, says Dave Pittman, US lead for PricewaterhouseCoopers’ Operations practice. “There is an absolute change in cost culture since the first of the year, and it increases daily It’s really en vogue to reduce costs,” he says.

T h e d y n a m i c n a t u r e o f t h e e c o n o m y, where fuel prices may reach more than $4 a g a l l o n o n e s u m m e r a n d d r o p t o n e a r l y half that the next, make flexibility and the

ability to adapt quickly critical components of effective supply chain strategies today.

“ C h a n g e s h a v e b e e n a b r u p t , f o rc i n g companies to be more adaptable,” Morgan explains “Companies need to avoid getting locked into long-term contracts and leases M a n y c o m p a n i e s a r e p u t t i n g o u t t r a n sportation RFPs to go back and rebid contracts based on lower fuel costs, for example It’s the right thing to do You can find deals you didn’t dream about a year ago If fuel costs are high, you want to be close to the customer When fuel costs are low, you can afford to be further from the customer. Being in a position to continually re-evaluate that is important.”

Pittman agrees, pointing to price drops in commodities such as steel, copper and cement in recent months. “There are a lot of companies going back to vendors to reduce costs,” he explains. “And there are mounting concerns over fluctuating exchange rates and the volatility of prices overseas as well People are looking at alternative suppliers that are closer to home ”

It’s not just about lowering costs, though; it’s also about keeping suppliers in play

“When I talk to financial people, one of the concerns they have is supplier viability,” says Pittman The current “here today, gone tomorrow” culture of startups and even mainstay businesses has many companies fearing that they’ll be caught off-guard if their main supplier closes its doors “How do they keep their fingers on the pulse of the supplier?” asks Pittman

It’s vital that companies use all the disparate pieces of information available to them to understand how economic conditions are affecting suppliers. “Look at all the different people touching suppliers in your company How do you accumulate that information? Also important to this process is an understanding of who the company’s critical vendors are. A lot of companies haven’t gone through that exercise ”

While flexibility to make changes and renegotiate contracts is one means of strategic improvement, savvy companies are

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“We’re seeing more attention being paid to shortening supply chains from overseas markets to more domestic locations,” says Pittman “For example, many continue to produce in Asian markets, but with more emphasis on Asian customers ”

“I have seen a lot of customers looking at rail as a viable option. People are considering rail from a greener or more sustainable point of view as well,” Morgan adds

What’s more, supply chain efficiencies often are achieved by consolidating vendors or using a transportation partner Pittman sees companies trying to use a greater number of common components in multiple products or models to consolidate vendor activity. Others eliminate the extra miles associated with moving products back and forth to and from a co-packer by handling value-added services where products are warehoused. Movement within the warehouse is also being scrutinized, since an enormous amount of time can be wasted by moving, storing and replenishing products

“There are two things driving this movement,” Morgan explains “First, it costs more to send something to a co-packer. Second, the lead time for these types of requests is shrinking dramatically ”

Transportation partners may contribute to that lean, mean supply chain strategy, since they can “see where freight is moving between a number of different companies and come to the table with creative and collaborative solutions for working together ”

Looking further down the supply chain, ineffective inventory control can wreak havoc on profit margins, says Pittman One

way to combat this is to simplify operations by reducing the number of SKUs or product offerings “Fewer SKUs can lead to lower c o s t s a n d i m p r o v e d c u s t o m e r s e r v i c e , a n d l e s s s l o w - m o v i n g inventory,” he says

Ever a balancing act, Morgan notes that it comes down to having the “right product in the right place at the right time” and pairing that effort against excess inventory “Customers are trying hard t o f o c u s o n o b s o l e t e i n v e n t o r y, t r y i n g n o t t o h o l d o n t o i t a n y longer than necessary That’s always a challenge,” he acknowledges, adding that too much material means that valuable space is needed to hold unnecessary stock.

On the other hand, a scarcity of items may lead to lost orders W h a t d o y o u d o t h e n ? P u t p r e s s u r e o n s u p p l i e r s t o b e m o r e responsive when needs arise, says Pittman. When the demand is there, you need to be able to get stock quickly

“Less demand lowers the amount of safety stock,” he says “Free cash flow and lower inventories have become a focal point for highly leveraged companies. Lowering inventories while maintaining customer service often requires improved demand planning, more focus on sourcing, and increased communications with vendors. Consequently, many companies are currently looking more closely at their demand planning and sourcing capabilities ”

W h i l e c o m p l e x i t i e s m a y b e h i g h a n d c h a l l e n g e s m a y b e mounting, Morgan encourages companies to take advantage of the opportunity to purge With a nod to the business concept that “ g o o d c o m p a n i e s g e t b e t t e r i n b a d t i m e s , ” h e c o n c l u d e s t h a t , “This is a great time to take a step back and revisit processes. Make sure you are eliminating the waste ”

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Accounting Women

Why hasn’t anything significantly changed for women in public accounting leadership roles?

Provided by the ICPAS Women’s Executive Committee

For seven years now, the Illinois CPA Society (ICPAS), through its Women’s Executive Committee, has explored the role of women CPAs in Illinois public accounting firms. And perhaps frustratingly, i t s r e c e n t l y r e l e a s e d s e v e n t h s u r v e y f i n d s that little has changed over the years

The survey was distributed to 90 Illinois firms with 15 or more professionals Its goal is to track the percentage of women at three levels of leadership partner/principal; senior manager/manager; and senior/staff as well as the percentage of women holding firm-wide leadership positions The survey also gauges the effectiveness of initiatives

a n d p r o g r a m s s p e c i f i c a l l y t a rg e t e d t o women, with findings based on responses from both individual women CPAs (all are ICPAS members) and their respective firms Assessing the success of these initiatives and programs prov i d e s a n e v a l u a t i o n o f b e s t p r a c t i c e s f o r r e t a i n i n g a n d promoting women CPAs.

The Numbers

While the percentage of women entering public accounting firms has decreased from 54 percent in 2003 to 49 percent in 2009, the number of women being retained at the senior manager/manager and partner/principal levels has slowly climbed from 40 percent to 43 percent and 15 percent to 18 percent, respectively, over this same time period (See Figure 1 opposite for 2009-2006 data ) Admittedly, this is a slow climb, but a climb nonetheless

T h a t s a i d , a l t h o u g h t h e number of men and women

i n t h e m o s t s e n i o r p o s i t i o n s b o t h increased in this year ’s survey, the number of men continues to far outweigh that

of women in the partner/principal positions. (See Figure 2 opposite.)

Leadership Positions

There is a bright spot, however The percentage of women in managing partner and executive management positions is a strong indicator of the growing acceptance of women CPAs in leadership roles among today’s firms In this year ’s survey, women represented 12 percent of firm/office managing partner positions, an increase of 2 percent from the previous year, which had been the high point of a steady 1-percent annual increase since the first survey was conducted in 2002.

The number of women in the most senior firm-wide leadership positions (namely, firm or office managing partners and execu t i v e m a n a g e m e n t ) r o s e t o 1 9 p e rc e n t , compared to 18 percent last year and a 10 to 13 percent range during the prior 5 years. For the second year in a row, this leadership percentage is actually higher than the percentage of Illinois women currently in partner/principal roles The increase over last year is due in large part to the rising number of women in the firm/office managing partner category (See Figure 3 opposite )

Although changes in management structure may cause some data inconsistencies from year to year, the increase in women h o l d i n g e x e c u t i v e m a n a g e m e n t r o l e s i s a step in the right direction.

Women’s Initiatives

Firms were asked to indicate which of nine workplace initiatives are currently in place at their firms, and to rate their effectiveness. Separately, women ICPAS members at the same firms were asked to respond to identical questions and to identify which programs they would like to see implemented at their firms

Eighty-two women and 52 of the 90 surveyed firms responded to these questions

Both groups rated the following four initiatives as the most effective in retaining and promoting women:

Of these four programs, flexible work arrangements and mentoring programs continue to be the most in demand among women working at firms that currently do not offer these initiatives The discrepancy between the firms’ ratings of flexible work arrangements and the women CPAs’ ratings of the same initiative is particularly interesting, since it reveals a significant gap in perception between the two groups

The following initiatives were in place at only 26-38 percent of the firms that took part in the survey: childcare assistance, womenspecific mentoring programs, and programs to develop women as partners on high-profile client assignments Forty-three percent of the firms taking part in the survey had “part-time partner track” in place; this initiative continues to be the most sought-after among the women surveyed

The retention and promotion of women within public accounting firms continues to have a huge impact on the industry, and it’s disappointing to see so little movement after seven years of surv e y s . T h e Wo m e n ’s E x e c u t i v e C o m m i t t e e w i l l f o c u s i t s f u t u r e efforts on identifying and spotlighting firms that are making real progress in retaining and promoting their women professionals Perhaps their success can be a roadmap for other firms in Illinois

Turn the page for more stati sti cs from the 2009 Rol e of W omen i n CPA Fi rms survey

W e si ncerel y thank the fi rms and women that responded to our survey and wi l l i ngl y shared thei r i nformati on wi th us Thi s cooperati on i s appreci ated and necessary as we stri ve to advance the rol e of women i n publ i c accounti ng fi rms

Illinois CPA Society's 2009 Survey on the Role of Women in CPA Firms - Professional Personnel Who Office In Illinois - Percentage of Women by Position

*All information was provided by the firms. Surveys were sent to 90 Illinois firms that had 15 or more professionals as listed in the Illinois CPA Society's Peer Review or Membership Database and the 2008 Crain's Chicago Business list of Chicago's largest accounting firms. Surveys were mailed in January 2009 and firms were asked to provide the most recent available data, but to not use data earlier than December 31, 2008.

***Firm did not provide information for this year. NA = Information Not Applicable

(a) First included in survey population in 2009. (b)First included in survey population in 2008.

(c)First included in survey population in 2006.

The following firms declined to participate in the survey for all years: FGMK LLC; Gimbal Abrams & Singer; Scheffel & Co.; Sleeper Disbrow Morrison Tarro & Lively.

The following firms declined to participate in the survey for 2009, 2008, 2007, 2006 and 2005: Chunowitz, Teitelbaum & Baerson, Ltd.; Morrison & Morrison, Ltd.; Pasquesi Sheppard LLC

The following firms declined to participate in the survey for 2009, 2008, 2007 and 2006: Brook Weiner LLC; Medical Business Consultants - Midwest, Ltd., CPAs; Professional Business Consultants.

The following firms declined to participate in the survey for 2009, 2008 and 2007: Friedman & Huey Associates, LLP; L. J. Soldinger Associates; UHY LLP

The following firms declined to participate in the survey for 2009 and 2008: Ahlbeck & Company; Mulcahy Pauritsch Salvador & Co, Ltd.; Wermer Rogers Doran & Ruzon, LLC.

The following firms declined to participate in the survey for 2009: BIK & Co.; Kutchins, Robbins & Diamond Ltd.; Michael James Liccar & Co.; Mowery &

Illinois CPA Society's 2009 Survey on the Role of Women in CPA Firms - Percentage of Firm-wide Leadership Positions Held by Women

*All information was provided by the firms. Surveys were sent to 90 Illinois firms that had 15 or more professionals as listed in the Illinois CPA Society's Peer Review or Membership Database and the 2008 Crain's Chicago Business list of Chicago's largest accounting firms. Surveys were mailed in January 2009 and firms were asked to provide the most recent available data, but to not use data earlier than December 31, 2008.

***Firm did not provide information for this year. NP = Information Not Provided

(a) First included in survey population in 2009. (b)First included in survey population in 2008.

(c)First included in survey population in 2006.

The following firms declined to participate in the survey for all years: FGMK LLC; Gimbal Abrams & Singer; Scheffel & Co.; Sleeper Disbrow Morrison Tarro & Lively.

The following firms declined to participate in the survey for 2009, 2008, 2007, 2006 and 2005: Chunowitz, Teitelbaum & Baerson, Ltd.; Morrison & Morrison, Ltd.; Pasquesi Sheppard LLC

The following firms declined to participate in the survey for 2009, 2008, 2007 and 2006: Brook Weiner LLC; Medical Business Consultants - Midwest, Ltd., CPAs; Professional Business Consultants.

The following firms declined to participate in the survey for 2009, 2008 and 2007: Friedman & Huey Associates, LLP; L. J. Soldinger Associates; UHY LLP

The following firms declined to participate in the survey for 2009 and 2008: Ahlbeck & Company; Mulcahy Pauritsch Salvador & Co, Ltd.; Wermer Rogers Doran & Ruzon, LLC.

The following firms declined to participate in the survey for 2009: BIK & Co.; Kutchins, Robbins & Diamond Ltd.; Michael James Liccar & Co.; Mowery & Shoenfeld LLC; Smith, Koelling, Dystra & Ohm, P.C.

Goodbye Training Program?

Don’t bid adieu to your staff development dollars quite yet Find budget-friendly training alternatives instead

By Renee Beckman, CPA

In a n e c o n o m i c d o w n t u r n , c o m p a n i e s move into survival mode. Priorities are shifted. Cost cuts are implemented. Pers o n n e l i s l e t g o A n d t h o s e t h a t a r e l e f t b e h i n d a r e f o rc e d t o m a n a g e w i t h f e w e r resources, perks and rewards Growth becomes a priority for the future, just as long as the company can survive the present

A s l e w o f s u r v e y s o v e r t h e p a s t y e a r highlight the fact that training programs, in particular, are among the first incentives to w a l k t h e c o s t - c u t t i n g p l a n k . “ W h y ? B ecause training is expensive and difficult to measure,” says Colleen Coursey, a Chicago corporate trainer

Eighteen percent of CFOs interviewed for a n A c c o u n t e m p s s u r v e y s a i d t h e y d o n ’t e x p e c t t o o f f e r e m p l o y e e t r a i n i n g i n t h e next two years Among companies that do have training programs planned, 30 percent will invest in IT skills development and another 26 percent fores e e o f f e r i n g c o u r s e s i n a c c o u n t i n g and finance Average training expenditures per employee has fallen 11 percent in the past year, from $1,202 p e r l e a r n e r i n 2 0 0 7 t o $ 1 , 0 7 5 i n 2008, according to a Bersin & Associates report issued in January. And t h e U S c o r p o r a t e t r a i n i n g m a r k e t shrank from $58 5 billion in 2007 to $ 5 6 2 b i l l i o n i n 2 0 0 8 , t h e g r e a t e s t d e c l i n e i n m o r e t h a n 1 0 y e a r s , Bersin & Associates states.

While employers may be tempted to eliminate training budgets during lean times, investing in staff education is a vital tool for retention and business growth. “Human capital is an organization’s single most important resource Ensuring they perform well shouldn’t even be a question,” says Coursey.

As the economy gets stronger, corporations need to stay ahead of their

competitors and position themselves for higher productivity and profitability While doing more with less may work in the short term, in the long term organizations will suffer. Companies will start to feel the financial effects of the layoffs lower productivity, reduced performance, unnecessary overtime, low morale and increased turnover (including the loss of intellectual capital and company knowledge) The cost of employee turnover to for-profit organizations, in fact, is estimated to be up to 150 percent of the employees' remuneration package.

Rather than cutting training loose entirely, wouldn’t it make more sense to find an alternative, less costly way to invest in your people? After all, if you found training valuable during the fat years, doesn’t it stand to reason that it’s important in lean times as well? Isn’t it all about maintaining a competitive edge? Isn’t that the key to survival?

As they watch their budgets shrink, business and finance professionals are indeed l o o k i n g f o r l o w - c o s t t r a i n i n g o p t i o n s t h a t can still get the job done without an expensive price tag The following four strategies offer companies the chance to do just that

1. eLearning

The advantages of eLearning are many. For s t a r t e r s , i t ’s e a s y t o d e l i v e r a n d a v a i l a b l e 24/7, fitting into pretty much any schedule B e c a u s e t h e r e a r e n o t r a v e l e x p e n s e s involved or trainer salaries to pay, the costs are comparatively low as well According t o T r a i n i n g M a g a z i n e , c o r p o r a t i o n s s a v e between 50 and 70 percent of costs when replacing instructor-led training with electronic content delivery

Opting for eLearning also means that courses can be pared into shorter sessions and spread out over several days or weeks so that companies don’t lose access to their human capital for entire days at a time

2. Mentoring

A dynamic relationship between a mentor and a protégé can be valuable not only for the participants involved, but also for the company Think increased production, greater job satisfaction, higher employee retention and lower costs again due to the fact that companies are not paying for an instructor or reimbursing for travel

That said, the actual cost of a mentoring program does vary, particularly in terms of the time invested by both mentors and their protégés Although this cost is not as obvious as an outright purchase, it can be substantial In terms of maintenance, however, mentoring programs are usually extremely cost-effective just as long as you structure them effectively from launch

If budget is an issue, take a look at one of the several books and articles written on this topic. Also visit the web, where you’ll find sites, newsletters and discussion groups devoted to mentoring

3. Professional Associations

One of the many benefits of joining a professional association is the continuing professional education (CPE) it offers, often at discounted prices Particularly for professionals such as CPAs, who are required to meet minimum CPE requirements to hold a license, company or individual membership in an association can be a costeffective way to ensure fingers are kept firmly on the industry pulse.

There are other benefits too. Because associations are either regional or have local chapters, travel costs are kept to a minimum And because CPE is targeted in terms of profession or industry, classes offer indispensable networking opportunities as well another potential source of business growth for companies.

I t ’s a g o o d i d e a , t o o , t o h a v e y o u r s t a f f s h a r e w h a t t h e y ’ v e learned with their colleagues once back at the office Knowledge sharing is yet another way to maximize limited training dollars

4. Internal Talent

Your staff consists of individuals with expertise in specific areas of business As such, these individuals may be interested in lending their expertise in a more formal setting as in-house instructors

F o r i n s t a n c e , i f y o u h a v e a n I T s p e c i a l i s t o n s t a f f , a n d y o u want to develop your finance department’s IT knowledge, then why not ask that specialist to devise and lead a training session. An added advantage is that these training sessions can be highly customized, rather than following a “one-size-fits-all” format

Considering how important skills development is to overall job satisfaction, and how rewarding it is to be recognized as an expert in your field, utilizing internal talent in this way is pretty much a win-win and it comes at no direct cost to the company.

W h e t h e r a w e b i n a r, a b r o w n - b a g l u n c h , o r a n y t h i n g i n between, these sessions build a strong tradition of learning, and create a culture that will motivate current employees and attract future talent.

Staff members understand the reasons behind cost cuts. The recession, after all, impacts us all They need to see, however, that t h e i r c o m p a n y i s m a k i n g a n e f f o r t t o m a x i m i z e i t s l i m i t e d resources for their benefit If they do, then their loyalty may be that much more easily won.

ICPAS member Renee Beckman, CPA, i s a pri nci pal at Pareto, Inc , a fi nance, accounti ng and IT permanent and temporary staffi ng fi rm. She can be reached at 312 214 6144 or rbeckman@paretoi nc com

Set the Standard

How do you define success in an uncertain economy?

By Dean K . Matt, CPA

H“ow am I doing?” In the 1980s N e w Yo r k ’s M a y o r K o c h c o u l d b e h e a r d a s k i n g t h i s q u e s t i o n a l l o v e r t h e f i v e b o r o u g h s a s h e g r e e t e d h i s c o n s t i t u e n c y H i s c o n n e c t i o n with New Yorkers was his transparency and accountability a far cry from his predecess o r s a n d , m o r e r e c e n t l y, t h e s c a n d a lplagued government leaders in Illinois.

“How are we doing?” is also a question asked today at businesses all over America. It’s asked by shareholders and owners wondering if they are getting an adequate rate of return, managers inquiring if the budget bar is appropriately set, employees wondering if their company is financially viable, c r e d i t o r s w o n d e r i n g i f t h e i r l o a n s w i l l b e repaid, and companies wondering if their customers and clients are indeed loyal

Our current economic woes have their r o o t s i n t h e h i g h f l y i n g 1 9 9 0 s C o n s u m ption of just about everything was highly f a s h i o n a b l e . S a v i n g s r a t e s b e c a m e n e g ative. Then credit became easy (remember the volume of credit card offers you’d get in

t h e m a i l ? ) C r e d i t c a r d s w e r e m a x e d - o u t Home values rose at a frenzied pace and this allowed for new credit products Exotic mortgages and home equity lines of credit, in fact, enabled homes to be used as ATMs

Consumption outpaced any conceivable l o g i c E v e r- r i s i n g h o m e v a l u e s f u e l e d t h e bubble potential, while everyone defied the logic that this was the very essence of irrational exuberance that Greenspan warned us of. People erroneously assumed that a supercharged economy and housing market were sustainable. Now, with the bubble b u r s t a n d h o u s e f o r e c l o s i n g s d e r i g e u r, m a n y A m e r i c a n s a r e s e e i n g h o m e v a l u e s t h a t n o l o n g e r s u p p o r t t h e h o m e e q u i t y loans on which they rely It will be a long, slow process before meaningful consumption resumes

I n m o r e s t a b l e t i m e s , b u d g e t s w e r e s e t and success was measured based on yearover-year growth of the top or bottom line Rates of growth were compared to the company’s historical track records and those of its peers In other words, in a company with h i s t o r i c 1 5 - p e rc e n t g r o w t h , a b u d g e t t h a t s h o w e d 2 0 - p e rc e n t g r o w t h w o u l d b e viewed as a stretch goal, but not unrealistic. The annual budget process should also r e f l e c t t h e i m p a c t o f g e n e r a l e c o n o m i c t r e n d s , a c q u i s i t i o n s , c a p i t a l i n v e s t m e n t s , new products and even new personnel

But how do companies set the bar when t h e y ’ r e b e i n g c o n f r o n t e d w i t h u n p r e c edented economic negativity? We’re in the m i d s t o f a n e c o n o m i c t s u n a m i w h i c h , arguably, is second in impact only to the Great Depression And it’s not over yet

Should companies take their best shot at a full-year budget and re-budget after the f i r s t h a l f ? A f t e r a l l , t h e r e a r e b o n u s e s , careers, cash flow, strategic plans, and debt covenants on the line, all depending more than ever on ownership and managers to correctly read the tea leaves and deliver a realistic budget

There’s a balancing act going on in boardrooms and companies across the country Is it a sign of weakness to allow the economy to dictate negative or even neutral growth or is it just prudent in light of the facts? What about small companies that are used to 30or 40-percent growth? How should success be defined during a tidal wave of negative economic conditions?

Are all bets off? Is it even meaningful to bonus on performance n o t k n o w i n g w h a t ’s r e a l i s t i c ? W h e r e s h o u l d t h e b a r b e s e t f o r 2009? Unless you have a crystal ball, is it just a crap-shoot or can g o a l s b e m e t h o d i c a l l y d e d u c e d ? Wi l l e m p l o y e e s w i n a t t h e owner ’s expense or vice-versa?

T h e g o a l - s e t t i n g p r o c e s s s h o u l d c o n t i n u e w i t h t h e s a m e methodology as in past years. All available data must continue to be tapped and evaluated. However, unlike budgeting in previous years, the margin of error in budget assumptions, naturally, will be larger. Companies and employees must be conscious of this in sett i n g b o n u s - b a s e d c o m p e n s a t i o n a n d i n d i s c u s s i n g p r o j e c t i o n s with their lenders. Despite best efforts in setting these goals, some budgets will end up being lay-ups for managers, and some will prove to be unattainable, meaning no bonuses at all.

E n t r e p r e n e u r s a n d c o m p a n i e s m u s t a c k n o w l e d g e t o t h e i r employees that the recent negative economic headwinds will pose new and additional challenges in developing and then attaining t h e i r b u s i n e s s g o a l s C o m p a n i e s s h o u l d n ’t c o n f u s e t h i s t a c i t acknowledgement with a softened attitude towards where the bar is set The very act of acknowledging tough economic conditions will at least signal to employees that senior management doesn’t h a v e i t s h e a d i n t h e s a n d S i m p l y p u t , n o t a c k n o w l e d g i n g t h e tough economic environment is a mistake

Also, now more than ever, owners and senior-level executives need to get input into the budget/goal-setting process at all levels of the organization It’s important that the mid-manager tier, in particular, is not unilaterally shut out from the process And don’t assume that your company is immune to this unprecedented economic environment Very few companies are entirely unaffected

Unfortunately, there isn’t a “one-size-fits-all” formula for companies deciding where to set their goals You have to look at your industry’s and company’s particular opportunities and challenges, as well as your previous track record And you need to assess the most likely impact of new strategies designed to counteract current economic trends

On one hand, companies are in the advantageous position of having a captive employee base. It’s an employer ’s market, and people are realizing they are lucky to have jobs. That said, owners shouldn’t confuse an advantageous labor market with license to take advantage of their employees. They may be able to get away with it in the short run, but history tells us that employees have long memories and that times will get better.

It’s understandable that owners and executives will demand more of their people simply to keep the company going. To achieve past historical growth rates, however, will require an even more Herculean effort. Employee loyalty is essential. Wherever goals are set, it’s crucial to communicate, communicate, communicate, how the goals will be reached The troops need to be rallied

One more thing now isn’t the time to complain about paying out the same level of bonuses for essentially flat results Remember that managers will be working as hard if not harder just to get back to neutral Their efforts need to be acknowledged

www.CCFLinfo.org

September 8, 2009 - Chicago, Illinois

Executive Roundtable Series: The Transformation of Finance from Watchdog to Strategic Business Partner

Mike Muldoon

President, Muldoon Consulting, Inc. and Professor, Lake Forest Graduate School of Management

September 25, 2009 - Rosemont, Illinois Midwest Financial Reporting Symposium

Smal l Biz, Big Impact

Tax act provisions could mean significant changes for the nation’s small businesses

By Harvey Coustan, CPA

Anumber of provisions in the 2009 American Recovery and Reinvestment Tax Act could impact small business tax planning in a number of ways Among these provisions is an extension of t h e y e a r s a v a i l a b l e f o r c a r r y i n g b a c k n e t o p e r a t i n g l o s s e s a n d d e f e r r a l o f i n c o m e r e c o g n i t i o n f o r c a n c e l l e d d e b t ( C O D income). Both deserve some explanation, p a r t i c u l a r l y i n l i g h t o f t h e c u r r e n t e c onomic downturn

Carryback Relief

Until the Act was passed, a net operating loss generally could be carried back only to the second year that preceded the year in which the loss was incurred After the taxes for that year were recouped, any remaining loss could be carried to the year immediately prior to the year in which the loss was incurred. Unused loses after that application could be used to offset income in the 20 years subsequent to the loss year

The Act allows an “eligible small business” to elect to carry its 2008 net operating loss back 3, 4, or 5 years For fiscal year

s m a l l b u s i n e s s e s , t h e 2 0 0 8 l o s s w i l l b e either a year ending or beginning in 2008 An eligible small business is a corporation, partnership, or proprietorship whose average annual gross receipts for the three-year period ending with the year of loss are $15 million or less

The owner of an eligible business entity (partnership or S corporation) can make the election with respect to his or her share of the allocated amounts. In determining avera g e a n n u a l g r o s s r e c e i p t s , e l i g i b l e b u s in e s s e s w i l l b e a g g r e g a t e d i f c e r t a i n c o mmon controls are present In March, the IRS p u b l i s h e d R e v e n u e P r o c e d u r e 2 0 0 9 - 1 9 w i t h g u i d a n c e f o r m a k i n g t h e e l e c t i o n i n certain situations

For those taxpayers who have not filed a return for the loss year, a statement of the election must be included with the return, which itself must be filed in a timely mann e r ( i n c l u d i n g e x t e n s i o n s ) T h e s t a t e m e n t must clearly state that the taxpayer is electing to apply Internal Revenue Code section 172(b)(1)(H), the carryback period chosen (3, 4, or 5 years) and, if applicable, must state that the election is made for the year beginning in 2008

T h e m e t h o d f o r m a k i n g t h e e l e c t i o n i s different if the taxpayer has already filed a return for the 2008 loss year In this situation, a refund claim or tentative carryback a p p l i c a t i o n f o r t h e e a r l i e s t y e a r t o w h i c h t h e l o s s i s c a r r i e d m u s t b e f i l e d w i t h i n 6 m o n t h s o f t h e r e t u r n ’s u n - e x t e n d e d d u e date July 15, 2009, therefore, would be the last day for a corporation filing such a form if the loss year ended October 31, 2008

The form must contain a statement with the typed or printed heading “2008 NOL Carryback Election Pursuant to Rev Proc 2009-19.” If a refund claim or tentative carryback application has already been filed w i t h o u t t h e e x t e n d e d c a r r y b a c k e l e c t i o n , t h e s t a t e m e n t m u s t b e h e a d e d w i t h t h e word “Amended ” The form should contain a statement that the taxpayer is electing to

apply the rules contained in §172(b)(1)(H) to a year beginning in 2008 if that is the case

A l t h o u g h n o r u l e s a r e p r o v i d e d f o r t h e l o s s e s a p a r t n e r s h i p incurs, the process of filing individual refund claims and tentative c a r r y b a c k a p p l i c a t i o n s a l s o s h o u l d b e a p p l i e d a t t h e p a r t n e r level How to determine due dates isn’t indicated in cases where a partner has a different yearend or due date than the partnership.

COD Income

In another taxpayer friendly gesture, the Act contains a provision that allows taxpayers to defer recognition of certain COD income r e a l i z e d o n t h e “ r e a c q u i s i t i o n ” o f a n “ a p p l i c a b l e d e b t i n s t r ument ” The income can be deferred for 4 or 5 years and then reported over a 5-year period, so that an electing taxpayer can report the COD income that results from an acquisition of its debt in 2009 ratably over years 2014-18

An applicable debt instrument is one that is issued by a C corporation or any other “person” (i e an individual, trust, estate, or partnership) in connection with the conduct of a business “Debt instrument” refers to a bond, debenture, note, certificate, or contractual arrangement that constitutes indebtedness under the original issue discount rules A reacquisition occurs when an issuing debtor or other obligor or person related to the debtor makes a debt instrument acquisition

T h i s a c q u i s i t i o n c a n t a k e t h e f o r m o f a c a s h p u rc h a s e , exchange of another debt instrument (which can include modifications to a single debt instrument), exchange of debt for stock or a partnership interest, and the contribution of the debt instrument to capital. The holder ’s complete forgiveness of the debt will also constitute an acquisition

As of the day I am writing this column, the IRS has not issued any guidance in this area, but the law indicates that the election is irrevocable and is made with the taxpayer ’s return for the year of the reacquisition. It asks for a clear identification of the debt instrument and the amount of income covered by the election, along with any other information required by the IRS

For partnership debt, the partnership makes the election. This can put the general partner or managing member of an entity treated as a partnership in a difficult position, since different partners may have different tax needs. Some may want the deferral, others may not.

As a matter of fact, certain exclusions with respect to COD income cannot apply if the debtor elects the deferral treatment The exclusions provided in Title 11 or insolvency situations do n o t a p p l y, a n d e x c l u s i o n s p r o v i d e d i f t h e d i s c h a rg e d d e b t i s “qualified farm indebtedness” or “qualified real property business indebtedness” are also unavailable.

C e r t a i n e v e n t s w i l l t r i g g e r i m m e d i a t e r e c o g n i t i o n o f t h e d e f e r r e d a m o u n t s t h e t a x p a y e r ’s d e a t h , a s s e t l i q u i d a t i o n o r s a l e , o r t h e b u s i n e s s ’ c e s s a t i o n , f o r e x a m p l e . T h e s a l e , o r exchange or redemption of an owner ’s interest in a passthrough w i l l a l s o r e s u l t i n a t r i g g e r i n g o f t h e d e f e r r a l h o p e f u l l y o n l y that portion of the deferral that has been allocated to the owner, although this isn’t clear

The rules apply to discharges in years ending after 2008 IRS guidance is needed.

Harvey Coustan i s an Ernst & Y oung reti red partner. He i s presentl y consul ti ng on substanti ve techni cal and professi onal standards i ssues and has been an ex pert wi tness i n a number of cases

investors desperately seeking

Businesses are searching high and low for scarce investment dollars.

Finding money during a recession is a bit like walking into an empty field with a pair of binoculars and hoping to spot a pot of gold And even if you haven’t seen that telltale sparkle in the midst of all that dirt, the truth is, there’s still money out there if you look hard enough and long enough, and if you’re prepared to be creative.

says Van Conway, president and senior managing director of turnaround consulting firm

Conway MacKenzie Inc

Impress a Venture Capitalist

Risk-loving venture capitalists are more cautious today than they were just a few years ago. “The steady drum beat of bad news has made some VCs think twice,” says Bill Venema, a corporate lawyer with Epstein Becker Green Wickliff & Hall “Consequently, they are taking moves to protect themselves when they enter what is a riskier environment and, in some respects, uncharted water as the economy resembles little that is familiar. They are putting in provisions that if certain milestones are not met as planned, then they will be eligible to take a larger percentage of the company,” Venema adds as an example

B u t n o t e v e r y o n e i s r u n n i n g f o r c o v e r. G o o g l e r e c e n t l y announced the creation of a venture capital arm, Google Ventures, which is expected to invest up to $100 million over the n e x t y e a r G o o g l e i s r e p o r t e d l y t a rg e t i n g a r e a s s u c h a s t h e Internet, clean technology and life sciences.

homework, and discover what venture capitalists find of interest these days,” he says

Remember that you only get one chance to make a good impression. “If you screw up, the meeting is over. Have your ducks in a row, clearly state the value proposition, don’t overstate revenue projections or you’ll lose credibility,” says Venema In fact, it’s best to be conservative Then anything over your stated projections makes you look absolutely fabulous.

It’s a good idea, too, to have a strong advisory board or board of directors in your corner And “It’s always best to meet prospective venture capitalists through an introduction, say your accountant, lawyer, friend, or through business conferences,” says Sokolow.

“VCs on both coasts are active as always, but they are more s t r i n g e n t t h a n b e f o r e I f y o u h a v e p r o p r i e t a r y s o f t w a r e o r patents, you’ll get their attention If you have a business model that’s little more than a new way to do French fries, you might not get very far,” he warns.

Venema isn’t as optimistic about the potential to capture VC interest, however “VCs are most assuredly not as active as a l w a y s , ” h e s a y s , q u o t i n g a n A p r i l 2 0 0 9 F i e r c e C I O a r t i c l e : “Venture Capital firms are facing tough times these days,” the artic l e e x p l a i n s “ T h e y l o g g e d j u s t 549 deals during the first quarter of 2009 with $3 billion in investm e n t T h a t ’s a l m o s t 5 0 - p e rc e n t less than the $5 7 billion investm e n t a n d 8 6 6 d e a l s i n t h e l a s t quarter of 2008.”

If you do get VC investment, it w o n ’t c o m e c h e a p “ A l o t o f e q u i t y f u n d s c a n g e t a s e n i o r position at 50 cents on the dollar, effectively owning the company. VCs are about return on capital, s o t h e y a r e e x p e n s i v e c a p i t a l , ” says Conway

Tap Heavenly Sources

How do you impress a VC? For starters, “They’ll want to see t h a t y o u h a v e s o m e m o n e y i n t h e b a n k , a r e v e n u e s t r e a m , c u s t o m e r s a n d a s t e l l a r m a n a g e m e n t t e a m , ” s a y s S t e v e L u n d i n , h e a d o f C h i c a g o ’s B i g F r o n t i e r C o m m u n i c a t i o n s Group “Venture capitalists are very attuned to who’s in the spotlight,” he adds

Lundin’s recent survey of US-based technology startup and early stage companies found that companies engaging in public relations campaigns were 30 percent more successful in attaining funding within one to three months than companies without a campaign Beyond your public persona, though, one of the keys to attracting VCs right now is to have a scrupulously crafted business plan that pays attention to what’s happening in the marketplace, explains Lenny Sokolow, president and v i c e c h a i r m a n o f N a t i o n a l H o l d i n g s C o r p o r a t i o n , a n i n d ependent broker-dealer.

“Some popular VC sectors include clean technology, life scie n c e s , c e r t a i n c o n s u m e r p r o d u c t s , a n d o n l i n e s e r v i c e s t h a t create exchanges As in all things, it’s important to do your

While they still have their wings, today’s angel investors are flying with a little less cash in their pockets “Even wealthy, accredited investors have seen their net worth dissipate by 30-60 percent, and so we’ve seen a corresponding diminishing in angel investing,” says Sokolow.

Not surprisingly, angels are benchmarking their expectations. “They know they won’t get immediate returns on their money, so they are looking for companies promising greater returns than in the past from those who are considered less risky Angels can seek 30 times their return over five years,” says Lundin.

“The key to targeting angel investors is to understand their i n v e s t m e n t f o c u s Ve n e m a e x p l a i n s : “ T h e P o s t- I n v e s tm e n t Peri od of Busi ness Angel s: Impact and Invol vement (Macht, July 2007) states that, ‘[B]usiness angels tend to invest in businesses within their own locality. This may be because active involvement may only be feasible if the business is within easy reach Unsurprisingly, business angels also tend to invest in business sectors in which they have personal experience One study...revealed that around a third of business angels invest solely in business sectors in which they have had prior work

experience Around two-thirds of business angels, however, have made at least one investment in a business sector with which they were unfamiliar.’”

Whatever their focus, one thing is true of all angels: You’ll need to show them that you have business in the pipeline “If you have a great idea, but no money, you’ll likely have no deal It will be harder to find money,” says Conway

What’s more, in this down economy, your presentation has to be flawless. “If they don’t get it, forget it,” says Lundin. Knock

on Your Banker ’s Door

Despite all the bailouts and stimulus activity, it’s still tough to get money from a bank “A lot depends on which bank you approach, what industry your company is in, and how you plan to use the proceeds,” explains Scott

$10,000,” he explains “It’s a very sophisticated, elegant solution that’s gaining a lot of traction ”

Utilize free resources such as www vfinance com, Sokolow advises. This is a primary online connection point between serious-minded entrepreneurs and the capital industry.

Borrowers are also exploring specialty financing sources s

needs and industry, says George.

Mezzanine financing is also getting a second look. This hybrid of debt and equity financing is typically used to either finance the expansion of existing companies or fund acquisitions It is essentially debt capital which usually provides the lender with the right to convert a portion of its investment into an ownership or equity interest in the company.

and

Moran Corporate Finance in Chicago

George, managing director of Plante

“Banks are still gun shy,” says Lundin “If you do get a loan, it may cost you more in time, effort and interest Loan limits are lower and loan committees are getting more stringent. If you’re a good customer with a bulletproof plan and have collateral, then you can get a loan If you don’t have stellar credit, you’re unlikely to get a loan The banks can’t afford any more s c r e w u p s l i k e t h e h o u s i n g d e f a u l t s B e p r e p a r e d t o j u m p through the hoops to get the money,” he says

“ I h a v e a d e a l t h a t I ’ m w o r k i n g o n w h e r e a 9 - y e a r- o l d , established company wants to purchase land and a building for a medical facility,” says Venema “The bank wants 30-perc e n t d o w n , g u a r a n t e e s f r o m k e y i n v e s t o r s a n d m o r e T h e company had existing credit with the bank and now it’s trying to renegotiate But the bank is asking for a much higher interest rate and still may not give the loan. Credit is the life bread, the air of the economy; the lending situation is distressing,” he says

T h o u g h b a n k s a r e n ’t l e n d i n g m u c h o n t h e c o m m e rc i a l business side, since early 2009 there has been a loosening of leasing credit, says Sokolow. “Interest rates for leasing credit might be high, but there’s some blue sky visible there, and it promises to open up in just a matter of time ”

The government is playing in as well It currently guarantees up to 85 percent of loans in the SBA’s 7a program on a m o u n t s b e l o w $ 1 5 0 , 0 0 0 , a n d u p t o 7 5 p e rc e n t o n l a rg e r loans. The government will temporarily increase the guarantee to 90 percent to entice banks to open the lending gates. The SBA’s 504 program guarantees up to $4 million worth of economic development projects for small businesses And the O b a m a A d m i n i s t r a t i o n w i l l t e m p o r a r i l y e l i m i n a t e f e e s f o r lenders and borrowers participating in the program What’s more, the government will temporarily eliminate upfront fees for 7a loans that banks charge borrowers typically as high as 4 percent for larger loans

Fish in Other Waters

It’s time to venture beyond traditional avenues if you want to u p t h e o d d s o f f i l l i n g y o u r c o f f e r s . “ We ’ r e s t a r t i n g t o s e e smaller, intermediate peer-to-peer lending becoming increasingly popular,” says Sokolow “These channels, such as TheLendingClub com, use something similar to the micro-lending models to allow investors to circumvent the banks and make personal business loans of up to $25,000, with an average of

What’s the attraction with mezzanine financing? It’s treated like equity on a company’s balance sheet and may make it easier to obtain standard bank financing “Borrowers can use this money to bridge the gap between available senior debt and the total funding requirement of the borrower. But mezzanine capital can be expensive, with all interest costs currently in the 17 to 23 percent range,” says George

A l s o c o n s i d e r a p r i v a t e e q u i t y f u n d “ W h i l e m o s t P E investors primarily seek to make control investments, many are becoming much more open to purchasing minority stakes in businesses, while allowing current management to retain control of the company,” George explains F

m i g h t b e a good choice In this scenario, a group of people or institutions provide equity or debt capital to a company Private placements are privately offered and are restricted to qualified individuals, usually defined as someone with a net worth of at least $1 million

What’s the key benefit? The securities being sold do not have to be registered (which is very expensive) Confidentiality, however, has been reduced by recent changes in Regulation D, says Venema, which now require Form Ds to be filed electronically, making them readily accessible to the public

“There are federal and state rules that have to be followed closely, and potential investors would have to have significant cash to spare. But there are entities that have cash on hand like pension funds,” he says.

Be Realistic

Grasp the realities of the current economic climate Don’t look back at prices and terms that you could have gotten a couple of years ago That’s history Expect to get less than you planned Don’t wait until you are desperate to seek money

“ A n t i c i p a t e y o u r f i n a n c i n g n e e d s a s

, since the more time you have to explore your alternatives, the better your options will be,” says George L

promises, and be wary of upfront payments Be diligent, be patient, be persistent.”

If realistically there is no chance for you to raise money today, “The best thing to do is wait until the lenders crawl out of their caves,” says Conway “You don’t want to go down the path of seeking capital where you have zero percent chance o f

capital conscience

By Derrick Lilly

It’s easy to overlook what’s happening in the nonprofit sector when corporate losses and layoffs are dominating the headlines. But they too are facing significant headwinds due to current economic conditions. What’s most troubling is how severely Illinois’ economy and society could be affected if its nonprofits are unable to withstand the recession.

I l l i n o i s N o np ro f i t s i n Pe r s p e c t i ve

In 2007, registered Illinois nonprofits employed 427,653 people or 7 3 percent of the entire state’s workforce as reported by the Illinois Department of Employment Security That’s more than Walgreens and Boeing combined

Over the years the growth of nonprofits in Illinois has trended up with the state’s population Recent data from the National Cent e r f o r C h a r i t a b l e S t a t i s t i c s a n d t h e I n t e r n a l R e v e n u e S e r v i c e reveals that 66,459 nonprofit organizations were registered in the state in 2008, most likely meaning that current nonprofit employment is much larger than it was in 2007.

What’s more staggering is the amount of money nonprofits circ u l a t e t h r o u g h o u r e c o n o m y. L o o k i n g b a c k t o 2 0 0 6 ( t h e m o s t recent statistics available), Illinois nonprofits brought in roughly $55 5 billion in revenues, then redistributed more than $55 2 billion of it back into the economy through wages, procurements and other operating expenditures

R e s e a rc h g a t h e r e d f o r t h e D o n o r s F o r u m I l l i n o i s N o n pr o f i t Economy Report, 2008, estimates that nonprofits pay their workers more than $16 5 billion annually The same report reveals that n o n p r o f i t s c r e a t e 9 p e rc e n t o f I l l i n o i s ’ s t a t e p r o d u c t , w h i c h i s about the same as the finance and insurance industries together

You may have questioned how significant the nonprofit presence is in Illinois, but there is no doubt that it is critical to the state’s social and economic wellbeing In fact, every county in the state has a nonprofit presence.

But conditions have changed drastically over the last couple of years. Today, our vast nonprofit sector is under significant strain due to the withering economy.

Nonprofits are feeling the pinch.

T h e Re c e s s i o n ’ s I mp a c t

“It’s very likely that some nonprofits will not be able to continue operations,” says Claudette G Baker, VP of library and nonprofit services at Donors Forum in Chicago, a nonprofit membership association that promotes philanthropy and a strong nonprofit sector throughout Illinois.

“ I t ’s e s t i m a t e d t h a t 1 0 p e rc e n t o f n o t - f o r- p r o f i t s m a y h a v e t o close or merge with another group, and many more will be cutting back,” says Daniel Borochoff, president and founder of the nationally acclaimed charity watchdog, the American Institute of Philanthropy “We’ve already had major groups close down that have been around for many decades.”

Like many for-profits, nonprofits are shuttering their doors or tightening their purse strings in this challenging economy but not by choice Demand for nonprofit services is increasing, while their operating revenues and assets are declining “Many people that gave last year are now asking for services from these nonprofits,” says Borochoff

Sadly, widespread declines in corporate, foundation and individual giving are leaving many stressed organizations questioning

Want to Vol unte er ? The Illinois CPA Society (ICPAS) connects its members and staff with the community through a variety of volunteer-based service programs, including:

Mi l i tar y Ser vi ce Tax Pre parati on Pr oj e ct ( MSTPP) The MSTPP is a free, volunteer-based, year-round program created as an effort to ease one of the many burdens of overseas deployment and combat duty Developed in partnership with the Internal Revenue Service ( I R S ) a n d t h e i r Vo l u n t e e r I n c o m e Ta x A s s i s t a n c e p r o g r a m , t h e M S T P P p r

“Between 2005 and 2007, 2.7 million volunteers dedicated 302 9 million hours of service. Estimated economic contribution: $5 9 billion annually ”

[Source: www volunteeringinamerica gov]

Think Before You Give

1. K n o w t h e O r g a n i z a t i o n Never give to an organization you know nothing about

2. K n o w W h e r e Yo u r M o n e y G o e s Ask how much of your donation is designated for general administration and fundraising expenses and how much supports actual programs

3. D o n ’ t C a v e U n d e r P r e s s u r e . No legitimate organization will pressure you to give immediately

4 R e c o r d Yo u r D o n a t i o n Obtain a receipt or printed copy of your donation for tax purposes

5 K n o w Yo u r D e d u c t i o n If the charity doesn’t have a tax exempt letter indicating its status with the IRS, you can’t legitimately claim your contribution as a tax deduction

6. D o n ’ t B e M i s l e d b y a N a m e Some organizations use names that closely resemble respected organizations Check out the organization thoroughly before making a contribution

7. D o n ’ t F a l l f o r a S o b S t o r y Pulling on emotional strings is a favorite of some organizations

8. A s k i f t h e O r g a n i z a t i o n i s R e g i s t e r e d w i t h F e d e r a l , S t a t e a n d L o c a l A u t h o r i t i e s Registration does not, however, mean government endorsement.

9. B e w a r e o f G i f t s Don’t feel that you have to make a contribution to keep “gifts” included in direct mail solicitations It is against the law for a charity to demand payment for any unordered merchandise

Source: www charitywatch org

“A lot of times these families don’t know the tax code and some of the benefits they are entitled to with active duty and the earned income credit Hopefully we are able to bring that to light for them and maximize their deductions for the year, ” says Matt Barton, a former sergeant in the US Marine Corps, who is now a CPA with Frederick A. Weinberg & Company in Vernon Hills, Ill.

This year alone more than 70 volunteer CPAs have been matched with military personnel and families Volunteers are provided with IRS military tax resources to aid in the process, and the only volunteer requirement is the CPA certification

m

m b e r s o f t h e U S A r m e d F o r c e s w h o h a v e recently returned from or are still deployed in a combat zone or qualified hazardous duty area with personal income tax filing assistance

With the program in its sixth year, the ICPAS works diligently to connect volunteer CPAs with qualifying military personnel and their families to help them meet IRS guidelines and take full advantage of the combat zone tax benefits, exclusions and exceptions available to them

CPA Board Conn ecti on Is recruiting board members a challenge for nonprofits? “Yes, yes, yes!” proclaims Kathy Matthews, executive director of the Elgin Youth Symphony Orchestra. “There are a lot of nonprofits now that need good board members and there are never enough to go around ”

T h e w e b - b a s e d C PA B o a r d C o n n e c t i o n i s a v o l u n t e e r i n i t i a t i v e established by the ICPAS in conjunction with its community service arm, CPAs for the Public Interest (CPAsPI) It is designed to build

, ‘How do we fulfill our missions in this tough economy with limited resources?’ Those resources are human as well as financial,” says Baker.

According to a recent Donors Forum survey, 45 percent of its n o n p r o f i t a n d g r a n t - m a k e r r e s p o n d e n t s s a i d t h e y a r e o p e r a t i n g without reserves or that their reserves have declined Between rising costs and funding cuts, their ability to meet the demand for services continues to decline, and future outlooks are bleak. The overall consensus amongst nonprofits and grant-makers is that the sector has not yet witnessed the full impact of the recession

“It’s a real challenge,” says Baker And adding to the struggles of many organizations are government cuts or delays in payments and funding. “The not-for-profits that do have government projects are dependent on the state paying their bills in a timely manner If they don’t get paid while they’re providing much needed services to individuals, that shortfall will have to be made up someplace else ”

Making up that shortfall will be even more challenging now that the 2008 Bank of Ameri ca Study of Hi gh Net W orth Phi l anthropy r e v e a l s t h a t e v e n t h e a f f l u e n t a r e r e i n i n g i n c h a r i t a b l e g i v i n g Donations from these individuals declined an average of 9 7 percent in 2007 from 2005 Considering that the affluent often balance their charitable giving and volunteerism against their financial portfolios, all estimates suggest that giving in 2008 may have decreased even more than it did in 2007, and may continue to decline while economic and market woes persist

What’s worrisome is the fact that high net worth households ( h o u s e h o l d s w i t h i n c o m e s g r e a t e r t h a n $ 2 0 0 , 0 0 0 a n d / o r n e t w o r t h s o f a t l e a s t $ 1 m i l l i o n e x c l u d i n g t h e v a l u e o f t h e i r r e s idences) are accountable for 65 to 70 percent of all individual giving and 49 to 53 percent of giving from all sources, including corporations, foundations, and living and deceased individuals

“ G i v i n g i s c l o s e l y t i e d t o G D P a n d p e r s o n a l d i s c r e t i o n a r y i n c o m e , s o i t w i l l f o l l o w t h e e c o n o m y, ” B o r o c h o f f e x p l a i n s “Loyal, long-term, wealthier donors, or anyone in a position to give more, are being asked to do more, but they have their limits Once that avenue has been exhausted it’s going to be tough.”

What this means is that nonprofits will continue to face mounting challenges as they try to provide quality services on tighter

bridges between the accounting community and Illinois’ many nonprofits Whether it’s due to size or budgeting, many nonprofits don’t have the luxury of staffing a CPA or finance professional

The beauty of the CPA Board Connection is that nonprofits of all types use it, and previous nonprofit board experience isn’t always a requirement Whether you are interested in supporting the arts or combating life-threatening illnesses, there is an opportunity out there for you amongst the CPA Board Connection’s current 150-plus listings What’s more, the ICPAS offers workshops for potential board members and professionals who want to get a grasp on the legal and financial responsibilities nonprofits shoulder

“If a nonprofit wants to be sustainable it has to have a board of directors Eventually the founders are going to leave, and there needs to be a strong infrastructure to keep that nonprofit going That’s done through the board; they are the people that are going to sustain an organization,” says Matthews

Mak i n g th e Gr ade In February and March of this year, the ICPAS partnered with Ladder Up, a Chicago-based organization that pro-

budgets Ultimately, their inability to operate will hurt our society and economy as a whole: Unemployment will rise; state product w i l l d e c l i n e ; p u rc h a s i n g p o w e r w i l l e v a p o r a t e ; h o m e l e s s n e s s , hunger and substance abuse will spread; and the masses will be without essential services.

W hy G et I nvo l ve d ?

The true fallout of mass shutdowns or layoffs at Illinois’ nonprofits will be far-reaching, but statistics and finances aside, the services nonprofits provide to our society are invaluable “Not-for-profits exist to solve or meet urgent community needs, because government and for-profits can’t do it all. Not-for-profits help define a healthy community and the vitality of a community,” says Baker.

From cancer research and suicide prevention, to promoting the arts and wildlife conservation, there is a nonprofit in Illinois for nearly every cause imaginable “The field is so diverse Everybody, no matter what their views or opinions, can find groups that will match their values and convictions,” says Borochoff.

Donors Forum estimates that more than 700 million hours of volunteer work is completed by Illinois nonprofits annually, but as Baker notes, increased demand for services means nonprofit needs are stretching further than ever before “There are a number of ways for people to get involved in addition to their money. A volunteer ’s time is valuable,” she says.

As a professional, try volunteering your time, providing pro bono professional services or serving as a board member Between new filing requirements, Form 990 amendments and the many financial issues surrounding nonprofits, Borochoff explains that, “There is a very strong need for financial professionals to participate in not-forprofit organizations A lot of groups would be quite interested if a CPA was willing to participate in their organization ”

society Through charitable giving and volunteerism you can better yourself and your society on a daily basis. So make a difference in your community; get involved professionally and socially, and while you’re at it, encourage your family and peers to become active philanthropists as well

Additional resources and the Donors Forum reports referenced in this article can be downloaded at www donorsforum org

vides tax and financial aid assistance to low-income families The goal of the partnership is to connect volunteers from the ICPAS’ Young Professionals Group with Chicago Public School students and their parents in need of assistance to complete the Free Application for Federal Student Aid (FAFSA) form

The FAFSA form is imperative to low-income college-bound students because it determines their eligibility for federal, state and college-sponsored financial aid, including grants, loans and work-study programs Correctly filing the form can offer a life preserver for many, b

Because of the form’s complexity, volunteers with a grasp of financial terminology and tax forms is invaluable

Seeing success in the pilot program, the ICPAS’ CPAsPI arm plans to continue participation and to open the program to all who are interested in volunteering at the various Chicago Public Schools

For more information about ICPAS volunteer opportunities contact Jill Wiles, community service manager, at wilesj@icpas org, or visit the “volunteer” tab at www icpas org

Investments Recession-Proof

By Carolyn Tang

We ’ ve seen the collapse of glor ified investment houses, gover nment takeover s of bereft corporations and a steep downtur n in the markets that some say is even har sher than that of the Great D e p re s s i o n G i ve n t h e s e c o n d i t i o n s , t h e q u e s t i o n o f where to put your investment dollar s is a heady one. Should the money be invested, or should it be stashed deep under a mattress to r ide out the stor m?

Jeff Nabers is the founder of the IRA Association of America and CEO of Nabers Group, which specializes in self-directed retirement accounts. Perhaps surprising to some, he suggests that, in a depressed economy, investors turn to investment strategies such as real estate, commodities and even private companies. “Alternative investments are a way for individuals to distance themselves from the lies and greed of Wall Street in the interest of their own financial security,” he contends Dan Deighan, founder and principal of Deighan Financial Advisors, agrees “It’s important right now to focus on hard assets like real estate and energy as opposed to paper assets,” he says “The volatility that everyone is experiencing these days, and the significant drops in their paper assets such as stocks and bonds and so on, is due to the fact that they are liquid. They sell every nano-second.”

Real Estate

Real estate is a prime example of a tangible good. “It has intrinsic value, which means it has worth in and of itself,” Nabers explains. “Unlike a piece of paper, which represents something of value, real property actually i s something of value ”

The real estate market may be an area of particular opportunity right now, due to the fact that existing home sales continue to be soft and prices remain depressed According to the National Association of Realtors® (NAR), in February 2009, existing home sales in the United States were 4 6 percent down year-over-year Commercial real estate follows a similar trend as losses in the job market continue to reduce demand for office space The NAR’s Commercial Leading I n d i c a t o r f o r B r o k e r a g e A c t i v i t y, w h i c h t r a c k s m a r k e t b e h a v i o r i n major commercial real estate sectors, fell 6 percent to an index of 109 2 in the fourth quarter, from a downwardly revised reading of 116.1 in the third quarter. The slowing index means commercial real estate activity, as measured by net absorption and the completion of new commercial buildings, is likely to weaken further over the next six to nine months.

What’s more, “The supply-and-demand curve favors investmentgrade real estate because, right now, construction projects are all on hold or have been shut down It’s going to take awhile for that supply to recycle after we get back on top of the economy,” Nabers explains

However, he cautions that many people invest in real estate for the wrong reasons Many will purchase property expecting it to appreciate, eventually being sold for a gain “This was temporarily rewarding during the real estate bubble, but the timeless concept of investing is based primarily on cash flow on buying assets for income,” he says “Investors can rent out a property for 10 years and make 310 percent returns But they can’t count on appreciation We’re all seeing what happened to those fix and flippers who are hurting now ”

Gold and Other Commodities

It has long been said that when economic uncertainty hits, invest in g o l d L i k e r e a l e s t a t e , g o l d i s a t a n g i b l e a s s e t U n l i k e r e a l e s t a t e , gold’s value has thousands of years of human history behind it

Investors generally turn to gold as a hedge against wavering markets and unpredictable politics. “Gold is like insurance,” states Peter Miralles, president of Atlanta Wealth Consultants. “Throughout the 1990s and this decade, the Federal Reserve has practiced a low interest rate policy, and gold is basically a type of insurance against the unintended consequences of government intervention, and if a currency crisis occurs with the dollar ”

Elizabeth Versace, a California-based commodities trading advisor, agrees that there is profit to be had due to the rise and fall of commodity prices “With stocks, unless you short sell, you can only profit from up moves Short selling is out of favor in the stock market, but perfectly legal and ethical in the commodity markets Commodities are the last bastion of supply and demand,” she says

According to experts, gold may reach a record high this year, as d e m a n d f o r t h e m e t a l a s a h e d g e a g a i n s t i n f l a t i o n o u t p a c e s a n

expanding scrap supply and weakened usage in jewelry An April 2009 report issued by GFMS, a precious metals research and consulting firm, states that the price of gold could easily reattain its $1,000 mark, and perhaps push past the $1,100 barrier.

The demand driving this pricing is clearly visible. In 2008, official coin minting hit a two-decade high due to increased demand in North America and Europe, while bar hoarding increased by 62 percent, driven mainly by demand in East Asia and the Middle East

Miralles contends that there is also investment potential in comm o d i t i e s o t h e r t h a n g o l d . H e s a y s t h a t t h e w e a k e c o n o m y h a s depressed prices for alternative commodities, resulting in some attractive valuations “Commodities will benefit from the rebound in the economy Companies may have defective balance sheets, but commodities do not, and are fundamentally sound,” he says

Versace agrees, pointing to copper as today’s most promising upward-trending commodity “Recent news suggests that China is stockpiling copper because the price is cheap relative to the highs of last year. China uses a lot of copper in manufacturing and infrastructure, and the country is spending a lot on a stimulus package that will most likely create the need for copper,” she explains “There is still copper in the ground, but getting it out is becoming more expensive and harder to do This means that creating new copper supplies will likely be expensive, and there will be less new copper going forward.” This decrease in supply has the potential to drive copper prices up in the short term.

Versace does warn, however, that researching the right commodities to trade in is difficult, mainly because the information available for free or to the general public is often either wrong or out-of-date “Since it is possible to lose a great deal of money trading commodities, you should research the best expert from which to take advice,” she says.

Technology

Although the sector has been out of favor for several years now, it still holds strong fundamentals, says Miralles. “Technology valuations are at some of their lowest points in the last 15 years Corporations will always invest in new technologies to become more efficient It’s not a question of if, just when,” he explains

Bill Hayes, director of asset management for Chicago Investment Group, says that the continuous, evolutionary nature of the sector is one reason why investing in technology is a smart move. “The other day I was watching the movie Uncl e Buck. The amazing thing is that the movie was made in 1989, and there were no cell phones, no ATMs, no Internet,” he says What’s more, he adds, the top 10 jobs in demand for 2010 didn’t even exist in 2004

“This is because of the incredibly fast advances in technology,” Hayes explains “Products we use today will be different in just 18 months. Technology will always advance, change and present new and exciting opportunities.”

The key, he says, is finding the right technologies, companies and opportunities to invest in He recommends that the average investor consider a tech mutual fund, since it often takes a professional advisor to stay on top of developments in the industry

Energy

Ori Pagovich, managing partner of Gotham Financial Services, projects that the second half of the year will see increased consumption of energy-related goods and services “There will always be cyclical, seasonal trends in energy consumption, but speaking much more broadly, traditional energy companies such as oil and gas will continue a general upward trend,” he says

Pagovich also predicts that prices will remain relatively low, but will show modest increases partly due to OPEC’s determination to create a more profitable floor for oil prices “As we begin to come out of this deep recession, I see oil prices rallying more aggressively and trending upwards. Other components of the energy sect o r, a l t e r n a t i v e / g r e e n , n u c l e a r, e t c . , w i l l t r a d e w i t h i n a n a r r o w range for the balance of the year,” he says

art & antiques

The world of fine art and antiques might seem a lot like fluff in comparison to other investment options. But people such as artist Pablo Solomon could convince you that collecting is more than a hobby; it is, in fact, a viable and potentially profitable investment strategy particularly during a recession

y s Solomon “When times are booming, everyone from main street to Wall Street buys art. They buy it on their vacations, they buy it from the local gallery, they buy it at art fairs However, when times are economically tough, art is often sold off. In the top financial circles, great art is always in demand, and even in the worst of times, it is being bought and sold The bargains are there ”

Price, however, isn’t the only lure of this investment Fine art and antiques also serve as hedges against inflation, since their tangible nature holds universal value “From conquering armies to escaping refugees, art remains one of the things that is considered of timeless value,” says Solomon

Gallery owners and directors like Waltford Gonzalez, director of Valerio Antiques in Florida, are seeing “a great resurgence of consumer spending on antiques ” “Clearly,” he says, “consumers are looking for safe investments; they want to invest in something tangible instead of the stock markets that have failed them ”

B

s e d M . S . R a u A n t i q u e s , agrees He says that he’s seen investors turn to art and antiques as a way to diversify their portfolios during volatile economic times.

Rau refers to the annual Antiques Furniture Price Index (AFPI), w h i c h s h o w s t h a t a n t i q u e f u r n i t u r e h a s o u t p e r f o r m e d b o t h t h e stock market and home values for most years since it began tracking figures in 1968. “Fast forward to 2007 when, according to an Art & Anti ques article, the overall art market saw an impressive gain of 20 percent compared to a much more modest 5.5-percent increase of the S&P 500,” says Rau

To further his point, he explains that more than 1,000 new auction records were set globally in 2008 “The art and antiques market is fueled by a host of investors anxious to diversify into less v o l a t i l e a r e n a s , a n d

o m emerging economies such as China, Russia and India,” he says.

Diversify

Hayes emphasizes that while investors might want to focus on tangible assets now, they should not neglect the importance of diversification in their portfolios. “Think of your portfolio like a seesaw. If you have just two investments, one on each side, the movement of one causes greater overall swings. The more diversified assets you have, or the more seats on the seesaw, the greater stability you have when one swings. Having real estate and fine art are both good investments for any portfolio; the key is keeping these investments in the right percentage of your overall invested assets,” he explains.

Surely though, there are signs of a recovering economy “Every w e

s Pagovich “While unemployment is still high and growing, many leading economic indicators are showing positive signs like interest rate spreads, manufacturers’ new orders for consumer goods and materials, and building permits.

“The seeds for greater economic activity are being sown now,” he says

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Take a Bow

Ira Solomon, CPA, PhD receives the AICPA’s 2009 Distinguished Achievement in Accounting Education award

By Judi Kulm

Education: It’s the key to a continuing pipeline of a c c o m p l i s h e d y o u n g a c c o u n t i n g p r o f e s s i o n a l s . And it’s people like Illinois CPA Society member Ira Solomon, CPA, PhD, who help to ensure that the professional pipeline is filled.

I n r e c o g n i t i o n o f h i s e f f o r t s , S o l o m o n , h e a d o f t h e D e p a r t m e n t o f A c c o u n t a n c y a n d R . C . E v a n s E n d o w e d Chair in Business at the University of Illinois at UrbanaChampaign, has been named the recipient of the Americ a n I n s t i t u t e o f C e r t i f i e d P u b l i c A c c o u n t a n t s ’ ( A I C PA )

2009 Distinguished Achievement in Accounting Education award. This annual award, which was presented at the spring meeting of the Institute’s Governing Council, is presented to a full-time college accounting educator in acknowledgement of excellence in teaching, as well as n a t i o n a l p r o m i n e n c e i n t h e a c c o u n t i n g p r o f e s s i o n Solomon represents the third recipient from Illinois in the award’s 24-year history

Specifically, Solomon has made significant contributions to the development of the accountancy program at the Uni-

versity of Illinois and elsewhere through his directorship of Project Discovery, an innovative undergraduate accountancy curriculum that requires students to apply accounting principles to real-world problems through discovery learning, role-playing, case studies and other activities The 16 cases Solomon developed with KPMG and other colleagues have been downloaded more than 300,000 times, and widely used by professors of accountancy nationwide.

An Illinois member of the AICPA Council and a longt i m e m e m b e r o f t h e I l l i n o i s C PA S o c i e t y ( I C PA S ) , Solomon has served as director and a vice chair of the ICPAS Board of Directors, chaired the ICPAS Education Summit Task Force and served on numerous ICPAS comm i t t e e s , i n a d d i t i o n t o b e i n g c a l l e d u p o n a s a m e d i a expert for the Society. He is also a prolific author, with more than 75 published articles and nearly 100 papers p r e s e n t e d a t c o n f e r e n c e s a n d s e m i n a r s a r o u n d t h e w o r l d H e h a s r e c e i v e d n u m e r o u s a w a r d s , i n c l u d i n g a Special Award of Merit from the Society at the New CPA Banquet in May 2009.

The Illinois CPA Society is proud to recognize the following award winners and congratulate them on their accomplishments.

Distinguished Service Awards

Robert E. Cameron, CPA

Cameron, Smith & Company, PC

Peer Review Report Acceptance Committee

Andrew Dumich, CPA

Young Professionals Group

Neil F. Finn, CPA

Deloitte & Touche LLP

Audit & Assurance Services Committee

James L. Fuehrmeyer, CPA

University of Notre Dame

Accounting Principles Committee

John A. Hepp, CPA

Grant Thornton, LLP

Accounting Principles Committee

Jon R. Hoffmeister, CPA

Clifton Gunderson LLP

Audit & Assurance Services Committee

Paul V. Inserra, CPA

McClure, Inserra & Co., Chtd.

Audit & Assurance Services Committee

Lifetime Achievement Awards

Cameron T. Clark, CPA Retired Partner, KPMG LLP

uane D. Suits, CPA Retired Partner, Sikich LLP

Public Service Award

Kenneth J. Hull, CPA Retired, Follett Corporation

Outstanding Leadership in Advancing Diversity Award

Scott D. Steffens, CPA Partner, Deloitte through June 27, Effective August 1, Partner, Grant Thornton

Outstanding Educator Awards

Diana McCabe, CPA Assistant Professor, Black Hawk College

Sandra S. Lang, PhD, CPA, CFE Chair, School of Business, McKendree University

Deborah L. Lindberg, DBA, MBA, CPA

Professor, Department of Accounting, Illinois State University

Alan R. King, CPA

May, Cocagne & King PC

Peer Review Report Acceptance Committee

Jason Parish, CPA

Blackman Kallick LLP

Young Professionals Group

James G. Quaid, CPA

Ostrow Reisin Berk & Abrams Ltd. Not-For-Profit Organizations Committee

Leonard C. Soffer, CPA

University of Chicago

Accounting Principles Committee

Reva B. Steinberg, CPA

BDO Seidman, LLP

Accounting Principles Committee

Jeffrey P. Watson, CPA

Blackman Kallick LLP, Accounting Principles Committee

Kevin V. Wydra, CPA

Crowe Horwath LLP, Audit & Assurance Services Committee

IntelliConnect™

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