Insight Magazine - Summer 2015

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Rise above

the great US talent shortage.

Top accounting and nance talent is in high demand and fairly low supply. As the experts in nancial recruiting and sta ng, Accounting Principals and Parker + Lynch know the Chicagoland area inside and out. We use our intimate understanding of the local job market, salary trends and business climate to connect great talent to great companies across the local area every day.

To learn more, visit us online or call your local o ce.

Todd Shapiro President & CEO Illinois CPA Society

{Follow Todd on Twitter @Todd ICPAS}

{Watch Todd’s CEO Video Series on YouTube}

Let’s Talk About Relationships

don’t worry, i’m not talking about the touchy feely kind. think business, advocacy & leadership.

Connection It’s such a simple word yet it means so many different things to so many different people in so many different situations Merriam-Webster defines it as “the act of connecting two or more things or the state of being connected.” In a professional sense, connection is all about bringing two or more people together in a mutually beneficial manner And for that reason, when we think of connections, we typically think of people meeting up at a networking event and hopefully generating business opportunities through it It’s absolutely true that networking is one if not the primary way for CPAs, whether in public practice or corporate finance, to generate new business. New opportunities come from bankers, lawyers, suppliers, customers, clients, fellow CPAs and a myriad of other sources

Yet connections go far beyond business development Advocating for the profession is critical to delivering our mission of “Enhancing the Value of the CPA Profession.” We build relationships with the AICPA, NASBA, state agencies such as the Illinois Department of Financial and Professional Regulation and the Department of Revenue, and with state and federal office holders Relationships are key to influencing our regulatory and legislative environment and fulfilling our advocacy role. ICPAS members are already forging those relationships via the Legislative Contact Program. Look for more on the topic of advocacy in my upcoming columns.

We also look to connections to help us build a successful team Most of us are constantly looking for staff, both entry level and experienced We use networking to find top talent at universities, through recruiters and in other businesses Connecting is becoming more important than ever as organizations seek to diversify their workforces.

And it goes without saying that connections are key to career development The Society’s Young Professional Leadership Conference is a good example This past June we held our third annual event, with the goal of providing young professionals with opportunities to develop the skills they need to assume leadership roles in the future. In the same vein, SuperConnect (on October 29), in partnership with fellow professional associations such as the Chicago Bar Association, Financial Executives International and the Chicago Finance Exchange, brings together professionals from all areas of the business world to forge relationships vital to business and professional growth. The Society’s committees and conference task forces also allow CPAs to expand their knowledge bases, while influencing the profession’s future And, of course, the Midwest Accounting & Finance Showcase coming up in August brings together almost 2,000 CPAs with opportunities to learn, interact and possibly generate business leads

“Enhancing the Value of the CPA Profession ” I hope you watch the newest video in our CEO Video Series, which focuses on this important theme, and take full advantage of all the profession and your ICPAS has to offer I look forward to connecting with many of you over the upcoming months. After all, connections are what it’s all about.

INSIGHT MAGAZINE

Publisher/President & CEO Todd Shapiro

Editor-in- Chief Judy Giannetto

Art Direction & Layout Judy Giannetto

Production Design Rosa Garcia

Assistant Editor Derrick Lilly

Photography Jay Rubinic, Derrick Lilly, Nancy Cammarata

Circulation Carl Siska

National Sales & Advertising

Michael W Walker

The RW Walker Company P: 213 896 9210

E : mike@rwwcompany com

Editorial Offices: 550 W Jackson Boulevard, Suite 900, Chicago, IL 60661

ICPAS OFFICERS

Chairperson, Edward J Hannon, CPA, JD, LLM Quarles & Brady LLP

Vice Chairperson, Scott D Steffens, CPA Grant Thornton LLP

Secretary, Lisa A Hartkopf, CPA Ernst & Young LLP

Treasurer, Margaret M Hunn, CPA, CFE, CFF Rozovics Group LLP

Immediate Past Chairperson, Daniel F Rahill, CPA, JD, LLM FGMK, LLC

ICPAS BOARD OF DIRECTORS

Brent A. Baccus, CPA, Washington, Pittman & McKeever, LLC

Jared J Bourgeois, CPA/ABV, CFE PricewaterhouseCoopers LLP

Terry A Bishop, CPA, Sikich LLP

Rose Cammarata, CPA, CGMA, CME Group Inc

Jon S Davis, CPA, University of Illinois at Urbana

Rose G Doherty, CPA, Legacy Professionals LLP

Eileen M Felson, CPA, CFF, PricewaterhouseCoopers LLP

Gary S. Hart, CPA, MBA, Gary Hart & Associates, Ltd

Jonathan W Hauser, CPA, KPMG LLP

David V Kalet, CPA, MBA, BP Products NorthAmerica, Inc

Thomas B Murtagh, CPA, JD, BKD, LLP

Elizabeth S Pittelkow, CPA, CITP, CGMA ArrowStream, Inc

Kelly Richmond Pope, Ph D , CPA, DePaul University

Kevin V Wydra, CPA, Crowe Horwath LLP

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 as a result of delays in delivering INSIGHT INSIGHT (ISSN-1053-8542) is published four times a year, in Spring, Summer, Fall, Winter, by the Illinois CPA Society, 550 W Jackson, Suite 900, Chicago, IL 60661, USA, 312 993 0407 or 800 993 0407, fax: 312 993 7713 Copyright © 2015 No part of the contents may be reproduced by any means without the written consent of INSIGHT Permission requests may be sent to: Publications Specialist, at the address above Periodicals postage paid at Chicago, IL and at additional mailing offices POSTMASTER: Send address changes to: INSIGHT, Illinois CPA Society, 550 W Jackson, Suite 900, Chicago, IL 60661, USA

9.17.1 5

Featuring an all-star lineup of

Edward J Hannon CPA, JD, LLM Partner, Quarles & Brady LLP

onBOARD Diversity Rules

A MESSAGE FROM ICPAS 2015-2016 BOARD CHAIR EDWARD J HANNON

Diversity is at the heart of the CPA profession from the diverse career paths it encompasses to the diverse workforce it needs in order to secure success.

It’s not often that I can compare my career to an action movie, but when I think about what being a CPA means to me, I can’t help but hear Liam Neeson growl his Taken catchphrase: “[W]hat I do have is a very particular set of skills.”

What the outside world sometimes forgets is just how far-reaching a CPA’s “particular set of skills” can be. CPAs are found doing stellar work in public accounting, corporate finance, consulting, and more In my case, coupling the CPA with a law degree has given me the opportunity to offer high-level business counsel to a broad range of clients across the nation

My point is that the CPA credential is a very special professional designation it tells the world that you and I are skilled problem-solvers Unfortunately, so many top students overlook the accounting major or choose not to sit for the CPA Exam because they view the CPA as being for the “old guys ”

That’s not the CPA profession I know In fact, when I look at the fellow Illinois CPA Society members with whom I sit on the Board, I’m amazed at the breadth and depth of experience they bring to the table partners from minority-owned accounting firms, female Big Four partners, former leaders of the Society’s Young Leaders Advisory Council, corporate finance professionals, educators, consultants and small CPA firm owners, who capture the entrepreneurial spirit of starting your own business and seeing where it goes. All of these people have come together with a common goal: “Enhancing the Value of the CPA Profession” and overcoming any issues it faces.

This diversity is critical to our growth as a profession. Without it we run the risk of businesses and clients looking to other professionals as their “trusted business advisors ”

At the national law firm of Quarles & Brady, I work with an extremely diverse group of partners, and I have seen firsthand how making an active commitment to creating a diverse work environment helps the firm better serve its clients I have seen firsthand how a diverse team creates new ideas and new approaches to overcome challenges In my view, the CPA profession must make a determined effort to both attract diverse candidates and develop them into integral members of the greater team

I am very proud to be a CPA, and I am honored to serve on the Society’s team As the Board Chair, I’m looking forward to helping keep the momentum going on the various diversity and inclusion initiatives the ICPAS has launched To me, “CPA” is a designation that has meaning wherever your professional path takes you. Whether you make your way into the C-suite, become a partner in a law firm, launch your own consulting firm, or work in a nonprofit, the particular skills you develop as a CPA set you apart. My hope is that next April, when my tenure is over, there are at least a handful of new young professionals who see all the possibilities that being a CPA has to offer.

The September 30, 2015 Reporting Year Deadline is Approaching...

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•One low, flat rate of only $199 for ICPAS members. ($249 for non-members)

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SEEN HEARD

occupied by women. [Gr ant Thornton]

HOW TO

BOUNCE TO THE TOP

Accounting grads listen up! Fifty- six percent of CFOs in a recent Accountemps survey said they would steer entry-level professionals towards careers at small to midsize companies. And 74% recommended pursuing general accounting over a niche specialty The reason, says Accountemps District President Bill Driscoll, is that “ Working at smaller companies gives entry-level hires the opportunity to do a variety of assignments and gain exposure to several departments ”

Here’s how to beat out the competition for top spots:

1. Cast a wide networking net. Tell everyone you know you ’ re on the job hunt, contact recruiters, and get involved in industry and volunteer events

2. Check your digital footprint. Make sure your profiles are up-to-date and professional, and bolster your presence by posting and commenting on blogs, etc

3 Do the research Always look into the business and the industry you ’ re considering before applying

4. Customize your application. Generic won’t do Your resume and cover letter need to precisely fit the post

5 Always say ‘Thank You ’ Send notes to everyone involved in the search and interview process

4 Areas of Corporate Tax to Watch Out For

Bloomberg BNA’s 15th annual Survey of State Tax Departments has some words of warning for corporations: Be wary of states expanding their definition of economic nexus

It used to be that states used physical presence to determine whether an out- of- state business was taxed; now, thanks to a robust digital economy, states increasingly are looking at a business ’ economic presence As the survey points out, states are going even further to adopt new rules aimed at taxing out-of-state companies’ receipts from services and intangibles Four areas in particular need to be watched:

1 Nexus: State tax codes are targeting the sale of digital services, software downloads, web hosting, SaaS transactions, and more

2. Registration: Many states now consider registering a business with the state as sufficient basis for establishing nexus

3 Servers: Forty states say owning an Internet server in- state creates a potential income tax collection requirement, and 36 states indicate that this also would result in sales tax nexus

4

services, intangibles and cloud computing may lead to compliance confusion

of senior business roles in the U.S. are

“Would I rather be feared or loved? Easy. Both. I want people to be afraid of how much they love me. ” Michael Scott, e Office

$1B

TRENDING

53% of american adults favor the legal use of cannabis.

[pew research center]

Support Grows for Legal Marijuana

Public opinion of legalized marijuana has seen a dramatic shift over the last decade The latest national survey by Pew Research Center finds that 53% of American adults favor the legal use of marijuana Pew points out that as recently as 2006, a mere 32% supported marijuana legalization, while nearly twice as many (60%) were opposed to it When asked why they favor legalizing marijuana, supporters mention its medicinal benefits (41%) and the belief that marijuana is no worse than other drugs, alcohol or cigarettes (36%) What ’ s more, 27% of supporters say legalization would lead to improved regulation of marijuana and an increase in tax revenues To date, Alaska, Colorado, Oregon, Washington and Washington, D C have passed measures to fully legalize the personal use of marijuana

CEO Turnover Costs Billions

Companies undergoing forced CEO turnovers rather than planned successions forego $112B in shareholder value annually, according to the 15th annual study of CEOs, Governance, and Success conducted by Strategy& and PwC

Where planned CEO turnover reduces median total shareholder return to -3 5% the year after the turnover takes place, forced CEO turnover (unplanned or the result of an M&A) sees median total shareholder returns drop to -13% in the year leading up to the turnover and -0 6% in the year after In other words, firing a CEO can be enormously costly The report suggests that $60B in shareholder value could be added if the number of forced exits drops to 10% of all turnovers

in federal income tax refunds are being held for taxpayers who have not yet filed for 2011 [IRS]

great news for the next generation of leaders planning to move into the C - suite

The Mary T Washington Wylie Intern Preparation Program, established in collaboration with the Illinois CPA Society and the CPA Endowment Fund of Illinois, is the proud recipient of an ASAE 2015 Power of A Gold Award, which recognizes the extraordinary contributions associations make to society by enriching lives, creating a competitive workforce, preparing for the future, driving innovation and making a better world To learn more about the Mary T Washington Wylie program, visit www icpas org/MaryT htm

A Worry-Free Job For Me Please!

Seventy percent of Millennial and Generation Z students would prefer a stable job without a high level of emotional investment over a job with lots of passion but no job security, reveals Adecco Staffing USA’s most recent Way to Work survey While the survey indicates differences between Millennials and members of Gen Z , the ability to find a job is the top concern for 32% of all respondents, with the only close follower being the cost of education (21%).

The survey found that the greatest aspiration for most students in the next 10 years is to be financially stable (31%), followed by landi n

financial stability among their top three greatest aspirations In terms of recent graduates, career growth (36%) ranked as the most important component of a first job, followed by stability (19%) and work fulfillment (19%)

TECH PULSE

analyst predictions on how many apple smartwatches will sell this year. [cbs news]

Your Go -To Invoice App

Life can get complicated when it comes to keeping track of who owes what and whether you ’ ve sent them an invoice in the first place Invoice2Go promises to put an end to the headache This app, which has been featured in both Forbes and Bloomberg, allows you to quickly create a custom invoice template, and then send and track invoices from your phone, tablet or computer All your data, charts and reports sync across devices so you always know who’s paid and who still owes you. Invoice2Go offers a free trial and additional business management apps ranging from $49 to $149 annually.

PUTTING A PRICE ON IT

If you ’ re wondering whether your IT costs are in line with those of other CPA firms, here are three ways to find out

1) Per workstation Roman Kepczyk, a leading CPA firm IT expert, forecasts a per-person cost of $6,500 to $8,500 per workstation per year However, firms that move applications to the cloud are finding savings by reducing internal IT staff hours and in some cases entire positions

2) Per person A Rosenberg Associates survey shows the perperson metric to be $5,700-$5,800, regardless of firm size

3) Per revenue The most common benchmark considers costs as a percentage of revenue The Rosenberg Associates survey shows IT costs as 3 3% of revenue for firms over $20M and about 3 6% for firms under $20M The problem with this metric, however, is that it ’ s more dependent on a firm’s profitability than on its actual IT needs.

Courtesy: Marc Rosenberg of Rosenberg Associates

Home is Where the Service Center Is

The trend of outsourcing service centers to China and India is changing slowly Advisory and technology consulting firm The Hackett Group ranked locations globally for their ability to provide skilled workers and office space at reasonable costs It found that large companies are being more selective about where they deliver services and are less inclined to move operations, like accounting, human resources, IT support services and other high-end work, overseas

With that in mind, Hackett ranks these metro areas as the top 10 U S locations for establishing a service center:

1 Syracuse, NY

2 Jacksonville, Fla

3. Tampa, Fla.

4 Lansing, Mich

5 Grand Rapids, Mich

6 Atlanta, Ga

7 Allentown, Penn

8. Green Bay, Wis.

9 Richmond, Va

10 Longmont, Colo

Cyber Threats Make the Infamous Top 10

Following several recent high-profile cyberattacks, cyber risk took its place among the top 10 risks listed in Aon Risk Solutions’ Global Risk Management Survey 2015 for the very first time Ranked at #9, this adds emphasis to PwC’s recent report indicating that the number of detected cyberattacks jumped 48% in 2014, and is expected to increase to around 117,000 attacks a day in 2015

CAREERS CONNECTIONS CREDIBILITY

Be Seen Here:

CLOUT-ability WORKSHOP

Following on from the hugely successful ICPAS

C L O U T - a b i l i t y Yo u n g P r o f e s s i o n a l L e a d e r s h i p Conference last June, attended by over 300 people, we’re bringing you a powerful skill-building w o r k s h o p , c o u r t e s y o f t h e i m p r o v c o r p o r a t e training team at Chicago’s own improve it!:

August 5 PRESENTATION SKILLS

From 8-10 a m , this high-energy, laughter-filled workshop will use improv teams and techniques to teach you how to think on your feet and command a room. Visit www.icpas.org/ypclout.htm for more information and to register.

Charlene Rhinehart, CPA

MS CORPORATE AMERICA 2015

Founder, CEO Unlimited

2015 Young Professional Leadership Award Winner

What sets you apart? ”I’ve always been a firm believer in stepping out of your safe zone and moving into your purpose zone. And that’s what pageants are to me They enable me to impact my community in greater ways, network with talented women in different industries, and gain transferable skills that help me advance in my career. When I stumbled upon the Ms Corporate America pageant, my eyes lit up. This isn’t your typical beauty pageant; it’s a business pageant ” What issue most inspires you? ”I’d have to say diversity; it’s become so much more than a buzzword Diversity stands as one of the greatest challenges corporations face I want to help them design and implement diversity initiatives to attract and retain top talent During my year of service as Ms Corporate America, I’ll be traveling to different corporations and universities to help individuals develop their intercultural competencies and be their best in the workplace.” What was your greatest ‘aha’ moment? “When I set foot in financial services I knew I wanted to work in an environment that focused on the double bottom line of profits and impact. When I got an offer to work in the Community Development Banking group in 2014, it was a dream come true My first major project was working on the $100 Million Detroit Initiative, which was the most significant contribution made by a bank to a city ”

Do you have a role model? My friends joke about how I have hundreds of role models in different industries Each is an individual who doesn’t fit the traditional definition of an accountant, and who has created a unique career path based on their personal interests It’s crucial that you identify individuals who are living without limits so that you can be motivated to live your dreams

The improve it! team in action at the CLOUT-ability Conference last June

KEITH STAATS, JD, ILLINOIS CHAMBER TAX INSTITUTE

Tax & the Mobile Workforce

Escaping double taxation is a complicated feat for Illinois’ resident and nonresident workers.

And, of course, there’s little to no consistency across states as to how exactly they intend to impose these taxes on residents and nonresidents Illinois is no exception

In our state, issues relating to the taxation of wages are becoming more complex as workers become more mobile. Section 201 of the Illinois Income Tax Act (IITA) imposes a tax on income received “in or as a resident of Illinois ” What this means is that the tax is imposed on compensation paid to an Illinois resident, regardless of whether he or she is employed inside or outside the state Conversely, the tax is imposed on wages paid to nonresidents who are “paid in this State ” (Please note that this column doesn’t discuss the allocation and apportionment of individuals’ non-wage income. That subject has its own set of complexities )

Under the IITA, Illinois residents who work in another state Indiana, for example end up being taxed by both Illinois and Indiana. Illinois addresses this double taxation by means of IITA Section 601(b)(3), which provides a “foreign” tax credit (foreign means another state, not another country) Simply put, if you’re an Illinois resident who works in another state and that other state taxes your income, Illinois provides a credit against your Illinois tax for the tax you paid in the other state

Section 601(b)(3) further provides that

taxation must be applied instead of the other

Wisconsin that limit a worker ’s wage tax exposure in these states to only the state in which he or she resides.

As is the case with all things tax, the actual results under the foreign tax credit are rarely as simple as they seem; in many cases, Illinois residents still end up being double-taxed by Illinois and other states Here’s why

IITA Section 302 defines when compensation paid to a nonresident for work in Illinois will be allocated to, and taxable by, Illinois, as follows

1 Section 302 provides that compensation is paid in Illinois if an individual’s service is performed entirely in Illinois. For example, an Indiana resident is employed by an Illinois company and works in Illinois

2. Section 302 next provides that compensation is paid in Illinois if the nonresident’s service is performed both within and outside of Illinois, and the service performed outside Illinois is identical to the service performed within Illinois

3 Section 302 provides that compensation is paid in Illinois if some of the employee’s s e r v i c e i s p e r f o r m e d w i t h i n I l l i n o i s a n d either the base of operations or the place from which the service is directed or controlled is within Illinois.

4 Finally, Section 302 states that compensation is paid in Illinois if the individual is resident in Illinois but the base of operations or the place from which the service is directed or controlled is not located in any state in which at least part of the service is performed.

IT’SA SIMPLE FACT OF LIFE THAT MANY OF US LIVE IN ONE STATE AND WORK IN ANOTHER AND ANOTHER, AND ANOTHER UNFORTUNATELY, STATES THAT IMPOSE INCOME TAXES ON INDIVIDUAL INCOMES ALL WANT A PORTION OF OUR HARD-EARNED WAGES.

The majority of nonresidents who only occasionally work in Illinois escape being taxed by Illinois But this isn’t the case for Illinois residents For example, an Illinois resident is required to work in the State of New York for a week New York law provides that the Illinois resident is taxable on his wages from the first day he works in New York The problem is that when the Illinois resident calculates his credit for taxes paid to Illinois, he has to apply the Illinois law And under Illinois law, if a New York resident were to work in Illinois for a week, Illinois wouldn’t seek to impose income tax on the week of wages When Illinois law is applied, the Illinois resident in our example is not entitled to a foreign tax credit even though he was required to pay tax to New York, resulting in an unfortunate double taxation.

Representative Natalie Manley, a CPA and member of the Illinois CPA Society, introduced HB 675 during the Spring Session of the Illinois General Assembly to address this exact situation Rep Manley’s proposed legislation would change the manner in which nonresidents are taxed by Illinois, and how the foreign tax credit would be calculated. Under the legislation, nonresidents of Illinois would be taxed on their wages for each workday spent in Illinois beginning on the first day worked With this change, Illinois residents would be eligible for a foreign tax credit for each workday taxed by another state

Much to Rep Manley’s dismay, I opposed her legislation on b e h a l f o f t h e I l l i n o i s C h a m b e r o f C o m m e rc e b e c a u s e i t w o u l d have required an immediate change to the manner in which mul-

tistate employers track their employees In order to implement the l e g i s l a t i o n , m u l t i s t a t e e m p l o y e r s w o u l d h a v e b e e n r e q u i r e d t o track the location of their employees on a day-by-day basis and integrate this employee tracking into their payroll withholding systems A number of Illinois Chamber of Commerce member companies advised that they currently don’t have systems in place to fulfill this requirement, which was confirmed by KPMG’s recent Multistate Nonresident Withholding Survey Report

All hope is not lost, however. In lieu of moving forward with HB 675, Rep Manley introduced, and the House adopted, HR 451, which directs the Illinois Chamber of Commerce, Illinois Department of Revenue, Illinois Manufacturers' Association and Illinois Retail Merchants Association to collaborate as a group over the s u m m e r a n d f a l l t o p r o d u c e a s o l u t i o n t o t h e c u r r e n t d o u b l etaxation problem. I’ll keep you posted on how things progress.

I n c i d e n t a l l y, a s I ’ m d r a f t i n g t h i s c o l u m n , t h e U S S u p r e m e Court has ruled that the State of Maryland’s foreign tax credit violated the U S Constitution’s Commerce Clause in Comptroller of the Treasury of Maryland v Wynne. Based on a quick review of the case, I don’t believe the legality of the Illinois foreign tax credit is affected by this decision

Finally, Congress is weighing in on this issue again this year HR 2315 and its counterpart S 386 in the Senate would create a state income tax threshold for employees who work more than 30 days a year outside the state of their residence which simplifies requirements and subsequent paperwork for employers and employees

BRAD SARGENT, CPA/CFF, CFE , CFS, Cr FA, FABFA

The Taxman’s Going to Get You!

Even the most sophisticated fraudsters stumble when tax time rolls around.

While sophisticated, fraud is often a short-term play that fails to consider the long-term ramifications. Taxes are one of those ramifications.

Consider two distinct and very common cases: Asset misappropriation and income overstatement. Both cause tangible damage to the entity, can quickly rise to the level of criminal behavior, may mean substantial gains for the perpetrator and have a tax “shoe” waiting to drop years after the fraud is committed

Asset misappropriation most commonly involves the theft of cash Of course, it also may i n v o l v e a n y t h i n g f r o m i n t e l l e c t u a l p r o p e r t y b e i n g d o w n l o a d e d o n t o a p o r t a b l e s t o r a g e d e v i c e t o i n v e n t o r y w a l k i n g o f f a r e c e i v i n g dock. Regardless of the asset, let’s think about the accounting For the sake of my example, w e ’ l l o n l y c o n s i d e r a s s e t s t h a t a r e a l r e a d y

to a business owner who knows they should be making more money but can’t figure out what’s wrong? Dollars are rolling off the balance sheet and draining the income statement, but why?

Less industrious fraudsters credit the misapp r o p r i a t e d a s s e t a c c o u n t a n d d o n ’t h a v e t h e brass to debit the income statement Instead, they “reclass” the stolen asset and artificially inflate another asset account This can go on f o r o n l y s o l o n g b e f o r e r i s k i n g e x p o s u r e I n s o m e c a s e s I ’ v e a c t u a l l y s e e n a r e d u c t i o n t o cash and a reduction to payables Talk about a short-term scheme

entered into the accounting system rather than assets diverted prior to being recorded in the books. When assets are reduced, you’ll see a credit on the balance sheet. But what’s on the other side of the entry? A debit has to go somewhere, but where?

With the theft of cash, we commonly see a bogus expense involving an employee or vendor In this case, a debit hits the income statement, reducing the entity’s profits Only slightly less obvious is a cost-of-sales debit, with the same impact on profits. Have you ever talked

Eventually, most asset thefts end up on the income statement as an understatement of income. The result is less income to distribute and a lower tax obligation The entity fails to pay tax on actual profit because of the employee theft (an actual loss). Correcting this with the IRS typically doesn’t involve a big hit to the entity.

Far more impactful is the case of income overstatement, often committed to deceive stakeholders At the turn of the millennium, we witnessed mass income overstatement among publicly traded entities, with the goal of meeting and exceeding Wall Street expectations, which in turn kept stock values and market capitalization artificially inflated Enron, WorldCom/MCI and HealthSouth all aggressively sought tax credits and refunds when their respective frauds

WERE SO INTRICATE THAT LAYER UPON LAYER OF BAD DATA AND CREATIVE ACCOUNTING HAD TO BE PEELED BACK IN ORDER TO GET AT THE TRUTH

“Have you ever talked to a business owner who knows they should be making more money but can’t figure out what ’ s wrong?”

came to light, arguing with varying degrees of success that the entity overpaid taxes on a r t i f i c i a l i n c o m e , u s i n g s h a r e h o l d e r d o ll a r s T h e y c o n t e n d e d t h a t , s i n c e t h i s income wasn’t real, the tax obligation didn’t exist and shareholder dollars should be returned to the entity for distribution back to the shareholders

Many of us recall those days back in 2003 and 2004 with a mix of amusement and disdain. These leviathans created massive amounts of artificial wealth for their shareholders and now wanted more dollars for shareholders as the “victims” of fraud

More common is the case of overstating i n c o m e i n o r d e r t o d e c e i v e c r e d i t o r s I n this scenario, an entity cooks the books, receives funding it’s not qualified to receive and, predictably, goes into default. The bad guys may think they’re smart, but often don’t consider the tax consequences when the lender actually writes off the bad debt and issues a debt cancellation Now the fraudster may face both civil and criminal liability, as well as material tax obligations

Ambitious fraudsters who juice the inc o m e s t a t e m e n t a n d s e c u r e n u m e r o u s l o a n s a r e p a r t i c u l a r l y a t r i s k w h e n t h i s double whammy comes back to bite them down the road Of course, this is all predicated on the fraud being uncovered and the bad guys being caught

The basic accounting for income overstatements is a false credit to revenue or to cost of sales. But where do you hide the debit? Putting it on the income statement offsets the credit and defeats the purpose of the fraud The balance sheet, then, is the logical place; and, in fact, contra-asset accounts are a favorite hiding place Interc o m p a n y a c c o u n t s a l s o a r e f r e q u e n t l y used as a landing place for the other side of a bogus entry into the general ledger. In an asset-based lending scenario, inflating income and the asset base is a “win-win” for the bad guys and terrible news for the l e n d i n g i n s t i t u t i o n S i m p l e a u d i t p r o c edures, such as counts, confirmations and ratio analytics, ultimately can expose massive income overstatements.

If you’re a business owner with concerns about your profits, try these basic audit procedures If you’re a fraudster looking to prolong your fraud, think twice about the unforeseen tax consequences of your acts You may pay far more than you think!

Town Hall Forums are a great opportunity for you to interact with the Society's leadership and your peers as you discuss the powerful issues facing the profession.

MINDED

Don’t Be a Stereotype

How useful can a description meant to represent

ly a n d g e n d e r - w i s e d i v e r s e generation of people really be?

From a performance standpoint, there are major competitive advantages to diversity (perhaps that’s a column for another day). There also can be major obstacles to achieving it, one of which is the pervasiveness of generational stereotypes. Stereotypes they’re widely held and, by necessity, oversimplified ideas about the groups they represent. I can’t speak for everyone, but I would venture to say that the majority of peop l e f e e l s t e r e o t y p i n g i s a q u e s t i o n a b l e t h i n g . Ye t , w h e n w a s t h e l a s t t i m e y o u m a d e i t t h r o u g h t h e w e e k w i t h o u t r u n n i n g a c r o s s a t least one article or headline about Millennials, Baby Boomers or Generation Xers? This one is a personal pet peeve of mine, and while mine m a y b e a n u n p o p u l a r o p i n i o n , t h a t ’s n e v e r stopped me before.

to a new team So what can you do to make that transition easier?

I’ll start by stating the obvious: The key is to minimize irrelevant differences and emphasize similarities instead.

F o r o n e , f o rg e t y o u r a g e T h i s m a y s e e m trite, but new team members often surprise me with their belief that communicating their age is a means to convey experience or potential I’ll just say that as long as you’re old enough to join the team for a beer after work, your age is irrelevant.

Unless you know with certainty that it will be positively perceived, your age is better left unsaid. If age does come up in conversation, e m p h a s i z e e x p e r i e n c e i n s t e a d To a v o i d a n y awkward moments, prepare a response to give

What’s the best way to combat negative generational stereotypes? @IllinoisCPA #GenerationXYZ

Any list of a generation’s characteristics is, at best, a description of an average member of that generation. As I recall, statistically speaking and for all practical purposes, no one is average Ye t g e n e r a t i o n a l s t e r e o t y p e s p r e v a i l i n t h e media, and unfortunately that means they find their way into the workplace as well It’s challenging enough to take on a new role on a new team, but it’s even more difficult if you have to combat stereotypes, particularly those with the negative attributes often ascribed to a specific generation. Even a great manager can only do so much to help you make a smooth transition

if the topic does indeed arise I’ll give you an example: A CFO I previously worked with once asked me my age at a dinner with colleagues I simply told him that I rounded everything to the nearest thousand just like the company’s financial statements (bad accounting humor)

If you don’t feel that you have a lot of relevant experience, emphasize the nature of that experience rather than the amount Save the big age reveal for when you reach the executive suite and your age is disclosed in the company’s annual report. By then your experience and accomplishments will speak for themselves

SOME VERY DIVERSE TEAMS. I BELIEVE STRONGLY IN WORKFORCE DIVERSITY IN ALL ITS ASPECTS AGE, GENDER AND ETHNICITY, TO NAME JUST A FEW.

Also strive to establish connections beyond your generational peer group in order to broaden your perspective. While it may be easier to find common ground with those near your demographic, you can learn so much from those who have had different experiences than you, whether less or more It will help you appreciate situations from multiple viewpoints and prepare you to lead large, diverse teams perhaps in areas outside of your current expertise as you progress through your career. To date, one of the most rewarding opportunities of my career came when I had the chance to stretch beyond financial accounting into operations with an assignment that called for me to lead a very diverse team of amazing people. The team’s experience spanned almost 40 years across many global industries, serving many different customer types.

My best piece of advice is this: Act with an attit u d e o f a c c e p t a n c e a n d y o u e l i m i n a t e a n y c h a llenges others may have in accepting you as one of the team That said, it may take a few weeks and p o s s i b l y e v e n m o n t h s b e f o r e y o u f e e l y o u ’ v e reached that milestone I’ve found that the amount of time it takes for a new team member to integrate with the team is inversely correlated with how much and how effectively they communicate Communicating positive intent through a willingness to learn a n d t o h e l p c a n q u i c k l y d i m i n i s h r e s i s t a n c e a n d bridge a world of differences.

Day of Service

Register your volunteer activity plans at www.icpas.org/CPADayofService.htm. Receive a free CPA Day of Service t-shirt (while supplies last, free to Illinois CPA Society members). Volunteer as an individual, or get a group together and volunteer as a team. You can choose ANY volunteer activity you like.

Questions? Please contact Ashley St. Jules at stjulesa@icpas.org or 800.993.0407, ext. 250.

CPAs for the Public Interest (CPAsPI), the community service arm of the Illinois CPA Society, links the expertise of CPAs and finance professionals with Illinois not-for-profit organizations and community needs.

Social Media Gets Ugly

5 best practices for protecting your company ’ s reputation in the digital age

By Selena Chavis

ing trust and reputation management Companies today, he notes, are especially vulnerable for two reasons: Operations are spread out across the country and globe, and there’s a tremendous two-way dialogue going on thanks to social media

The advent of public review sites in particular has been a game changer in the world of r e p u t a t i o n a n d b r a n d m a n a g e m e n t . “ T h e s e sites place the power in the hands of the consumer,” says Samuel Thimothy, digital marketi n g s p e c i a l i s t w i t h C h i c a g o - b a s e d O n e I M S “People can publically read and write reviews about products and brands all over the globe ” Given that fact alone, the importance of a corporate social media policy is pretty much a given. But beyond internal policy drafting, how do you protect your company’s reputation in a fluid marketplace and position your organization for the future? Here are five best practices that can help

1. Understand Evolving Dangers

Adecade ago, the phrase “going viral” didn’t exist Today, in the age of social media and the 24-hour news cycle, it’s possibly the C-suite’s worst nightmare.

Take United Airlines, whose brand recently came under fire across social media and national news outlets when a pilot diverted a flight and made an emergency landing because an autistic teen allegedly “became disruptive ” In this case, it was the mother ’s word versus the airline’s. While there are plenty of supporters on each side, negative light is negative light no matter who’s right

“Your reputation is everything If you’re in the financial space, for instance, your reputation is based on trust and confidence both of which can take a long time to get back if damaged,” says Jason Maloni, senior vice president and chair of the litigation practice at Levick, a leading public relations firm that specializes in build-

The dangers of the digital marketplace have evolved from amateur hackers wreaking havoc on businesses for kicks to more sinister activities where professional data thieves may choose to blackmail companies by threatening to release damaging information, explains

Solutions

Doug Dvorak, president and CEO of Chicago’s SEO

From another angle, “cybersquatting” is a new term that involves the registering, selling or use of a domain name for the purpose of profiting off someone else’s trademark an issue that increasingly is a problem when it comes to managing a company’s message and image.

2. Relate to Your Customers

“When things go bad and reputations are on the line, things can spread like wildfire,” Malo n i c a u t i o n s S t a y i n g o n e s t e p a h e a d o f t h e message means knowing who your customers are and how to reach them. Are they on Facebook and Twitter, or lesser-known sites? This

knowledge will help you strategize a response and get your message out faster

T h e w o r s t a p p r o a c h i s t o l e a v e s i t u a t i o n s t o h a p p e n s t a n c e . “Often, small companies just don’t have the time and resources to devote to activities that engage customers and solicit reviews,” says Thimothy “But companies need to develop a dialogue with customers so that feedback good or bad happens directly with the company. When that kind of rapport is built, the company can then try to engage customers to provide positive feedback in public forums.”

3. Draft a ‘What If?’ Plan

It’s an extreme example, but a prudent one: Educational institutions now plan for the likelihood of an active shooter appearing on campus due to the increase in such occurrences. Similarly, identifying the potential for negative incidents surrounding your company and brand is critical “The first step is to determine what likely and unlikely scenarios potentially could result in extreme, negative circumstances,” says Maloni. “Companies need to anticipate what can happen and how they will respond. It will define the face of the company in a crisis ”

4. Constantly Monitor the Web

Thanks to the anonymity the Internet offers, it’s incredibly easy for people to set up false names and profiles and spread false information. “If a company or individual sees that their name has been falsely claimed on social media sites, for example, the only way to get the accounts removed is to complain,” Dvorak explains For that reason, he says, constant monitoring is critical

While many small businesses don’t have the resources available for 24/7 monitoring, Dvorak suggests setting up free Google Alerts and leveraging other free monitoring tools as a first-phase approach

5. Respond Swiftly and Well

Many companies make the mistake of hiding their heads in the sand when it comes to social media and public review sites Don’t be one of them. “If you get a bad review, you need to address that,” says Thimothy “Don’t leave things to chance.”

The best response is to make the situation right in person if possible, adds Dvorak If not possible, a digital response may be necessary, but he cautions against feeding the problem with an ill-planned comeback.

Take Target’s now famous data breach Maloni points out that the company was quick to release “facts” about the situation

that later had to be changed on multiple levels. “In crisis situations where the public at large has been engaged, companies should be careful not to say too much too soon,” he cautions “You can only lose your credibility once That’s how a story snowballs from a oneday story to death by a thousand cuts ”

Above all else, Maloni adds, “The actions you take are more important than the words you say You have to marry strong words with strong actions ”

CFOs Go Global

7 skills launching finance leaders on to the international stage.

By Sheryl Nance Nash

When Christopher Columbus came to the New World, who did he bring right along with him? “An accountant, Rodrigo Sanchez, who w a s s e n t b y t h e Q u e e n a n d K i n g o f S p a i n , ” R o b e r t o C a s t a n e d a , p r o g r a m d i r e c t o r o f a c counting and finance at Walden University in Minn , explains

To put it simply, finance leaders have been, a n d a l w a y s w i l l b e , a m o n g t h e m o s t t r u s t e d b u s i n e s s a d v i s o r s p a r t i c u l a r l y i n t h e “ N e w World” of international business

Undoubtedly, finance is an interesting place these days “Major U S companies continue to e x p a n d o v e r s e a s i n f e r t i l e l a n d s o f b u s i n e s s opportunity such as China, India and Mongolia Businesses are looking for more talent to assist in these endeavors,” says Castaneda The truth is, even the smallest business can have a global reach today.

What does that mean for finance professionals? “Their roles are becoming more global in

scope because the underlying nature of business is changing,” explains Norma Lauder, director of the MS Tax Program at the University of Illinois at Urbana-Champaign “The impact that a transaction or decision can have is now global, and as a result, they must view their work through a global lens.”

“Businesses are realizing the CFO’s knowledge of financial data and information is a powerful asset that needs to be used to make good business and strategy decisions They also realize the CFO and finance team have inherent disciplines to execute on strategy that others in the organization can’t provide. Unleashing this asset is required to compete in this global market of intense competition for market share, margins, and more,” says Alexander Hansen, executive partner of CFO Services for Hardesty LLC, a national executive services firm.

However, not all finance professionals are ready to step into global roles “The globalization of business has evolved too rapidly for everyone to keep pace,” Lauder contends The change will indeed prove challenging for some. “The average corporate finance professional may not necessarily be prepared for the size, scope and technical aspects of interpreting changes in accounting policies that are facing large multinational organizations,” says Chandra Pappas, senior vice president with Randstad Professionals, a professional interim services firm with locations across the globe.

Are you the stuff global CFOs are made of?

Here are seven skills, qualities and traits that promise to launch finance leaders into the international marketplace

1. Speak a Global Language

In order to be a truly global business leader and keeper of public trust, “business experience in foreign countries is a necessity. Foreign tours of duty are a must,” says Harry Zike, group CFP of Chinook Sciences For those on their rise up the ranks, put in your request for an international assignment ASAP!

What’s more, “A minimum of two, preferably three language s k i l l s i s b e c o m i n g e s s e n t i a l t o f u l f i l l t h e g l o b a l b u s i n e s s r o l e , ” Zike adds.

2. Understand the Global Marketplace

Making sense of an increasingly complex market is a big challenge

“While many companies are finding they need to be global to be competitive, the risks are more complex, and complying with regulations from multiple jurisdictions can be confusing,” says Hansen.

With more than 100 countries following IFRS, finance professionals can bring exceptional value to their companies by understanding these accounting rules, along with local customs and laws, says Castaneda

“Having the ability to understand and not judge foreign rules and regulations, and having experience in diverse environments and geographic locations is very helpful,” adds Zike

3. Embrace International Relations

To be a trusted business partner, you need to inspire the confidence of local management and other local stakeholders, while also supporting the needs of the U.S. company.

“

T h i s i n c l u d e s d e v e l o p i n g r e l a t i o n s h i p s with local banks, vendors and the community a t l a rg e , ” s a y s C a s t a n e d a “ I ’ v e v i s i t e d a n d lived in many countries as an expatriate and h a v e f o u n d t h a t f i n a n c e p r o f e s s i o n a l s , i n terms of trust and ethics, are treated with high regard everywhere.”

4. Put Ethics Front and Center

The CFO is the natural leader and keeper of p u b l i c t r u s t , a n d o f t e n s e r v e s a s t h e c o nscience of the organization CFOs therefore need to understand the consequences of their actions and their impact on business activit i e s E t h i c a l c o r p o r a t e g o v e r n a n c e i s e v e r y e m p l o y e e ’s r e s p o n s i b i l i t y, i t ’s t r u e , b u t i t ’s especially in the CFO’s purview to be a global ethics watchdog.

5. Grab a Few More Hats

The CEO and board at many companies, particularly those that play in the global marketplace, demand that a CFO have a well-developed and diverse toolkit in order to successfully manage finance, strategic transactions, M&A integration, systems and data management, and controllership. “They are looking for not only a team player, but also a leader who will help to drive operational improvement and develop strategy,” Hansen explains

6. Yes, Soft Skills Play a Part, Too

In an expanded, more global role, soft skills become evermore critical, since finance professionals are communicating with a broader range of constituents with diverse cultural backgrounds and customs

“The CFO of tomorrow needs strong public speaking skills and presence to be a col-

laborator, and have the ability to compromise at the right time,” says Hansen

7. Make Diversity Your Mission

To d a y ’s s a v v y C F O s a r e c h a m p i o n s o f d i v e r s i t y a n d i n c l u s i o n , Hansen explains. “As companies become more global, finance teams need to match their clients and those with whom they interact in the same way that the rest of the organization needs to.”

If there’s one guarantee in today’s corporate world, it’s that change will come on a global scale. How you adapt to that change will determine your ability to take your place on the global stage

Minding the Millennials

Studies say Millennials aren’t the superstars we think they are. What gives?

By Sheryl Nance Nash

What happens when one of the top spenders on education the United States turns out a generation of young professionals that scores considerably lower than its international peers? Confusion for one, and a fair bit of finger pointing. Employers and experts alike are flustered by results issued by Princeton-based Educational Testing Service (ETS), following its Program for the International Assessment of Adult Competencies test, administered to 23 participating countries. These results suggest that American Millennials are severely lagging in core competencies such as following directions, practical math, literacy and “problem-solving in technology-rich environments” when compared to their counterparts in other developed countries In fact, U.S. Millennials were bested by their peers from every participating country with the exception of Spain and Italy. In numeracy, U.S. Millennials came in last And to make matters worse, Millennials scored lower than any other tested age group within America (the test targeted individuals aged 16 to 65)

3 Simple Steps to Spotlight Your Talents

The disconnect is disorienting. A generation considered to be the best and brightest we’ve seen to date aren’t scoring as such But do these t e s t r e s u l t s r e a l l y g i v e a n a c c u r a t e p i c t u r e ? I mean, just take a look at Forbes’ 30 Under 30 and Crain’s 20 In Their 20s. It’s not like they’re struggling for nominees So what gives?

“ W h i l e m a n y U S M i l l e n n i a l s a r e d o i n g great, I do recognize the differences,” says Rick Wong, a former VP and global device partner for a Seattle tech firm During his tenure, Wong spent more than 60 percent of his time in Asian countries, including China, India, South Korea and Japan, and gained plenty of exposure to Millennial employees, customers and partners in each of those countries

“My Millennial employees in Asia were focused on how much they got accomplished and l o o k e d f o r r e w a r d s b a s e d o n w h a t t h e y g o t d o n e , ” h e r e c a l l s “ B u t m y U S M i l l e n n i a l s e x p e c t e d r e w a r d s f o r t h e i r e f f o r t , w h e t h e r i t produced results or not ”

Wong adds that his kids’ elementary and high school teachers focused on building self-esteem and rewarding effort rather than results Conversely, his Asian employees were expected to maintain an intense focus on core skills such as math, reading, writing and logic, telling him, “If you didn’t do things right, you did them over until you got them right ”

Becky Fisher, executive director of partnerships at Fullbridge, a career accelerator program, suggests that Millennials take the following steps to silence the naysayers and truly showcase their abilities:

1 Develop a toolbox of skills “Start building a set of hard and soft skills that will make you a more desirable hire Skills such as public speaking, finance, presentation and teamwork are all attractive to companies The more these skills are developed, the more an employer will want to hire you ”

2 Be humble and willing to learn “No one knows everything, especially those who have been in the workforce less than 10 years Show a willingness to learn from those around you, and stay open-minded ”

3 Get real “ There is no substitute for hard work no matter what anyone tells you To be an A-player in the workplace, be less concerned about how to be an A-player and more concerned with how to help your company, team and manager ”

“Higher education and corporate development are operating in two separate worlds right now, but they need to talk about each other ’s needs,” says Ladan Nikravan, senior editor for Human Capital Media in Chicago “Millennials just aren’t learning the literacy, math and problem-solving skills necessary before entering the workforce.”

“Many lack the real-world experience to develop globally demanded skills,” adds Joan Kuhl, founder of consulting and research firm Why Millennials Matter “They are more prepared to ace the interview than to exceed expectations on the job.”

While it’s easy to point fingers, not everyone is ready to throw Millennials off, or under, the bus “Having worked with and taught high school students across the world over the past four years, I can confidently say that American critical thinking surpasses peers from across East Asia and South Asia,” says Frank Pobutkiewicz, founder of College Apprentice, a provider of international education programs for elite high school students.

And Joshua Watson, a Millennial and owner of IronRock Software, points out that, although in 1964 the United States ranked 11 out of 12 in international math assessments, only five years later we landed men on the moon and have led the world economically and technologically ever since

So is it really a matter of perception over assessment? Kuhl argues that today’s Millennials are talented, driven and focused on what they want, yet are far too casual about their career preparations When Why Millennials Matter partnered with Barnes & Noble College to study career preparation levels and Millennial perceptions of which skills and experiences companies desire, a major finding was that only 36.7 percent of juniors and seniors had participated in an internship, and 42 5 percent never even applied to one

Kyle Lukianuk, a Millennial and director of business development at Good Returns Group, suggests this might be an intentional choice. “In my opinion, the true cause for Millennials ‘lagging behind’ in job-related skills is that it becomes overly apparent early on that success in almost every industry relies much less on what you know, but rather who you know My generation has discovered that grabbing a beer with someone in the industry you’re interested in and building a network and placing your foot in a bunch of doors can be just as beneficial as achieving a 3.8 in a financial derivatives class and it’s way more fun ”

Fun seems to be a recurring theme Millennials tend to value open communication, professional growth, fairness, humor, levity, clarity and wellbeing in the workplace, according to a recent survey by Aon Hewitt When asked what they liked most in an organization, they cited more relationship-oriented values, including work-home balance, employee recognition, loyalty and respect. And when asked what they most wanted to see enhanced in their current jobs to increase their engagement or satisfaction, the top answers included pay and benefits, good career or development opportunities, and performance recognition

At a time when employers are striving to attract and retain talent, the survey found that 43 percent of Millennials plan to actively look for a new job So what are employers to do?

This generation needs to be accepted and provided with the opportunities to grow, says S t e f a n i e C h o w, a M i l l e n n i a l e n g a g e m e n t s p e c i a l i s t a n d c o r p o r a t e t r a i n e r “ E m p l o y e r s could provide more entry-level jobs and implement more effective mentorship and training programs, for example.”

Furthermore, Millennials crave feedback a fact that needs to be leveraged “Managers have opportunities daily to create great workplace cultures in which they provide leadership and guidance. While some managers might ask why they should praise Millennials for doing their jobs since that’s what they are getting paid for, Millennials are less likely to respond to the traditional command-and-control type of management,” explains Paul Snellenberger, senior HR consultant with People, Etc. “Give a little and you may get a lot. Every person is unique and has something to offer Managers can’t be intimidated by differences ”

Setting goals also helps to provide focus “Millennials like to feel like they are contributing to something greater than themselves; they want something that they can believe in,” explains Andrea Westhead, an HR specialist with StaffScapes “Work with them to come up with goals for their job, and be clear about duties, responsibilities and expectations ”

This is a generation with plenty to contribute if we all listen, says Westhead. “Millennials want to have input on processes and discussions on those processes, and not just be told what to do and how to do it. Try asking them how they might better facilitate a project, and then ask them to walk you through the process step-by-step,” she says With each step, Millennials get closer to living up to their full potential and a formidable potential it is

The Equality Equation

5 ways women can confront and rise above gender stereotypes.

By Andrea S Kramer

What’s your take on gender bias in business and finance today?

@IllinoisCPA #AccountingWomen

We all rely on stereotypes to simplify our cognitive processes. These “shortcuts” allow us to quickly evaluate and relate to other people As useful as stereotypes can be in some situations, they often get in the way of accurate evaluations when we’re dealing with individual people, and they often operate as discriminatory scripts for how we relate to others

Given that, it’s really no big surprise to learn that women tend to have a much harder time advancing in their careers than their male counterparts with similar qualifications and work experiences Looking at accounting and finance

specifically, studies quoted by PCAOB Board Member Jeanette M Frazel in Leadership in Public Accounting Firms: Why So Few Women? indicate that women make up almost 50 percent of all U S accountants and represent 19 percent of all partners in CPA firms nationwide At the same time, they represent only 17 percent of all partners at firms with staffs of over 50 people.

These statistics, which are similar to those of many other professions, illustrate the ongoing issue of gender stereotypes and the often unconscious biases that flow from them.

Feminine vs. Masculine

Common gender stereotypes associated with women include being affectionate, sensitive, warm, emotional, sympathetic, friendly, kind, understanding, appreciative, mild, pleasant and concerned about other people We can summarize these traits by saying that women are “communal,” meaning that women tend to care about the goals and needs of the entire community

On the flip side, gender stereotypes associated with men include being aggressive, dominant, ambitious, willing to take risks, forceful, self-confident, independent, tough, achievement-oriented, competent, problem-solving and self-reliant These traits are called “agentic,” meaning that they are assertive and independent, and get things done

Biases that flow from these stereotypes say that a woman who is “too hard” is unfriendly, cold and unlikable, even if she brilliantly performs her job. A woman who is “too assertive” is seen as agentic, which violates traditional gender stereotypes.

At the same time, gender biases say that a woman who is “too soft” is likable but not capable of being a successful professional This means that a woman who follows traditional gender stereotypes is, in all probability, someone people like but also someone who may not readily succeed in her career The dilemma of being too hard (agentic) or too soft (communal)

Editor ’s Note: At the 2015 Women’s Executive Committee Women’s Leadership Breakfast, Andrea S Kramer, a partner in the international law firm of McDermott Will & Emery LLP, spoke about gender bias challenges in today ’ s workplace and strategies for overcoming them Here, she recaps her remarks and offers her insights into how to reach your career goals while remaining true to yourself

DISTINGUISHED SERVICE AWARDS

Gregory M. Ciokajlo, CPA

Ciokajlo, Hein & Associates Inc

Taxation Executive Committee

Susan E. Coats, CPA

Heinold Banwart Ltd

Central Chapter

Anna P. Dourdourekas, CPA Grant Thornton LLP

Ethics Committee

Brett A. Efimov, CPA

Brett A. Efimov, CPA Ltd.

Chicago South Chapter

Janice L. Forgue, CPA

McGladrey LLP

Employee Benefit Plans Committee

Richard L. Grafton, CPA

Estes, Bridgewater & Ogden CPAs Not-for-Profit Organizations Committee

Deborah L. Kurtzke, CPA

Grieco Kurtzke & Adelman LLC

Taxation Practice & Procedures Committee

Barbara W. McIntyre

PricewaterhouseCoopers LLP

Women's Connections Committee

Kathleen A. Musial, CPA

BIK & Company LLP

Employee Benefit Plans Conference Planning

Task Force

Kent E. Reeves, CPA

Kent Reeves, CPA

Government Report Review Committee

Bruce A. Robbins, CPA

Kutchins Robbins & Diamond Ltd

Ethics Committee

Jakob J. Thompson, CPA

Benning Group LLC

Northern Chapter

TIME AND TALENT PUBLIC SERVICE VOLUNTEERISM AWARD

Sylvia S. Kellogg, CPA USG Corporation

YOUNG PROFESSIONALS LEADERSHIP AWARD

Charlene D. Rhinehart, CPA, CFE, PMP

Ms. Corporate America 2015/Founder of CEO Unlimited

OUTSTANDING LEADERSHIP IN ADVANCING DIVERSITY AWARD

Dianne Lopez Lystlund, CPA, MBA Reserves, Risk Management and Reinsurance, Allstate Insurance Company

EMERGING LEADER IN ADVANCING DIVERSITY AWARD

Samuel Delgado, CPA

Latin America/Canada Area Controller, Abbott Diagnostics

OUTSTANDING EDUCATOR AWARDS

Martin J. Coe, DBA, CPA

Accounting Professor, Western Illinois University

David L. Gray, MAS, CPA, CMA

Associate Professor of Accounting and Chair, Department of Accounting, North Central College

Jeff Varblow, CPA

Accounting Faculty, College of Lake County

LIFETIME ACHIEVEMENT AWARD

Michael J. Singer, CPA

Principal, Michael J. Singer and Company, P.C.

The Illinois CPA Society is proud to recognize all of our award winners and congratulate them on their accomplishments.

The CPA Center of Excellence® will help you gain knowledge through intelligent collaboration.

is often referred to as the “double bind ” And mothers, who face the maternal wall, face the double bind on steroids

Mothers, the stereotypes say, should be available to their children 24/7 People who hold this view believe that mothers can’t possibly be as committed to their careers as are fathers And if a mother is a devoted accountant, auditor or finance professional, she must be (the stereotypes say) neglecting her children

Gendered Career Roles

It’s no new news that stereotypes often hold women back in their careers Our tendency is to think that appropriate careers for women and for men ought to match the stereotypical characteristics associated with them For instance, if caregivers are considered communal, then women should be caregivers. And if agentic traits are associated with leaders, then men should be leaders These stereotypes divide the world into career roles supposedly appropriate for either women or men, but not both

Nowadays we’re unlikely to hear out loud anyway something like, “Women aren’t smart enough to be accountants.” Instead, we’re more likely to hear something along the lines of, “Women aren’t as ambitious as men ” Because of these biases, women often feel they need to demonstrate higher competence and commitment than their male counterparts to reach the same career levels

Gender bias makes it hard but not impossible for women to reach the top.

Strategizing for Success

Before explaining ways in which women can work around traditional gender biases, I want to make a few things clear. First, I’m not buying into gender stereotypes by acknowledging that they exist and affect the ways in which women are viewed in the workplace What’s more, I’m not suggesting that gender stereotypes accurately reflect reality And I’m not telling women they need to be inauthentic in order to succeed in gender-biased workplaces

What I am saying, however, is that women need to be aware of the way in which gender biases can and do affect their careers I’m also saying that to reach the top, women need to be skilled in specific communication techniques and strategies Here are just five of them

1. Manage the Impression You Make. Impression management is the intentional effort to shape or change the impressions we give to others about ourselves And the first step in impression management is to be sufficiently self-aware to accurately “read” ourselves and the reactions other people have to us. Nonverbal communication is vital in this understanding what is actually being said, not just the words being spoken. Keep in mind that you never get the chance to make a first impression twice, so it makes sense to have a memorable one-minute introduction prepared to use at any time, explaining what’s new in your career and what projects you’re involved with This can help to give you the confidence to connect with others in ways that showcase your strengths and talents

2. Balance Communal & Agentic Qualities. Studies show that women who use both communal and agentic traits have significantly improved performance ratings and more career opportunities, and receive more promotions than their peers In Reducing the Backlash Effect: Self-Monitoring and Women’s Promotion, for example, researchers found that women who use both types of traits do better much better than women with agentic-only or communal-only traits.

3 Build & Demonstrate Your Confidence

To be successful, you need to take pride in what you’ve achieved and believe in your abilities. This requires confidence and a willingness to display agentic characteristics. Two techniques “mind priming” and “power posing” can help you in this Mind priming involves writing a couple of paragraphs about a time when you felt powerful or happy, or writing about your goals and aspirations. The process of focusing on something positive about yourself gives you a more positive attitude, which increases your self-confidence something the people you interact with will pick up on In other words, you can actually think your way into more powerful and confident behavior Power posing, on the other hand, involves adopting an open body posture (standing or sitting tall with your shoulders back), which increases your testosterone levels and reduces cortisol levels to help you feel more powerful

wherever and on whatever device you want. Competency-based interactive learning in a bite-sized, game-like environment. Learn from instructors and your peers.

4 Master the Art of Self-Evaluation Based on my personal review of well over 1,500 self-evaluations, it’s usually easy to identify those written by women and those written by men

Women (as a group) tend to play into traditional gender stereotypes by downplaying their accomplishments, acting modestly, and remaining silent about their career objectives

Men (as a group) tend to be self-laudatory, proudly setting out their accomplishments and making sure their career objectives are clearly known to their supervisors I can’t emphasize enough that you need to give your self-evaluation as much attention as you would to an important work project, and confidently explain and boldly recount your achievements

What’s more, our career goals and accomplishments aren’t automatically broadcast to supervisors or colleagues as we think and feel them You have to clearly explain them on a regular basis and seek out a sponsor and a mentor to champion your efforts. You are evaluated all year long, so stay in touch with those people who have a say in your career.

5. Forge Strong Connections. Connections are important for more reasons than I can list here My recommendation is to develop an inside and outside network that will create a positive buzz about you Join and actively participate in professional societies, associations and, of course, ICPAS Particip a t e o n f i r m o r c o m p a n y c o m m i t t e e s t o h e l p b u i l d y o u r w o r k p l a c e a l l i a n c e s a n d f r i e n d s h i p s A n d g e t i n v o l v e d i n trade associations relevant to your clients and their industries These connections are well worth your time

Note: Check out Andrea S Kramer ’ s forthcoming book, Scripts for Success: Communication Techniques to Break Through Gender Bias in the Workplace (Bibliomotion), or contact her at akramer@mwe com

The Blame Game

A company ’ s management commits fraud, but auditors fail to spot it. So where do you point the finger?

By Brian J Hunt, J D

For a brief background, consider the seminal case of Cenco v Seidman & Seidman (1982).

H e r e , c o r r u p t m a n a g e r s f r a u d u l e n t l y i n f l a t e d the price of inventory and used the increased s t o c k p r i c e s t o p u rc h a s e c o m p a n i e s , b o r r o w money and file exaggerated insurance claims. A newly hired financial officer eventually discovered the fraud

Seidman & Seidman were Cenco’s auditors throughout this period, but failed to perceive and uncover the fraud The Seventh Circuit Court of Appeals held that Illinois tort law would apply the doctrine of in pari delicto, and began by noting that fraud on “behalf of” a corporation is not the same as fraud “against” the corporation

The Court went on to explain that fraud against the corporation usually only harms the corporation, with the stockholders being the principal if not the only victims. On the other hand, when officers commit fraud on behalf of the corporation, outsiders rather than stockholders are the primary victims The Court reasoned that, in such cases, the stockholders shouldn’t escape responsibility for the fraud

We know that auditors make every effort

t o e n s u r e a c o m p a n y ’s f i n a n c i a l s t a t e m e n t s accurately and fairly present an organization’s transactions And we know that auditors can be held liable for losses caused by their oversight or negligence However, what if a company’s v e r y o w n m a n a g e m e n t i s i n v o l v e d i n f r a u d against the company? Well, this is where things get interesting

If auditors do have the misfortune of finding themselves deceived by company managers, they may find salvation in the form of the in pari delicto defense, meaning “equally in fault ” Under this defense, responsibility for the losses brought about by the fraud falls to the company versus the unsuspecting auditors.

What’s more, the Court reasoned that allowing the corporation to shift responsibility to the auditors wouldn’t promote the objectives of tort liability, which include compensating the victims and deterring future wrongdoing With respect to the latter, the Court stated that the incentive for corporations to hire honest managers and monitor their behavior would be reduced if the shareholders of a corrupt corporation were allowed to simply lay the blame at the auditors’ door

More recently, Parmalat Capital Finance Ltd v Grant Thornton International (2014) provides an illuminating discussion of the in pari delicto defense. Parmalat started life as an Italian dairy operation and grew into a multinational food company In the late 1980s, when Parmalat began experiencing financial difficulties, company insiders chose to concoct schemes and transactions to create the appearance of financial health. They obtained loans based on these

transactions, which were used to service company debt and obtain more loans

Parmalat’s directors hid these schemes in false financial statements, which were later approved by their auditors, Grant Thornton The fraud continued until the company’s massive collapse a decade later Parmalat then filed suit against Grant Thornton, alleging that the firm contributed to the collapse by conducting inadequate audits of the books in violation of Illinois tort law In response, Grant Thornton asserted the in pari delicto defense.

A prior federal court concluded that the application of this defense was a state law issue. The Seventh Circuit then ordered the case to be sent to Cook County, since it was uncertain that Illinois would follow the Cenco decision The Court explained that Cenco was not based on Illinois statutory or case law; instead, the federal court predicted how the Illinois Supreme Court would decide such a case

Truthfully, the practical application of the in pari delicto defense is complicated In particular, discerning whether a manager is committing fraud for the benefit versus the detriment of the corporation can be extremely difficult to assess For example, evidence that management received higher bonuses because of increased stock prices and profits may show that the fraud was committed against the corporation On the other hand, if the managers believed their conduct to be a short-term fix to solve the company’s financial problems, the court may decide that their actions benefited the corporation

The in pari delicto defense has been widely, but not universally, accepted. The defense is recognized in California, Delaware, New York and Pennsylvania, for example, but was rejected by New Jersey. The recent remand of Parmalat to Illinois state court provides Illinois jurists with the opportunity to cement the defense into Illinois law, and therefore further protect auditors unfortunate enough to perform audits on companies whose managers have committed fraud Stay tuned!

Brian J Hunt is the managing principal of The Hunt Law Group, LLC in Chicago He has been chosen as one of Chicago’s Top Lawyers and was chosen as one of Illinois’ Top Rated Lawyers His practice focuses on business litigation and the defense of corporations and individuals in the areas of construction, premises, transportation, product and professional liability Brian can be reached at bhunt@hunt-lawgroup.com or 312 384 2301

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What’s Google Glass done for you lately? Maybe more than you think. Take a look at six far out technologies changing the very nature of business.

By Mary E Morrison

The tech world moves at warp speed; categories, companies and products can rise or fall within the blink of an eye. Knowing which technologies will take hold and change the way we live and work is a bit of a guessing game, so we've asked two experts to sound off. With input from Randy Johnston, founder & CEO, Network Management Group Inc., and executive VP, K2 Enterprises, and Paul Edlund, Chief Technologist-Midwest at Microsoft Corp., we've compiled a list of six technologies that could have a big impact on finance professionals, businesspeople and consumers alike over the next five years.

ONE: The Internet of Things

You've likely heard about the Internet of Things the concept of giving everyday objects network connectivity so they can send and receive data But you'll hear even more about it over the next few years. In 2014, there were 3.9 billion connected devices being used in the United States, according to IT research firm Gartner, and by 2020 that number is expected to rise to a flabbergasting 25 billion Which begs the questions, what exactly will be connected, and how will it affect each and every one of us?

Connected objects in the home and office already exist. Take the Nest thermostat, which debuted three years ago and allows users t o c o n t r o l h e a t a n d a i r- c o n d i t i o n i n g l e v e l s f r o m t h e i r s m a r tphones which of course feeds the bottom line in terms of cutting waste and boosting efficiency In the coming years, expect to see more connected devices, from security systems to lighting to appliances; really, the sky's the limit "It gives you control of home and office from afar from a browser, from a mobile device, a tablet,"

Johnston explains

Next up, several automakers have announced plans to manufacture connected cars a segment of the larger Internet of Things category with enough computing power, sensors and Internet connectivity to optimize their own operation and maintenance, and guarantee the comfort and productivity of their passengers

The number of connected cars is expected to grow significantly more than sixfold to 152 million by 2020 according to IHS Automotive The future holds little escape from the office, it seems

The Internet of Things is truly paving the way for driverless cars, a development Johnston says could have important implications for businesses. Google's early driverless car has been well publicized, but other key players in the auto industry also are experimenting with the concept. “Driverless technology could allow UPS and other delivery companies to have human drivers focus their time on delivering packages instead of driving,” Johnston explains It all comes down to workforce productivity and the bottom line

TWO: Digital Assistants

Many smartphone users have access to a voice-enabled digital assistant such as Siri on iPhones, Google Now on Androids and Cortana on Microsoft's Windows phones While hardly without its glitches, functional development is improving rapidly, and greater user uptake is sure to follow

Cortana, for example, is included in Windows 10, the newest version of Microsoft's operating system, which means the digital assistant is available on PCs and tablets running the OS Cortana can be set up to deliver calendar appointments and notifications, run Web searches and find locally stored content

"Today you have all these applications a sea of apps but most people use six," Edlund explains. "What we'd rather be able to do is say, 'I want to buy a pair of pants,' and your digital assistant says, 'Okay, you can go to Walmart, it's right around the corner, or Amazon, which has them for cheap, but there's a store right around the corner that has them in your size, a little place that you like. You should go there,' and you never have to open an app "

Digital assistants have many obvious uses for consumers; you can ask them about the best place to buy a burrito for lunch, for example. But there also will be a number of business uses for them. "In the business world, we're going to be able to say, 'These are my marketing people, these are my HR people, this is my salesforce,’ and then I can target information to them as a company," says Edlund "People in accounting will care about CPA regulations, and they’ll be able to use Cortana to find that information for them When something new comes out, your digital assistant will say, 'You need to know about this,' and you'll never have to search it out "

The implications could be significant across industries. Doctors, f o r e x a m p l e , c o u l d u s e t h e d i g i t a l a s s i s t a n t t o p r i o r i t i z e t h e i r schedules according to the most urgent patients or by how much time a patient will need for treatment, Edlund explains IT departm e n t s c o u l d p r o g r a m t h e d i g i t a l a s s i s t a n t t o a n s w e r f r e q u e n t l y asked support questions, or to help employees analyze data with business intelligence software

THREE: 3D Printing

When people hear about 3D printing also called additive manufacturing many assume it's a fluff technology, something that will enable them to produce cheap tchotchkes at home. Yet 3D printing is in reality a complex and very promising ecosystem of technologies that could change most industries from manufacturing to life sciences in very significant ways "It's going to be a big deal," says Johnston. "3D is evolving to the point that you can print virtually anything."

He points to the 3D printing of entire homes, human skin and organ tissue, and airplane parts as examples In fact, GE already is using the technology to create fuel-nozzle tips for jet engines, and printed a complete engine over the past year

Last year Gartner forecast that although mainstream consumer adoption may be five to 10 years out, business and medical applications could see wider adoption in only two to five years. While 3D printing for prototyping is already in general use, we’ll see continued acceptance and use of 3D print creation software, 3D scanners and 3D printing service bureaus, says Gartner The 3D printing of medical devices, for example, will offer "life-altering" benefits and will result in global use of the technology for prosthetics and implants

H u r d l e s r e m a i n , J o h n s t o n c o n c e d e s , b u t r a p i d a d v a n c e s a r e making the widespread use of 3D printing a reality "The game around this is how fast can we get the printers to go," he explains. "You can print things up to about 10 meters by 30 meters in most materials today The biggest issues are speed, along with heat and toxins But this is becoming pretty interesting "

FOUR: Bigger Data

The term "Big Data" has been around for a while, but the gathering a

o g

o w i n t h e c o m i n g years. In addition to information about customers and prospects where they are, how they behave, what they're likely to do next more businesspeople will see data pertaining to them as individuals used in the workplace.

Users of Microsoft Windows 10, for example, will log onto the operating system using Windows Hello, the company's biometric

authentication technology that recognizes a user's fingerprint or facial features The technology uses a sensor whose camera and multi-array microphone can read depth and heat to identify an individual The result: More convenient and secure log-in "You walk up to your screen, it will say, 'Good morning,' and log you in automatically," Edlund explains. With a complementary technology Windows Passport users similarly will be able to log into websites that support Windows Hello

Other data about individual employees is increasingly being used throughout the workplace. Boston-based startup Humanyze, for example, has developed a system that combines wearable sensors and digital data to collect information about employee behavior The employee badge measures data points such as employee i n t e r a c t i o n s , t o n e o f v o i c e , a n d m o v e m e n t t h r o u g h o u t t h e d a y w i t h t h e g o a l o f i m p r o v i n g b u s i n e s s p e r f o r m a n c e H u m a n resources and financial management software from Pleasanton, Calif -based Workday Inc , meanwhile, is using data and analytics to predict factors such as which employees are likely to leave the company or exceed their budgets.

FIVE: Mapping Technology

Smartphone users are already very familiar with mapping technology that allows them to type in an address and easily pull up direct i o n s t o t h e i r d e s t i n a t i o n a l s o d e t e r m i n i n g , f o r e x a m p l e , h o w

blocked While this allows retailers to target shoppers with location-specific offers, the technology’s applications don’t end there O rg a n i z a t i o n s a r e t e s t i n g a n d u s i n g b e a c o n t e c h n o l o g y e x t e nsively Major League Baseball, for example, has put iBeacons in ballparks around the country

SIX: Wearables

Wearable technology has gotten a lot of press since the introduction of Google Glass’ optical head-mounted displays a few years ago Since then, Apple Watch and fitness- and health-tracking devices such as Fitbit and Jawbone have rolled out and gained a lot of user attention attention that will grow significantly in the coming years.

"Wearables of all kinds are going to be much bigger than people believe them to be," says Johnston "Some of the technologies are g

they're seeing things that they’re not "

Virtual reality headsets slated to roll out in the next year include Rift from Oculus VR (the company Facebook purchased last year), Morpheus from Sony, and products from Merge VR and HTC Vive While these virtual reality headsets are targeted, at least for now, a s e n t e r t a i n m e n t a n d g a m i n g d e v i c e s , M i c r o s o f t i s r o l l i n g o u t Hololens, an augmented reality headset that the company says will allow users to tackle productivity related tasks. Where virtual reality headsets show the user an entirely digital world, Hololens

Talking Tech ... Hear more from Randy Johnston at the upcoming Midwest Accounting & Finance Showcase, August 26-27, at the Donald E Stephens Convention Center in Rosemont, Ill Johnston’s “Tech Update” will guide you through the early adoption of cutting-edge technologies, while his session on “The Internet of Things” will show you how to deploy plans for connectivity, privacy, security and management

Also, Microsoft will be presenting a series of workshops (co-sponsored with Project Leadership Associates), which include:

n Microsoft Office Boot Camp Experience (pre-Show August 25)

n Boosting Your Business with Microsoft A Hands-on Experience

n Using Business Intelligence to Improve Decision-Making Skills

Find out more at www icpas org/show htm Or grab “The Show” insert in the center pages of this issue

long it will take them if they walk, drive or cycle, whether there's traffic, and more. But that's only the beginning, says Johnston. "Mapping technology will be used in lots of places we're not thinking about right now, specifically indoor mapping ”

The idea of indoor mapping is quickly gaining traction, with big t e c h p l a y e r s f o rg i n g a h e a d L a s t y e a r, f o r e x a m p l e , G o o g l e released indoor maps created with its new mapping tool, Cartographer Like the Google Trekker backpacks that collected images f o r G o o g l e M a p s ' " S t r e e t Vi e w, " C a r t o g r a p h e r b a c k p a c k s a r e equipped with mapping technology that generates floor plans and information as a wearer walks through buildings such as airports, museums and malls.

Meanwhile, beacon technology, including Apple's iBeacon, is p o i s e d t o c h a n g e t h e w a y p e o p l e n a v i g a t e t h e i r w a y t h r o u g h i n d o o r s p a c e s T h e s e s m a l l , l o w - c o s t p i e c e s o f h a r d w a r e e m i t B l u e t o o t h c o n n e c t i o n s t o t r a n s m i t m e s s a g e s , a l l o w i n g t h e m t o w o r k i n i n d o o r s p a c e s w h e r e G P S a n d c e l l s i g n a l s m i g h t b e

interprets the world around the user, identifying a nearby chair or whiteboard, for example, and then responding to voice commands by projecting images onto that whiteboard

"Imagine being able to say, 'I want to teach you what the heart does,' and you being able to step inside a heart and see not just t h e v a l v e s b u t g o i n t o t h e c a p i l l a r i e s a n d s t a n d i n s i d e t h e m , " Edlund explains

Businesspeople could use the Hololens for data visualization, he adds, demonstrating sales by state or by store or within a store. "Holograms initially will be whatever developers can envision," says Edlund "We provide the glue, but how that gets leveraged is up to the world "

Whether it's wearables and 3D printing or the Internet of Things and digital assistants, be on the lookout for big developments in the world of technology and therefore in the world in which you do business Google Glass? It just might be coming to an office near you

the psychology of fraud

A renewed focus on criminal profiling has put white-collar crime squarely in a limelight most perpetrators do their best to avoid

By Kristine Blenkhorn Rodriguez

It’s not easy to silence a room full of senior executives all too accustomed to holding the floor. But a few well-chosen phrases are usually all it takes, says Jim Ratley, president and CEO of the Associa t i o n o f C e r t i f i e d F r a u d E x a m i n e r s ( A C F E ) . Tr y “ a s s e t m i s a p p r o p r i a t i o n , ” “ c o r r u p t i o n c h a r g e s ” a n d “ f i n a n c i a l s t a t e m e n t f r a u d . ” T h a t ’ l l p r e t t y much do it.

When Ratley speaks to executives, they know the message won’t be pretty. No fraud is. But hearing the words usually only seen in screaming headlines and hearing them in the context of their own companies is a sobering experience to say the least. And even more sobering is the fact that 36 percent of frauds are committed by a member of management and 19 percent by an owner/executive. In other words, by their peers.

Ratley goes on to explain that white-collar criminals are most likely to be 31- to 45-year-old males, who have been with the company for more than five years If he’s a manager, he’s probably bilked the company out of $130,000 or so. If a higherlevel executive, the number soars to $500,000. And, says Ratley, you can place safe bets on him working in one of these departments: Operations, sales, finance/accounting, executive/upper management, customer service or purchasing.

A couple more sobering facts to chew on: Even when fraud is detected and acted upon, only 14 percent of victim organizations fully recover losses. And close to 60 percent may not recover much at all.

Frauds for the record books 5

The 21st Century began shakily with the likes of Enron, Bernie Madoff and Tyco destabilizing America’s faith in the corporate world and humanity in general However, they weren’t the only names on a now infamous list

1 . Wo r l d c o m W h e n t h e s e c o n d l a r g e s t l o n g- d i s t a n c e phone company in the United States filed for Chapter 11 in 2002, an internal audit report showed that it had been using fraudulent accounting methods to hide its financial decline. The company ’ s assets were inflated to the tune of about $11B, with $3 8B in fraudulent accounts

2 H e a l t h S o u t h C E O R i c h a r d S c r u s h y o r g a n i z e d a n d directed his team to come up with fictitious transactions and accounts that would boost the company ’ s earnings The fraud cost the company $1 4B, which was reported as earnings from 1996 to 2003 Scrushy almost got away with it thanks to an acquittal by a “ friendly ” Alabama jury But prosecutors kept at it and he was eventually convicted of bribery charges on June 2006

3 Global Crossing Global Crossing’s bankruptcy is considered one of the top 10 largest filings in American hist o r y To t a l a s s e t s r e p o r t e d w e r e $ 2 2 4 B, w i t h d e b t s a m o u n t i n g t o $ 1 2 4 B T h i s d e b t w a s a m a s s e d b y f o u r CEOs Each was given $23M in personal loans, which ultimately were forgiven.

4. Adelphia Communications Corp. This Pennsylvaniabased company was ranked as the fifth largest cable company in the United States before it filed for bankruptcy in 2002 due to internal corruption Adelphia incurred $2 3B in debt and its founders were charged with securities violations John and Timothy Rigas had created a complicated cash-management system where they diverted funds to other family owned entities They were sentenced to 15 to 20 years in prison, while five other officers were indicted

5 B e a r S t e a r n s Ra n k i n g a s o n e o f t h e l a r g e s t g l o b a l investment banks, securities -trading and brokerage firms in the world, Bearn Sterns was nearly bankrupt before it sold itself off to JP Morgan Chase for $2 a share, or $240M.

Despite all the technological advances influencing just how a fraud might be pulled off and detected, the act itself at its core remains the same, says Tim Voncina, a Chicago-based managing partner for RGL Forensics. “David Cressie’s fraud triangle still holds true today. The three prongs opportunity, motivation and rationalization are essentially the human bits that time and technology just don’t seem to change,” he explains.

Voncina works with everything from mom-and-pop shops to the Fortune 100 “Complacency happens in all of them,” he says “It’s usually a lack or breakdown of internal controls Maybe one person has more responsibility than is smart Or there’s not enough separation of duties But the one sure thing is greed takes over and that’s when the crime becomes identifiable ”

In 2009, agents with the FBI’s Behavioral Analysis Unit (BAU) began consulting with colleagues in New York who specialized in securities fraud detective work, essentially bringing a new angle to w h i t e - c o l l a r c r i m i n a l i n v e s t i g a t i o n s T h e B A U a g e n t s ’ p r o f i l i n g skills, which previously had focused solely on serial killers, have b e e n w i d e l y p o p u l a r i z e d i n c o u n t l e s s b o o k s , m o v i e s a n d T V shows, and are considered extremely useful in understanding what m a k e s f r a u d s t e r s t i c k . I n t h i s c a s e , a g e n t s w e r e b r o u g h t i n t o review FBI case files for Bernie Madoff and other convicted scamm e r s , i n c l u d i n g B a y o u G r o u p ' s S a m u e l I s r a e l , w h o s e $ 4 0 0 M hedge fund turned out to be a Ponzi scheme, and former Democratic fundraiser Hassan Nemazee, who stole nearly $300M from Citigroup and two other big banks

Despite their considerable contributions to fraud investigation work, Frank S Perri, a criminal trial attorney for over 20 years, believes that the behavioral profiling of white-collar offenders is still in its infancy “We are observing fraud offenders in management capacities; the behavioral traits that serve as fraud offender risk factors are at times the same traits they are rewarded for in organizations,” he explains He cautions that behavioral traits are not the cause of fraud but rather serve as identifiable risk factors that may indicate an increased probability of fraudulent activity.

“Part of the problem in understanding the fraud offender profile,” he explains, “is that people engage in projection bias to downplay the traits they observe in others, especially those individuals that they work with They assume that others share the same values as

Median loss in frauds committed by

n one person: $80K n two people: $200K

n three people: $355K n 4+ people: $500K+

they do in terms of integrity, and therefore it’s not conceivable that those close to them would engage in criminal activity.”

To o o f t e n p e o p l e e q u a t e c r i m i n a l i t y w i t h t h e w a y a p e r s o n looks, says Perri. “If someone doesn’t have the conventional look of a street-level criminal, then one is not a criminal Social psychological research has shown that people attribute qualities of integrity to those that display similar traits to their own, such as their level of education and their religious affiliation Yet there are plenty of examples such as Bernard Madoff, Andrew Fastow of Enron and a host of other high-level fraud offenders who didn’t display those street-level criminal looks. The question that isn’t asked is how do criminals think in a manner that is similar regardless of the crime they commit, be it white-collar crime or burglary? For a c c o u n t a n t s a n d o t h e r a n t i - f r a u d p r o f e s s i o n a l s , u n d e r s t a n d i n g how criminals think is an important element of why we maintain professional skepticism.”

Take David Colletti, a former marketing VP at MillerCoors, who was indicted in May of this year. Colletti worked for the company from 1982 to 2013, overseeing the marketing and sale of beer to restaurants and bars, according to the indictment filed in Chicago federal court He allegedly conspired with several others to falsely bill MillerCoors for fictitious promotional events and services, and s h a r e d t h e p a y o u t s w i t h h i s f e l l o w d e f e n d a n t s . T h e i n d i c t m e n t states that the defendants used proceeds to invest in a hotel and an arena football team.

“Take a look at the photos of this guy and most like him,” says Perri “You’d have him over for dinner, sit next to him in a meeting, and not once think he was involved in criminal activity ” Which is why, Perri explains, so many white-collar criminals are able to g e t a w a y w i t h f r a u d f o r m i l l i o n s o f d o l l a r s , w h i c h i s w h a t t h e indictment for Colletti and friends cites.

So what exactly are the personality traits that prevail among high-level fraud offenders? According to Perri, such individuals tend to be entitled (believing they should have access to resources regardless of the impact on others), exploitative, prone to rulebreaking and Machiavellian in their attitude (where the ends justify the means) These offenders move an organization to engage collectively in fraud by employing strategies such as manipulating the ‘tone at the top,’ relying on unquestioned obedience from sub-

ordinates, recruiting others who share their value system, removing those who don’t and punishing subordinates without cause. Other traits include a need for power, strong convictions and high self-confidence. On the flip side, being overly sensitive to criticism, having poor listening skills and lacking empathy for others are also indicators “These fraudsters may have illusions of infallibility, of not getting caught which is exactly why they usually are caught,” Perri explains WorldCom’s Bernard Ebbers, for one, had a reputation for being a micromanager who picked apart financial statements and yet told investigators he didn’t have enough knowledge of accounting t o b e a w a r e o f f r a u d ( t a l k a b o u t n o t a d d i n g u p ) T h e w o r d s o f forensic psychologist Robert Hare come to mind: “Not all psychopaths are in prison, some are in the boardroom ” Hare went on to say, “There are certainly more people in the business world who would score high in the psychopathic dimension than in the general population and you’ll find them in any organization where, by the nature of one’s position, you have power and control over other people and the opportunity to get something ”

Universities are just starting to offer degrees on the subject of w h i t e - c o l l a r c r i m e , m a i n l y a t t h e g r a d u a t e l e v e l P e r r i w i l l b e teaching such a course at DePaul University, Chicago, this fall

“There’s a great need for more specialists in fraud forensics,” says David Friedrichs, distinguished professor of sociology, crimin a l j u s t i c e a n d c r i m i n o l o g y a t t h e U n i v e r s i t y o f S c r a n t o n a n d author of several books on the subject He cites a new online program at Carlow University in Pittsburgh that provides a Masters in this discipline

While the programs are growing, the ability to cultivate professionals who know both the accounting/financial and psychological sides of the equation will be crucial in collectively saving companies trillions of dollars. Current average losses to fraud, in fact, amount to 5 percent of revenues each year

If we come full circle, back to where we began this article, we revisit a silent room Ratley has thrown some very sobering statistics at some very concerned executives Let’s just stay the room doesn’t remain silent for long Ratley says it’s a safe bet that money will be flowing towards fraud prevention and detection, at least in these companies, quite soon.

THE

FOREIGN FACTOR

International investments and exports could be the key to Illinois’ economic success.

By Carolyn Kmet

When you think about the global economy who leads, who trails, and where billions of dollars of goods and services are coming from Illinois probably doesn’t spring readily to mind. And yet, Illinois has the 19th largest economy in the world.

No.2: Chicago Metropolitan area U.S. ranking in attracting projects through foreign direct investment

In 2013, the state exported more than $65.8B of goods and services, and direct exports accounted for nearly 10 percent of gross state product, according to the Illinois Department of Commerce and Economic Opportunity (IDCEO) Looking at the foreign factor from a different angle, majority-owned U.S. affiliates of foreign firms employ more than 270,000 people in Illinois, which means continued export and foreign direct investment (FDI) are key to Illinois’ economic future.

“FDI is a big job generator for Illinois, and it’s also a big job retainer because of larger foreign companies locating their global corporate headquarters in Illinois,” says John DeBlasio, director of the Office of International Trade and Investment with the IDCEO. “The predominant flow of acquisition money is coming from large corporate money from around the world ”

According to a report released by SelectUSA, a federal initiative that promotes, facilitates and encourages business investment in the United States, almost 500 FDI projects have been announced in Illinois since 2003, representing $18 93B in capital investment

Why Illinois? For starters, the state offers a higher skilled labor force, a very strong transportation infrastructure, and an ecosystem around advanced manufacturing In fact, almost 40 percent of the 270,000-plus jobs created by foreign-owned companies are in the manufacturing sector

t a i n l y p r o v i d e s m u c h n e e d e d infusions of capital,” explains Donna Lubrano, an adjunct profess o r o f i n t e r n a t i o n a l b u s i n e s s . S h e a d d s t h a t F D I t y p i c a l l y s p u r s “sourcing of local vendors and suppliers, domestic innovation, and helps improve technology and manufacturing best practices ”

What’s more, Lubrano explains that a well-structured FDI package can provide small and minority business owners with new customers and revenue streams, and new opportunities to drive growth and profitability. The effects, theoretically, should ripple through the rest of the economy in the form of new jobs, increased disposable income, increased spending and, of course, increased tax revenue for the state

The IDCEO’s main goal, says DeBlasio, is to maintain Illinois as one of the top five destinations for FDI by identifying trends in the g l o b a l m a r k e t p l a c e “ We h a v e n ’t b e e n a s c o m p e t i t i v e a s o t h e r states. We don’t have as much of a presence doing targeted marketing around the world," he admits, "but we intend to do more of that because it will pay off in more jobs for Illinois For example, we have a very strong advanced manufacturing sector That sector matches up well with other advanced manufacturing clusters such as in the Midlands (UK), rural Germany and Northern Italy What we do is target median-sized businesses in those areas and then encourage them to build their U.S. presence here in Illinois.”

Another IDCEO strategy is to target and entice companies specifically in Illinois’ strongest sectors “Illinois has a very strong advanced manufacturing sector, an emerging tech sector, and a strong financial services sector, so we recruit businesses from around the world in those sectors to come here They’ll find more clients, easy access to suppliers, and the human capital is readily available,” says DeBlasio.

[IBM Global Location Trends 2012 Report]

It’s not just about bringing foreign companies to Illinois, though; it’s about getting Illinois companies to export their products and services With 80 percent of the world’s purchasing power existing outside the United States, economic growth in Illinois can benefit hugely from trade expansion

“Your market goes from 300 million Americans to 7 billion people around the world,” DeBlasio explains. “Illinois businesses tend to do business locally, but if they exported, they would have a much bigger pool to play in Expanding into Canada alone grows a business’ market potential by 10 percent ”

Since 2009, Illinois exports have increased by $24.2B, or 58 percent, outperforming the national average of 50 percent, according to the IDECO Brian Butler, director of the Illinois International Tr a d e C e n t e r a t N O R B I C / A l l i a n c e f o r I l l i n o i s M a n u f a c t u r i n g , attributes this, in part, to a recessionary economy in 2008 and 2009 that forced businesses to look for new markets

“When Illinois businesses export overseas, the state sees more r e v e n u e a n d i n c r e a s e d j o b c r e a t i o n , a n d b e c o m e s b e t t e r p o s it i o n e d t o c o m p e t e g l o b a l l y, ” B u t l e r e x p l a i n s , p o i n t i n g o u t t h a t exports support approximately 1 7 million jobs in Illinois, which has become the largest exporting state in the Midwest, and the fifth largest exporting state in the country

Even so, many Illinois businesses shy away from exporting “A lot of manufacturers are just afraid; exporting is kind of intimidating,” says Pam McDonough, president and CEO of the Alliance for Illinois Manufacturing

Indeed, a lack of experience in exports and international markets, a lack of access to trained personnel, and a lack of knowledge relating to how and where to get started are pretty big hurdles for businesses to get over

But hope isn't lost “Take advantage of low/no cost resources s u c h a s t h e 1 2 I l l i n o i s I n t e r n a t i o n a l Tr a d e C e n t e r s , t h e I l l i n o i s Overseas Trade and Investment Office, the Chicago Export Assistance Center and the International Business Council of the Illinois Chamber of Commerce. And then analyze the best countries for their particular products and services and attend local international trade presentations,” Butler advises

M c D o n o u g h a d d s t h a t t h e r e a r e m o r e r e s o u rc e s a v a i l a b l e t o companies looking to export than ever before. “For example, we walk businesses through an export readiness exercise and try to make them think strategically about what markets they should be in based on whether their competition is there, if it’s an emerging market, or if it’s a good fit,” McDonough explains She says grants are available to offset travel costs associated with trade missions, organizations exist specifically to help Illinois businesses identify and connect with in-country distributors, and tools are available to enable businesses to identify where their competitors are selling and what their transportation costs are

“We live in a global economy,” says McDonough. “If Illinois’ businesses and manufacturers don’t consider export opportunities, they’re missing out ”

Top 15 Foreign Firms With Employment in IL

Top 10 Countries for Illinois Exports

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2015-2016 Board of Directors

CHAIRPERSON

Edward J. Hannon, CPA, JD, LLM

Quarles & Brady LLP

VICE CHAIRPERSON

Scott D Steffens, CPA Grant Thornton LLP

SECRETARY

Lisa A Har tkopf, CPA Ernst & Young LLP

TREASURER

Margaret M Hunn, CPA, CFE, CFF Rozovics Group PC

IMMEDIATE PAST CHAIRPERSON

Daniel F Rahill, CPA, JD, LLM FGMK LLC

DIRECTORS

Brent A. Baccus, CPA

Washington P ttman & McKeever, LLC

Terr y A. Bishop, CPA Sikich LLP

Jared J. Bourgeois, CPA/ABV, CFE, CFF PricewaterhouseCoopers LLP

Rosaria (Rose) Cammarata, CPA CME Group Inc

Jon S Davis University of Ill nois at Urbana

Rose G Doher ty, CPA Legacy Professionals LLP

Eileen M Felson, CPA, CFF PricewaterhouseCoopers LLP

Gar y S Har t, CPA, MBA

Gar y Har t & Associates Ltd

Jonathan W Hauser, CPA KPMG LLP

David V. Kalet, CPA, MBA

BP Products Nor th America

Thomas B Mur tagh, CPA, JD BKD, LLP

Elizabeth S Pittelkow, CPA, CITP, CGMA

ArrowStream Inc

Kelly Richmond Pope, Ph D , CPA

DePaul Univers ty

Kevin V Wydra, CPA Crowe Hor wath LLP

Chapter Presidents

CENTRAL CHAPTER

Amanda L Gavin Caterpillar Inc

CHICAGO METRO

David Nolan

National Life Insurance Company

CHICAGO SOUTH

Cynthia A Quigley

Accenture p c

FOX RIVER TRAIL

Barrett R Peterson

TTX Company

FOX VALLEY

Michael N Radencich

Trimarco Radencich

NORTH SHORE

Bur ton W Goode

Bur ton W Goode, CPA

NORTHERN

Jakob J. Thompson

Benn ng Group LLC

O’HARE

Car y J. Hedrick

CGFS, Inc

WESTERN

John T. Kustes

American Bank & Trust Company, NA

Committee Chairs

ACCOUNTING PRINCIPLES

Scott G. Lehman

Crowe Hor wath LLP

Ryan Brady*

Grant Thornton LLP

AUDIT & ASSURANCE SERVICES

Elizabeth J Sloan

Grant Thornton LLP

James R Javorcic*

CBIZ / Mayer Hof fman

McCann P C

EMPLOYEE BENEFIT PL ANS

Kathy Musial

BIK & Company LLP

ETHICS

Gar y Kemnitz

Borhar t Spellmeyer & Co

Larr y Hor wich*

Hor wich Coleman Levin LLC

FINANCIAL & TREASURY

MANAGEMENT

Peggy Hunn Rozovics Group LLP

GOVERNMENTAL ACCOUNTING

EXECUTIVE

Kent Oliven

Vil age of Als p

The Illinois CPA Society applauds its outstanding volunteer leaders. Their tireless dedication and contributions help elevate the Society as the premier organization for CPAs and finance professionals.

GOVERNMENTAL REPORT REVIEW

Patrick C. McCar thy

O Connor, Brooks & Co CPA s

NOMINATING

Daniel F Rahill FGMK, LLC

NOT-FOR-PROFIT ORGANIZATIONS

Howard I Blumstein BDO USA, LLP

PEER REVIEW REPORT

ACCEPTANCE

Rober t Giblichman Warady & Davis LLP

SCHOL ARSHIP SELECTION

Kent Klaus Deloitte Tax LLP

TAX ADVISORY GROUP

Geoff Harlow Kessler, Orlean, Silver & Co, PC

TAXATION BUSINESS

Mark W Wolfgram

Bel Brands USA

TAXATION ESTATE, GIFT AND TRUST

Jeff Conrad BKD, LLP

TAXATION EXECUTIVE

Jeff Rozovics Rozovics Group LLP

TAXATION FLOW-THROUGH

ENTITIES

Andrew Klemens BKD, LLP

TAXATION INDIVIDUAL

Kathy Howe-Hrach

TAXATION INTERNATIONAL

David M. Henderson

Duggan Ber tsch, LLC

TAXATION PRACTICE & PROCEDURES

Brian A Daly

Bottom Line Solut ons Ltd

TAXATION STATE & LOCAL

JoAnna F. Simek BKD LLP

WOMEN S CONNECTIONS

Andrea Gonzalez

A varez & Marsal Globa Forensic & Dispute Ser vices, LLC

WOMEN S EXECUTIVE

Kim Rice

R&M Consu ting LLC

Conference Planning

Task Force Chairs

ACCOUNTING & AUDITING

Scott G Lehman

Crowe Hor wath LLP

ADVANCED TOPICS IN FLOW-

THROUGH TAXATION

Jeffrey Butler

Kess er, Orlean, Si ver & Co, PC

CONSTRUCTION

James Bianchi Crowe Hor wath LLP

EMPLOYEE BENEFITS FALL

Brent DeMay Sikich LLP

EMPLOYEE BENEFITS SPRING

David Kot BKD, LLP

ESTATE & GIFT TAX

Michael Deering Mower y & Schoenfeld LLC

FINANCIAL INSTITUTIONS

Brian Blaha Wipf i LLP

FRAUD AND FORENSIC SYMPOSIUM

Kenneth B Mathieu

Pr cewaterhouseCoopers LLP

GOVERNMENT

Ir win A Lyons

Miller Cooper & Company Ltd

HEALTHCARE COMPLIANCE & FRAUD

Howard L Stone Stone, McGuire & Siegel, PC

MIDWEST FINANCIAL REPORTING

SYMPOSIUM

David L Landsittel

David L Landsittel, CPA

NOT-FOR-PROFIT ADVANCED AND EMERGING ACCOUNTING AND A-133 ISSUES

Charlotte Montgomer y Illinois State Museum

Brian Zygmunt

Crowe Hor wath LLP

NOT-FOR-PROFIT ROSEMONT

Rebekuh Eley BDO USA, LLP

NOT-FOR-PROFIT SPRINGFIELD

Kim Michael-Lee Illinois Medical District Commission

PERSONAL FINANCIAL PL ANNING

Elizabeth Buffardi

Brian Kearns

Morgan Stanley Wealth

Management

STATE & LOCAL TAX

David Blum

Levenfeld Pearlstein

TAX PRACTICE & PROCEDURES

Michael Singer

Michael J Singer & Co , P C

TAXATION ON REAL ESTATE

Douglas Har t DAD Associates LLC

Member Forum Group Chairs

FUTURES SECURITIES & DERIVATIVES

Vincent A Cur ttright McGladrey LLP

INVESTMENT ADVISORY SERVICES/PFP

Elizabeth Buffardi

Brian Kearns

Morgan Stanley Wealth Management

NOT-FOR-PROFIT

Raymond S Naegele Medical Librar y Association

Task Force Chairs

COMMITTEE, STRUCTURE & VOLUNTEERISM ADVISORY

Mark Gilber t Reason Financial Advisors Inc

CPA EXAM AWARD PROGRAM

Debbie Rood CNA Financial Corp

LEGISL ATORS TAX GUIDE

Victor Scimeca V ctor V Scimeca, CPA

LIFETIME ACHIEVEMENT AWARD

Daniel F Rahill FGMK, LLC

OUTSTANDING EDUCATOR AWARD

Jason Parish Plante Moran, PLLC

OUTSTANDING LEADERSHIP IN ADVANCING DIVERSIT Y AWARD

Pedro Diaz de Leon InnerWorkings Inc

YOUNG LEADERS ADVISORY

Megan Angle Por te Brown LLC

Damien Mar tin BKD, LLP

YOUNG PROFESSIONALS GROUP

Mar trice Caldwell

YMCA of Metropo itan Chicago

Timothy Bellazzini Sikich LLP

YOUNG PROFESSIONALS LEADERSHIP AWARD

Mike Maffei

GATX Corporation

*Vice Chair

Marty Green, Esq. ICPAS VP of Government Relations, greenm@icpas org

capitolReport

OUR MAN IN SPRINGFIELD REPORTS ON THE LATEST LEGISLATION {Follow us on Twitter @IllinoisCPA}

The Year of the CPA

now is the time to renew your cpa license.

2015

is a renewal year, and over 21,000 licensed CPAs, 22,000 registered CPAs, and 800 CPA firms are expected to re-up their respective licenses and registrations with the Illinois Department of Financial and Professional Regulation (IDFPR). Last year, Illinois CPA Society leaders began meeting with the director of the Division of Professional Regulation and staff to talk about improving the renewal process Here are some insights to guide you

Postcards Be on the lookout for a yellow renewal postcard from the IDFPR 60 to 90 days before the September 30 expiration of your current CPA license or registration. Check your current mailing address is on file at www idfpr com/applications/LicenseReprint The postcard will include an individualized PIN number along with online renewal instructions For those who prefer not to renew online, the IDFPR will mail formal renewal packets about a month later.

CPE Licensed CPAs must verify that they’ve completed 120 hours of CPE (including 4 hours of ethics) and pay a $120 renewal fee Rules implemented in 2012 allow licensees to combine verifiable and unverifiable credit hours to satisfy this requirement [visit www icpas org/licensing-registration.htm for more information]. Registered and Licensed CPAs renewing for the first time are exempt from the CPE requirements, but must pay their respective $90 and $120 dues

Peer Review CPA firms and sole practitioners performing audits and/or reviews of historical finance statements and/or examinations of prospective financial statements must undergo a peer review every three years as a condition for license renewal. However, licensees who are members of a firm are not subject to peer review; rather, the firm is, so check in with your firm’s compliance official

Partners CPA firm licenses expire on November 30, 2015

In order to renew a firm’s license, all firm partner licenses must be up-to-date and in good standing It’s a good idea for a managing partner or compliance official to closely monitor all renewals before the firm application is submitted Firm renewal dues are $120 for a three-year period While firm renewals traditionally have involved a paper application mailed to the firm, we anticipate that automated options may be made available. We continue to work with the IDFPR on this.

ICPAS Resources

To help guide you, the ICPAS will be hosting a webinar with guests from the IDFPR, and provides resources online at www icpas org/licensing htm While we’re working closely with the IDFPR to ensure a seamless process, we still encourage you to start on things early. There are no renewal deadline extensions, and performing accountancy activities while holding yourself out as a CPA after your license expires is a violation of the Illinois Public Accounting Act, and therefore subject to discipline Definitely get yourself ahead of the renewal game!

The CPA Endowment Fund of Illinois thanks our generous donors for their annual contribution or pledge. You make a tremendous impact on the lives of hundreds of future CPAs every year with support for tuition, textbooks, the CPA exam, and more. For more information on how you can lend your support visit www.icpas.org/annualfund.htm.

April 1, 2014 - March 31, 2015

President’s Pavers

$25,000 AND UP

Grant Thornton LLP

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$10,000-$24,999

Crowe Horwath LLP

Ernst & Young LLP

Roger Hopkins

Edilberto and Carmelita Ortiz

PricewaterhouseCoopers LLP

Scott and Kelly Steffens

Ernest Wish

$5,000-$9,999

Anonymous

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$1,000-$4,999

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Jo Ann Beck

LeMonte Booker

BP Foundation, Inc.

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CNA Foundation

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Wayne and Jan Ebersberger

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Follett Corporation

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Helmuth Family Foundation

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Charitable Foundation

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Roxanne Martino

James Maurer

Sara Mikuta

Miller Cooper & Co. Ltd.

Elizabeth Murphy

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Richard Price

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Washington, Pittman & McKeever LLC

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Wipfli Foundation, Inc.

Lawrence and Nancy Wojcik

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$500-$999

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Erwin Ortiz

Gilda Priebe

Melody Ragan

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John Rogers

Shannon Marie Stewart

Marites Sy

Jerry Turner

$250-$499

Maria Fides Balita

Leanne Berry

Genevieve Burns

M. David Cain, Sr.

Martrice Caldwell

Dugan & Lopatka, CPAs

Amy Egelston

Kimi Ellen

Eileen Felson

F. Cornell Fubler

Craig Funkhouser

Carl George

Robert Giblichman

Gilson Labus & Silverman LLC

Peter and Natasha Granholm

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Harvey Coustan LLC

Eileen Iles

Jerry Jacks

Trudie Kanter

Wendy Kelly

Gary Kemnitz

Norma Lauder

Craig Mason

Ilaria Mocciaro

Shawn Nowakowski

Kenneth Posner

Elizabeth Roghair

Rozovics Group LLP

Warren Stippich, Jr.

Gerard Swick

Joan Waggoner

Monica Walker

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UP TO $249 Anonymous (27)

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Scott Catlett

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Mark Cleary

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Mary Collins

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Abbie Davidson

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Barbara Dennison

Susan Dewulf

Jim Dickey

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Paul Lau

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George Stewart

John Stuckey

Joyce Sullivan

Peter Sullivan

Stephen Sutton

Mitsue Suzuki

Swarztrauber & Co.

Max Sweeney

Kimberley Szalkus

Abigail Szymonik

Michael Tadla

William Taylor

Thomas Theis

Lisa Tillman

James Vargo

Jason Vavrik

Gail Vos

Amy Waldron

Jaimie Weihrich

Annette Welsh-Kastner

Michael Wenzel

Sandra White

Jay Wilensky

Judy Wilk

Kelly Willett

Richard Winer

Thomas Winkler

John Winquist

Glenn and Marcia Wojnowiak

Theresia Wolf-McKenzie

Todd and Deanna Wrenn

Doyoung Yong

Anthony Zordan