CPA Report 1Q2011

First Edition 20 1 1

CPA Report South Carolina Association of Certified Public Accountants

TAX Season 2011 • IRS/DOR Meeting Report • 2010 Tax Act Overview

PLUS • Meet SCACPA’s 2011 President • CPAs of the Future

Charleston

2430 Mall Drive, Suite 360

Greenville

843-884-3912

Charleston, SC 29406

864-245-8788

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South Carolina CPA Report

www.american-pensions.com

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CPA Report South Carolina Association of CPAs

South Carolina Association of Certified Public Accountants Magazine Volume 41, First Edition 2011 OFFICERS Timothy L. Baker, CPA, President Michael R. Putich, CPA, President Elect Sharon E. Mann, CPA, Vice President Malynda M. Grimsley, CPA, Secretary-Treasurer Charles E. “Eddie” Brown, CPA, Past President BOARD OF DIRECTORS William R. Barefoot, CPA Patrick P. Carey Jr., CPA Clarence Coleman Jr., CPA, Ph.D. Mark S. Crocker, CPA Alys Anne Dennis, CPA J. Bratton Fennell, CPA Cheryl O. Lang, CPA Penny A. Lewis, CPA A.D. “Dave” Masters, CPA J. Patrick McDermott, CPA James W. McIlrath, CPA Philip R. Snipes, CPA Michael J. Targia, CPA, CFA Robert M. Tilton, CPA Beth T. Zamorski, CPA EXECUTIVE DIRECTOR Erin P. Hardwick, CAE MANAGING EDITOR Allison K. Caldwell GRAPHIC DESIGNER Lisa S. McGee CONTRIBUTING WRITERS Charles M. Ayers, CPA Reva Brennan, MPA, CAE, IOM Neil A. Brown, CPA, MAcc, CFP® Allison Caldwell Amanda Colgate, CPA Erin P. Hardwick, CAE Mark T. Hobbs, CPA Jennifer R. MacLeod, J.D., LL.M Steven E. Miller, CPA 2011 EDITORIAL BOARD Charles E. Alvis, CPA, MPA, MBA, Chair Ellen K. Adkins, CPA, MBA John B. Brantley, CPA Neil A. Brown, CPA, MAcc, CFP Amanda S. Colgate, CPA Lisa S. Cooke, CPA Erin P. Hardwick, CAE Karen A. Hursey, CPA Lesley H. Kelly, CPA Margaret L. Lattimore, CPA Marsha G. LePhew, CPA Anthony G. Masino, CPA A. D. “Dave” Masters, CPA Derrick B. Stark, CPA Catherine B. Stoddard, CPA Victor C. Webster, CPA, MBA

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Special Tax Section 14 16 17

IRS/DOR Meeting Report Federal Tax Conference Wrap-Up 2010 Tax Act Overview

In This Issue 4 10 16 20 29

Meet the President CPAs of the Future 2010 Fall Conference Wrap-Up 2010 Award Recipients Young CPAs: 2010 Leadership Academy

In Every Issue 6 8 25 26 27 28 30 34

Association News On Your Behalf Board of Accountancy News Member News Welcome New Members Chapter Connections Upcoming CPE Classifieds/Advertiser Index

Statements of fact and opinion are made by the authors alone and do not imply an opinion on the part of the officers or members of the SCACPA. Advertising rates will be furnished on request to SCACPA, 570 Chris Drive, West Columbia, SC 29169, (803) 791-4181. Publication of an advertisement in The CPA Report does not constitute an endorsement of the product or service by The CPA Report or the SCACPA. South Carolina CPA Report

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An Interview with SCACPA’s 2011 President Compiled by Allison Caldwell

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new year brings new leadership for SCACPA, and Tim Baker assumed his role as president

on January 1. With 17 years of active membership under his belt, Tim looks forward to leading the Association to a new level of collaboration and value for its 4,000 members. Look for his regular column in subsequent issues—for now, it's time to get crackin’ and meet your new president!

SCACPA INVOLVEMENT: SCACPA Board, IT Committee, Finance Committee, Audit Committee, Investment Committee HOMETOWN: Wagener, SC FAVORITE BOOK: The Goal by Eli Goldratt FAVORITE MOVIE: The World’s Fastest Indian with Anthony Hopkins FAVORITE HOBBIES: Spending time with family, kayaking, grilling and riding his Harley FAMILY: Wife Kim (married for 25 years, Engineer); son Jonathon (age 19, Materials Science and Engineering major at Clemson University); daughter Jackie (age 16, student at Aiken High School)

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Timothy L. Baker, CPA, CITP, CMA SCACPA member since 1994

(888) 557-4814 | www.scacpa.org

SCACPA: Briefly describe your experience as a CPA: why or how you first chose the profession, past and current area of practice/firm info, and how and why you first became involved with SCACPA. BAKER: I became interested in accounting when returning to college as a non-traditional student. I had several members that mentored me, including SCACPA member Don Martin. I selected accounting as a major, and co-oped as a student at Wade and Company (now Elliott Davis). My current occupation is managing ERP system implementations for small and mid-sized businesses ($10 million to 500 million) and is very enjoyable. I frequently work with clients with reporting needs and issues, understanding of controls, as well as designing systems beyond the financials area. I’ve recently had the opportunity to work with clients on such diverse topics as interfacing with a manufacturing machine control system, EDI, and integration with a client’s Web stores.

I first became involved with SCACPA at the request of Donny Burkett, one of our past presidents and a great friend.

Donny called me and asked what I was going to do to participate in SCACPA since I was now a member. I started with the IT Committee and went from there.

advancement and their help, I would not have accomplished what has been done.

SCACPA: Some have heard the “get crackin’” story from last year’s board retreat (and now we’ve all seen the pictures)—what are some of your goals as SCACPA president in 2011?

BAKER: SCACPA’s goals for 2011 are as follows: 1) CPE Delivery & Marketing: Making SCACPA’s CPE programming high quality and competitive, taking into consideration the market, delivery method, cost structure, content and sales. ng & 2) Communication, Marketing Branding: Ensuring that SCACPA’s messaging is current, engaging and, most of all, effective.

3) Profession Advocacy: Being more proactive in creating a voice for South Carolina CPAs in standard-setting, regulation writing and law creation. ag4) Young Professionals: Engaging CPA candidates, new licensees and young CPAs. nce 5) Association and Governance Structure: Reviewing and b evaluating how SCACPA best meets the needs of its members.

SCACPA: You’re a successful business owner and entrepreneur. From the CPA’s perspective, share how you moved from more “traditional” practice into what you do today. What do you enjoy most about your job?

SCACPA: To date, what aboutt SCACPA involvement has been the most meaningful or impactful—to you personally, ip and perhaps to the membership at large?

BAKER: The opportunities to get where I am today were afforded to me by some of the great CPAs I’ve had the pleasure to work with and for. Without their leadership, opportunities for growth and

BAKER: The ability to work with mvarious task forces to see the imcularpact they have. It’s been particularion ly interesting to see the evolution ome of the Association as it has become

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more and more involved in legislative advocacy, and hearing from our members how important that involvement has been.

SCACPA: Fast forward to this time next year. If you could choose just one thing to accomplish, create or improve during your tenure, what would it be?

BAKER: To make sure that the chapters and SCACPA are working together to better serve our members. This is so important that we have established a task force to study this issue.

South Carolina CPA Report

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ASSOCIATION NEWS 2010 Scholarship Recipients Announced

Call for KPCs

Education Fund trustees proudly awarded $19,500 in named scholarships to 20 accounting students at the 2010 Annual CPA Summit in Columbia.

Congratulations to all! Staff contact: Glenna Minor

Many new legislators took office in January, and it’s vital that SCACPA have members willing to serve as key person contacts (KPCs) when crucial issues come before our state or national lawmakers.

If you have a personal or business relationship, casual acquaintance with or simply live or work in the district of any of those listed below, please consider joining our valuable KPC program. Staff contact: Glenna Minor

Emily Azzara - USC, Upstate Ray Waters Scholarship, $1500 Brett Barton - Clemson University 2010 Graduate Student of the Year, $2000 Patrick Beasley - Winthrop University Burch Oxner Scholarship, $500

Charlton Jacobs - Winthrop University SCACPA Sea Island Chapter Scholarship, $500 Maggie Lin - USC, Columbia WebsterRogers LLP Scholarship, $500 Anna Millwood - Limestone College Burkett Burkett Burkett Scholarship, $500

Laura Causey - USC, Columbia SCACPA Central Chapter Scholarship, $2500

Danielle Richards - USC, Columbia Global Tax Services, Inc. Scholarship, $500

Matthew Cason Collier - The Citadel Robinson Grant Scholarship, $500

Eric Rogers - USC, Columbia C.C. McGregor Scholarship, $500

April Cook - SC State University Sheheen Hancock Scholarship, $500

Laurin Rogers - USC, Columbia Joe Jackson Scholarship, $2500

Michael Depp - USC, Upstate SCACPA Scholarship, $500

Corey Swaim - Furman University Lollie Harper Scholarship, $1000

Allison Dobbs - USC, Columbia Edgar Vaughn Scholarship, $500

Brittany Washington - USC, Columbia SCACPA Coastal Chapter Scholarship, $500

Ian Ferguson - Bob Jones University SCACPA Piedmont Chapter Scholarship, $1000

Delbert White - College of Charleston Past Presidents Scholarship, $1500

Zakkary Hill - College of Charleston Kaye Carter Scholarship, $1500

Nichole Woodard - College of Charleston Brigman Holcomb Weeks Scholarship, $500

New Central Chapter Scholarship Announced 2011-2012 Scholarship Applications The Central Chapter of SCACPA recently announced a second endowed $2500 scholarship for graduate students who meet the following criteria: • SC resident • Attending a South Carolina college or university • GPA of no less than 3.25 overall (on a 4.0 scale) • GPA in accounting no less than 3.5 (on a 4.0 scale) Central Chapter members already support a similar scholarship for rising junior or senior accounting majors who meet the same criteria. These and other 2011-2012 scholarship applications are now available at www.scacpa.org/scholarships. The deadline to apply is June 1, 2011.

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South Carolina CPA Report

Freshmen members of the S.C. House of Representatives: Todd Atwater, Lexington Co.; Eric Bikas, Pickens Co.; Doug Brannon, Spartanburg Co.; Mia Butler Garrick, Richland Co.; Bill Chumley, Spartanburg Co.; Tom Corbin, Greenville Co.; Bill Crosby, Charleston Co.; Bill Hixon, Aiken Co.; Peter McCoy, Jr., Charleston Co.; Elizabeth Munnerlyn, Marlboro Co.; Chris Murphy, Dorchester Co.; Andy Patrick, Beaufort Co.; Tommy Pope, York Co.; Rick Quinn, Jr., Lexington Co.; Kevin Ryan, Georgetown Co.; Ronnie Sabb, Williamsburg Co.; Eddie Tallon, Spartanburg Co.; Bill Taylor, Aiken Co.; Anne Johnston Thayer, Anderson Co.; David Tribble, Jr., Laurens Co. Freshmen members of the U.S. House of Representatives: Tim Scott, First District (Berkeley, Charleston, Dorchester, Georgetown and Horry counties); Jeff Duncan, Third District (Abbeville, Aiken, Anderson, Edgefield, Greenwood, Laurens, McCormick, Oconee, Pickens and Saluda counties); Trey Gowdy, Fourth District (Greenville, Laurens, Spartanburg and Union counties); Mick Mulvaney, Fifth District (Cherokee, Chester, Chesterfield, Darlington, Dillon, Fairfield, Florence, Kershaw, Lancaster, Lee, Marlboro, Newberry, Sumter and York counties) (888) 557-4814 | www.scacpa.org

2010 South Carolina Women to Watch Four CPAs recently received the Women to Watch Award, cosponsored by SCACPA and the Women’s Initiatives Executive Committee of the AICPA. The program highlights the accomplishments of women in the CPA profession in two categories: Experienced Leaders and Emerging Leaders. Recipients were honored at SCACPA’s Women in Leadership Conference in October, hosted by then-President Eddie Brown and Executive Director Erin Hardwick. SCACPA is proud to congratulate our 2010 South Carolina Women to Watch! Visit www.scacpa. org/Women2Watch for more information. Staff contact: Reva Brennan EXPERIENCED LEADERS: Susan M. Douglas, CPA Vice President of Finance Terminix Service, Inc.

EMERGING LEADERS: Deborah S. McDonough, CPA Senior Manager Elliott Davis, LLC

Tricia Wilson, CPA, ABV, CDFA, CVA Member-in-Charge Dixon Hughes, PLLC

Sarah L. Windham, CPA Senior Tax Manager Dixon Hughes, PLLC

SAVE THE DATE! CPA Day at the State House Wednesday, May 4, 2011 A vital but often unnoticed benefit of membership is SCACPA’s never-ending work to advocate for you and for the profession at the state legislature. Your involvement gives our efforts more impact. Make plans now to participate in the sixth annual CPA Day at the State House event on Wednesday, May 4 in Columbia. The day’s agenda provides opportunities to learn about current state legislative issues and how to communicate effectively with your legislator during a two-hour CPE; connect with other CPAs who also value the important role we play in the political process; and visit with your local legislator and invite them to join our group for lunch that day.

Visit www.scacpa.org/cpaday2011 for more information.

Staff contact: Erin Hardwick

SOUTH CAROLINA ASSOCIATION OF CPAs 570 Chris Drive, West Columbia, South Carolina 29169 (803) 791-4181 or Toll-free (888) 557-4814 Fax (803) 791-4196 | www.SCACPA.org

OUR MISSION To support all CPAs – whether in public practice, industry, government or education – with lifelong learning opportunities necessary for their success and to promote high ethical standards and legislative advocacy for both the public good and the profession. We accomplish this mission through the following activities: Advocacy Certification & Licensing Communications

Recruiting & Education Standards & Performance

SCACPA STAFF Erin P. Hardwick, CAE, Executive Director Ext. 104, ehardwick@scacpa.org Reva E. Brennan, MPA, CAE, IOM, Associate Director Ext. 103, rbrennan@scacpa.org Karen M. Hancock, CPA, Finance Director Ext. 108, khancock@scacpa.org Glenna P. Minor, Peer Review & Member Services Manager Ext. 107, gminor@scacpa.org April C. Cox, Education Manager Ext. 110, acox@scacpa.org

2011 Dues Renewal Trusted resources, quality CPE, legislative advocacy, peer review and statewide networking with like-minded professionals—SCACPA provides all this and more, but not without your involvement and support. By renewing your membership, you enable us to do what we do best so that you can do the same. Working together, we’ll all be more successful. Dues renewal is quick and easy at www.scacpa.org. Just log in to your account, go to “My Membership” and click “Renew” to pay dues for yourself or an entire firm or company. We look forward to partnering with you again this year! Staff contacts: April Blake, Karen Hancock

(888) 557-4814 | www.scacpa.org

Emily M. Allen, Communications Coordinator Ext. 106, eallen@scacpa.org Sandra P. Oxner, CMP, CMMM, Chapter & Member Events Coordinator Ext. 112, soxner@scacpa.org April Blake, Office and Member Services Coordinator Ext. 100, ablake@scacpa.org

South Carolina CPA Report

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“We served an important segment of our membership by providing group health insurance for more than a decade,” said President Tim Baker. “The premium rates for this plan are no longer competitive and as such many members can find more affordable coverage elsewhere. We truly regret any hardship this has placed on members in the program, particularly the sole proprietors.”

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The SCACPA board of directors met October 29, 2010 in Columbia. During the meeting the chairman of our Member Benefits Committee reported on the status of SCACPA’s longheld medical insurance plan. Over time, market forces have had an adverse effect on the plan and as a result plan participants faced hefty premium increases for 2011. It is feasible that the plan may cease to exist by 2012.

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For the profession, by the profession—that’s what the South Carolina Association of CPAs is all about. SCACPA’s board of directors, committees and task forces and Young CPAs Leadership Cabinet are hard at work making decisions, providing guidance and embarking on projects and programs that strengthen the profession and enable members to improve their knowledge, network and technical skills.

Fourth Quarter Report

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Select Highlights: Committee and Other Activities New, different or unusual outcomes from committees in 2010 X Accounting Educators held Web-based committee meetings to plan the Accounting Educators Forum X Awards adopted a new scoring methodology for choosing among the many quality applications they receive X Continuing Professional Education created and offered two new conferences, each which was well-attended— the Nonprofit Conference, held in partnership with the S.C. Association of Nonprofit Organizations, and the Women in Leadership and Awards Recognition Conference X Corporate Sustainability offered 10 presentations statewide as a primer and was featured in the 3Q issue of The South Carolina CPA Report X CPA Day at the State House hosted a luncheon for over 500 CPAs, state legislators and their staff on the State House grounds X CPA Summit held a second annual event offering participants a menu of 24 different sessions and 16 hours of CPE X Editorial Board produced first-ever issue of the CPA Report magazine with 100 percent locally-generated content X Education Fund awarded $19,500 in scholarships to 20 accounting students from a more diverse group of schools than ever before—six of the 20 recipients were Grad students, and one was earning his second degree

Attending the fall 2010 meeting of CPA SEA’s leadership conference are Barry Melancon, CEO of AICPA, Tim Baker, then president-elect of SCACPA, Erin Hardwick, executive director of SCACPA and Greg Anton of Colorado, AICPA board chair-elect

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X Financial Literacy launched its Project GED program— connecting CPAs with local GED classes to present on savings, credit and other important financial basics and reaching some 360 students in four counties

(888) 557-4814 | www.scacpa.org

X Legislative/Advocacy testified before and monitored work of the state Tax Realignment Commission, facilitated the passage of stand-alone tax conformity legislation in March 2010, and led efforts to support legislation which would have garnered operational independence for the state Board of Accountancy X Managing Partners hosted AICPA Chairman Paul Stahlin for an interactive breakfast meeting attended by 30 managing partners from across the state X Political Action Committee contributed $37,000 to 55 candidates for state office on behalf of the CPA profession in South Carolina X Professional Issues Updates hosted 820 CPAs with nine events and four webcasts X Technical Standards planned the most well-attended Accounting and Auditing Conference SCACPA has held thus far, with some 230 CPAs attending X Young CPAs Cabinet planned its first full year of programming to include its inaugural Emerging Leaders Conference

For information on the board of directors or legislative activity, contact Erin P. Hardwick, CAE, ehardwick@scacpa.org.

Erin P. Hardwick, CAE has served as SCACPA’s executive director since 2005. She has more than 25 years of experience in association and non-profit executive leadership and is one of 18 Certified Association Executives in South Carolina, the highest credential in the association management profession. She currently serves on the SC Secretary of State’s Nonprofit Advisory Council, and the SC Council on Economic Education Board of Directors.

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following for thei their SCACPA iis pleased lea ed to recognize e o i e the follo i iindividuals di idual fo dedication and service to the CPA profession. Lifetime members are given complimentary SCACPA membership dues upon 30 years of membership and age of 68 or older.

William F. Bodie, CPA William F. Bodie, CPA Lugoff, SC

Channing S. Joye, CPA M-J-M Management Company, Inc Columbia, SC

K. Brodie Brigman Jr., CPA Anderson, SC

Jerry L. Killen, CPA Killen & Associates, CPAs, PA Charleston, SC

Joseph D. Cordray Jr., CPA J. D. Cordray, Jr., CPA Charleston, SC George L. Counts Jr., CPA Greenville, SC Larry D. French, CPA Larry D. French, CPA Rock Hill, SC Milton E. Futch Sr., CPA Statesboro, GA Robert C. Gallager, CPA, MBA Summerville, SC Ronnie M. Givens, CPA Dixon Hughes, PLLC Charleston, SC Jackie D. Highley, CPA Porter & Highley, CPA Greenville, SC Herbert W. H erb er bert Hucks, Huc ucks k , CPA W.. Her Herbert W erbertt Hucks, Hucks ks, CPA Surfside Beach, Surf Su fsi side de B Bea ach, SC John M. Je Jeffcoat, coat at, CPA Orangeburg, SC Or

Ronald E. Millard, CPA Millard & Moore, CPA, PA Greenville, SC Charles A. Montgomery, CPA Montgomery & Yarbrough CPAs PA Rock Hill, SC B. Frank Munn, CPA Columbia, SC Pete C. Redmond, CPA Irmo, SC Philip O. Riley, CPA, MBA Charleston, SC William C. Robinson, CPA Robinson Grant & Company, p y PA Beaufort, SC John H. Robuck, CPA Roebuck, SC G.. Bruce Thomas, CPA G Bru B uce Tho omas, C PA Columbia, Colu umbia, SC Rupert L.. Th Thompson Ru Rupe pert rt L Thom ompson Jr., CP CPA, ChFC MBA, MB A C hFC hF Columbia, Columb Co m ia, SC S

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Breaking Tradition: CPAs of the Future

by Allison Caldwell

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sing the tired cliché “think outside the box” to describe a product or service is usually the first sign that you actually need to do so. Everything and everyone simply cannot be engaging, inspiring and meaningful all the time—especially in the world of accounting.

Or can they? As the world shrinks and our spheres of influence continue to grow with changing technologies, “traditional” public practices that once dominated the CPA landscape are being replaced by forward-thinking firm structures, valuable industry professionals and inspiring educators serving their clients, students and communities in creative new ways. Following are interviews with four such members leading the way into the future of the profession.

JASON M. BLUMER, CPA, CITP, CFE Chief Innovation Officer Blumer & Associates CPAs, PC SCACPA member since 1999

A second generation CPA and one of the top 40 Under 40 CPAs in the nation (as named by The CPA Technology Advisor), Jason Blumer has transformed his father’s business into a “next-generation CPA firm focused on serving clients locally and globally, with a heavy use of cloudbased services for the younger generations.” With a staff of five—including his wife, Jennifer, who provides administrative support—Jason has created a paperless, social media-savvy firm with clients worldwide.

SCACPA: You recently launched the Thriveal +CPA Network. What is it, what does the name mean, and what do you hope to accomplish?

Blumer: We’re committed to helping young CPAs thrive as they move into firm ownership. Thriveal is a made-up word and rhymes with “survival.” It’s the antithesis to survival. Younger generations are interested in four foundational areas of growth: community, collaboration, technology and innovation. These are the tenets upon which the Thriveal +CPA Network is based. They’re ready to spend time together, sharpen one another and build a new type of firm based on an expertise in cloud technology and innovating new services for a new gen-

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eration of clients. We simply created a place where new generation CPAs from around the world can come together and find what they’re looking for—when we released the initial press release, the web traffic shut down our site! In 2011 we’ll be growing the membership base, implementing six Community Calls (a benefit of membership) and starting a 12-week online coaching course in July. Additional membership levels will be added toward the end of this year or the beginning of next. (Editor’s note: Interested in joining? Visit http://thriveal.com.)

SCACPA: What are some of your top picks for existing or emerging capabilities and processes for next generation CPAs? Blumer: As a profession, we aren’t used to creating new services that don’t currently exist. We don’t know how to do things differently—we just do whatever we were taught to do. Innovation is what new generation clients demand of us. We can’t just peddle what we’ve always sold (e.g., monthly compilations that don’t add value). Firms that can’t deploy cloud technologies will be left behind and become obsolete. With the cloud, firms can become the new “efficiency consulting experts” to bring major changes and paperless processes to their clients. This stuff can change their life. CPAs must become students of the cloud and stay current on changes to continually add value. We are closest to

“We don’t know how to do things differently—we just do whatever we were taught to do. Innovation is what new generation clients demand of us.” the business process within our client’s businesses, so we must become experts at making it better. I’m not here to tell anyone how they need to do things—my goal is to challenge people to question their processes and methods to make sure they’ll remain relevant over the next five years.

SCACPA: For those still taking baby steps towards new technologies and business practices, share a few simple steps to start implementing a transitional plan.

Blumer: First, become a member of the Thriveal +CPA Network, where we’ll continually push these tools and new consulting techniques—it’s free to join!

Second, go paperless and heavily use cloud in your own firm (e.g., work towards getting rid of your server). Feel your way through implementing these new technologies and observe how they affect your staff and internal processes before deploying this stuff to your clients. Third, we often teach firms to stairstep their way to the clouds. Choose specific processes that can be moved, (888) 557-4814 | www.scacpa.org

then work your new internal processes around this move. Moving your document management system to the clouds is often a good place to start. As you and your staff become adept at this process, move something else. It may take a few years, but continue this process until you are virtual. Then you can become competitive globally and start adding real value to your clients’ businesses.

ANNE H. POAG, CPA, CGFO Chief Financial Officer/Municipal Clerk City of Rock Hill SCACPA member since 1990 As a CPA in industry, Anne Poag is committed to using her knowledge and expertise not only in projects she manages as CFO of the City of Rock Hill, but also to benefit fellow employees and citizens in the area of financial literacy. With inspiring stories like one employee who crawled out of payday loans and is reestablishing good credit to another who benefited from a $1,000 emergency fund when her husband was diagnosed with cancer, Anne is impacting the financial success of generations to come.

SCACPA: What skills and duties does your “day job” entail, and how does your CPA designation add value to your work?

Poag: I’ve worked for the City of Rock Hill for five and a half years and was promoted to Chief Financial Officer in November 2010. At age 27, I was hired as York County Finance Director and served in that position for 14 years prior to joining the City. Several County Council members stated that my CPA designation gave them a higher level of confidence when deciding to choose me—a younger, less experienced candidate—over an older candidate without a CPA license. Although historically not prevalent in local governmental accounting positions, more governments

(888) 557-4814 | www.scacpa.org

are seeing the value in hiring CPAs, and more CPAs seem to be pursuing governmental accounting careers.

My responsibilities include long-term financial planning, financial oversight and personnel management. My accounting background prepared me well for the challenges of my current position. I work for a progressive city that values the finance department as a key component in all decisions, and I take great pride in helping make decisions that will impact future generations— such as adding a street crimes unit in the police department or determining when a new fire station is needed and how to equip, staff and fund it. I also supervise divisions which include Accounting, Archives, Risk Management, Utility Billing, Collection and Customer Services, and work on many major projects and the debt financing that goes along with them. When pulling together financing arrangements with people across the country, a CPA designation adds a level of expertise, integrity and credibility which ensures good contract terms and interest rates.

SCACPA: We mentioned your passion for sharing financial literacy in the workplace. What has been the reaction from your employer, citizens or outside sources on the work you’re doing in this area?

Poag: Government finance is definitely a thankless job, but most government leaders recognize the value and importance of having well qualified employees in the finance area. The biggest recognition I’ve received from my employer is the recent promotion to CFO. I occasionally get e-mails from citizens expressing appreciation or kind comments from people in public. But in general, many citizens just don’t trust or appreciate the government. As government employees, we must desire excellence from a personal commitment to public service. In 2010, Rock Hill received an Honorable Mention from the National Government Finance Officers Association’s Awards

“Several County Council members stated that my CPA designation gave them a higher level of confidence when deciding to choose me—a younger, less experienced candidate—over an older candidate without a CPA license.” for Excellence in Government Finance for the financing plan to fund our municipal WiFi system. As part of that award, I wrote an article that appeared in the August 2010 issue of Government Finance Review.

SCACPA: How would you advise other members—particularly in industry— about using their CPA knowledge and expertise to make a difference in their own workplace or communities? Why is it important for the profession at large to continue providing this kind of support?

Poag: In addition to my traditional duties, I periodically provide financial training for City of Rock Hill employees. I’ve covered topics such as payday lending, the cost of credit, home ownership, prioritizing needs over wants, how to improve your credit score, etc. I’m motivated by my own personal experiences as a single mom and as a supervisor, and have found that a less-stressed workforce is a more productive workforce! Different people have different gifts. Volunteering for various community and professional groups allows us to step out of the accounting role and participate on a team to reach a goal. I’d like to encourage CPAs to consider an accounting career in government. While the pay scales are usually lower, the hours are better and I can’t put a price tag on the value of doing something different every day. I really feel that I’m making a difference in my community.

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“China and other countries are starting to invest more and more money here. As that continues, CPAs need to be aware of how to advise their clients with international relationships.”

DR. CLARENCE COLEMAN, JR., CPA Professor of Accounting Winthrop University SCACPA member since 1979 With experience in a big four firm, a smaller firm and as CEO of a community health center—not to mention an MBA in Finance and a Ph.D. in Accounting—Clarence Coleman is now a professor with a purpose at Winthrop University, sharing his accounting knowledge and understanding of other cultures with his own students as well as with business executives and students around the world. He currently serves on the SCACPA Board.

SCACPA: How did you first become involved with international work? How do these experiences affect your students as future members of the profession, and how have they changed your own focus or approach to what you do?

Coleman: Through Winthrop’s International Field Experience program for graduate students, I’ve had the privilege of teaching business executives in Romania, teaching intermediate accounting to Chinese students at Nantong University, and accompanying MBA students on trips to Poland, the Czech Republic and East Germany. The goal is for students to understand and appreciate other cultures and to learn the value and challenges of working in a global environment. Even some small companies today are involved in foreign sales. When I visit other countries, I’m better equipped on how to interact with people in those cultures by learning the dos and don’ts

of doing business there. It’s an edge I bring to my students as we discuss moving towards the adoption of international accounting standards and certain benefits and risks based on different cultures. I also believe it’s important to inform these developing free market economies of the critical role accounting plays in allocating scarce resources in capital markets.

SCACPA: Here at home or abroad, how would you advise other members on using their CPA knowledge and expertise to make a difference in their own circles of influence? What are some opportunities available that others might not know about?

Coleman: I think former SCACPA president Eddie Brown is a good example of the demand—he’s engaged in international tax out of Spartanburg. If there’s a need for someone with his knowledge in the small state of South Carolina, that’s an incentive for others to explore global opportunities and consider a career in international taxation. These countries know that we have the best economic system in the world, and there’s a thirst to replicate what we do to improve their own standards of living. China and other countries are starting to invest more and more money here. As that continues, CPAs need to be aware of how to advise their clients with international relationships. Before a CPA in S.C. engages a CPA in China to work on a Chinese subsidiary, it would be well worth their while to go there for a clearer understanding of international and GAAP standards so they can really communicate with that company rather than operating on a referral. I also think it’s wise for CPAs to look beyond accounting services to understanding intellectual property rights for any product or service that could be easily duplicated— many countries don’t understand or recognize intellectual property. At one time these issues only concerned large businesses, but today a small company

with just 10 employees could be competing with a global competitor.

H. KYLE ANDERSON, CMA, CPA Professor of Accounting Anderson University SCACPA member since 1986 Kyle Anderson has found success following multiple career paths, from public practice to education to CPE seminar presentations.

Specializing in taxation and consulting, he has more than 20 years of experience in public accounting and is in his 20th year of teaching at the University level. Kyle uses creative, interactive technologies to teach students and fellow CPAs alike. He currently serves as Chair of SCACPA’s Accounting Careers/Academic Relations Task Force and is a past president of the SC Association of Accounting Educators.

SCACPA: How long have you been a professor at Anderson, and what made you choose the education field?

Anderson: I first entered higher education in 1985 as an instructor at Furman University after graduating from Clemson with a Masters in Professional Accountancy. I quickly learned that I didn’t know much about “real” accounting, and soon entered public practice to get my CPA certificate. The plan was to practice for two to four years and then return to education. That journey continues today as I juggle dual careers in academics and public accounting. I joined Anderson University in 1997 after five years at Erskine College. At that time, I ran a tax and consulting practice and was also involved in developing real estate in the Anderson area. I chose the education field because I’ve always enjoyed helping others accomplish their goals. In addition to teaching, my wife Lani and I have built a successful tax, real estate and CPE seminar business.

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E-5929-0910 SC

TAX FEATURE TAX FEATURE

IRS-DOR Annual Meeting Summary

by Steven E. M iller, CPA S C ACPA m e m b e r s i n ce 2 0 0 5

I

n October 2010, members of SCACPA’s Taxation and State and Local Taxation task forces met with representatives of the Internal Revenue Service (IRS) and the South Carolina Department of Revenue (DOR) for the annual meeting to discuss practitioners’ concerns and updates on the two agencies. As usual, these meetings proved to be very informative and helpful. The following is a summary of the meetings.

INTERNAL REVENUE SERVICE The Taxpayer Advocate office in South Carolina works primarily with two types of issues: individual cases and systemic improvement (SAMS).

SAMS issues should be reported to the Advocates office on the IRS website.

There are currently 12 employees in South Carolina. This group has an average caseload of 500 cases.

Congressional and hardship cases stay in South Carolina. The Taxpayer Advocate office does not have the authority to make adjustments. Their role is to work with the taxpayers and their advisors to resolve issues with the IRS that have not been resolved through the normal course of action.

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“We feel that these are valuable meetings that allow these agencies and the practitioner community an opportunity to share concerns and information that facilitate a better working relationship.”

The Examination Section – Field Audits have revised notification letters that include a link to “Your Guide to an IRS Audit.” The revenue agent is supposed to set a mutual date of resolution at the first appointment. If there is a communication issue with the revenue agent, the group manager should be contacted. They are continuing to look at S corporations, specifically reasonable compensation issues and employee classification. The National Research Program is looking at many issues, specifically high net worth taxpayers, non-filers and earned income credit issues.

The Examination Section – Office Audits is looking at Schedule C’s and questionable return preparers. The intent is to issue a report at the first appointment if all requested information is provided. If a taxpayer receives a notice for an office audit, a request can be made to move the audit to a field audit. IRS agents are working with transcripts rather than copies of the return. Tax practitioners should take a copy of the return to the audit. It’s possible that information supplied when the return was filed is not available to the agent, so it’s advisable to call the agent prior to the scheduled appointment and see if the information can be sent to them. This may resolve the issues and avoid the office audit.

Communication with the agent is very important.

The Appeals office is experiencing increased inventories as well.

Remember, they are an independent group and only talk with the revenue officer when the practitioner is on the phone. Most cases handled by appeals are worked on at the campus level. A letter can be sent to the campus appeals officer requesting a transfer to the local appeals office for a face to face meeting.

It was suggested that practitioners try a face to face meeting with the local office to see if issues can be resolved before going to appeals. Any such request must be in writing. They also recommended that whenever you have phone contact with an IRS representative, make certain to get their name (first and last), ID number and location.

In the Criminal Investigation Section, they are currently dealing with refund crimes resulting from illegals filing false returns and claiming credit for children they don’t have. Many of these returns are being filed from foreign countries.

They are also working on return preparer issues related to current years and the two prior years.

The IRS is currently working to strengthen the Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) in South Carolina. They are in need of volunteers to train the volunteer preparers on a very basic level—training materials are provided. If you’re

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interested, contact Joyce Robins at (803) 765-5416 or joyce.robbins@irs.gov.

Practitioner Liaison Tom Sheaffer discussed their role in maintaining partnerships with organizations and associations to disseminate information to taxpayers and small business owners through seminars and other methods.

They also are responsible for gathering feedback from practitioners that can be used to improve communication with the IRS. The new PTIN registration regulations were discussed, and the new Circular 230 regulations should soon be final. Contact Tom at (803) 253-3031 or thomas.a.sheaffer@irs.gov.

NOTE: The IRS also emphasized that they will not make contact by email.

SC D e pa r t m e n t of Revenue SOUTH CAROLINA DEPARTMENT OF REVENUE The Individual Income Tax Form (SC1040) has been redesigned this year. When a paper return is filed, a Form 1040-V should be sent in with the payment and the tax return.

Sales tax booklets will no longer be mailed to taxpayers. Taxpayers should have received a letter in November alerting them to this change and will receive a CD in January if they have not previously filed electronically.

Payroll forms will no longer be mailed.

Taxpayers should have been notified in November that quarterly forms will need to be filed electronically.

Withholding amounts will need to be deposited with the SCDOR through the E-Withholding system.

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When Form SC2848 Power of Attorney is filed—unlike the federal power of attorney, only the taxpayer will receive notices. The representative will not receive notices.

The SCDOR does not confirm in writing that matters are resolved. If requested, this information can be emailed.

Partnership returns still cannot be filed electronically in South Carolina.

SUMMARY The task forces appreciate the cooperation we received from the IRS and the DOR. We feel that these are valuable meetings that allow these agencies and the practitioner community an opportunity to share concerns and information that facilitate a better working relationship. We will be asking for input from our membership again this summer in anticipation of these meetings in the fall.

The DOR is in the process of updating their website. They are working on a new search engine. They would like feedback on possible enhancements.

Suggestions can be submitted to taxtech@sctax.org.

Steven E. Miller, CPA is a partner with Cherry, Bekaert & Holland LLP in Bluffton and former chair of the SCACPA Taxation Task Force.

Corporate file numbers can be obtained by practitioners via e-mail from the DOR. There are several tax manuals published online. These can be found on the DOR website in the Department Advisory Opinion Section.

The DOR does not have a separate appeals department—Collections and Audit handle these issues.

Once a taxpayer receives a notice of adjustment, they have 90 days to appeal. Wage garnishments are sent out on paper notices.

In the case of bank levies, two in-person contacts are attempted before the levy is issued.

Taxpayer Advocate Jean Funches can be reached at (803) 898-5444.

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TAX FEATURE

TAX FEATURE

Federal Tax Conference Wrap-Up

by C h a r l e s M . Aye r s, C PA S C ACPA m e m b e r s i n ce 1 9 8 8

I

recently had the pleasure of representing SCACPA at the IRS Track of the AICPA National Tax Conference in Washington, DC. Representatives from each state had the opportunity to hear and interact with Douglas Shulman, Commissioner of the IRS, as well as the leaders of the various IRS operating divisions. One of the most interesting statements was made by Commissioner Shulman during his luncheon presentation, while discussing the return preparer initiative.

“It is highly likely that as we implement the new rules and procedures, there will be some relief for testing and continuing education requirements,” said Shulman, speaking about non-signing preparers supervised by a CPA, enrolled agent or attorney. Shulman also expects the return preparer initiative to increase compliance by ensuring a minimum level of competency for preparers. The program should help the service analyze trends, spot anomalies, and identify fraud.

Another topic discussed in several sessions was the systemic problems within the service, such as the backlog of cases and lack of improvements to tools such as the e-services area for tax professionals. Recurring themes mentioned by IRS representatives were the lack of resources and the inexperience of IRS employees, since many have been with the service for only a few years. My summation of the situation is that things very well may get worse before they get better. The magnitude of the problem is supported by the fact that Nina Olson, National Taxpayer Advocate, stated

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that her division has had more cases this year than ever before.

Faris Fink, Deputy Commissioner of the Small Business/Self-Employed Division, said that this division’s areas of emphasis this year will include high income/high wealth taxpayers with income greater than one million, especially those with a Schedule C. Another area which will be emphasized is flowthrough entities, since these entities have a great potential for abuse. He also stated that the national research program would be selecting approximately 13,000 returns to audit to help the service determine which returns are best to audit. This research program would also include audits of some employment tax returns.

Another area Fink discussed was the fact that Small Business/Self-Employed Division would be handling approximately 2,500 visits to preparers under the return preparer compliance initiative. These visits will take place between December 1, 2010 and April 30, 2011, with education and addressing problems as the primary focus.

David Williams, Director of the Office of Electronic Tax Administration, gave an update on the new requirement (effective January 1, 2011) for tax return preparers who prepare 100 or more individual or trust returns to file them electronically. He also reminded us that the threshold for 2012 is 11 returns.

Additional guidance on exemptions, waivers and taxpayer opt-outs is in development.

The last speaker of the day was Nina Olson, National Taxpayer Advocate.

Her emphasis for the coming year is to encourage her employees to push the advocacy role, including training employees on how to think like an advocate. Other areas she addressed included the service’s zealousness in placing liens when it did harm to the taxpayer and offered little to no potential benefit to the government. Olson also discussed the problems with automated correspondence exams, stating that her office is currently participating in a study related to the effectiveness on many of the correspondence exam procedures.

This annual meeting with the IRS leaders and CPAs from across the country allowed these two groups to have positive interaction, with IRS representatives sharing what is happening at the service and CPAs giving feedback on problems we see on a daily basis.

Charles M. Ayers is employed with McDowell-Pearman, LLC in Columbia, SC. His area of practice includes taxation of both individuals and businesses as well as small business consulting. Charles currently serves as chairman of SCACPA’s Taxation Task Force and has also served on the Information Technology Committee. He is a past recipient of the President’s Award for Outstanding Service to the Association.

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TAX FEATURE

TAX FEATURE

Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010

TRUJCA: An Overview

by N e i l A . B row n , C PA , MAcc, C F P ® , S C ACPA m e m b e r s i n ce 1 9 9 4 and Jennifer R. M acLeod, J.D. LL.M

T

he Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (TRUJCA) that passed in mid-December is an extensive tax package. Following is a brief summary of some of the main items of this far-reaching bill for both income tax and estate tax.

INCOME TAX INCOME TAX TRUJCA extends the lower Bush income tax rates for everyone. Under the new law, the rates that have been in effect in recent years will remain in place but for only two years (i.e., through 2012).

Since 2008, the tax rate on most longterm capital gains has been zero percent for individuals in the 10 and 15 percent income tax brackets, and 15 percent for everyone else. However, those rates were scheduled to expire at the end of 2010 with 2011 tax rates rising to 10 and 20 percent respectively. The new legislation forestalls these increases by extending the zero and 15 percent longterm capital gains tax rates for two years (i.e., through 2012).

Since 2003, “qualified dividends” have been taxed at the same low tax rates that apply to long-term capital gains (zero and 15 percent). If Congress had not acted, beginning in 2011 taxes on dividends would have returned to the rates that were in effect before 2001 and all dividend income would have been taxed as ordinary income. The new legislation continues the current tax

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regime in effect for qualified dividends (i.e., treatment as long-term capital gains for two years through 2012).

SOCIAL SECURITY TAX BREAK The employee’s share of the Social Security payroll tax—the 6.2 percent tax on the first $106,800 of wages—will be lowered to 4.2 percent in 2011 only. For an individual with wages of $60,000, that amounts to a $1,200 savings and even more for those up to $106,800 wage base. The employer’s share is not affected and will stay at the 6.2 percent rate. Self-employed workers will also get the tax break. Their self-employment taxes will be cut from 12.4 to 10.4 percent.

Unlike the 2009 and 2010 Making Work Pay tax credit, there is no phase out of the payroll tax reduction for higher income workers. The break will go to everyone who works, regardless of income.

AMT RELIEF A two-year AMT “patch” for 2010 and 2011 provides a modest increase in AMT exemption amounts and allows personal nonrefundable credits to offset AMT as well as regular tax. Under the new law, for tax years beginning in 2010, the AMT exemption amounts are increased to: (1) $72,450 in the case of married individuals filing a joint return; (2) $47,450 in the case of unmarried individuals; and (3) $36,225 in the case of married individuals filing a separate return.

“Unlike the 2009 and 2010 Making Work Pay tax credit, there is no phase out of the payroll tax reduction for higher income workers.”

For tax years beginning in 2011, the AMT exemption amounts are increased to: (1) $74,450 in the case of married individuals filing a joint return; (2) $48,450 in the case of unmarried individuals; and (3) $37,225 in the case of married individuals filing a separate return.

Personal credits (i.e., dependent care, elderly and disabled) may also be used to offset AMT through 2011.

OTHER INCOME TAX PROVISIONS Key tax credits for working families that were enacted or expanded in the American Recovery and Reinvestment Act of 2009 will be retained. The law extends the $1,000 child tax credit, maintains its expanded refundability and extends the higher education tax credit (the American Opportunity tax credit) and its partial refundability for two years.

Businesses can write off 100 percent of their new equipment and machinery purchases, effective for property

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TAX FEATURE

“For all of these reasons, the traditional tax planning approach of using a bypass trust or credit shelter trust at the first death may remain popular, at least until the 2010 Tax Act is further extended or made permanent.“ placed in service after September 8, 2010 through December 31, 2011. For property placed in service in 2012, the new law provides for 50 percent additional first-year depreciation.

Many of the “traditional” tax extenders are extended for two years through the end of 2011. Among many others, these include the election to take an itemized deduction for state and local general sales taxes in lieu of the itemized deduction for state and local income taxes; the ability to deduct primary mortgage insurance for qualifying taxpayers, above the line education deductions; and the $250 above-the-line deduction for certain expenses of elementary and secondary school teachers.

Also included was an extension of tax-free distributions to charity from an Individual Retirement Account (IRA) of up to $100,000 per qualifying taxpayer, per tax year. Individuals also will be allowed to make charitable transfers during January of 2011 and treat them as if made during 2010.

Omitted from the new law was a repeal of a controversial expansion of Form 1099 reporting requirements to take effect in 2012, an extension of the Build America Bonds program and the ability of non-itemizers to deduct real estate taxes.

ESTATE AND GIFT TAXES ESTATE TAX The 2010 Tax Act included an extension of the estate tax for two years with a $5 million exemption per individual. This amount is indexed for inflation from 2010, beginning in 2012.

The rate on any transfers above $5 million will be 35 percent.

The $5 million exemption amount is also portable. To use a simple example: assume Husband dies, leaving his entire estate outright to his Wife. As under previous law, this transfer does not use Husband’s exemption; rather, the transfer will qualify for the unlimited marital deduction.

However, unlike previous law, Husband’s exemption is not wasted. Instead, Wife can use Husband’s unused exemption amount to shelter assets from estate tax at her death.

Assuming she makes no lifetime gifts, she can shelter up to $10 million from estate tax at her death.

The concept of portability has the potential to greatly simplify the estate planning of many. However, portability has its limitations under the 2010 Tax Act. First, Husband’s estate tax exemption is not indexed for inflation; instead, it is frozen as of his date of death. If Husband dies this year and Wife lives another 30 years, it is possible that Wife may have an estate tax problem at her death, assuming her assets have grown in excess of $10 million.

Second, only the most recent deceased spouse’s unused exemption may be used by the surviving spouse. Third, portability is only guaranteed by the 2010 Tax Act for the next two years. It is unclear what will happen to Husband’s unused exemption if Wife dies in 2013 or beyond. Also, Husband’s executor must file an estate tax return at Husband’s death to elect portability and preserve Husband’s unused exemption.

For all of these reasons, the traditional tax planning approach of using a bypass trust or credit shelter trust at the first death may remain popular, at least until the 2010 Tax Act is further extended or made permanent. In addition, the standard benefits of trust planning— including asset protection, management for assets in trust, and restriction of transfer by the surviving spouse— will continue to necessitate the use of trusts in the future.

GIFT TAX Beginning in 2011, the gift tax exemption is the same as the estate tax exemption amount, or $5 million. That amount is indexed for inflation from 2010, beginning in 2012. The gift tax exemption is also portable between spouses. The rate on non-exempt gifts will be 35 percent.

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Again, however, portability and the $5 million gift tax exemption are only guaranteed through 2012. Also, it is not entirely clear what effect a $5 million gift in 2011 will have on a decedent who dies in 2015, if the 2010 Tax Act is not extended. Because prior taxable gifts are included in calculating a decedent’s taxable estate, there is a possibility of recapture at the decedent’s death.

Neil A. Brown, MAcc, CPA, CFP is a Certified Financial Planner® for Burkett Financial Services and a national instructor for Keir Educational Resources, Surgent McCoy, the AICPA and Jeff Rattiner’s Financial Planning Express™.

Neil is currently a member of SCACPA’s Editorial Board and the Personal Financial Planning Committee.

GENERATION SKIPPING TRANSFER Jennifer Ross MacLeod is a member of the Trusts and Estates Practice Group at Ellis, Lawhorne and Sims, P.A. in Columbia with a practice focus in estate planning.

She earned her Bachelor’s of Science in Business Administration from the University of South Carolina Honors College; her J.D. from the University of South Carolina School of Law; and an LL.M. in Taxation with a Certificate in Estate Planning from Georgetown University Law Center.

The exemption from the generation skipping transfer (GST) tax will be $5 million for 2011 and 2012, indexed for inflation beginning in 2012, with a 35 percent rate on any transfers above $5 million. The GST exemption is not portable, so traditional tax planning trusts will continue to be necessary to maximize the use of the GST exemption between spouses.

2010 DEATHS The 2010 Tax Act retroactively reinstated the estate tax with a $5 million exemption and a 35 percent rate for decedents dying in 2010. The law also provides that a recipient of property from a 2010 decedent’s estate will receive an adjustment in the basis of that asset to fair market value as of the date of decedent’s death.

However, the executor of a 2010 decedent’s estate does have the ability to elect to proceed under the 2010 law as provided by EGTRRA. The executor can choose to have no estate tax levied against the decedent’s estate, rather than having a 35 percent tax on transfers greater than the exempt amount of $5 million. If the executor so elects, the assets in the decedent’s estate will receive a limited basis adjustment of $1.3 million for assets passing to anyone, and an additional $3 million basis adjustment for assets passing in a qualified manner to a surviving spouse. Both basis adjustment amounts may be increased by certain predeath losses.

In addition, the GST tax was retroactively reinstated for 2010, with a $5 million exemption, but with a zero percent rate. Finally, the gift tax remained in effect for 2010 with a $1 million exemption and a 35 percent rate.

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While the provisions in this law will have a far reaching effect, the above is simply a synopsis of a very important bill. Our goal was to provide a brief overview of this new law. Please consult your own research sources for a much more in-depth view of this act. mgclaw.com Columbia

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Charlotte

Charleston

Greenville

Raleigh

Myrtle Beach

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South Carolina

2010 Member Award Recipients Compiled by Emily Allen S er ving SCACPA since 2009

A

t November’s Annual Summit, SCACPA handed out six awards for member achievements in the profession and their own communities.

“We are pleased to honor these CPAs for their outstanding achievements,” said Executive Director Erin P. Hardwick, CAE. “The SCACPA awards program is longstanding, since 1957, and these 2010 recipients join a long list of professionals who exemplify the spirit of volunteerism and service for the greater good.”

The Association’s highest honor and most prestigious award pays tribute to one whose public service, professional conduct, time and effort have contributed significantly to the advancement of the profession. Debra A. Turner, CPA, PFS of WebsterRogers LLP received the 2010 Service to the Profession Award. A member of SCACPA for 30

years, Debra has served as president of the Board of Directors, chairman of the Financial Planning for Disaster Task Force, chairman of the Personal Financial Planning Task Force, and on many other committees and task forces.

She has also served as chairman of the South Carolina Board of Accountancy and served on the AICPA Council. In her community, she serves in leadership roles for the Coastal Community Foundation Center for Women and the Zonta Club/Zonta Foundation of Charleston.

Given by the current board president in recognition of significant contributions to SCACPA’s goals and objectives, the 2010 President’s Award was collectively presented to the SCACPA Peer Review Committee. The Peer Review Committee is composed of 15 members who have volunteered numerous hours through the years. The work that this committee conducts on behalf of the SC Board of Accountancy is critical to upholding the standards of the accounting profession.

The Young CPA Award honors a young professional who displays exceptional leadership qualities throughout the community, their profession and SCACPA. Georgette R. Timmons, CPA with Burroughs and Chapin in Myrtle Beach received the 2010 Young CPA Award. Georgette graduated Magna Cum Laude from Coastal Carolina University with a Bachelor of Science degree in Accounting and a minor in Spanish. Georgette began her career as an intern at Burroughs and Chapin, moved to Rolls-Royce Corporation as a finance intern and is currently an Accounting Manager at Burroughs and Chapin. She is actively involved with the SCACPA Young CPAs Leadership Cabinet and various community organizations including Kiwanis Club of Myrtle Beach and Beta Alpha Psi Accounting Honor Society.

Peer Review Committee Matthew A. Brown, C. Thomas DeWitt, Thomas E. Fitzsimmons, Dennis L. Gore, Carol S. Hubbard, Karen A. Hursey, Gary J. Johnson, Robert P. Jordan, Christina R. Kelly, Susan B. McCracken, Howard M. Nichols, Terry K. Schmoyer Jr., Randy L. Skinner Sr., James M. Stewart Jr., Randolph B. Thomas

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“The SCACPA awards program is longstanding, since 1957, and these 2010 recipients join a long list of professionals who exemplify the spirit of volunteerism and service for the greater good.”

The Outstanding Accounting Educator of the Year Award recognizes a full-time accounting professor distinguished for excellence in the classroom, motivating students and educational innovation.

Ann M. Pletcher, MBA, CMA with Converse College in Spartanburg received the 2010 Outstanding Accounting Educator of the Year Award.

Ann began her career in the internal auditing department of Manufacturer’s National Bank of Detroit and moved into managerial accounting while employed with Molex Corporation in Illinois. She began teaching at Converse College in 1984, where she has served on numerous committees and positions. An engaging professor who takes a personal interest in helping her students succeed, Ann is also an active member of SCACPA’s Foothills chapter and actively promotes the annual chapter student night.

The Outstanding CPA in Business and Industry Award is based on the nominee’s business achievements, contributions to the growth and enhancement of the profession and public service involvement. John C. Shell, III, CPA of John Shell Associates, Inc. received the 2010 Outstanding CPA in Business and Industry Award.

John earned a Bachelor of Science degree in Accounting from Clemson University and began his career as a Staff Accountant at Price Waterhouse.

Currently president of John Shell Associates, Inc., he is actively involved with the Senior Advisory Board of the College of Business and Behavioral Science at Clemson, the Board of Directors of Food for the Soul of Kershaw County, and the Board of Directors of the American Association of Finance and Accounting.

The mark of a true professional is devotion to the public good. An outward indication is the many hours South Carolina CPAs give to their communities over and above their working hours. Each year, SCACPA recognizes a member who has reached high achievement in public service and made significant contributions to their local community.

Ronald H. Burkett, CPA of Burkett, Burkett & Burkett, CPA, PA received the 2010 Public Service Award.

As President of Burkett, Burkett & Burkett, CPA, PA, Ronny demonstrates leadership and innovation as a Former Chair of the Midlands Technical College Board of Commissioners, Youth Church Educator, Youth Baseball and Soccer Coach, and as a volunteer Boy Scout Troop Leader.

Pictured right: Anna Millwood received the Burkett Burkett Burkett CPAs, PA scholarship.

Pictured far right: Crawford Clarkson (member since 1948) and Bob Cooper (member since 1965) at the Old Guard Reception.

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A Look Back

2010 Fall Conferences Review Compiled by Reva Brennan, MPA, CAE, IOM S er ving SCACPA since 2001 Fall and winter are always busy with multiple conferences and year-end CPE offerings! For a closer look at all SCACPA has to offer in these areas, here’s a review of our recent Fall Conference schedule. Plan now to join us in 2011!

South Carolina

&3$

Valuation & Litigation Conference September 16, 2010 | Columbia, SC

VALUATION & LITIGATION CONFERENCE September 16, 2010 • Columbia

Co-sponsored by the S.C. Bar, the Valuation & Litigation Conference focused on Leveraging Opportunities: Optimizing the Accounting LEVERAGING Expert. In complex valuation and OPPORTUNITIES litigation services, an expert witness usually presents the calculations. This occurs because of the complexity of the calculations, the specialized nature of the work, and the credibility and independence that only an outsider can provide.

Optimizing the Accounting Expert

Co-Sponsor

Even when testimony is not required, outside financial advisors are often necessary because most litigation requires a large effort in a short period. Internal resources have other responsibilities and may not have the specialized training necessary to efficiently or appropriately support the litigation plan. This conference explored the technical and ethical aspects of being an accounting expert witness and winning. The niche group of 40 attendees heard from well known attorneys such as Gedney Howe. Here’s what some of them had to say:

EMERGING LEADERS CONFERENCE September 23-24, 2010 • Charleston The Young CPAs Leadership Cabinet held their first Emerging Leaders Conference with 40 attendees in Charleston. The conference was designed to help young CPAs develop the critical skills and competencies to achieve long-term success and satisfaction as a CPA. This unique event offered a chance to connect with up-and-coming CPAs while obtaining necessary training in both technical and personal development topics. Here are some comments we received: “[Jason Blumer’s session on the State of the Profession] was the most interesting and refreshing presentation of the conference. In addition to his unique presenting style, the topics he covered provided a new outlook on our profession.”

“I was really impressed with Georgette Timmons’ knowledge of Excel. I consider myself knowledgeable but was still able to take something away from the session. I liked the collaborative nature of the session, with attendees offering information as well.”

GOVERNMENTAL BONUS WORKSHOP September 27, 2010 • Columbia

“This was a special opportunity to hear from one of the nation’s top lawyers. Gedney Howe was totally entertaining and informative, and very direct in his presentation. A real coup for the committee in having him as part of the program.”

The Governmental Bonus Workshop lead by Dennis Dycus focused on helping attendees cover all their bases when conducting government audits. Approximately 75 attended sessions such as Red Flags… or, What Does Fraud Look Like; Identity Theft: It’s Only a Matter of Time; Asset Misappropriation by Government Employees with Case Studies; and Governmental Fraud Risk with Case Studies.

“Best litigation conference of all I have attended. Good job by the committee.”

“Very informative and entertaining seminar. Mr. Dycus has some of the best presentation skills I have seen.”

“This was the best conference I have ever attended. It made a huge difference to have attorneys and CPAs work and teach together. I hope to see the same collaboration and participation in the future.”

“Usually Government A&A CPE = BORING (try to not fall asleep and snore when you are sitting next to the boss)…but Dennis was great! I would go see him again. Excellent CPE!” “The best governmental CPE I have ever had.”

22

South Carolina CPA Report

(888) 557-4814 | www.scacpa.org

South Carolina

&3$

Industry Conference October 11-12, 2010 | Columbia, SC

INDUSTRY CONFERENCE October 11-12, 2010 • Columbia

Focused on Solutions was the theme for this conference—a powerful, practical Focused On and proven approach to positive change Solutions with people, teams, organizations and businesses. With this approach of radical simplicity, people will sidestep the often fruitless search for the causes of problems and head straight for the solution. The key is to focus on solutions, not problems; strengths, not weaknesses; and what’s going well rather than what has gone wrong. This change in thinking leads to a positive and pragmatic way of making progress. Nearly 200 attendees enjoyed a variety of topics such as the economy, health care, employee benefits, escheat laws, sales and use taxes and leadership.

Silver Sponsor

South Carolina

&3$

Personal Financial Planning Conference

Sponsored by

&3$

“As always, good job in putting together an interesting and informative event. I especially enjoyed the health care and economic panels.”

“This conference has varied topics which are quite interesting.”

“Best CPE I have attended this year.”

“Great job on this event. Everything was done well.”

“I love this event! Will not miss next year. Great discussions and information.”

PERSONAL FINANCIAL PLANNING CONFERENCE October 19, 2010 • West Columbia

October 19, 2010 | West Columbia, SC

Weathering the Storm

South Carolina

“Very good conference— one of the better Industry conferences that I've attended over the years.”

Women In Leadership Conference

The goal of this conference was to help the 40 attendees weather the storm with the declining stock market and home values, multiple bank and investment firm failures, credit crunch and increased costs for health care and every day necessities.

Attendees learned how to protect themselves and “take cover” financially, just as they would in the event of a real storm.

“I love this conference, especially the 50-minute (mostly) segments.

Good speakers and subject matter.” “[The 2010 Healthcare Reform Act] session was clear and without bias, which is unusual with this topic.”

“The economic market outlook session was very good! Very relevant for everyone and easy to follow.”

WOMEN IN LEADERSHIP CONFERENCE October 28, 2010 • Columbia

October 28, 2010 | Columbia, SC

SCACPA held its first annual Women in Leadership Conference, designed to promote the important role that women play by serving on boards and in executive leadership positions. As agents of change, SCACPA’s primary mission through What’s the Buzz? this program is to advocate, educate and connect accomplished women with the goal of increasing the number of women serving on corporate boards and in executive suites. SCACPA’s goals include helping companies diversify their boards and increase their talent pool, while helping female executives expand their influence and increase their visibility by providing a forum where executive women can unite, network and leverage best practices within an organization of their peers. During lunch, four women were recognized as emerging and experienced

(888) 557-4814 | www.scacpa.org

leaders (see pg. 7 for details). Below are comments from some of the 75 attendees: “I applaud SCACPA for offering this event— the first of its kind here.”

“I would love to attend again next year!”

“The event was beneficial and much needed for women who are in the business and finance fields.”

“The awards ceremony was very well done.”

“The speakers were very upbeat and made the conference very enjoyable.

The first half of the day was a therapy session, and the second half was a comedy routine. I left feeling more confident and ready for any challenges that I might soon face!”

South Carolina CPA Report

23

CPA SUMMIT IN CONJUNCTION WITH TAX CONFERENCE November 11-12, 2010 • Columbia Over 215 attendees helped SCACPA celebrate its 95th anniversary with a theme of Reflecting Back— Looking Forward.

Despite the upheaval of national healthcare reform, new regulatory changes, challenges confronting the profession and the financial pressures of the market, the CPA Summit provided attendees with positive possibilities. CPAs, their businesses and clients can unlock the door to success and overcome potential hurdles by adopting approaches that deliver on transformational ideas and business solutions. The key is working together toward a common goal.

The event spanned over two days with 16 CPE credits, three tracks and 24 sessions. Also on the agenda were events like the SCACPA Annual Business Meeting, New CPA Oath Ceremony, Member Reception and Awards Dinner. Below are some comments on specific sessions: Turning Trust into Value by Greg Conderracci “Outstanding speaker. Engaged me every minute. I can take what I learned in this session and apply it anywhere in my professional or personal life.”

“Excellent class! Provided the nuts and bolts I need in my practice.

Didn't stay 'in the clouds in theory' like some other speakers do.”

Retaining Your Top Talent by Heidi Brundage “Heidi was a great speaker that engaged the group with discussion and tips.”

“One of the best sessions I had on either day. Her energy level is awesome, and the topics were very timely!”

Economic Outlook Panel “This session was excellent.”

“I could listen to Greg speak all day, and I almost did! Signed up for all three of his sessions and was so impressed.”

“I really enjoyed having Holley Ulbrich. The SC information was a nice addition.”

“This was the best class of the two day session. I really got a lot out of it, and the instructor was excellent.”

“This was an EXCELLENT session! Very informative and both speakers were easy to listen to on a subject that could have been very dry.”

South Carolina

&3$

Silver Sponsor

Accounting & Auditing Conference December 9-10, 2010 | Charleston, SC

ACCOUNTING & AUDITING CONFERENCE December 9-10, 2010 • Charleston This conference offered an ideal opportunity for the 230 attendees to keep abreast of the fast-paced changes in accounting and auditing. The conference covered topics ranging from budgeting, compilation and review, fair value, financial reporting and more.

“Good topics, great speakers.” “[Carlton Collins is] always an enjoyable speaker—I always gain valuable hints and tips from him.”

“Liked Leah Donti's style very much— attended all three of the sessions she taught. She keeps the material relevant with real time examples of business matters going on in the press right now.”

24

SSARS Update by Michael Glynn “Good speaker, inherently boring topic.”

South Carolina CPA Report

South Carolina

&3$

Accounting Educators’ and CPA Practitioners’ Forum December 17, 2010 | West Columbia, SC

Time to Reenergize

ACCOUNTING EDUCATORS’ AND CPA PRACTITIONERS’ FORUM December 17, 2010 • West Columbia

Over 30 accounting educators and practitioners attended the joint event with a theme of Time to Reenergize. The forum featured Russell Gates, a co-author of COSO’s recently released “Guidance on Monitoring Internal Control Systems,” aimed at helping organizations better understand how to make monitoring of controls a more integrated component of their system of internal controls.

“Appreciated the new approach and content. Was interesting to view accounting from a different angle!”

“Very well done and at a very reasonable price.”

“This was one of the best programs and presenters that I have ever witnessed.”

(888) 557-4814 | www.scacpa.org

Board of Accountancy

First Quarter Report

South Carolina Department of Labor, Licensing and Regulation

BOA News

BOARD OF ACCOUNTANCY (803) 896-4770 www.llr.state.sc.us/pol/accountancy

by M a r k T. H o b b s, C PA S C ACPA m e m b e r s i n ce 1 9 8 1

T

he South Carolina Board of Accountancy met December 1, 2010 to discuss various issues facing the regulation of the profession statewide. One of the first issues discussed was related to CPE. In 2010, the rule was changed to limit selfstudy CPE to 20 hours of the required 40 in each reporting cycle. After much debate, the BOA determined to keep the limitation on self-study for the current time. Board members will meet this summer to perform CPE audits, and the 20-hour limitations will be monitored during these CPE audit sessions as well as the adequacy of CPE being obtained by licensees. The reason for mandatory CPE is to protect the public by assuring that licensees are maintaining competency. Please note that interactive, internet-based CPE is not deemed self-study.

Next was a general discussion to consider allowing some relief for licensees meeting certain criteria to reduce the amount of CPE hours required for renewal. The framework generally supported by all Board members included taking both experience and age into account to reduce the CPE requirement from 40 hours to 20. For example, a licensee with combined experience and age in excess of 100 would be eligible for the reduced CPE level of 20 hours. This matter is currently being researched through the National Association of State Boards of Accountancy, and hopefully progress can be made in the future to offer relief to older licensees

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“The reason for mandatory CPE is to protect the public by assuring that licensees are maintaining competency. Please note that interactive, internet-based CPE is not deemed self-study.”

who have demonstrated professional responsibility throughout their career.

In the area of discussion leaders, the new regulations failed to stipulate the limitation in the old rules of 20 hours per annum. All Board members were in agreement that this should be added to the new rules related to annual CPE. Discussion leaders are generally allowed double time for presentation but cannot count multiple presentations of the same subject matter.

Finally in the area of CPE, the Board spent a great deal of time debating an ethical requirement for SC Licensees.

The result was moving toward a sixhour requirement for CPE over a three-year period. In addition, the S.C. Board of Accountancy (in conjunction with the staff) will develop a twohour course focusing only on the S.C. Accountancy Act. Each licensee will be required to take the two-hour S.C. course as part of the six-hour, threeyear ethics requirement. The Board will be monitoring the development of the

two-hour S.C. course and hopefully can move forward with this change once it has been developed.

The Board then discussed the Emeritus rules and the feeling that these rules are too strict. After much debate it was concluded that if you are a practicing and licensed CPA, then you must comply with the rules of the profession and no change would be considered at this time. It is hoped that easing the CPE from 40 to 20 as discussed earlier will be beneficial to this group of licensees.

The Board is also working on plans to recognize the top CPA Exam scores.

The CPA application will be revised to include a section to authorize the Board to publicize the top candidates in our state on an annual basis. The staff is researching the policies in other states and will make a recommendation to the Board once this research is complete.

One possibility would be to recognize the top 10 CPA exam scores each year.

Should you have any comments on projects that are under consideration by the Board, please do not hesitate to contact us. The next meeting of the Board of Accountancy is scheduled for April 28, 2011.

Mark Hobbs, CPA is the managing partner of The Hobbs Group, PA in Columbia. A past president of SCACPA, Mark currently serves on SCACPA’s Nominating and Investment Committees as well as the Long Range Planning Task Force. He may be reached at mark@hobbscpa.com.

South Carolina CPA Report

25

Member News

Focus On Membership

IN THE NEWS

PROMOTIONS

James C. “Chris” Barras, CPA, Ernst & Young LLP, was named an Executive Committee member of the South Carolina Chamber of Commerce.

Elliott Davis, LLC recently named Kay Biscopink, CPA and Frances Patterson, CPA as shareholders, both from the Greenville office.

Christopher S. Huggins, CPA, Smith Sapp Bookhout Crumpler & Calliham CPAs, was named one of Coastal Carolina University’s 2010 Outstanding Alumni from the E. Craig Wall Sr. College of Business Administration.

Jarrard, Nowell & Russell, LLC, a Charleston-based accounting and business advisory firm, has named Jeanna Gibson senior accountant.

Jim Manley, CPA, senior manager for Elliott Davis, LLC, was named one of Greenwood’s Under 40 Stars.

AWARDS AND CERTIFICATIONS Bernard N. “Bernie” Ackerman, CPA/ PFS, CFP, Bernard N. Ackerman, CPA, P.A., received a 2010 Keepers of the Culture award in York County from the Culture and Heritage museums.

Wheeler & Associates, CPAs, PC is pleased to announce that Rachel D. McClaran, EA has completed the requirements and is now a licensed Enrolled Agent.

Thomas P. Monahan, CPA, Chairman and Treasurer of GMK Associates Inc., has been recognized by Cambridge Who’s Who for demonstrating dedication, leadership and excellence in finance.

Edward D. “Eddie” Sullivan, CPA of Sullivan Law Firm, PC in Columbia has received an LL.M-Taxation degree (cum laude) from the University of Alabama School of Law.

Edith (Edie) H. Madson, CPA/ABV, CFF has joined the Charleston office of Elliott Davis, LLC as senior manager in the firm’s consulting practice.

Greg Padgett, CPA, CFO of Fennell Holdings Inc., has been named chairman of the College of Charleston’s board of trustees.

Brian Powers, CPA has been named a partner in the accounting firm of Streetman Jones & Powers LLC (formerly Streetman & Jones PC).

Debbie Werts has been named an accounting resources manager in the Columbia office of Elliott Davis, LLC. Fred G. Williams, CPA, was named Spartanburg City Executive by NBSC, a division of Synovus Bank.

FIRM NEWS Goodman & Company LLP and Dixon Hughes PLLC announced that they will merge their firms and affiliated entities effective March 1, 2011. Headquartered in Charlotte, the combined firm will be known as Dixon Hughes Goodman LLP.

Anna Locke, CPA and Brian Clark, CPA have partnered to provide experienced accounting and financial management advice to upstate businesses through Clockwork Financial Services, PC, delivering accomplished senior accounting services on a flexible schedule.

CONDOLENCES William Martin “Bill” Blackwell, 96, passed away June 6, 2010. A lifetime member of SCACPA, Bill was a retired CPA and employed by J.W. Hunt and Co. CPAs in Columbia. An avid Clemson Tiger, he was a member of the “Old Guard” when Clemson was an A&M college. He was a charter member of Forest Lake Presbyterian Church in Columbia, where he was the first treasurer. After moving to Camden in 1984, he became a member of Bethesda Presbyterian Church.

Surviving are a daughter, Janie (Terry) Hancock of Camden; two grandsons, Bill (Lori) Hancock of Columbia and Brian (Jennifer) Hancock of Simpsonville; greatgrandchildren Elizabeth Jane, Grace Manning, Jonathan and Jacob; and sister Janie Blackwell of Sumter. He was predeceased by his wife, Tommie; brothers Joe and Jim; and sisters Anna Youngblood and Zula Thibodeau.

Memorials may be made to Bethesda Presbyterian Church, 502 DeKalb Street, Camden, SC 29020.

SHARE YOUR NEWS Send member news announcements to Emily Allen at eallen@scacpa.org.

Deadline for the Second Edition issue is April 20, 2011.

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South Carolina CPA Report

(888) 557-4814 | www.scacpa.org

Welcome New Members

Focus On Membership

AFFILIATE, non-CPA Marcie L. Chestnut Gaston, SC

Natalie K. Crisp Greenville, SC

Daniel J. Emanuel Greer, SC

Jessica A. Strickler Charleston, SC

Edwin L. Henry Columbia, SC

Jennifer A. Elder Charleston, SC

Branden T. Daniels Easley, SC

Leo A. Fary, Jr. Mount Pleasant, SC

Patrick C. Thomasson Greenville, SC

Richard D. Kirkpatrick, II The Citadel

Deana C. Groves Walterboro, SC

Christopher W. Gibbons Columbia, SC

Joel A. Gibbons Charleston, SC

Stuart F. Williams, Jr. Boiling Springs, SC

Carole H. Hill Mt. Pleasant, SC

Tamara L. Wood North Myrtle Beach, SC

Tatiana P. Hanna Charleston, SC Dawn Judd Charleston, SC Beverly Lloyd Beaufort, SC Anna V. Spann Charleston, SC Daniel G. Temple Murrells Inlet, SC

Adam Hoey Columbia, SC Richard O. Holley Aiken, SC Heather B. Koepenick Charleston, SC Justin W. Taylor Camden, SC George C. Theodore Greenville, SC

Kimberly Brody Lexington, SC Lori L. Grant Charleston, SC J T Massey Mt. Pleasant, SC Christy L. Pauley Simpsonville, SC Robert D. Ross Louisville, KY Debra E. Walworth Summerville, SC

FELLOW Joshua C. Almaroad Simpsonville, SC Robert L. Blyth, Jr. Charleston, SC Tara C. Bolton Florence, SC Stephen L. Bomar Greenville, SC Janet M. Breaman Greer, SC Carol M. Cissel Murrells Inlet, SC April M. Collins Aiken, SC

CPA CANDIDATE Phillip M. Barnhill Charleston, SC Kathryn L. Cole Greenville, SC Peter H. Cook Myrtle Beach, SC

James S. Jarvis North Charleston, SC Linda K. Jones Westwood, NJ Phillip R. McElhaney Langley, SC Sheree A. Moore Greenville, SC

ASSOCIATE Rebecca A. Allison Columbia, SC

Nancy J. Hune N. Myrtle Beach, SC

Thomas R. Costigan Greenville, SC Kristin E. Diggett Summerville, SC William C. Dodenhoff Columbia, SC

(888) 557-4814 | www.scacpa.org

Courtney R. Nappier Trenton, SC Benjamin D. O’Dell Simpsonville, SC Reshma N. Parikh Columbia, SC Rebecca Peters Summerville, SC Joseph C. Phillips Hendersonville, NC Joseph D. Pratt Simpsonville, SC Jay L. Reitzes Indian Land, SC Clarence J. Rogers, Jr. Mt Pleasant, SC Blair K. Salmon Columbia, SC Purvi Shah Greenville, SC

FIRM ADMINSTRATOR Beth Baggerly Beaufort, SC Laura Brumby Hilton Head Island, SC Debra Dicus Pawleys Island, SC Debra Price Lexington, SC Mary Silvestri Myrtle Beach, SC

J. E. Mitchell Winthrop University Vicki L. Neal Converse College Andrew J. Patterson Greenwood, SC Charles C. Prevost Mt. Pleasant, SC Brittany A. Stump Coastal Carolina Allison M. Taylor Wofford College Erin M. Valeka Converse College Austin Wang Winthrop University Stephanie E. Wehrung Coastal Carolina

LEAVE OF ABSENCE Fredrick M. Easter Charleston, SC Jeffrey E. Jackson

Casey A. Weidman USC Upstate Regan B. Wilbanks The Citadel

Duncan, SC

STUDENT

Corrine Zhang Winthrop University

Dennis Clark Winthrop University Nakeshia D. Gambrell Spartanburg, SC Victoria A. Garrett Converse College Neil Gonsalves Winthrop University Nicholas A. Greene The Citadel

South Carolina CPA Report

27

Chapter Connections

CHAPTER SPOTLIGHT Zoe M. Davis, CPA, CFE 2011 President of the Coastal Chapter of SCACPA SCACPA Member since 1997 What have you learned – about our association, fellow members or yourself – by serving as a chapter leader?

Having the opportunity to work with such positive and professional people made me realize the vast amount of volunteer hours needed for every event and division of our Association. I feel very fortunate to serve as an officer of the Coastal Chapter and appreciate the value that each member brings. What a great group of people! Serving other CPAs gives me an opportunity to meet fellow professionals in various specialty areas, which has helped me market our employee benefit plan auditing practice specialty.

What has been your proudest accomplishment during your tenure?

Our chapter officers did a great job getting the 2011 CPE events schedule out early to our members, which allows our members to plan better. We also were able to obtain member feedback, which helped us decide on some new course topics. We want to keep it fresh.

What advice do you have for those considering getting involved and engaged in SCACPA and their local chapter?

Just do it! It will be a very rewarding experience. Remember, when it comes to satisfaction and reward, you only get back what you put into it.

Zoe serves on the Strategic Membership Task Force. She is a Partner with Hubbard Davis CPAs LLP in Mount Pleasant, SC.

CHAPTER EVENTS CATAWBA Dues: $60 includes discounted registration to CPE seminars and free family/networking event • May: CPE (8 hours) • Summer: Family/Networking event • August-November: Professional Issues Update (4 hours) • August: Annual Business Meeting

CENTRAL Dues: $50 includes discounted registration to CPE seminars, free Oyster Roast, Family Day and Business Meeting Dinner; invitation to Entertainment Night and Golf Tournament • April 25: Golf Tournament at Columbia Country Club • May: CPE (4 hours) • May 21: Annual Barbeque at the Zoo • June 6-7: Two days of CPE with Jeffrey Lieman (16 hours) • August: CPE (4 hours) • August-November: Professional Issues Update (4 hours)

COASTAL Dues: $130 includes free registration to CPE seminars (additional registration fee for Tax Update) and free registration to family/ networking event • May 18: A&A Update with Elizabeth Gantnier (8 hours) • August-November: Professional Issues Update (4 hours)

FOOTHILLS Dues: $40 includes discounted registration to CPE seminars and three free social/networking events • April: Social Networking • May: Bankers’ Night

• August: A & A Update with Russ Madray (8 hours) • August-November: Professional Issues Update (4 hours)

GRAND STRAND Dues: $125 includes free registration to CPE seminars, Holiday Party and Student Recruitment Fair • May: CPE (4 hours) • August-November: Professional Issues Update (4 hours)

PEE DEE Dues: $50 includes discounted registration to CPE and free social events • March: Mid Tax Season Breather • August-November: Professional Issues Update (4 hours)

PIEDMONT Dues: $50 includes registration for CPE at a nominal fee and free holiday luncheon • March 17: Property Tax/Canadian Tax or Tax Managers/SALT, Income (4 hours PITMG2) • May 19: Corporate FIT/Sales Tax or International Tax/UCP, 1099, Wage (4 hours PITMG1) • June 16: Property Tax/Canadian Tax or Tax Managers/SALT, Income (4 hours PITMG2) • August 18: Corporate FIT/Sales Tax or International Tax/UCP, 1099, Wage (4 hours PITMG1)

SEA ISLAND Dues: $135 includes free registration to CPE seminars and two special events, Tax Breather Social and Professionals’ Night • March: Tax Breather • August-November: Professional Issues Update (4 hours) and CPE (4 hours)

Staff Contact: Sandra Oxner

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South Carolina CPA Report

(888) 557-4814 | www.scacpa.org

AICPA Leadership Academy A Step in the Right Direction

by Amanda Colgate, CPA S C ACPA m e m b e r s i n ce 2 0 0 6

T

hirty young CPAs from across the country converged in Durham, NC last fall for a three-day interactive leadership workshop designed to sharpen personal leadership skills and develop future leaders of the profession. This was the second annual AICPA Leadership Academy, and I was honored to be in attendance.

Day one of the Academy focused on empowering each participant to realize their leadership potential in both a personal and professional context using a leadership development module entitled Mind to Matter. Additionally, each participant brought a personal leadership challenge that they were currently facing. There were 30-minute sessions interspersed throughout the three-day agenda during which groups of five dissected these challenges and gave valuable and unbiased feedback to help resolve each issue.

The focus of the Academy shifted to the state of the CPA profession during the second day. AICPA President and CEO Barry Melancon, CPA discussed the top issues facing the profession and the AICPA’s role in working toward favorable resolutions to these issues. Robert Harris, CPA/CFF, the AICPA Chairman for 2009-2010, spoke to the group about his experiences during his year as Chairman.

Throughout the conference, Leadership Academy Alumni seated at each table helped facilitate discussion among participants. The Academy took an indepth look at the strengths, challenges,

In addition to strengthening leadership skills and providing an avenue for involvement in the leadership of the profession, the Academy provided a tremendous opportunity to network with other like-minded young CPAs. opportunities and threats facing the CPA profession. This led to the creation of priorities for the profession and the development of an action plan to get other young CPAs involved.

In addition to strengthening leadership skills and providing an avenue for involvement in the leadership of the profession, the Academy provided a tremendous opportunity to network with other like-minded young CPAs. Networking receptions were planned for each of the three evenings during the Academy. Mr. Melancon and Mr. Harris participated in a panel on the second evening during one of these receptions. Many of the questions posed to this panel related to achieving a balance between work and personal life. During dinner that evening, I was seated at a table with Mr. Melancon. This was an amazing opportunity to discuss the challenges and opportunities related to our career.

On the final evening, the group gathered at the Durham Museum of Life and Science for barbeque, bluegrass and outdoor lawn games. The Academy culminated

in an awards luncheon where we were each presented with a certificate of participation and a Leadership Academy pin. We left the Academy knowing that there would be opportunities during the upcoming year for our class to gather and further our leadership development and to help plan the 2011 Leadership Academy.

The 2010 Leadership Academy class was selected from 120 candidates who were sponsored by their employers or state societies. Information may be found on the AICPA website if you would like to sponsor a CPA under the age of 36 for this opportunity.

Interested in participating in the 2011 Leadership Academy? E-mail amanda@godshallcolgate.com.

ABOUT THE YOUNG CPAs SCACPA created the Young CPAs Leadership Cabinet to prepare young professionals for positions of leadership in the profession, the association, the community and the world. As young staff embark on their CPA career path, the Leadership Cabinet offers an enriching environment where participants learn new skills, access resources and shape ideas for the future. This unique two-year program combines in-person meetings, the opportunity to interact with CPAs across the state, and online shared experiences.

For more information on becoming a member of the Young CPA Leadership Cabinet, contact Emily Allen at eallen@scacpa.org or visit www.scacpa.org/ youngcpas.

2011 Continuing Education Courses Preview APRIL 2011 4/28

Nonprofit Conference

MAY 2011

JUNE 2011 6/1

Construction Industry

Webcast

6/6

Accounting for Leases: Revolutionary Changes to the Previous FAS 13 Requirements

Columbia

5/4

CPA Day at the State House

Columbia

5/16

Dangers in Improper Revenue Recognition and Accounting Issues

Hilton Head

6/7

Now I See! Comprehending OMB A-133

Columbia

5/16

Planning Cost-Efficient and Effective Audits

Hilton Head

6/13

Controller's Update

Myrtle Beach

6/13

Myrtle Beach

5/16

Liquidation of Business Entities

Hilton Head

Enhancing the Success of Your Organization with a Winning Culture

5/16

Negotiations and Tax Aspects of Buying and Selling a Business

Hilton Head

6/13

S Corps, LLCs and Partnership Update Myrtle Beach

6/13

Individual Income Tax Update

Myrtle Beach

5/17

Pitfalls and Problems

Hilton Head

6/14

Myrtle Beach

5/17

Meeting Workpaper Documentation Requirements and Writing Effective SAS 115 Reports

Hilton Head

Analyzing Costs, Productivity and Efficiency to Boost Your Bottom Line

6/14

Financial Forecasting

Myrtle Beach

A Complete Guide to Section 338 Acquisitions

Hilton Head

6/14

Choosing the Best Entity Structure

Myrtle Beach

6/14

Employment Issues—Reducing the Employer's Risk

Hilton Head

Make Money for You and Your Clients: Myrtle Beach Top Business Tax Planning Strategies

6/15

Lean Accounting

Myrtle Beach

5/18

Construction Industry

Satellite/ Webcast

6/15

Essential Skills for the Survival and Growth of Your Organization

Myrtle Beach

5/18

Accounting and Auditing Update

Hilton Head

6/15

Myrtle Beach

5/18

Substantive Analytical Workshop

Hilton Head

Determining How Much Money You Need to Retire

5/18

Advanced Technical Tax Forms Training—1040 Issues

Hilton Head

6/15

Social Security, Medicare and Prescription Drug Retirement Benefits

Myrtle Beach

5/18

Clearing the Fog in Advanced LLC and Partnership Structuring

Hilton Head

5/19

Audits of Benefit Plans Conference

Columbia

5/20

Trusted Advisor Workshop

West Columbia

5/24

North Carolina Professional Ethics Update (AM)

Greenville

5/24

North Carolina Professional Ethics Update (PM)

Greenville

5/26

Government Conference

Columbia

5/17 5/17

30

Columbia

As of January 13, 2011

South Carolina CPA Report

6/20-21 AICPA's Annual Accounting and Auditing Workshop

West Columbia

6/22

Satellite/ Webcast

Update on IRS Tax Controversy Procedure: Dealing with the IRS in the Real World

JULY 2011 7/6

Update on IRS Tax Controversy Procedure: Dealing with the IRS in the Real World

Webcast

(888) 557-4814 | www.scacpa.org

7/11

A&A Update

Asheville, NC

7/11

FIN 48

Asheville, NC

7/11

S Corporations; Compensations Redemptions and Estate Planning

Asheville, NC

8/8

How to Do Optional Step-Up in Basis Charleston Under ยง754 and Related Provisions

7/11

Limited Liability Companies and Partnerships: Losses, Liquidations Terminations, Continuations & Sales

Asheville, NC

8/9

Fraud and Forensics

Charleston

8/9

Charleston

7/12

Cases in Compilation & Review

Asheville, NC

Frauds and Internal Control for Revenue and Cash Receipts

7/12

Small Business Audits

Asheville, NC

8/9

S Corp and Partnership and LLC Tax Update

Charleston

7/12

New Critical Decisions in Selecting the Best Retirement Plan for Small Businesses in 2011

Asheville, NC

8/9

Individual Income Tax Update

Charleston

8/10

IFRS

Charleston

7/12

Clearing the Fog in Advanced LLC and Partnership Structuring

Asheville, NC

8/10

Managing Compilation, Review, and Accounting Services

Charleston

7/13

Yellow Book Audits

Asheville, NC

8/10

Charleston

7/13

Cases in Not for Profit Accounting and Auditing

Asheville, NC

Overview, Life Insurance, and Other Trusts

8/10

Charleston

7/13

Dispositions of Real Estate

Asheville, NC

Estate Planning Mistakes Practitioners Make and How to Fix Them

7/13

Using Tiered Partnerships Multiple Corporations, Series LLCs and Disregard Entities

Asheville, NC

7/20

Governmental Accounting & Auditing Update

Satellite/ Webcast

7/21

Are You Ready for Peer Review?

West Columbia

7/27

Estate Planning for 2011 and Beyond West Columbia

7/28

Estate Planning Local Issues

AUGUST 2011

West Columbia

Contributions, Rollovers, Distributions, and Estate Planning of IRAs, Roth IRAs, SIMPLESs and SEPs

8/18-19 Emerging Leaders Conference

Charleston

8/23-24 How to Conduct a Review Under the AICPA Practice-Monitoring Program

West Columbia

8/25

AICPA's Advanced Workshop: Practical Guidance for Peer Reviewers

West Columbia

8/31

Compilation and Review Update: SSARS 19 Implementation

Satellite/ Webcast

SEPTEMBER 2011

8/3

Governmental Accounting & Auditing Update

Webcast

9/14

Accounting & Auditing Update

Satellite/ Webcast

8/8

A&A Update

Charleston

9/19

West Columbia

8/8

Cash & Tax Basis Financial Statements

Charleston

LLC Practitioner's Workshop: A Case Studies Approach

9/20

West Columbia

8/8

Complete Strategies for Maximizing

Charleston

The Top 50 Mistakes Practitioners Make and How to Fix Them: Individual Tax & Financial Planning

(888) 557-4814 | www.scacpa.org

South Carolina CPA Report

31

2011 Continuing Education Courses Preview 9/21

Compilation and Review Update: SSARS 19 Implementation

Webcast

10/20

Personal Financial Planning Conference

West Columbia

9/21

Fair Value

Greenville

10/25

West Columbia

9/21

Frequently Asked Questions in GAAP Greenville

Basis, Distributions, and Loss Limitation Issues for S Corporations, LLCs and Partnerships

9/21

Choosing the Best Entity Structure Under the New Tax Law in 2011

Greenville

10/26

Partnerships & LLCs Update

Satellite/ Webcast

9/22

How to Use a Service Organization Report and Practice Problems with Related Party Transactions

Greenville

10/26

Strategies and Tactics in the New War Against Higher Individual Taxes

West Columbia

9/22

Accounting Standards Update and Acquisition Accounting

Greenville

NOVEMBER 2011

Advanced Tax Structures: Using Tiered Partnerships Multiple Corporations, Series LLCs, and Disregard Entities

Greenville

9/22

9/23

How to Analyze Financial Statements Greenville and Troublesome A&A Issues

9/23

Using Tax Basis and Other OCBOA Effectively

Greenville

9/23

Hot IRS Tax Examination Issues for Individuals and Businesses

Greenville

North Carolina Professional Ethics (AM)

West Columbia

9/26

North Carolina Professional Ethics (PM)

West Columbia

9/28

Common Frauds and Internal Controls for Revenue, Purchasing and Cash Receipts

West Columbia

Top Ten Fraud Schemes: How to Detect and Prevent Them

West Columbia

9/26

9/29

OCTOBER 2011 10/5

32

As of January 13, 2011

Accounting & Auditing Update

Webcast

10/13-14 Industry Conference

Columbia

10/17

Investing in Private Companies

Greenville

10/17

Investing in Real Estate

Greenville

10/18

Dealing with Troubled Real Estate

Greenville

South Carolina CPA Report

11/3-4 CPA Summit and Annual Member Meeting

Columbia

11/7

S Corporations Practitioner's Workshop: A Case Studies Approach

West Columbia

11/8

Fiduciary Income Tax Returns Form 1041 Workshop

West Columbia

11/9

Partnerships & LLCs Update

Satellite/ Webcast

11/15

Governmental Bonus Workshop

Columbia

11/16

Tax Accounting Methods

Satellite/ Webcast

11/17

Women in Leadership Conference

Columbia

11/21

Non-Profit Financial Manangement

West Columbia

11/22

The Coming IFRS Conversion

West Columbia

11/28

Performance Analysis

Greenville

11/29

Fraud Alert

Greenville

11/29

The Best Income Tax, Estate Tax, and Financial Planning Ideas of 2011

West Columbia

11/30

Tax Accounting Methods

Webcast

11/30

Advanced Tips and Tricks of West Columbia Investment Tax Management to Enhance Client Wealth Accumulation and Retirement Security

(888) 557-4814 | www.scacpa.org

DECEMBER 2011 12/1

Buying and Selling a Business-Tax and Non-Tax Aspects

West Columbia

12/1

Technology Conference

Columbia

12/2

Increasing the Top and Bottom Line

West Columbia

12/5

Religious Organizations: Advanced Issues for CPAs

West Columbia

HOA & Condos: Advanced Issues

West Columbia

12/6

12/8-9 Accounting & Auditing Conference

Charleston

12/12

Federal Tax Update with Walter Nunnallee

Myrtle Beach

Federal Tax Update with Walter Nunnallee

Charleston

12/14

Annual Tax Update

Satellite/ Webcast

12/14

Federal Tax Update with Walter Nunnallee

Columbia

12/15

How to Go Paperless—Transforming to a Digital Practice Model

Columbia

Federal Tax Update with Walter Nunnallee

Greenville

12/16

Construction Industry

Webcast

12/16

Outlook, Word, Excel & Adobe Tips, Tricks and Techniques

Columbia

12/16

Accounting Educators' and CPA Practitioners' Forum

West Columbia

12/19

Update on IRS Tax Controversy Procedure: Dealing with the IRS in the Real World

Webcast

12/19

Acquisitions to Grow the Business

West Columbia

12/20

Governmental Accounting & Auditing Update

Webcast

12/20

Corporate Financial Tune-Up

West Columbia

12/21

Compilation and Review Update: SSARS 19 Implementation

Webcast

12/13

12/15

(888) 557-4814 | www.scacpa.org

12/21

The Complete Trust Workshop

West Columbia

12/22

Partnerships & LLCs Update

Webcast

12/23

Accounting & Auditing Update

Webcast

12/27

Tax Accounting Methods

Webcast

12/28

Annual Tax Update

Webcast

12/28

CPE Frenzy

West Columbia

12/29

Annual Tax Update

Webcast

12/29

CPE Frenzy

West Columbia

JANUARY 2012 1/9

Construction Industry

Webcast

1/10

Update on IRS Tax Controversy Procedure: Dealing with the IRS in the Real World

Webcast

1/10

Complete Guide to Preparing Limited Liability Company, Partnership and S Corporation Federal Income Tax Returns

West Columbia

1/11

Governmental Accounting & Auditing Update

Webcast

1/11

Payroll Taxes, Benefits and 1099 Reporting: Everything You Need to Know

West Columbia

1/12

Compilation and Review Update: SSARS 19 Implementation

Webcast

1/13

Partnerships & LLCs Update

Webcast

1/17

Accounting & Auditing Update

Webcast

1/17

Preparing Individual Tax Returns for New Staff and Para-Professionals

West Columbia

1/18

Tax Accounting Methods

Webcast

1/18

The Complete Guide to Preparing Limited Liability Company, Partnership and S Corporation Federal Income Tax Returns

West Columbia

1/19

Annual Tax Update

Webcast

South Carolina CPA Report

33

Breaking Tradition, continued from page 12 SCACPA: What excites you most about teaching the next generation of CPAs? How do you hope to equip your students for the firms of the future, and what do you think those will look like?

Anderson: Students today face an amazing future. CPAs continue to evolve from being the gatherer of numbers and producing results to unprecedented roles as advisors, protectors of information and business planners.

Recently I automated the accounting process for my personal, CPE and CPA clients and now download data from the bank or credit card rather than key it into my system. That allows me to focus on reviewing the results and using those results to plan for the future. Today, the entire process from the sale or purchase to accounting system and tax return can be completed from a single data entry point. In my classes, students learn to use online homework and testing systems, web-based conferencing via Skype and GoToWebinar, remote computer access via LogMeIn, research using FASB and AICPA web-based resources as well as the usual Word and Excel programs. My students don’t receive any information or assignments on paper, nor do I require any assignments to be submitted on paper.

As in the past, the firm of the future’s primary focus will be to assure that the data generated by an individual or business fairly represents their financial position and is used to help them achieve their goals. The change is how we’ll accomplish that goal and how much it will cost. We no longer have to travel to a client’s office and look at the books, or meet in person to discuss plans. Instead, we can meet via Skype and share documents online to accomplish everything we need to do. As they become proficient with this style of meeting and processing data, CPAs will move from interacting with management, bankers and investors primarily during tax season to continuous interaction via the cloud on computers, cell phones and who knows what the next greatest device will be, wherever and whenever we choose. The next generation of accountants will be very skilled in technology and limited only by their desire, work ethic and ability to engage their firm in the new business model.

SCACPA: From education to public practice, any thoughts on how the profession is changing and will continue to evolve?

Anderson: My students are given homework assignments that can be accessed 24/7 with instant feedback on performance. They can view the day’s class lecture and activities at any time via a Windows Media Movie recording, and communicate with me seven days a week via my cell phone or Skype. My Spring 2011 auditing class will learn to conduct a live webinar and be able to attend class and participate via webinar if they can’t show up in person. The business world is changing in the same way. I always ask attendees at my CPE seminars if they or their clients operate in the cloud, and approximately 90 percent say no. Then I ask if they do online banking, web-based research, social media or track their CPE on SCACPA’s website, and almost everyone says yes. As Jason Blumer says, we are all stair-stepping into the clouds. We cannot sit back and let our clients and the business world push and pull us into this new environment. The next generation of accountants will not only help us make that transition, but enable us all to become leaders in effectively and efficiently making the change.

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See what you’re missing visit www.scacpa.org/socialmedia 34

South Carolina CPA Report

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(888) 557-4814 | www.scacpa.org

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