Q2 CPA Report 2013 by South Carolina Association of CPAs

S e cond Edi tion 2 0 1 3 South Carolina Association of Certified Public Accountants

Preparing the Next Generation of CPAs

GEN X

Four Generations, One Workforce = Strategic Opportunity

2013 CPA WORKFORCE

Special Section for YCPAs

South Carolina Hiring Plans Point to Bright Future

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CPA Report South Carolina Association of CPAs

South Carolina Association of Certified Public Accountants Magazine Volume 43, Second Edition 2013 Officers Michael r. Putich, cPA, Chair sharon e. Mann, cPA, Chair-elect J. Bratton fennell, cPA, Vice Chair robert M. Tilton, cPA, Secretary-Treasurer Timothy L. Baker, cPA, Immediate Past Chair BOArD Of DirecTOrs William R. Barefoot, CPA Charles E. “Eddie” Brown, CPA Patrick P. Carey Jr., CPA Zoe M. Davis, CPA Amanda Hallman, CPA Suzanne Harnois, 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 W. Ashley Thiem, CPA Beth T. Zamorski, CPA cHief eXecUTiVe Officer Erin Hardwick Pate, CAE MANAGiNG eDiTOr Maureen Taylor GrAPHic DesiGNer Lisa S. McGee cONTriBUTiNG wriTers Melissa Barbour, CPA Reva Brennan, MPA, CAE, IOM Jason Ryan Dorsey Russ Gladden, CPA Erin Hardwick Pate, CAE Chakisse Newton Michael Putich, CPA Maureen Taylor W. Ashley Thiem, CPA 2013 eDiTOriAL BOArD Charles E. Alvis, CPA, MPA, MBA, Chair Tim Baker, CPA John B. Brantley, CPA Robert Charles, CPA Amanda S. Colgate, CPA Lisa S. Cooke, CPA Lesley H. Kelly, CPA Margaret L. Lattimore, CPA A. D. “Dave” Masters, CPA Erin Hardwick Pate, CAE Derrick B. Stark, CPA

Special Section: Growing the Profession 20

Preparing the Next Generation of CPAs for the Workforce

South Carolina Hiring Plans Point to Bright Future

Diversity in the Profession

Four Generations, One Workforce = Strategic Opportunity

In This Issue 10

Benefits Continue to Grow for Young CPAs

Young CPAs Give Back to Community

YCPA Network Offers Leadership, Networking Opportunities

Influence Strategies: Increase Your Influence by Improving Your Language

Meet SCACPA’s Future Leaders

Advocacy for the CPA Profession

Thank You to Our PAC Donors

The Challenge of Providing “Comfort Letters” for Clients

In Every Issue 4 6 8 34

From the Chair Association News On Your Behalf Welcome New Members

35 37 38 42

Member News Chapter Connections Upcoming CPE 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 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 SCACPA. (888) 557-4814 | www.scacpa.org

South Carolina CPA Report

From the Chair “Our world as CPAs, as well as our clients’ world, is changing rapidly. Technology, evolving demographics in the profession and specialization are just a few of the major issues we face as CPAs.”

Michael Putich, cPA SCACPA Chair SCACPA member since 2000

t has truly been an honor to serve

are just a few of the major issues

Chapters provide convenient access

my profession as the chair of

we face as CPAs. And because we

to important services. Chapters,

the South Carolina Association

as CPAs are wrestling with these

we discovered, were consumed in

of CPAs. When I first became an

issues, SCACPA must anticipate our

handling administrative burdens and

officer for SCACPA, I thought my

professional needs and meet them.

meeting performance benchmarks. Now chapters are being freed from

work would be to ensure that the

most administrative tasks and are

quickly realized that was not the case.

eVOLUTiON Of PrOfessiONAL sOcieTies AND VOLUNTeer serVice

We have competent professional staff

One particular goal in our strategic

that fit their specific geographic area.

who do that.

plan calls for a review of SCACPA’s

The end goal is more flexible and

association was operating at the highest possible level every day. I

subsequently being challenged to develop member-oriented programs

internal structures, most of which

highly-functioning chapters offering

My job, and the job of the SCACPA

have been in place for many decades,

needed services in sync with SCACPA.

board, is to guide the association

some say up to five decades or more.

into the future. To ensure SCACPA

With so many changes going on in

Again, for many decades, long-

continues to be relevant to our

the world of CPAs, the association’s

standing committees have taken on

members and help you grow in your

structures and methods for engaging

important issues and interest areas for

profession. That is a daunting task.

members are most likely dated.

SCACPA. And while the need remains

Our world as CPAs, as well as our

Several task forces and work groups

for some committees, research tells

clients’ world, is changing rapidly.

studied the way in which we engage

us that busy professionals are less

Technology, evolving demographics

and serve members through chapters

interested in continuous services on a

in the profession and specialization

and committees.

committee, and would instead prefer more “micro-volunteer” or shortterm opportunities to serve. So, as SCACPA seeks to find a place for all who are interested in giving back to their profession, you will soon see a new menu of committees, task forces, action teams, roundtables and other types of volunteer opportunities. Look for more information on this in the next issue of the CPA Report.

t SCACPA Board Chair Michael Putich, CPA, with board members Tim Baker, CPA, and Penny Lewis, CPA.

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I asked myself, “How can one volunteer affect the sort of change that can really make a difference for the 3,700 CPAs who are members of SCACPA?“ And then, it came to me. I didn’t have to make huge or dramatic change. I needed to serve as the captain of the ship, leading the direction and ensuring that it remains on course.

MY MeMOrABLe MOMeNTs My term as board chairman ends June 30, and as I reflect back on some of the most memorable moments, top of this list is traveling the state with the regional series of Professional Issue Updates (PIUs). As a new managing partner for my firm, I wasn’t sure initially if I would be able to devote the time – nine full days in all – to this undertaking. I am glad I did. A professional speaker I am not, but I am sincerely interested in meeting my colleagues from all corners of the state. It was an extremely rewarding experience to meet so many of you.

cONTiNUeD cOMMiTMeNT In accepting the leadership helm for

As board chair for SCACPA, I have

SCACPA, I thought it would be a

also served as a representative on

daunting task – leading a group of

the AICPA governing council. What

my peers, my colleagues. I asked

does this mean? It means I attend

myself, “How can one volunteer

three meetings of the council during

affect the sort of change that can

my tenure as chairman. During

really make a difference for the

these gatherings, some 450 members

3,700 CPAs who are members of

of council, each state with its

SCACPA?“ And then, it came to

allocated number of representatives,

me. I didn’t have to make huge or

come together to discuss the issues

dramatic change. I needed to serve

facing the profession and the AICPA.

as the captain of the ship, leading the

As a member of council, I became

direction and ensuring that it remains

aware of issues that, as a practitioner,

on course. And I did so with the

I never took the time to understand.

support and counsel of the 19 other

This was an eye-opener. In 2012,

CPAs who serve on the SCACPA

council met in Washington, DC to

board with me.

celebrate AICPA’s 125th anniversary.

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

During this meeting, we spent a

Though I will be passing the torch

day on Capitol Hill conversing with

onto the very capable Sharon Mann,

the South Carolina Congressional

I remain as committed as ever to

delegation and their staff on tax

SCACPA and to the profession. I

and other policy issues important

can tell you first-hand, the more you

to our profession. This, too, was a

give, the more you receive, and I have

very rewarding and educational

received so much through my service.

experience.

Thank you for the opportunity. n

South Carolina CPA Report

SCACPA

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

To empower our members to grow professionally. We believe that by providing education, advocacy, communication, and leadership we will ensure our success.

Erin Hardwick Pate, CAE Chief Executive Officer Ext. 104, epate@scacpa.org Reva E. Brennan, MPA, CAE, IOM Chief Operating Officer Ext. 103, rbrennan@scacpa.org Karen M. Hancock, CPA Finance Director Ext. 108, khancock@scacpa.org Maureen Taylor Marketing and Member Services Director Ext. 105, mtaylor@scacpa.org Glenna P. Osier Peer Review Manager Ext. 107, gosier@scacpa.org April C. Cox Education Manager Ext. 110, acox@scacpa.org Sandra P. Oxner, CMP, CMMM Chapter & Special Events Manager Ext. 112, soxner@scacpa.org Kristi Niro Membership & Communications Coordinator Ext. 106, kniro@scacpa.org Kay Tesney Office & Member Services Assistant Ext. 100, ktesney@scacpa.org

scAcPA welcomes New staff Members SCACPA recently welcomed two new staff members. Kristi Niro is the new membership and communications coordinator and Kay Tesney is the office and member services assistant. As membership and communications coordinator, Kristi is responsible for managing the SCACPA website, as well as electronic communications and social media. She also assists with member recruitment campaigns and processes new member applications. She previously served as online advertising manager at Push Digital, a political consulting firm in Columbia. Kristi is a graduate of the University of South Carolina where she earned a bachelorâ&#x20AC;&#x2122;s in public relations. Outside of the office, Kristi enjoys cheering on

the Gamecocks, traveling and spoiling her Yorkie, Brutus. Kay is the first point of contact for SCACPA members, nonmembers, vendors and guests in the office. She processes member information and renewals, assists staff members with special projects and oversees office operations. Kay has over 30 years of experience in office management and administration in both the nonprofit and profit fields. She most recently served as the accounting manager with Scott Law Firm. She is originally from Chapel Hill, N.C. Kay enjoys reading, cooking, gardening, traveling and spending time with family. She and her husband, Phil, have two children and one grandchild.

scAcPA seeks Peer review Technical reviewer The South Carolina Association of CPAs (SCACPA) is seeking a contract technical reviewer for the American Institute of Certified Public Accountants (AICPA) and SCACPA Peer Review programs. The technical reviewer is charged with the responsibility for performing technical reviews in accordance with the AICPA Standards interpretations and guidelines outlined in the Peer Review Program Manual, Report Acceptance Body (RAB) Handbook and the AICPA Oversight Handbook. The role of the technical reviewer is to assist the Peer Review Committee in its report acceptance and oversight functions.

SCACPA offers hourly compensation for time spent in the technical review process, support to attend the Peer Review Committee meetings and assists with some expenses related to attendance at the Annual AICPA Peer Review Conference. Individuals interested in applying for this position should submit a cover letter with resume to Glenna Osier, Peer Review Manager, gosier@scacpa. org or 570 Chris Drive, West Columbia, SC 29169, or fax 803-791-4196 by June 1, 2013. Visit scacpa.org for details.

CLICK

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Durant Named to Joint Trial Board George DuRant, CPA, has been nominated to the AICPA Joint Trial Board. The three-year term officially begins following a formal election to the Joint Trial Board by the AICPA Council at the Fall Council/Annual Members Meeting in October. A SCACPA member since 1989, George is with DuRant, Schraibman & Lindsay, LLC, a public accounting firm in Columbia, South Carolina. He holds accreditations in business valuation from AICPA and the American Society of Appraisers. The Joint Trial Board consists of 36 members elected for a three-year term by the nominations committee and ratified by council. The board provides for uniform enforcement of professional standards by adjudicating disciplinary charges against state society and AICPA members.

Apply for a scAcPA educational fund scholarship Do you know a student majoring in accounting? The SCACPA Educational Fund is now accepting scholarship applications. Qualifications: • South Carolina resident • Rising junior or senior majoring in accounting (or Master’s Degree student) at a S.C. college or university. • GPA of no less than 3.25 overall (4.0 scale). • GPA in accounting no less than 3.5 (4.0 scale). • Applications must be received complete with all attachments Scholarships range in amounts from $500 to $2500. Applications must be postmarked by June 1, 2013.

Promoting the Profession

central chapter raises funds for Breast cancer SCACPA’s Central Chapter raised funds for breast cancer during its recent Entertainment Night. In addition to an evening filled with fun and great door prizes, the chapter received donations totaling $4,185 for breast cancer in memory of former SCACPA board member and chapter officer, Malynda Grimsley. Donations went to Palmetto Health Foundation and Lexington Medical Center Foundation. Thank you Above: Central Chapter President Matthew Hodges, CPA, with to all who attended and to those who Burkett, Burkett & Burkett (second from left), presents a check supported this worthwhile cause.

to staff at Palmetto Health Foundation. Right: Sylvia Kitchens presents a check to Kelly Jeffcoat, with Lexington Medical Center.

Your staff deserves the best training available but providing it can be a challenge. Now you can bring top-quality programs directly to your office with the South Carolina Association of CPAs’ Onsite Customized Training program.

Get Started Today! Contact Reva Brennan, MPA, CAE at (803)791-4181 x103 or rbrennan@scacpa.org, or visit www.scacpa.org/onsitetraining.

For more information, or to download an application, visit www. CLICK scacpa.org/scholarships

On Your Behalf

or 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.

LeGisLATiVe UPDATe Tax Conformity - The 2013 legislative session began Jan. 8. SCACPA hit the ground running with two important issues. One of SCACPA’s significant and perennial goals is to pass federalstate tax conformity legislation early in the calendar year. Initiated annually by the South Carolina Department of Revenue (SC DOR), Senate bill 261 was introduced Jan. 17 and remained in the Senate for two months, until March 20. The delay was caused by a $200 tax increase for the wealthiest South Carolina citizens, which was part of the original conformity bill. Following weeks of debate, senators decoupled from the troublesome federal provision. The bill updates the S.C. conformity to the Internal Revenue Code to Jan. 2, 2013. The January date was required instead of the normal Dec. 31 date, due to delay to Jan. 2 for the president's signature on the federal bill. The code

sections to which South Carolina has conformed are the same sections as last year with the exception of: 1. The conformity bill removes the transition provision from last year that would have allowed automatic conformity for certain late-passing provisions. The provision was specific to one year and was no longer needed. 2. The conformity bill decoupled from the federal change that will limit the itemized deductions of certain taxpayers in 2013 and later. This provision has no impact on 2012 returns being prepared now. The SC DOR has also not announced how this additional S.C. deduction for 2013 and later will be presented on the returns. Though the conformity bill passed much later than desired, several legislators went to bat for CPAs over and over.

The conformity legislation was signed into law by the governor on April 8. Those that deserve recognition are: Sens. Billy O’Dell, Nikki Setzler, Brad Hutto and Rep. Brian White. See SCACPA’s website at www.scacpa. org for a link to the bill and an update on its status. S.C. Board of Accountancy (BOA) - The Board of Accountancy is prohibited from working on legislative changes they wish to see made, therefore SCACPA has been advocating for the passage of House bill 3459. There are a number of technical clean provisions in this bill. Most importantly, the bill exempts CPAs from having to become a licensed private investigator, should they offer forensic services. In addition, the bill secures two full-time staff members, a board administrator and an investigator. Both would be required to be a CPA. The BOA now has four staff that make up slightly more than one full-time equivalent. Rep. Bill Sandifer, chairman of the House Labor Commerce and Industry Committee sponsored H.3459 and it passed the House of Representatives 110-0. Many thanks go to Chairman Sandifer for his efforts.

tPictured (from left): Erin Pate, SCACPA; Terry Grayson Caprio, KPMG; Phil Snipes, Ernst & Young; Gov. Nikki Haley; Vincent Mooney, Deloitte; Barbara Koosa Ryan, Grant Thornton; Jason Sweatt, Ernst & Young; Tammy Velasquez, Ernst & Young; and Bill Kastler, PWC. The group met for 45 minutes with the governor to discuss business, economic and accounting issues in the state.

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As we go to press, the bill is being debated in a Senate subcommittee. To view either of these two bills, go to www.scstatehouse.gov and type in the bill number in Quick Search.

QUArTerLY MeeTiNG wiTH s.c. DePArTMeNT Of reVeNUe SCACPA’s quarterly meeting with senior staff of the state Department of Revenue took place Feb. 22. New DOR Director, Bill Blume, CPA, met with six SCACPA representatives to discuss the data breach securitization efforts, how the department plans to handle fraudulent returns and more. In response to the data breach at the S.C. Department of Revenue, the DOR has implemented new systems and filters designed to identify fraudulent returns. In SCACPA's regular meetings with the DOR, we asked them what would happen to a taxpayer that files a legitimate return subsequent to a fraudulent return filed in their name. We also asked if the process would be different if the fraudulent return was processed, as opposed to those that were stopped. The DOR has assured us that the legitimate return will be processed. It may be delayed and the legitimate taxpayer may be asked to go through a verification process, during which they will be required to answer identity verification questions by mail or at a secure website. However, legitimate taxpayers do not need to worry that they will lose their refunds to fraudulent filers. If the taxpayer receives a letter from the DOR requesting that they verify their identification, they should follow the instructions on the letter to free up the refund. If they have any questions about the legitimacy of the letter, they should call the SC DOR individual tax information line in the contact

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section of www.sctax.org. The DOR will take action against the fraudulent filer. Send your concerns and questions for the SC DOR to SCACPA CEO, Erin Pate, erinhardwickpate@scacpa.org Tax guides for State Legislators - This guide, developed annually by the Taxation Task Force, was hand-delivered Feb. 20 to state legislators. The CPA profession receives much fanfare for the production of this resource and in so doing raises the visibility of CPAs, their expertise and their contributions. The guide helps keep the profession “top of mind” with policymakers.

pPictured above: SCACPA representatives meet quarterly with the director of the State Department of Revenue and agency senior staff. Pictured here from the Feb. 22 meeting are (from left) Tony Wrobel, Webster Rogers; Jeff Thordahl, Copper Dome Strategies; Bill Blume, DOR’s new director; John McCormack, DOR’s senior policy administrator; and Charles Ayers, McDowell Pearman.

Improving Services, Improving Systems - Drawing upon the recent national study called Horizons 2025, which through extensive research forecasts where the profession will be in 12 years; SCACPA is making plans to invest in new technologies to meet members where they are in terms of their work world. Research will soon be complete and an investment plan will be approved by the SCACPA board later in 2013. Some of the trends, which will impact the services SCACPA offers members are: • A mobile world where going to work includes flexible locations and schedules that suit individual professional needs and personal lifestyles. Horizons 2025 predicts that the next decade will see a reinvention of the workplace. Emerging Internet cloud and mobile technologies are increasingly shifting work lives away from the corporate office altogether and toward an in-my-

own-place and on-my-own-time work regimen. • Smartphones, tablets and other mobile computing devices will become the go-to-computing devices for most of the world. • Information and communication technologies will better enable globally distributed work. These trends and others will impact the way you consume CPE, how you want to receive information and the way by which you connect with your colleagues. SCACPA has an eye on these changes and is determined to remain your professional home in South Carolina! n

Erin Hardwick Pate, CAE, has served as SCACPA’s CEO since 2005. She currently serves as president of the CPA Society Executives Association, a member of the S.C. Secretary of State’s Nonprofit Advisory Council and Francis Marion University Advisory Council for the Non-Profit Leadership Institute.

South Carolina CPA Report

Young

CPA Benefits Continue to Grow for Young CPAs by W. Ashley Thiem, CPA SCACPA member since 2008

elcome to the YCPA section of the CPA Report. The section features content written by young CPAs for young CPAs. The YCPA Leadership Cabinet is launching this feature section to keep young CPAs in South Carolina up to date on CPE, social activities geared toward younger CPAs, career tips and our annual Emerging Leaders Conference. As the Young CPA Network wraps up its inaugural year, and I complete my term as chair of the cabinet, I am very excited about the goals we have already achieved. The YCPA Network not only was able to host several events, but was able to foster growth in involvement for Young CPAs in SCACPA and our profession as a whole. In 2012, the YCPA Network hosted three events with the help of local SCACPA chapters that were free to members of the network. Two of those were networking events, one in Greenville with the Young Lawyers and Young Bankers and one in Charleston with the Young Lawyers. The third event was a welcome reception for the new CPAs that participated in the oath ceremony in May 2012 in Columbia. We are also working with every SCACPA chapter to host various networking opportunities so we can reach all areas of South Carolina. Our goal is to have two events in each chapter region, one with just young CPAs in your area and one with another profession (lawyers, bankers, etc.). Another YCPA Network benefit is that you will receive $20 off the Emerging Leaders Conference that the YCPA Leadership Cabinet hosts each year. The conference has 16 hours of CPE and is geared towards CPAs under age 35. Starting with our 2012 conference, Emerging Leaders will be held in Columbia every year. By switching to a more centralized location and with the YCPA Network discount, we had more than 60 participants this year. I am sure we will reach 100 in the next few years. Be sure to look for advertisements for the Emerging Leaders Conference in the coming year and mark the dates on your calendar. This

South Carolina CPA Report

“The YCPA Network not only was able to host several events, but was able to foster growth in involvement for Young CPAs in SCACPA and our profession as a whole.” will soon be the premiere learning and networking event for Young CPAs in South Carolina. Finally, as a member of the YCPA Network you are eligible to apply for the YCPA Leadership Cabinet. This is a great opportunity to get to know other young CPAs from around the state and meet the leaders of SCACPA. If you would like more information about the cabinet, please feel free to email me or visit our page on the SCACPA website, where you will find a link to the Cabinet application - www.scacpa.org/YoungCPAs. Applications are due each year by Dec. 31. I encourage any young CPA to sign up for the YCPA Network. The membership fee for Jan. 1,

2013 – June 30, 2014 is $30. The network offers access to invaluable networking events and

the opportunity to meet and form relationships with other young CPAs across the state. We look forward to another successful year as the benefits of membership continue to grow. n

Ashley Thiem, CPA, is co-president of Thiem & McCutcheon, CPAs, PA in Charleston. He is past chair of the Young CPAs Leadership Cabinet, a SCACPA board member, and a member of the Legislative & Advocacy Committee and the Behavioral Standards Committee.

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Young CPA’s Give Back to Community by Melissa Barbour, CPA SCACPA member since 2011

he young CPA Leadership Cabinet is a group of dedicated individuals within our profession representing the Young CPA Network, a division of SCACPA. The motivated young CPAs that make up the Cabinet strive to bring a positive outlook to our profession and the SCACPA organization by encouraging current and future CPAs to give back to their local communities. On an annual basis, the cabinet members come together to help out a South Carolina charity as a way of saying thank you to everyone one who calls the great Palmetto State home. On Oct. 19 the Young CPA Leadership cabinet had the opportunity to work with Lowcountry Orphan Relief (LOR), a nonprofit organization serving children in the tri-county area. LOR focuses on providing critical supplies to children who have been abused, neglected or removed from their families. Through the generous donations of local residents, LOR is able to provide clothing, school supplies and uniforms, coats, toiletries, toys, books, etc. to children in our state who need it most, within 48 hours of a request. LOR has aligned itself with schools, foster parents and other government agencies to better identify those suffering from abuse or neglect who are living without some of the most basic items. These groups are able to speak out on behalf of those who may not otherwise come forward or whose struggles may go unnoticed. By working closely with these organizations, Lowcountry Orphan Relief provides numerous supplies to suffering children. LOR takes it a step further by offering abused children biannual trips outside of their shelters or foster homes to places like Folly Beach so they can enjoy just being a kid.

Numerous donations to LOR are received daily. It is important to sort and organize the collections to allow orders to be completed accurately. Cabinet members sorted through hundreds of boxes and bags of donated items, identifying those too worn or outdated to use for satisfying orders. Members not sorting or filling orders ensured the supplies were organized efficiently. Uniforms belonged in one room, coats in another. Shoes in one area, school supplies in another. All donations are stored in a specific room and are organized according to size, season and purpose. With so many donations coming in, the bags of items are often placed in rooms but there is no time to organize them. Cabinet members were able to clean and organize rooms overflowing with donations to allow orders to be more easily and quickly filled. It was a truly rewarding experience for all participants in the annual community service day. In the future, the cabinet hopes to expand its charitable efforts by encouraging more young CPAs to become involved and increasing the number of events throughout the year. For additional information on this wonderful organization or to offer donations, please contact Lowcountry Orphan Relief at (843) 747-4099 or visit their website at www. lowcountryorphanrelief.org. n

Melissa Barbour, CPA, is a staff accountant with WebsterRogers, LLP in Charleston and a member of the YCPA Leadership Cabinet. q Pictured below: Members of the Young CPA Leadership Cabinet sort clothes at Lowcountry Orphan Relief.

At their location in North Charleston, Valerie Vincent Clothes Closet, orders are filled for each child. The orders identify each child’s specific needs and clothing size. The young CPA leadership cabinet members were able to complete orders for dozens of children. Each order provides the child with at least a week’s worth of clothing, a winter coat, shoes, school supplies and uniforms if needed. The size of Valerie Vincent Clothes Closet and the volume of goods stored in the facility made it a challenging yet enjoyable task for cabinet members. The orders filled by cabinet members were brought to children at shelters and schools in the tri-county area.

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South Carolina CPA Report

Young

CPA YCPA Network Offers Leadership, Networking Opportunities by Russ Gladden, CPA SCACPA member since 2010

nitially I joined the young CPA network to just meet some other young CPAs from around South Carolina. The first four years of my career, I was the only one in our office under the age of 35, and have, on occasion had a challenging time understanding the mindset of my coworkers. I thought it would be great to meet some other CPAs from the same generation as myself with similar approaches to problem solving, and at similar points in their careers. After joining, this seemed to be a common focus of many of the members of the network, and it has been great to have a network of like-minded professionals, with different backgrounds, with whom I can exchange ideas. After attending the Emerging Leaders Conference in 2011, I realized there is much more value in being a member of the network than I had imagined. The conference offered opportunities for leadership training not available to me before. The CPE related to managing generational differences, making good first impressions, as well as relevant technical updates were all geared toward developing young professionals to become excellent leaders. The networking events held after the conference also offered opportunities to meet young professionals outside the structure of CPE sessions. It was great coming back to the Emerging Leaders Conference in 2012 and seeing many of the same young professionals I had met the year before.

â&#x20AC;&#x153;After attending the Emerging Leaders Conference in 2011, I realized there is much more value in being a member of the network than I had imagined.â&#x20AC;? I look forward to the continued development of the Young CPA Network. I have already gained so much from a program that is still in its infancy. As membership grows, I am eager to see the many benefits that will come with having a larger, stronger network of young professionals. n

Russ Gladden, CPA, is a senior account associate with The Springs Industry in Lancaster and a member of the YCPA Leadership Cabinet and the YCPA Network.

Get social with SCACPA on Facebook, Twitter and LinkedIn!

SAVE THE DATE!

2013 Emerging Leaders Conference Aug. 22-23, 2013 Marriott City Center Columbia, SC 12

South Carolina CPA Report

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Influence Strategies: Increase Your Influence by Improving Your Language by Chakisse Newton President, Cardinal Consulting, LLC

ne of the easiest ways to dramatically increase your ability to influence others is to improve your language skills. Quite apart from learning lofty language, improving your use of language is a simple matter of utilizing the subtle effect that word choice can have on creating positive emotions. Here are five ways to use language as a tool to get better results and influence those with whom you interact:

remind the listener of the benefits of following your suggestion.

If you’ve ever used a consumer product for your skin or hair, you’ve read directions on how to best use the product. Carol’s Daughter, a line of natural skin and hair care products, takes their instructions to the next level: “Dab onto a cotton ball, smooth over face and smile – radiant skin!” Stating benefits reinforces the user’s desire to follow instructions.

Make instructions fun (especially if you have to give obvious instructions).

Remember when a McDonald’s patron won a sizable lawsuit when she was seriously injured after spilling scalding hot coffee on herself? Starbuck’s warns without insulting us with the simple reminder, “Careful, the beverage you are about to enjoy is hot.” It sounds so much better than, “You know the beverage is hot. We know the beverage is hot. Please don’t burn yourself and then sue us.”

Make the mundane sound pleasurable, or at least more interesting.

If you’ve ever loaded a computer program you’ve seen a progress status bar with a message like, “Please wait. This may take a few minutes.” Blue Mountain Arts online greeting cards uses the same status bar, but makes waiting feel good with messages like “Warm thoughts heading your way…” and “Saving trees one card at a time.”

Make the language listener-focused and replace “i” with “you,” when possible.

The social networking site LinkedIn provides a standard request to connect with business colleagues: “I'd like to add you to my professional network on LinkedIn.” But, it’s more effective and certainly more personable to replace the I-focused message with something more welcoming like, “Please join my professional network on LinkedIn.”

Paint a pleasant picture that makes the listener want to follow your suggestions.

I received an invitation to a museum fundraiser which stated, “Because of your impeccable manners, superb upbringing and genuine southern hospitality, we invite you to spend a delightful Saturday evening mingling with your friends and savoring delicious southern cuisine, while supporting a wonderful cause.” This vivid imagery replaces the painful image of a stodgy event where you’re asked for money with one of an intimate gathering with friends, food and stylish social responsibility. Use these five techniques and you’ll be amazed at the results in both your speaking and writing. They are simple, effective and free. With a little practice it will be easy to let your language do the heavy lifting that allows you to increase your influence and improve your results. n

CLICK

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To learn more about Cardinal Consulting, LLC visit www. cardinalconsulting.net

South Carolina CPA Report

Young

CPA Meet SCACPA’s Future Leaders

CACPA’s Young CPA Leadership Cabinet will welcome eight new members at its May quarterly meeting.

“We are excited to welcome this new group of young professionals into the cabinet,” said Erin Hardwick Pate, CEO of SCACPA. “The group includes young CPAs in public accounting, industry and nonprofit. They are truly representative of our membership.” Founded in 2009, the cabinet develops future leaders for the association and the profession through leadership development opportunities, networking and community outreach. The eight new members bring the total cabinet members to 20, with each serving a three-year term.

Beth Blackwell, cPA Elliott Davis, LLC Charleston

Born in Columbia, Beth Blackwell received her bachelor’s degree in accounting and a Master in Professional Accountancy from Clemson University. She has served as a tax staff accountant with Elliott Davis in Charleston since 2010. Blackwell is a member of Charleston Young Professionals, Trident United Way Young Philanthropist Society, Clemson in the Lowcountry and office co-coordinator for Families Helping Families. In another life… I would own a business that sold home cooked meals and baked goods.

chad coleman, cPA UCI Medical Affiliates/ Doctors Care Columbia Chad Coleman has served as senior accountant for UCI Medical Affiliates, Inc. in Columbia since July 2012. Prior to joining UCI, he was an intern and senior accountant with Elliott Davis. A Summerville native, Coleman received his Bachelor of Science and his Master of Accounting from the University of South Carolina. He currently serves as vice president of Cunningham Park HOA, a member of church council at Trenholm Road United Methodist Church, a board member for IMA Columbia Chapter and a member of the United Way Young Leaders Society. In another life… I would be a teacher because I enjoy helping and explaining problems and solutions to others.

erica A. Dawgert, cPA Athene Annuity & Life Assurance Company Greenville A graduate of Coastal Carolina University, Erica Dawgert received a Bachelor of Science in Business Administration, majoring in economics in 2005. In 2007 she received a Bachelor of Science in Business Administration, majoring in accounting. Originally from Myrtle Beach, Dawgert currently serves as a senior financial reporting accountant at Athene Annuity. Her previous experience includes working in public accounting for just over two years, primarily in the audit area. She is a member of the Greenville Young Professionals Group. In another life… I would like to be the owner/operator of a local garden center specializing in heirloom and edible plants. I’d like to run workshops to teach people about different aspects of gardening.

South Carolina CPA Report

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stephanie estrada, cPA

Trevor Hartley

Goodwill Industries of Upstate/ Midlands SC & SCVIA Greenville

McGregor & Company, LLP Columbia

Stephanie Estrada currently serves as controller for Goodwill Industries of the Upstate/Midlands. She previously worked in public accounting for six years. A Seneca native, Estrada obtained a Bachelor of Science in Marketing from Clemson University in 2001. In 2005, she graduated with a Bachelor of Science in Accounting. Stephanie has volunteered with Habitat for Humanity and Dogs for Autism. She also led the United Way of Greenville County campaign for the accounting firm where she worked in 2010-11. Through Goodwill Industries, she also helped with the Goodwill Mud Run. In another life… I would be a licensed nurse midwife. After the birth of my daughter, I thought this would have to be the most amazing job in the world. Of course, you have to pass biology to succeed in this profession, so that ruled me out.

Thomas Godwin, cPA Dixon Hughes Godman, LLP Greenville

Born in Greenville, Thomas Godwin attended Clemson University where he received his Bachelor of Science in Accounting and his Master of Professional Accountancy. He is currently employed as a tax associate with Dixon Hughes Goodman, LLP. Godwin is a member of the United Way of Greenville County Young Philanthropists, Downtown Presbyterian Church and the North Main Community Association. In another life… I would be a winemaker. I enjoy tasting and collecting wine, and I have always had a passion for the outdoors.

With a double major in accounting and finance, Trevor Hartley received a Bachelor of Science in Business Administration and a Master of Accountancy from the University of South Carolina. A Lexington native, Hartley joined McGregor & Company in 2009 as a senior staff accountant. He is a member of the Historic Columbia Foundation and the Palladium Society. In another life… I enjoy many aspects of information technology. I think I might have been an application developer.

Morgan smith, cPA Dixon Hughes Goodman LLP Charleston

Morgan Smith currently serves as a forensic, litigation support and valuation services associate at Dixon Hughes Goodman. Originally from Cary, N.C., Smith received her Bachelor of Science in Accounting and Finance from the College of Charleston. Her community involvement includes cooking dinner at the Ronald McDonald House. She is currently heading up the office’s Bed Race Team. In another life… I’d love to have my own home makeover show on HGTV!

Kevin wise, cPA WebsterRogers, LLP Myrtle Beach

Kevin Wise received a Bachelor of Business Administration in Accounting from Francis Marion University and a Master of Accountancy from the University of South Carolina. A Johnsonville native, Wise currently serves as a senior accountant with WebsterRogers. He previously served as a staff accountant with the firm. He teaches Sunday school at his church and is involved in several Christian organizations around the Myrtle Beach area. In another life… I would be either an astronaut or an astronomer. n

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South Carolina CPA Report

Young

CPA Advocacy for the CPA Profession by Erin Hardwick Pate, CAE SCACPA Chief Executive Officer

ewly-licensed and younger CPAs often ask, “What does advocacy have to do with me?” I contend that advocacy, more specifically – profession advocacy – has everything to do with your career and the continued success of your chosen profession. But what does advocacy mean exactly? According to the Free Dictionary, “advocacy is the act of pleading or arguing in favor of something, such as a cause, idea, or policy; active support.”

can be as simple as discussing a tax law change and its impact on clients or your business, volunteering for an organization with a mission you’re passionate about or writing a note to your state senator.

Advocacy is an activity or service that the S.C. Association of CPAs (SCACPA) renders collectively on behalf of CPAs in our state. Profession advocacy, in fact, is one of the reasons SCACPA was founded some 98 years ago. This is unique to SCACPA in that no other organization in the state seeks to advocate for the profession.

A CPA I know has a tremendous passion for the profession. He demonstrates his passion by serving on the SCACPA Legislative and Regulatory Committee. He has reached out to his state representative through LinkedIn and had a subsequent conversation about a current issue. And, he has spoken with a legislative committee about implications of a tax proposal they were considering. While all this activity may seem extreme, he is advocating by fostering and facilitating meaningful discussions with others, which is the easiest way we all can advocate for the profession. Your active involvement as a representative of SCACPA is vital to our continued success in this arena!

The most effective advocacy however, starts at the personal level – with you, the CPA. Whether you know it or not, you advocate for something every day. Maybe it’s your favorite sports team, a political candidate or even where to go for lunch. You have an opinion and you seek to influence the thinking and actions of others. So why not advocate for the profession you worked hard to become a part of? Advocacy

“The most effective advocacy however, starts at the personal level – with you, the CPA. Whether you know it or not, you advocate for something every day.”

South Carolina CPA Report

Advocacy has many meanings depending on the field of service you are in. A partner in a public

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accounting firm will likely have different viewpoints from a CFO in a medium-sized private business. Over the years, SCACPA has been focused narrowly on public policy issues that affect the practice of accounting. More recent feedback from members has told us that you want SCACPA to also be involved in issues that may impact your clients and/or the business or industry for which you work. One way you can get a better understanding of the issues that could affect your career is by asking your leaders, mentors and peers and by attending SCACPA’s annual Professional Issues Update in your area or come to CPA Day at the State House (an annual event in the spring). Then with a good understanding of the issues, you can formulate a position on issues and policies that are likely to affect your career. Most importantly, get involved in advocacy. It’s not as difficult as it may seem, and there are lots of options available. n JOIN A COMMITTEE either the Legislative and Regulatory Committee, Taxation Task Force or Young CPA Network. Visit www.scacap.org/ getinvolved. n BECOME A KEY PERSON CONTACT. KPCs are the lifeblood of SCACPA’s advocacy work for the profession. KPCs are called upon on occasion when contact is needed with a local legislator or other policymaker. Learn more at www.scacpa. org/kpc. n ATTEND CPA DAY AT THE STATE HOUSE. This annual event offers policy/issue-specific CPE and includes a large group lunch with state legislators. n GO TO YOUR AREA’S PROFESSIONAL ISSUES UPDATE. This regional series takes place each fall and includes a thorough presentation of issues impacting the profession.

2013 SCACPA

Legislative Agenda

1. To reduce risk to both the public and the profession, SCACPA will initiate legislation to seek operational and fiscal autonomy for the S.C. Board of Accountancy. 2. To close an unintended loophole, SCACPA will initiate legislation that will exempt CPAs from the requirement to become licensed as a private investigator if they perform forensic services for clients. 3. To facilitate the conforming of the state tax code with the federal tax code, SCACPA will actively lobby for the passage of the Department of Revenue’s tax conformity legislation. 4. To assist the S.C. Department of Revenue in its work to efficiently serve taxpayers and the preparers who represent them, SCACPA will 1) lobby to help pass a technical corrections bill (it’s been since 2009 since such a bill has been passed); and 2) lobby for sufficient funding to do necessary programming to have partnership and other such returns filed electronically. 5. To assist members who are tax professionals, SCACPA will continue to work with the S.C. Department of Revenue to address issues ranging from forms to technology to policies. 6. To assist members in having knowledge and insight into state policies being considered, in particularly the tax and economic development arenas, SCACPA will share appropriate information about a variety of legislative proposals being considered.

You may or may not be as passionate about exposure drafts or newly-issued standards, but there is something in your career as a CPA that has stirred you to take a position and talk about the issue with your peers, mentors and leaders. Advocacy is not something that you must learn or be taught, it is simply the support of a cause, idea or issue that you care about and the willingness to talk with others about it! n

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South Carolina CPA Report

CPA-PAC DONORS (11/15/2012 – 04/15/2013)

Thank you to our CPA Political Action Committee (PAC) donors. The PAC is a vital part of SCACPA’s grassroots efforts and your contributions enable us to educate legislators about issues of importance to the profession and support those candidates that share our views. SCACPA would like to recognize the employees of Dixon Hughes Goodman, LLP who contributed a combined total of $5950.

ADVOCATE $1,000-$1,499 Grant Thornton, LLP PriceWaterhouse Coopers, LLP

INVESTOR $100 - $249 S. C. Beckwith, CPA, CFP William L. Byrd, CPA John F. Camp, CPA Dr. Charles G. Carpenter, CPA, Ph.D. Robert C. Cooper, CPA John B. Fennell, CPA Willis E. Haselden, CPA Penny Lewis, CPA Leon W. Maginnis, CPA, CFE, CFF Sharon E. Mann, CPA, CGMA Erin H. Pate Sara B. Penn, CPA Michael R. Putich, CPA Jason C. Sweatt, CPA Walda C. Wildman, CPA

BACKER: $50-$99 Claudia W. Adams, CPA Travis D. Ainsworth, CPA Janice F. Avant, CPA Christopher J. Bachkosky, CPA, CFP Henry D. Barnett Jr., CPA Christopher Baum, CPA Randy J. Bell, CPA, PFS Matthew D. Bernstein, CPA Robert F. Berry, CPA Jeremy S. Betsill, CPA Jason M. Blumer, CPA Donald G. Boan, CPA

South Carolina CPA Report

Allan G. Bolden, CPA Peter D. Botzis, CPA Deana D. Bouknight, CPA William M. Boyd Robert P. Bradham, CPA, ABV, CVA Brian J. Brady, CPA, CFF CFE CIA Lucy W. Brenner, CPA Brian J. Broom, CPA Charles E. Brown, CPA Matthew A. Brown, CPA Lindsay Bryan, CPA Thomas J. Bryson, CPA Kristen E. Buch Nicholas G. Buchan Orvis B. Buie, CPA Heather L. Butz, CPA Roxanne R. Caldwell, CPA, MPA Anne M. Campbell, CPA Pierce W. Cantey, CPA Patrick P. Carey Jr., CPA James Y. Cargile Benjamin Cartwright, CPA Christine E. Cassidy, CPA, JD, LLM Elizabeth A. Chapman, CPA Converse A. Chellis III, CPA Blair E. Clawson, CPA Deanna L. Cochran, CPA, CGMA Mary Jo Cole, CPA Dr. Clarence Coleman Jr., CPA, Ph.D. Christopher J. Controne, CPA W. H. Cook, CPA Annmarie Corrow, CPA Michael J. Costigan Sr., CPA George L. Counts Jr., CPA

Natalie K. Crisp Mark S. Crocker, CPA, MBA R D. Crowley, CPA, CVA Doris E. Cubitt, CPA Matthew W. Curran Robert A. Curtis, CPA, PFS, MST Mrs. Stephanie G. David, CPA Hope M. Davis, CPA, MAcc, CMA Zoe M. Davis, CPA, CFE Joseph C. de Brux, CPA R. K. Dooley, CPA, PFS Rodney K. Dooley Jr., CPA, PFS Johnathan N. Dowbak, CPA Katherine E. Dowdy Andrew J. Duggan Wallace Dunn II, CPA Ashley Durand George W. DuRant, CPA, ABV, ASA Richard A. Eckstrom, CPA, MBA, MAC Tiffany M. Ehrhart, CPA Susan D. Eidson, CPA Amy S. Ely, CPA Mary L. Enright, CPA Randolph B. Epting, CPA, Esq Tracey H. Erbe, CPA Barbara J. Evans, CPA, MBA Michael R. Evans, CPA James D. Ewart, CPA ABV CFF CVA A. L. Fee, CPA Christopher M. Feehan, CPA Gale A. Fennell, CPA Ronald M. Fields Jr., CPA Lindsey N. Fisher, CPA Bernard S. Fleischman Jr., CPA, JD Donald A. Floyd, CPA Jonathan P. Foster, CPA Stanislava S. Fowler, CPA Jennifer N. Gahl, CPA Cathy Gatchel Samuel C. Giddens Jeremy J. Gilbert, CPA MBA, CFE, CFF Betsy Gillette Ronnie M. Givens, CPA Jonathan I. Godwin, CPA Thomas Godwin, CPA

Stacey L. Goodmen Dennis L. Gore, CPA Lindsay A. Gosnell, CPA Jennifer S. Grigsby, CPA Keith M. Guerry, CPA Barry D. Gumb, CPA Rodney L. Hairfield, CPA, PFS Amanda T. Hallman, CPA Angela W. Hamilton, CPA John F. Hamilton, CPA Lynda S. Hardwick, CPA Gary A. Harris, CPA Martha M. Hartley, CPA Alice B. Hazel, CPA Kathryn G. Heeney, CPA, MBA Robert M. Heil, CPA Douglas W. Henderson, CPA Kenneth S. Higgenbotham, CPA J C. Hincher, CPA Samuel G. Holtzclaw, CPA Paul K. Hooker Jr., CPA Daniel B. Howard, CPA Donna K. Hudson, CPA Jessica L. Hudson Romissa Z. Hunt Amanda V. Hunter Donald L. Hunter, CPA Harry A. Huntley, CPA Steven L. Hyatt, CPA Leona L. Hydrick, CPA Caroline K. Inman, CPA Kelly N. Jewell, CPA Gary J. Johnson, CPA Harry L. Johnston, CPA Cristen Jones, CPA Harold W. Jones, CPA Robert M. Jones, CPA Richard L. Jordan, CPA Michael R. Kelly, CPA Lynne L. Kerrison, CPA, CMPE Michael J. Kerscher, CPA Joycelynn S. Knight, CPA Heather B. Koepenick, CPA Kathryn K. Kohara, CPA Douglas D. Kugley, CPA

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Holly L. Kyle, CPA Jonnie J. Lafoy, CPA Thomas R. Larson, CPA Carol C. Lawlor, CPA Paula J. Lawrence, CPA Elizabeth I. Leitner, CPA Jennifer M. Littrell, CPA Daniel E. Livengood, CPA Richard T. Livingston, CPA, CFF, CFE, Michael W. Lowrance, CPA, MBA, cgma Patrick M. Luciano, CPA Craig R. Lundgren, CPA Roger F. Luttrell, CPA, MBA Cynthia J. MacAulay, CPA Glenn G. MacNeil, CPA, BBA, CA, CMA Kara H. Mahon, CPA, MACC Bobby T. Mardis, CPA O. C. Marsh, CPA Christopher S. Matthews, CPA, CFE Travis L. Matthews, CPA Sheryl McAlister, CPA, CFP Susan B. McCracken, CPA Chris A. McCraw, CPA C. Stephen McDonald, CPA Ann A. McDuff, CPA Sheila C. McKinney, CPA Cindy L. McMaster, CPA Dana E. McMurry, CPA Leesa C. McRae, CPA John D. Meachum, CPA Robert A. Merritt, CPA Meriah J. Miksa, CPA James R. Miller Jr., CPA David H. Mims, CPA Thomas P. Monahan, CPA Robert C. Moorhead, CPA Connie G. Morris, CPA Zachary H. Mueller, CPA Albert A. Munn IV, CPA Robert J. Nagy, CPA William S. Nelson, CPA James R. Newell, CPA Elizabeth W. Nichols, CPA Ginger R. Nichols, CPA Rachel M. Nightengale, CPA

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Stuart H. Nofsinger, CPA, CVA James M. O'Cain, CPA, CFP,CLU,ChFC Benjamin D. O'Dell, CPA James M. Odom, CPA Rudolph M. ONeal III, CPA Catherine A. Opalka Kimberly I. Owen, CPA Renita M. Owens, CPA James A. Parrish, CPA Ellen L. Patterson, CPA Bernadette C. Phelps, CPA Dr. Barbara G. Pierce, CPA, Ph.D Leslie Platt, CPA Samuel H. Plexico III, CPA Pamela A. Pollitt, CPA Sarah D. Pope, CPA Douglas E. Pounder, CPA Harold R. Pratt-Thomas, CPA Sabrina E. Preston, CPA Robert B. Privette, CPA, MBA John J. Quin, CPA Daniel Quirk Jr., CPA, MBA Teresa M. Raines, CPA David M. Rainey, CPA Michael P. Ravan, CPA Charles M. Redfern III, CPA Monica E. Richardson, CPA Laura D. Rippy, CPA William C. Robinson, CPA Clarence J. Rogers Jr., CPA, CGMA Harmony A. Romo, CPA Deborah M. Rose, CPA Meghan R. Rose Anne F. Rosell Annette H. Ross, CPA Antonia L. Rossi Amy H. Rubin, CPA Scott D. Russell, CPA David W. Sage, CPA, CFP, PFS Paul S. Saltzman, CPA L. Kent Satterfield, CPA Charissa D. Saunders, CPA Gerald E. Saunders, CPA Marc L. Saunders, CPA Michael W. Saunders, CPA

Terry K. Schmoyer Jr., CPA Allyson Schuster, CPA William E. Sellars Jr., CPA James J. Sfiris, CPA Jennifer Shields, CPA Lauren A. Simms, CPA Clifford C. Simunek, CPA Robert M. Sisk, CPA H. B. Smith, CPA Morgan E. Smith Ryan W. Smith Wilfred A. Smith, CPA Daniel B. Smoak William R. Smoak, CPA Philip R. Snipes, CPA Ralph M. Snow III, CPA Douglas A. Snyder, CPA Zachary M. Solomon, CPA Douglas A. Sparacino, CPA Andrew B. Sprenger, CPA Matthew R. Stainaker Elizabeth M. Stalvey, CPA Keon Stevenson, CPA Curtis C. Stewart, CPA, JD James M. Stewart Jr., CPA, MBA, MST Catherine B. Stoddard, CPA, ABV, CVA Leroy E. Strickland II, CPA CFE Dr. Caroline D. Strobel, CPA, Ph.D., Michelle R. Swanson, CPA, MACC Caroline E. Sydow Douglas E. Szubski, CPA George F. Taylor Jr., CPA Gregory S. Taylor, CPA Thomas V. Taylor, CPA, MBA James F. Tenpas, CPA Judith C. Thomas, CPA Rudolph S. Thomas, CPA, CVA Richard C. Tiller, CPA Michael D. Trammell, CPA John S. Turner, CPA Michael S. Upton, CPA Mrs. Nancy O. Upton, CPA Edgar A. Vaughn, CPA Brian P. Vaxmonsky, CPA Dennis Vick, CPA

Patricia A. Walker Katherine Walters, CPA Jennifer D. Walton Kristen B. Warren, CPA Mark W. Webster, CPA Richard D. Weddington, CPA, BIE Susan O. Weesner, CPA David L. Whitehead, CPA Patricia B. Wilson, CPA, ABV, CVA, CD Sarah L. Windham, CPA CCIFP Kathy B. Wine, CPA Benjamin W. Wingo Jacqueline C. Wirszyla, CPA Amy L. Wood, CPA Joy E. Wright, CPA Justin S. Yandle, CPA Patricia M. Yount, CPA Beth T. Zamorski, CPA

Supporter: up to $49 Julia A. DuMars, CPA M. Timothy Hucks, CPA Cheryl O. Lang, CPA Harold E. LeMaster, CPA Linda L. May, CPA Natalie J. O'Bradovich, CPA Christopher A. Paris, CPA, MBA Betsy M. Ragsdale, CPA Janene K. Schmidt, CPA, MBA Laura K. Smith, CPA Lisa N. Smith, CPA Edward D. Sullivan, CPA, JD, LL.M.

South Carolina CPA Report

Growing the Profession

Preparing the Next Generation of CPAs for the Workforce Compiled by Maureen Taylor SCACPA Director of Marketing & Member Services

nternships are a win-win for the student and the firm. The experience allows the intern to obtain hands-on experience while applying classroom knowledge. We asked members in industry and public accounting to talk about their experience with interns, the recruitment and selection process and the types of work interns preform.

“Academic aptitude, professor recommendations, personality, leadership qualities and commitment to the profession are all taken into consideration when evaluating a potential intern.”

Dixon Hughes Goodman, LLP

made regarding the offer. The firm looks for candidates with qualities and traits that are a long-term fit with the firm. Academic aptitude, professor recommendations, personality, leadership qualities and commitment to the profession are all taken into consideration when evaluating a potential intern.

Dixon Hughes Goodman, LLP has seen approximately 2,000 interns walk through its doors in the past 20 years, according to Courtney Thomas, CPA, director of recruiting for the firm. Dixon Hughes Goodman generally hires 90100 spring interns and 90 summer interns for 25 locations in 10 states. The firm begins recruiting for the paid positions immediately prior to the internship session and targets specific college campuses. It also accepts applications via its campus careers website. Candidates submit their resumes in order to be considered for a campus interview. The firm then pre-selects candidates to interview on campus. Following the campus interview, the candidate pool is narrowed and students are invited into specific offices for another round of interviews. After the candidate’s office visit, a decision is

South Carolina CPA Report

“Our internships provide experience similar to that of a first year associate,” Thomas said. “As such, interns participate in audit teams, tax compliance, and various advisory projects.” “The majority of our interns are ‘full-time’ when they intern with us, with some exceptions depending on a school’s requirements and the market demands,” she added. Most of the firm’s entry-level opportunities are filled by students who have interned with Dixon Hughes Goodman.

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

Interns prepare backpacks filled with school supplies and encouraging notes for the Boys and Girls Club in Charlotte, N.C. People Camp is a weeklong training for DHG interns during the first week of their internship.

College Intern Spotlight catherine fox Marcia C. Rhea, CPA Charleston, S.C. catherine fox, a senior at Charleston Southern University, has been interning for Marcia C. Rhea, CPA in Charleston since February. Catherine, who will graduate in May with a bachelor's in accounting, said she was uncertain of her career path after graduating high school.

According to Thomas, the firm actively communicates with interns during their experience in order to determine their interest in long-term employment.

Marcia c. rhea cPA Marcia C. Rhea, CPA, Charleston, is a sole practitioner that has worked with approximately 15 interns in as many years. She generally hires one intern every tax season and starts the recruiting process in January. The internships are paid and students also receive college credit. Rhea works through the accounting and business department at Charleston Southern University and receives recommendations from the professors on students that excel in people and technical skills. She looks for candidates who want to learn in a real world environment. Students generally work 20 hours a week and learn to do research on a variety of tax topics, interact with clients, handle phone calls and organize client documents and files. They assist the manager in scheduling client appointments and making sure the office runs smoothly during tax season. As a sole practitioner, Rhea does not offer full-time employment to interns but does offer recommendations. She recently helped a former intern secure a job with the S.C. Department of Revenue.

TD Bank TD Bank has hired interns for several years now and normally has one to three summer interns. The company typically begins recruiting in February or early spring for the paid positions.

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'I always enjoyed math because it felt like a puzzle waiting to be solved,” said the Summerville native. “Accounting has the basic concept with the math and solving the pieces of the puzzle. It definitely is not a narrow road to travel down and I knew it could open many doors to a career path; all I had to do was find my niche. “ Fox found the paid internship through Charleston Southern. She will work with the firm through tax season and assists with collecting clients’ information when they drop off tax information, logging information and inputting data into the software. After Rhea finishes with the tax returns, Fox makes copies, preps the file and calls clients to let them know their taxes are ready to be signed. She then gives the signed returns to Rhea to process into the computer. Fox said the primary thing she has learned from the internship is that class work can be applied in real accounting situations. "We are taught for so long in the classroom about situations that we may face but when we are able to experience these situations it's more fulfilling and educational," Fox said. "I am enjoying and have learned so much in the little amount of time that I have been here. Mrs. Rhea and Mrs. Chandler are so sweet and enjoyable to work with! They always have a welcoming smile when I walk through the door each day, I am so thankful to have this experience and to work with these great people!" she added. After graduation, Fox will be putting her career on hold to prepare for the Miss South Carolina pageant on July 13. Fox sees it as an opportunity to earn scholarships to further her education. She plans on taking a year off from school before pursuing a master’s in accounting, after which she hopes to pursue a CPA license.

South Carolina CPA Report

Growing the Profession TD Bank is open to finding talented interns through a variety of channels, ranging from referrals of candidates by current employees to recruiting on college campuses. “Our interns may work for ‘just’ the summer, but we are still very selective, said Giavonni Gibson, senior vice president of human resources in South Carolina for TD Bank. “Every Employee at TD, America’s Most Convenient Bank®, must display a passion for providing legendary service and ‘WOWing!’ our customers. It is far more important to us that interns are professional, have the ability to acclimate to TD’s culture quickly and immediately embrace our philosophy that the ‘Customer Trumps Everything,’ than hiring someone who has previous banking experience. We can teach them banking… they must LIVE customer service.”

TD Bank and call center pictured below.

While TD Bank has hired interns for support functions, most of the focus is on providing the stores (retail locations) with more resources to better serve its customers. The majority of interns work full-time hours during their internship.

Brittingham, Brown, Prince & Hancock, cPA's, LLc Kerry R. Brown, CPA, of Brittingham, Brown, Prince & Hancock CPAs, LLC in West Columbia, said the firm has always used interns as part-time assistants and normally has two on staff at any time. Paid internships are offered year-round so recruitment is dictated by turnover. The firm works through the University of South Carolina accounting department to find students. The firm interviews several students and then pares it down to two candidates. The student's schedule is of prime importance and the firm looks for

"Interns perform audit, tax and risk assurance tasks as they are ingrained as a valuable member of our engagement teams.”

interns that indicate some willingness to remain in public accounting. The firm guarantees 20 hours per week and during tax season interns can work as much as their schedules and studies will allow. The primary responsibility is the assembly of tax returns and financial statements, and when time permits, interns also assist with light bookkeeping tasks. “We stress that while they might sometimes consider their jobs pretty

South Carolina Accounting Graduates* cOLLeGe/UNiVersiTY

DeGree

2008-09

2009-10

2010-11

2011-12

Bob Jones University

Undergrad

Charleston Southern University

Undergrad

The Citadel

Undergrad

Clemson University

Undergrad

Graduate

Columbia College

Undergrad

Converse College

Undergrad

Francis Marion University

Undergrad

Furman

Undergrad

Newberry College

Undergrad

South Carolina State University

Undergrad

University of South Carolina Columbia

Undergrad

135

130

160

163

Graduate

USC Upstate

Undergrad

Winthrop University

Undergrad

Graduate

* based on responses received through March 25, 2013

South Carolina CPA Report

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clerical, the finished product is of the utmost concern to us and they are often the last hands to touch the product,” Brown said. “We offer full-time employment to interns as frequently as annually and like to hire young people who appear to be able to interface with adults," he said. “Our eye is always on possible retention of interns as full-time staff when they have completed their education.”

Bernard N. Ackerman, cPA, P.A. Bernard N. Ackerman, CPA, P.A. has been using interns for over 20 years. In fact, Bernie Ackerman, CPA/PFS, CFP, CDFA, said he believes the firm was the first in the state to utilize an 11th grader in high school as part of the states “school to work” program working for a professional firm. Prior high school interns were used only in manufacturing jobs. “Our Winthrop interns have been very successful over the years,” Ackerman said. "We have hired at least five of our staff members as permanent employees after they interned with us.”

College Intern Spotlight Julia sweeney

Bernard N. Ackerman, CPA, P.A., Rock Hill Julia sweeney of Fort Mill first discovered a passion for accounting as a high school sophomore. Her teacher recognized Sweeney's potential and suggested she apply for the School to Work program. Sweeney took the advice and applied, and was hired at Bernard N. Ackerman, CPA P.A. when she was 15. Now a senior at Winthrop University, Sweeney has been with the firm for six years. The experience has shown her that accounting is about much more than crunching numbers.

The firm generally has one intern at a time; sometimes two during the transition period. Their high school interns have stayed with the company for six years, if in fact they go to a local university. The current intern, Julia Sweeney, is a senior at Winthrop University and has been with the firm since 11th grade. Ackerman says she is an invaluable member and resource for the team.

"Like many others, I thought accountants were introverts," Sweeney said. "While working for BNA CPA I have learned the stereotype is not true. The people I work with are fun and outgoing, and have great relationships with each other and their clients. BNA CPA does not treat clients as numbers, but strives for personal relationships."

Pricewaterhousecoopers

Sweeney's duties include reviewing and assembling tax returns (making sure wages and withholding are correct, all necessary forms are included and correct, uploading returns to individual's secure portals, printing and assembling paper returns when needed) interacting with clients, fielding questions, scheduling appointments and handling confidential information in a professional manner.

Carolinas Campus Recruiting Manager Ashley K. Streeter said PriceWaterhouseCoopers has been using paid interns for as long as she can remember. The firm offers winter (typically January-early March) and summer (typically June to early August) internships and usually has 30 interns. Recruitment is in the fall and interns are identified at target universities. During the selection process, the firm looks at academics, work experience, extracurricular activities, leadership and community involvement. “Interns perform audit, tax and risk assurance tasks as they are ingrained as a valuable member of our engagement teams,” Streeter said. Duties include completing tax returns, performing audit testing to meet client audit deadlines and performing internal audit work of system process reviews.

Sweeney will graduate in May with a double major in accounting and financial planning. She is involved in Beta Alpha Psi and is the treasurer for the Financial Planning and Investments Club. She has been accepted to the graduate program at Winthrop and will start this summer pursuing a master's in business administration with an accounting emphasis. Sweeney plans to start preparing for the CPA exam after completing her master's. Her professional goal? To become a CFA, CFP.

“Our goal is to convert all interns to associate hires,” Streeter said. n

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South Carolina CPA Report

Growing the Profession

South Carolina Hiring Plans Point to Bright Future by Maureen Taylor SCACPA Director of Marketing & Member Services

ll signs point to a bright future for CPAs. The AICPA’s 2011 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits reported that hiring across all segments had increased since the 2009 survey and firms anticipated the trend would continue. In fact, the report hinted that demand for accounting graduates would soon outpace supply.

How many permanent staff does your company/firm anticipate adding to the accounting function within the next year?

The AICPA report echoed findings from the U.S. Bureau of Labor Statistics, which expects accountants to experience “much faster than average” employment growth in the coming years. “Despite all we hear about national unemployment rates close to 8 percent (and even worse in the Carolinas) the unemployment rate for CPAs is now estimated at 2.2 percent,” said Bob Wilson, chief human resource officer with Elliott Davis. “Economists define this as about half the rate of ‘full employment.’ As a result, CPA firms are again seeing talent issues at the top of their agendas for growth.” As the next batch of CPAs readies for graduation, we asked SCACPA members about their hiring plans, recruitment tools and what they look for in a candidate. The following information was obtained through interviews and an online survey conducted the last quarter of 2012.

HiriNG TreNDs Of the 33 firms that participated in the SCACPA survey, 57 percent anticipate adding one to five permanent staff to the accounting function within the year. “At Elliott Davis our overall headcount has increased by nearly 10 percent last year, and we anticipate similar growth by early 2014. Our hiring has been focused on both entrylevel hires, and filling key roles with experienced CPAs,” Wilson said. Staffing Partners LLC has also seen increased activity with both public accounting and industry organizations looking

South Carolina CPA Report

With respect to the salary levels of your accounting department employees, do you anticipate during the next year that salary levels will increase, decrease or stay the same?

“We don’t need any more worker bees; we need people who can be the backbone of the next generation of tax professionals.”

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to hire more CPAs and CPA candidates in tax, audit and other accounting roles, according to President Brad Ledford, CPA, CMA. And firms appear optimistic concerning growth in the next five years. Those that plan to hire additional staff project adding 1-2 per year.

In which part of the state is your company/firm located?

“Our firm has been growing every year and we add at least one CPA every year. We currently have 19 employees,” commented one respondent. However, firms also have very high expectations of candidates. Comments included: “We will be hiring entrepreneurial professional staff. We don't need any more worker bees; we need people who can be the backbone of the next generation of tax professionals.” “We will continue to hire top talent from college campuses over the next five years. We will also add experienced staff to our firm if they are able to bring an area of expertise with them.” Almost 40 percent of respondents project salary levels will increase in the next year, while 60 percent predict they will stay the same. On a national level, salaries are expected to rise an average of 3.3 percent for accounting and finance positions in the coming year, with a particular need for financial analysts and business analysts who can support growth opportunities, as well as staff and senior accountants, according to the 2013 Robert Half Salary Guide.

Does your company/firm currently use temporary employees in your accounting function?

Yes

THe recrUiTMeNT PrOcess

Referrals, university recruiting, staffing firms and job boards are the tools most frequently used to identify qualified candidates according to the SCACPA survey. General Information Services, Inc., headquartered in Chapin, is a leading provider of comprehensive employment background screening solutions. The company recently advertised for an accounting director. GIS has an internal recruiter on staff and uses job boards and external recommendations. According to CFO Sharon Mann, CPA, while they did not use social media to post this particular position they have used it for others in the company. GIS has also used employment agencies. Staffing Partners uses a variety of tools in its recruitment process including networking events, social media, professional referrals and national job boards. The company also posts job opportunities on its website.

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Does your company/firm currently outsource any of your accounting functions?

Yes

South Carolina CPA Report

Growing the Profession “Most of our (Elliott Davis’) hiring comes from campus recruiting and we’ve invested heavily in developing partnerships with schools we believe consistently provide top talent. Since recruiting is essentially a marketing activity, we are actively working to build our brand with students from early in their college careers. This involves social media of various types, including LinkedIn and Facebook, lots of face time on campus, and a major emphasis on internships,” said Wilson.

THe DeciDiNG fAcTOrs So what specifically do companies look for in candidates? It varies by company and industry but all agree that job experience and skills top the list. “I am looking for someone who can solve problems as they arise. People who only generate numbers are plentiful. Critical thinkers are harder to find,” said Bratton Fennell, CPA, CFO of Burroughs and Chapin in Myrtle Beach. In the nonprofit sector, job and nonprofit experience are important but so is an alignment of beliefs with the organization, according to Pamela Westbrook, CPA, of Upward Unlimited in Spartanburg, a 501(c) (3) nonprofit ministry. At Elliott Davis, “we have always looked beyond just GPA to find the best fit for Elliott Davis, and also place a major emphasis on communication, analytical, and leadership skills,” Wilson said. And regardless of industry, all agree that networking and referrals are important when job seeking. Almost 36 percent of those surveyed cite referrals as a key recruitment tool and it can often make the difference in getting the offer. “If I know someone and have worked with them in another place, they are much more likely to get a position with our company,” Fennell said. Mann agreed saying “We are most likely going to hire the person that came through a referral.” n

South Carolina CPA Report

Which resource from the list below do you currently rely on most as a source of qualified candidates for your accounting department positions? LinkedIn Job Boards such as CareerBuilder and Monster Referrals from other professionals University Recruiting Your own company/firm website Staffing Firms Social Media (Facebook, etc.)

Does your company/firm currently allow any of your accounting department employees to telecommute?

Yes

If yes, do you plan to increase or decrease the Increase number of employees who are given this option. Decrease

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When your firm is ready, there’s a path to follow. The Premier Plan. As your firm grows, so do your risks. So when it’s time to decide how to protect your firm, it’s important to choose professional liability insurance that can address the evolving needs of your business. When you choose advanced coverage offered through the AICPA Premier Plan, you have options. Available liability limits range from $100,000 to $10 million, with 28 deductible options for qualified firms. When you choose the AICPA Premier Plan, you’re on the right path to your firm’s future.

Contact Charles Cauthen at BB&T Insurance Services, Inc. today at (888) 868-3721 or (704) 954-3033 Endorsed by:

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Aon Insurance Services is the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc.; (AR 244489); in CA, MN & OK, AIS Affinity Insurance Agency, Inc. (CA 0795465); in CA, Aon Affinity Insurance Services, Inc., (0G94493), Aon Direct Insurance Administrator and Berkely Insurance Agency and in NY and NH, AIS Affinity Insurance Agency. One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. The statements, analyses and opinions expressed in this publication are those of the respective authors and may not necessarily reflect those of any third parties including the CNA companies. CNA is a service mark registered with the United States Patent and Trademark Office. Copyright © 2013 CNA. All rights reserved. E-9002-113 SC

Growing the Profession

Diversity in the Profession Compiled by Maureen Taylor SCACPA Director of Marketing & Member Services

iversity in the CPA profession remains a priority. While we may live in one of the world’s most diverse countries, diversity in the CPA profession is not keeping pace. The Pathways Commission on Accounting Higher Education states that, “ensuring diversity among those who enter the profession is critical.” We asked three SCACPA members to share their experience as CPAs as well as their views on progress in the area of diversity.

Uvette rogers, cPA The Children’s Trust of SC, Columbia Becoming an accountant was my dream job in high school. I took accounting courses and it was challenging, interesting and rewarding all at the same time. My idea of a CPA at that time was someone who was a problem solver and provided solutions so that the business could move forward. I started out as a staff auditor at a local accounting firm, where I worked for three years and was able to work on various engagements that provided me with the experience I needed to move forward. I then worked as the controller at a billion dollar state agency. Both of those positions have allowed me to move into my current role as CFO for a nonprofit with a much smaller budget. The job is just as rewarding and challenging.

South Carolina CPA Report

“Don’t let anyone else define who you are. If you believe that this is your calling, don’t give up or get discouraged when you encounter obstacles or difficulties.” My oldest sister is a CPA. One of my cousins is a CPA. Today, I have several friends that are CPAs. In 2000, when I started in the profession, I only knew of three black CPAs. Fast forward to today and I cannot count how many diverse CPAs I know. Although we need to continue the efforts to increase diversity, I see the progress of diversity within the profession. I believe as C-level managers of the profession become more diverse, more will seek to become CPAs. I would advise women and minorities to understand what their ultimate goal is. When I was in high school I wrote in my journal my goal to become a CPA and CFO. I forgot that I wrote that goal, but a few years after becoming a CPA I found my journal and was astonished at the seed I had planted. It provided me with a renewed strength to continue to grow in the profession. Through all of the challenges and rewarding experiences, I know that if I had not established my goal early-on, I would not be in the position I am in today.

sharon Latimore Pate, cPA Sharon L. Pate, CPA, Columbia I was a straight A student in math throughout grade and high school, but I wasn’t sure about becoming a math teacher. In college, I discussed my love of math with my academic counselor, who enrolled me as an accounting major. After graduation, I worked as an accountant for several nonprofit organizations, where I attained the position of finance director. I set a higher goal for myself and went to work for a CPA firm. My first assignment there was to work on an audit of a large local school district. I became fascinated with the profession and worked toward and obtained my CPA license. Except for a short period working at a university, I have worked in local CPA firms, including the last 26 years as head of my own firm. Most of my experience has been in conducting

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and supervising audits for the U.S. government, the state of South Carolina, nonprofit organizations and businesses. In addition, I have performed peer reviews of other CPA firms.

During my career, I have seen progress in minorities pursuing a career in the accounting field. However I haven't seen much progress in minorities seeking to pursue a career in public accounting or pursuing the CPA designation.

I see the CPA as a profession of service. Service is defined as “the work performed by one that serves the good of, help, use, benefit of, or contributes to the welfare of others.” The characteristics of individuals and the framework of American businesses today are so varied that I believe the CPA profession must grow and maintain diversity in order to keep pace and continually serve the public with excellence of quality.

I would advise minorities and women entering the profession to:

I would tell minorities and women entering the profession to know thyself! Don’t let anyone else define who you are. If you believe that this is your calling, don’t give up or get discouraged when you encounter obstacles or difficulties. This profession is varied and there is so much to learn. If at first you don’t get it, study it again and again until you do! In today’s climate, perseverance and dedication can take you as far as you are willing. But remember to take time out to enjoy life with family and friends, so that you can truly enjoy the fruit of your labors.

Bill robinson, cPA Gosnell Menard Robinson Infante, CPAs, PA, Spartanburg

• • • • • • •

seek an internship or a mentor determine which field of accounting you want to pursue after graduation prepare to obtain 150 hours to sit for the exam - don't sit out a year commit to obtaining the CPA designation no matter which field of accounting you choose make yourself an extrovert and network with others learn to listen, read, study, and pay attention to our changing profession understand our profession is applicable in everyday life

Our profession offers limitless opportunities to be successful. n

TRANSFORMING GOVERNMENTAL

I became a CPA because of my interest in how businesses handled accounting for companies, my curiosity of income taxation, and the ability to serve the public.

Upon graduation from Wofford College, I served as grants administrator for Spartanburg County. I was responsible for making sure grants funds were properly requested, received and were spent for specific purposes. I served as management accountant at Bommer Industries, Inc. for two years where I was responsible for assisting with closing the accounting records monthly, managing costs of shipping products to customers, and collections of past due accounts. I am currently a shareholder with Gosnell Menard Robinson Infante, CPAs, PA and have been with the firm for 14 years. I perform audits of corporations, nonprofit organizations, and employee benefit plans and prepare tax returns for corporations, partnerships, trusts, and individuals.

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COPPER DOME S T R A T E G I E S, L L C A Subsidiary of Haynsworth Sinkler Boyd, P.A.

Carl Blackstone Kim Kent

Billy Routh Jeff Thordahl

www.HSBCopperDome.com

South Carolina CPA Report

Growing the Profession

Four Generations, One Workforce = STRATEGIC OPPORTUNITY

Reprinted article from The Statement, Maryland Association of CPAs.

By Jason Ryan Dorsey

or the first time in U.S. history, four distinctly different generations are working side by side.

Each of these generations — Gen Y, Gen X, the Baby Boomers, and the Matures — carries its own set of beliefs and values, preferences and priorities. Sometimes these differences work well together (think Trivial Pursuit teams). Sometimes they simply fail to connect (think twittering about your favorite tuna sandwich).

GEN X

It’s my belief that smart business leaders will embrace our multigenerational workforce as a timely opportunity to create a competitive advantage. By learning each generation’s mindset, you can easily take steps to increase the performance, innovation, and teamwork from your employees of all ages. Moving in this direction starts with understanding each generation and what makes them a little different – besides Boomers being able to write in cursive and Gen Y texting onehanded. Without vowels. While driving.

2013 CPA WORKFORCE

“Gen Y is not tech savvy; we are tech dependent. We don’t know how technology works; we just know we can’t live without it.” Generation Y

Also known as the Millennials, the members of Gen Y were born from approximately 1977 to 1995. In the U.S., there are about 79.8 million members of this generation (and I’m proud to be one of them). Gen Y is currently the fastest growing generation in the U.S. workforce. In 2010, we will make up the entire 18-to-32 demographic. Along with a new definition of “business casual,” Gen Y is the only generation in the workforce that has never expected to work for one company our entire life. We also are guided by supersized career expectations, a need to see ongoing progress, and Boomer parents who continually save us from consequences (which includes inviting us back after college graduation). Older generations often believe that Gen Y is tech savvy. My research shows this is incorrect. Gen Y is not tech savvy; we are tech dependent. We don’t know how technology works; we just know we can’t live without it. Gen Y can become great employees if you recognize our preferences (such as monthly 30-second check-ins versus an annual review) and give us the space to demonstrate our potential (such as challenging us to use YouTube to increase sales).

South Carolina CPA Report

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“When it comes to leading Generation X, it’s important to keep your commitments and let them know they have options.” Generation X

Gen Xers were born from about 1965 to 1976. They came of age during a time of scandals, wars, fallen heroes, and government institutions that failed to deliver on promises made. They have witnessed everything from downsizing and outsourcing to rising divorce rates and lines at the gas pump. Major corporations broke the lifetime employer / employee promise by laying off Generation X’s parents and older friends, and then offering no apology, only a rusty locked gate. The result is that Generation X is notoriously skeptical – and for good reason, I think. I often joke in my keynotes that Generation X doublechecks my data while I’m speaking. While Generation X brings a new skepticism to employer / employee loyalty, ironically they are often viewed as the most loyal generation in the workplace. However, they are loyal to people, not organizations. When it comes to leading Generation X, it’s important to keep your commitments and let them know they have options. Without a doubt, Gen Xers can become fantastic employees and business leaders – just be sure to tell them where you found your data…

Baby Boomers

Boomers were born from approximately 1946 to 1964. They are the true workaholics of the modern workplace. The reason: Boomers

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entered the workforce at a time when there were more people than there were jobs. They realized the key to job security and career success was to outwork the competition, which they still do to this day. They arrive at work early, stay late, work on weekends and expect others to do the same (except their own teenage kids). Boomers have only one method for measuring hard work and work ethic: hours worked per week. And the hours must be seen to count! As one Boomer manager told me, “Sure, our employees can telecommute, as long as they show up to work in our office 40 hours a week, between 8 and 5.”

“Boomers have only one method for measuring hard work and work ethic: hours worked per week.” As bosses, Boomers believe there are no shortcuts to success; you must pay your dues (and not with a credit card). While Boomers will not retire en masse as once feared (thank goodness, because they know all kinds of cool things my generation doesn’t, like long division), they will eventually start to ease up on the long work hours and late nights and begin to pursue more lifestyle-friendly jobs.

Matures

Also known as Traditionalists, the Matures were born before 1946. Sometimes called Traditionalists or the Silent Generation, Matures’ most formative experience is that they have a deeply rooted military connection. The military was a fixture of their coming-of-age experience, both directly (think rationing) and indirectly (Pearl Harbor). At the same time, Matures endured the Great Depression or its immediate

“Matures are the generation that Gen Y most trusts.” aftermath and became conditioned to survive on as little as possible. They are the true “waste not, want not” generation. Matures take pride in believing that a person should do “an honest day’s work for an honest day’s pay.” They also are comfortable with delayed gratification (which you often see when they are driving). My grandfather is 87 years old and a proud member of the Mature generation. When I ask him to tell me about his experience in World War II, all he will say is, “We left a lot of good people behind.” That’s it. Nothing more. He doesn’t want to show off or draw attention to himself. He is a good listener, extremely patient, and truly one of my heroes. My respect for him is not surprising considering that, according to my research, Matures are the generation that Gen Y most trusts. Each of these four generations brings a valuable skill set and mindset to your workplace. Recognizing where they are coming from is the first step toward finding a common ground you can build on to give your business a strategic advantage. It’s also a great opportunity to increase the number of friends you have on Facebook. n

Jason Dorsey is The Gen Y Guy®. Jason wrote his first bestselling book at age 18. He has been featured as a generational expert on 60 Minutes, 20/20, The Today Show, The View, The Early Show and many more. Watch Jason explain the challenging (and sometimes funny) differences between Gen Y and Baby Boomers at JasonDorsey.com.

South Carolina CPA Report

The following article appeared in the North Carolina State Board of Certified Public Accountant Examiners’ newsletter recently, and we are presenting this to you with the permission of Bob Brooks in North Carolina. This is a timely issue that affects many CPAs in South Carolina.

orth Carolina CPAs continue to face the challenge of how to respond to requests from clients, lenders, and other third parties for “comfort letters” or “solvency opinions.” There are various reasons a client may request a comfort letter--a mortgage broker may be collecting information needed for a loan approval or a third party may be trying to verify that clients applying for a particular service have the resources and ability to pay for the service or items involved. In some cases, a foreign government may request financial information for adoption proceedings.

lenders look to the borrower’s CPA for assurance or comfort about certain information. Most lenders will simply ask the CPA to write a letter indicating that the prospective borrower is self-employed or is employed in a certain profession. Others may attempt to shift the burden of responsibility for due diligence onto the borrower’s CPA and provide a script of what they want the letter to say. Such a letter provides third-party verification of details in the application and could transfer some of the potential liability to the CPA in the event of default on the loan.

Usually, the letter at issue is associated with stated-income loans, which are mortgages that do not require borrowers to document their income. Such loans often are sought by self-employed people and individuals with investment income or with sales jobs of varying commissions.

There are a few issues with this type of letter that should concern CPAs. First, the proposed letter asks the CPA to attest, when the CPA has not specifically been engaged for that purpose. The report would be issued to a third party that has not contracted with the preparer for that specific purpose.

Lenders, lacking documentation to support a borrower’s income claims, take on the risk that a borrower’s claims are inadequate. To reduce the risk in extending loans, some

According to Auditing Standards Board Statement on Standards for Attestation Engagements No. 10, Attest Engagements, an attestation engagement is called for if the client

South Carolina CPA Report

wants a written report providing assurance about a specific subject. Of course, performing an attestation engagement is not prohibited in the case of a lender’s comfort letter request, but CPAs must follow the procedures required in an attestation engagement. The client will likely not want to incur the expense of a formal attestation engagement. It is also important to know what is not permitted under the standards. AT Section 9101, Attest Engagements: Attest Engagements Interpretations of Section 101, Appendix B, No. 2, ¶ 25 states that practitioners should not provide any form of assurance that an entity is not insolvent or would not be rendered insolvent upon a proposed condition, or that an entity has the ability to pay debts as they mature. A lender may want the CPA to make an assurance that the applicant’s withdrawal of the funds for a down payment or other purposes would not put a financial strain on the applicant’s self-employment business. Any representation to that effect could be construed to be a comment on solvency and would thus be prohibited under the standards.

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“If the CPA takes the time to explain to the lender what is involved in presenting a comfort letter in light of professional standards and the related cost to the applicant of issuing any attestation letter, the lender may be convinced to withdraw its request for a comfort letter.”

Sometimes the broker does not want the tax forms in the application file because the forms do not provide enough information or may provide information that might cause the loan to be rejected.

The types of services permitted in a CPA attest report include an audit, a review, or a compilation of the applicant’s personal financial statements. The CPA may also report on pro forma financial information or perform an agreed-upon procedures report, as long as those procedures do not provide any assurance on matters of solvency.

Although from a risk management perspective it is preferable to avoid confirming any client information to a lender or broker, a CPA, not wanting to alienate or offend a client, may be tempted to send off a quick letter to the lender confirming that the client is

The important thing to consider is that this type of engagement requires many procedural steps, which take time and result in significant fees to the client. If the CPA takes the time to explain to the lender what is involved in presenting a comfort letter in light of professional standards and the related cost to the applicant of issuing any attestation letter, the lender may be convinced to withdraw its request for a comfort letter. As an alternative, the CPA may offer to send a copy (with the client’s written authorization) of the client’s tax forms directly to the lender with a simple cover page stating, “Please find attached the tax forms I prepared for Client for the past two years.”

self-employed, or retired, or earning a living from the activities addressed on the tax return. The CPA should be careful about sending such a letter. Does the CPA really know everything that is occurring with that client? Does the client have other activities on the side that the CPA is not aware of and that conflict with the information on the tax forms? A CPA is certain about what he or she puts on tax forms. Saying anything else in the letter advances the tax engagement to a new level.

Another option is to provide the lender with a CPA letter that basically makes no assurances, thereby limiting the CPA’s liability. The letter merely says that the CPA prepared the tax forms and that the lender should not construe the letter to be an audited CPA representation.

The CPA may want to consult with his or her professional liability insurer (or legal counsel) regarding the issuance of comfort letters. One insurer has warned that attesting to client information outside of the scope of an audit or attestation services continued on page 42

Eggshell Audit? An eggshell audit is one in which indicators of potential civil fraud or criminal tax violations come to the attention of the client and the representative before being discovered by the revenue agent or other examining officer.

The primary goal of an eggshell audit is to avoid a referral by the revenue agent to the IRS Criminal Investigation Division.

For more information: Tony Rebollo, Tax Controversy Attorney trebollo@richardsonplowden.com or 803.576.3722

experiencematters Columbia 1900 Barnwell St.

Myrtle Beach 2103 Farlow St.

Charleston 40 Calhoun St., Suite 220

www.RichardsonPlowden.com

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South Carolina CPA Report

focus on Membership

Welcome New Members (through 03-31-13) ACADEMIC AFFILIATE

Alysa A. Rubin, CPA Greenville, S.C.

AFFILIATE MEMBER/ NON-CPA Anna Hays, MAcc Columbia, S.C.

Jana W. Jayroe Little Mountain, S.C.

ASSOCIATE

Gregory S. Adams, CPA Wilmington, N.C. Jessica L. Bastedo Florence, S.C. Beau S. Ganas Charleston, S.C. David L. Irwin, CPA Macon, Ga. David E. Lewis, CPA, CFA Greer, S.C. Keeli Ramsey, CPA Columbia, S.C. Theresa A. Rogge Fort Mill, S.C. Wade P. Sansbury, CPA Macon, Ga. Rebecca J. Smith, CPA Lexington, S.C. Alan W. Thompson, CPA Whiteville, N.C. Meredith C. White, CPA Charleston, S.C.

CPA CANDIDATE

Robert M. Bennett Columbia, S.C. Hazel Brazell West Columbia, S.C. Chris Buckliew Columbia, S.C. Andrew J. Dobbins North Charleston, S.C. Andrew W. Godwin Mt. Pleasant, S.C. Jenna Hammond Columbia, S.C.

South Carolina CPA Report

Matthew E. Hardee Columbia, S.C.

Gwyn M. Northrup, CPA Landrum, S.C.

Heath L. Browder Lexington, S.C.

Quincy L. Johnson Denmark, S.C.

Whitney Rabern Lugoff, S.C.

Josh Horton Columbia, S.C.

Cynthia S. Taylor, CPA, CGMA Leesville, S.C.

Margaret D. Burkey Anderson, S.C.

Lauren A. Johnson Greer, S.C.

Sandra E. Ricciardelli Laurens, S.C.

Shannon Houghton Evans, Ga.

James R. Tuten Jr., CPA Mount Pleasant, S.C.

Pamela Carrico Surfside Beach, S.C.

Alexis G. Jordan Westminster, S.C.

Olivia Scalzitti Anderson, S.C.

Huei-Jyun Jhang Columbia, S.C.

Gerald Walker, CPA Summerville, S.C.

Rebekah A. Champy Gainesville, Ga.

Carol W. Killian Simpsonville, S.C.

Samuel J. Sears Greenville, S.C.

Laura B. Kahan Columbia, S.C.

STUDENT

Desiree Z. Cooley Williamston, S.C.

Milan S. Martin Orangeburg, S.C.

Bharati Singh Orangeburg, S.C.

Lindsey B. Cox Dalzell, S.C.

Susan McDonald Anderson, S.C.

Langdon J. Smith Florence, S.C.

Craig Crawley Starr, S.C.

Mallory E. Moore Statham, Ga.

Nathan Smith Anderson, S.C.

Michael Darlin Greenville, S.C.

Mary K. Ndukwo Denmark, S.C.

Amanda c. Spurlock Gilbert, S.C.

Banks H. Fair Leesville, S.C.

Sharinda L. Niskanen Greer, S.C.

Chuka K. Ufomadu Denmark, S.C.

Mathew D. Fillmore Charleston, S.C.

Avery Owens Clinton, S.C.

David M. Walke Charleston, S.C.

Andrew S. Foreman Greenville, S.C.

Kenneth B. Pendleton Clover, S.C.

Sennya T. Watkins Monroeville, Pa.

Laquannis S. Haynes Elloree, S.C.

Lee D. Postal Rock Hill, S.C.

Ryan LaBrooy Irmo, S.C. Brannon M. Montgomery Charleston, S.C. Leslie Rinehart Greenwood, S.C. Quindell Roddey Sumter, S.C. Ben Shirley Greenwood, S.C. James B. Thomas Columbia, S.C. Shiquirlin Wilson-Gadson, CFE Goose Creek, S.C.

Adeniyi A. Adelere Blythewood, S.C. Marcus L. Backman North Charleston, S.C. Sally W. Baker Rock Hill, S.C. Kayla Baumann Columbia, S.C. Katherine R. Beddingfield Walhalla, S.C. Eric A. Black Union, S.C. William P. Bloder Clemson, S.C.

Brittany H. Yeager Myrtle Beach, S.C.

FELLOW MEMBER

Emile W. Artus III, CPA, MBA Fountain Inn, S.C. Deanna J. Barabas, CPA Greenville, S.C. Cheryl L. Bohlen, CPA Summerville, S.C. Kristen E. Buch Greenville, S.C. Daniel M. Campbell, CPA Chapin, S.C. Adam G. Cook, CPA Greenville, S.C. Keith B. Giddens Jr., CPA Greenville, S.C. Barry O. Long, CPA Varnville, S.C. Ann L. Martin, CPA Charleston, S.C.

MEMBERSHIP scAcPA would like to recognize its 100% membership firms for 2013-14.

Argo and Associates, LLP Bauknight Pietras & Stormer, PA Bradshaw Gordon & Clinkscales, LLC Burkett, Burkett & Burkett CPA, PA Cherry Bekaert & Holland, LLP

Moore Beauston & Woodham, LLP CPAs & Consultants Robinson Grant, PA Scott & Company, LLC Sheheen Hancock & Godwin, LLP

Derrick Stubbs & Stith, LLP

Smith Sapp Bookhout Crumpler & Calliham, PA

Dixon Hughes Goodman, LLP

SwaimBrown, PA

Elliott Davis, LLC

The Hobbs Group, PA

McAbee Talbert & Holiday & Company

WebsterRogers, LLP

McGregor & Company, LLP

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

focus on Membership

Member News Steve Mann, CPA, Sumter School District, has been named to the South Carolina Department of Education Financial Literacy Board of Trustees. The board’s responsibilities include developing a comprehensive long-range initiative for improving the financial literacy of students in K-12; providing oversight on the implementation of the S.C. Financial Literacy Initiative at the state and school district levels; and establishing criteria and procedures for awarding grants from the Financial Literacy Trust. Brittany Owen, CPA, Elliott Davis, Columbia, was named a Lexington Leader in the February issue of Lexington Life. Brittany was recognized as an Emerging Leader in the SCACPA/AICPA Women to Watch Awards in October. Mike McGuigan, CPA, of Elliott Davis, LLC, Greenville, was recognized as a finalist for the United Way of Greenville County’s “Young Philanthropists (YP) Mentor of the Year” award. Betsy Roof, CPA, has joined Terminix Services, Inc. as accounting manager. Mark J. Swanson, CPA, has been named partner with Moore Beauston & Woodham in Greenville. He has managed the Greenville office since it opened in 2003. David Splittgerber, CPA, has been promoted to partner at Derrick Stubbs and Stith, LLP, Columbia. Vladimir Ilmanov, CPA, has been promoted to senior tax & assurance specialist at Derrick Stubbs and Stith, LLP, Columbia. Heather Powers has been promoted to manager of small business services at Derrick Stubbs and Stith, LLP, Columbia. Tiffany Wargo, CPA, has joined Elliott Davis, LLC as an assurance manager in the Greenville office. Jon Sutter, CPA, has joined Elliott Davis, LLC in Greenville as assurance manager in its manufacturing and distribution practice.

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

Firm News

Newsome & Company, P.C., was

named Best CPA in the 2013 Best of Lexington Life competition.

Columbia-based Scott and Company LLC and Greenville-based Johnstone, Graydon & Thompson have

announced their intent to merge, effective at the close of business on June 30, 2013.

Condolences

Former AICPA President Phil Chenok died Feb. 14 at the age of 77. Chenok, who the Journal of Accountancy called one of the most influential executives in the AICPA’s history, served as president of from 1980 to 1995. He led the organization during an eventful period that included the implementation of a plan to restructure professional standards, which strengthened selfregulation in the profession. During his tenure, the organization also dealt with a liability crisis that led to a battle to secure legislation against frivolous lawsuits. Chenok helped lead the way on other important issues, including dealing with rule changes regarding accounting firm ownership and educational requirements for CPAs. Chenok was a partner at Main Hurdman & Cranstoun before taking over as president at the AICPA.

Dr. G. Fitzhugh Beazley, Jr., CPA, 82, of West Columbia, died Feb. 16. A lifetime member of SCACPA, Dr. Beazley graduated from Marshall University, received his MBA from the Wharton School of Business, and his Ph.D. from The University of Pittsburgh. He taught accounting at Waynesburg College in Pennsylvania; the University of Pittsburgh, where he was also It’s a rare combination: on the faculty at La Universidad Central de Ecuador; and the College of Business Jerry has more than 14 years of courtroom at the University experience, having litigated cases in 18 states and of South Carolina. scored several multi-million dollar verdicts. He At USC he chaired graduated with distinction from Georgetown’s committees Tax LL.M. program, after receiving his J.D. and that developed A.B. from Duke University. the Master of Jerry represents North and South Carolina clients International in U.S. Tax Court proceedings, federal refund Business Studies actions, tax collection actions, and state income and Masters of and sales tax proceedings. Accountancy When it’s time for your client to call in a tax programs. He lawyer, Jerry Meek is courtroom ready. also led the USC faculty in developing a graduate school of business at the Pontifical University Madre Y Maestra in Santo Domingo, 250 N. Trade Street, Suite 207 | Matthews, NC 28105 Dominican Tel: 704.845.9490 | www.jerrymeek.com Republic (DR).

A tax lawyer with courtroom savvy.

South Carolina CPA Report

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South Carolina

CPA

CATAWBA

2013 Dues: $90 (18 months), includes discounted registration to CPE seminars and free family/networking event: • Aug. 19: Professional Issues and South Carolina Ethics (8 hours CPE) - Baxter Hood Center* • Oct. 29: Federal Income Tax Update (8 hours CPE) Art Werner - Baxter Hood Center • Dec. 3: FASB/Forensic Accounting (8 hours CPE) Mark Hobbs – Baxter Hood Center*

CENTRAL

2013 Dues: $75 (18 months), includes discounted registration to CPE seminars, free Oyster Roast, Family Day, Business Meeting Dinner and Entertainment Night: • May 8: A&A Update and South Carolina Ethics, 2 hours state specific (8 hours CPE) Russ Madray • July 15: Governmental A&A (8 hours CPE) Jeffrey Lieman* • Sept. 13: A Gift Bag of Individual Tax and Financial Planning Topics (8 hours CPE) Neil Brown* • Oct. 7: Professional Issues Update (2 hours CPE)*

COASTAL

2013 Dues: $195 (18 months), includes free registration to CPE seminars (additional registration fee for Tax Update) and free registration to family/ networking event: • May 13: A&A Update/Forensic Accounting (8 hours CPE) Mark Hobbs – Embassy Suites, N. Charleston • Sept. 24: Technology Update and A Survey of Tax Law and Regulatory Changes, focused on S.C. (8 hours CPE) Randy Johnston (6 hours), Jason Sweatt (2 hours) – Embassy Suites, N. Charleston • Oct. 3: Professional Issues and South Carolina Ethics (4 hours CPE) – Embassy Suites, N. Charleston*

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

FOOTHILLS

2013 Dues: $60 (18 months), includes discounted registration to CPE seminars and free social/networking events: • Sept. 25: Professional Issues and South Carolina Ethics (4 hours CPE)* • Oct. 28: Federal Income Tax Update (8 hours CPE) Art Werner

GRAND STRAND

2013 Dues: $187 (18 months), includes free registration to CPE seminars; Holiday Party and Student Recruitment Fair: • Aug. 27: Professional Issues and South Carolina Ethics (8 hours CPE) - Horry Georgetown Tech* • Nov. 20: A&A Update (8 hours CPE) Russ Madray – Springmaid Beach*

PEE DEE

2013 Dues: $75 (18 months), includes discounted registration to CPE and free social events: • May 7: A&A Update (8 hours CPE) Russ Madray - SIMT • Aug. 26: Professional Issues and South Carolina Ethics (4 hours CPE) SIMT * • Oct. 30: Federal Income Tax Update (8 hours CPE) Art Werner - SIMT

PIEDMONT

2013 Dues: $50* (18 months), includes registration for CPE at a nominal fee: *The Piedmont Chapter is subsidizing a portion of the dues for 2013-2014 and the membership renewal will remain $50 (covers 18 months) for members. • May 21: Anderson - A&A Update (8 hours CPE) Russ Madray • Sept. 23: Anderson - Professional Issues and South Carolina Ethics (6 hours CPE) * • Sept. 24: Greenville - Professional Issues and South Carolina Ethics (4 hours CPE)*

* Registration opens two months prior.

SEA ISLAND

2013 Dues: $202 (18 months), includes free registration to CPE seminars and special events: • May 14: A&A Update (8 hours CPE) Russ Madray • Oct. 4: Professional Issues and South Carolina Ethics (8 hours CPE) * • Nov. 1: Federal Income Tax Update (8 hours CPE) Art Werner

SCACPA Professional Issues and South Carolina Ethics Registration opens two months out. Aug. 19: Baxter Hood Center, Rock Hill (8 hours CPE) Aug. 26: Southeastern Institute of Manufacturing and Technology, Florence (4 hours CPE) Aug. 27: Horry Georgetown Tech, Myrtle Beach (8 hours CPE) sept. 23: Hilton Garden Inn, Anderson (6 hours CPE) sept. 24: Hilton, Greenville (4 hours CPE) sept. 25: Marriott, Spartanburg (4 hours CPE) Oct. 3: Embassy Suites, N. Charleston (4 hours CPE) Oct. 4: Hilton Head Island Beach and Tennis Resort, Hilton Head (8 hours CPE) Oct. 7: Doubletree by Hilton, Columbia (2 hours CPE) *

*Does not include South Carolina Ethics

South Carolina CPA Report

focus on cPe

Design a Curriculum that Fits Your Educational Needs and Your Schedule

id you know SCACPA has a full schedule of continuing education programs designed for CPAs in business and industry? Finding professional development that fits your specific needs as a CFO, controller or financial manager can be difficult. When you are out of the office meeting your educational requirement, you want your time to be spent wisely. That is why we have partnered with vendors that provide relevant tools and resources specifically for you. Now, you can design a curriculum that fits your educational needs and your schedule.

JULY 16 – MYrTLe BeAcH Loscalzo's Deceptive revenue recognition and Other Accounting Techniques - recognizing the warning signs (92713) Don't join the growing list of accounting professionals in trouble. We will discuss: • The accounting "stories" behind over 40 famous financial statement frauds such as Fannie Mae, McAfee, Parmalat, Tyco, Waste Management, and WorldCom • Deceptive accounting practices • The warning signs of problems in areas such as revenue recognition, related parties, significant estimates, capital items vs. expenses, choices among accounting methods, and improper activity to evade taxes

JULY 22-23 – wesT cOLUMBiA comprehensive fAsB standards (92113A) Are you looking for a comprehensive review of new financial accounting standards and a refresher on other core standards? This broad-ranging course covers FASB Codification Updates and other standards that apply to all

South Carolina CPA Report

companies. Emphasizing financial statement disclosures in addition to accounting methods, this course also presents implementation guidelines and disclosure illustrations from actual financial statements. Review reporting standards for balance sheets, income statements and the statement of cash flows, and understand FASB standards that have the greatest impact on accounting and financial reporting.

AUGUsT 12 – cHArLesTON forensic Accounting: A comprehensive Guide to conducting financial fraud investigations (93513) This course provides an in-depth review of the major processes that are performed in a financial fraud investigation. These processes include planning, hypothesis generation, Internet-based and other types of research, link analysis, statistical and other forms of data analysis, interviews and interrogations, and several other phases.

AUGUsT 14 – cHArLesTON Occupational fraud: The Top 50 Tips on How to Prevent executives, Managers and employees from stealing and Not Getting caught (93913) Many managers or auditors implement controls to prevent and detect fraud based on a "one-size fits all" checklist. Many times, the checklist items are not appropriate for businesses, or are out of date. This course provides a description of classic and emerging controls that are effective in reducing the risk of fraud in a variety of transaction processing systems. They could be manual, a hybrid manual/IT, or even entirely electronic (such as those proposed for some cloud computing applications).

sePTeMBer 16 – GreeNViLLe current Developments and Best Practices for Today's cfOs and controllers (94513) This course has been designed to give the CFO and controller the skills needed to lead their organizations into the rapidly changing decade. The course's author has been in the trenches, having held positions in finance and senior management, and understands the issues from both perspectives. Another unique aspect of this course is its constant evolution. We know change is occurring at an exponential rate, so certain chapters dealing with current domestic and global economic conditions are included along with current technical issues on the cloud and social media.

sePTeMBer 17 - GreeNViLLe cfO/controller's roadmap to Organization success with integrated Planning, Budgeting and forecasting (94713) This program is designed to completely integrate the planning process and show how it can move from longrange thinking, through medium term planning, through the annual budget, and to the monthly cash flow forecast. Also, the program will teach the participant how to avoid many political pitfalls that end up causing a lack of accountability and often cause the planning process to be de-motivating to the staff. This isn't just a strategic planning course or a budgeting course. It is a course that looks at the entire planning process from beginning to end and shows how much smoother it can be when it is an integrated process. n

Learn more at www.scacpa.org/CFOseries.

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

focus on cPe

NEW! CPE Flex Pass The CPE Flex Pass is just thatâ&#x20AC;Ś a flexible way to educate your team!

Save the Date! 2013 Conferences

You select the dollar amount and the whole team benefits. No longer does each staff member have to request funds to register for CPE. The Flex Pass funds are fully transferrable to team members, colleagues or clients.

industry conference

fraud conference

Sept. 26, Columbia

n Flex Pass accounts are available in any dollar amount.

small firms conference

Oct. 17, Columbia

financial Planning conference

Oct. 23, West Columbia

Governmental Bonus workshop

Nov. 5, Columbia

cPA summit

Nov. 13-14, Columbia

Accounting & Auditing conference

Dec. 5-6, Charleston

n Flex Pass account dollars can be used on all seminars, conferences, webinars (excluding third party registrations), and most chapter-developed programs. n Your team has access to more than 1,000 CPE programs annually. n View your Flex Pass balance anytime online!

May 16-17, Columbia

emerging Leaders conference Aug. 22-23, Columbia

n Valid April 15, 2013 through Jan. 31, 2014

CPE By Design Create. L earn. Excel.

ANNOUNCING eMaterial Changes

We are committed to reducing the amount of paper at our events and our carbon footprint. Therefore, beginning April 1, 2013, unless otherwise noted, materials for all courses and conferences will be provided electronically three business days prior to the program date. The option to purchase printed materials is available for most courses (excluding broadcast seminars, conferences, webinars/webcasts). Please see specific course for fees. Materials are available online at www.scacpa.org approximately three days before the event. Download the materials to your laptop or iPad, and then bring them to the event. Charging stations are provided during the events to keep your devices charged. For more information on eMaterials visit www.scacpa.org/ myelectronicmaterials or contact the CPE Team at 888-557-4814 ext. 110 or 112. (888) 557-4814 | www.scacpa.org

South Carolina CPA Report

focus on cPe

Design Your CPE Experience Reva Brennan, MPA, CAE, IOM

he rapid pace of today’s business environment and growth of technology, like tablets that turn the local coffee shop, your living room, and the pool into an instant office, have changed the way CPAs think about CPE. SCACPA has combined live training seminars, conferences and chapter events with webcasts, webinars and self-study to provide you more options to meet your specific needs. It is CPE by Design.

CPE By Design Create. L e a rn. E x c el .

LiVe PrOGrAMs Seminars – If you prefer the traditional setting for your educational opportunities, where you can interact with the instructors and connect with your peers. SCACPA offers over 100 seminars to meet this need. Learn more at www. scacpa.org/coursecatalog. Conferences – If you enjoy snippets of what you need to know now and emerging topics, then SCACPA offers approxi-

mately 10 conferences in the areas of: accounting and auditing, fraud, financial planning, government, benefit plans, tax, small firm issues and more. These conferences highlight nationally recognized speakers from across the country. Learn more at www. scacpa.org/conferences. On site – Your firm has a specific need that you want addressed in a private setting, no problem. Customized Onsite Training is the best option to meet this demand. SCACPA has access to hundreds of titles that can be modified to your firm’s specific need at a convenient location for you. Learn more at www.scacpa.org/onsitetraining.

ONLiNe LeArNiNG Webcasts – These programs provide an excellent alternative to the traditional classroom. Through our ACPEN partnership we offer live group webcasts across the state in Charleston, Greenville and West Columbia. There is a new topic each month for our eight hour Signature Series that can be viewed in a group setting or online. In addition, there are more than 100

additional interactive opportunities available online. These programs provide video and audio experiences. Learn more at www.scacpa.org/ webcasts. Webinars – Through our various partnerships we offer over 500 programs in 2-8 hour increments to meet the demands of everyday life. Topics cover a variety of areas and are available as live audio only CPE that you view from your computer. There are also 24 hour on-demand webinars that are considered self-study. Learn more at www.scacpa.org/webinars. Self-Study – SCACPA has partnered with QAS approved sponsors AICPA, SmartPros, Surgent, and The Madray Group to offer self-study on a variety of topics, including the SC ethics. These items are available on demand 24/7. You take a quiz following each program to receive CPE credit. Learn more at www.scacpa.org/selfstudy. In an effort to meet your needs, we continue to monitor the environment for new opportunities to assist you in designing the CPE program that meets your specific needs. If you have suggestions on our CPE program, please email rbrennan@scacpa.org. n

Emerging Leaders Conference • August 22 – 23, 2013 Learn the critical skills needed to benefit your career and firm Hosted by the Young CPAs Cabinet Marriott City Center Columbia, SC

Highlights of this special two day conference include: •

Important soft skills – networking, communications, leadership and more.

•

cONfereNce iNfOrMATiON Course Code: 417113

Critical technical skills – South Carolina taxes, accounting and auditing, South Carolina ethics, and more.

•

Emerging topics – professional issues, forensic accounting, and more.

CPE Credit: 16 hours

•

Concurrent and general sessions, so you can maximize your time.

Fees: Early Bird Member, $280 by 8/1/13; Member, $305; Non-member, $505

•

Access to nationally recognized speakers and thought leaders of the profession.

Discounted Room Rate: Marriott City Center, 1200 Hampton Street, Columbia, SC $129 per night (rate expires 7/31/13)

•

Special networking on Thursday evening.

South Carolina CPA Report

fOr MOre iNfOrMATiON Or TO reGisTer VisiT www.scAcPA.OrG/YOUNGcPAs.

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

focus on cPe

2013 Vacation Clusters GrAND sTrAND cLUsTer July 15-17 • Myrtle Beach

w The Best Income Tax, Estate Tax, and Financial Planning Ideas of 2013

Warm sun, cool water and a gentle breeze - when you think “happy place,” is this what you envision? Daily demands can weigh you down as your to-do list grows. Wouldn’t it be great if you could knock out part of your to-do list AND go to your happy place?

w Loscalzo’s Special Purpose Frameworks and Other Alternatives to GAAP (Formerly OCBOA)

With SCACPA’s 2013 Grand Strand Cluster, you can do just that! As always, this year’s cluster combines the top instructors with the latest industry information set up in a convenient and affordable format.

The Coastal Cluster is the perfect setting to combine earning CPE with fun, extracurricular activities in beautiful downtown Charleston. Charleston offers carriage rides, historical tours, art galleries, great restaurants and a variety of shopping opportunities.

COURSES INCLUDE:

w NEW! Loscalzo’s 2013 FASB and AICPA Update w Fiduciary Income Tax Returns - Form 1041 Workshop w Loscalzo’s Deceptive Revenue Recognition and Other Accounting Techniques - Recognizing the Warning Signs

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My number is… 5

w Surgent McCoy’s Multistate Tax Update

cOAsTAL cLUsTer August 12-14 • Charleston

Create your own schedule by choosing from six different courses covering hot topics such as fraud and internal controls in addition to tax planning and retirement benefits! Acquire 24 hours of CPE in only three days!

COURSES INCLUDE:

w NEW! Forensic Accounting: A Comprehensive Guide to Conducting Financial Fraud Investigations w Surgent McCoy’s 2013 Annual Tax Planning Guide for S Corporations, Partnerships, and LLCs w NEW! Exploring the Updated Internal Control Framework: Critical Concepts in Design, Evaluation, Implementation and Monitoring w The Top 50 Business Tax Mistakes Practitioners Make and How to Fix Them w NEW! Occupational Fraud: The Top 50 Tips on How to Prevent Executives, Managers and Employees from Stealing and Not Getting Caught w Social Security, Medicare, and Prescription Drug Retirement Benefits: What Every Baby Boomer Needs to Know Now Visit www.scacpa.org/clusters for more information or to register. n

}

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So what’s your number? Higher revenues and profits? More and happier clients? Fewer work hours? An earlier retirement date? ADP can help add it all up for you, with products and services that go beyond just payroll. Like cash flow, risk and talent management solutions so you work smarter, easier and more efficiently. ADP offers innovative solutions, superb service and outstanding results. Discover YOUR number – by calling OUR number: 855-408-3751 or visit us at www.accountant.adp.com/my-number

Classified Buying or Selling an Accounting Practice? Want a “clean exit?” Experience The Seamless Succession™-to facilitate the absolute best transfer of your accounting practice. Learn more about our unique, 5-step process…..and view our most up-todate opportunities for purchase. We are affiliated with Accounting Practice Sales, North America’s Leader in Practice Sales. Please visit www.PoeGroupAdvisors.com or email us at info@poegroupadvisors. com . 888-246-0974 • Columbia, SC $235,000 • Greensboro, NC $485,000 • Winston Salem, NC $225,000 Recently Sold: Rock Hill, SC $ 1,500,000; Columbia, SC $ 115,000; Piedmont, NC $415,000 LOCAL FOCUS - PERSONAL SERVICE The focus of our firm is only on CPA and Accounting practices in the Carolinas and Southern Virginia. This allows us the time to understand local issues and The Carolinas’ Resource for Accounting Practice Sales opportunities and enables us to be close enough to provide personal service. Our purpose is to help owners decide if and when they should sell or transition out of their practice. As part of the process, we help them develop and implement a plan to maximize the firm’s value and address any concerns about transitioning it to a new owner. This allows us to offer buyers firms with demonstrated value and a plan to sustain that value through the transition. To learn more, visit www. stratfordconsultinggroup.com or call Bill Britt @ 866-768-0089. Looking for CPA Interested in Joining Midlands Area Practice - Highly successful and well established CPA firm in Midlands area of SC is interested in talking with a CPA who would like to join the practice with intentions of eventually owning and operating the firm for the future. Well diversified and enjoyable client base. Approximately 60% tax, 20% business accounting/advisory services, 20% financial/tax planning. This practice has built a well respected reputation and offers opportunities for future growth and stability. Please send personal/confidential inquiry/resume for further information to colacpafirminfo@gmail.com.

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Comfort Letters, con’t. from page 33 engagement may be construed as a violation of professional standards and have licensure implications. Another insurer offered an example of how a CPA was sued by a lender alleging negligent misrepresentation of a client’s finances and loss prevention tips. Some insurers have standard letters that a CPA may use when responding to a request for a comfort letter. When asked to provide a comfort letter for a client, a CPA can best avoid risk by sticking to the professional standards and not caving in to pressure from a client or lender. While clients need to have the flexibility to obtain credit, the responsibility for underwriting the loan lies with the lender, not the CPA.

South Carolina CPA Report

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

south carolina Association of cPAs

PRSRT STD US POSTAGE PAID PERMIT NO. 1146 Columbia, SC

570 Chris Drive, West Columbia, SC 29169

By Design Create.

Excel.