Third Edition 2014 South Carolina Association of Certified Public Accountants
International Tax Practice: Opportunities and Risks
Two SCACPA CPAs Vying for Comptroller General
Local CPA Strives to Fulfill Godfather of Soul’s Legacy
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CPA Report
South Carolina Association of CPAs
South Carolina Association of Certified Public Accountants Magazine Volume 44, Third Edition 2014 OFFICERS John B. Fennell, CPA, Chair Robert M. Tilton, CPA, Chair Elect
Penny Lewis, CPA, Secretary – Treasurer Sharon E. Mann, CPA, Immediate Past Chair BOARD OF DIRECTORS Patrick P. Carey Jr., CPA Zoe M. Davis, CPA Suzanne M. Harnois, CPA Lesley H. Kelly, CPA Cheryl O. Lang, CPA Brad Leford, CPA J. Patrick (Pat) McDermott, CPA James W. McIlrath, CPA Kenneth L. Newhouse Jr., CPA Erin H. Pate Jason C. Sweatt, CPA CHIEF EXECUTIVE OFFICER Erin H. Pate, CAE MANAGING EDITOR Maureen A. Taylor GRAPHIC DESIGNER Lisa S. McGee CONTRIBUTING WRITERS Reva Brennan, CAE, IOM Donny Burkett, CPA John B. Fennell, CPA Stani Fowler, CPA Erin P. Pate, CAE Frances J. Pearce, CPA Maureen A. Taylor
2013-14 EDITORIAL BOARD Charles E. Alvis, CPA, MPA, MBA, Chair Tim Baker, CPA John B. Brantley, CPA Robert C. Charles, CPA Amanda S. Colgate, CPA Lisa S. Cooke, CPA Lesley H. Kelly, CPA Margaret L. Lattimore, CPA A. D. “Dave” Masters, CPA Erin H. Pate, CAE Frances J. Pearce, CPA Derrick B. Stark, CPA Maureen A. Taylor
We’re Moving, 19
Special Section: International Business 20 International Tax Practice: Opportunities and Risks
23 Member Profile: International Tax a Natural Fit
In This Issue 4 11 12 13 14 17 19 24 27 29
Meet the Chair Annual Convention and Business Meeting 2014-15 Board of Directors South Carolina’s Newest CPAs 2013-14 Committee Reports Introducing the Next Generation of Leaders We Are Moving Local CPA Strives to Fulfill Godfather of Soul’s Legacy Two CPAs Vying for Comptroller General New Competency Framework Strengthens CGMA Value
In Every Issue 6 8 28 30
Association News On Your Behalf BOA Update Chapter Connections
31 Member News 32 Welcome New Members 33 CPE 38 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
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Meet the 2014-15 Chair “If we are afraid to make a few mistakes and not experiment a little, we will not grow as an organization.” Q: Tell us about your experience as a CPA. Why did you choose the profession? What led you to business and industry? I started in public accounting in late 1986 when I completed my Masters of Accountancy from the University of South Carolina. I chose the CPA profession based upon advice from my father and his main business partner, who was a former CPA. My father believed (and I believe rightfully so), that if you can understand the numbers, you have a big advantage over others in business. I ended up in the private side of the profession, business and industry, because, while I enjoy accounting, I also enjoy helping make a business successful. I like dealing with all the aspects of our business, including HR, IT systems, risk management and strategic planning. Q: What has been the most rewarding part of your career? The most challenging? The most rewarding has been working with so many good people. Early in my career I had mentors that helped me develop and gain confidence in my field. Now, I enjoy mentoring others and hopefully passing along a little of what I have learned over the last 28 years. The most challenging part of my career is doing everything I want to do. I thought after 28 years I would have accomplished more.
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Time moves faster than you think it will. Q: You have been involved in SCACPA leadership for a number of years. Why did you become a volunteer? I have been a member of SCACPA for 25 years, but have only been very active for the last 10. When I moved back to South Carolina in 2003, my kids were a bit older and I determined it was time that I start giving back to my profession. I became a member of the Business and Industry Committee and agreed to speak at the 2003 conference. I went on to become an officer in the Coastal Chapter and when I relocated to the Grand Strand area, I was elected chapter representative to the SCACPA board. I have met a number of great people through my involvement in SCACPA that I would not have met otherwise, including SCACPA’s great staff. Q: What are some of your milestones and how has SCACPA impacted your career? Some professional milestones include passing the CPA exam in 1986, becoming a partner with PwC in 1999, working as CFO at Burroughs and Chapin Company and working through the economic downturn of 2008. Another milestone is being elected chairman of SCACPA. SCACPA has helped me stay connected with others in my profession and helps to keep my CPA certificate relevant. I owe a number of the many professional
Bratton Fennell, CPA SCACPA member since 1989
connections I have made over the years to my membership in SCACPA. I believe we have the best group of professionals in the state and I am proud to be part of it. Q: What other community volunteer opportunities have you been involved in? • Founding board member and coach of the Myrtle Beach Track Club • Member and past board member of the Myrtle Beach Rotary Club • Member of the Episcopal Church • Active member of the Grand Strand and Charleston Running Clubs Q: What do you see as the top issues facing the profession and the association? As a profession we must stay relevant to our changing world. CPAs need to have problem solving skills more than number crunching skills. Number crunching is easily outsourced, but problem solving is not. For CPAs to differentiate themselves they will need to have specialized knowledge or proficiency in one or more areas. It will be more difficult to be a generalist in this complex world. CPAs will also need to be better communicators to help others understand the value of services they are providing so that they can be properly compensated for the value they are bringing to the table.
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“We are also trying to focus more on our core mission, which is to help our members grow professionally.” SCACPA needs to remain relevant too. We are working to keep up with this changing world and become a more nimble organization. We are also trying to focus more on our core mission, which is to help our members grow professionally. Q: How is the board’s strategic plan addressing these issues? Our strategy includes the following initiatives: 1. Enable our members to deliver • Provide well thought out CPE • Look at new ways to deliver CPE and new models of how CPE is tracked (hours versus mastery of a subject) 2. Protect the public and the CPA license • We work with regulators and legislators to make sure our profession and the public are protected • Increase member awareness of advocacy among all members, including the young CPAs 3. Drive the Market to Our Members • Help the CPA brand in our market and lead in the effort to help provide credentials to our members that help differentiate the skills CPAs have to offer the public. • Reach out to students to consider our profession as the need for CPA’s continues to grow
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4. Strengthen our Membership • Provide leadership opportunities and training to all members (including our young CPAs) • Actively engage students, CPA candidates and new licensees through focused outreach programs 5. Work to be an association that strives for excellence in governance and structure. • Hire the best executive staff to run the organization and let them do their job • Provide an organization that is future focused and is willing to make changes when warranted • Develop a continuing group of leaders to keep the association strong for years to come Q: As SCACPA chair, what are your top goals in the coming year? My goals include: • Review our current CPE offerings and look at how they should be delivered in the future (which may not be that far away). I plan on forming a task force to help in this effort • Work with our staff and lobbyist to make sure that our profession is regulated properly and thoughtfully • Give the SCACPA staff general guidance and allow them to manage our
organization. My job is not to run SCACPA, but to help set direction and give guidance to senior management. I hope to be an asset to the SCACPA staff, who I am excited to work with in the coming year Q: If you could choose just one thing to accomplish, create or improve during your tenure what would it be? I hope to help create an environment where it is okay to try new things and make a few mistakes. Organizations that grow and progress take calculated risks that sometimes don’t work out. If we are afraid to make a few mistakes and not experiment a little, we will not grow as an organization. Q: Name one thing your peers would be surprised to learn about you? I grew up in a family of five kids, two of which are Korean. I grew up eating Asian food most of my life and that is why I can use chopsticks so well. n
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The Association is Turning 100! In 2015, the S.C. Association of CPAs will mark its centennial. While our Centennial Committee is busy planning the celebration we are also compiling a history of the association and the profession. We are looking for photos of association events or activities, or other photos of historical significance. If you have photos to share, please email mtaylor@scacpa.org.
Amran Joins Team Danielle Amran recently joined the association’s CPE team as seminars and online learning manager. She is responsible for assisting with planning and administering SCACPA's CPE program, overseeing logistics for seminars and managing online learning. Danielle is a native New Yorker with almost 15 years of experience in the non-profit sector in marketing, communications and event management. In her spare time, Danielle enjoys spending time with her children, painting and mentoring young entrepreneurs.
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CALL FOR VOLUNTEERS Get Engaged - Join a SCACPA Committee, Task Force or Action Team Today! Get engaged in a SCACPA committee, task force or action team and share your skills, gain practical experience and build your contacts. Whether you are a seasoned professional or new to the profession, your voice matters and you can make a difference. We need you to help move SCACPA’s programs and projects forward. SCACPA’s volunteer opportunities encompass a wide variety of interest areas and time commitments. Please join us. Visit www.scacpa.org/ getinvolved and explore the options.
Share Your Expertise as a CPE Discussion Leader or Content Developer Are you interested in becoming a discussion leader of continuing professional education or writing content for continuing professional education programs? If yes, we want to hear from you. SCACPA is seeking experts in all fields of study that have the experience and/or interest in education for the CPA community in South Carolina.
CLICK
To submit your interest in working with SCACPA. Email your resume/curriculum vitae, previously developed content, or course description/outline to Reva Brennan at rbrennan@scacpa.org
HAVE YOU RENEWED YOUR MEMBERSHIP July 1 marked the start of the 2014-15 membership year. If you have not yet renewed your dues, you can do so online at www.scacpa.org/renew or by contacting the SCACPA office at 803-791-4181. When you renew, your dues are paid through June 30, 2015. Questions? Contact the SCACPA office or email membership@scacpa.org.
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Promoting the Profession
Moore, Beauston & Woodham Volunteer with Miss South Carolina Pageant Moore, Beauston & Woodham, L.L.P. volunteered to assist with the Miss South Carolina and Miss South Carolina Teen Pageant by tallying the judges votes each night at the Township Auditorium in Columbia. The Miss South Carolina Organization is the largest provider of scholarships to young women in South Carolina. The pageant runs for five nights and this is the third year Moore, Beauston & Woodham has assisted with the pageant.
Shana M. Adams Communications & Membership Coordinator Ext. 111 sadams@scacpa.org Pictured (left to right): Andre Talley, Michael Targia, Stephen Keene and Robbie Ellison.
CPAs from around the state will come together on Sept. 19 to give back and make a difference in their communities. There are a number of ways you can participate - as a chapter, as a firm or as an individual.
So mark your calendar and visit www.scacpa. org/serviceFAQ for additional information and suggestions.
Pictured: SCACPA’s Young CPA Cabinet joined with Habitat for Humanity in 2013.
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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.
MARK YOUR CALENDAR CPA Day of Service is Sept. 19
Whether it is holding a food drive to support your local community food bank, Dancing with the Stars to raise funds for education, or simply donating money to your favorite charity we want to hear about it.
SCACPA
Danielle Amran Seminars and Online Learning Manager Ext. 112, damran@scacpa.org Reva E. Brennan, MPA, CAE, IOM Chief Operating Officer Ext. 103, rbrennan@scacpa.org April C. Cox Conferences and Events Manager Ext. 110, acox@scacpa.org Karen M. Hancock, CPA Finance Director Ext. 108, khancock@scacpa.org Lisa S. McGee Member Services & Graphic Design Coordinator Ext. 106, lmcgee@scacpa.org Glenna P. Osier Peer Review Director Ext. 107, gosier@scacpa.org Erin Pate, CAE Chief Executive Officer Ext. 104, epate@scacpa.org Maureen A. Taylor Marketing & Member Services Director Ext. 105, mtaylor@scacpa.org
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On Your Behalf For the profession, by the profession – that’s what the South Carolina Association of CPAs is all about. Our board of directors, committees and task forces are embarking on projects and programs that strengthen the profession and enable members to improve their knowledge, network and technical skills.
S
ADVOCACY
STRATEGIC PLAN
GOVERNANCE
BRANDING
LEADSERSHIP
INNOVATION
CACPA’s strategic plan is the foundation for programs, initiatives and activities developed on behalf of members. The current five-year plan, developed in 2010, includes five overarching goals: 1. CPE innovation (enabling members to deliver) 2. Advocacy (protecting the public and the profession) 3. Leadership and the younger CPA (strengthening our membership and profession) 4. Membership, communications and branding (driving market to members)
5. Structure and governance (striving for excellence in association operations and governance) Within each of these five areas there are many activities and programs offered for your benefit. Following is an update on the first three. Look for a piece on numbers four and five in the next issue.
CPE Innovation – Enabling Members to Deliver
SCACPA is committed to offering a variety of course topics and formats, including live conferences and seminars, webcasts and webinars and more. In 2013-14, we served 3,350 people in just our live courses. There are dozens of online courses also available, making it easier to stay up-to-date on accounting issues and current events affecting the profession. Beginning in October, SCACPA will offer CPE in a new office/classroom environment. Featuring an intimate and high-tech classroom, the space is conducive to traditional lecture format as well as a more interactive setting. Because CPAs are getting more of their required CPE online, SCACPA has invested in webcast technology. Soon many more live classes will be streamed online and real-time for convenient and lastminute access. At its May meeting the SCACPA Board of Directors heard a presentation on the future of learning by Erin McCormack, director of innovation at AICPA. AICPA, along with the leadership of the National Association of State Boards of
Accountancy (NASBA) and many state societies of CPAs, are starting down a path of revisiting and rethinking the intent of CPE -- how it is constructed, how it is delivered and how it is consumed. With the advent of technology and the increasing pace of business and information, the question becomes - is the traditional model of 40 hours, measured in hours, still appropriate to keep CPAs competitive and knowledgeable? Look for more on this topic in a future issue of The CPA Report. For the seventh consecutive year, the Professional Issues Updates are being offered starting this month in nine communities throughout the state. The four-hour course attended annually by some 1,200 CPAs, is free to members and carries a value of $122.50 or 61 percent of your annual membership dues. This year you’ll receive one hour of specialized knowledge credit along with three hours of personal development while hearing important profession updates and reconnecting with other CPAs in your area. We look forward to seeing you there!
Advocacy - Protecting the public and the profession
For years now, members have told us that advocacy is an important aspect of what SCACPA does on your behalf. This includes advocacy for the profession, for you as a practicing CPA and for a healthy business climate in our state. In recent years we have successfully raised the bar for the profession’s engagement. It is my hope that even for those who are uneasy about or have an outright distaste for public policy and politics, that you have an appreciation for SCACPA’s work in this area.
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In 2013-14, 344 members contributed $17,996 to the PAC. Are you in this number? If not, please consider a contribution!
The 2014 legislative session was a good one for the profession. Two major pieces of accounting legislation were passed. The first is the annual federalstate tax conformity bill, which was signed into law by the governor on March 4. A few years back, this legislation was always coupled with the S.C. Department of Revenue’s annual technical corrections bill and often languished until the end of the legislative session in June. Members of SCACPA wanted certainty about the tax rules earlier in the calendar year. Now we have established an understanding with key legislators that stand-alone conformity legislation must get passed early. It seems to be working! It took two years and a lot of work to pass H.3459, which is legislation with updates and corrections to the state’s accountancy practice act. A major part of this legislation deals with strengthening the profession’s regulator, the S.C. Board of Accountancy, as you will read about in Donny Burkett’s article on page 28. Our belief is that an effective regulating body results in a stronger profession. In addition, CPAs are now explicitly exempted from having to be a licensed private investigator when offering forensic accounting services to the public. To view this legislation please visit scstatehouse. gov and enter the bill number. On the regulatory side, SCACPA maintains a close relationship with the S.C. Department of Revenue. Through the
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efforts of SCACPA’s Ad Hoc Committee, which meets quarterly with the agency director, we are able to discuss ideas and concerns openly. I hear most from members in the tax arena about the frustrating inability to electronically file partnership returns among other returns. The SCDOR asked for SCACPA’s help in advocating for a state budget allocation to help them purchase an “off-the-shelf” computer/data system that many other states are using successfully. This new system would easily accept the e-filing of all common returns. We are happy to report that the legislature fully funded the agency’s 2014 request of $12 million. This is a multi-year, $40 million project, and we are delighted that real efforts to modernize are solidly underway. Bill Blume, CPA, has served admirably as the SCDOR director following the data breach of 2012. Blume retired and left the agency this summer, and we are looking forward to working with the Interim Director Rick Reames. Reames came to the agency earlier this year as chief of staff; he is an attorney well-versed in tax and was recently with the law firm of Nexsen Pruet. As 2014 is an election year in our state, the CPA-PAC kicks into gear. SCACPA’s CPA-PAC, a vital part of our advocacy efforts, is membermanaged, member-driven and member-focused. The PAC trustees are all CPAs who are appointed by SCACPA’s board chair. The CPA-PAC has supported a number of legislative candidates this year. In addition, the CPA- PAC has supported the major candidates for governor and comptroller general, a seat for which there are two CPAs and members of SCACPA vying (see page 27 for more). A full report on CPA-PAC activities will run in the next issue of The CPA Report.
Thank you to the following firms for their contributions: • Deloitte & Touche, LLP • Derrick Stubbs and Stith, LLP • Dixon Hughes Goodman, LLP • EY • Grant Thornton, LLP • KPMG, LLP • Moore Beauston & Woodham, LLP, CPAs • Pope Smith Brown & King, PA • PricewaterhouseCoopers, LLC • Schmoyer and Company, LLC • Smith Sapp Bookhout Crumpler & Calliham, PA
Leadership and the Younger CPA Strengthening our membership & profession
Since 2009, SCACPA has sponsored the Young CPA Leadership Cabinet to foster leadership among the younger professional in SCACPA’s membership ranks. It has been an outstanding success with some 56 CPAs participating. This year, the program evolved to a new height in terms of rigor and training, and the program now carries a new name – the CPA Leadership Institute. Still intended for the younger professional, the Institute offers the annual class of 20 a series of leadership training classes. We are excited about the launch of the Institute and the energetic and smart participants in its inaugural class. See page 17 to see this year’s class members.n Erin Hardwick Pate, CAE, has served as SCACPA’s CEO since 2005. She currently serves as immediate past-president of the CPA Society Executives Association and as a member of AICPA’s Future of Learning Task Force that is studying the evolution of professional education.
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The AICPA Professional Liability Insurance Program
looks at insurance from a fresh perspective…
YOURS
When you sit down with a client, you strive to see their business from their perspective and make recommendations based on their unique situation. We operate similarly. Whether your CPA firm is a one person operation or national in scope, the AICPA Professional Liability Insurance Program offers insurance products and solutions designed to fit your needs. Get the benefits of a national provider with the personal service you deserve: • Insurance created to cover the unique exposures of CPA firms • All size firms and areas of practice are eligible • Premium credits designed to reflect the way CPAs do business Endorsed by:
Endorsed by:
For professional liability insurance designed from YOUR perspective, please contact Charles Cauthen at BB&T Insurance Services, Inc. at 800.868.3721 today!
Underwritten by:
Administered by:
More than 25,000 CPA firms depend on the AICPA Professional Liability Insurance Program. Aon Insurance Services is the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc. (AR 244489); in CA and MN, AIS Affinity Insurance Agency, Inc. (CA 0795465); in OK, AIS Affinity Insurance Services Inc.; in CA, Aon Affinity Insurance Services, Inc. (0G94493), Aon Direct Insurance Administrators and Berkely Insurance Agency; and in NY, 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 registered trademark of CNA Financial Corporation. Copyright © 2014 CNA. All rights reserved. E-10486-814 SC
Annual Convention
and Business Meeting
O
n May 12, CPAs gathered in Columbia for the S.C. Association of CPAs Annual Convention & Business Meeting. The convention featured a National Professional Issues Update with AICPA Vice Chair Tommye Barie and a Behavioral Ethics session with SCACPA’s own Mark Hobbs, CPA. Noted speaker, coach, artist and author Larry Kryske shared how to tap into your innovative potential. The Annual Business Meeting included the election of officers and board members for 2014-15. Attendees also heard an update on the association from Board Chair Sharon Mann and comments from Chair Elect Bratton Fennell. Other highlights included the New CPA Oath Ceremony, during which Barie administered the oath to 23 new CPAs. n
Pictured below: 1. Chair Elect Robert Tilton 2. Evelyn Luoma with SCACPA Member Dr. Gary Luoma 3. SCACPA Members chat at the member reception 4. AICPA Vice-Chair Tommye Barie and S.C. BOA Chair Donny Burkett 5. Speaker Larry Kryske 6. New CPA and SCACPA Member Tyler Gibbons
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SCACPA 2014-15 Board of Directors John Bratton Fennell
Robert M. Tilton
Burroughs & Chapin Company, Inc. Myrtle Beach Chair
WebsterRogers LLP Florence Chair Elect
Sharon Mann
Penny Lewis
General Information Services Inc. Chapin Immediate Past Chair
Patrick P. Carey Jr. Carey & Company, PA Hilton Head Island At Large
Zoe M. Davis
Suzanne M. Harnois Bernard M. Ackerman, CPA, PA Rock Hill At Large
McGregor & Company, LLP Columbia At Large
Cheryl O. Lang
Brad Ledford
DHG Search Advisors Greenville At Large
J. Patrick McDermott
Tindall Corporation Spartanburg At Large
James W. McIlrath
Kenneth L. Newhouse
Jason C. Sweatt
Hubbard Davis CPAs, LLP Mount Pleasant At Large
Duncan, Farmer, Munden, McIlrath & Cobb Myrtle Beach At Large
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Penny A. Lewis, CPA, PA Isle of Palms Secretary-Treasurer
South Carolina CPA Report
Moore Beauston & Woodham, LLP, CPAs & Consultants West Columbia At Large
Lesley H. Kelly
The Beach Company Charleston AICPA Council
EY Greenville At Large
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New CPAs Anne Anderson Angela Anderson* Frederick Ange Jr* Caitlin Baker John Barker John Bates* Zachary Bennett Ivan Bolds* William Boyd* Allison Braswell Jessica Brown Christopher Buckliew* Craig Calhoun* Elizabeth Casey Karen Caulder Bryan Causey Andrea Chapman* Paul Conboy Khristopher Conner* Joshua Coolidge* Bethany Craig Tracy Creech Amy Davis Russell Deal* Gabrielle Decker Patricia Dennis* Michael Ditchfield Kirk Dull* Jessica Dupee
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William Ellis Jr Jonathan Ferguson* Kyle Fischer* Eric Fletcher Donald Fox* Frances Fox* Robert Foy Amber Garrett* Gregory German* John Gerrald* Tyler Gibbons* Danielle Gocklin Megan Gorsline James Guffey* Sally Hamilton Elizabeth Hardegree Timothy Harris Charlotte Hart Laura Hembree Margaret Hodge Patricia Hopson* Walter Hunt Amanda Hunter* Melanie James Huei-Jyun Jhang* Daniel Jordan Gregory Koch Janine Konopko Thomas Korzik*
SCACPA member as of 6.30.14* Amy Krainas* Tamara Lawson Lindsay Lesesne* Mariah Lynch Robert MacDonald III Edwin MacEwan* Jennifer Marks Kirk Mason Shannon Maynard* Sarah McIlwain* Scott McIntyre Melanie McMaster Kinley McMillan Paul Medlin* Jennifer Meyer* Juan Mora Tobon Darion Morgan Maria Navarro Amber Neeley Cody Paul* Meredith Pflug Judy Ponds* Anjell Prince Julia Ramcke* Hallie Rawls* Carolyn Reilly Eric Rogers* David Rowley* Nickolas Schomisch
Martin Schwartz* Sara Scoppetuolo Allyson Scott* Lee Sellinger* Blake Sieber* Ryan Smith* Tony Smoak Kendell Stange* Jennifer Stewart* Lawton Stroud William Sweeting II Diane Thigpen Kathryn Vermillion Bryan Wates John Whaley III* Alfreda Whitlock* Preston Williams* Sonja Wilson Kelci Wilson* Samuel Winkler* Nichole Woodard Wendy Wray* Stanley Honeycutt Brandy Turbeville Neil Tabor* Kenneth Vella
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2013-14 Committee Reports Accounting Careers and Academic Relations
The committee organizes programs to attract high school and college students into the accounting profession and serves as a link between accounting educators and practicing professionals. In 2013-14, members reviewed the purpose and focus of the committee and how it can work more closely with the campus champions as well as the diversity effort currently underway at SCACPA. Upcoming activities include: • Review of committee name and mission. • Revising requirements and information reporting for campus champions. Also, communicating on a more frequent basis with them. • Working with the diversity work group to promote their efforts. • Further discussing high school involvement. Committee members: Tim Baker, CPA (Chair); Ben Cartwright, CPA; Erica A. Dawgert, CPA; Sherri L. Freudiger, CPA; Lesley H. Kelly, CPA; Charles P. McSwain Jr., CPA; Maureen A. Taylor (Staff Liaison)
Audit Committee
The audit committee is a committee of the board of directors responsible for oversight of the financial reporting process, selection of the independent auditor, and receipt of audit results both internal and external. The committee assists the board of directors to
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fulfill its corporate governance and overseeing responsibilities in relation to an entity’s financial reporting, internal control system, risk management system and internal and external audit functions. Its role is to provide advice and recommendations to the board within the scope of its terms of reference/charter. In 2013-14, the committee was responsible for oversight of the annual audit for calendar year ending Dec. 31, 2012 and short year ending June 30, 2012. Upcoming activities include oversight of the annual audit for FYE June 30, 2014 and review and evaluation of the current audit team. Committee members: William Barefoot (Chair); Bratton Fennell, CPA; Karen Hancock, CPA (Staff Liaison); Michael Putich, CPA; Robert Tilton, CPA
CPE Committee
The committee develops CPE programs, reviews policies with regard to program delivery, monitors competition and develops strategies for maintaining the integrity and competitiveness of the association's educational programming. Accomplishments and activities: • First Small Firms Conference was held Oct. 2013 • Began offering programs that fit into a curriculum such as the Older American Series, CFO Series, Tax Series, etc. • Re-evaluating the goals and objectives of this committee to ensure they are in line with the mission and goals of SCACPA
• Evaluating the concept of group learning programs developed by SCACPA • Exploring a train the trainer program developed by SCACPA • Developing hot topic state specific webinars • Monitoring the trend of learning in increments less than 50 minutes • Developing a learning curriculum to assist CPA small firms in training their employees • Exploring a certification program for para-professionals to add value to employees of CPA firms that are not accounting professionals Committee Members: J. Russell Madray, CPA (Chair); Laura E. Amick, CPA; Reva Brennan (Staff Liaison); Neil A. Brown, CPA; Allyson T. DeHart, CPA; Jay J. Jacobs, CPA; Lesley H. Kelly, CPA; Rebecca M. Lee, CPA; Sheila S. Morgan, CPA; Kenneth L. Newhouse Jr., CPA; Ethel C. Pettigrew, CPA; Christina L. Rowe, CPA; Keith M. Vincent, CPA
Editorial Board Task Force
The Editorial Board offers guidance and suggestions pertaining to the editorial content and format of the association's publications. Members are encouraged to contribute original content or help secure contributors. Over the last year, the task force has focused on features and content of interest to all members, regardless of area of practice or career stage. Recent issues have included special sections on business & industry, tax, risk and technology. In addition to
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helping identify authors for articles, task force members often contribute original content. Committee members: Charles Alvis, CPA (Chair); Timothy L. Baker, CPA*; John B. Brantley, CPA; Robert C. Charles, CPA*; Amanda S. Colgate, CPA; Lisa S. Cooke, CPA; Margaret L. Lattimore, CPA; Dave Masters, CPA; Erin H. Pate (Staff); Frances J. Pearce, CPA; Derrick B. Stark, CPA*; Maureen A. Taylor (Staff Liaison)* *authored an article for the Q3 2013, Q4 2013, Q1 2014 or Q2 2014 CPA Report.
Legislative, Advocacy and Regulatory Committee The committee is charged with vetting issues and directing activities related to the association’s advocacy work. The committee met four times over the course of the year to deal primarily with three legislative proposals: 1) Tax conformity legislation, which was passed in 2014 at a historically early date – March 4; 2) House bill 3459 which passed June 4 and includes provisions to strengthen the S.C. Board of Accountancy’s ability to regulate the profession; and 3) a new bill yet to be considered that addresses a number of technical corrections to the accountancy practice act. Committee members: Kenneth Todd Dailey, CPA (Chair); John F. Camp, CPA; Stephanie L. Denham, CPA; Nancy W. Drummond, CPA; Harry B. Gregory Sr., CPA; Kathryn G. Heeney, CPA; Samuel H. Howard Jr., CPA; Lori B. Hudson, CPA; James E. Lollis, CPA; J P. (Pat) McDermott, CPA; Kenneth L. Newhouse Jr., CPA; Erin H. Pate (Staff Liaison); Steven
C. Rau, CPA; Charles W. Schulze, CPA; Douglas A. Snyder, CPA; Marshall Stein, CPA; Jason C. Sweatt, CPA; Charles L. Talbert III, CPA; William Ashley Thiem, CPA; Maria E. Walls, CPA; James M. Ward, CPA
Managing Partners Roundtable
Managing partners from larger South Carolina firms gathered in May 2013 for an unprecedented half-day meeting. The purpose of the gathering was to provide an opportunity for a profession update, make connections and share ideas. The meeting, hosted by Elliott Davis in Columbia, included some 20 managing partners. AICPA President and CEO Barry Melancon headlined the list of presenters, which also included Bob Wilson, director of human resources at Elliott Davis, Michael Putich, Managing Partner at Robinson Grant & Co., and Erin Pate SCACPA CEO. Round Table 2013: Bernard N. Ackerman, CPA; Joseph T. Argo, CPA; Robert M. Baldwin, CPA; Kenneth H. Bauknight, CPA; John B. Beauston, CPA; Reva Brennan (Staff Liaison); J. Robert Calliham, CPA; R. Jason Caskey, CPA; Max L. Cummings, CPA; Richard E. Davis, CPA; Theresa Drew, CPA; Edward M. Farmer, CPA; Terry Grayson-Caprio, CPA; William V. Kastler, CPA; A. David Masters, CPA; Donald J. Mobley, CPA; Erin H. Pate (Staff Liaison); Michael R. Putich, CPA; Terry K. Schmoyer, CPA; Gerald D. Skipper, CPA; Daryl W. Taylor, CPA; Margaret G. Young, CPA
Members in Business & Industry Committee
This committee works to enhance the status of CPAs in various industries. They identify the needs of members in industry and recommend educational programs, member benefits and networking opportunities. The group also hosts the annual CPAs in Business & Industry Conference. In 2013-14, the committee added an industry track as part of the CPA Summit in November 2014; held the CPAs in Business & Industry Conference in May 2014; promoted the CGMA seminar held in Greenville to B&I members; and identified programs of interest to the CPE director and encouraged they be marketed as a CFO series. Upcoming activities and events include: • Assisting with planning the industry track at the 2014 CPA Summit • Participating in the CPAMix online community as a resource to members in B&I • Promoting the value of a CPA to corporations • Recruiting new members to SCACPA Recommendations include hosting another CGMA program. Committee Members: Amanda B. Koehler, CPA (Chair); Jason Bassham, CPA; Reva Brennan (Staff Liaison); Robert D. Capell Jr., CPA; Susan J. Cribbs, CPA; Ryan D. Foster, CPA; Tanya G. Greenlee, CPA; Hamilton C. Howard, CPA; Robert A. (Alan) Leichtle II, CPA; Rebecca F. Richardson, CPA; Corey M. Swaim, CPA continued on page 16
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South Carolina CPA Report
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Political Action Committee
The Political Action Committee raises funds and makes contributions to political candidates. In the extended membership cycle, 2013-14, members gave $17,996 through dues renewal check off. In addition, CPA firms are asked to help support SCACPA’s advocacy work by contributing to the CPA PAC. See page 9 for a list of firms that gave a total of $13,500 so far in 2014. The CPA PAC is most active in state election years, therefore, activity kicked into gear late 2013 for the 2014 election year. Since December 2013, $33,500 has been contributed to candidates running for governor, comptroller general and seats in the state House of Representatives. Look for a full CPA PAC report in the November 2014 issue of The CPA Report. Committee members: John F. Camp, CPA; John Bratton Fennell, CPA; Leanne W. Lordo, CPA; Steven M.
Mann, CPA; J. Pat McDermott, CPA; Erin P. Pate (Staff Liaison); Douglas A. Snyder, CPA; Nancy O. Upton, CPA; Victor Carroll Webster, CPA
Tax Committee
The Tax Committee serves as a technical resource for members, legislators, and regulators, and updates the Legislative Tax Guide annually. The group also co-hosts the annual joint meeting with the State Department of Revenue and the Internal Revenue Service and plans the tax track at the CPA Summit. In 2013-14, the committee held the first IRS Tax Symposium live and virtually. The meeting was open to the membership and other tax professionals. The committee also successfully planned the tax track at the CPA Summit and prepared the Legislative Tax Guide. Upcoming activities and events include: • Re-evaluating the committee’s purpose and objectives • Planning the tax track at CPA Summit
• Planning the IRS/DOR Annual Meeting • Exploring volunteer program with VITA as a public relations opportunity • Writing articles for CPA Report • Starting quarterly tax roundtables live and virtually (information, non-CPE) • Develop an online community and resource center to share and acquire knowledge from other members, if not a community then at least a list serve Committee members: Charles M. Ayers, CPA; Reva Brennan (Staff Liaison); William L. Byrd, CPA; Michelle Comeaux, CPA; James M. Cudd, CPA; Kenneth T. Dailey, CPA; Michelle K. Florine, CPA; Charles A. Gatchell, CPA; W. Edward Howard Jr., CPA; Brian L. Johnson, CPA; Harold W. Jones, CPA; Kenneth L. Newhouse Jr., CPA; Sara B. Penn, CPA; Andrew J. Preston, CPA; Jay L. Reitzes, CPA; Caroline D. Strobel, CPA; Nancy R. Waring, CPA; Gayle H. Wenzel, CPA; Maurice A. White, CPA n
Get Involved - Volunteer! Share your skills and enhance your career by getting engaged in a committee.
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Visit us at www.scacpa.org/ getinvolved to learn more.
Benjamin P. Carlton Anthony E. Rebollo Frederick A. Crawford fcrawford@richardsonplowden.com trebollo@richardsonplowden.com bcarlton@richardsonplowden.com 803.253.8687 803.576.3722 803.576.3711
The complexities of mergers, acquisitions, contracts, and tax disputes sometimes require a team approach. We welcome the opportunity to assist you with your clients’ legal needs. www.RichardsonPlowden.com Columbia I Myrtle Beach I Charleston
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South Carolina CPA Report
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Introducing the Next Generation of Leaders
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n May, 18 young CPAs kicked off the association’s CPA Leadership Institute. The institute is the only local program designed for accounting professionals and addresses the critical need to develop leaders for the state and the profession.
The American Institute of CPAs estimates that 75 percent of today’s CPAs – by and large the baby boomers – will be retiring within the next 15 years. And regardless of practice area, strong leaders are vital to the success of any organization. Designed for CPAs 36 years of age or younger, the institute is a six-month intensive training program that incorporates actual case studies of relevance to the accounting profession and combines live classes and webinars. The inaugural class represents the diversity of the profession and the association, in terms of gender and practice area. We applaud the commitment of these young CPAs and are thankful to their employers for supporting this important initiative. n
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2014-15 CPA Leadership Institute Members
Jason L. Ackerman, CPA Bernard N. Ackerman, CPA, PA, Rock Hill Jessica L. Bastedo, CPA WebsterRogers LLP, Florence John (Clint) Bates, CPA Suggs Johnson, LLC, Anderson Margaret A. Bost, CPA Burroughs & Chapin Company, Inc., Myrtle Beach Allison E. Boykin, CPA Intermedical Hospital of South Carolina, Columbia
Jessica T. Glenney, CPA Prym Consumer USA, Spartanburg Thomas Godwin, CPA Dixon Hughes Goodman, LLP, Greenville Patrick T. Hooks, CPA Smith Sapp Bookhout Crumpler & Calliham, PA, Conway J B. (Burt) Huggins, CPA Smith Sapp Bookhout Crumpler & Calliham, PA, Myrtle Beach David E. Knobeloch, CPA Scott & Company, LLC, Greenville
Chris Buckliew, CPA Bauknight Pietras & Stormer, PA, Columbia
Robert (Alan) Leichtle II, CPA CGMA, General Information Services Inc., Chapin
Henry O. (Neal) Crider Jr., CPA McGregor & Company, LLP, Barnwell
Sabrina E. Preston, CPA Dixon Hughes Goodman, LLP, Greenville
Erica A. Dawgert, CPA Fluor Corporation, Greenville
Constance (Marie) Spearman, CPA Bernard N. Ackerman, CPA, PA, Rock Hill
Allyson T. DeHart, CPA The Hobbs Group, PA, Columbia
Alison L. Swaggard, CPA WebsterRogers, LLP, Sumter
South Carolina CPA Report
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We Are Moving!
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n September the S.C. Association of CPAs will be moving about two miles down the road to Cayce. And while we may be physically moving staff offices and the learning center, our mission and vision have not changed. We remain committed to helping you grow professionally and believe our new headquarters will enhance our ability to do just that. We know that you may have questions about the move so we have compiled a list of the most frequently asked questions. Why is the association moving? SCACPA built its current office building in 1987. It has served the association well for many years; however, the area in which the building sits has continued to decline. It is in an industrial area with increasing foot traffic. The board wants the association to be in a place that carries the respectable, professional aura of the CPA and believes a more modern facility is needed. What is the new address? The new address is Brookland Place, 1300 12th Street, Suite D, Cayce, S.C. 29033. Is the new office easily accessible for members? Yes, the new location is just over three miles to I-77 and just two miles to I-26. The building is also three miles from the State Capitol Complex. What does the move mean for members who attend CPE and/or on-site meetings? The office space was designed with your needs in mind and members will enjoy a more intimate and high-tech
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classroom as well as community space where you can have lunch and network with peers. We realize that business doesn’t stop when you are away from the office so there is also a dedicated space to check emails or return phone calls during breaks. Will the move impact CPE offerings? The classroom space is conducive to traditional lecture format as well as a more interactive group setting. Because CPAs are getting more of their required CPE online, SCACPA has invested in webcast technology. Soon many more live classes will be streamed online and real-time for more convenient and last-minute access. What are the plans for the current building? The building is currently for sale. If you know of a business that may be interested, please contact our realtor, Bill Sargent at 803-254-2300. n
For a sneak peek of the new space visit www.scacpa.org/move CLICK
South Carolina CPA Report
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INTERNATIONAL TAX PRACTICE:
Opportunities and Risks by Frances J. Pearce, CPA SCACPA member since 1988
Question: What Do the Following Have In Common?
ENGLAND An English family selling their Kiawah Island vacation home
SWITERLAND A Swiss manufacturer building a plant near Greenville
GERMANY A German corporate executive living temporarily in Greer
FRANCE A French couple retiring to Myrtle Beach
COSTA RICA & PANAMA A Charleston-based business expanding operations to Costa Rica and Panama
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TAIWAN An American engineer working in Taiwan for a multinational corporation
SOUTH AFRICA A Columbia resident inheriting an investment portfolio from a distant relative in South Africa
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Answer: All need the services of a team of professionals knowledgeable in the area of international tax and compliance.
S
CACPA Past Chair Eddie Brown, partner in SwaimBrown, P.A. in Spartanburg, notes that “along the I-85 corridor there’s a lot of international investment.” According to the Harvard Business Review, the Greenville metropolitan area has more international investment per capita than anywhere else in the United States. Understanding international taxation, and consulting with specialists when appropriate, can result in a tremendous tax savings for the client. Current hot topics in international taxation include transfer pricing and the Financial Crimes Enforcement Network Form 114 Report of Foreign Bank and Financial Accounts (FBAR). In addition to these issues, practitioners need to be aware of and consider the effects of entity structure choices, foreign currency translations, VAT imposed by other countries, foreign tax credit availability, withholding requirements for foreign partners, deadline differences, cultural differences, and Bureau of Economic Analysis (BEA) surveys of foreign direct investment in the U.S. David Jones, partner at GreerWalker says “International [tax] reporting is difficult. It’s easy to miss something.” Taxpayers, in trouble because they did not understand their reporting obligations, seek assistance from his firm, sometimes through an attorney in order to extend attorney-client privilege. Most of the international tax clients served by Charlotte-based
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GreerWalker, LLP are businesses that need assistance with issues such as transfer pricing, entity structuring, BEA filings, and the individual foreign executives of these businesses. Recently as a result of more stringent FBAR reporting requirements, the firm is taking on more individual clients who need assistance in reporting foreign accounts and income correctly. In early June, the U.S. Treasury Department announced that more than 77,000 foreign financial institutions have agreed to share information with the IRS beginning in March 2015. This is the result of Foreign Account Tax Compliance Act (FATCA), which the U.S. Treasury Department summarizes as follows: FATCA was enacted in 2010 by Congress to target non-compliance by U.S. taxpayers using foreign accounts. FATCA requires foreign financial institutions to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. This increased information sharing may be expected to expose intentionally concealed foreign financial accounts and assets, as well as those overlooked by clients with complicated investment situations. Jones notes that it is especially important to ask clients who have moved to the United States from overseas, either foreign nationals or U.S. citizens, if they have retirement funds or life insurance policies
“In early June, the U.S. Treasury Department announced that more than 77,000 foreign financial institutions have agreed to share information with the IRS beginning in March 2015.” overseas. In addition, when a U.S. citizen marries a foreign national, it may be reasonable to assume the spouse may have funds in a foreign financial institution. It is also equally important to ask these questions to clients who do not have obvious international connections. The new IRS Form 8938 Statement of Specified Foreign Financial Assets does not replace the filing requirements of Form 114 Report of Foreign Bank and Financial Accounts. Form 8938 and FBAR have, for example, different reporting requirements and different filing deadlines. On its website, the Internal Revenue Service provides a table that compares the differences between these forms. They also provide other educational resources related to FBAR filing requirements: a PDF, FBAR Reference Guide; a webinar, Reporting Foreign Financial Accounts on the FBAR; and a video, When and How to Report Foreign Financial Accounts. continued on page 22
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“Owens notes that even corporations that maintain internal tax departments often outsource some or all of their international compliance.” PricewaterhouseCoopers (PwC) and other Big Four firms offer extensive services in the area of international taxation. Billy Owens, a Clemson graduate, is PwC’s U.S. Deputy Tax Leader. He previously served as the Global Managing Partner of PwC's International Assignment Services practice. Among other services, PwC’s global network assists clients with international structuring related to acquisitions and divestitures, outbound and inbound ex-pat issues, and transfer pricing. Owens expects the demand for transfer pricing services to increase as governments around the globe increase their scrutiny of tax returns and other financial reports. Owens notes that even corporations that maintain internal tax departments often outsource some or all of their international compliance.
Companies with ex-pat employees rely on subject matter experts in the area of compensation planning. For example, consultants may be called in to help determine whether earnings that were deemed deferred compensation in one country are actually subject to taxation in another. They may also provide assistance on tax equalization calculations, which are used by companies that seek to neutralize the financial impact of international assignments for outbound employees. PwC also helps its clients remain upto-date on changes in international reporting requirements. Owens predicts that information reporting will become more onerous in the future. He says systems currently in place might not be sufficient to provide the information about international investment and other matters required by the U.S. and foreign governments. When it comes to business structure, Brown points out that the best entity form can be different when one, or more, of the investors is foreign. For example, an S Corporation
LEARNING OPPORTUNITIES
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Brown believes opportunities to provide international taxation services in South Carolina will continue to grow. He says, “A CPA would be foolish to ignore this area [of practice].” His advice to practitioners is to ask clients the right questions and build a network of professionals with substantial international tax experience to call on for further guidance. l
Frances J. Pearce, CPA, most recently served as an accountant with Dixon Hughes Goodman, LLP in Charleston. She currently serves as a member of SCACPA’s Editorial Board Task Force and previously served on the CPE Committee and the Members in Business and Industry Committee.
WWW.SCACPA.ORG/REGISTER
Sept. 24: Taxation of U.S. Individuals Working and Living Overseas (LIVO) (WEB1054) Credits*: 2.00 TX Member Price: $79
Nov. 12: Doing Business in Canada?A Practical Approach (CTAX) (WEB1151) Credits*: 2.00 TX Member Price: $79
Nov. 10: Tax Issues Impacting U.S. Businesses Hiring Workers and Independent Contractors Who Work Overseas (BUHI) (WEB1147) Credits*: 2.00 TX Member Price: $79
Nov. 18: U.S. Taxation of Resident and Non-resident Aliens (ATAX) (WEB1161) Credits*: 2.00 TX Member Price: $79
South Carolina CPA Report
election (Form 2553 Election by a Small Business Corporation) is not available for small businesses with nonresident alien shareholders. While an LLC does allow foreign members, additional reporting and withholding requirements must be met. It is also important for U.S. persons investing outside the United States to determine the best form of business in the country in which they are investing.
Dec. 17: IFRS and Taxes - What You Need to Know (IFRT) (WEB1207) Credits*: 1.00 AC / 1.00 TX Member Price: $79
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Member Profile
International Tax a Natural Fit for this Bulgarian Native Stani Fowler, CPA Manager, Dixon Hughes Goodman LLP, Charleston SCACPA member since 2005 Tell us a little about yourself, how you became involved in international tax and what brought you to the United States? I am from Bulgaria where the education system is based on a narrow concentration in your chosen area of studies. For example, I attended a mathematics high school, where I took three to four math classes every day for five years. I was interested in furthering my education in the United States because of the option for liberal arts studies. I got the opportunity to do so when I was awarded a full scholarship to Columbia College.
of my interest and specialization in international tax.
As a business major there, I was able to study communications, international business, world literature, etc. for a more rounded experience. My math background steered me to exploring accounting as the language of business. I was interested in tax as it is a material aspect of the financial performance of a business. Through an internship at the South Carolina Department of Revenue, I was quickly exposed to the challenges and opportunities for taxpayers in navigating the tax environment. Being an international student, I also had to learn about the specific tax issues that affected me personally. This was the natural start
What are some of the more challenging situations you've dealt with in this area? The enormous complexity and compliance burden of the U.S. tax system is especially challenging when it comes to cross-border activity and that often leads to unintentional and unexpected results for taxpayers. Sometimes issues are uncovered after years have passed and remedial action is necessary. That can be a submission under the IRS Offshore Voluntary Disclosure Program for delinquent foreign asset reporting, which is still a costly penalty structure even for non-willful failures to report. Or, it may be an
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What are the current hot topics you've identified in the area of international taxation? Hot topics include reporting of foreign assets of U.S. taxpayers under the Foreign Account Tax Compliance Act (FATCA), which also expanded the withholding and reporting obligations for U.S. source payments and is currently in a transitional compliance period. This has resulted in renewed attention to the traditional Chapter 3 withholding and compliance requirements as well.
“The enormous complexity and compliance burden of the U.S. tax system is especially challenging when it comes to cross-border activity...� inordinately burdensome calculation of overall foreign loss carryforward for purposes of determining foreign tax credit limitations where the prior year analysis has not been done and necessary information may not have been captured. What specialized training and research resources would you recommend for someone who would like to practice in the area of international taxation? Aside from cultivating knowledge by proactively keeping abreast of new developments by way of reading technical publications, subscription databases (such as BNA International and CCH), commercially published materials, and attending specialized international tax CPE, I have most benefitted from mentoring relationships with other specialists in practice. At Dixon Hughes Goodman, I have had an opportunity to work continued on page 31
South Carolina CPA Report
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LOCAL CPA STRIVES TO FULFILL
Godfather of Soul’s Legacy
by Maureen A. Taylor Director of Marketing & Member Services
W
hile he may not have had his picture on the cover of the Rolling Stone, Columbia CPA Russell Bauknight has been quoted in the magazine.
“Whether a CPA firm or any other business you have to make sure you have the right people in place to take that business to its full potential.”
Bauknight is not your typical CPA. His days include approving requests for usage of James Browns’ music and conversing with entertainment mogul Peter Afterman. And, at any given moment, he could rush out the door to participate in a drug raid. For 13 years, Bauknight has served as a volunteer with the Lexington County Sheriff’s Department Special Weapons and Tactics Team (SWAT) Team.
Today, he serves as trustee of approximately 65 trusts with a value approaching $200 million.
Bauknight, a founding shareholder of Bauknight Pietras & Stormer, is the court appointed fiduciary to the James Brown Estate and Trust. He has over 30 years of experience in public accounting including as a senior tax manager with Ernst & Young. Bauknight has also helped some of the state’s wealthiest individuals with tax and estate planning and worked with two of the state’s largest charitable trusts.
In 2009, Bauknight was appointed as fiduciary to Brown’s estate. He was the sixth person put in charge of the estate and by the time Bauknight took over the estate had $12,000 in the bank and taxes and insurance due on the house. According to Bauknight, Brown’s debts coupled with the lawsuits filed after his death in 2006, prevented the estate from doing what the Godfather of Soul had envisioned – funding scholarships for needy children. In the five years he has served as fiduciary, Bauknight has not received a dime for his services even though the estate now has $2 million in the bank. “It’s really a matter of me being comfortable with the financial situation of the estate trust. While there is a lot of
money set aside, a great deal of that needs to stay set aside because the ultimate beneficiary is children getting scholarships. I want to be ready to pay scholarships even before we get fully paid,” he explained. Bauknight admits that when he was first appointed to serve as fiduciary he was not much of a music fan. In fact, he didn’t own an album or a CD. He quickly realized he needed help with the clearance requests for Brown’s music. After interviewing 30 individuals and companies he hired Afterman. The Grammy winner also manages music for Mick Jagger and Keith Richards. “I had to hire someone with no money to pay them. Peter and I worked out a deal and it took 14 months for him to receive his first pay check. Peter’s initial contract was for two years. We are now in our third, two-year contract,” Bauknight explained.
“... at any given moment, he could rush out the door to participate in a drug raid. For 13 years, Bauknight has served as a volunteer with the Lexington County Sheriff’s Department Special Weapons and Tactics Team (SWAT) Team. 24
South Carolina CPA Report
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One of the first issues the two men addressed was use of unauthorized samples of Brown’s music. Bauknight has taken the same approach as the Elvis Presley estate, attacking every single unauthorized use. “It’s my job to protect this asset. You may spend $1,000 to stop a $100 use but you gain a reputation of being no nonsense and that helps rein in the problem,” he said. “Over the years unauthorized uses have slowed down.” Now, anytime Brown’s music is heard Bauknight has approved it including the use of “Get Up Offa That Thing” in Volkswagen’s 2012 Super Bowl spot, “It’s a Man’s World” in the Chanel perfume ad and Jay Z and Kanye West’s use of “Gotta Have It” on their “Watch the Throne” album. Europe and the Far East have also proven to be big markets for Brown’s music as has South America where it can be heard in Nescafe commercials. After bringing Afterman on, Bauknight was also able to settle some litigation and find creative ways to generate immediate cash without borrowing. The result, he was able to pay off a $14 million bond seven years early. He also paid off Brown’s funeral bill, attorney’s fees and made repairs to the home. Managing the estate is just like running a business, according to Bauknight. Whether a CPA firm or any other business you have to make sure you have the right people in place to take that business to its full potential. “Where my predecessors were trying to do all this themselves, I brought a team together and built great relationships with the people at Universal Music and others,” he said.
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And his CPA background has served the estate well. “In the music business you audit the copyright administrator’s allocation of funds. I share the revenue for the use of masters with Universal Music. Universal controls the cash so I have to audit what they say happened with the cash,” he explained. “I analyzed the reports and found that our administrator of copyright was charging us as much as 50 percent in fees for everything happening in Europe. And when money was sent from the European affiliate to the United States they were charging us another 15 percent fee. Our contract limits the fee for European uses and revenues to 9 percent. We were able to recover 2.5 million that would not have been discovered by someone without some accounting background. That money helped pay off the bond,” he added. Bauknight licensed 25 songs for the movie “Get On Up” and is hopeful the Aug. 1 release will be well received. He is already seeing an increase in the requests for use of Brown’s music due to publicity surrounding the movie and is able to negotiate higher fees. The estate also receives money from the trailers and Bauknight is optimistic the movie will result in increased music sales. Bauknight said Afterman was instrumental in bringing Mick Jagger to the table for the movie deal. Jagger teamed up with Imagine Entertainment, Ron Howard’s production company, and they brought in Universal Pictures. The movie stars Chadwick Boseman (Jackie Robinson in “42”), Viola Davis and Octavia Spencer and is directed by Tate Taylor (“The Help”).
Bauknight with Mick Jagger at the red ca rpet movie premier of “Get On Up” in New York. Bauknight had an opportunity to meet the actors at Brown’s estate when he introduced them to David Washington, Brown’s personal valet, groundskeeper and friend. He also attended a private screening of the movie at the Apollo Theater in New York in July. Future plans include taking the story to Broadway and a documentary funded by Jagger. And while the release of the movie is a definite highlight of his time as fiduciary, what Bauknight looks forward to the most is writing that first scholarship check. “Whenever that day comes, it will be far too late. These assets were set aside to benefit needy children. I think about the seven years since he died and the millions of dollars that have been spent on litigation and what that money could have done in terms of scholarships,” he said. Bauknight said once the creditors are paid off, the litigation settled and the charitable trust fully funded, he will be able to walk away comfortable that the estate is in good hands. “One of the best feelings was the day the courts asked me to do this job,” he said. “Hopefully, the second best will be when the courts accept my closing files and say job well done.” n
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A fast-paced look at the profession of tomorrow
Accelerate Your Knowledge at the 2014 Professional Issues Update 9 Locations | 4 Hours Complimentary CPE | SCACPA Member Exclusive Make sure you are part of the starting lineup when the 2014 Professional Issues Update (PIU) series gets underway. Offered in nine cities around the state, the PIUs will help you build momentum and stay the course as you navigate the latest issues and trends affecting the CPA profession and businesses of every size. Join SCACPA Chair Bratton Fennell, CEO Erin Pate and others for a fast-paced look at the profession of tomorrow including: the future of continuing professional education, legislative and regulatory updates, the future of audit and practice monitoring, tax and economic updates and more!
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South Carolina
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CPA
Co-Hosted by
South Carolina CPA Report
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Two CPAs Vying for Comptroller General
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n November, voters will take to the polls to elect the state’s top accountant and chief fiscal watchdog, the comptroller general. This year two CPAs, both SCACPA members, are vying for the position, Republican incumbent Richard Eckstrom and Democratic challenger Kyle Herbert.
Eckstrom has served as comptroller general since 2002. Previously, he served as state treasurer from 1994-1998 and state delegate to the Republican National Convention in 1996 and 2000. He earned his undergraduate degree, MBA and masters of accountancy from the University of South Carolina. While a graduate student, Eckstrom joined the Navy Reserve and retired as a captain in 1995. He currently serves as a brigadier general in the S.C. State Guard. Eckstrom worked as a CPA for Peat Marwick Mitchell, which later merged with KPMG, and served on the adjunct faculty in finance for Queens College in Charlotte.
Herbert is employed by Palmetto Health in Columbia and received his undergraduate degree from the University of Richmond and an MBA from The Citadel. He is licensed as both a CPA and CMA and has attained fellowship status with the Healthcare Financial Management Association and the American College of Healthcare Executives. Herbert is also an adjunct professor of accounting within the Arnold School of Public Health at the University of South Carolina. He is the author of the accounting textbook, “Hospital Reimbursement: Concepts and Principles” and is a Fulbright Scholar who was a visiting professor at Chulalongkorn University in Bangkok, Thailand.
We encourage you to learn more about both candidates and make your voice heard by voting on Nov. 4! Visit www.richard-eckstrom.com or www.kyleherbert.com. The information contained in this article is meant for informational purposes only. Any information contained therein should not be consider an official endorsement.
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South Carolina CPA Report
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Board of Accountancy
South Carolina Board of Accountancy Update
by Donny Burkett, CPA SCACPA member since 1976
T
he South Carolina Board of Accountancy is a body responsible for the administration of the South Carolina Accountancy Practice Act. As a board member for many years, it is my opinion that the board needs to be proactive and not just reactive. On June 9, Gov. Nikki Haley signed H.3459 into law, and the new law will help the board be proactive in its protection of the citizens of South Carolina. One of the important changes in the statute is that the board’s administrator must be a Certified Public Accountant (CPA) licensed in this state, and his/her primary responsibility must be to administer the Board of Accountancy. However, the agency director may assign additional duties as long as those duties do not unreasonably occupy the administrator’s time so that he/she does not fulfill his/her duties and responsibilities to the board. A CPA is a must in this role due to the complex rules, regulations, and ethical standard issues that face our board and profession. Another reason that it is important to have a CPA in the role of board administrator is because we need someone who understands and can make recommendations to the board on various changes in our profession and our regulations. For example the changes in compilation standards, proposed SSARS preparation of financial statements, compilation engagements, and association with financial statements.
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South Carolina CPA Report
“A second important change in the statute is that the board must now have an inspectorinvestigator who is, and has been, a licensed CPA in this state for at least five years.” In regards to CPE standards, we need an administrator who can help the board research new learning methods, proposed standards changes, and help the board determine how and if we can accept some of the new methods of learning, like the nano-learning, which is a 10 minute learning session. A second important change in the statute is that the board must now have an inspector-investigator who is, and has been, a licensed CPA in this state for at least five years. Not only will this allow the board to conduct periodic inspections of licensees, including both individuals and firms, but it also provides for a person who can work investigative cases from beginning to end because he/ she knows how to review accounting documents, knows the standards and can speak the CPAs’ language. I would like to thank SCACPA CEO Erin Pate, SCACPA’s staff and members of the SCACPA Board for all of their help with this bill as well as the lobbying team, Copper Dome Strategies. I am grateful to work in a state where the Board of Accountancy and state society can effectively work together instead of only identifying barriers. Other issues the Board of Accountancy will face in the future include peer review and changes in the Uniform Accountancy Act.
In peer review news, the United States Department of Labor released Employee Retirement Income Security Act (ERISA) audits to the National Association of State Boards of Accountancy (NASBA). There are approximately 4,900 firms included in these audits, and NASBA is in the process of determining how many of the firms did not include the ERISA audits in their peer reviews, which is a “must select” for peer review. The AICPA is taking the matter seriously and has entered into a collaborative effort with state society peer review administrations to investigate this matter. Under the Uniform Accountancy Act, there is a new proposed definition of attest and firm mobility continues to be an issue. How do we balance state’s rights with the uniformity among states? These are issues that require a CPA’s knowledge of the profession. Our board looks forward to working with SCACPA and the CPAs in our state on these and other issues. n
Donald H. Burkett, CPA, serves as executive vice president of Burkett Burkett Burkett CPAs, P.A. in West Columbia. He is chair of the S.C. Board of Accountancy, having served on the board since 2003. He is a past president of SCACPA.
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New Competency Framework Strengthens CGMA Value The following article was provided by AICPA
A
s the accounting profession evolves, so does the set of skills required of individuals and their teams. Over the past two years, the AICPA has joined CIMA (Chartered Institute of Management Accountants) in reaching out to companies around the globe. We heard that executives are looking for finance professionals with strong technical and people skills, an understanding of the business, and the potential to be leaders within the organization. The new CGMA Competency Framework helps management accountants and their employers identify the competencies needed to adapt to these shifting business demands.
The Research The AICPA and CIMA conducted extensive global research with employers, identifying the competencies organizations require to drive better business. The research, which was used to develop the competency framework, was conducted in three phases: • Face-to-face interviews performed with 67 organizations from the United States, Malaysia, South Africa and the United Kingdom • Roundtable discussions held in 13 countries in the Americas, Asia, Europe and Africa • Online survey taken by nearly 3,400 CIMA members, students, academics and tuition providers Research participants included both finance and non-finance staff in mid- to senior-level positions from a wide range of industries in both the private and public sectors.
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Knowledge and Skills Define Designation Standard The new employer-driven framework is designed around four knowledge areas that have a series of relevant integrated competencies, or functions. Each competency prescribes a series of skills that assist in the CGMA’s professional development and can be performed at, and measured by, four proficiency levels. Knowledge areas within the framework include: • Technical skills that enable finance professionals to collect, store, process and analyze information to be shared with stakeholders • Business skills that allow finance professionals to use their knowledge of the business and its environment to transform data into strategic insights • People skills that influence the decisions, actions and behaviors of decision makers, others throughout the organization and stakeholders • Leadership skills that span peer, functional and strategic levels The proficiency levels for each competency skill are Foundational (staff/entry level), Intermediate (supervisor/manager), Advanced (senior manager) and Expert (executive/C-suite). The importance of each skill varies by proficiency level, and the more important the skill is at a specific level, the higher it will be weighted on a 100-point scale. As a result, as individuals advance in their proficiency, and career, the weighting of individual skills will change accordingly.
“The AICPA and CIMA conducted extensive global research with employers, identifying the competencies organizations require to drive better business.” For example, finance professionals at the Foundational level will receive the highest weighting for Technical skills. Yet, as they progress along proficiency levels the weighting for Technical skills will decrease while weighting for Business, People and Leadership skills will increase consistently with their career progress. At the Advanced level, the importance of Business skills and People skills level off and the importance of Leadership skills increases.
Framework Drives Qualification Syllabus and Assessment Exam The framework is the foundation that will demonstrate the relevance and capabilities of a CGMA as a trusted finance and business strategist because it’s the underpinning of the CIMA syllabus, which will be covered in the mandatory CGMA strategic case study exam next year. n
To learn more about the framework, please contact Nancy Marc-Thrasybule, technical manager, AICPA Management Accounting Team, nmarcthrasybule@aicpa.org.
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South Carolina
CPA2014-2015 Chapter Events Please check your chapter’s web page regularly for updated information on upcoming CPE and events.
CATAWBA
COASTAL
GRAND STRAND
PIEDMONT
2014-2015 Dues: $60 (July 1, 2014 - June 30, 2015)
2014-2015 Dues: $130 (July 1, 2014 - June 30, 2015)
2014-2015 Dues: $125 (July 1, 2014 - June 30, 2015)
2014-2015 Dues: $50 (July 1, 2014 - June 30, 2015)
Sept. 23 (AM): How to Build a CPA Practice with Mark Hobbs, Baxter Hood Center, Rock Hill Sept. 23 (PM): Professional Issues Update with Erin Pate, Baxter Hood Center, Rock Hill Oct. 30 – 31: Federal Income Tax Update with Art Werner, Baxter Hood Center, Rock Hill
Sept 24: Technology Update & Ethics and Professional Conduct with Randy Johnston, Embassy Suites, North Charleston Oct 2 (AM): Professional Issues Update with Erin Pate, Embassy Suites, North Charleston Oct 2 (PM): Quality Assurance & Ethical Behavior with Frederick Crawford, Embassy Suites, North Charleston Nov 4: The Best Federal Tax Update with John Surgent, Embassy Suites, North Charleston
Aug 26 (AM): Professional Issues Update with Erin Pate, Ocean Creek Resort, Myrtle Beach Aug 26 (PM): Capitalized Costs and Depreciation: Key Issues and Answers with Patrick Kelley, Ocean Creek Resort, Myrtle Beach Nov 18: Annual Update for Accountants & Auditors with Bruce Shepard, Ocean Creek Resort, Myrtle Beach
Oct 27: Professional Issues Update with Erin Pate, Hilton Greenville Oct 28: Professional Issues Update with Erin Pate, Anderson University College of Business, Anderson
Visit www.SCACPA.org/ Coastal for up to date information.
2014-2015 Dues: $50 (July 1, 2014 - June 30, 2015)
Visit www.SCACPA.org/ Catawba for up to date information.
CENTRAL 2014-2015 Dues: $50 (July 1, 2014 - June 30, 2015) Aug 23: Governmental Accounting & Auditing Update with Jeffrey Lieman, SC Bar Conference Center, Columbia Sept 19: How to Build a CPA Practice with Mark Hobbs, Double Tree by Hilton, Columbia Oct 7: Professional Issues Update with Erin Pate, Embassy Suites Columbia, Columbia Nov 20: Income Tax Update with William Grooms, Double Tree by Hilton, Columbia Visit www.SCACPA.org/ Central for up to date information.
FOOTHILLS 2014-2015 Dues: $40 (July 1, 2014 - June 30, 2015) Aug 22 (AM): Professional Issues Update with Erin Pate, Marriott Spartanburg Aug 22 (PM): Ethics and Professional Conduct with Thomas Pietras, Marriott Spartanburg Oct 24: Federal Income Tax Update with Art Werner, Converse College, Spartanburg Visit www.SCACPA.org/ Foothills for up to date information.
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Visit www.SCACPA.org/ GrandStrand for up to date information.
PEE DEE
Aug 25: Professional Issues Update with Erin Pate, Southeastern Inst. of Manufacturing and Technology, Florence Oct 29: Federal Income Tax Update with Art Werner, Southeastern Inst. of Manufacturing and Technology Florence
Visit www.SCACPA.org/ Piedmont for up to date information.
SEA ISLAND 2014-2015 Dues: $135 (July 1, 2014 - June 30, 2015) Oct 3 (AM): Professional Issues Update with Erin Pate, Hilton Head Island Beach & Tennis Resort Oct 3 (PM): CIRA Update with Cecil Patterson, Hilton Head Island Beach & Tennis Resort Oct 27: Federal Income Tax Update with Art Werner, Hilton Head Island Beach & Tennis Resort Visit www.SCACPA.org/ SeaIsland for up to date information. n
Visit www.SCACPA.org/ PeeDee for up to date information.
CLICK
For more information on SCACPAs Professional Issues Update see page 26 or visit www.scacpa.org/piu
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Focus on Membership
Member News
Patrice L. Sebastian, CPA, of WebsterRogers, LLP recently earned the Certified Exit Planning Advisor (CEPA) designation through the Exit Planning Institute (EPI). Sebastian is the first professional in South Carolina to earn this designation. Pat Odom has been promoted to senior accountant at Jarrard, Nowell & Russell, LLC
Terry D. Knause, CPA, has joined Scott and Company LLC as partner on the firm’s assurance & advisory services team.
Firm News
A.T. LOCKE, Scott and Company LLC, Dixon Hughes Goodman LLP, and Elliott Davis are ranked in the top 50 of the Best Places to Work in South Carolina. This year's winners will be recognized and the rankings will be announced during an awards dinner on Aug. 7, presented by Colonial Life, at the Doubletree by Hilton in Columbia. WebsterRogers, LLP was recently honored with the Excellence in Customer Service Award presented by the Georgetown County Chamber of Commerce at their annual awards banquet sponsored by TD Bank.
J. Russell Madray, CPA, was voted as this year’s Alumni Master Teacher by students at Clemson University. The annual award is presented to a faculty member nominated by the student body and selected by the Student Alumni Council.
Member Profile, con’t from page 23 with and learn from firm-wide international tax team members. Our deep bench of supporting resources is available to us on an international scale through our Praxity professional network as well. We even have a secondment program where staff can work in another country and get firsthand knowledge and experience with the business climate and that country’s tax system. What is the most rewarding aspect of working in international taxation? I have a passion about international taxation as it is a highly complex technical area and I appreciate the challenge. It requires diligent research and careful consideration of multiple jurisdictions’ sometimes vastly different tax systems. It entails working with diverse clients and tax professionals from all over the world and recognizing the differences in business culture, decision making processes, and communication styles. The challenges are certainly there but it also provides an opportunity to serve as a trusted advisor in a broader way, particularly as I can relate my personal experiences of learning about American culture, business environment and tax issues. n (888) 557-4814 | www.scacpa.org
Condolences
Rebecca L. “Becky” Coggins, 62, died May 16, 2014. Coggins was a Greenville, S.C. native and received her bachelor’s degree in economics and business administration and a master’s degree in business administration from Furman University. A SCACPA member since 1992, she worked for Bradshaw, Gordan, and Clinkscales, LLC and Elliott Davis, LLC before opening her own accounting practice in 2001. William D. Trask, 62, died Feb. 25, 2014. Born in Charleston, S.C., he was a graduate of the University of South Carolina and the University of North Carolina at Wilmington. A SCACPA member since 1988, he served his local community as chairman of the United Way, president of the Sea Island Rotary and a member of the Beaufort Academy Board of Directors.
Share Your News
Send member news announcements to Maureen Taylor at mtaylor@ scacpa.org. Deadline for the Fourth Edition issue is Sept. 24.
Don’t Let Your SCACPA Member Benefits Expire! Renew your membership online today at www.scacpa.org/ManageMyMembership or call 888-557-4814 or 803-791-4181. Renewals received after July 31 will incur a $10 late fee. All renewals must be received no later than Aug. 30, 2014.
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Focus on Membership
WELCOME NEW MEMBERS (through 6/30/14)
*100 percent member firm
AFFILIATE
Roxanne P. Martin West Columbia, SC Lura K. Niebauer Bradshaw Gordon & Clinkscales, LLC* Greenville, SC Brendan M. Ryan Columbia, SC George R. Wise Jr. Columbia, SC
ASSOCIATE
Alexander S. Anthony, CPA Elliott Davis, LLC* Greenville, SC Marilyn V. Bertelsen, CPA Rock Hill, SC Anthony J. Duesler, CPA Derrick Stubbs and Stith, LLP* Columbia, SC Lauren L. Kendrick, CPA North Charleston, SC Susan B. Shurden, CPA Newberry, SC Brian P. Tonner, CPA Elliott Davis, LLC* Greenville, SC
CPA CANDIDATE
Steven B. Alexander Elliott Davis, LLC* Greenwood, SC Hannah R. Allison Greenville, SC Stephen T. Amerson West Columbia, SC Joseph P. Anderson III Elliott Davis, LLC* Greenville, SC
Brett S. Barton, CPA Elliott Davis, LLC* Greenville, SC
Margaret E. Hodge, CPA WebsterRogers LLP* Charleston, SC
Brandon J. Hansen Elliott Davis, LLC* Greenville, SC
John C. Bates, CPA Anderson, SC
Melissa J. Johnson, CPA, CVA, MAFF James C. Simmons, CPA Elliott Davis, LLC* Elliott Davis, LLC* Charleston, SC Charleston, SC Amanda D. Kirkpatrick, CPA Mallory S. Sinclair, CPA Spartanburg, SC Elliott Davis, LLC* Greenville, SC Thomas J. Korzik, CPA Hilton Head Island, SC Aaron K. Smith, CPA Greenville, SC Lindsay R. Lesesne
Marcus L. Hunter West Columbia, SC
Greenville, SC
Bauknight Pietras & Stormer, PA* Albert R. Smith, CPA Columbia, SC Charlotte, NC
Taylor R. Illsley Greenville, SC
Khristopher B. Conner, CPA Elliott Davis, LLC* Charleston, SC
Allison C. Ludwig, CPA Bernard N. Ackerman, CPA, PA* Rock Hill, SC
Brian J. McComas West Columbia, SC
Jessica D. Cutler, CPA Spartanburg, SC
Allison A. McGillick Elliott Davis, LLC* Greenville, SC
E. Patrick Cutler Jr, CPA Spartanburg, SC
Edwin D. MacEwan, CPA, MST Elliott Davis, LLC* Columbia, SC
James T. Boylan, CPA Taylors, SC Christopher H. Harrell Sheheen Hancock & Godwin, LLP* Amy G. Buckner Camden, SC Elliott Davis, LLC* Charleston, SC Mistie D. Hart Elliott Davis, LLC* Xuan Cao, CPA Greenwood, SC Elliott Davis, LLC*
Matthew P. Mercurio Fort Mill, SC Harry W. Miley Elliott Davis, LLC* Greenville, SC Steven R. Nash Elliott Davis, LLC* Greenville, SC Brian A. Shuler McGregor & Company, LLP* Orangeburg, SC Thomas N. Simmons Elliott Davis, LLC* Greenville, SC Andre D. Talley Moore Beauston & Woodham, LLP, CPAs & Consultants* West Columbia, SC
Benjamin K. Farthing, CPA Greenville, SC Emmett Ferri, CPA Spartanburg, SC Kyle M. Fischer, CPA Elliott Davis, LLC* Greenville, SC
Shannon L. Maynard, CPA WebsterRogers LLP* Charleston, SC
David E. Wilson, CPA Buffalo, SC Karin L. Young, CPA Spartanburg, SC
Silvia H. McKenna, CPA Spartanburg, SC
Jessica T. Glenney, CPA Spartanburg, SC
Charles W. Myers, CPA Rock Hill, SC
David R. Goodall, CPA Surfside Beach, SC
Neely F. Myers, CPA Greenville, SC
James D. Guffey, CPA Florence, SC
Amanda O. Odom, CPA Spartanburg, SC Kevin R. Patterson, CPA Dixon Hughes Goodman, LLP* Greenville, SC
FELLOW
Paul W. Harms, CPA Bluffton, SC
Jason L. Ackerman, CPA Bernard N. Ackerman, CPA, PA* Rock Hill, SC
Trent H. Hawk, CPA Elliott Davis, LLC* Greenville, SC
Angela B. Anderson, CPA Spartanburg, SC
Shawn T. Henderson, CPA Simpsonville, SC
Allison Baker, CPA Spartanburg, SC
Dan B. Herrinton, CPA Myrtle Beach, SC
Mandi J. Persohn, CPA Charlotte, NC Julia L. Ramcke, CPA Elliott Davis, LLC* Charleston, SC
John A. Taylor, CPA Spartanburg, SC
Daniel P. Wheeler, CPA Duncan, SC
Jennifer Meyer, CPA Lexington, SC
Andrea L. Berry Elliott Davis, LLC* Greenville, SC
South Carolina CPA Report
Charlotte E. Manson, CPA Elliott Davis, LLC* Greenville, SC
Gregory L. German, CPA Greenville, SC
Graham A. Vernon Elliott Davis, LLC* Greenville, SC
Kendell C. Stange, CPA Charleston, SC
Dean E. Tretinik, CPA Elliott Davis, LLC* Greenville, SC
Paul Medlin, CPA Columbia, SC
LaTisha A. Ashley Rock Hill, SC
Megan C. DeMoss McAbee, Schwartz, Halliday & Company* Spartanburg, SC
Lee A. Sellinger, CPA WebsterRogers, LLP* Bluffton, SC
Frances M. Fox, CPA Mount Pleasant, SC
Quincy Halliday IV, CPA McAbee, Schwartz, Halliday & Company* Spartanburg, SC
Randall M. Cooper West Columbia, SC
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Brittany W. Hannon Elliott Davis, LLC* Greenville, SC
FELLOW-OTHER Ashley M. Brindle, CPA Columbia, SC Belinda S. Harper, CPA Summerville, SC K. Jourdan Roberts, CPA Mount Pleasant, SC Daniel S. Robinson, CPA Beaufort, SC Kimberly D. Stravolo, CPA Spartanburg, SC
STUDENT Matthew G. Aguilar Easley, SC Samuel Albert Columbia, SC
Nicole M. Rheinlander, CPA Greenville, SC
Jorge L. Guerrero Dixon Hughes Goodman, LLP* Greenville, SC
Alan Sanders, CPA, MBA Bradshaw Gordon & Clinkscales, LLC* Greenville, SC
Lora K. Lancaster Fountain Inn, SC
Caroline M. Kennerty Edisto Island, SC
(888) 557-4814 | www.scacpa.org
Focus on CPE
Customize Your CPE Game Plan with our Fall Conferences and Workshops Sept. 25: Fraud Conference co-sponsored by the Palmetto Chapter of ACFE (411214) Credit Hours: 8 (6.0 AU, 2.0 BE) Location: SC Bar Conference Center, Columbia Fees: Member $215, NonMember $340 Discount: Palmetto Chapter of ACFE members receive a $35 discount off of the SCACPA member rate. www.scacpa.org/fraud2014
Oct. 21: Women in Leadership Conference (417014) Credit Hours: 8 (2.0 CM, 4.0 PD, 2.0 PE) Location: Marriott, Columbia Fees: Early Bird* $220, Member $245, NonMember $345 Note: Awards luncheon included with registration www.scacpa.org/women2014
Oct. 23: Small Firms Conference (413214) Credit Hours: 8 (3.0 SK, 1.0 BE, 3.0 BM, 1.0 MA) Location: SC Bar Conference Center, Columbia Fees: Early Bird* $220, Member $245, NonMember $345 www.scacpa.org/smallfirms2014 *The Early Bird rate is for SCACPA members who register with payment at least three weeks before the event.
Oct. 28: Financial Planning Conference (418014) Credit Hours: 8 (6.0 AD, 1.0 TX, 1.0 EC) Location: SC Bar Conference Center, Columbia Fees: Early Bird* $220, Member $245, NonMember $345 www.scacpa.org/FP2014
Oct. 30: Governmental Workshop (413014) Credit Hours: 8 (8.0 GA) Location: Columbia Conference Center, Columbia Fees: Early Bird* $220, Member $245, NonMember $345 Note: Accepted for Yellow Book credits www.scacpa.org/GW2014
Nov. 12-13: CPA Summit (411014) Credit Hours: 16 (Various) Location: Marriott, Columbia Fees: Early Bird* $340, Member $365, NonMember $565 www.scacpa.org/summit2014
Dec. 8-9: Accounting & Auditing Conference (416014) Credit Hours: 16 (Various) Location: Marriott, Charleston Fees: Early Bird* $395, Member $420, NonMember $620 www.scacpa.org/A&A2014
IRS & SC DOR Want to Hear Your Concerns On Oct. 22, the SCACPA Taxation Committee will host its annual meeting with the Internal Revenue Service and South Carolina Department of Revenue. During this meeting key employees from both agencies will address issues and concerns of the CPAs of South Carolina as provided in the annual survey. This is an ideal opportunity to share your issues and concerns. All SCACPA members are encouraged to share their comments through the online survey, available on the SCACPA website at www.scacpa.org. There you’ll find important questions with a chance to share your thoughts about reoccurring issues or things the agencies are doing well. Upon completion of the survey participants can enter a drawing to win a complimentary registration for the 2014 CPA Annual Summit which includes a variety of topics, great discussion leaders, and networking, Nov. 12-13 in Columbia. n
(888) 557-4814 | www.scacpa.org
Three Easy Steps to Have Your Issues or Concerns Addressed!
Visit www.scacpa.org
Complete online survey by Sept. 5
Enter for a Chance to win a free registration to the CPA Annual Summit.
Attend the event on Oct. 22 or read eAlert following the meeting
South Carolina CPA Report
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Focus on CPE
CFO Cluster in Greenville
Sept. 15: Internal Control Essentials for Accountants and Auditors (15614A)
Many managers, supervisors, and accountants in business, government or nonprofits are not able to identify their departmental policies and procedures that function as the primary controls against errors and fraud. Alternately, auditors performing field work may be confused about how to interpret and evaluate management's documentation of accounting processes and controls. Neither party may truly understand how their duties differ. This course gives participants a solid understanding of systems and control documentation. After an overview of the latest COSO guidance on the components and principles of effective internal control, this course introduces participants to basic tools used to document an accounting process. Participants then identify the risks of errors and fraud in the accounting system and the presence (or absence) of compensating controls. Finally, participants will practice identifying key controls and control weaknesses.
Sept. 15: Financial Leadership: Create and Deliver Value (15714AM) The financial manager's role has expanded dramatically in recent years to include helping create the organization's strategy as well as driving the changes necessary for strategy implementation. This seminar provides ideas, skills and confidence to help you make the transition from "value preserver" to "value creator."
Sept. 15: Black Swans: Prepare for the Unexpected/Lessons from the Playing Field: What Sports Can Teach Accountants (15714PM) Black Swans: Did you ever hear the phrase, "What you don't know can hurt you?" Nassim Nicholas Taleb, in his book “The Black Swan,� postulates that it is exactly what we don't know that can hurt us the most. The risks we need to be most concerned about are the risks we cannot identify or predict. Taleb terms these risks as "black swans." This session will describe some historical black swan events and, more importantly, discuss how accountants and their organizations can prepare for a future we cannot even envision. Lessons from the Playing Fields: The Duke of Wellington is credited with saying, "The Battle of Waterloo was won on the playing-fields of Eton." From before the 19th century to today, sports have molded our business and professional leaders. Sports can teach today's accountants about many of our most critical business issues including strategy, culture, metrics, management, innovation, adversity and sustainability. This session will explore lessons we can all use from great, and not so great, moments in our professional and amateur sports. Quit feeling guilty about playing those extra nine holes or watching "March Madness" during business season. You're learning important business and professional skills!
Sept. 16: Common Frauds and Internal Controls for Revenue, Purchasing, and Cash Receipts (15814A) As an accounting professional, you are in a unique position to protect your organization from fraud and human error. Learn how to establish a cost-effective system of controls to reduce your organization's exposure while maximizing profits. Explore the common areas for misstatements, both unintentional and fraudulent, that fall within an entity's revenue and purchase cycles and learn how to protect your clients or company against these risks.
Sept. 16: Cases in Corporate Ethics: Discuss Real Life Conflicts (15914AM) Anyone who has ever attended a lecture-format ethics seminar knows that there is a better way. "Cases in Corporate Ethics" provides an opportunity for lively group discussion of actual real world ethical dilemmas. The course examines eight cases drawn from real-life business conflicts involving corporate financial managers.
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(888) 557-4814 | www.scacpa.org
Focus on CPE Sept. 16: Finance and Innovation: Reinvent Your Department and Company (15914PM) Innovation drives economic growth. The key to reigniting the American economy is reigniting innovation. Innovation can be fostered, nurtured, encouraged and sustained by our companies and organizations. Management can create organizations that thrive on innovation or organizations that kill new ideas. Financial managers can help develop and maintain management practices that nurture innovation, or finance can insure the maintenance of the status quo. Innovation can thrive in "skunk-works," but it is also fostered through systems that measure, report and manage innovation. Financial managers need to measure innovation metrics and report on innovation efforts. Innovation is not solely the purview of marketing, sales, service or production. Truly innovative finance professionals use technology and other simple techniques to provide new, more meaningful and actionable information to all employees.
Forensic accountants know all too well the increasing pressure to accurately detect fraudulent financial reporting and to preemptively redesign internal controls to prevent misappropriation of assets. The unique combo of recent economic news and events, plus the endless spotlight of major business failures and scandals only perpetuate the forensic accountant's burden.
In these courses, we review current year developments and planning ideas affecting individual, corporate and business income taxation using a combination of humor and examples. We will emphasize tax developments that affect 2014 tax return preparation and 2014 tax planning for individuals, corporations, and non-corporate businesses. The course format is designed to update CPAs with various levels of experience. Dec. 12 (19114FG), Greenville Dec. 15 (19114FC), Columbia Dec. 15 (Webcast), www.scacpa.org/ taxwebcast1 Dec. 22 (19114FM), Myrtle Beach n (888) 557-4814 | www.scacpa.org
All CFO Cluster courses will be held at the Embassy Suites - Greenville. Please call 864-678-7126 for reservations.
Sept. 17: Shorten Month End: Closing Best Practices (16114AM) Surveys show that the average North American company completes their monthly financial statement closing in five days. Some companies are able to close their books in one day or less. Yet, many financial managers who are pressured to shorten financial statement preparation time, still struggle with the balance between accuracy and speed. This seminar will focus on three key aspects of every close and provide attendees with methods to prepare better quality financial information faster and cheaper.
Sept. 17: Financial Analysis in a Metrics Driven World: "Run the Numbers" Effectively (16114PM)
Sept. 17: Forensic Accounting: Fraudulent Reporting and Concealed Assets (16014A)
Tax Series
Recognizing fraudulent or deceptive practices is not always easy, but this course will sharpen your forensic skills with techniques to uncover fraudulence in all of its guises.
Financial ratios are an old-fashioned financial analysis tool. Learn to better job analyze your company's performance by combining both financial and nonfinancial data. This session gives you the opportunity to collaborate with other professionals in a hands-on, interactive setting. This is not your father's financial analysis! n
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Focus on CPE
Accounting and Auditing Hot Picks Oct. 16 - Cayce Loscalzo's Documentation Techniques for Entry Level Staff (16814) Prepare workpapers that will minimize review notes and cut down on your time. Through interactive cases, you will learn how to: Perform procedures typically assigned to first year staff accountants; document accounting, compilation, review, and audit services; and link identified risks to audit responses.
Nov. 19 - Cayce Loscalzo's Accounts Payable Fraud: Overlooked Schemes and How to Detect and Prevent Them (17914) Accounts payable (AP) fraud is widely overlooked and underestimated as a costly threat to
ALL organizations. Businesses suffer hundreds of thousands of dollars of loss every time an insider commits fraud according to the Association of Certified Fraud Examiners. More disturbing: Billing schemes are by far the most common frauds threatening smaller companies, making up nearly one-third of the total. Adding to the problem, check fraud is rising at a rate of 25 percent per year and criminals are coming up with new high-tech ways of hijacking corporate ACH (Automated Clearing House) accounts. Participants will learn how to identify varieties of AP-related fraud schemes damaging organizations of all kinds, especially small businesses and non-profits, and determine how shrewd insiders abuse the AP process to embezzle funds for years before being
PERF R MANCE It’s what the CGMA designation stands for Officially, it’s Chartered Global Management Accountant . Established by AICPA and CIMA, two of the world’s most prestigious accounting bodies, the CGMA designation represents accomplished professionals who drive and deliver business success, worldwide.
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13085C-312
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Nov. 21 - Cayce Loscalzo's Revenue Accounting in Transition (18214) New FASB standards will profoundly change the way that reporting entities in nearly every industry account for revenue under U.S. GAAP. While current revenue accounting and reporting standards will remain in effect for 2014, CPAs and other accounting professionals will need to completely relearn the fundamentals of accounting for revenue, including recognition, measurement, presentation, and disclosure. Through a combination of examples, hands-on exercises, and discussions, this program will improve your understanding of ASC Topic 605 both now and in the future as it undergoes significant change.
Dec. 16 - Cayce Revenue Recognition (19414A)
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Find out more at cgma.org
detected-and how to shorten the time before discovery. The program will enable them to quickly recognize the red flags of AP fraud in a client's operations and financial records and will assist them in providing cost-effective anti-fraud controls to protect against the growing army of fraudsters both inside and outside their organizations.
Changes to revenue recognition are coming, make sure you're ready for the new standard! For years, revenue recognition has been the cause of audit failures and the focus of corporate abuse and fraud allegations. This course will provide you with the tools to work with the current guidance and new principles of revenue recognition and, through practical examples, will assist you in avoiding revenue recognition traps. Make sure you're up-to-date with the latest FASB guidance! n
4/1/13 1:39 PM
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Focus on CPE
Peer Review Focus Aug. 25 - West Columbia Upcoming Peer Review: Is Your Firm Ready? (15014A) Find out how to prepare for your next review and what can be done on a daily basis to create a strong quality control environment for your firm. Identify the most common, significant deficiencies that peer reviews uncover and what you can do to prevent them from occurring in your firm. Consider the process for selecting the appropriate peer reviewer and determine the right review year-end for your firm. If you have specialized engagements, such as governmental units, not-forprofit organizations, construction contractors or employee benefit plans, this course examines the additional issues that may come into play.
Aug. 26 - West Columbia Performing an Engagement Review (15114A) Learn to successfully conduct an engagement review under the AICPA Practice-Monitoring Program with the help of this training course for review captains. It features an overview of the AICPA Peer Review Program, a detailed discussion of the planning, performance, and reporting aspects of an engagement review, and a summary of administrative matters that reviewers should consider. The course also includes realistic case studies designed to reinforce the most important elements of an engagement review.
Aug. 27 - West Columbia AICPA Peer Review Program Advanced Course (15414A) This one-day, advanced course is designed for experienced reviewers who want to heighten their peer review skills. It is an excellent follow-up to the AICPA's training course, “How to Conduct a Review Under the AICPA Practice-Monitoring Program. “This course includes an analysis of the latest AICPA Peer Review Program Standards as well as materials focused on the areas of peer review guidance which reviewers find the most problematic. n
Take It to the Next Level
CPA
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South Carolina CPA Report
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Classified
Advertiser Index
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Are you ready for Retirement? Do you have a Succession Plan? If not, let MBW be your plan. Are you a one or two partner firm in the state of South Carolina? Are you concerned about the succession of your firm and are interested in capturing the value of your Firm as your retirement stream? Moore Beauston & Woodham (MBW) could be your solution. We have successfully been the succession and retirement plan for many firms in South Carolina and would love to talk with you. John Beauston, Managing Partner, can help you accomplish your goals of maintaining an income stream after retirement, while giving you peace of mind that your clients are receiving the kind of attention and care you worked hard to provide them. Please give him a call for a confidential consultation at 843-766-5010.
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We take special care to thoroughly understand each practice we sell. That understanding - combined with our years of unmatched experience with successful transitions of accounting practices - helps you get the valuable insight to help you succeed. Selling? Check out our new guide to getting your practice ready for market. Please visit www.PoeGroupAdvisors.com or email us at info@ poegroupadvisors.com . 888-246-0974 SC1054- Fort Mill, SC area asking $140,000.00 SC1056- Charleston, SC asking $250,000.00 SC1057-Cloumbia, SC asking $195,000.00
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South Carolina CPA Report
For more information about the CPA Report, or other advertising opportunities, please contact Maureen Taylor, Director of Marketing & Member Services 1-888-5574814 (toll free in SC) or mtaylor@scacpa.org.
(888) 557-4814 | www.scacpa.org
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PoeGroupAdvisors.com • 1-888-246-0974 • info@poegroupadvisors.com Thinking of selling? Learn about our unique process by going online to PoeGroupAdvisors.com or by scanning the code with your smart phone. (Download the free Kaywa Reader in the app store.)
to support the entire transition with our proven 5-step Seamless Succession™ process.
Thinking of selling? Learn about our unique process by going online to PoeGroupAdvisors.com or PoeGroupAdvisors.com • 1-888-246-0974 • info@poegroupadvisors.com by scanning the code with your smart phone. (Download the free Kaywa Reader in the app store.)
PoeGroupAdvisors.com • 1-888-246-0974 • info@poegroupadvisors.com (888) 557-4814 | www.scacpa.org
South Carolina CPA Report
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South Carolina Association of CPAs
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