The Journal Entry - October by UACPA

October

2015,

Vol.

Your Personal ROI Finding contentment in work-life balance Owen Ashton, CPA

A Financial Reporting Revolution?

Work-Life

Balance

Mission,Vision,Values

ExecutiveBoard

Mission

president................................................ Jonyce Bullock president-elect...........................Gavin E. Hutchinson vice president..................................... Hollie S. Andrus secretary...................................Sherie E. Charlesworth treasurer................................................. Kyle J. Pexton member-at-large....................................Larry A. Deppe member-at-large.....................................Brett C. Hugie immediate past president..................... Paul O. Skeen AICPA Council..........................................Dan Griffiths pronet Council..................................Joshua Turnbow CEO........................................................ Susan A. Speirs

The UACPA Leadership supports and challenges members through advocacy, professional education, leadership development, networking, and community service, to help them succeed in a competitive and changing world.

Vision At the UACPA, our vision is to be a world-class professional association essential to our members. We unite a vibrant community of CPAs to enhance the success of our members and champion the values of the profession; Integrity, Competency, and Objectivity.

Values Advocacy The UACPA represents the profession at the legislature and other regulatory bodies and promotes the value of the CPA to employers, the business community, and the public at large.

Leadership & Service The UACPA provides leadership and service within the profession, within the UACPA and within the community.

Professional Development The UACPA supports and encourages continuing education and leadership development.

UACPAStaff CEO........................................................ Susan A. Speirs Communications/marketing and Editor of The Journal Entry............... Amy Spencer CPE Manager......................................... April Deneault Financial Director..................................... Tom Horn Membership Development........... Braden Thompson The Journal Entry is published quarterly, by the UACPA 136 S. Main Street, Suite 510 Salt Lake City, UT 84101 tel: 801-466-8022 toll-free in Utah: 1-800-676-2776 e-mail: mail@uacpa.org or log on to www.uacpa.org Cover photo - Kristan Jacobsen, kristanjacobsen.com

Professional Community The UACPA reinforces peer accountability to encourage members to maintain integrity and high ethical standards. We â&#x20AC;&#x2039;â&#x20AC;&#x2039; provide member to member networking opportunities and networking opportunities with other professions. We value belonging to a distinguished organization and believe that we serve as the primary resource and point of contact for Utah CPAs.

UACPA Statement of Policy CPAs have common problems and interests. This magazine has been created to share information relating to the practice of accounting. The opinions, views and articles expressed in this magazine are not necessarily those of the Utah Association of Certified Public Accountants. This magazine should not be deemed an endorsement by the UACPA or its committees or editorial staff of any views, opinions or

Diverse Population Outreach

positions contained herein. Because of the complexity of tax laws and

The UACPA believes in reaching out to under-represented populations, those returning to the profession or choosing it as a second career, and other professions.

accounting transactions and the changing status of the law, as well as variations in practices and procedures among accountants, information in the magazine should not be used, acted or relied upon, as a substitute for independent accounting or legal research and advice.

the journal entry | October 2015

in this issue | October 2015

feature story

Finding Satisfaction in Our Work

127 New Members............................................................................................4 Movers & Shakers......................................................................................5 President's Message ..................................................................................6 Message from the CEO............................................................................. 7 Cover Story: Wellness at Work................................................................8 By the Numbers: Work-Life Balance.................................................... 15 FASB Not-For-Profit Proposed Accounting Standards Update........ 16 Technology Trends in Cyber Security ................................................. 21 Tax Credit with a 529 College Savings Plan.........................................26 Understanding Research & Development Tax Credits.......................28 Women in Accounting: Ariane Gibson, CPA......................................30 Supporting Financial Literacy and the UACPA PAC..........................32 Board Bullets: News from the UACPA.................................................34 Meet the Executive Board......................................................................35 Meet the UACPA Staff ............................................................................36 Five Minutes with Tom Horn, CPA......................................................39 2015 Awards & Inauguration.................................................................38 UACPA Photo Pages...............................................................................40 Member Benefit Spotlight: World Benefit Solutions..........................44

By the Numbers: Work-Life Balance

Technology Trends in Cyber Security 21 Meet a Member: Tom Horn, CPA 39

CPE Schedule...........................................................................................46 the journal entry | October 2015

New Members

NewMembers Congratulations to the following individuals/CPAs who were approved for membership or affiliate status in the UACPA as of Sept. 29, 2015.

Fellows

Joshua R. Kirn KPMG

Jeff Labrum ClearCom Technologies

Michael Kunkel

Evan S. Briggs KPMG, LLP

John Stroemer

Tyler W. Sorenson

Wade D. Nichols Christensen Nichols PLLC, CPA's & Consultants

Kurt D. Hansen Rapid Financial Solutions

Nathan K. Hunter AgReserves, Inc. Rob Gillespie Premier Computing, Inc. Blake Christian Sr. HCVT, LLP Justin Parkinson Northwest Research, Inc Anne Larson Matthew Royse Bryan Tesch Focus Services Julianne Louie Haynie Daniel A. Aponte Ernst & Young LLP Nicholas Madsen Gold Cross Services Inc

Jonathan M. Scott Haynie & Company Darin Pierson Hawkins Cloward & Simister, LC Robin Holt University of Utah College of Health Mary Fackrell International Rescue Committee Jared F. White Utah Jazz Retail, Inc.

Student Affiliates

Salt Lake Community College Kennedy Allen Brigham Young University Candice Plessinger Washington State University Lindsey Filbert

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Western Governors University Edgar Mejia Brian D. Benson Julie McCutcheon Raj Valluri Utah Valley University Amanda Vorkink Brock Stokes Brian Keding Ted E. Nielsen Jacob Curtis Daniel Follett Skyler Martinson Jennifer Anderson Jantzen Walker James Nielsen Josh Hardin Joanna Kuntz John Clement Andrew Carter Mary Slawson Adonica Limon Daniel Dunn Valerie A. Illingsworth Tate Campbell Sophia Yamamoto Kathleen Walker Jayme Zimmerman Independence University Krista Swift University of Phoenix Doug Hartill Unaffiliated Jacob S. Nieuwsma

University of Utah Matthew Green Anne Dendurent Andy Speirs Hyun Ah Miya Shelby Holdener Derek Hartlauer Nathan Nugent Rebecca Watson Anna Chang Cody D. Golder Logan Wisener Diana Artica Braden Call Joseph H. Pynchon IV Philip Fong Trever Lyman Clayton Guy Melanie Roberts Dacia Stewart Erin Hart Francisco Viteri David Kang Erik W. Asplund Steven T. Camargo Chinh T. Nguyen Ryker A. Morris Dixie State University Emily D. Bowles Jordan Houston Jared Radmall Jennifer Waddoups Jory Wright Patrick Hughes Richard David Jordan Christopher Tew Chad Cottam Gage H. Simms

Movers & Shakers

Movers&Shakers James & Co., Business Advisors/CPAs have become part of Eide Bailly LLP. On November 2, Dan E. James, president and CPA, and his team of 10 staff members will join the firm's Ogden office and bring Eide Bailly's Utah practice to 21 partners and 114 staff. PwC US announced Joe Strain has been admitted into the firm's partnership. Strain brings more than 16 years of experience in public, private and governmental accounting. His expertise in US GAAP accounting for US Registrants has taken him overseas to Tokyo, where he currently resides. Prior to his assignment in Tokyo, Strain taught as an associate professor at Westminster College. WSRP, LLC announced the addition of 18 new professionals. New partners include Randy Jensen, Scott Reams, Scott Czaja, Kris Cox and Tyler Curtis. New Audit Managers joining are Nate David, Jeremy Jones and Brandon Keyes. In addition to the new partners and managers, nine professionals previously associated with Jensen's group have joined WSRP. With the addition of these professionals, the firm will now have 97 members across its three offices. Gavin Hutchinson has been named the president of EnableUtah, a company that assists individuals with disabilities. Currently serving as the UACPA's President Elect, Hutchinson previously worked at Academica West with school directors to implement best practices in finance and accounting. He moved to Ogden in 2003 and completed his MBA at Weber State University. Control4 Corporation appointed Mark Novakovich as its new Chief Financial Officer. Novakovich has been with Control4 since 2004, serving in senior financial leadership capacities from its early days as a venture-backed startup through today as an industry-leading global business. With more than 20 years of senior financial management experience, Novakovich has been responsible for all of Control4â&#x20AC;&#x2122;s finance and accounting operations, as well as its tax, treasury, order management, and internal control activities. He received his Bachelor of Accounting from Brigham Young University.

Dan Griffiths has been named Outstanding Young CPA for 2015 by the AICPA. This award recognizes a young CPA who personifies an unwavering commitment as demonstrated through successful practices, involvement in and contributions for the interest of the accounting profession. Grant Thornton LLP has admitted Katina Curtis as Audit partner in the firm's Salt Lake City office. Curtis joined Grant Thornton in 2005 and has more than 10 years of experience in public accounting, managing financial statement audits and integrated audits for both public and private clients in a broad range of industries. She graduated from Westminster College with a bachelor's degree in accounting and earned a master's degree in professional accountancy from Brigham Young University. Following a 46 year career, Larson & Company founder Dennis Larson has retired. The firm, which Larson founded in 1975, has grown to more than 70 employees in 5 offices throughout Utah and Nevada. Originally founded with the central purpose of serving the insurance industry, Larson & Company has grown to include serving businesses in the nonprofit, government, middle market, SOC, and technology niches. Larson will be succeeded by Greg Denning. Denning joined the firm in 2006 and spent 14 years working for Deloitte. Curt Bramble, president pro tem of the Utah Senate, became the 43rd president of the National Conference of State Legislatures (NCSL) at the Legislative Summit this summer. NCSL is a bipartisan organization that serves the nation's 7,383 state lawmakers and more than 20,000 legislative staff throughout the country. First elected in 2000 to the Utah Senate where he is in his fourth term, Bramble currently serves as the president pro tempore, is chair of the Business and Labor Standing Committee, and is co-chair of the Legislative Information Technology Steering Committee. Bramble also serves on numerous other committees including the Business, Economic Development, and Labor Appropriations Subcommittee; Senate Law Enforcement and Criminal Justice Confirmation Committee; and Executive Offices and Criminal Justice Appropriations Subcommittee. the journal entry | October 2015

President's Message

Jonyce Bullock, CPA

or the past six years, I have found the “perfect” way for my family to survive busy season (and barely notice that I’m not around). Both of my children have become involved in a local theater group that puts on a musical production each spring. Auditions are the first week of January and the production is always the week of April 20. They end up being busy, essentially on the same schedule that I do. The reason I tell this story, is not to give it as an example of “work-life balance,” because it’s not. What I want to talk about, is what happens after the play is over. My kids have an amazing director. Not only is she a skilled performer and director, she is also an expert in the management and behavior of 100-plus kids. What they do on stage is amazing. But what is even more amazing, is what she does to help the kids behind the scenes, in their lives. Each year just before the show, all parents receive an email, warning us about what she calls “post-production let down.” She explains that these kids have spent four months of their lives, eating, sleeping and breathing musical theater. Although the kids are tired and ready for it to be over, she warns that in the days and weeks following the end of the show, the kids may become tired, depressed and feel lost. She encourages us, as parents, to help them fill their time with meaningful activities and help them take care of themselves by making sure they get enough sleep, eat right and enjoy other activities. I remember reading this email the first year and chuckling to myself; this seemed so dramatic and over the top! I then sat back and watched it happen.

spend several months of our lives eating, sleeping and living accounting. We work nights and weekends helping clients and others accomplish their goals and, while stressful, it can also be an exhilarating experience! However, we rarely think about what we are going to do to meaningfully replace our time and take care of ourselves when it is over. I generally find myself just wanting a long nap, and afterwards, I feel restless like something is missing.

In the accounting profession, we talk a lot about work-life balance and how things need to change to continue to attract new graduates into the profession. With increasing regulations and requirements looming over us constantly, sometimes this feels like a battle that can’t be won. While we may not be able to remove the regulations and deadlines of the profession, and there will probably always be times when we have to work long hours, we can do things to help ourselves and those we work with, to find continual enjoyment and satisfaction in our accounting careers. Please take Although my kids are exhausted by the end of the producsome time to read the cover article by Owen Ashton; it is a tion, they have also just come off an incredible high of accomplishing something amazing. Once that is gone, there great place to start and offers practical advice we can inteis a hole in their day that is hard to explain. We quickly real- grate into our everyday lives right away. ized the importance of this advice! I’d love to hear from you! How can the UACPA help you and your company navigate these issues? Please contact me For the past few years, I have thought about this concept anytime, at jonyce@squire.com with any thoughts you have a lot as I have noticed that we as CPAs set ourselves up for about things the UACPA can do to support you in this great what I am now calling a “post busy-season let down.” We profession.

the journal entry | October 2015

CEO’s message

CEO's Message

Susan Speirs, CPA

all is in the air and the holidays are around the corner. Year-end forecasts, budgets, audits and tax planning are under way and before you can blink 2016 will be here. Is your heart palpitating? Are you getting sweaty palms? This is the time of year when the health profession sees more stress-related health problems and society, in general, sees an increase in suicide rates. In this issue of The Journal Entry we give you a few ideas you can utilize to help you find that work-life balance you need in order to maintain your health, your relationships and your sanity. Below are some ideas that you can use in your daily lives. • Build downtime into your schedule – Laura Stack, productivity expert, advises to be proactive in your scheduling and to build downtime into your day. If you have something to look forward to, you will find yourself being more productive. • Drop activities that sap your time and energy – Marilyn Puder, PhD says, “Take stock of activities that don’t enhance your career and personal life, and minimize the time you spend on them.” Be aware of the time you’re spending on websites, making personal calls or colleagues who are constantly venting and gossiping and taking up otherwise valuable work time.

• Small changes pay big dividends – Slowly build more activities into your schedule that are important to you. Perhaps during a hectic day, take 10-15 minutes doing something to recharge your batteries will be all it takes to help loosen the stress.

At the UACPA we appreciate all those who donate their time and energy to our committees and the issues affecting our state and profession. Our profession is demanding and it isn’t always possible to donate time. We have other ways you can contribute that don’t sacrifice life balance (see page 32). In the coming weeks we will be soliciting donations • Rethink errands – Consider whether you can out- with regards to our PAC and Education Foundation as we source any of your time consuming chores or ercontinue to tackle legislation such as licensure, attest, entity rands. For me, hiring someone to take care of our taxation and a looming sales tax on services as well as our house and yard freed up some much-needed time ongoing our financial literacy initiatives. Let us do the to spend with family, friends or just to decompress. heavy lifting while you continue to provide us with your insights as you work with employers, clients, agencies and • Exercise – It’s hard to justify a workout or jog organizations. when you feel like you have a jam-packed schedule. However, research has shown that exercise As always, we love to hear your thoughts, ideas and will help you stay more alert and give you an concerns. Please reach out to me at ss@uacpa.org increase in energy.

the journal entry | October 2015

Finding Contentment in Our Work: One CPA's Journey By Owen Ashton, CPA

hip the PCs back! More efficient audits mean fewer billable hours and reduced revenues!” This was the sentiment of some of the partners at the “Big 8” firm I worked for in the early '80s. The national office had shipped several newly invented microcomputers for us to try out. I was the senior auditor on a client with about 20 subsidiaries. Using electronic spreadsheets for consolidation calculations saved many hours. No longer did we ask the newbie auditors to tediously add rows and columns of columnar “horse blanket” schedules using ten-key machines. We were disappointed that these partners did not share our enthusiasm. Looking back years later, their unenlightened attitude about PCs is laughable. Yet, the mindset that more work hours are better does seem to permeate our profession. It’s not just in public accounting. In my years in finance management, the finance department staff members always seemed to be among the first to arrive and last to leave. Long hours were not healthy for my overall well-being. They were part of a lifestyle I was stuck in. I was constantly on a treadmill trying to keep up with a never-ending string of tasks, many of which I did not enjoy. Sure, there were occasional euphoric moments after audits came in on time, under budget, and with positive comments by the client’s senior offices to our partners. But I was frustrated and my wife and children were frustrated. Things weren’t fitting together well. The last few years have been much better as I’ve found a more suitable niche for me. Executive coaching, writing, and inspirational speaking are things I truly enjoy. No more long work hours. My life is more in balance. I now take time to replenish and restore myself. I’m more connected with my family members and others. Life feels good! How do we CPAs find satisfaction and contentment in our demanding profession? How do we get the work part of our lives to mesh with everything else? How do we achieve happiness? I’m not a psychologist, but I believe our profession presents unique obstacles to achieving contentment — or, at least, it has for me.

Special Challenges of our Profession Tendency to focus on things rather than people You’ve heard the accountant jokes about how we are loners who only care about numbers, not people. Most of the CPAs the journal entry | October 2015

Feature Story I’ve known are not like this at all. They are warm, outgoing, individuals who do primarily focus on people. But still, there must be some element of truth to the typecast.

or she experiences serious mental health problems. Think of Einstein, Lincoln, Churchill, and Gandhi. All were plagued with major depression or similar maladies.

I have a non-accountant friend who has worked with many of us for years. She once described the UACPA as the “those who keep to themselves club.” Ouch!

If this nexus between intelligence and mental illness is true, then it’s probable that we have more than our share of these challenges. Experts say that in any given year, one in four Americans experiences a mental illness that is interfering with their lives to an extent that they should be treated. Tragically, 60% of those do not receive treatment.

This anonymous quotation was posted on the wall of an audit client’s conference room: “The happiest times in our lives do not come from personal possessions and wealth, but rather they come from our relationships with our family and friends.” Secretiveness; Lack of Spontaneity “Be open and spontaneous in your day-to-day interactions with others.” That's what the psychologist guest speaker at my firm’s two-week “charm school” for new managers said. This was a new concept for me. It felt almost heretical. My family culture growing up was more like “be of few and measured words.” Then when I joined a CPA firm, there was great emphasis on client confidentiality. Further, CPAs were to only say and write things that are carefully supported by adequate evidentiary matter. My wife and children used to tell me I was too secretive — not about important things but about the little insignificant day-to-day stuff. As I’ve grown older, I’ve learned that one must separate professional responsibility from how one interacts with family, friends, and close work associates. I’ve grown to appreciate the words of psychologist Robert Bolton: “A genuine person can spontaneously be himself with another, so they know him as he truly is…By contrast, the inauthentic person conceals his real thoughts, feelings, values, and motives…Genuineness is essential to all vital relationships.” High Level of Intelligence Do you, like me, take pride that you belong to a profession of fairly brainy people? We all have the intellectual wherewithal to have passed those monstrous exams! It gives my self-esteem a little bump whenever I think about it, thank you. There is at least one downside, though. A therapist friend told me there is a direct relationship between an individual’s level of intelligence and the probability that he 10

the journal entry | October 2015

Experts say that in any given year, one in four Americans experiences a mental illness that is interfering with their lives to an extent that they should be treated. Tragically, 60% of those do not receive treatment.

I know this is a sensitive subject that many find uncomfortable. With news reports about mental illness being linked to mass shooters and all the other related disgusting, misguided stigmas, it’s convenient to simply ignore them. My personal experience has proven that mental health challenges are a big obstacle to achieving satisfaction and contentment. Ignorance and denial only make matters worse. There are different kinds of mental illness: mood disorders including depression and bipolar disorder; psychotic disorders including schizophrenia in which the brain sends false signals of seeing, hearing and feeling; anxiety disorders including panic attacks and posttraumatic stress disorder; personality disorders that include obsessive compulsive, borderline, and narcissistic disorders; and eating disorders. Seeking support and resources for serious mental illness is important, but many must deal with mental health challenges of some magnitude. It’s part of the human condition. After I gave a CPE presentation to a UACPA group, someone commented to me that I spent too much time talking about mental illness because it “wasn’t relevant to 75% of the attendees.” That’s like saying, "because I haven’t been hospitalized or otherwise treated by a medical provider for a physical injury or disease, I should not have any concern about my maintaining my physical health." Just like our

Feature Story physical health, none of us has perfect mental health all the time. We all experience emotional or mental instability as we react to different situations. Fortunately for most, it’s like a passing flu or a cold that goes away by itself. We all carry at least some mild forms of personality disorders that manifest themselves when we get angry, we don’t get along with someone, or we display neurotic habits. It’s just that for some of us, more serious manifestations require getting professional help. My guess is that if we graphed mental illness in the general population with severity on the y axis and frequency on the x axis the curve would look like a rectangular hyperbola. At any point in time, every one of us is somewhere on the curve.

how much I don’t know.” Here’s my variation: The more I learn about my brain, the more I realize how messed up I am. Also, the less likely I am to look down my nose at those other people — those “crazies” — with mental illness because I — and so many others — are among them. Plato’s words come to mind: “Be kind, for everyone you meet is fighting a hard battle.” Whether mental illnesses are serious or mild, it’s wise to pay attention. In our profession, mental health challenges seem like almost an occupational hazard — our black lung disease. Frugality I once discussed a business plan for a service aimed at CPAs with another non-accountant friend who knows us well. At one point she paused, looked straight at me, and said, “Owen, it will never work. CPAs are too cheap! They won’t buy even if it makes total sense.” My dear, patient wife could tell you stories into the night about how cheap I am. She’d likely start by showing you the artificial diamond she’s worn on her finger since the original was lost. On the other hand, most the people I’ve worked for have liked having a tight-fisted finance executive. I like to think it’s not all bad, but I fear I’m often penny wise and dollar foolish — especially when it comes to investing in my own well-being.

When you’ve traveled to third world areas, have you seen people living with physical deformities that would have been surgically corrected in our country? Tugs at your heart, doesn’t it? It equally pains me to think of many neighbors, friends, and loved ones who must live with emotional scars and other mental health challenges and who could be so much happier if they received help. A neighbor passed by one day while I was working in my front yard, and we briefly chatted. She’s one of the most mature, competent individuals I’ve known. She’s helped countless people in need. When I asked how she was doing, she was refreshingly candid. She referred to personal struggles with depression and anxiety. She said she felt like a total mess! I was shocked! Albert Einstein said, “The more I learn, the more I realize

I’ve spent countless hours preparing five-year financial projections for growing enterprises. You know the exercise. The up-front capital expenditures and the ongoing operating expenses yield handsome revenues and profits. It all fits. Yet, if I were to prepare such analysis for my own life, I sometimes act as if the revenues and profits will always flow with little investment in my own mental and physical health and in spending time to build relationships with those I care about.

Mitigating these Challenges I’ve done my share of creating flow charts, identifying risks, and proposing internal controls and other remedies for business processes. If I’m to eat my own dog food, I should do the same for my personal management. Here are some of the “internal controls” that have helped me. the journal entry | October 2015

Feature Story Focus Primarily on Other People, Not Numbers or Oneself The Myers-Briggs personality type indicator has me pegged as a profound introvert. I’ll always be an introvert because, unlike extroverts who get energized being around groups of people, I must be alone to replenish. Further, I’m naturally reserved, quiet, and even shy. However, over the last several years, I’ve become more outgoing. My awkward selfconsciousness is pretty much gone. In fact, when I’m out in public with my grown-up children, they express embarrassment at all my talking with strangers. Imagine that! When I first enrolled at the University of Utah, I joined the Greek fraternity Pi Kappa Alpha. I joined not because l fit into the mold of the cool, suave man on campus. I was more of a nerd. I joined for one reason: to force myself out of my comfort zone and to involve myself with more people — especially those who were different from me. I was an active member until they threw me out a couple years later for getting married. Since that time I’ve been actively involved with the Kiwanis Club, Toastmasters, National Speakers Association, Boy Scouts, my church organization, and, of course, our great UACPA. I’ve tried to get my mind off myself, understand the needs of others, and serve. I have benefitted immensely. I’ve found that having a few close friends — especially my wife — with whom I can confide all the ups and downs of life is extremely important. Take Time to Exercise, Relax, and Replenish Exercise is a natural antidepressant for me. I love to be outside to hike, bicycle, golf, and play tennis. My new home town of St. George is perfect. Even when the temperature soars to over 100 degrees in the afternoon, it’s deliciously cool in the morning just after sunrise. Others prefer the gym — or even their office building. Carey Woolsey, a past UACPA president, climbed flights of stairs during his lunch breaks when I worked with him in a Salt Lake high-rise. Find a Professional Niche That’s Truly Enjoyable I believe that most of my friends would observe that I’ve had a fairly successful career. I spent nine years in public accounting and 20 years in industry — mostly with large, mul12

the journal entry | October 2015

tinational giants. At times I found big corporate America frustrating. All the rough and tumble interactions related to climbing the corporate ladder didn’t sit well with me. Also, I like sequentially focusing on one matter at a time and going deep rather than trying to juggle many duties at a time. In the last few years as I’ve found a more comfortable place for myself, life has grown much sweeter. Henry Eyring, former world-renown University of Utah chemistry professor, gave this advice to one of his sons: “You ought to find something that you love so much that when you don’t have to think of anything that’s what you think about.” I’ve learned that accountants excel in many different types of positions and in various settings. We are not just tax specialists, auditors, CFOs, and controllers, though many of us find this work truly invigorating. Really Listen Steve Albrecht, an accomplished UACPA member, believes in listening: “Listening carefully can make all the difference in the world for us.” His advancements in accounting academia and fraud auditing are legendary worldwide.

Steve Albrecht, an accomplished UACPA member, believes in listening: "listening carefully can make all the difference in the world for us." His advancements in the accounting academia and fraud auditing are legendary worldwide. My wife tells me I have trouble following this advice. Even after showing her good results on clinical hearing exams she says I have a hearing problem. But there’s one time I really did listen to her, and it has made all the difference in the world for me. In the late 1980s, our family relocated to the Los Angeles area for my first position out of public accounting. I was the vice president of finance of a company in a new promising industry: mobile phone service. At least I thought it was promising. My skeptical father-in-law feared for the economic well-being of his daughter and grandchildren as he asked, “Who would ever want to talk on the phone in a car?” I got wrapped up in this growing enterprise, plus there was

Feature Story

a two-hour daily commute. Several months in, my wife had a serious conversation with me. She said, “Owen, you are a workaholic, and when you are home you are aloof from me and our children. You need help. You must go to a counselor.” Frankly, I saw no need, but I could feel how serious she was. She understandably had had it with me. Realizing the stakes were high, I started psychotherapy. (I know, another a scary word). Rather than finding the sessions awkward and awful, they were uplifting and mind-expanding. I got better acquainted with myself and I was no longer afraid of who I was. I learned to recognize my emotions and respond to them healthily. I worked through painful family experiences from my youth. I grew to understand that I had been living unknowingly for years with chronic clinical depression and generalized anxiety disorder (more scary words!). For years I was among the 60% of the 25% that went untreated. I had to make up time. I learned how to manage these conditions. I began taking daily an antidepressant. Life became much better. I moved from being on a constant treadmill of tasks to enjoying life. I received therapy on and off for several years; job relocations brought therapist changes. I always absorbed the full

cost in fear of career damage should my employers find out via insurance claims. It totaled thousands of dollars. My wife would agree that this has been among our best investments. I wasn’t too cheap — yeah! One winter day when we lived in the Salt Lake Valley, I climbed about half-way up Mt. Olympus. When I turned around to view civilization below, it had disappeared. We were having one of our ugly inversions. They valley was a bowl of suds. As I stood there, I thought how when I was down in it, I didn’t realize how unhealthy all the gunk was. But now that I was in the sunshine and clear mountain air, I could see it for what it was. I view this as a metaphor of my mental health journey. The change was so amazingly wonderful that I felt passionate to share it with others. My mantra has been to help middle-aged professional men to get help for mental health challenges. I focus primarily on us macho men because I think generally we struggle more to recognize and seek help. I began devoting significant efforts to mental health advocacy. I joined the National Alliance on Mental Illness, began teaching classes and led support groups. I was voted on to the journal entry | October 2015

Feature Story NAMI Utah’s board of directors. In pursuit of this passion, I made presentations at several UACPA chapter meetings in 2014. I hope I had a positive impact on at least a few. I suspect that most people are like me. It took a strong push from someone close to me to act. Seek a Relationship with a Higher Being or Strive to Exist on a Higher Spiritual Plane My personal relationship with God through praying to Him daily, feeling His help and direction, and striving in my very inadequate way to do His will, has been the most important positive factor in my journey upward.

Closing Thoughts Dear reader, you now know more about me than you ever wanted to. Maybe you can take away some helpful little morsel from my misadventures. It would likely be more productive to emulate someone who has his or her act together. One of my heroes is a CPA firm partner I worked under: Lynn DeBry. He seemed to enjoy his work and his interactions with his clients and his staff. I often walked into his office — his door was almost always open — to discuss client matters. A couple of years ago Lynn, now well into retirement, allowed me to visit him in his home. I asked him to share his recipe for success. He said, “You have to show your love to the people you work with, although that’s probably not how you’d describe it in business terms. Let people know they are valuable. Listen to them. Take comments seriously. Be a coach. Be approachable. Make people comfortable to ask you questions. Don’t expect people to work so hard that they don’t have a life. If they have a good family life, it is more likely they’ll be better employees. Relationships are important.” Over his career Lynn knew how to focus on other people, not himself. He enjoyed what he did. He really listened and he seems to have integrated all the right “internal controls” into his life. And, in addition to all this, he was among the partners who saw the benefits of PCs right from the start! ■

the journal entry | October 2015

Owen Ashton, CPA is the president of the UACPA's Color Country Chapter. He can be reached at oa@owenashton.com

by the

Numbers

These numbers come from a survey by Harris Poll on behalf of Workfront that took place in February 2015 among 2,016 working adults. See more at www.workfront.com.

Work-Life Balance

57 40

Percentage of employees who say that technology has ruined the modern family dinner

Percentage of employees think it's okay to answer an urgent email while with family

38 Percentage of employees who say they have missed important life events because of work

Percentage of employees who believe employers should improve work-life balance by offering flexible work schedules

Percentage of men who say their work-life balance is good

the journal entry | October 2015

A Financial Reporting Revolution or Back to the Trenches? FASB Not-For-Profit proposed Accounting Standards Update Shalaun T. Howell, CPA

enerally Accepted Accounting Principles (GAAP) for Not-For-Profit Entities (NFP) have remained practically unchanged for more than 20 years. Now, practitioners and NFPs potentially face what are being considered “once in a generation” changes in financial reporting. In 2010, the Financial Accounting Standards Board (FASB) charged its Not-For-Profit Advisory Committee (NAC) with evaluating the effectiveness of the NFP financial reporting model and determining how best to improve it. Several years into the project, the NAC finally decided to focus its efforts on two major areas: the net asset classification scheme and the presentation of the information in financial statements and notes that is useful in assessing an NFP’s liquidity, financial performance, and cash flows. In April 2015, the FASB issued its long-awaited proposed Accounting Standards Update (ASU) - Not-for-Profit Entities and Health Care Entities: Presentation of Financial Statements of Not-for-profit Entities. While the proposal does not change the recognition or measurement of assets, liabilities, revenues, or expenses, it completely overhauls how those items are presented, disclosed, and classified. uring the proposal’s four-month comment period, the FASB received 261 letters, most of which expressed opposition to many of the proposed changes.

the journal entry | October 2015

Goals and Provisions To evaluate the effectiveness of the NFP financial reporting model and to determine what improvements should be made, FASB reached out to NFPs, donors, creditors, and other stakeholders. These stakeholders expressed confusion about restrictions and liquidity, frustration with the inconsistencies in operating measures and presentation of expenses, and disappointment in an apparent lack of utility of the Statement of Cash Flows. After nearly five years of research and deliberation, FASB rolled out its proposed accounting standards update with the goal of • improving the usefulness of information provided to donors, creditors, and other users of NFP financial statements, and • reducing the complexities and costs for preparers and users of the financial statements. The main provisions of the proposed ASU affect net asset classification, presentation of the statement of activities, presentation of the statement of cash flows, and myriad note disclosures.

Nonprofit

Net Asset Classifications Net asset classifications are important to NFP financial reporting because they provide information about donorimposed restrictions, which is necessary to gain an understanding of an NFP’s financial position, flexibility, and ability to provide service. Many financial statement users have misunderstood the existing terminology. For example, “unrestricted net assets” is frequently misunderstood to mean net assets without contractual, legal or other types of

restrictions. In addition, changes in endowment laws (UPMIFA) have blurred the distinction between temporary and permanent restrictions. Proposal The FASB proposed consolidating restricted net asset classes, eliminating the distinction between resources with permanent restrictions and those with temporary restrictions. Although lengthy, the proposed terminology clearly identifies restrictions as donor-imposed.

Existing GAAP Temporarily Restricted Net Assets Net assets subject to a donor-imposed stipulation that permits the donee to use up or expend the donated asset as specified and that is satisfied either by the passage of time or by actions of the donee. Permanently Restricted Net Assets Net assets subject to a donor-imposed stipulation that neither expires by passage of time nor can be fulfilled or otherwise removed by actions of the NFP. Unrestricted Net Assets Net assets that are neither permanently restricted nor temporarily restricted by donor-imposed stipulations.

Proposed GAAP Net Assets With Donor Restrictions Net assets that are subject to a donor-imposed stipulation that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: • The nature of the NFP • The environment in which it operates • The purposes specified in its articles of incorporation, bylaws, or similar documents

Net Assets Without Donor Restrictions The part of net assets of an NFP that is not subject to donor-imposed restrictions.

Reactions

Proposal

The proposed change in net asset classifications received more support from respondents than any other major provision in the exposure draft.

FASB proposed requiring two separate operating measure subtotals to be presented on the Statement of Activities. These include Operating Excess (Deficit) Before Transfers and Operating Excess (Deficit) After Transfers, as defined below. Operating activities would be distinguished from nonoperating activities based on whether they are directed at carrying out an NFP’s purpose for existence and whether resources are available for current-period activities.

Presentation of Statement of Activities Many stakeholders believe that financial reporting would be significantly improved with the inclusion of an operating measure. Existing GAAP allows, but does not require, NFPs to report an operating measure. Consequently, operating measures have not been consistently reported, standardized, or comparable.

the journal entry | October 2015

NonProfit

Existing GAAP Reporting an operating measure is optional

Proposed GAAP Reporting the following two operating measure subtotals is required: Operating Excess (Deficit) Before Transfers A measure of an NFP’s operations that result from aggregating (a) revenues, expenses, gains, and losses for the period that are from or directed at carrying out an NFP’s purpose for existence and are available for use in the current period and (b) donor-restricted support that became available in the current period for carrying out the NFP’s purpose for existence. Operating Excess (Deficit) After Transfers Operating Excess (Deficit) Before Transfers plus the effect of internal actions resulting from governing board designations, appropriations, and similar transfers that make resources unavailable or available for carrying out an NFP’s current-period purposes. Nonoperating Changes Revenues, expenses, gains, and losses for the period that are not both directed at carrying out an NFP’s purpose for existence and available for use in the current period.

Under the proposed model, the most significant components of nonoperating activities for most NFPs would include investment activities (excluding programmatic investing) and recognition or release of support revenue with donor-imposed time restrictions. The performance indicator that is currently required to be reported by business-oriented health care NFPs would no longer be required. Reactions The proposed reporting of operating measures received significant opposition from respondents. The most pointed concern was that implementing a required operating measure for NFPs would lead to further divergence of NFP and for-profit financial reporting models, especially while FASB is currently working on for-profit projects that are expected to address similar issues. It is noteworthy that current forprofit GAAP requires businesses to distinguish between net income and other comprehensive income, but reporting

Existing GAAP Statement of Cash Flows is required to be presented using the indirect method of reporting. An NFP may also choose to present the Statement of Cash Flows using the direct method of reporting in addition to the indirect method of reporting. 18

the journal entry | October 2015

standards neither require nor preclude a separate operating measure. Respondents also expressed concern that requiring reporting of subjective internal transfers would extend accounting recognition to transactions that are not typically part of external financial reporting and would increase the risk of earnings manipulation.

Presentation of the Statement of Cash Flows Stakeholders expressed concerns that the Statement of Cash Flows was not understandable. FASB’s outreach efforts indicated that NFPs that voluntarily elected to use the direct method (in addition to presenting the indirect method) found the Statement of Cash Flows more intuitive and useful to their board members, donors, and creditors.

Proposed GAAP Statement of Cash Flows is required to be presented using the direct method of reporting. An NFP may also choose to present the Statement of Cash Flows using the indirect method of reporting in addition the direct method of reporting.

Nonprofit Proposal FASB proposed that NFP be required to prepare the Statement of Cash Flows using the direct method of reporting. FASB also proposed a variety of changes in cash flow classification of specific activities. Operating cash flows would include purchases and sales of long-lived assets and contributions restricted to acquire long-lived assets, which are currently reported as investing activities. Financing cash flows would include payments from interest on borrowings, including cash management activities, which are currently reported as operating activities. Investing cash flows would include interest and dividends on loans and investments (except programmatic investments), which are currently reported as operating activities. Reactions Most respondents strongly opposed the proposed changes to the Statement of Cash Flows. They believed that, as with the operating measure, such changes would lead to further divergence of the NFP and for-profit reporting models, since for-profit businesses are not required to use the direct method of reporting. They expressed a preference that changing the required method of reporting the Statement of Cash Flows not be addressed in the NFP project, but be included as part of a comprehensive consideration of financial reporting for both NFP and for-profit business entities. Some also

voiced concerns that the provisions would result in confusing differences between the proposed operating measure on the Statement of Activities and operating cash flows.

Changes in Accounting Methods The FASB proposed two changes in accounting method for NFP entities to help standardize the proposed operating measures. First, investment expenses (including internal expenses) would no longer be required to be separately presented, but would be netted against investment income. Second, NFPs would no longer be allowed to elect to report expirations of donor restrictions on assets used to construct long-lived assets over the estimated useful life of the acquired asset, but would be required to report expirations when the asset is placed in service. Most respondents agreed with these proposed changes.

Note Disclosures Liquidity Creditors and other stakeholders often find it difficult to assess liquidity of NFPs, particularly because the nature of the assets appear liquid but may, in fact, be restricted by contracts, laws, or donor stipulations. FASB proposed requiring NFPs to disclose

EXAMPLE PROPOSED LIQUIDITY DISCLOSURE The Organization utilizes a 60-day time horizon to assess its immediate liquidity needs. This period of time was established based on managementâ&#x20AC;&#x2122;s review of the typical life cycle of converting its financial assets to cash and typical payments of its trade payables. The Organization invests cash in excess of daily requirements in short-term investments. The board designates a portion of any operating surplus to its liquidity reserve. In the event of an unanticipated liquidity need, the Organization also could draw upon $XXX,XXX of available lines of credit. The following reflects the Organizationâ&#x20AC;&#x2122;s financial assets, amounts not available within its 60-day time horizon for managing liquidity, amounts set aside for long-term investing that could be drawn upon, and financial liabilities due within 60 days.

Financial assets Less: Contractual or donor-imposed restrictions making assets unavailable within 60 days Financial assets available within 60 days

$XXX,XXX

Financial liabilities Less: Financial liabilities due within 60 days Net financial assets in excess of financial liabilities, within 60 days.

XXX,XXX (XXX,XXX) $XXX,XXX

(XXX,XXX) XXX,XXX

the journal entry | October 2015

NonProfit how they manage liquidity and to provide quantitative information about financial assets available to meet near-term demands for cash, as of the reporting date. Many respondents questioned the usefulness of such subjective information, since time horizons will vary by entity and quantitative information does not consider available off-balance sheet financing. Some recommended simply requiring a classified balance sheet, consistent with for-profit reporting. Functional Expenses Understanding both the nature of the NFP’s expenses and how they relate to an NFP’s programs and supporting activities is key for donors and other users. Currently, voluntary health and welfare organizations are required to report a separate Statement of Functional Expenses. FASB proposed that all NFP entities be required to present functional expense information, whether directly on the Statement of Activities, in the notes to the financial statements, or in a separate Statement of Functional Expenses.

NFPs would also be required to disclose the specific methods used to allocate costs among program and support functions. This heightens the importance of NFPs formalizing how they measure their cost drivers, such as performing regular time and usage studies. Most respondents generally supported the presentation of functional expenses by all NFPs, although some expressed concern that some of the functions (such as fundraising) would not be applicable to all NFPs. Other Other proposed disclosures include information about self-imposed limits (including the purpose, amounts, and types of board designations and appropriations) and the composition of net assets (such as disaggregating net assets with donor restrictions by those that are subject to perpetual, purpose, or time restrictions).

EXAMPLE PROPOSED FUNCTIONAL EXPENSE ALLOCATION METHOD DISCLOSURE Expenses that are allocated include depreciation and occupancy, which are both allocated on a square footage basis, as well as salaries and benefits, which are allocated based on time and effort studies.

What Now? So, after 20 years, should we brace ourselves for an NFP financial reporting revolution? While changes are sure to come, the widespread opposition FASB’s proposed ASU faces makes it unlikely that the changes will be revolutionary. ■

the journal entry | October 2015

Shalaun T. Howell, CPA is an audit manager specialized in nonprofit organizations at Shaw & Co., P.C. Shalaun holds a Bachelor of Science and Master of Professional Accountancy from the University of Utah and actively serves on the UACPA Nonprofit Committee. She can be reached at shalaun@shaw-cpa.com

Technology Trends in Cyber Security By Alice Tsai, CPA

n a recent opinion, 2,200 Chief Financial Officers (CFOs) cited the top pressure is “keeping pace with changing technology” in their financial operations1.

Premera Blue Cross divulged the social security numbers, bank accounts and medical information of 11million of their subscribers4.

Cyber technology is changing rapidly and continuously to protect both business and information technology (IT) assets and operations. The challenge is to defend against advanced threats and attacks that have grown substantially more sophisticated, threatening and persistent. Alarmingly, attacks can reside within a corporate network, according to Microsoft, for an average of 200 days before detection. The average cost of a data breach to a large company is $3.5 million2.

Traditional hackers are less sophisticated but learn from advanced attackers. These hackers seek numerous easy preys and exploit security weaknesses in the computer network or system in homes, and small and family businesses — that have limited resources or no in-house IT staff. These easy victims, when attacked, are reluctant and/ or embarrassed to alert authorities, and such attacks rarely make into the headlines.

Advanced attackers currently concentrate on specific large lucrative targets, such as governmental agencies, major financial institutions, and insurance companies. For example, the recent data breach at OPM (Office of Personnel Office, US government) — disclosed the identities and exposed detailed security-clearance information of more than 21 million military personnel — affecting or compromising national security3. Another security breach at

The purpose of this article is to provide an overview on the technology trends in cyber security. Cyber security is the application of security measures to ensure integrity, confidentiality, and availability of data, system and network. Any successful or unsuccessful attempt to compromise these goals of security measures can be considered a security threat or attack.

the journal entry | October 2015

Cyber Security Figure 1: For discussion purposes, the technology in cyber security is divided into three types: traditional, intermediate and advanced. These technologies can overlap but are used for different purposes to solve different areas of cyber security problems.

Figure 1 TECHNOLOGY IN CYBER SECURITY

Traditional Technology in Cyber Security

To solve cyber security problems, IT companies, especially those with forensics expertise, can offer cyber security services either on premises physically or in the cloud virtually. These IT companies can help to protect their clients’ IT assets, including 1) networks 2) specific hosts (or other servers) 3) network endpoints (including Internet-capable hardware - such as desktop computers, laptops, tablets, smart phones, point-of-sale terminals, and printers), and 4) software applications.

Intermediate Technology in Cyber Security

On Premises * Cloud Network * Host * Endpoint * Application

can disrupt operations and/ or gain unauthorized access to gather sensitive data. • Antivirus software – prevents replication and spreading of viruses.

Figure 2 shows how effective the traditional, intermediate and advanced technologies are to defend against the traditional and advanced threats and/ or attacks.

• Encryption of data – protects data in use, in transit, and in storage.

Traditional Technology

• Password and username – Traditional technology in cyber secuprevent unauthorized access rity includes mostly one-level perimand improper use. eter defense to protect data (in process, in transit, and in storage) and applica- To summarize, the traditional technology is not effective to defend against tions in the networks or computers advanced cyber threats and attacks using, for example: which are evasive and dynamic. Secondly, the port-based firewall as a • Firewall – as a first line of defense, port-based firewalls first-line defense, for example, is not efuse ports, rules/protocols, and fective to identify and control malware baselines to protect against ex- and other evasive applications that ternal attacks (such as misuse bounce from port to port in search for of rules/protocols and deviaan open connection to the network5. tions from baselines). • Anti-malware software blocks malware software containing malicious codes that 22

Advanced Technology in Cyber Security

“activity,” “data,” and “event” were used often interchangeably. Intermediate technology in cyber security relies on Intrusion Detection Systems (IDSs) to examine three types of data or activities: Network traffic data, system-level test data, and system status files6. These IDSs rely on hardware and/or software applications to monitor and analyze network or computer system activities in order to detect attacks. For intrusion detections, these IDSs use the following types of techniques: Signature-based detection, anomaly-based detection, and a hybrid combination of both.

Signature-based or misuse-based detection. In signature-based detection, this IDS monitors and analyzes network activities in order to find a match between these activities and known attacks (with attack patterns or attack Thousands of known atIntermediate Technology signatures). tack signatures (in binary numbers) are NOTE: In some published cyber security pre-defined and stored in advance in a large signature database of the antiarticles, several words such as “traffic,”

the journal entry | October 2015

Cyber Security intrusion program in the IDS. Any matched pattern indicates a suspicious attack or a potential misuse (violation) of system policy; and the IDS generates an automatic alert to humans (or IT security team) to investigate and/or take corrective action. The signature-based system can detect known attacks reliably with low false positives, is easy to implement, and most widely used in practice. This signature-based system is passive, needs frequent updates of the signature database for newly discovered attack signatures, and cannot detect variations of known attacks, unknown attacks, and new types of attacks. Anomaly-based detection. The anomaly-based system operates in two phases: A training phase and a testing phase7. In the first or training phase, both the humans and this IDS define the “normal” network activities as a “learned” baseline for the specific network — such as traffic volume, bandwidth usage, protocol usage, ports, devices, and size of data packets. In the second or testing phase, the IDS compares a new network activity to the learned normal network activities (learned baseline) in order to detect any deviation from the learned baseline. The IDS interprets any deviation as an anomaly (possible intrusion or attack) and triggers an automatic alert to humans (or IT security team) to investigate and/or take corrective action. The anomaly-based system is effective for known attacks and can find unknown and zero-day attacks for humans to investigate. (A zero-day attack happens due to the time lag between the time an attack occurs and the delay when security patches

ers lurk hidden and often undetected until they attack and leave behind few traces after they attack.

are available to combat the attack.) A major technological issue is the high rate of false alarms, particularly false positives — due to inability to differentiate actual attacks from chance anomalies. Other concerns include how to define and quantify what are “normal” activities. To summarize, the intermediate technology is partially effective to combat advanced cyber threats and attacks; the intrusion detection systems (IDSs) can automatically “detect and alert humans” – that is, detect attacks but need to alert humans to investigate and/ or take corrective action on potential attacks.

Advanced Technology Figure 2. The advanced technology in cyber security has evolved from both the traditional technology and the intermediate technology (using IDSs), which are not effective or partially effective against Advanced Persistent Threats (APTs). Orchestrating these APTs, sophisticated remote attack-

To monitor and analyze activities both inside and outside the network, the Intrusion Detection-Prevention System (IDPS) has improved the IDS’ capability of using the signature-based detection and the anomaly-based detection. In addition, the IDPS focuses more on the symptoms (behaviors) of a threat or attack, and less on the method of an attack8. For example, the IDPS uses analytics, such as statistical modeling and machine learning, to automatically identify new threats. The IDPS defines the profile of a normal activity behavior, and then machine “reasons” and “learns” from experience (from what the IDPS sees) to update this profile to become a “learned” profile of normal activity behavior. Using advanced algorithms, behavioral analysis and anomaly-based detection, the IDPS looks for abnormal behavior that does not resemble the normal activity behavior to verify the symptoms of a threat or attack, such as symptoms of a

Figure 2 Technology Against Cyber Attacks and Threats

Traditional Cyber Attacks Advanced Cyber Threats & Attacks

Traditional Technology in Cyber Security

Intermediate Technology in Cyber Security (Intrusion Detection)

Advanced Technology in Cyber Security (Intrusion Detection Prevention)

Effective

Effective but expensive & not practical

Not Effective

Partially Effective

More effective (Developing)

the journal entry | October 2015

malware infection in the network endpoints. The IDPS can adapt and evolve (from what IDPS learned) to search for new and changing threats over time. Unlike IDS, the IDPS in prevention can rely on more advanced analytics online in real time to help disrupt the “lifecycle” of an advanced attack that ranges from unknown threats to the exfiltration of confidential data during outgoing transmission. For example, the IDPS can automatically [9]: 1. “Block and prevent” in real-time — that is block/stop unknown and unforeseen multi-faceted threats and attacks as they emerge, and thus prevent these threats and attacks from penetrating corporate networks. 2. “Detect and alert” in real-time unknown and undetected threats or attacks already in corporate network as abnormal activities; then enable blocking of suspicious activities. 3. “Respond 24/7 with actions” to investigate a security breach and take both preventive and corrective actions by the IDPS and/or with minimum human intervention — such as stop, neutralize, or mitigate attacks in progress, and more importantly disrupt and/or block future unknown, mutated, and zero-day attacks in real time. To summarize, the advanced technology is developing and becoming more effective to prevent advanced cyber threats and attacks. Before, during, and after an attack, the IDPS can rely on multi-disciplined analytics to compute extensively, collect and correlate in real-time massive, complex and ever-changing data (“big data,” including securityrelated data). Based on the correlated data and analytics, the IDPS can also conduct online in real-time “forensic” analysis of cyber threats or attacks in progress. To stay ahead of threats proactively, the IDPS needs to integrate the next-generation (more advanced) intrusion prevention on the network, and sophisticated malware protection on the network endpoints. Network-based IDPS Specific Samples of Security Functions in Depth The IDPS consists of four types. This article focuses only on the network-based IDPS, which monitors network activities and analyzes different levels of protocols to identify 24

the journal entry | October 2015

suspicious activity. According to the National Institute of Standards and Technology (NIST) — With a few technological limitations, the network-based IDPS performs four specific and complex security functions10:

The advanced technology is developing and becoming more effective to prevent advanced cyber threats and attacks. Information Collection. The IDPS uses functional hardware and/or software including sensors (similar to security cameras”) to identify: Hosts (host servers) on the network by their numerical Internet Protocol (IP) addresses; the operating systems and applications and their respective versions use;effective and network way traffic to activities related A that Funhosts and to the configuration of network devices and hosts. The increase your knowledge collected information can help to identify, for example, new hosts, potential vulnerable hosts and applications, and unauthorized uses of the applications, and unapproved By Sandra Wiley changes to the configuration of the network. Logging. The IDPS can log, extensively, data related to network activities that are already detected. This data and data fields (such as the activity’s timestamp of date and time, and three levels or types of protocols) can help support the validity of automatic alerts and the investigations. Detection. The IDPS uses extensively detection capabilities (such as in the signature-based and the anomaly-based detections) in order to analyze in depth protocols at different levels (such as network, transport and application). For example, the IDPS uses sensors to help detect attacks at these levels: 1) Network-level attacks can entail illegal LP header data, and spoofed (forged) IP addresses) 2) Transport-level attacks can involve abnormal fragmented data packets and probing scan of ports 3) Application-level attacks can include guessing of passwords, a chain or string of attacks, and malware installation and communication; 4) Unexpected application attacks can consist of host servers running unauthorized applications and unexpected changes in open ports on host servers, and 5) Security policy violations can include misuse of application protocols and use of unauthorized or risky web sites. Prevention. The different types of IDPS sensors (both hard-

Cyber Security ware and/or software placed at various points in a network) can “signal” other network security devices to “reconfigure” (or reprogram) themselves to respond to different prevention functions. For instance: 1) Without regard to ports, new or “next-generation” firewalls (which can identify and analyze unknown traffic activities) can be reconfigured to drop or block suspicious network activities from a risky IP address outside the network. 2) Router can be reconfigured to re-route certain type of suspicious activity to elsewhere, such as to an infected or compromised internal host server that is quarantined. 3) Data sanitization includes “masking data” (that mask a data field with a character, such as “x”) and “shuffling records” (that use a sophisticated algorithm to shuffle columns of numeric data).

Conclusions Currently, a number of IT companies (especially those with forensic expertise) can offer cyber securities services that can help the day-to-day operations of the client-organizations. These client-organizations need to integrate strategies and tactics to detect, prevent, and respond to advanced threats or attacks — especially the chains of advanced, multi-faceted threats and attacks across their IT assets — such as across networks, host servers, network endpoints, and software applications. Strategies and tactics in cyber security require a dedicated effort to coordinate many areas, including man, hardware-software, and data. To use the Intrusion Detection-Prevention System (IDPS) and protect IT assets and sensitive data effectively, both the IT personnel teams and the IT users need training and diligent observance of established IT controls, business and cyber-security policies and procedures. As the technology in cyber security is fast-paced and continuously evolving, we CPAs are challenged to be informed, keep pace, and stay involved proactively. ■

References: 1) Drew, Jeff, Sr. Editor (jdrew@aicpa.org), “7 ways CFOs can keep up with rapid changes in technology,” Journal of Accountancy, 5-1-2015. 2) http://www.nationaljournal.com/tech/hack-opm-officepersonnel-management-cyber-million-20150709 3) http://www.microsoft.com/en-us/server-cloud/products/ advanced-threat-analytics/ 4) http://www.bloomberg.com/graphics/2014-data-breaches/ 5) Miller, Lawrence, “Why Traditional Security Solutions Fail to Control APTs,” Cybersecurity for Dummies, John Wiley & Sons, Inc., Palo Alto Networks Edition, Hoboken, New Jersey, Chapter 3, p.26. 6) Aydin, M.A., Zaim, A. H, and G. Ceylan, “A hybrid detection system design for computer network security,” Computers and Electrical Engineering, p. 35, 2009, p. 518. 7) Patcha, A. and Park, J.- M, ,”An overview of anomaly detection techniques: Existing solutions and latest technological trends,” Computer Networks 51, p. 3452 8) www.cisco.com/gp/cognitive “At a Glance: “Cisco Cognitive Threat Analytics’ 9) IBM, “IBM Threat Protection System,” IBM Security, Somers, NY 10589 June 2015, p.3. 10) Scarfone, Karen and Mell, Peter, National Institute of Standards and Technology (NIST), “Network-based IDPS,” Guide to Intrusion Detection and Prevention Systems (IDPS), (Special Publication 800-94), p. 4-7 to 4-11 and 4-13.

Alice Tsai, CPA, MBA (DePaul University, Chicago) is a frequent contributor to the The Journal Entry. She audited for the U.S. Government (SEC and GAO), for-profit and non-profit companies and taught as an adjunct faculty in accounting and auditing.

the journal entry | October 2015

Tax Benefits for 2015 The 2015 Tax Deadline is just around the corner for Utah Educational Savings Plan college savers and gift givers

ear-end 2015 is almost here. Do you have a client who owns a Utah Educational Savings Plan (UESP) college savings account? Or do you have a client who should start saving for the future higher education costs of a child through a qualified Section 529 college savings plan like UESP? If you do, tell your client about two important UESP deadlines. By contributing to his or her existing UESP account or by opening a new account and contributing to it before

the deadlines expire, your client may qualify for a Utah state income tax credit for the 2015 tax year. Both deadlines occur on Thursday, December 31, although at different times of the day. Contributions may be made online or manually by mail or hand-delivery. Although no minimum contribution is required to open or maintain a UESP account, a contribution is necessary to qualify for the tax credit. Transactions cannot be made by phone.

UESP 2015 Year-End Deadlines Transaction

Contributions New accounts Incoming rollover from another 529 plan

Online Deadline Must be received before 11:59 p.m., Mountain Time Thursday, December 31, 2015 Thursday, December 31, 2015 N/A

For 2015, single Utah taxpayers and Utah trusts can claim a 5% Utah state income tax credit on contributions to their UESP accounts up to $1,900 per qualified beneficiary, for a maximum tax credit of $95. Married couples filing jointly can claim the 5% tax credit on contributions up to $3,800 per qualified beneficiary, for a maximum tax credit of $190. (A qualified beneficiary is someone who was age 18 or younger when the account was opened.) “It is important to observe these deadlines,” said Lynne Ward, executive director of UESP, Utah’s official and only 529 college savings plan.

the journal entry | October 2015

Manual Deadline Must be received before 5:00 p.m., Mountain Time Thursday, December 31, 2015 Thursday, December 31, 2015 Thursday, December 31, 2015

“A contribution to a new or existing UESP account received after the cutoff times will not count as a 2015 contribution. It will be recorded as a 2016 tax-year contribution,” Ward said. As a 529 plan, UESP is designed to provide account owners and beneficiaries with federal and Utah tax benefits. Earnings grow deferred from federal and Utah state income taxes. Withdrawals are exempt from federal and Utah state income taxes when used for qualified higher education expenses of the account beneficiary at any eligible college, technical school or university in the United States or abroad that participates in federal financial aid programs for stu-

UESP Tax Benefits for 2015 dents. Qualified expenses include tuition and fees, books, supplies, required equipment, and certain room-and-board expenses. A gift tax exclusion is available to UESP account owners. The Internal Revenue Service rules governing 529 plans allow the account owner (or another person) to make a gift of $70,000 ($140,000, if married and filing jointly) to a UESP account in one year without being subject to the federal gift tax. The gift must be reported as a series of five equal annual gifts of $14,000 ($28,000, if filing jointly) on IRS Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. Because a UESP account may have only one investment option and one designated beneficiary, an account owner may own several accounts with different investment options for the same beneficiary. In 2015, the maximum aggregate account balance for all UESP accounts is $416,000 per beneficiary. If the aggregate balance of a UESP account or accounts for the same beneficiary reaches or exceeds $416,000, UESP will return any excess contributions. For more information, download the UESP Program Description at uesp.org, call UESP at 888.529.1886, or email advisorinfo@uesp.org. Important Legal Notice Read the Program Description for more information and consider all investment objectives, risks, charges, and expenses before investing. Call 800.418.2551 for a copy of the Program Description or visit uesp.org. Investments in UESP are not guaranteed by UESP, the Utah State Board of Regents, the Utah Higher Education Assistance Authority (UHEAA) or any other state or federal agency. However, Federal Deposit Insurance Corporation (FDIC) insurance is provided for the FDIC-insured accounts. Please read the Program Description to learn about the FDIC-insured accounts. Your investment could lose value.

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Non-Utah taxpayers and residents: You should determine whether the state in which you or your beneficiary pays taxes or lives offers a 529 plan that provides state tax or other benefits not otherwise available to you by investing in UESP. You should consider such state tax treatment and benefits, if any, before investing in UESP. â&#x2013;

the journal entry | October 2015

Software Developers and the Research & Development Tax Credit By Andrew Lane

oftware developers are strong candidates for both the Federal and Utah’s state Research & Development tax credits. Because Utah follows the same rules as the Federal tax credit for what qualifies, many of the standard activities involved in software development potentially qualify for both of the tax credits, which can translate into substantial tax savings.

trial-and-error methodology. In looking at software developers, it is clear that many of the standard processes they are engaged in can be very R&D tax credit friendly. However, within the software development umbrella there are several different types of software development activities, each with their own nuances related to the credit:

This information is intended to assist in identifying po1. Proprietary Software Product Development tentially qualifying activities and further explain aspects that need to be considered when quantifying them for the Companies, such as Microsoft or Oracle, which develop research tax credit. First and foremost, the basic requirement their own proprietary products that are held for sale or to qualify for the credits is that a project must meet all elelease by the taxpayer are the most straight-forward canments of the “four-part” test to be eligible: didates for qualified software development, as it relates to the research tax credit. The basic requirement is that 1. Permitted Purpose: The project must be intended to be the qualified research activities meet the “our-part test useful in the development of a new or improved business requirements. component for the taxpayer. A business component may include a product, process, technique, formula, invention, or 2. Custom Software Development software. 2. Technological in Nature: The project must be undertaken for the purpose of discovering information that is technical in nature. Thus, the activity must rely on the principles of physical sciences such as engineering, biology, or computer science. 3. Elimination of Uncertainty: The project must be intended to eliminate uncertainty related to the development or improvement of a business component. Uncertainty can relate to the component’s capability, development method, or optimal design. 4. Process of Experimentation: The project must evaluate one or more alternative solutions through the development, refinement, and testing of different options. This typically involves the use of simulation, modeling or a systematic 28

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Custom software development (i.e. software that is developed under contract as a service for a third-party) can potentially qualify for the credit, assuming the four-part test is again met for the research activities. However, an important consideration for custom software development to qualify is whether the contract the work is performed under passes the exclusion for “funded research” found in IRC §41(d)(4)(H). For the contract to be eligible, two conditions must both be met. First, the payments must be contingent on the development activities being successful. Second, the developer must retain rights to the intellectual property that is developed 3. Mobile Apps A relatively new trend in the software development mar-

Research & Development Tax Credit ket is the emergence and rise of developers focusing on applications for mobile devices (such as phones, tablets, etc.). As a large percentage of these mobile app developers are early stage companies, the potentially limiting factor here is their profitability and ability to benefit from the credit by reducing taxes due. 4. Web Developers (Website Development) In general, standard web development (i.e. building a website) is not likely to qualify for the research tax credit. A significant portion of the work is generally related to the aesthetic design, which is specifically excluded from qualified activities, and HTML coding is not likely to rise to the level of technical uncertainty and experimentation required to qualify. However, there are research activities performed by web developers that may qualify. Specifically, the back-end development of new software applications and platforms such as CRM applications and ecommerce engines utilizing source code developed in a programming language such as C++ or Java, which ties in to a web-based front end may qualify. 5. Internal Use Software

ment activities are intended to result in a new or improved product, internal-use software, or something else, it is clearly an area of tax savings that should be fully explored. A significant portion of the activities performed by a company’s employees such as the software programmers, software architects, software analysts, QA testers, and other supporting team members may qualify. Because the research credit is primarily a wage based credit, employee involvement could translate into meaningful tax savings. Some general examples of software development activities that may qualify for the credit include: • Development of specifications and requirements • Concept development and ideation • Alpha and beta prototype development and testing • Design of software architectures • Database design • Unit, user, and regression testing • Developing test cases for functionality and performance analysis

Software that is developed for internal use (meaning softCredit for Research Activities in Utah (Code 12) ware that is not intended to be sold as a product) is generally excluded from qualified research activities under IRC The state of Utah has a tax credit that is available for qualify§41(d)(4)(E). ing research and development expenses that can be used to offset state tax liability. The credit is available to any comAs with anything, there are exceptions for when internal pany engaged in qualified research as described above. The use software development can still qualify for the research definition of the qualifying expenses for wages, contract recredit. If the software satisfies the following three additional search, and supplies are the same as under the federal credit. tests, then it could still be eligible: (1) “The Innovation There are two variations of the state credit. Option one can Test” – The software must be intended to be unique or novel be used in the current year or carried forward to subsequent and to differ in a significant and inventive way from prior years and is equal to 5% of the qualifying expenses in the software. (2) “The Economic Risk Test” — The taxpayer state that exceed a base amount, or 5% of payments made to must commit substantial resources and there is substantial a qualified organization for basic research that exceed a base uncertainty whether the investment will be recovered within amount. Option 2 can only be used in the current year and is a reasonable time. (3) “The Commercial Availability Test” equal to 7.5% of qualified research expenses for that year. — No commercially available software could be used for the intended purpose without modifications that meet the first Find additional information at www.tri-merit.net. ■ two requirements. Clearly, many of the fundamental areas related to software development can provide meaningful opportunities to explore R&D tax credits. Whether the software develop-

Andrew is a Partner based out of Tri-Merit's Detroit, Michigan Office where he is responsible for managing the execurtion of their R&D tax credit studies. the journal entry | October 2015

Closing the Gaap — Women in Accounting

Ariane Gibson, CPA

Interview By Brigette Hammond, CPA

Ariane Gibson, CPA is an Audit Senior in the Office of the Utah State Auditor. Her degrees include both a Bachelor of Science and a Master of Accounting from the University of Utah. Ariane talks about why she became a CPA and her love of traveling.

time with my husband and daughter, planning trips and traveling, watching TV series and movies, sleeping, and taking care of my yard and garden. My biggest travel goals include visiting all 50 states by age 50, and someday traveling to New Zealand.

What led you to a career as a CPA?

What would you be doing if you were not a CPA?

In 8th grade we were required to sit down with a guidance counselor and discuss the types of courses we were going to take throughout high school to prepare us for college. I enjoyed math and determined that I wanted to go into accounting. I took some courses in high school and got a bookkeeping job that I really enjoyed. When I got to the University of Utah, my involvement with Beta Alpha Psi solidified my passion for accounting and my drive to get my CPA license.

What do you enjoy outside of work? My favorite things to do outside work include spending

the journal entry | July October 2015 2015

Probably an Event or Wedding Planner. I have an eye for detail and love planning well-organized activities and ensuring that everyone has a good time without having to worry about the “behind-the-scenes” stuff going wrong. One of my biggest pet peeves is disorganization at the food table — for example, salad dressing before the salad.

What advice do you live by? Never let anyone or anything get in the way of your goals.

Closing the GAAP

What are some highlights in your life? Some of the biggest highlights and most rewarding things in my life include becoming a mother and getting my CPA license.

entering the profession and find ways to make the path easier for them. I believe that, as women, we bring a unique passion for what we do and that the profession will be stronger as we have more women entering and staying in it.

What do you like most about your career and what do you like least? I love the variety and challenge of our work as CPAs. Working on government audits, I find the public impact our work can sometimes have to be rewarding. I also both love and hate that no matter how much I know at any one point in time, there is always still plenty to learn.

What advice would you give other female professionals?

Brigette Hammond, CPA, is a tax senior associate at KPMG LLP. She graduated from the MAcc program at the University of Utah in 2010. She currently serves as the Secretary for the Utah Affiliate of the AWSCPA. Brigette can be reached at bmhammond@kpmg. com.

As women, we need to encourage the women currently

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Supporting Financial Literacy and the UACPA PAC How the UACPA brings CPAs together to give back

ACPA members are making a difference through volunteer work, but we don't always talk about the imporant contributions that are made through the UACPA PAC and the UACPA Foundation. Donations help the CPAs through the UACPA Foundation support the financial literacy programs created to educate the public and the PAC helps CPAs have a strong voice on the Hill. In this article, David Hoopes, CPA, talks about teaching financial literacy at the Utah State Prison and Craig Peterson, the UACPA's lobbyist, shares some important points about donating to the PAC. If you are interested in donating, please see the form on page 34 or visit www.uacpa. org/donate.

Currency and Corrections Teaching financial literacy to inmates at the Utah state correctional facility David R. Hoopes, CPA I thoroughly enjoy my public accounting career. Having said that, I sometimes think I may have missed my “calling in life” — that of being a teacher. People close to me who know of my teaching itch have reminded me that my public accounting career has given me many opportunities to make a positive impression on others through on-the-job supervision, mentoring, and teaching a handful of CPE courses. While I hope this is true, for me it is just not the same as having a somewhat regular teaching opportunity. Two years ago, Susan Speirs, CPA and CEO of the UACPA, visited our local Salt Lake City CBIZ MHM, LLC

the journal entry | October 2015

office to give us a presentation on giving back to the community. She spoke about the needs for us to make financial donations to the Utah CPA Foundation and for us to volunteer our time to worthy causes. Susan presented great examples and opportunities, including the need for an instructor of a financial literacy course. This course is funded and taught through the UACPA to prisoners at the Utah State Correctional Facility in Draper. I was excited to learn that this opportunity was available to me and that I could volunteer my time to teach such an important and relevant topic to incarcerated women at this facility. Needless to say, I jumped at the opportunity!

Contributing to the UACPA Each quarter, for one hour on four consecutive Tuesday evenings, fellow UACPA member Melissa Fjelstrom, CPA, and I team teach 12 to 15 women the basics of financial literacy, including topics on proper goal setting, creation of spending plans, debt management and elimination strategies, and the importance of paying themselves first. Many of these women are approaching a release date and are somewhat overwhelmed with upcoming unknowns, including financial independence. We give the women calculators and course workbooks that include our weekly topics and additional supporting details about financial matters. The books are relevant and are a great reference tool for these women while they are in prison and after they are released. These books contain many financial lifeskills instructions, templates and insights. Throughout the course sessions, the women are very attentive and participative. They take notes and are truly appreciative of the lessons. While Melissa and I have this opportunity to teach these women, others are volunteering their time to teach financial literacy on the men’s side of the correctional facility. I was also pleased to find out recently that the UACPA is now offering members in the Cedar City and St. George chapters the opportunity to teach this course as well. I am so grateful to the UACPA and its Utah CPA Foundation for this opportunity to teach this valuable course. Donations to the UACPA’s Utah CPA Foundation make this course and other meaningful programs possible. As we approach the holiday season, I hope we consider and remember the tangible benefits our donations provide to many individuals in our communities. I see significant benefits from just one small portion of your donations and know other UACPA programs are benefiting equally. Through a great opportunity to serve, made possible by the UACPA, I am not missing my “calling in life!” ■ David R. Hoopes, CPA is the Attest Practice Leader and a Shareholder and Managing Director in Salt Lake City's CBIZ MHM, LLC office. In addition to his work responsibilities, he enjoys spending time with his family, sports, and giving back to the community.

Influence Change with the UACPA PAC The UACPA serves as a voice for members Craig Peterson

UACPA members can make a difference through the PAC. PAC participation helps the UACPA to become the "go to" resource for input on tax and tax consultancy issues. It's important to know who is favorable to our issues and who isn’t. Even though we have important members of the legislature who are CPAs, others may be equally inclined to recognize the importance of licensed CPAs. Here are some additional thoughts for consideration for the upcoming session: The re-introduction of last year’s HB235 could significantly change the educational and career path that professionals are required to follow to obtain state licensure. Although the sponsor was a freshman from Provo, the effort now has received further endorsement from the American Legislative Exchange Council (ALEC) of which most members of Republican leadership have active participation. The super PAC, Americans for Prosperity has made this their focal issue for the upcoming legislative sessions throughout the Country. Protection of the CPA brand is critical. PAC fund contributions can assist CPA training in political activities as well as funding candidates for elected offices in Utah. Recruiting political candidates with knowledge and support of our issues is much better than informing existing office holders with the hope they will see things our way. PAC funding offers improved access to elected officials who make and amend the laws and rules that CPAs must follow. This helps in becoming a source of information before laws are proposed rather than defending or trying to defeat legislative or executive branch actions. Having a healthy PAC allows members and UACPA leadership to attend and participate in fundraising activities with our elected officials. These both small and larger events let us meet with elected officials, giving us an opportunity to express concerns or offer support while establishing personal relationships. They also let us get to know our own elected representatives while they get to know us. ■ Craig Peterson is the lobbyist for the UACPA the journal entry | October 2015

Board Bullets

i want to help I would like to donate to: f UACPA PAC f Financial Literacy I am enclosing:

f $25 f $50 f$100 f Other Payment Information f Visa f MasterCard f Discovercard f American Express f Check Enclosed Card # CVV Number Expiration Date Name on Card

Name Firm/Company Address City/State/Zip Phone Email Please return form to Utah Assocation of CPAs, 136 S. Main Street, Suite 510, Salt Lake City, UT 84101 To make a gift online, go to uacpa.org/donate 34

the journal entry | October 2015

Board Bullets

News from the UACPA Board

Here is a glance at what has been happening at the Utah Association of CPAs: • Cedar City had its inaugural meeting on September 10 where they became the "Cedar Breaks" Chapter with Michael Beach serving as President • The Nominations Committee will be meeting to create a slate for EB, Leadership Council and committee positions to be filled. Communications have been sent out to members for nominations as well. • The UACPA Ethics Committee will be participating in a meeting to discuss the proposed ethics rule change that our membership has approved. • Legislative update: We have opened a bill file with regards to the new filing deadlines passed by the IRS. Conversation around the legalization of marijuana and Medicaid expansion was also discussed as we are hearing of possibilities of raising licensure fees to help cover the cost. Sales tax issues are also discussed as a possibility. • CPA exam change issues: We will be visiting with universities to educate professors about proposed changes that AICPA and NASBA have been involved in. • UVU has submitted paperwork to do a MAcc. The UACPA sent a letter in favor of the move as most universities are full and are turning students away. Also discussed were the needs of the profession on a statewide basis. Employers in industry and public practice are having a hard time finding entry level and 3-10 year employees.

Meet the Executive Board

Q: What efforts do you have in place to maintain work-life balance? Jonyce Bullock, CPA President I have moved as many appointments and meetings as possible to after 9 a.m. so I am home with my kids in the mornings. I also schedule time on my calendar to take time off and enjoy my hobbies.

Hollie Andrus, CPA President-Elect I have learned that a true work-life balance needs effective communication. I make it a point to let co-workers know my schedule and, most importantly, to help them feel comfortable texting me when I'm out. On the "life" side, we discuss our family members' schedules at the beginning of the week and make sure events are on our family calendar — if it's not on the calendar, it probably won't happen!

Sherie Charlesworth, CPA Secretary

Dan Griffiths, CPA AICPA Council Representative

Working at the school district provides for more than average days off such as Fall Break, Christmas Break and Spring Break along with plenty of regular observed holidays.

For me it’s less about balance and more about ensuring that my most important priorities are reflected in the way that I spend my time. This means ensuring that family time makes it into my calendar alongside client appointments. It means shutting down my phone at dinnertime. Be present, or be absent, don’t be both.

Josh Turnbow, CPA ProNet Work life balance requires as much focus as does running a successful business. It requires dedicated and focused time set apart from everything else that is happening.

Susan Speirs, CPA CEO Having hobbies that have nothing to do with the profession has been very helpful for me. I’ve always enjoyed working with my hands whether it’s been quilting, gardening or remodeling projects. Maintaining a healthy diet and getting sunshine everyday is important as well.

Larry Deppe, CPA Member at Large I make great effort to set aside time to be with my wife and family. Sunday dinners represent an important part of our lives as we gather together to update each other on the happenings in our lives. We put aside (to the extent possible) jobs and frustrations and just enjoy each other's company.

Not pictured: Gavin Hutchinson, Vice President; Kyle Pexton, Treasurer; Brett Hugie, Member at Large, Paul Skeen, Immediate Past President

the journal entry | October 2015

Meet the UACPA Staff

Q: As a child, what did you want to be when you grew up? April Deneault CPE Manager

Amy Spencer Marketing & Communications Manager

I wanted to be a Veterinarian. I loved all things animals and still do. Once I realized that I don’t have the stomach for blood and that I would have to see hurt animals and possibly put them to sleep, I changed my mind.

It could have been a "Jack of all trades" because I don't remember any one specific thing I wanted to be. I was always pursuing things in art, music, theater and dancing, plus I loved animals. It's a miracle I didn't run away to join the circus.

Braden Thompson Membership Development Coordinator

You are invited

You know when you watch a car commercial and the car is speeding around corners and doing all sorts of cool stuff? As a kid I noticed the fine print at the bottom of the screen that says “professional driver on closed course.” I wanted to be a professional driver on a closed course.

Tom Horn Financial Director I wanted to be a fighter pilot and work my way into NASA as an Astronaut. Early on I realized that wasn’t going to happen due to poor eye sight. While in the military I did try to go to Chief Warrant Officers School to fly helicopters but again the eye sight was a problem.

UACPA OPEN HOUSE Wednesday, December 9, 2015

4-7 p.m.

Come see the new UACPA offices and celebrate the holiday season with food, networking and festivities. Please RSVP online by visiting www.uacpa.org/openhouse

136 S. Main St., Suite 510

the journal entry | October 2015

MEet a uacpa member

Five Minutes with Tom Horn, CPA Tom Horn, CPA is semi-retired and has joined the UACPA as the Finance Director. Born in Greenville, Ohio, Horn spent three years in the U.S. Army and graduated in accounting from Bowling Green State University. He met his wife, Marilyn — an Ogden native — at Waikiki Beach in Hawaii while in the military. They have been married for 47 years and have two sons. "I give a lot of credit to my wife for my success by standing by me through the last years of college and the years I have been a sole-practitioner CPA." What led you to become a CPA? My father encouraged me to take bookkeeping my senior year of high school. After trying to major in engineering, I switched to accounting. Accounting seemed to come natural for me. What have been your proudest moments as a CPA? In 2003, a client and myself became owners of a recovery audit firm which performed recovery of overpayments, duplicate payments and

improper payments our client’s had made to their vendors and contractors. Our clients were mainly Federal and State governments. My proudest moment was when we were awarded contracts to perform recovery audits for the U.S. Department of Transportation, U.S. Department of Homeland Security and NASA. After two years of hard work on the NASA audit, we uncovered more than $80 million in overpayments and were only 25% done with the audit. Unfortunately NASA became extremely uncomfortable with our findings resulting in an ongoing 8 year legal battle with NASA to pay us for our work. We felt strongly about the work and the obligation to all of our auditors that worked on the project that we could not let NASA ignore our audit findings. We received a letter from NASA praising the excellent work and professionalism of staff, but in the end they did not want the embarrassment of the findings. We are now waiting on the Judge in U.S. Federal Claims Court to make her final ruling in the case.

What would suprise people to know about you? I did a technical climb of the Grand Teton and met former Salt Lake City Mayor Ted Wilson on top. Also, I have two golf hole-in-ones. What would you be doing if you were not a CPA? Who knows, maybe a venture capitalist or a cab driver! I’ve always jokingly said sometimes I wish I was a food vendor on Waikiki Beach. What do you like to do ouside of work? I love to play golf, ski, hike the beautiful areas of Utah and family vacations when everyone can get together. What advice do you live by? I try not to dwell on the past but look to how I can do better in the future. It’s just a matter of learning from past mistakes which we all have. For me, spending too much time dwelling on past mistakes is detrimental to living your life in the future. And, of course, as Yogi Berra said, “when you come to the fork in the road, take it”. ■

the journal entry | October 2015

2015 Awards Honoring outstanding CPAs, 100% member firms and newly licensed CPAs

he Annual Inauguration & Awards Banquet, sponsored by WSRP, was held on the evening of Friday, Sept. 25. With "American Ninja Warrior" competitor Michael Stanger and his wife Enedina speaking to the room full of newly licensed CPAs and seasoned professionals, the event celebrated the hard work that brought these individuals together. The 2015 award recipients, 100% member firms and newly licensed CPAs honored at the event are as follows:

Distinguished Service Kent Thomas, CPA

ent Thomas is the founder of Advanced CFO Solutions. In that role, he served as the outsourced CFO of more than 80 different businesses and he currently serves as the acting CFO of three separate companies. The past president of the UACPA, currently serves as a member of the Board of Directors of RedSky Solutions, Stokes Family Properties and the Mountain West Capital Network. He was a founding member of the Olympus Angel Investors and is active in the Utah entrepreneurial community where he advises companies, associations, and educational institutions and is a frequent speaker on finance, accounting and entrepreneurship.

the journal entry | October 2015

Outstanding CPA in Public Practice Rod Savage, CPA

Rodney F. Savage has operated a local accounting firm for 42 years. He opened the St. George office of the firm now known as Savage Esplin & Radmall, PC. In addition to teaching for Utah State University and the AICPA, Savage has held numerous professional positions in the accounting community as well as in St. George. He has been honored with the AICPA Key Award as an Outstanding Accounting Graduate and received the Distinguished Citizen Award at the 87th Annual Commencement Exercises for Dixie State University.

Outstanding CPA in Business & Management Sarah Dansie, CPA

Sarah Dansie serves as CFO for a related group of stone masonry companies (RJ Masonry, Mountain Valley Stone and Delta Stone Products) that together represent one of the largest private employers in Wasatch County. Dansie has served as President of the UACPA's Mountain Chapter. She leads several education and benefit programs for employees and their families and has designed a Financial Literacy series for employees. Dansie has led the accounting department at her company to sponsors a quarterly Lunch and Learn lecture series.

Outstanding Leadership Council Member Jerry Selbo, CPA

Jerry Selbo was born and raised in Spokane, WA. He earned his bachelor's from Eastern Washington University and became a licensed CPA. He had his own practice and worked as a controller in a medium-sized law firm before moving to Salt Lake City in 2003. He has been with Smith Powell and Company since 2004. Selbo has served as the President of the UACPA's Downtown Chapter and is currently on the Stategic Planning Committee.

Outstanding Educator Ryan Pace

Weber State University professor Ryan H. Pace teaches graduate and undergraduate courses in taxation and business law. Prior to his tenure at Weber State , he practiced business law and tax law at large law firms in Arizona and Utah. Pace was instrumental in creating the Master of Taxation program at Weber State and is the author of a number of academic and practitioner articles that appear in peer-reviewed journals. He has published two undergraduate textbooks and has participated in many professional continuing education courses and academic conferences.

Rising Star Matt Klein, CPA

Matt Klein is the International Controller and Finance Senior Manager at Lifetime Products. He earned his bachelor's and master's degrees in accounting from the University of Utah, where he has also taught accounting classes. He has served on the UACPA's ProNet Council as Chair, helping with the first CPA Inauguration and creating a networking event that brings together young lawyers, accountants and finance professionals. He currently serves on the UACPA's BAM Council and is a board member and audit committee chair for Project Reality, a non-profit drug rehab facility.

Women to Watch: Emerging Leader Shalaun Howell, CPA

Shalaun T. Howell is a manager at Shaw & Co., P.C. specializing in assurance and tax services for nonprofit organizations. She graduated from the University of Utah with a Bachelor of Accounting (Summa cum laude) and a Master of Professional Accountancy. She has served as a leader on the UACPA's Nonprofit Committee for the past three years and has actively participated in recent state policy affecting nonprofits in Utah.

Women to Watch: Experienced Leader Christine Arthur, CPA

Christine Arthur is a partner with Larson & Company PC where she leads the Nonprofit Practice Group. Previously, Arthur was the founding partner of Arthur & Jensen, LLC. She serves on the board for YWCA Utah and is a co-founder and current Chair of the Community Advisory Board of the Nonprofit Academy of Excellence at the University of Utah. She is a past chair of the Utah Nonprofit Association and a founding member of the Women's Leadership Council of the United Way of Salt Lake.

The following were also recognized: 100% Member Firms

CBIZ MHM, LLC Cook Martin Poulson, P.C. Davis & Bott Certified Public Accountants, L.C. Eide Bailly LLP Hawkins Cloward & Simister Jones Simkins LLC Pinnacle Accountancy Group Pinnock, Robbins, Posey & Richins, P.C. Savage Esplin & Radmall, PC Squire & Company, PC Stayner, Bates & Jensen, PC

Newly Licensed CPAs

Jason D Broschinsky, CPA Joan Donna Marie Burke, CPA Paul Burnett, CPA Mark R Davis, CPA Kaid Gordon, CPA Michael A Gilbert, CPA Cameron Hodson, CPA David C Johnson, CPA Kyle J Krebs, CPA Nathan J Larsen, CPA Julianne Louie, CPA Sufhan Majid, CPA Annalynn Colvin Manwaring, CPA Holly Simon, CPA Enji Sok, CPA Chantel Stucki, CPA Mark Warr, CPA the journal entry | October 2015

Photos, Inauguration & Awards

the journal entry | October 2015

See more pictures from this event at www.facebook.com/UtahAssociationofCPAs the journal entry | October 2015

Golf Tournament 1

1) Backcountry.com 2) Lynn Ward won

Longest Drive for Women 3) John Neuenswander's team 4) Eide Bailly 5) Luke Houston and Braden Thompson 6) Security National 7) Bierwolf & Nilson PLLC The UACPA's 2015 golf tournament brought in $3,595 for the UACPA Foundation, supporting financial literacy in Utah.

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BAM Forum

The BAM Forum's inaugural event was held Thursday, August 27 at the Energy Solutions Arena. These events, put on by the Business and Management Council, will be held throughout the year and offer CPAs and their guests an opportunity to tour different businesses after listening to a speaker over lunch. The next event will be held November 18 at the Federal Reserve Building, 120 S. State Street.

BAM Forum at The Federal Reserve Building Time: 11:30 a.m. - 1:30 p.m. Location: Federal Reserve Building, 120 S. State Street Speaker: SEC Fraud Division Topic: Fraud CPE: One (1) Hour Fees: $25 for members, $30 for nonmembers - Fee includes lunch, one hour of CPE and a tour of the facility Register at www.uacpa.org

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Member Benefit Spotlight World Benefit Solutions

Healthy, Wealthy and Wise S UACPA Members

The ACA…Improving Healthcare at the expense of the sanity of Business Owners.

Benefit through this exclusive insurance program

UACPA Offering: • Group Medical Insurance • Dental • Life and Disability • Vision • Individual Insurance Policies

For more information, contact Andrew Stott, astott@worldbenefitsolutions.com or 801.759.0421 The information in this presentation may be privileged, confidential and protected from disclosure. Any dissemination, distribution or copying is strictly prohibited.

tarting with the 2015 reporting year, the Affordable Care Act (ACA) imposes significant reporting responsibilities on employers, for which IRS has actually issued the forms and instructions. Having these forms available now at least helps us as advisors to get educated now so we can counsel and prepare our clients. This article outlines just a few of these reporting requirements associated with the ACA Information returns The new information reporting system is similar to the current Form W-2 reporting system in that an information return (Form 1095-B/1095-C) will be prepared for each applicable employee, and these returns will be filed with the IRS using a single transmittal form (Form 1094-B/1094C). Employers must file these returns annually by Feb. 28 (March 31 if filed electronically). The filing requirements are based on an employer’s health plan and number of employees. Form 1095-B and Form 1094-B (coverage information returns) will be filed by insurance companies generally, but small employers with self-insured health plans will be required to file these forms also. Large employers (over 50 FTEs; including affiliated groups of small employers) will file form 1095-C and Form 1094-C (for employer returns).

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The IRS will use the information to determine whether employees and/or employers are subject to the new penalties or other benefits (for employees) associated with the ACA. Recommended Steps In light of the complexity of the new information reporting requirements, employers and their advisors should take the following actions: •

•

• •

Learn about the new reporting by reading “IRS Publication 5196” and “Questions and Answers about Information Reporting by Employers on Form 1094-C and Form 1095-C”. Review ownership structures of related companies and perform a controlled/affiliated service group analysis Engage with the health plan’s insurer or TPA and the company’s payroll vendor to identify responsible parties for data collection and form preparation Ensure that systems are in place to collect the needed data for the forms Develop procedures for evaluating each employee’s full-time or nonfull-time status by month and to document offers of health coverage and health plan enrollment by month

Member Benefits

The UACPA Honors 100% Membership

AGILITY

Congratulations to the firms and businesses curerently participating in the UACPA's 100% membership program. This demonstrates their commitment to the profession, to the Association's high ethical standards and a commitment to life-long learning.

The UACPA's Affinity Partners help you get the most out of your membership Agility offers UACPA members and their clients a 10% discount on any of their ReadySuite solutions. Contact Trevor Mickelson, your Industry Specialist, at 720-4904531, or Trevor.Mickelson@agilityrecovery.com for further information.

World Benefit Solutions

UACPA members receive discounts on group medical insurance, dental, life and disability, vision and individual insurance policies. For more information, contact Andrew Stott, astott@worldbenefitsolutions.com or 801-759-0421.

Hertz

UACPA members and affiliates are entitled to receive a variety of benefits from Hertz auto rentals. Take advantage of your member discount by calling 800-654-3131 and mention CDP #2079602.

JoS. A Bank Men's Clothing

The retailer offers UACPA members and affiliates 20% off all regularly priced merchandise.

ADP

ADP offers free payroll and free 401k services to referring UACPA Members and its affiliates. Please contact Kenny McKenna at 801-956-7850 or kenny.mckenna@adp.com for more information.

Camico

The Mutual Insurance Company offers UACPA members a variety of benefits. To learn more, call 800-652-1772 or email inquiry@camico.com.

Office Depot

UACPA members can save up to 40% on office products, printing, technology and furniture. Visit uacpa.org to learn more.

PUBLIC PRACTICE • Allred Jackson • CBIZ • Cook Martin Poulson • Davis & Bott • Eide Bailly • Hansen Bradshaw Malmrose & Erickson • Hawkins Cloward & Simister • HJ & Associates • Jones Simkins • Mantyla McReynolds • Pinnacle Accountancy Group • Pinnock, Robbins, Posey & Richins • PricewaterhouseCoopers • Savage Esplin & Radmall • Squire • Stayner Bates & Jensen INDUSTRY • LDS Church Auditing Department • Workers Compensation Fund

Is your firm eligible to be a part of the 100% membership program? Learn more by talking to Braden Thompson, bthompson@uacpa.org or call 801.466.8022

Learn more about member benefits by talking to Amy Spencer, as@uacpa.org or calling 801.466.8022

the journal entry | October 2015

Education

CPECourseSchedule

Credit Hours Course Title

Instructor

Vendor

Member Fee*

NonMember Fee

$165

$195

Oct 10/19/15

Fraud: Recent Findings, Red Flags and Corruption Schemes

Renee Rampulla

AICPA

10/19/15

Engagement Essentials: Preparation of Financial Statements

Renee Rampulla

AICPA

$165

$195

10/20/15

Internal Controls and Risk Assessment: Key Factors in a Successful Audit

Renee Rampulla

AICPA

$285

$340

10/21/15

Basis/Distributions for Pass-Through Entities: Simplifying the Complexities

Michael Blackburn

AICPA

$285

$340

10/22/15

Analyzing a Company's Financial Statements

Arthur Pulis

AICPA

$165

$195

10/22/15

Analyzing Costs, Productivity, and Efficiency: Three Ways to Boost Your Bottom Line

Arthur Pulis

AICPA

$165

$195

10/23/15

The New Controllership: Keys to Boosting Corporate Performance

Arthur Pulis

AICPA

$285

$340

10/26/15

Tax Planning Strategies for Small Businesses: Corporations, Partnership, and LLCs

Michael Blackburn

AICPA

$165

$195

10/26/15

Estates and Trusts: Mastering Complex Income Tax Issues

Michael Blackburn

AICPA

$165

$195

10/27/15

Construction Contractors: Accounting, Auditing and Tax

Thomas Sheets

AICPA

$285

$340

10/28/15

Form 990: A Comprehensive Approach to Accurate Preparation

Thomas Sheets

AICPA

$285

$340

10/29/15

Hottest Tax Topics for 2015

Peter Towle

AICPA

$285

$340

10/30/15

Taxation Essentials of LLCs and Partnerships

Peter Towle

AICPA

$285

$340

11/2/15

Fraud Update: Detecting and Preventing the Top Ten Fraud Schemes

Glenn Helms

AICPA

$248

$340

11/3/15

Internal Controls and COSO Essentials for Financial Managers, Accountants and Auditors

Glenn Helms

AICPA

$285

$340

11/5/15

Payroll Taxes and 1099 Issues: Everything You Need to Know

Pamela Davis-Vaughn

AICPA

$285

$340

11/6/15

Nexus Update: Latest Developments in State Income, Franchise, and Sales Tax

Pamela Davis-Vaughn

AICPA

$285

$340

11/9/15

Surgent's Advanced Critical Tax Issues for Limited Liability Companies and Partnerships

Bob Gilwee

Surgent McCoy

$285

$340

11/10/15

Buying and Selling a Business: Critical Tax and Structuring Issues

Bob Gilwee

Surgent McCoy

$285

$340

11/11/15

Excel Macros Part 1

TBD

K2 Enterprises

$165

$195

NOV

11/11/15

Tech Tools and Gadgets for a More Efficient You!

TBD

K2 Enterprises

$165

$195

11/12/15

Excel Pivot Tables for Accountants

TBD

K2 Enterprises

$285

$340

11/17/15

Capitalized Costs and Depreciations: Key Issues and Answers

Kevin Krantz

AICPA

$165

$195

11/17/15

Reviewing Individual Tax Returns: What Are You Missing?

Kevin Krantz

AICPA

$165

$195

11/18/15

Federal Income Tax Accounting Maximizing Tax Benefits and Minimizing Tax Costs

Kevin Krantz

AICPA

$285

$340

11/19/15

Annual Tax Update: Individuals and Sole Proprietors

Michael Blackburn

AICPA

$285

$340

11/20/15

Annual Tax Update: Corporations and Pass Through Entities

Michael Blackburn

AICPA

$285

$340

11/23/15

Analytics and Big Data for Accountants

James Lindell

AICPA

$285

$340

11/24/15

Transforming Your Role as Controller to Business Partner

James Lindell

AICPA

$285

$340

11/30/15

Not-for-Profit Accounting & Reporting: From Start to Finish

Brian Sheets

AICPA

$285

$340

the journal entry | October 2015

CPE Schedule Field of Study

Credit Hours Course Title

Instructor

Vendor

Member Fee*

NonMember Fee

DEC 12/1/15

Advanced Excel

TBD

K2 Enterprises

$285

$340

12/2/15

Preparing Individual Tax Returns for New Staff and ParaProfessionals

Jon Karp

Surgent McCoy

$285

$340

12/3/15

Tax Forms Boot Camp: LLCs, Partnerships and S Corporations

Jon Karp

Surgent McCoy

$285

$340

12/4/15

GAAS: A Comprehensive Review for Auditors

Marty Van Wagoner

AICPA

$285

$340

12/7/15

Forensic Accounting Investigative Practices

Robert Minniti

AICPA

$285

$340

12/8/15

Identity Theft: Preventing, Detecting, and Investigating Identity Theft

Robert Minniti

AICPA

$285

$340

12/14/15

Governmental and Not-for-Profit Annual Update

William Wagner

AICPA

$285

$340

12/15/15

Recognizing and Responding to Fraud Risk in Governmental and Not-for-Profit Organizations

William Wagner

AICPA

$285

$340

12/16/15

Annual Update for Accountants and Auditors

Marty Van Wagoner

AICPA

$190

$340

12/21/15

Annual Update for Controllers

Curtis Quickel

AICPA

$285

$340

12/22/15

Financial Forecasting and Decision Making

Curtis Quickel

AICPA

$285

$340

12/28/15

AICPA's Annual Federal Tax Update

Michael Blackburn

AICPA

$190

$340

12/29/15

Health Care Reform Act: Critical Tax and Insurance Ramifications

Michael Blackburn

AICPA

$165

$195

12/29/15

Social Security and Medicare: Maximizing Retirement Benefits

Michael Blackburn

AICPA

$195

* Early-bird pricing available for all classes. Find dates at www.uacpa.org AICPA Members receive an additional $30 off the price of each 8 hour course $60 for 16 hour courses. (excludes 4 hour courses & core training courses) where the AICPA is listed as the vendor. Use promo code AICPA8 for 8 hour courses and AICPA16 for 16 hour courses.

Winter Conference December 10-11, 2015

Keynote Speaker: Tommye Barrie, AICPA Chair Location: Salt Palace, 100 S. West Temple, SLC CPE Credit: 16 hours Fees: $342 for UACPA Members before Nov 26; $380 for members after Nov. 26; Nonmembers, $455

the journal entry | October 2015

UACPA Nonprofit Conference

Business Valuation Conference

Stay current with "once in a generation" changes in nonprofit accounting and keep your organization compliant with Utah's newest financial reporting rules.

This conference will cover planning for the ownership and leadership transition of your business with an overview of business valuation, an update on what is new in the business valuation world, business ownership transactions among current owners or family members, and buying and selling a business from unrelated individuals. We will have an economic update by Kelly Matthews, and a discussion of the impact of the legal structure of the transaction. We will also have a presenter on leadership change – and the unique problems and opportunities that can bring.

Date: Oct. 22, 2015 Time: 8 a.m. - Noon Location: Loveland Living Planet Aquarium, 12033 S. Lone Peak Parkway, Draper CPE Credit: Four (4) hours Fees: $35 for members; $40 for nonmembers

Tax Symposium Topics at this years conference include. • • • • • •

Healthcare – The Headache you wish you Never Had Foreign Taxes – What you Wish you had Known After The Fact Estate Planning &Trusts State Tax Issues Tax Update Fraud and the Small business

Date: Nov. 13, 2015 Time: 8 a.m. - 3:45 p.m. Location: Salt Palace, 100 S. West Temple Fees: $248 for UACPA members before Oct. 30; $275 after; $335 for nonmembers CPE Credit: 8 hours

Practicing Before Utah State Tax Court Date: Oct. 26, 2015 Time: 8 a.m. - Noon Location: Utah State Capitol Building Boardroom, 350 N. State Street, Room 240 Speaker: Commissioner John Valentine Fees: Free for UACPA members; $195 for nonmembers CPE Credit: Four (4) hours 48

the journal entry | October 2015

Session Topics: • Overview of Business Valuation – Charlotte Clark, CPA, CVA, ABAR • What’s New in the Business Valuation World – Carl Steffen, CPA/ABV/CFF, CVA, ASA, CBA, ABAR • Valuation Issues and Transactions – Jeff Pickett, CPA/ABV • Getting Your Business Ready for Sale – Wayne Simpson • Economic Update – Kelly Matthews • M&A – Tom Taylor • Business Transactions: Making the Most of a Perfect Opportunity for Positive Change – Dan Griffiths, CPA Date: December 9, 2015 Time: 8:00 am – 3:30 pm Location: UACPA Training Room, 136 S Main Street, Suite 510 CPE Credit: 8 Hours Fees: $248 for UACPA Members before Nov. 25, $275 for members After; Nonmembers, $335

Tax

Home Builder's Association Conference Thursday, November 5 The UACPA has partnered with the Home Builder's Association for the inaugural conference in St. George. Topics include 1030 Exchanges, Property Transfers, New Construction Tax Accounting, Lien Laws, ACA, etc.

Location: AGC Offices, 230 N. 1680 East, St. George Speakers:Various CPE: Eight (8) hours

Accounting & Auditing Conference Topics at this years conference include. • • • • • • • •

FASB Update Revenue Recognition Cyber Security UACPA Update COSO Framerwork Audit Update Economic Update Keynote Speaker: T. Jeffrey Wilks, Ph.D. BYU's School of Accountancy

November 4

Date: Nov. 16, 2015 Time: 8 a.m. - 4 p.m. Location: UACPA Training Room, 136 S. Main Street, Suite 510 Fees: $248 for UACPA members before Nov. 2; $275 after; $335 for nonmembers CPE Credit: 8 hours

Fees: $248 for members before Oct. 22; $275 for members after Oct. 22; $335 for Nonmembers Register at www.uacpa.org

Tax Practitioner's Conference Location: Dixie State University Udvar Hazy Bldg, 225 S. 700 E. St. George Speakers: Various CPE: Eight (8) hours Fees: $248 for members before Oct. 21; $275 for members after Oct. 21; $335 for Nonmembers

the journal entry | October 2015

ContactList

CPE Where You Want It, When You Want It!

Accounting Issues

When UACPA members have questions about accounting issues, help is available from the UACPA Accounting Issues Committee. Each month, a member of the committee is assigned to answer accounting questions and help you interpret the rules as they apply to your particular situation. The following members may be contacted during the months listed. October

November

Ted Rokich 801-263-3090 trokich@fdic.gov

Larry Deppe 801-626-7838 ldeppe1@weber.edu

December

With just a click you can earn 2 to 8 hours of CPE credit from the most experienced CPAs across the country from wherever you have a computer and Internet connection. To view a list of upcoming webcasts log on to uacpa.org, Education & Events and click on “Webcasts,” keyword search “webinar.”

Mark Anderson 801-532-2200 manderson@eidebailly.com

Classified Ads CPE Approval — Does This Qualify?

When UACPA members have questions regarding CPE Approval and whether or not something may or may not qualify, they can turn to the UACPA CPE Approval Committee for answers. Each month, committee members are assigned to answer member questions related to CPE approval. Below are the members’ who may be contacted with your questions. October - December Steve Avis 801-532-2200 savis@eidebailly.com

Scott L. Robinson 801-990-5918 srobinson@tannerco.com

Tax Issues

The Tax Issues Committee focuses on legislative and regulatory issues and does not answer technical questions. For assistance with a technical matter, please refer to the UACPA referral tool at uacpa.org. Direct questions related to legislative or regulatory issues to taxissues@uacpa.org

the journal entry | October 2015

To place your classified advertisement and reach Utah CPAs, contact the UACPA at mail@uapca.org, Utah Practice For Sale: Salt Lake City Area Partnership or Merger Opportunity - seeking partner to acquiring up to 50% of practice (about $475K gross). There is a knowledgeable staff in place, a strong fee structure, tax work (70%), and accounting services (30%). For more information, please call 1-800-397-0249 or visit www.AccountingPracticeSales.com to see listing details and register for free email updates. THINKING OF SELLING YOUR PRACTICE? Accounting Practice Sales is the leading marketer of accounting and tax practices in North America. We have a large pool of buyers, both individuals and firms, looking for practices now. We also have the experience to help you find the right fit for your firm, negotiate the best price and terms and get the deal done. To learn more about our risk-free and confidential services, call Ryan Pannell with The Holmes Group at 1-800-397-0249 or email ryan@accountingpracticesales.com. Interested in Buying a Practice? See local and nationwide listings at www.AccountingPracticeSales.com and register for free email updates. Or call us at 800-397-0249.

Technology Conference Dec. 17-18

Topics Include: * Tech Update 2015 * Self Service Business Intelligence with Power BI * Top Ten Technology Articles You Should Have Read * Remote Access Best Practices * Risk and Rewards of Hosted, On-Premise, and Hybrid Solutions * Five Common Sense Steps to Secure Your PC * Everything iOS * How to Prevent & Detect Spreadsheet Errors * The Internet of Things * Backups – Critical to Every Organization * Dueling Excel Tips * Data Security – Need We Say More? * Leading Solutions for CPA Firms * Personal Technologies * Using Tables, PivotTables, and Queries to Automate Reporting * Revolutionizing Small Business Accounting Payment Technologies * Technology Policies to Protect Your Organization * Beyond Entry-Level Accounting, Reporting, and Analytics * Windows 10 – You’re Going to Love It! * Best Tools for Collaboration * Welcome to the New World of Microsoft

South Towne Expo Center, 9575 South State Street CPE Credit: 16 Hours Fees: $419 for UACPA Members before Dec. 3; $465 after Dec. 3; $545 Nonmembers

the journal entry | October 2015

Utah Association of CPAs 136 S. Main Street, Suite 510 Salt Lake City, UT 84101

Address Service Requested

the journal entry | October 2015