North Dakota State Board of Accountancy

Law Review

A joint group met Jan. 15, to discuss
potential changes in the accounting statute.
Various amendments were covered, and
in the end, three basic changes that were
settled on:

- extending substantial equivalency mobility to individuals, with no firm permit required for their firms

- continuing with firm registration for domestic (N.D.) firms, other than sole practitioners

- removing the “firm registration” language from the definition of “public accounting”

A Washington law firm, Gibson Dunn, will draft the legislation language, which will then be reviewed by AICPA, NASBA, and our Accountants Coalition representative, and sent on to us. The law review group will meet May 4, 3:30, at the Fargo EideBailly offices.

According to AICPA, 11 states have enacted mobility, 8 have introduced legislation, and about 20 are anticipated to have legislative activity this year. Ten are listed under “possible 2009 legislative activity”.

Highlights from Jan. 15, 2008 meeting

PURPOSE

Jim reviewed the purpose of the group.

POTENTIAL CHANGES.

Jim will check whether CPA licensure is required [by UAA], in the CPA’s state of residence or principal place of business. He will also check re. border city situations. The group agreed to the following changes in statute.

Provide substantial equivalency mobility for individuals; not require a firm permit for their firms

Require firm registration for domestic firms (other than sole practitioners, for whom the personal registration will provide firm detail)

Eliminate the references to “firm permits” within the definition of public accountancy

Other changes were discussed, but no other amendments will be pursued.

Meeting Highlights: 11/16/07

MINUTES (July 2 & 31, 2007): approved

FINANCIALS: disbursements approved

RULE CHANGES: Including expansion of peer review to compilation firms, replacing the N.D. ethics code with that of AICPA, etc. The changes were adopted, pending Attorney General approval.

QUESTIONS

1. Using “accountant” (for a non-licensee in a firm of CPAs). Legal counsel will be consulted on this question.

2. Reinstatement was granted for an individual.

3. References Lifespan: A 3 year lifespan will be allowed for exam references.

4. Aakers: We will accept degrees from Aakers, after their accreditation date, including earlier coursework within such a degree. If another (acceptable) school has accepted Aakers credits, we would honor that school’s decision. Aakers credits may count within the concentration.

5. Experience: a request to allow waiver of the 150 provision, in lieu of work experience, was not granted.

6. Work Experience

An inquiry had been received, re. work experience, however, the typical 3^rd party verification was not provided. Such verification is necessary (notarizing was also mentioned).

LAW CHANGES TASK FORCE

A joint work group will be established to address law changes. Harold will serve as a board representative, along with either Nikki or Rick. Jim mentioned a mid-December timeframe for selecting the members, a mid January session, then meeting again after tax season.

NASBA ANNUAL MEETING: Comments about the meeting were shared. Jim will check on how many states mandate ethics CPE.

COMPLAINTS

Three complaints were addressed.

Jim commented on an Exam diagnostics error; there was no objection to sending the information to candidates, as recommended.

Meeting Highlights: 7/2/07 10:00 am (conference call)

Participants: Harold Wilde, Ron Johnke, Jim Abbott, George Kelly, Nikki Schmaltz, Rick Lee, Velma Bjorgum and Mary Jo Richard.

Selection of officers

Harold was selected as president; Ron was selected as Secretary-Treasurer.

Financial Matters

Checks 11927 to 12030 were approved. A revised budget was approved.

Rule Change Language

The license renewal fee “ceiling” will be changed to $100.

George indicated that the NDSA is opposed to the peer review (compilation) expansion, due to cost; he also stated that small firms are not aware of what a peer review involves; more information might help. Nikki would be willing to talk with the NDSA; she also mentioned Stan Sandvik. She will pursue. Jim will send peer review financial information to Nikki. A question was raised about having an LPA sit on the Society acceptance body / committee. Jim will check on AICPA-related rules. A letter had been received, concerned about the current June 30 CPE reporting date. We will write to the author; no change was initiated. The rule changes were approved for exposure, with one vote in opposition.

Jim reviewed law changes which would be held for fall 2008, and put into a legislative proposal. A question was raised about peer review. Perhaps it could be added to the substantial equivalency criteria. Motion passed to approve of these changes, planning to bring them forward. There was a comment that we are not settling the actual language.

One guest left the meeting at this point.

NASBA Annual meeting

A 4 night maximum will be used for reimbursement.

The second guest left the meeting.

Other items

Jim will check with legal counsel, re. whether our statute term “client” covers both the party paying the fee and the entity to which services are provided.

Jim mentioned earlier plans to inquire of other states about peer review; South Dakota uses its own reviewer qualification approach. We will leave the matter as is.

Complaints

2007-1. This case will be closed, with a letter asking that the party use a “not licensed in ND” disclaimer, if using a reference to a foreign accounting credential.

2007-2. Jim will check with legal counsel about the handling of such issues – the full board being involved in case examination. He will also ask legal counsel re. public notice of discipline -- necessary processes involved. Board members will receive a copy of the complaint material (excluding one member with a potential conflict). The group will meet July 31, 11 am, to address the matter.

The meeting began at 1:00. Present: Harold Wilde, Rick Lee, Ron Johnke, George Kelly, Carol Dobitz, Velma Bjorgum, Nikki Schmaltz, Mary Jo Richard, Jim Abbott.

Minutes (1/19/07): Approved on motion by Carol D.; second by Rick L.; carried unanimous.

Approval of disbursements (checks 11819 to 11926, dated 1/1/07 to 3/31/07) – Carol motion; second by George. Carried unanimous.

2007-8 Budget. Approved on motion by Carol D.; second by Ron; carried unanimous

Jim will request that an elevator directions sign be installed at the office, if not already there.

Rick and Ron will be the Board’s representatives for the annual joint Society / Board meeting. The meeting will be held June 6 at 7 am. There was no objection to the team having decision-making authority.

Mary Jo reviewed an alternative pricing approach for Society peer review administration fees. It was mentioned that perhaps the late fees should be higher, and perhaps the board should be notified of firms that are slow to cooperate.

Carol D. moved to adopt peer review for all licensees [compilations also]; second by Ron J. There was concern about charging a higher fee for those who cannot be a member, or choose not to be a member. Also mentioned was the idea of the NDSA assisting the CPA society with the peer review fees for their members. Motion carried, with George voting against.

Carol moved to change the firm permit fee to $10 for all firms; second by Rick; carried.

The substantial equivalency law changes are agreeable, but will be left for 2008 action, prior to the Legislative Session. Break.

Educational concentration: A Money and Banking class is to be counted only as an ECON course, even if it carries another rubric. Any classes with an ECON rubric are allowable.

Carol D. moved to add “not renewed” in sentence one of rule section 3-02-02-08; second by George; carried unanimous.

A letter had been received from NASBA, inviting exam-related comments. No comments were raised. Velma left the meeting. Ron moved to ask for regarding of Windows 2 and 3, re. the “cut & paste” issue; second by George; carried unanimous.

Service on a board of directors will be considered allowable under retired status.

There was no objection to continuing to retain the Drees, Riskey and Vallager firm for the Board current audit. Mary Jo left the meeting.

The group was agreeable with Dick Brammell performing our PRP review services without CPE, if not holding out.

Jim passed out copies of a financial projection for a separately-operating agency status.

Jim proposed plans for contacting three attorneys; two who represent professional / business boards, one with Mike Daley’s former firm who had expressed an interest in serving us.

Jim informed the group that the AICPA disciplined CPA appears to be current with obligations.

2007-2: George had reviewed this complaint and reported to the group. It was mentioned that there is a potential conflict with one of the board members on this case. We will invite a response from the CPA, which George will review.

Various law and rule changes were addressed and approved (except where noted). Before being effective, they will need further formal action -- legislation or formal rule adoption procedures.

2. Accounting concentration: adjusting the concentration, to specify 24 credits of accounting and 24 other business credits, with Principles of Accounting not counting in either part of the concentration. The “other business” credits could include up to 3 credits of Economics.

3. Peer Review for compilation firms: Tabled. Fee information will be sought from the CPA Society. An alternative could be to use a hired SB person, to approve firm / reviewer matches and accept review documents, in lieu of using a report review body.

6. License fees (adopting a fee “ceiling”, so that fees can be adjusted within limits)

Dick Brammel was connected by phone, and reported on the practice review program. No remedial action is being suggested at this point, but there are two outstanding firms. The board also addressed a special review that had been performed on a practice unit. A letter will be prepared, specifying various remedial measures.

Both formats of the AICPA ethics exam (text and CD-ROM) will be allowable for certification.

An audit of claimed CPE had been carried out, with no problems found. We will audit 5 or 10 licensees per year from the two groups (those claiming CPE and those claiming the out-state reporting exemption), and eliminate the committee review process.

An AICPA disciplinary action was reviewed; no further action will be taken. We will check with AICPA in 3 months, re. compliance.

Re. Manitoba CA graduation event (Sat. Feb. 3), Harold and Jim will confer about attendance.

National firm name: if the firm is not using a title in question in this state, we will take no action.

FINANCIAL MATTERS
Disbursements were approved.
A 2006-7 budget was approved, plus equipment budget and staff compensation, and a flex time amendment for the policy manual.

RULE CHANGES
The recently-approved disclaimer rule was discussed. It was suggested that staff examine phone books, and contact any parties using “accountant” and “accounting”, to inform them of the new regulation. The Board will have a special rule review meeting, on September 22, 10 am to 4, in Grand Forks. The NDSA and NDSCPA will be invited to send a representative to participate in the meeting. The Board was informed that there has been concern expressed about the June 30 form due date / late fee approach being used.

ADA REQUESTS
Staff will handle future ADA requests, bringing only unusual cases to the Board. We will insist on medical verification for any special provisions provided. There was no objection to granting the specific ADA request raised in this meeting.

CPE AUDITING
An audit of CPE forms will be conducted. If there are no problems, we will revert to using the current review system.

ADVERTISING REQUEST
A CPA had written requesting the ability to advertise under an accounting classification. The Board sentiment was that if he wishes to use the CPA credential, CPE would be expected.

COMPLAINT RECORDS
There was no objection to purging complaint files after 10 years and not retaining any notation within the database.

AUDIT
There was no objection to re-engaging the Board’s prior year audit firm.

EDUCATION
Economics will not count toward the accounting / business concentration. Business Law will always counts under the Business concentration. Money & Banking is not to be counted under the Business concentration. We will watch for unusual classes within the business rubric.

CPE EXCEPTION
The group was agreeable with allowing a CPE make-up period of Dec. 31, for an illness case.

COMPLAINTS
Three cases will be closed; one with a letter of admonishment. In another case, will have the individual get properly licensed.

A rule change will be prepared to raise the annual registration fee, using a “not to exceed” approach. The group discussed the “disclaimer” rule, and agreed that Wilde and Abbott will work out the language refinements in option 1. It was later agreed that option 1 would be edited to read: “… For a person the disclaimer must state that the person is not a CPA or LPA. For a firm the disclaimer must state the firm is not a CPA firm or LPA firm. …” A meeting will be arranged for later in the year, to address rule and law changes.

FIRM LICENSURE: We will limit the March 1991 interpretation to situations not involving reporting on financial statements. A firm that does not market itself / use the CPA credential here and does not report on ND client financial statements need not be licensed here.

LAW FIRMS: A law firm not using the CPA designation and not performing financial statement reporting, but doing tax work, does not need a firm permit. CPAs within the firm who do tax work, and use the CPA credential on letterhead and cards, need not be licensed as practice units, but do need the full complement of CPE.

SUBSTANTIAL EQUIVALENCY: For substantial equivalency applications we will not require an ethics examination.

HOME ADDRESSES: Home addresses will not be provided to the AICPA for membership uses. We will continue not charging a fee when we do provide licensee listings.

EXPERT TESTIMONY: The board had decided earlier that expert testimony is not considered public accounting. Legal counsel was not concerned with allowing expert testimony by a CPA from elsewhere, and did not consider it misleading to indicate that other-state status. Licensure could be expected if testimony is judged to be public accounting. We will continue as is. Abbott will check whether licensure for peer review is addressed.

EXAM SCORES: It is possible to use a different score notice, that indicates that grades are subject to board approval. No action will be taken on this matter.

GRADE TRANSFER: The grade transfer provisions could be construed to limit transfer to those candidates who met ND writing requirements at the time of passing. Legal counsel indicated that as long as the candidate’s grades meet ND grade-related rules (eg. writing all parts, conditioning period, minimum score, etc.) credit should be given; we will follow this approach.

FOREIGN EXPERIENCE: For meeting the 4 year experience option we will not use a specific percentage of allowable time spent for such things as training, etc. There had been a question about “articleship” as experience, but no limitation was advanced.

CONCENTRATION: Financial statement analysis will count in the accounting concentration.

2006-3. We will provide the complaint to the accountant if OK’d by legal counsel, and ask for more detail about the gap in service.

PRP FINDING: We will conduct an investigation of a firm’s accounting practice, with a Board-retained reviewer. The matter should be addressed before the 6/30/06 permit renewal. Following the investigation, consider statement recall, etc.

2006-2 will be closed. Abbott provided an update re. 2006-4. No further action will be taken re two other matters.

A meeting of the Law Review Task Force will be held Monday, May 5, 2008, at 3:30 pm. Location: 4310 17^th Ave., Fargo (EideBailly offices). Discussed at the meeting will be possible changes in the North Dakota accountancy statute. You can view the current law at www.nd.gov/ndsba/laws/htm; contact the office, if you would like a paper copy.

A special meeting of the N.D. State Board of Accountancy (& CPA Society) will be held Thursday, May 8, 2008, at 9 am. Location: 4310 17^th Ave., Fargo (EideBailly offices). This meeting will address staff compensation matters and a capital equipment budget.

A board meeting of the State Board of Accountancy will be held Thursday, June 5, 2008, at 1 pm. (formerly set for May 9-10). Location: 401 DeMers Ave., Grand Forks (BradyMartz office). A speakerphone may be used to connect one or more board members. The meeting will deal with various business matters, such as law changes to enable interstate mobility, the 2008-9 budget, audit firm to be used, compensation changes, possibly one or more complaints, etc.

Meetings of the Board of Accountancy are open to the public. When the Board addresses complaints, it will adjourn into executive session if any guests are present at the time. If you wish to participate in the meeting or would like to request special accommodations, contact the Board of Accountancy, at 800-532-5904, or email: ndsba@nd.gov.



				State Board of Accountancy Meeting Highlights Next Meeting January 15, 2008 November 16, 2007 July 2, 2007 May 11, 2007 Jan 19, 2007 July 7, 2006 May 9, 2006 Law Review A joint group met Jan. 15, to discuss potential changes in the accounting statute. Various amendments were covered, and in the end, three basic changes that were settled on: - extending substantial equivalency mobility to individuals, with no firm permit required for their firms - continuing with firm registration for domestic (N.D.) firms, other than sole practitioners - removing the “firm registration” language from the definition of “public accounting” A Washington law firm, Gibson Dunn, will draft the legislation language, which will then be reviewed by AICPA, NASBA, and our Accountants Coalition representative, and sent on to us. The law review group will meet May 4, 3:30, at the Fargo EideBailly offices. According to AICPA, 11 states have enacted mobility, 8 have introduced legislation, and about 20 are anticipated to have legislative activity this year. Ten are listed under “possible 2009 legislative activity”. Highlights from Jan. 15, 2008 meeting PURPOSE Jim reviewed the purpose of the group. POTENTIAL CHANGES. Jim will check whether CPA licensure is required [by UAA], in the CPA’s state of residence or principal place of business. He will also check re. border city situations. The group agreed to the following changes in statute. Provide substantial equivalency mobility for individuals; not require a firm permit for their firms Require firm registration for domestic firms (other than sole practitioners, for whom the personal registration will provide firm detail) Eliminate the references to “firm permits” within the definition of public accountancy Other changes were discussed, but no other amendments will be pursued. Meeting Highlights: 11/16/07 MINUTES (July 2 & 31, 2007): approved FINANCIALS: disbursements approved RULE CHANGES: Including expansion of peer review to compilation firms, replacing the N.D. ethics code with that of AICPA, etc. The changes were adopted, pending Attorney General approval. QUESTIONS 1. Using “accountant” (for a non-licensee in a firm of CPAs). Legal counsel will be consulted on this question. 2. Reinstatement was granted for an individual. 3. References Lifespan: A 3 year lifespan will be allowed for exam references. 4. Aakers: We will accept degrees from Aakers, after their accreditation date, including earlier coursework within such a degree. If another (acceptable) school has accepted Aakers credits, we would honor that school’s decision. Aakers credits may count within the concentration. 5. Experience: a request to allow waiver of the 150 provision, in lieu of work experience, was not granted. 6. Work Experience An inquiry had been received, re. work experience, however, the typical 3^rd party verification was not provided. Such verification is necessary (notarizing was also mentioned). LAW CHANGES TASK FORCE A joint work group will be established to address law changes. Harold will serve as a board representative, along with either Nikki or Rick. Jim mentioned a mid-December timeframe for selecting the members, a mid January session, then meeting again after tax season. NASBA ANNUAL MEETING: Comments about the meeting were shared. Jim will check on how many states mandate ethics CPE. COMPLAINTS Three complaints were addressed. Jim commented on an Exam diagnostics error; there was no objection to sending the information to candidates, as recommended. Meeting Highlights: 7/2/07 10:00 am (conference call) Participants: Harold Wilde, Ron Johnke, Jim Abbott, George Kelly, Nikki Schmaltz, Rick Lee, Velma Bjorgum and Mary Jo Richard. Selection of officers Harold was selected as president; Ron was selected as Secretary-Treasurer. Financial Matters Checks 11927 to 12030 were approved. A revised budget was approved. Rule Change Language The license renewal fee “ceiling” will be changed to $100. George indicated that the NDSA is opposed to the peer review (compilation) expansion, due to cost; he also stated that small firms are not aware of what a peer review involves; more information might help. Nikki would be willing to talk with the NDSA; she also mentioned Stan Sandvik. She will pursue. Jim will send peer review financial information to Nikki. A question was raised about having an LPA sit on the Society acceptance body / committee. Jim will check on AICPA-related rules. A letter had been received, concerned about the current June 30 CPE reporting date. We will write to the author; no change was initiated. The rule changes were approved for exposure, with one vote in opposition. Jim reviewed law changes which would be held for fall 2008, and put into a legislative proposal. A question was raised about peer review. Perhaps it could be added to the substantial equivalency criteria. Motion passed to approve of these changes, planning to bring them forward. There was a comment that we are not settling the actual language. One guest left the meeting at this point. NASBA Annual meeting A 4 night maximum will be used for reimbursement. The second guest left the meeting. Other items Jim will check with legal counsel, re. whether our statute term “client” covers both the party paying the fee and the entity to which services are provided. Jim mentioned earlier plans to inquire of other states about peer review; South Dakota uses its own reviewer qualification approach. We will leave the matter as is. Complaints 2007-1. This case will be closed, with a letter asking that the party use a “not licensed in ND” disclaimer, if using a reference to a foreign accounting credential. 2007-2. Jim will check with legal counsel about the handling of such issues – the full board being involved in case examination. He will also ask legal counsel re. public notice of discipline -- necessary processes involved. Board members will receive a copy of the complaint material (excluding one member with a potential conflict). The group will meet July 31, 11 am, to address the matter. Meeting Highlights : 5/11/07 1:00 pm (401 DeMers Ave.) The meeting began at 1:00. Present: Harold Wilde, Rick Lee, Ron Johnke, George Kelly, Carol Dobitz, Velma Bjorgum, Nikki Schmaltz, Mary Jo Richard, Jim Abbott. Harold welcomed Nikki Schmaltz, who is a new board member. Minutes (1/19/07): Approved on motion by Carol D.; second by Rick L.; carried unanimous. Financials (3/31/07) Approval of disbursements (checks 11819 to 11926, dated 1/1/07 to 3/31/07) – Carol motion; second by George. Carried unanimous. 2007-8 Budget. Approved on motion by Carol D.; second by Ron; carried unanimous Jim will request that an elevator directions sign be installed at the office, if not already there. Rick and Ron will be the Board’s representatives for the annual joint Society / Board meeting. The meeting will be held June 6 at 7 am. There was no objection to the team having decision-making authority. Rule changes Mary Jo reviewed an alternative pricing approach for Society peer review administration fees. It was mentioned that perhaps the late fees should be higher, and perhaps the board should be notified of firms that are slow to cooperate. Carol D. moved to adopt peer review for all licensees [compilations also]; second by Ron J. There was concern about charging a higher fee for those who cannot be a member, or choose not to be a member. Also mentioned was the idea of the NDSA assisting the CPA society with the peer review fees for their members. Motion carried, with George voting against. Carol moved to change the firm permit fee to $10 for all firms; second by Rick; carried. The substantial equivalency law changes are agreeable, but will be left for 2008 action, prior to the Legislative Session. Break. Adding “for a resident” in Rule 3-02-02-02 was agreeable. Educational concentration: A Money and Banking class is to be counted only as an ECON course, even if it carries another rubric. Any classes with an ECON rubric are allowable. Carol D. moved to add “not renewed” in sentence one of rule section 3-02-02-08; second by George; carried unanimous. Ron moved to adopt the AICPA code; second by Rick; carried unanimous. CPA Exam Issues A letter had been received from NASBA, inviting exam-related comments. No comments were raised. Velma left the meeting. Ron moved to ask for regarding of Windows 2 and 3, re. the “cut & paste” issue; second by George; carried unanimous. Retired status Service on a board of directors will be considered allowable under retired status. Audit firm There was no objection to continuing to retain the Drees, Riskey and Vallager firm for the Board current audit. Mary Jo left the meeting. PRP coordinator The group was agreeable with Dick Brammell performing our PRP review services without CPE, if not holding out. Pro forma Jim passed out copies of a financial projection for a separately-operating agency status. New Legal Counsel Jim proposed plans for contacting three attorneys; two who represent professional / business boards, one with Mike Daley’s former firm who had expressed an interest in serving us. We will use this approach, in consultation with Harold. Complaints 2007-1. We will ask the person to use a disclaimer. There was no objection to closing cases 2006-8, 2006-10, and 2006-11 Jim informed the group that the AICPA disciplined CPA appears to be current with obligations. He will follow up in about 6 months. 2007-2: George had reviewed this complaint and reported to the group. It was mentioned that there is a potential conflict with one of the board members on this case. We will invite a response from the CPA, which George will review. Meeting Highlights: 1/19/07 RULE CHANGES Various law and rule changes were addressed and approved (except where noted). Before being effective, they will need further formal action -- legislation or formal rule adoption procedures. 1. Substantial Equivalency changes: to allow easier mobility into this state 2. Accounting concentration: adjusting the concentration, to specify 24 credits of accounting and 24 other business credits, with Principles of Accounting not counting in either part of the concentration. The “other business” credits could include up to 3 credits of Economics. 3. Peer Review for compilation firms: Tabled. Fee information will be sought from the CPA Society. An alternative could be to use a hired SB person, to approve firm / reviewer matches and accept review documents, in lieu of using a report review body. 4. Ethics code: adopting the AICPA code, to replace the ND code 5. Late fees due July 31 (instead of June 30) 6. License fees (adopting a fee “ceiling”, so that fees can be adjusted within limits) 7. Firm permit & fee elimination: tabled 8. Reinstatement (adding $100 fee to re-activate a relinquished certificate). 9. Editing the definition of “public accounting”: tabled 10. Application lifespan: will be left at one year 11. Board stipend increase 12. Confidential communications (allowing for practice sale exception) 13. Reciprocity provisions: no change will be proposed 14. Temporary practice: tabled PRACTICE REVIEW Dick Brammel was connected by phone, and reported on the practice review program. No remedial action is being suggested at this point, but there are two outstanding firms. The board also addressed a special review that had been performed on a practice unit. A letter will be prepared, specifying various remedial measures. FINANCIAL REPORT Disbursements were approved. ETHICS EXAM Both formats of the AICPA ethics exam (text and CD-ROM) will be allowable for certification. STAFF AGREEMENT The Board-Society staffing agreement will be renewed for 5 years. CPE AUDIT An audit of claimed CPE had been carried out, with no problems found. We will audit 5 or 10 licensees per year from the two groups (those claiming CPE and those claiming the out-state reporting exemption), and eliminate the committee review process. COMPLAINTS We will close the 2006-9 case. An AICPA disciplinary action was reviewed; no further action will be taken. We will check with AICPA in 3 months, re. compliance. Re. Manitoba CA graduation event (Sat. Feb. 3), Harold and Jim will confer about attendance. National firm name: if the firm is not using a title in question in this state, we will take no action. Meeting Highlights: July 7, 2006 OFFICER SELECTION Harold Wilde was elected president; Ron Johnke as Secretary. FINANCIAL MATTERS Disbursements were approved. A 2006-7 budget was approved, plus equipment budget and staff compensation, and a flex time amendment for the policy manual. RULE CHANGES The recently-approved disclaimer rule was discussed. It was suggested that staff examine phone books, and contact any parties using “accountant” and “accounting”, to inform them of the new regulation. The Board will have a special rule review meeting, on September 22, 10 am to 4, in Grand Forks. The NDSA and NDSCPA will be invited to send a representative to participate in the meeting. The Board was informed that there has been concern expressed about the June 30 form due date / late fee approach being used. ADA REQUESTS Staff will handle future ADA requests, bringing only unusual cases to the Board. We will insist on medical verification for any special provisions provided. There was no objection to granting the specific ADA request raised in this meeting. CPE AUDITING An audit of CPE forms will be conducted. If there are no problems, we will revert to using the current review system. ADVERTISING REQUEST A CPA had written requesting the ability to advertise under an accounting classification. The Board sentiment was that if he wishes to use the CPA credential, CPE would be expected. COMPLAINT RECORDS There was no objection to purging complaint files after 10 years and not retaining any notation within the database. AUDIT There was no objection to re-engaging the Board’s prior year audit firm. EDUCATION Economics will not count toward the accounting / business concentration. Business Law will always counts under the Business concentration. Money & Banking is not to be counted under the Business concentration. We will watch for unusual classes within the business rubric. CPE EXCEPTION The group was agreeable with allowing a CPE make-up period of Dec. 31, for an illness case. COMPLAINTS Three cases will be closed; one with a letter of admonishment. In another case, will have the individual get properly licensed. Meeting highlights: 4/21/06 and 5/9/06 RULE CHANGES A rule change will be prepared to raise the annual registration fee, using a “not to exceed” approach. The group discussed the “disclaimer” rule, and agreed that Wilde and Abbott will work out the language refinements in option 1. It was later agreed that option 1 would be edited to read: “… For a person the disclaimer must state that the person is not a CPA or LPA. For a firm the disclaimer must state the firm is not a CPA firm or LPA firm. …” A meeting will be arranged for later in the year, to address rule and law changes. QUESTIONS FIRM LICENSURE: We will limit the March 1991 interpretation to situations not involving reporting on financial statements. A firm that does not market itself / use the CPA credential here and does not report on ND client financial statements need not be licensed here. LAW FIRMS: A law firm not using the CPA designation and not performing financial statement reporting, but doing tax work, does not need a firm permit. CPAs within the firm who do tax work, and use the CPA credential on letterhead and cards, need not be licensed as practice units, but do need the full complement of CPE. SUBSTANTIAL EQUIVALENCY: For substantial equivalency applications we will not require an ethics examination. HOME ADDRESSES: Home addresses will not be provided to the AICPA for membership uses. We will continue not charging a fee when we do provide licensee listings. EXPERT TESTIMONY: The board had decided earlier that expert testimony is not considered public accounting. Legal counsel was not concerned with allowing expert testimony by a CPA from elsewhere, and did not consider it misleading to indicate that other-state status. Licensure could be expected if testimony is judged to be public accounting. We will continue as is. Abbott will check whether licensure for peer review is addressed. EXAM SCORES: It is possible to use a different score notice, that indicates that grades are subject to board approval. No action will be taken on this matter. GRADE TRANSFER: The grade transfer provisions could be construed to limit transfer to those candidates who met ND writing requirements at the time of passing. Legal counsel indicated that as long as the candidate’s grades meet ND grade-related rules (eg. writing all parts, conditioning period, minimum score, etc.) credit should be given; we will follow this approach. FOREIGN EXPERIENCE: For meeting the 4 year experience option we will not use a specific percentage of allowable time spent for such things as training, etc. There had been a question about “articleship” as experience, but no limitation was advanced. CONCENTRATION: Financial statement analysis will count in the accounting concentration. COMPLAINTS 2006-1. We will issue a letter to the accountant and close the case. 2006-3. We will provide the complaint to the accountant if OK’d by legal counsel, and ask for more detail about the gap in service. PRP FINDING: We will conduct an investigation of a firm’s accounting practice, with a Board-retained reviewer. The matter should be addressed before the 6/30/06 permit renewal. Following the investigation, consider statement recall, etc. 2006-2 will be closed. Abbott provided an update re. 2006-4. No further action will be taken re two other matters. OTHER MATTERS: An appeal to extend the exam conditioning time was not granted. We will invite Dick Brammell to continue as PRP coordinator. NEXT MEETING A meeting of the Law Review Task Force will be held Monday, May 5, 2008, at 3:30 pm. Location: 4310 17^th Ave., Fargo (EideBailly offices). Discussed at the meeting will be possible changes in the North Dakota accountancy statute. You can view the current law at www.nd.gov/ndsba/laws/htm; contact the office, if you would like a paper copy. A special meeting of the N.D. State Board of Accountancy (& CPA Society) will be held Thursday, May 8, 2008, at 9 am. Location: 4310 17^th Ave., Fargo (EideBailly offices). This meeting will address staff compensation matters and a capital equipment budget. A board meeting of the State Board of Accountancy will be held Thursday, June 5, 2008, at 1 pm. (formerly set for May 9-10). Location: 401 DeMers Ave., Grand Forks (BradyMartz office). A speakerphone may be used to connect one or more board members. The meeting will deal with various business matters, such as law changes to enable interstate mobility, the 2008-9 budget, audit firm to be used, compensation changes, possibly one or more complaints, etc. Meetings of the Board of Accountancy are open to the public. When the Board addresses complaints, it will adjourn into executive session if any guests are present at the time. If you wish to participate in the meeting or would like to request special accommodations, contact the Board of Accountancy, at 800-532-5904, or email: ndsba@nd.gov.