|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
Board Meeting Highlights Minutes Notes: 2012
Other
Links: Next Meeting |
Board
Members
North Dakota State Board of Accountancy Meeting Notes: January 25, 2013
______________________________
Participants: Nikki Schmaltz, Rick Lee, Ron Johnke, Mandy Harlow, Jim Abbott, George Kelly & Faye Miller. The meeting began at approx. 12.
MINUTES (Dec. 31, 2012): Approved [motion: Faye; 2nd: Rick; carried].
FINANCIALS Jim shared some comments on the financials, including a mention that vacation / sick time accrual levels have declined about 10%. There was discussion about why the budget shows a net income of -$1700. Jim will check the investment account; the report balance differs slightly from the bank statement. The FICA and Federal tax payable accounts will be brought to zero at 12/31/12. The Dec. 31 financial statements and disbursements 14368 to 14420 were approved [motion: Rick; 2nd: Ron; carried].
OTHER BUSINESS Three reinstatements were approved – U. Sheikh, R. Emerson (after CPE is complete), and J. Bushard [motion: Faye; 2nd: George; carried].
SB 2150 proposes to limit board member per diems. Jim will watch the bill and inform the Board; he may provide legislator names to the board, for contact, if the bill is passed out of the Senate. HB 1309 will eliminate reporting of agency paid dues, etc. If this bill is not passed, we’ll need to check whether reporting is expected of our agency. SB 2232 changes definition related to services, and exempts business-to-business sales.
A letter was received regarding a NASBA position, there were no requests for a copy.
COMPLAINTS Four cases were reviewed. There was no objection to closing all four (2012-2, 2012-3, 2012-4 [at Feb. 5, after checking the firm’s website], and 2013-1 [at Jan. 31, unless the CPA doesn’t provide returns as they committed to do]).
Jim reviewed the situation of a licensee disciplined by another state, and is now reactivated and has complied with the stipulated terms.
NEXT MEETING: Monday, May 6, 2013, at noon, at the Grand Forks Brady Martz office.
ADJOURNED: at 1:05 [motion: George; 2nd: Rick].
__________________________________________________________________________
Meeting Notes:
Nov. 16, 2012 _________________________
FINANCIALS The vacation and sick time payable
account will be adjusted in January. The Oct. 31 financial statements
and disbursements 14248 to 14369 were approved [motion: Ron; 2nd:
Rick; carried]. The June 30, 2012 audit was accepted
[motion: Rick; 2nd: Ron; carried]. It was suggested the IRS be contacted
prior to payment, if a penalty should ever be levied. REMODELING: Jim reviewed the
project; it was approved [Motion: Ron; 2nd: George; carried]. NASBA ANNUAL MEETING Jim gave a brief report on the new
Framework for smaller entities. George, Nikki and Faye shared comments about
the NASBA meeting. IFRS appears to be a long term venture, and there are
differences among those countries that have adopted the standards.
Jim reviewed the proposal to consider
financial statement preparation as a bookkeeping service, and the possibility
of expanding the “attest” definition. There is some concern among the Board.
No legislative action will be pursued. NASBA FOCUS QUESTIONS Jim had prepared responses to the
November Focus Questions. Changes will be made in Q6 (to suggest reconsidering
amounts charged for dues and conferences), and Q1 (adding “no” for part b).
The NASBA board asserted a preference to limit committee chair roles to NASBA
directors. REINSTATEMENTS Eight reinstatements were approved --
Mark Jones, Sarah Gustafson, Debra Brown, Sherri Cooke, Robert Reimers, Kathryn Kratoska, Mary
Loftsgard, and George Unruh [motion: Rick; 2nd:
Ron; carried]. The group was OK with not charging a reinstatement fee when a
retired person reactivates. A request for added examination time was
approved [motion: Ron; 2nd: George; carried]. An application was deferred, involving
academic credit for education within a foreign chartered accountant program.
The application will be forwarded to NASBA for equivalency review (upon
applicant approval and submission of documents); there was no objection to
paying the related fee. Jim will gather information from other
boards about experiences with foreign evaluation services. Educational credentials were reviewed for
Dickinson applications filed during the past few years, in light of problems
the school had with foreign education credentials. No problems were found. COMPLAINTS Two complaints were reviewed; prior
complaint details will be included when one file is reviewed. WEBSITE. Staff will review the
Board website, updating as needed.
__________________________________________________________________________
North Dakota State Board of Accountancy ____________________________ GOVERNOR MEETING
Faye recommended that instead of trying to meet with the Governor, we send a
letter and consider a 2013 meeting. Jim will prepare a letter for
Nikki’s signature. AgCOUNTRY CONCERNS
Ron and Jim had met with AICPA staff members about the matter; there is a
current exposure draft directly related. We will await the outcome of the
standards exposure draft [Motion: Ron; 2nd: Faye; carried].
NASBA could weigh in on the issue. We will ask legal counsel to formally
notify AgCountry that we are awaiting the standard setting
process, and will delay a formal response until we know its outcome. Jim will
forward a copy of legal counsel’s letter to the Board. COMPLAINTS
There had been additional correspondence re. Case 2011-1. We will ask legal
counsel to again correspond with the complainant indicating there will not be
further Board action, and to address the “settlement” reference we had made
earlier. OTHER BUSINESS
A negative balance in the payroll tax account has been corrected (a penalty
reclassified to miscellaneous).
Jim will be visiting with the bookkeeper on the matter, and how to avoid a
future issue. He will also have all IRS notices come directly to him. An
appeal will be sent to the IRS, if not already done earlier.
Jim updated the group about a staff member on medical leave. He will contact
the disability insurance carrier about the impact of part time work. Nikki
said to wish her the best.
Discussion re. the NASBA Annual Meeting (Oct. 28-31)
and International Forum (Nov. 1, 2).
____________________________________________________________________________________
North Dakota State Board of Accountancy _________________________
OFFICER SELECTION.
Nikki Schmaltz was selected as president [Motion: Rick; 2nd:
George; carried]. George Kelly will serve as
Secretary-Treasurer. Nikki expressed thanks to Rick for his service.
FINANCIAL MATTERS. Jim shared comments on
the financial statements. He will check on -252.44 balance
in Fed. Tax due and notify the group. Disbursements 14166 to 14247 were
approved [Motion: Rick; Ron 2nd; carried]. Ron commented on
his financial oversight duties.
Comments were made re the Society//Board
sessions; minutes were passed out. The group discussed a staff member’s
medical leave situation. Paid time will be used up by mid-August. Health
insurance will continue for the time being, but we will check on our
obligations / authority. Disability insurance is in place for staff. It was
agreed that vacation and sick leave will not accrue when payroll ends, unless
mandated. Mention was made of Society consideration of the payroll entity.
A five-year pricing proposal had been
received from Drees Riskey
Vallager, for the annual audit. Staff was authorized
to contract each year with the firm [Motion: Ron; 2nd: George;
carried].
NASBA REGIONAL MEETING.
Comments were shared, including that NASBA is offering foreign education
evaluation services, outcome-based CPE, and board liability. A legal counsel
memo was shared indicating that the board is about as well protected as it can
be.
SPECIAL APPLICATION SITUATIONS.
Randy Hauk will be reinstated; one year’s license fee will be required (not
two). We will require formal evaluation of foreign education for all
applicants. If any situations arise like the two special UND cases, they will
come to the full Board for consideration. An applicant was addressed who had
some past legal action; the applicant will be allowed to proceed.
GOVERNOR MEETING.
Faye will contact Gordy Smith and Pam Sharp about the idea of holding another
meeting as was done last Fall. She will work with Jim on the meeting.
CPA OBLIGATIONS UNDER SSARS. AgCountry
wishes to have an official statement re CPAs obligations when involved with
their financial statements; they raised the potential of taking the matter to
Court. We will arrange a meeting with AICPA to discuss the situation. Jim and
Ron will participate. Jim will share background information with AICPA, and
check if public notice procedures apply to such a meeting.
The CPA / LPA files are designated
permanent; there was no proposal to change. The plan is to purge some material
and scan the remainder. Jim and Mandy will review contents to be retained.
COMPLAINTS.
There was no objection to closing file 2011-10. File 2012-2 will be followed
up soon, to obtain a signed agreement letter and a date for web changes. The
website will be examined in about 3 months. The database will be checked to
ensure the CPA involved is coded for compilations, so peer review will be
expected. An email had been circulated to the Board, re. Case 2011-1. A copy
will be sent to Rick. Jim thought he had forwarded the matter to legal
counsel.
P.R. EXTENSION.
There was no objection to moving a review due date to Dec. 2013 (medical
reasons).
_________________________________________________________________________________________________ North
Dakota State Board of Accountancy
_________________________ FINANCIALS Expenditures were approved (motion:
George, Second: Ron; carried). Jim will check on the $262 credit in Board
expenses, reclassify equipment costs to fixed assets, and check on the $997
payment to NDCPAS & notify Board. BUDGET (2012-13) $1200 will be removed from the consultant
expenses, $1200 added to benefits expense. The license fee will be
raised to $85 effective July 2013 (motion: Faye; second: Nikki; carried).
The 2012-13 budget was approved, with specific compensation-related numbers to
be inserted after the joint compensation meeting (motion: Nikki; second:
George; carried). The Board delegates for the joint compensation process
will be Faye and Nikki; they have decision-making authority. The group visited
while Jim and Mandy were absent. The permanent CPA/LPA files will be
digitized, after revising the contents listing in the retention schedule; this
involves state approval. The process will protect from fire, theft, etc.
PEER REVIEW Mandy reported on the review process,
which involves using the Facilitated State Board Access site (FSBA) plus
direct submission by firms without records in the FSBA. CPE AUDIT Mandy reported on the audit process.
Records with listed CPE were selected at random to supply verification for the
listed CPE (public and nonpublic licensees). Results were good, other than an
immaterial error in listed credit for a program. A sample of
out-of-state forms was selected, and their respective boards contacted; all
were in compliance with the home state requirements. COMPLAINTS Three cases will be closed [2011-9,
2010-2, and 2012-1]. Case 2011-10 will be referred to legal
counsel for action. A few “unwritten” matters were addressed.
One CPA will be required to explain and explain remedies for client access
problems that are occurring, and will need to verify CPE taken; these measures
will be required in order to have their certificate renewed. In the case
of another CPA (no longer licensed), there have been a number of client access
problems. Two other situations were addressed – one involving alleged theft (a
pending judgment will be monitored); the second involving legal
actions against the CPA. APPLICATIONS There was no objection to reinstating
four licensees [Mark Jones, Wayne Bradley, Jamie Stair, and Eric Spilde]; all are compliant with CPE obligations. An
exam candidate desired an extension of time credit for a passed part, in light
of having less notice time than is presently the norm; the extension will not
be granted. An applicant has various credits earned in a paralegal
rubric that could perhaps be considered business credits; guidance will be sought from Dr. Harold Wilde. AG COUNTRY MATTERS We will clarify the peer review
obligation, and issue a response through legal counsel (also asking about
removing sentence 2 of the draft). The Appendix material will be provided to
legal counsel, plus the ad placed by an affiliate. There was mention of
contacting NASBA legal counsel. It is not considered a regulation
violation to sign the certification inquired about by
AgCountry.
1099 PROCEDURE In the future, we will include only the
stipend; not reimbursed expenses. NATIONAL LEGISLATIVE ADVOCACY NASBA had sought our involvement with a
national legislative matter; the matter was raised as a possible policy issue.
We will forward such messages to Board members who are free to respond under
their own auspices. Various PCAOB and other documents were
available for review. The question was raised about reviewing the ND-based
firm reports (which are open to public inspection on the PCAOB site). NDSBA, 2701 S. Columbia Rd., Grand Forks ND 58201. 1-800-532-5904 Fax: 775-7430 |
|
|
|
|
|
|
|||
