COCPA NewsAccount - 2012 - May/June Issue by Colorado Society of Certified Public Accountants

NewsAccount May / June 2012

Colorado Society of C P As_

h s u B n o s i l l A & t t o c S m o r f > Aloha COCPA to Move July 2012

Women to Watch Winners Named

Global Economic Forecast Released

Manning for the Win?

Short Staffed in accounting or finance? We can bring you the right people. Whether your company needs a new CFO or additional accounting staff, we can help you find the right professional.

Rhonda K. Trimble, CPA

Thomas J. Trimble, CPA

Trimble & Associates, Inc. offers you: Over 25 years recruiting candidates at all levels ◆ 12 years experience in “Big 4” public accounting ◆ 23 years total public accounting experience ◆ Expertise in accounting, finance and business consulting ◆

If your business has hiring needs, please call us for a free consultation. Remember - You pay no fee unless you select a candidate through us. Potential candidates - call us if you’re seeking new challenges. Candidates never pay a fee, so email your resume to us at info@trimbleassociates.com. We may have just the right position for you. Whatever your business staffing needs, contact us today at 303-779-5800 or info@trimbleassociates.com Let us put our experience to work for you.

Trimble & Associates, Inc. ◆ Contingency Search for Accounting, Finance & Business Consulting 8400 E. Crescent Parkway, Suite 600 ◆ Greenwood Village, CO 80111 Phone: 303-779-5800 ◆ Fax: 303-779-0808 email: info@trimbleassociates.com www.trimbleassociates.com

NewsAccount May/June 2012

Contents Features

} 2 Our Course Through Change

New COCPA Chair Scott Bush loves change and welcomes the challenges ahead.

A Timeless Classic Reimagined At COCPA we're changing the who, how, what, and where of key services. Even the logo has changed.

Keeping CPAs in the Workforce

The need for work life balance affects both women and men who want successful careers and happy families.

Women to Watch Six outstanding CPAs receive the inaugural 2012 Women to Watch award.

Optimism for Global Business

Renew Your CPA License Deadline May 31, 2012

Go to www.dora.state.co.us/registrations/ Renewal/renewalCPA2012.html for complete instructions to renew online. Note that your new license will be effective through November 30, 2013, as the renewal cycle will change next year. The 2012 renewal fee for an active or inactive license is $59. The 2012 retired license renewal fee is $23. You must renew online, regardless of your status.

The first CGMA Global Economic Forecast reflects opinions of more than 600 management accountants.

Departments

14 16 20 20

}

Point/Counterpoint State of the Industry Movers & Shakers Classifieds

May/June 2012

www.cocpa.org

Chair Column

A bi-monthly publication of the Colorado Society of Certified Public Accountants Vol. 58, No. 1 May | June 2012

Charting Our Course Through Change

Board of Directors Scott E. Bush, Chair Marc C. Hendrikson, Vice Chair Lora L. Finley, Treasurer Michael S. Bearup, Immediate Past Chair Mary E. Medley, Secretary

A new fiscal year brings a new chair to the leadership of the Colorado Society of CPAs. May 1st, Scott E. Bush, CPA, CVA, took the reins for the coming year. He loves change and welcomes the challenges ahead.

NewsAccount

Directors Carrie J. Bartow, Steven R. Corder, Peter J. Derschang, Ben T. Hrouda, Christine Riordan, Debbi C. Warden Editorial Board Jack Allgood, James M. Boak, Frances J. Coet, Kay R. Dragon, Deanna C. Duell, Jennifer Emerson, Mira J. Finé, Georgia Z. Phillips, Patrick A. Lytle, Mark Paller, Jennifer C. Pitkin, Tawyna Ramirez, Ronald O. Reed, Scott K. Sprinkle, Barbara J. Tedesko, Mark A. Torrey, Gregory A. Truitt, R. Stephen Van Meter, Michael West Mary E. Medley, President/CEO Elizabeth M. Julin, Deputy Director Krista Flynt, Editor/Publisher Natalie G. Rooney, Contributing Writer NewsAccount (ISSN #10899952) is published bimonthly by the Colorado Society of Certified Public Accountants, 7979 E. Tufts Ave., Suite 1000, Denver, Colorado 802372847. NewsAccount is published in January, March, May, July, September, and November and reports information, news, and trends in the accounting profession. The Colorado Society of CPAs assumes no liability for readers’ business decisions in reference to advertisements or other information included in this publication. Membership dues include a $9.90 one-year subscription to NewsAccount. Periodical postage paid at Denver, CO. POSTMASTER: Send address changes to NewsAccount, Colorado Society of Certified Public Accountants, 7979 E. Tufts Ave., Suite 1000, Denver, CO 80237-2847. Net press run = 8,550 copies; sales through dealers and carriers, street vendors, and counter sales = 0; paid or requested mail subscription = 8,450; free distribution by mail = 50; free distribution outside the mail = 0; total free distribution = 50; total distribution = 8,500; office use, leftovers, spoiled = 350; returns from news agents = 0; total sum = 8,850; percent paid and/or requested circulation = 99%.

(303) 773-2877 • (800) 523-9082 Fax: (303) 773-6344 • cpa-staff@cocpa.org www.cocpa.org NewsAccount is available in PDF format online at www.cocpa.org.

NewsAccount May/June 2012

Colorado Kid Scott Bush enjoys doing new things and thinks that being on the forefront is exciting. The Colorado native was going to major in Computer and Information Systems (CIS) before anyone really knew what that was; he became a partner in his firm when he was just 29; and he earned the CVA (Certified Valuation Analyst) designation before it was trendy. Being ahead of the curve is just his style. Born and raised in Denver, Scott was a typical Colorado kid, racking up a lot of vertical feet each winter in Steamboat Springs where his parents had a condo. “Steamboat is still one of my favorite places,” he says. A varsity basketball player, he also ran track in high school and then again in college while attending the University of Northern Colorado. Scott was all set to major in CIS when he took a principles of accounting class. “It was like second nature to me,” he said. While his peers struggled, he excelled. A professor explained all of the options a career in accounting could offer, and from there his course was pretty much charted. After graduating from UNC, Scott decided he needed a change of scenery. He wanted to do something different, but he didn’t want that something different to be too far away from his roots. For his first job, he landed at a regional accounting firm in western Nebraska, Fred A. Lockwood & Co. P.C. “I knew I wanted to be in public accounting, and I knew I wanted to be at a smaller firm,” Scott says. “At a regional firm I had the opportunity to see and be involved in all sides of the practice.”

Fast Track to Partner After two years in Nebraska, Scott made the move back to Colorado for his second job in public accounting to the firm where he would become a junior partner after just six years and a full partner after eight — a pretty good showing for a guy who originally planned to major in computers. “Northern Colorado was experiencing a lot of growth at the time, and the firm was poised for growth,” Scott reflects. “Mark (Soukup) gave me an incredible opportunity, and that enabled me to buy in as partner. The time has flown by; it’s been a great twenty-one years.” Originally founded by Soukup in 1979, Soukup, Bush & Associates, P.C. in Fort Collins is a boutique tax firm serving higher end individuals and businesses, small and medium-sized enterprises, and privately held companies. As a partner and shareholder, Scott manages the tax and valuation practice, as well as the firm’s audits, reviews, and compilations. Scott says embracing change and serving clients make his work fun. “CPAs bring a lot of value to clients and to the public as a whole. The concept of being able to serve people is what really attracted me to the profession in the first place. I love public accounting. Helping people sort out their tax situations, their tax planning, and assisting them with something that’s incredibly complex is very rewarding. It’s like helping them piece together a great big puzzle!” Scott is understandably proud of the firm’s team of 21 people who work together to provide clients with outstanding service. The firm has made an effort to help employees balance their work and personal lives, even during the hectic period between January and April. “We empower our associates to provide our clients with legendary service, and we celebrate our successes together,” Bush says. The lucky staff at his firm each receives seven mas-

Other issues Scott looks forward to tackling include a new longterm plan for the COCPA. “The 20/20 Committee did a great job planning for the five to ten year span we’re in. Now it’s time to look ahead at the next five to ten years and talk about what’s happening for the profession and the Society.” On the professional issues scene, Scott looks forward to resolution on private company accounting standards. “As a CPA in a local practice dealing with private clients, I’m glad the AICPA is addressing this issue. After seeing the cost and complexity that are burdening privately held companies, it’s clear this is an issue that needs resolution.”

Out of the Office

sages over the course of tax season. “How we treat each other and how we treat our clients is very important to us as a firm,” he says.

Professional Pride Scott’s involvement with the COCPA began pretty quickly after his return to Colorado. From getting involved in chapter activities to serving as chapter president, he eventually served on the COCPA board and as member of various committees, including the Investment Committee. He also chaired the Audit Committee. “Over the years I got to know people through COCPA events and CPE, both taking courses and teaching them,” Scott says. “It’s been important to me to give back and develop relationships with other CPAs around the state.” Now Scott looks forward to giving back to the profession in a bigger way. As chair-elect last year, he attended AICPA Council meetings and began networking with members of other state CPA societies in preparation for his role this year. He’s looking forward to carrying aspects of his firm, such as legendary service and celebrating successes, with him as he leads the COCPA this year. Scott also relishes the transitions and changes ahead which include things like the COCPA’s move to a new office, improving member service, restructuring CPE, and implementation of a new association management system. “Transition will occur, so I like to look at it positively,” he says. “I like to take on the tactical challenges to make sure things go smoothly and effectively.”

If Scott isn’t at the office or at a COCPA function, you’ll probably find him working with his 90-gallon and 125-gallon salt water marine reef aquariums. “I had fresh water aquariums as a kid,” he says, “but I always wanted to try salt water.” His wife, Allison, was initially opposed to the idea of giant aquariums in the house, but then, “she saw a porcupine puffer and fell in love with it.” Suddenly, Scott had his aquariums. “It’s like a big chemistry experiment,” he says. In the summer months, if you’re looking for Scott in the evenings, check the local ball park where he plays softball each week with a team he has competed with for the past 22 years. “We’ve have had the same core group of seven or eight guys playing for the last twenty years. We went from being the young guys who won the league to just trying to be competitive and have fun,” he says. Scott, Allison, and their son, Nathan, a freshman at CSU, love Hawaii and have made countless trips to enjoy the aloha spirit. Avid fans of the flora, fauna, and festive attire the islands are known for, they usually opt for a week-plus stay on Kauai at least once a year. Typically in June, you can find Scott hiking Kauai’s Na Pali Coast or playing golf at his favorite course, Kauai Lagoons. He’s even tried his hand at surfing. Ever the pragmatist, he decided a while back to leave that sport to the locals. He still likes to ski when he can, and he’s getting back into running, a long-time passion. He’s completed four half-marathons in the past few years. “I’m just trying to keep in shape,” he laughs. For a guy who loves change, embraces the excitement of being at the forefront, and enthusiastically serves clients, his community, and his colleagues, leading the COCPA is a special opportunity — for him and for the organization. Let him know what you’re thinking at sbush@ cocpa.org. He’s looking forward to hearing from you. s

SAVE THE DATE CPAs Make a Difference Celebration November 8, 2012 — Denver, CO 2012 Everyday Heroes and Heroines Nominations Deadline August 30, 2012 For details, contact Terry Cervi at tcervi@cocpa. org, (303) 741-8610, or (800) 523-9082, ext. 110. May/June 2012

www.cocpa.org

Risk Management

A Timeless Classic Reimagined Imagine you’re 108 years old today. Consider the changes you’ve seen, the choices you’ve made, and the events you’ve witnessed. Your history is filled with the people you’ve known, challenges you’ve addressed (both anticipated and unexpected), and the usual opportunities and demands of a long life, well-lived, for the most part. The past few years have been volatile ones filled with change and experiences so new they defy comparison with what came before. It’s time for deep reflection. You’ve done this before many times. But due to such fast-paced changes, this is a critical turning point. You’ve crunched the numbers, consulted experts, and engaged those close to you to develop a new you, refreshed and ready for what Dr. James Canton calls the “extreme future.”

NewsAccount May/June 2012

You’re the Colorado Society of CPAs, and you’re moving – literally and figuratively.

Structure Follows Strategy Public member Dr. Christine Riordan articulated this during the Board of Directors’ 2012-2013 budget approval process. We’re changing our structure based on these four strategic and two tactical themes: • Preserving and enhancing membercentric, high quality service and experiences • Ensuring financial viability of the organization, especially in CPE • Facilitating transparent, effective communications with members and staff

• Retaining qualified, member serviceoriented staff with strong skills fit • Achieving a break-even budget and results for FY 2012-2013 • Transitioning successfully to the new Colorado Society of CPAs

Aligning perfectly with these themes is Chair Scott Bush’s emphasis for this year – “charting our course through change.” It’s an exciting time, filled with opportunity and redolent of how far this timeless classic has come.

First Things First We’re changing the who, how, what, and where of key COCPA services. As you can see, even the ubiquitous Colorado Society of CPAs logo has undergone a facelift.

We’ve created a new Member Center staffed by three of our veterans in member service: Jana Coté, Pamela Galey-Coleman, and Gena Mantz. They are your first stop shopping network for answers and assistance. Our new association management system, installed this spring, will provide you and them with the necessary technology to handle both in-person interaction and online support. As immediate past chair Mike Bearup says, “We’ve got your back so you can do your business,” thanks to this new team and our continuing commitment to meeting your needs and exceeding your expectations. We’ve streamlined CPE offerings and added technology-based alternatives. Want to gain the knowledge without the travel? Check out the many courses and conferences available by live-streaming video right to your desktop. Take advantage of CPExpress online self-study and informative webcasts co-sponsored with the California Society of CPAs and other high quality providers available at the click of a mouse. In late July, we’re moving to more efficient office space at Belleview Tower, Suite 200, 7887 E. Belleview Ave., Denver. We’re consolidating our footprint to reduce costs and maximize service. Our new home will feature a large, fully-equipped classroom, two meeting rooms, and that warm, welcoming environment you expect. You’ll continue to enjoy easy access, great food, and free parking. We’re launching CPAConnect, a new, technology-based, e-communities platform, which will enable you to communicate easily with those of like interests. Over time, and with your participation, CPAConnect will grow to meet your needs for targeted, specialized communication and interaction with your colleagues, whether in professional, technical, or personal interest areas. We’re refreshing www.cocpa.org, adding features, enhancing functionality, and creating a more user-friendly online experience. In tandem with that project, which will be completed with the launch of the new site this summer, we’ve transitioned to COCPA as the acronym. At a recent Editorial Board meeting, a member asked, “Why are you doing that?” Yes, there is a story behind why the web address always has used COCPA, while CSCPA appears everywhere else. Historically, folks

usually called this organization the CSCPA or the Society. In 1997, when Microsoft approached state CPA societies about assisting with the creation of individual state websites, the protocol called for us to use the two-letter postal code for our state plus CPA.org. We and many other states adopted that approach, and www.cocpa.org was born. We continued to use CSCPA as the acronym, nonetheless, rather than buck the tradition. With all the changes we’re implementing, the time is right to align, simplify, and create a new tradition.

There’s More Beginning with this NewsAccount, you’ll receive the publication in print, thanks to the U.S. Postal Service, and via email (if we have your email address and you’ve told us you want to receive information electronically). If two copies are too much of a good thing, just log on to www.cocpa.org and update your member profile to let us know if you prefer to receive NewsAccount in print or by email. Big changes bring new energy and new perspective. And, they often mean letting go of habits, routines, what’s comfortable, and familiar faces. As a result of staff restructuring, we've said goodbye and best wishes to two staff members who embody the COCPA member service culture and spirit: Ruby Jewell and Gina Ortega-Emery. Where’s Ruby? She’s spending more time

with her family and traveling the country visiting friends. If she’s not loving retirement too much, we look forward to her return for CPE season, to serve up nourishment and hugs, Ruby-style. Gina is focusing on her family and on pursuing her education, which she was accomplishing part-time while handling her CPE registrar duties. Both these familiar faces already are missed. We’ve also bid farewell to CPE Operations Manager Erica Pizano-Navarro, who is relocating to Arizona with her recently promoted spouse. She too will be missed. Her successor, Brehan McDonough, stepped into Erica’s pumps with enough energy to compete with that famous bunny.

What’s Next? Expect even more change as this timeless classic continues to focus on delivering effective, high quality continuing professional education for a reasonable price — we’re not done on this front. Expect things to look different as we evolve member communications, move into new digs, and address the challenges ahead. We will continue to deliver exceptional service and advocate on the profession's behalf, to guarantee your success and the success of those you serve. As we reimagine the COCPA for the future, let us know what you'd like to see. Share your thoughts with CEO Mary E. Medley at mmedley@cocpa.org. s

TheMember Service Team

These individuals will answer your questions, help you with CPE and event registrations, update your member record, process your dues payment, and more. Reach them at (303) 773-2877, or (800) 523-9082. Improved convenience meets legendary service.

Jana Coté

Pamela Galey-Coleman

May/June 2012

Gena Mantz

www.cocpa.org

Striking a Balance

Family-Friendly Policies Keep CPAs in the Workforce

istorically, the accounting profession has had the market cornered on long hours and inflexibility, especially public accounting during tax season. But over the years, accounting firms have realized the importance of helping employees find that critical balance between professional and personal success. Early work-life balance programs in the accounting profession were focused on women who were leaving their positions to stay home and raise children. Today, with more women than ever choosing accounting as their profession — a recent study shows women are half of newly hired accounting graduates at CPA firms — employers are expanding their efforts to keep women in the accounting talent pool. And, these days, work-life balance has grown into more than helping new mothers; it’s an issue affecting both men and women who want successful careers and happy families.

Flexibility for All Rebecca Himango, CPA, PHR, human resources senior manager at Ehrhardt Keefe Steiner & Hottman PC (EKS&H) in Denver says the firm offers flexible programs that all employees can use. One of the most popular options is the

NewsAccount May/June 2012

“11-month year.” This program allows any full-time employee to purchase up to four weeks of extra vacation. Approximately 50 percent of employees use this option. Another four percent of employees work a parttime schedule. “Everyone has a different idea of worklife balance,” says Himango, who used to work full time but now works a three-day week to accommodate her own family. “Some people work longer hours because that’s what they want to do, while other people work lesser schedules. We encourage our employees to voice their needs; then we do what we can to work with them and accommodate their requests.”

People as Assets At the very root of keeping both men and women in the workforce is the concept that people are an organization’s best assets. Losing a seasoned employee means years of experience and knowledge walking out the door. “Our strength lies in the fact that we realize our people are our best assets,” says Himango. “Our motivation is to keep our talent working with us. We need to provide flexibility to keep them.” Tara Adis, CPA, senior tax manager for Anton Collins Mitchell LLP (ACM), not only coordinates programs for the firm, she also uses them by working a reduced schedule and mentoring other women at the firm. She leads a group to help women figure out how to have a career and a family in public accounting. These women aren’t only new mothers; they’re also newly married women who are learning to juggle priorities as well as women whose family needs are everchanging. “We want to be sure people don’t think the only way they can have a family is to leave public accounting,” she says. “We want to help them plan ahead for their needs so we can give them the necessary flexibility. We want them to know they don’t have to look elsewhere. Ask the questions, tell us what you need, and we’ll support you.” Adis herself left public accounting to

BY NATALIE ROONEY be a full-time mom. “I made it about nine months, but it was difficult for me,” she says. “I’m not one to stay home. It’s just not who I am. When I was interviewing with ACM, (Partner) Greg Anton said to me, ‘Don’t blame anyone else for your career because you worked too much. Take ownership and tell us what you want, and we’ll support you.’ He was right. That was a really poignant moment for me.” The monthly working mothers group at ACM is about connecting, sharing simple ideas for being efficient at work, and climbing the corporate ladder, as well as talking about rush hour, dinner, and soccer, Adis says. “There are so many women in public accounting, and we shouldn’t have to make a decision to choose between our families and our career. The firms that understand this can hold their heads high and retain these talented women.”

How They’re Making it Work Diane Kirk, CPA, Senior Signing Manager, EKS&H: Reduced hours, flexible schedule When Kirk’s children were in elementary school, she joined EKS&H with the understanding she would be working a reducedhour, flexible schedule. “When I first joined the firm, I worked close to a sixty percent work week,” Kirk recalls. “I left at two or two-thirty every afternoon for after-school pickup and activities.” As her kids have grown, she has bumped up her work week to about 70 percent of full-time. “The flexible schedule was what kept me in the public accounting workforce,” Kirk says. “It allows you to change as your lifecycle, your commitments, and your children’s needs change. Over the years I could volunteer in the classroom, leave for conferences, and care for my kids when they were sick,” she says. “The flexibility has allowed me to really balance my personal and professional lives and get the best of both.” Adam Allan, CPA, Lang Allan & Company, CPAs PC: Tag team schedule Two years ago, Allan purchased a small

CPA firm. In July 2011, his daughter was born, the first child for Allan and his wife, who is an attorney. Allan took a week off after his daughter’s birth, and his wife stayed home for several months. Then, she returned to her career. The Allans coordinate their schedules so they can both continue in their professions and spend time at home with their daughter. Allan’s wife goes to work early while he stays home for the morning routine. His meetings are typically scheduled after 9 a.m. to allow for the at-home time. Child care arrives, and Allan heads to the office. His wife returns home by 5:15 p.m. for her own time with their daughter. “During busy season, my goal is to get home three out of five nights a week before Addison goes to bed. As an owner, I have that luxury, but there is definitely a responsibility to get more work done on the weekends.” Allan says having a child has made the family more organized and scheduled. It also requires more communication both at home and at the office. “People understand, but the work still needs to get done. Everyone is professional. The staff has the leeway to do what they need to do and when they need to do it. Everyone knows their roles. I don’t need to micromanage them.” Mikayla Hartl, CPA, Audit Manager, Eide Bailly LLP: Reduced schedule Hartl admits it was “challenging and heartbreaking” to return to work after her son was born in December 2009. She took 3 ½ months off before returning. “The first week was rough,” she says. “But once I got back into the swing, I found I had missed work, missed using my brain, and I was definitely glad to be back.” Eide Bailly offers employees the option of working a reduced schedule of half-time or three-quarter time. In August 2010, Hartl shifted to a three-quarters schedule. She found her balance by embracing the concept of ‘wherever you are, be there.’ “When I’m at work, I’m at work, and when I’m at home, I’m at home,” she says, admitting that’s her biggest challenge. She also joined a group of moms, both working and non-working, with children the same age as her son. “It’s an avenue to vent and know the feel-

“

Mentor Moms

The flexible schedule was what kept me in the public accounting workforce. It allows you to change as your lifecycle, your commitments, and your children’s needs change. — Diane Kirk

ings you have are normal,” she says, adding that Eide Bailly is very family oriented and understands family commitments. She keeps life organized by carefully tracking her hours and keeping her online calendar updated so people can see when she is and isn’t available. Good communication and delegation are both important, Hartl says. “Tell people what you have to do. I tell my team, and they understand. We all learn and grow in the process.” Hartl says she still feels a week behind at home, and a week behind at work, but that comes with the territory. “You have to get to the point where it’s OK. When you take the time to go to the park, leave work back at the office, and look into your child’s eyes and see a smile, you realize laundry can wait. Doing your expense report can wait. There are things that can wait, and not everything has to be done perfectly or right now. Life is too precious.” Patrick Medlin, CPA, Audit Manager, Anton Collins Mitchell LLP: Setting priorities Even though Medlin’s wife decided to stay home with their children, he still struggles with making sure he is giving his full effort at both work and home. Early on, he got a little wake-up call from one of the firm’s partners while on an engagement. “My wife called to say that both she and my son were sick. I told her she was going to have to work through it. I couldn’t leave the audit room in the middle of busy season,” he recounts. “I hung up the phone, and the partner told me to go home.” At a recent firm meeting, Medlin says

Balance

PricewaterhouseCoopers LLP created Mentor Moms, an online database and virtual community connecting new or soon-to-be mothers with more experienced mothers. Mentors and mentees create a profile and match themselves up. Links, resources, and discussion areas allow moms to connect. “We’re not working with a traditional model anymore,” says Suzanne Vanderhart, SPHR, Rockies Market HR Leader for PwC. “We’ve seen improvement in retention, not only because of Mentor Moms, but also because of other programs like flexible work arrangements, parttime options, and telecommuting. It’s critical for us to get this right. We don’t want to lose their knowledge, skills, and experience.” Angela Gunter, human resources manager at PwC’s San Jose office, used the Mentor Moms program as a mentee and is now a mentor. She began using the service when she was pregnant and had a lot of questions. “I knew nothing about kids. I didn’t know how I was going to make it all work,” she says. “I wanted to hear from someone that I could come back to work and have both a career and a family. And then I also needed practical advice, like how to approach my boss when I was feeling sick.” Gunter says Mentor Moms is about sharing best practices. “Our moms told us what they needed was a resource they could talk to about issues such as how to get on a reduced hours schedule, how to create boundaries on my time, how to handle leaving early to pick up my child. How do I communicate this without impacting my career or creating a negative stigma?” s

Continued on 8 May/June 2012

www.cocpa.org

2012-2013 Board of Directors

Scott E. Bush Chair

Marc C. Hendrikson Lora L. Finley Vice Chair Treasurer

Carrie J. Bartow

Steven R. Corder

Balance

Continued from 7

other associates were exchanging stories and challenges. The message: employees are not to feel like you can’t make it work. Medlin admits balancing work and family life is a daily challenge. “It’s easy to get caught up in deadlines, and to say, ‘I’ll work late tonight, or I won’t take the kids to school this morning because I have a deadline,' but the next thing you know you’re

Michael S. Bearup Past Chair

Peter J. Derschang Ben T. Hrouda

constantly missing things,” he says. One strategy Medlin uses is to make sure he gets important dates on his calendar early so he can see things coming and plan ahead. “A big positive with public accounting is the flexibility. Even though you work some long hours, you can catch up on things in the evening if you have to leave for an appointment or go to an event for your kids.” Medlin’s ACM performance coach also has young children and encouraged Medlin to develop a system that works for his family and stick to it. “I’m definitely learning from other people in the office,” Medlin says. “I don’t have it all figured out yet.” But he is taking his coach’s advice by setting his priorities and sticking to them. Right now, it’s making sure he gets home almost every night to see his kids before they go to sleep so he can read to them. “You need to figure out your priorities and how to make them work.”

Finding Your Own Balance Looking for ways to balance your personal and professional life? Here are a few tips: • Ask. “If you desire a different schedule, ask.” says Himango. There is sacrifice for working less, she says. Career progression may slow due to the fact

NewsAccount May/June 2012

Mary Medley Secretary

Samuel D. Cheris Special Advisor

Christine Riordan

Debbi C. Warden

that you will have less experience than your full-time peers. Ultimately, it’s about finding in your heart what’s right for you, however, nothing will happen if you don’t mention it. • Work to make it work. “Don’t take advantage of your coworkers,” says Kirk. “You need to continually work at making the arrangement work. I still work at it.” And even though her kids are older, Kirk says she still gets frazzled sometimes. “If someone tells you they never get frazzled, they aren’t telling the truth.” • Organize and prioritize. Use technology to your advantage. Keep your calendar updated. • Be flexible yourself. It’s not a six-houra-day job. You might have to sit down and work in the evening. “Clients know I’m there when they need me,” Kirk says. • Communicate. “It’s amazing how many people don’t think they have options, and they do,” says Adis. Himango has some advice for firms as well. “It’s not always the easy route to maneuver around flexible schedules, but the talent and energy you gain will be worth it. Employees come back each day grateful for the flexibility, and they try their hardest. It’s worth it in the end.” s

MoneySmart

Decisions

Start

Young

Kids and teens get account opening gifts, incentives for saving, special activities and seminars with their Money Space® accounts at Ent. Let Ent help you raise moneysmart kids.

Open a Money Space account at any Ent Service Center.

Ent.com/MoneySpace (719) 574-1100 or 800-525-9623 Ent is a community-chartered credit union Equal Opportunity Lender | Federally insured by NCUA © Ent Federal Credit Union, 2012 • Ent is a registered trademark of Ent Federal Credit Union.

May/June 2012

www.cocpa.org

2012 Women to Watch Recipients Named Emerging Leaders

egan Donohue, CPA

Assurance Manager Ernst & Young LLP, Denver

Jason Sibley, audit partner-in-charge at McGladrey & Pullen LLP nominated Megan for her community service, leadership, and involvement with recruiting efforts while at the firm. The list of organizations with which Megan has been involved includes: United Way, Junior Achievement, Denver Rescue Mission, Big Brothers Big Sisters of Colorado, Food Bank of the Rockies, Warren Village, and Habitat for Humanity. According to Sibley, “Megan has individually sought out ways to engage our employees to give back to those around us.”

ina Currigan, CPA Advisory Director

KPMG LLP, Denver

Partner Holben Hay Lake Balzer, CPAs LLC, Denver

In his nomination, Bill Holben writes, “Sheila is relatively young to have accomplished so much. I work with her every day, and I think she has an even brighter future ahead of her.” Past president of the COCPA Educational Foundation, former board member, and committee chair, Sheila also volunteers at Sacred Heart House and Light of the World Food Bank. Today, she organizes and coaches softball teams for girls and young adults. Sheila also chairs the business curriculum advisory committees for Columbine, Chatfield, and Overland high schools.

Recognizing Colorado Leaders

The afternoon reception at Kevin Taylor’s at the Opera House, Denver Center for the Performing Arts Complex, will feature Dr. Christine Riordan, Dean of the University of Denver Daniels College NewsAccount May/June 2012

heila Balzer, CPA

Nominated by KMPG office managing partner Mike Bearup, Nina is known for her internal thought leadership, as an excellent mentor, and for leading by example. Joan Mazak, president and CEO of Colorado’s Make A Wish Foundation, writes, “Nina has been a volunteer for the Make-A-Wish Foundation of Colorado since 2009 and is a tremendous asset to our Young Professionals group. Her creativity and leadership skills have helped to build one of the strongest groups we have ever had.”

n May 23, 2012, the Colorado Society of CPAs will recognize six outstanding accounting professionals for their significant contributions to the profession, their communities, and their colleagues through a new program co-sponsored with the AICPA Women’s Initiatives Executive Committee: the Women to Watch Awards. These emerging leaders and three experienced leaders were selected to receive the inaugural awards from a well-qualified group of nominees.

of Business, who’ll speak on leadership, remarks from AICPA Chair Greg Anton, and the awards presentation. The emerging leaders are professionals who have demonstrated leadership and have made significant contributions to the profession and their communities, including involvement with their alma maters or other local colleges and universities, while still on the path to the highest levels of advancement. The experienced leaders have attained leadership positions within their organizations, have made major or unique contributions to the profession, have been published, and not only help to improve their workplaces but also mentor others. s

W W

Experienced Leaders

Jonathan Trull, IT Deputy State Auditor, writes, “Dianne has proven herself to be a strong and innovative leader. (She) has pursued unique initiatives to enhance awareness of both the Office of the State Auditor and the auditing profession…” Colorado Assistant Majority Leader Sen. Lois Tochtrop, a current member of the Legislative Audit Committee, reports, “During the 2012 legislative session, Dianne implemented a new, ongoing initiative to provide information to the General Assembly about audit recommendations not implemented by state agencies. This…has enhanced (our) ability to hold state agencies accountable for providing efficient and effective services to Colorado taxpayers.” In addition, Dianne envisioned and implemented a more succinct and meaningful Statewide Single Audit report focused on the most important issues. Staff applaud her positive changes to improve the office culture and environment. One commented, “The most important improvement Dianne has made is increased communication. She has greatly improved transparency into senior management’s thinking on the office’s strategic direction and current initiatives, and she is very open and accessible.” Another noted, “Dianne set a new tone of energy, innovation, and forward thinking in our office by implementing audit projects with cross-functional teams…” “Chats and Chocolates” events on Friday afternoons, Dianne’s White Board for two-way communication, and formal media outreach efforts now in place are just a few examples of the many other ways Dianne Ray demonstrates her experienced leadership.

In addition to leading the UNC accounting department and teaching, Karen is vice chair of the Colorado State Board of Accountancy, western regional director and education committee chair for the National Association of State Boards of Accountancy (NASBA), and a member of the American Accounting Association (AAA) Leadership Group. A regularly published author, she led the school’s Assurance of Learning Committee for its AACSB accreditation reaffirmation. This work resulted in the school being awarded UNC’s excellence through performance assessment award. In his nomination, UNC Prof. Ron Reed writes, “I have directly observed her (Karen) applying her leadership skills in a wide variety of situations and have seen the positive impact of her leadership involvement.” NASBA vice chair Gaylen Hansen adds, “Dr. Turner…has distinguished herself in various leadership positions. She regularly collaborates with the AICPA and AAA to proactively address issues relative to college curriculum and state jurisdiction of education rules. Former student Giana Mazza describes Dr. Turner as “a southern woman with a modern twist. She has the innate ability to capture the attention and respect of her May 23, 2012 students and peers 4:30 to 6:30 p.m. Kevin Taylor’s at merely by her presthe Opera House ence. Her mentorDenver Center for the ing role, friendship, Performing Arts and inspiration to 14th and Curtis St., Denver lead are priceless.”

ianne Ray, CPA State Auditor

Colorado State Auditor, Denver

aren Turner, Ph.D., CPA

Associate Professor, Director, School of Accounting & CIS, Monfort College of Business, University of No. Colorado, Greeley

ira Finé, CPA National Director of Tax Operations

Hein & Associates LLP, Denver “Mira has dedicated over 30 years of service to the accounting profession…and has given back in many ways including leadership positions in both the COCPA and AICPA,” writes Jim Brendel, her partner at Hein. Whether it’s writing a technical article for coloradobiz magazine, The Denver Business Journal (DBJ), or another publication; answering questions — every year since its inception — for 9NEWS Taxline call-in program during tax season; mentoring countless young CPAs; or serving on the Children’s Hospital Board; Mira gives of herself without limit. She was recognized with the COCPA Everyday Heroine Award in 2003 and named a DBJ Power Book recipient. Chair of the COCPA in 2006-2007, Mira is a member of the Denver Partnership, the AICPA Joint Trial Board, and the planning committee for Girls Count and the Women’s Foundation Community Project. She is a regular on radio and television tax programs and speaks frequently for various colleges, universities, and professional organizations. If you need a volunteer, a technical tax resource, or a great listener, call Mira. She always says, “I can do that.”

Tickets $50/person

Make your reservations at www.cocpa.org. For more information, contact Liz Julin, ljulin@cocpa.org, (303) 741-8607.

May/June 2012

www.cocpa.org

CGMAs Cautiously Optimistic About Global Business Prospects Confidence among business leaders worldwide in the global and national economies, and in their own organizations, is growing; however, overall they remain cautious in their optimism about the economic outlook, according to the inaugural CGMA Global Economic Forecast, covering the first quarter of 2012, performed by the American Institute of CPAs (AICPA) and Chartered Institute of Management Accountants (CIMA). The quarterly worldwide forecast reflects the opinions of more than 600 CFOs, CEOs, and other management accountants on economic conditions and other top-priority issues. It also underscores the management accountant’s broad business perspective and contributions to overall performance. The first quarter 2012 forecast was performed between February 22 and March 13, 2012, along the following regional breakdown that represents more than 60 countries and territories — U.S., Asia, Europe (excl. UK) and the UK as well as Rest of World Developed (RoWD) and Rest of World Emerging (RoWE) groups.

Global Economic Index measurably improved since the AICPA and CIMA performed a baseline survey in the fourth quarter of 2011. The Index, which is a comprehensive gauge of executive sentiment within the survey, includes 10 equally weighted forecast factors. These factors range from global, domestic, and organization economic optimism to expectations for expansion, revenue, profits, headcount, and spending. The Index climbed seven points to a score of 65 in the first quarter of 2012. On a scale from 0 to100, a score of 50 is considered neutral, above 50 indicates a positive sentiment, and below 50 signifies a negative sentiment. Although global economic optimism achieved the strongest quarterly increase, its score of 37 is the lowest-scoring factor by a significant margin and well below the Index’s “neutral” 50 reading, indicating continuing concern over a global economy still in flux. Respondents are more confident about their own local economies and the prospects for their own companies — domestic economic and organization optimism earned scores of 55 and 71, respectively.

Quarter-to-Quarter Improvement across Economic Indicators

Cautious Optimism among CGMAs

All factors included in the Chartered Global Management Accountant (CGMA)

CGMAs’ positive outlook for the global economy doubled since the previous

NewsAccount May/June 2012

quarter. Yet, at 18 percent it languishes. In comparison, nearly twice as many survey participants (35 percent) have favorable expectations for their domestic economy — a 12 percentage point improvement over the last quarter — though a substantial 29 percent are pessimistic. A quarter-to-quarter jump from 46 to 56 percent creates a solid majority of global executives who have an optimistic outlook for their own organization. “Management accountants are in a unique position to assess the future of the global economy as they drive the strategic and financial decisions of their companies,” said Arleen Thomas, CPA, CGMA, and AICPA senior vice president for management accounting. “The aggregate sevenpoint rise in the CGMA Global Economic Index since the last quarter indicates an important and positive economic trend. In the U.S., the story is even stronger, with organizations feeling increasingly confident about the overall domestic economy, as well as prospects for their own businesses.” Although some industries are clearly faring better than others in terms of optimism, forecast findings improved quarter-overquarter for all industries. Those with the most confidence are manufacturing (63 per-

CGMA

Continued on 15

Not-for-Profit Management

Looking Beyond the Numbers

ssessing the organizational capacity of a not-for-profit organization is tricky. Reviewing the financials will give you a good idea of its health. However, there are key indicators of organizational viability that go beyond the numbers. Evaluating with an eye to whether it is in survival mode, sustainability mode, or already making a significant impact is a huge part of the equation. To understand this, you need to dig deeper. I’ve been assessing not-for-profits for several years, and there is always an important story line that you can’t get from the numbers alone. Organizational capacity self-assessments and check lists were traditionally the go-to tools for not-for-profits, but this is changing. Having “outside eyes” on the business is becoming a best practice. Take the case of the not-for-profit which assesses itself as healthy, all the while running out of cash and not knowing it. It didn’t know what it was leaving out of the picture. A good external assessment may take a few days or a few weeks and will look at a variety of areas in addition to the financials, cash flow, audit reports, and 990s. Not-for-profits have an important distinction from for-profits. They have the competing goals of balancing fiscal health with the squishy mandate of executing a greater mission. Not-for-profits are tax-exempt because they bring a larger community benefit, and as a society, we have decided to subsidize their existence in this way. Most donations come with the understanding that the money will be used to support the mission. That means different things, but I like to summarize it as “a child educated, a puppy saved, or a cause promoted.” Study after study has shown that people give because they are emotionally connected to the mission. People don’t underwrite causes because they have low overhead or good ratios. And individual donors make up about 75% of overall donations, so the mission usually trumps. Many organizations haven’t found the right internal balance of mission (to satisfy donors, clients, and passionate employees) and long term viability.

• The strategic and operational plans: Do they exist? What factors drive day-today decisions? • Diversification and consistency of the revenue stream: Can losing one funder put the organization in a tailspin?

MICHELLE BARNES, MBA

The key indication of whether an organization is in survival, sustainability, or significance mode is the sophistication of the Executive Director/CEO. Regrettably, many not-for-profits hire or promote the person they believe they can afford, instead of the person who can take them to the next level. I’ve seen amazing program directors promoted to the Executive Director (ED) role after which the organization trends downward due to lack of expertise and interest in developing revenue streams, managing a board, and analyzing overall effectiveness. Since 50% of taxexempt organizations have annual revenues of less than $25,000, many have volunteer leadership which has its own set of opportunities/ challenges. Not-for-profits are significantly harder to lead due to the governance challenges and revenue being tied to “doing the right thing” rather than competitive market factors. This is not a role for a rookie. Passion is necessary but not sufficient. Bottom line, the health of the organization is highly dependent on the capabilities of the leader. Other key organizational assessment factors include: • The overall governance model for the organization. Is the board providing the appropriate fiscal oversight and strategic direction? Is the board engaged around the mission and vision of the organization? • The relationship between the board leadership and staff leadership: A dysfunctional relationship can stop a not-for-profit in its tracks.

• Is the organization measuring the effectiveness of programming to understand if the mission is being achieved? Some organizations look simply at the number of people served rather than the effectiveness of their services. • Systems and processes: Is the operation approaching its internal operations with a view to efficiency and effectiveness or continually exhibiting reactive behavior. • Partnerships: Does the organization collaborate with other organizations? • Turnover in staff: Is it healthy? Low turnover does not mean the organization has the right people in the right roles. • External relations: Does the organization understand its stakeholders? • Response to outside eyes on the business: If the organization isn’t open to external feedback, why not? About 16% of Colorado not-for-profits lost their tax exempt status in 2011. Much of this was due to a change in reporting requirements, but the inability to weather a recession also contributed. To assure the organization is viable for the long term, sophisticated not-for-profits have turned to “outside eyes” on the business as part of their strategic planning process. This article summarizes some of the factors that should be assessed to get a clear picture of the overall health of the organization. s Michelle Barnes, MBA, is a principal at Interim Leadership Solutions, Golden, and a presenter at the 2012 COCPA Not-forProfit Conference, May 22. Contact her at mbarnes@interimleadership.biz. May/June 2012

www.cocpa.org

Point/Counterpoint:

Superbowl Dreams Peyton for the Win

Not a Chance

Before I give my testimony as a Denver Bronco optimist, let me qualify myself as an expert. I have been a season ticket holder since 1991 after being on the waiting list via my parents since 1979. I have cried multiple times at Old Mile High. I retired my John Elway jersey the last day he played, and it holds a prestigious spot in my home office with other paraphernalia such as pompoms from specific games, ticket stubs, my one-time on-field pass, Wheaties boxes with Bronco players on them, etc. My kids “Tebow” after saying grace. I once wore orange pantyhose with Bronco boxers to a game. (I was in junior high — the awkward years.) I had to threaten to quit a job when my employer wouldn’t let me attend the Super Bowl SHEILA BALZER, CPA parade during tax season. You get the picture — I never said I wasn’t biased. Peyton Manning will help lead the Denver Broncos back to the promised land and a Super Bowl victory for three simple reasons: his proven history, his competitive nature, and sibling rivalry. As all good accountants know, numbers don’t lie. Prior to joining the Broncos, Peyton Manning amassed 54,828 passing yards with an overall completion percentage of 64.9% (www.nfl.com). He has thrown for 399 touchdowns and only 198 interceptions to date in his career. He is the only four-time NFL Most Valuable Player and has appeared in two Super Bowls with one victory in 2006. He is always in the conversation when you debate the greatest NFL quarterbacks in history. He was obviously a large reason the Indianapolis Colts have been relevant year after year. He can bring that same level of success to the Broncos. He will be given the freedom to run the type of offense he has been successful at in his career. True to the nature of an elite athlete, Peyton Manning is competitive. He will want to win even more badly to show the Colts organization it made a mistake in releasing him before his career was over to choose an unproven rookie. He wants to leave the game on top much like another quarterback from Denver. Did I mention that other quarterback is pretty competitive also? Together as a team, winning will be the highest priority. Also, that other Denver quarterback has won Super Bowls late in his career at ages 37 and 38. He can assist Peyton in doing the same CONTINUED....

Colorado is Bronco country again. After five Super Bowls in a little over 20 year period from 1977 to 1998, it has been almost as long with a Super Bowl hangover. We have had big expectations with the next great Griese, Jake the Snake, the kid from Santa Claus, the prodigy coach Josh, 6-0 starts, and finally this past season with the coming of TT himself. The expectations continue to be ratcheted up, and the latest savior to break the Super Bowl drought is Peyton Manning. Or is he? I offer three reasons why Peyton Manning will not lead the Broncos back to the Promised Land: TOM BRADY (with a hoodie loving coach on the sidelines), BIG BEN, and the Edgar Allen Poe RAVENS of Baltimore. BRIAN CALLAHAN, CPA For starters, to reach the Super Bowl, the Broncos and their new QB will have to navigate the rigors of a First Place Schedule in 2012 including games against the Patriots, Texans, Steelers, and Ravens from the AFC; and Saints and Falcons from the NFC. In addition, the last time I checked on Super Bowl participants of recent years, they play a little D and hit people. The Champ of our defense is 34 this year, B-Dawk is retiring or should; and while we have two young great defensive linemen, Peyton at the Place he built in Indy was successful with a Speed Game and abilities to outscore on the turf. I do believe John Elway played the John Wayne cool persona needed to secure the biggest free agent in history. And even better than securing the greatest regular season QB in history is getting rid of the Tebow circus. There are those who would argue Elway did Tebow wrong by jettisoning him, but I view this as a brilliant football move because it was a way to send the Circus to Gotham and execute the exit strategy short of going 2-14 next year. Every good business needs an exit strategy, and this one will provide the Broncos with an increased franchise value, ticket sales, jersey sales, and overall fan interest. Speaking of business, the Broncos and Elway parlayed the success of Tebow mania directly and immediately into even more increased interest in the team, but from a football perspective and not just a jersey-selling perspective. In other words, from the time Tebow pulled off his first miracle versus the Fish in late October, the Broncos have remained the hottest CONTINUED....

NewsAccount May/June 2012

CGMA

WINNING CONTINUED

thing not only by helping ensure Peyton has the right supporting cast to win but also by providing him with insights into how he did it himself at the end of his career. Peyton Manning has a brother who also plays quarterback in the NFL — for the New York Giants. Last January, his brother obtained his second Super Bowl ring. Peyton only has one. Need I say more? To avoid any brotherly rivalry or uncomfortable discussions at family gatherings, Peyton needs to even the score. To paraphrase the immortal words of Broncos owner Pat Bowlen, Denver Bronco fans should look forward to these words in the near future, “This one’s for Peyton!” s Sheila Balzer, CPA, is a a partner at Holben Hay Lake Balzer CPAs LLC, Denver. Contact her at sbalzer@hhlbcpa.com. NOT A CHANCE CONTINUED

story in the NFL through April. I think that trend of staying relevant will continue until they start to struggle with the toughest schedule in the NFL come fall. Will or can the Broncos win a weak division? Possibly. Can they advance in the playoffs past one game? Not likely without another shut-down corner and impact linebacker. Defense wins championships as Peyton found out the hard way in Indy, and the Patriots D, Steelers D, and Ravens D (not to mention the Texans) are already game-planning on how to stop Peyton on grass versus turf. Expectations will be high, as they should be. Peyton at least has a fighting chance to meet them. So still a great move for the hometown team; just be cautious and don’t get your hopes up. Remember the Broncos scored first against the Redskins in 1989. They had a 10-9 lead at halftime versus the Giants to say nothing of the aforementioned high expectations dashed from the post-Elway era. As a Broncos season ticket holder and Manning fan, I hope I am wrong. If I am, I would be happy to go Tebowing at City Hall! PS Go Sox but not Patriots! s Brian Callahan is the Department Head for Assurance Services of Eide Bailly LLP, Greenwood Village. Contact him at bpcallahan@eidebailly.com.

Continued from 12

cent), finance and insurance (62 percent), and retail and wholesale trade (59 percent). Industry enthusiasm levels are lowest in banking (50 percent) and construction (37 percent). Notably, construction rebounded from the previous quarter’s expected decline in headcount to an expected increase. Technology foresees the most impressive headcount increase, while banking is the only industry projecting a decreased headcount.

Worldwide Differences on Performance Measures and Concerns Overall, survey results for Key Performance Indicators (KPIs) are positive. However, Asia stands alone as the region where expected increases in revenue, profits, and headcount are expected to be somewhat more modest than fourth quarter 2011 levels. It is also the only region where expected IT and training budgets, as well as other capital investments, are down from the last quarter. Inflation easily surpasses deflation as a concern for respondents (46 percent vs.10 percent), with the concern being greatest among fast-growing economies such as Asia (72 percent) and RoWE group (61 percent). Raw material cost is the number-one inflation risk, except for Asia and RoWD groups where rising labor costs commandeered the top spot. Energy costs are the second leading risk for most survey participants, including those in the U.S. and Europe (excl.UK). Greece’s exit from the Euro and a Euro break-up are two key issues for global executives, who believe there is a 52 percent chance of a “Grexit” and a 25 percent chance of a Euro breakup in the next 12-18 months. Nearly all European (excl. UK) respondents expect a Euro break-up to have a significant impact on their business (95 percent), followed distantly by Asia (67 percent) and the UK (64 percent). At 33 percent, management accountants in the U.S. least expect such an impact. Visit www.cgma.org to view the complete survey results. s

Coming to a Venue Near You – 2012 Summer Chair Tour Scheduled COCPA Chair Scott Bush, CEO Mary Medley, and Leslie O’Donnell, Membership Development Coordinator, will visit the following cities to meet with you, provide an update on national and local professional issues, and discuss your concerns. Each event is recommended for one hour of CPE credit. For details and to register, contact Leslie O’Donnell, lodonnell@cocpa.org, (303) 741-8611, or (800) 523-9082, ext. 111.

Colorado Springs Chapter June 20, Lunch Meeting

Roaring Fork Chapter August 8, Lunch Meeting

Southeast Chapter June 20, Evening Meeting

Western Slope Chapter August 8, Evening Meeting

Boulder Chapter August 2, Lunch Meeting

West Central August 9, Lunch Meeting

Northeast Chapter August 7, Lunch Meeting

Four Corners August 9, Evening Meeting

May/June 2012

www.cocpa.org

The State of the Industry

Health Care

In this column, NewsAccount talks with CPAs from various industries that are important in the U.S. and Colorado economies. We ask: What’s happening today? What factors will affect your industry over the the next 12 months? In this issue, we focus on the health care industry. BY NATALIE ROONEY

Cynthia E. Martinez, CPA Director of Corporate Accounting Catholic Health Initiatives Englewood, Colorado

About Your Organization Catholic Health Initiatives (CHI) is a national nonprofit health organization with headquarters in Englewood, Colorado. The faith-based system operates in 19 states and includes 76 hospitals; 40 long-term care, assistedand residential-living facilities; two community health-services organizations; two accredited nursing colleges; and home health agencies. We operate in: Arkansas, Colorado, Indiana, Iowa, Kansas, Kentucky, Maryland, Minnesota, Nebraska, New Jersey, New Mexico, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee,

NewsAccount May/June 2012

Washington, and Wisconsin. In fiscal year 2011, CHI provided more than $612 million in charity care and community benefits, including services for the poor, free clinics, education, and research. With annual revenues of more than $10.5 billion, CHI is the nation's second-largest Catholic health care system.

What role does health care play in the Colorado economy? While CHI owns and operates health care facilities throughout the U.S., the corporate headquarters are located in Colorado. We own St. Anthony’s; we have a joint venture with Centura; and we have sister entities in Colorado Springs and Durango. We not only cover urban areas such as Denver and Colorado Springs, we also cov-

er rural areas in Colorado, North Dakota, South Dakota, and Minnesota. While there are a lot of “players” in the Colorado health care market, we are the primary presence in many of these rural areas. At our headquarters, we are responsible for taking the financial information from all of our entities and rolling up everything for final reporting. We are working to expand and to add home care, life care, and more physician practices to our business. While there are exceptions, these days hospitals are usually part of a company that owns more than one hospital and are part of a bigger organization. Colorado hospitals alone contributed $18.8 billion to the Colorado economy in 2010, which includes calculations for com-

pensation, facilities, spin-off jobs, and other parameters. This figure represents 4.2 percent of the state’s entire economic output.

What challenges face the health care industry? Our challenges tend to occur at the national level. The biggest issue right now is health care reform. In recent weeks, the debate over the mandate that employers provide birth control is also garnering a lot of attention. We are carefully watching all developments. One of big components of health care reform is the change to electronic health records. We have a deadline of 2014 to implement electronic records, and all of our efforts are focused on that project. Almost all health care companies are currently dealing with this issue as well. The goal of electronic record keeping is to have a person’s entire health history in one central record: blood draws, x-rays, information from different specialists and doctors, prescriptions etc. Any doctor you see can access all of your records in one

central location, streamlining the process, and creating a safety check for patients by avoiding potential drug interactions and making sure each doctor is informed of the patient’s status. The legislation doesn’t actually mandate that organizations convert their systems to electronic, but those companies who do not convert will receive less reimbursement from Medicaid.

strategy so meetings about individual work efforts, go live schedules, transfer of assets as needed, and coordinating which hospitals are doing what and when, are all part of the daily routine. We’re trying to convert everybody to be on the same platform. This project is a huge capital expenditure for us. All the while, business is still moving forward.

What is your role within Catholic Health Initiatives?

Is this a good time to be in the health care industry?

As director of corporate accounting, I have several roles. Our department takes all of the financial information from each of our entities and rolls everything up into one consolidated financial statement. In addition, information technology (IT), human resources, payroll strategy, and all core corporate functions report through corporate. We do all of the financial reporting for each of these areas. Right now, with the electronic records conversion, IT is taking most of my time. The conversion is part of our national

Not only is it a good time, but it’s also an exciting time to be in health care. For the last 10 to 15 years, we haven’t seen a lot of change in the industry. Now, everything is changing. If you don’t like change, it could be tough. In addition to legislation, our aging population is also changing the industry. As someone who watched her father go through an extended illness, it’s exciting to see the changes. Better things are coming. The industry is booming, and we’re hiring — it’s very much an exciting time. s

May/June 2012

www.cocpa.org

State of the Profession Career Path

2008-12 Job Growth

Avg Salaries

Accountant Financial Analyst Budget Analyst

22% 20% 15%

$68,960 $86,040 $70,660

Tech

The outlook for the accounting profession is all good for college grads for the next several years. But the news is even better for anyone who hops on the bandwagon of a few trendy areas within the field. Here’s what’s hot in hiring these days.

A survey by the National Association of Colleges and Employers (NACE) reveals that business and finance degrees are hot these days, but another degree tops them both... Accounting. More good news: Employment opportunities for accountants are expected to climb 22% between 2008 and 2018, according to the U.S. Department of Labor.

Liberal arts

Business Valuation

Non-profit

Geek is where it’s at. “In-

You might be surprised

According to this year’s

More and more non-

formation systems, manage-

to hear that recruiters en-

Top 100 Firms report by

profit organizations are real-

ment information systems,

courage

Accounting

busi-

izing they need to hire CPAs

anything very technical is

modern poetry or organic

ness valuation is the lead-

to ensure their businesses

very hot right now,” says

chemistry in addition to

ing specialty niche. 74% of

are compliant with stricter

public accounting recruiter

your accounting courses.

firms surveyed reported an

accounting regulations. In

Scott McQuillan. The Vir-

“We're always looking for

increase of business in this

fact, public firms report non-

ginia Tech Pamplin College

those who have a well-

area, due to stricter regula-

profits were the second-

of Business says 98% of

rounded

background,”

tions in tax and accounting.

fastest

students in its Department of

McQuillan says. He has a

And the AICPA reports 2009

of clients this year, accord-

Accounting and Information

soft spot for students who

was a record year for the

ing to Accounting Today. If

Systems secure the job or

major in accounting and

number of ABV credential

you’re considering a career

graduate program they want

something completely dif-

holders. The demand for

in non-profit, however, most

by graduation.

ferent. “Their mindset is dif-

accurate, relevant financial

practicing CPAs recommend

ferent. They're thinking in

information is higher than

you gain experience in pub-

a different way, and that's

ever and the importance of

lic first in order to gain ex-

something that we're always

business valuation will only

posure to different areas of

looking for.”

continue to rise.

accounting.

Excerpted from www.thiswaytocpa.org.

you

study

Today,

growing