NewsAccount
September/October 2012
Colorado Society of CPAs
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NewsAccount
Contents Features
} 6 The Big Five of Sales Tax
The risks of failing to comply with state sales tax laws should not be underestimated. Are you sure your clients are complying in the most efficient manner possible?
12 Colorado's Hansen to Lead NASBA
With a wealth of regulatory experience at both the state and national levels under his belt, Gaylen R. Hansen is looking forward to his new role.
16 Higher Education, Higher Fraud Risk? Any time an entity is under financial stress it’s a fraud risk. Even those bastions of ethics and integrity, colleges and universities, are not immune.
20 Point/CounterPoint: HealthCare
The question on the table this month: Will the Affordable Care Act accomplish its intended goals?
22 The Perfect Match
CPAs have been working with clients for years to prepare for retirement, but the rapidly aging population has ratcheted up the demand for experts in elder care services.
ON THE COVER: A word frequency cloud consisting of words pulled from our feature articles this month. The bigger the word, the more often it was used. To make your own word cloud, head to www.wordle.net.
Departments
}
18 State of the Industry 21 Movers & Shakers 24 Classifieds Sept/Oct 2012
www.cocpa.org
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Chair Column
NewsAccount A bi-monthly publication of the Colorado Society of Certified Public Accountants Vol. 58, No. 3 September | October 2012 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 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, 7887 E. Belleview Ave, Suite 200, Englewood, CO 80111. 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 in Englewood, CO. POSTMASTER: Send address changes to NewsAccount, Colorado Society of Certified Public Accountants, 7887 E. Belleview Ave, Suite 200, Englewood, CO 80111. 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 NewsAccount is available in PDF format online at www.cocpa.org.
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NewsAccount Sept/Oct 2012
Creating Statewide Connections
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sk any past chair or president of the COCPA about his or her year in the role, and my guess is you’ll hear that the annual Chair Tour to visit members across Colorado is one of the highlights, if not the highlight, of the year. I know it has been for me. At press time, I’ve visited with members in Fort Collins, Colorado Springs, Pueblo, Boulder, Steamboat Springs, the Roaring Fork Valley, Grand Junction, Montrose, and Durango. Later this fall, I’ll visit Sterling and Alamosa, too. The Chair Tour gets me out of my office and puts me on the road with CEO Mary Medley and Member Development Coordinator Leslie O’Donnell. If you live in a chapter area or outside Denver, it’s a chance to hear what’s going on at the state and national levels. And, just as important, it’s my opportunity to hear firsthand what’s on your mind. So, what’s important these days to Colorado CPAs? What are we doing to address the issues you’ve raised?
Colorado Department of Revenue Concerns CPAs have never been people who mince words, and that’s a good thing. While the Chair Tour gave me the opportunity to talk about several legislative and regulatory issues, ultimately the discussion turned to the Colorado Department of Revenue (CDOR) and the frustrations many of you have experienced since the CDOR computer upgrade several years ago. The overhaul of a 40-year old legacy computer system is unlikely to go without a hitch, but the ensuing challenges remain one of the COCPA’s primary focuses as we all work together to smooth the frustrations of CPAs and their clients alike.
by Scott E. Bush, CPA To that end, the COCPA has taken, and continues to take, a number of actions to work with the CDOR not only to resolve issues but also to improve the filing process. In March 2011, Past Chair Mike Bearup and Medley met with Gov. Hickenlooper's Chief of Staff Roxane White to express the concerns and frustrations of CPAs and their clients with the new system. In May 2011, the COCPA and CDOR formed a joint task force of COCPA members and senior CDOR leadership to gather member input and address practitioner concerns. The CDOR team has been open to talking with our CPA members and listening to what we have to say. The task force has been working through a number of issues, such as improving notice language, third-party access to txpayer accounts, pre-certification of Enterprise Zone tax credits, and improving CPA practitioner interaction with CDOR, to name a few. We appreciate and thank those of you who have been involved and continue to give your time and talents to the task force. This past August, you may have participated in the COCPA survey to assess the status of your communication with the CDOR. See page 4 for the results. The goal of the survey: To establish where we are now and what issues need to be addressed.
Best Practices The COCPA has put together the following best practices as you communicate with the CDOR: • Upload the Form DR1778 electronically and any associated supporting documents directly to the CDOR website via Revenue Online. Paper documents mailed to the processing center in Pueblo face the
possibility of processing errors, which may result in a notice to your client and the need to respond. • When filing a Colorado amended return, you must consider this as a complete re-filing, so all attachments and forms (including support for credits) that were included with the original return must be re-submitted. Do not include a copy of the original return filed, as this also may cause processing errors. Also, the COCPA has developed model language to communicate with your clients so they know what to do when they receive a CDOR notice. You can access the information on the COCPA website at www.cocpa.org. Above all, keep in touch and let us know how your communication with the CDOR is going. Medley continues to work directly with the Department on behalf of Colorado CPAs, and the COCPA task force gives us a direct line of communication. We will continue to diligently address your needs and concerns, as well as your clients' issues.
Call to Action Among the other issues and initiatives I’ve discussed as I’ve traveled across Colorado are two AICPA efforts I hope you’ll take the time to explore. The first is a new computer-based platform for calculating an individual’s total tax obligation called Total Tax Insights at www.totaltaxinsights.org. It’s a free tool which the AICPA developed as a public service to give taxpayers a clearer picture of the types and number of taxes they pay throughout the year and the estimated amounts of each. By linking federal tax rules with the country’s abundant and varied state and local tax conventions — including more than 20 of the most widely applied taxes — this first-of-a-kind online tool fosters greater public understanding of taxes and provides key insights to enhance one’s financial well-being. It’s not only useful for you but also for your clients, colleagues, friends, and family members. You can even use it to show someone what to expect if considering a move to a new home or business location. What’s at Stake? A CPA’s Insights into the Federal Government’s Finances offers guidance for policy makers and the public on how the U.S. government’s financial statements can be used for greater understanding of the nation’s fiscal health. Colorado’s own Gregory Anton, CPA, CGMA, and current chair of the AICPA Board of Directors, offers a non-partisan analysis into why the financial statements provide a different perspective compared to the annual budget. Go to www.aicpa.org/Advocacy/Pages/CPAsInsight.aspx to view the video and also to explore the additional resources available, including the Fiscal Year 2011 Financial Report of the United States Government; the Budget of the United States Government, Fiscal Year 2013; and A Citizen’s Guide to the 2011 Financial Report of the U.S. Government.
Thank You As I think about my time on the road around Colorado, I’m honored and humbled that you were willing to venture out and listen to me. You have been gracious and welcoming, and it's been a unique opportunity. Forging these connections, hearing your feedback, and seeing ways we can make things better has been a priceless experience. As Colorado CPAs, we are a relatively small number of individuals spread out over a large geographic area. Nonetheless, our issues remain fundamentally the same. I look forward to your feedback about what you need, whether at a COCPA event or by email at scott@soukupbush.com. Be in touch. s Sept/Oct 2012
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COCPA News
Survey Results Highlight Member Concerns re: Colorado Department of Revenue
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n early August 2012, the Colorado Society of CPAs emailed a survey request to COCPA members, asking for input on experiences with the Colorado Department of Revenue (CDOR). Of those who received the survey request, 320 completed the survey, and 506 opened the survey but did not complete it. The results were shared with the Colorado Department of Revenue at the Aug. 23, 2012, meeting of the joint COCPA/CDOR task force formed in May 2011 to address issues and concerns of the two groups. Highlights of the survey results follow. If you have particularly difficult client issues with which you need immediate assistance, email the details, along with the taxpayer name, last four digits of the taxpayer's social security number or tax ID number, and whether you have a power of attorney on file to CEO Mary Medley at mmedley@ cocpa.org. She will direct your correspondence to the appropriate CDOR representative for resolution. To contact the CDOR Tax Practitioner Hotline, call 303-232-2419. To keep up with state tax news, check out the Colorado Taxation blog at http://cotaxinfo.wordpress.com. To subscribe to the Colorado Tax InfoEmail, send your request to tpspublicinfo@dor.state.co.us.
Respondents Weigh In • 95% said they or their clients had received notices from the Department in the past three months. • 68% said they’ve received more notices than in previous years. • 74% said the typical notice asked for additional documentation to support a particular tax return item. • 62% said the documentation requested had been sent in for previous years.
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• 61% said the documentation requested had been sent in for the current year.
95%
61%
said the documentation • The top areas gensaid they or their clients requested had been sent erating notices inhad received notices in the for the current year clude estimated tax past three months payments not applied (53%); enterprise zone credits (48%); W-2 credits (42%); and withholding paid to other states (38%). “Other” generated said the documentation requested had been sent responses from 41%.
62% for previous years
• 77% said it would be helpful to receive advance information about the types of notices being sent and the reasons for them. • 45% handle a notice-related issue less than once a week, with 31% handling a noticerelated issue just once a week. • 33% noted it takes 2-3 months to resolve a specific taxpayer matter with the CDOR, with the next highest percentage — 19% — indicating resolution is accomplished within a month. • 31% said their interactions with the CDOR had deteriorated since tax season 2011, and 26% said interaction was “about the same — negative.” 21% said interaction was “about the same — neutral.” • 68% use the mail as their primary method of interaction. 7% use Revenue Online to interact with the CDOR. • 51% use Revenue Online generally, and 46% do not use it. • 45% of those responding to the survey are partners or principals in a local CPA firm, with 35% of respondents saying they are sole practitioners. • 47% live in the Denver metropolitan area, and 68% have worked in tax for 20 years or more.
Major Themes Identified Respondents repeatedly commented on the notice language being hard to understand, difficulty with the telephone system, problems with correct application of taxes paid, errors in disallowance of credits, and challenges in resolving issues. As one respondent put it, “The process of trying to resolve an issue is terribly frustrating. The clients think that we have made an error in preparing the return... The CPA firm has a difficult time getting paid for the time that it takes to resolve the issues — often it cannot be billed to the client at all.”
Moving Forward The task force is committed to working through the issues raised and to providing information and guidance to COCPA members and their clients. To receive email updates on the status of COCPA/ CDOR efforts, email Mary Medley at mmedley@cocpa.org and ask to be included on the distribution list. s
Celebrating A Decade of Making A Difference In 2002, Colorado CPA John M. Hughes Jr., like most CPAs, had gotten his fill of the negative attention the profession was receiving, post-Enron and passage of the Sarbanes-Oxley Act. He had an idea to revive the pride and spirit of the profession in Colorado by recognizing the great things CPAs do without fanfare and away from the headlines. He approached the Colorado Society of CPAs, and the first CPAs Make A Difference celebration was held on October 3, 2002, at what was then Denver's new football venue, Invesco Field at Mile High. Seven Colorado CPAs received everyday hero and heroine awards, and the distinguished service award was presented, too. Incoming AICPA Chair William F. “Bill” Ezzell, CPA, took the audience on a stirring journey, challenging everyone in the room to remember who encouraged them to become members of the profession and to do the same for others. Roll forward ten years. On November 8, 2012, the CPAs Make A Difference celebration
will include recognition of this year’s everyday heroes and heroines, presentation of CPA pins to the newest Colorado CPAs, and Bill Ezzell’s return to the microphone for his views on the profession’s future, post-Election Night 2012. It’s an evening you won’t want to miss. To be held at the Westin Denver Downtown and supported by lead sponsor Citywide Banks, the celebration will include a silent auction to benefit the Educational Foundation of the COCPA, video vignettes about the award recipients, and some surprises, as well. Firms are encouraged to invite those CPAs who’ve received their certificates since October 1, 2011, to attend and be recognized. To register, go to www.cocpa.org and click on the CPAs Make A Difference registration link, or contact the COCPA office at 303-773-2877 or 800-523-9082. You’ll be moved, inspired, entertained, and reminded of how special it is to be a part of the Colorado CPA profession. Be there.
The Inaugural Class
CPAs Make a Difference
Nov. 8, 2012 Westin Denver Downtown 1672 Lawrence St. Denver, CO Reception and Silent Auction to benefit The Educational Foundation of the COCPA
Cost: $100/person
$25 for new CPAs $1,600 for a Supporter Table $800 for a Patron Table
Contact: Terry Cervi at tcervi@cocpa.org, 303-741-8610, or 800523-9082, ext. 110, to attend.
This innovative new leadership development program is designed to enable participants to gain the knowledge, skills, and practice to achieve their desired professional and personal results, including interacting effectively with, leading, and managing people.
From left to right: Jeffrey Damm SM Energy Company Patrick Lytle SM Energy Company Dana Reilly KPMG LLP Jessica Mueller Holben Hay Lake Balzer CPAs LLC Laura Theiss Holben Hay Lake Balzer CPAs LLC Tom Zehren Hein & Assoc. LLP Chelé Zavik Ernst & Young LLP Jill English Grant Thornton LLP Greg Marken Ernst & Young LLP Carolyn Kircher SM Energy Company
Sept/Oct 2012
www.cocpa.org
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The Big Five of Sales Tax Sales taxes are an increasingly important source of revenue for states seeking to make up for revenue shortfalls. Yet, because sales tax is a pass-through tax, business owners may disregard it compared to the state and federal income tax landscape. The risks associated with the failure to comply with state sales tax laws should not be underestimated. Sales taxes typically represent more than one third of a state’s revenue; in many states, the percentage is much higher. In Colorado, for example, 23.9 percent of state revenue was derived from sales tax in fiscal year 2010, according to the Federal Tax Administration. More than likely, your clients are filing returns and paying their fair share. But, are you completely certain they are complying in the most efficient manner possible? As an accounting professional, it makes sense to fully educate yourself on sales tax, learn about the areas where your clients might have exposure, and help them understand the implications for their business. Chances are, your clients stand to benefit but may be unaware that they even have a need. Clients should know five key points about sales tax. Armed with this information, they will be in a better position to reduce the risk of penalty and audit, and improve their accounting practices.
#1: Boundaries and Rules Exist An understanding of sales tax compliance would not be complete without looking at several factors. Nexus: In sales tax collection, this important principle always takes center stage. In the legal sense, nexus describes the connection between two or more participants, interests, or concepts. In the world of sales tax, nexus refers to the connection a company has with a state. Nexus is the legal connection that empowers a state to demand collection and remittance of a business sales tax. If your clients have business in more than one state, nexus laws affect them. Recently, states have developed and tested legal theories in order to push the boundaries of nexus. Some have met with success, and some have not. Most disconcerting, however, is that some theories are still being vetted in state and federal courthouses. Origin vs. Destination: Colorado has a destination-based local tax versus an origin-based local tax. If a sale is taxable, the company must determine which jurisdiction is imposing the tax so it can apply the correct rate, which means the company must first understand the distinction between origin- and destination-based sourcing rules. In origin-based states, any transactions originating and terminating
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within the state are sourced to the origin jurisdiction, so the sale is subject to the local tax rate imposed by the jurisdiction where the sale originated (retail location or ship-from location). Transactions crossing state boundaries are usually sourced to the “destination” regardless of the state’s sourcing rule. Streamlined Sales Tax: Colorado has not adopted the Streamlined Sales and Use Tax Agreement (SSUTA). In an effort to simplify sales and use tax collection and administration by retailers and states, 44 states, the District of Columbia, local governments, and the business community signed on in 2000 to support the SSUTA. The Agreement minimizes costs and administrative burdens on retailers that collect sales tax, particularly those operating in multiple states. The SSUTA encourages "remote sellers" selling over the Internet and by mail order to collect tax on sales to customers living in the Streamlined states and levels the playing field so that local "brickand-mortar" stores and remote sellers operate under the same rules. This Agreement ensures that all retailers can conduct their business in a fair, competitive environment. To date, 24 of the 44 states have passed legislation to conform to the SSUTA, yet most of the large states — California, Illinois, New York, Pennsylvania, and Texas — have not adopted the Streamlined Sales and Use Tax Agreement. Attributional Affiliate Nexus (Amazon Laws): If you have clients selling over the Internet, you’ll want to know about the “Amazon Law," a concept currently being pushed by several states. The “Amazon Law” opens the door for states to require sales tax collection in situations where a company has only limited commercial activities within a state. Amazon.com, for example, is already collecting sales taxes in several states, including Kansas, Kentucky, New York, North Dakota, and Washington, but has yet to enter into an agreement with Colorado. As Internet marketing becomes more complex and entangled, there are more opportunities for otherwise remote activities to trigger sales tax nexus in a given state.
#2: Reporting Can Be Complex Understanding the complex calculation and returns and remittance data that can exist for reporting sales and use tax will go a long way in a company’s preparation of its sales tax reports and payments. Calculation: Rules for taxability and calculation vary from state to state, and in some states, like Colorado, by locality. (See the article on page 8 for Colorado details.) Keeping up with different sales versus seller’s use tax rates for the exact same jurisdiction — and determining applications to a specific sale — can be complicated. Automated tax calculation solutions that maintain the data for all the rates and rules are a necessity for businesses that operate in multiple states. Returns and Remittance: Once a business decides who it owes taxes to, it must file state and local returns with various taxing authorities. A listing of basic sales and use tax state and local returns for a business can exceed 450 forms. For a multi-location company
By Ray Bigley and Jennifer Warawa
in multiple states, it’s not uncommon to file more than 100 sales/use tax returns per month, while nationwide retailers can easily file over 1,000 sales/use tax returns every month! As a result, companies doing business in multiple states with limited resources have no choice but to find an automated returns solution.
#3: Technology to the Rescue Automation is one option a company has for actually preparing its sales tax reports and payments, but others exist as well. Manual: In a manual calculation environment, clients load state, county, city, and local tax rates into their accounting software, manually updating the tax tables for rate changes every time they occur in each jurisdiction in which the company files. Hybrid: Clients subscribe to a rate table update service that populates the tax rates in their accounting software for all jurisdictions in which they file. Individual item taxability and customer exemption status are manually updated. Manual and hybrid solutions are cumbersome, and mistakes easily occur if work is not checked and double-checked. In addition, these solutions generally cannot determine when to apply seller’s use tax instead of sales tax, and do they not allow for accurate calculation of tiered tax rates. Fully Automated: Locally loaded solutions and hosted, cloudbased solutions allow for more accurate calculation, offering automated tax return preparation, or returns prepared and filed through a service provider. Locally loaded solutions are typically two-tiered: 1) the application that actually calculates the sales tax when sales are made, and 2) data is used from the first tier to automatically prepare sales tax returns. Automated solutions should be SSUTA-certified in order to ensure complete compliance.
#4: Cloud Solutions Provide Total Automation, Effortlessly Hosted solutions for sales tax preparation leverage significant advantages of the cloud. These solutions are ideally suited to handle the constant rate and jurisdiction changes that are the norm in sales tax compliance. Many solutions also offer turn-key sales tax compliance. Here, taxes are not only calculated by the hosted provider, but also the returns and payments can all be made by the same provider without the need to transfer data from one system to the other. All changes are tracked and applied by a central service accessed through the cloud. There is no need to load software, perform monthly updates, or provide hardware to run a cloud solution. All of this is done by the service provider. As with locally loaded solutions for sales tax calculations, hosted solutions require setting a company’s nexus, product taxability, and customer or use-based exemptions within the system, and ensuring
that they are properly connected to the business’s accounting software at the appropriate points. When done properly, the client receives effortless consistency and accuracy with every sales tax calculation.
#5: Communication and Information Are Key Open communication and information are vital and affect all parties involved in any sales tax relationship. CPAs and their staffs should be aware of sales and use tax collection obligations, but in some cases, there may never have been a conversation on that topic between the advisor and the client. Why? In general, many CPAs are not focused on sales tax because they might think their clients are handling sales tax reporting and compliance on their own. Conversely, from a client’s perspective, there may be a presumption that because their CPA is a tax professional, reporting and compliance will be done as simply another component of a typical tax engagement. As a CPA who is educated in sales tax laws, compliance, and reporting, you will be able to transfer your knowledge to your clients. By establishing and maintaining an open dialogue with your clients, you help arm them with the ability to address compliance, reporting, and technology issues that may arise — and keep them out of tax trouble.
Resources for More Information • AvaRates Sales Tax Calculator – Calculate tax rates by exact address; includes 50 Free Lookups • AvaTax Rates – A U.S. map broken down by latitude and longitude; click on a certain area of the map to see specific rates • Avalara Accountants Resource Center – White papers, articles, forms and other resources for you and your firm s Ray Bigley is vice president of Business Development for Avalara, a cloud-based sales tax reporting and compliance program. Contact him at ray.bigley@avalara.com. Jennifer Warawa is vice president, Partner Programs and Channel Sales, at Sage. Contact her at jennifer.warawa@sage.com.
Bigley
Warawa Sept/Oct 2012
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Resources
Sales and Use Taxation in Colorado Rates” (DR 1002). This CDOR publication is updated each January and July. On the web, see “Local Sales Tax Rates” at www. taxview.state.co.us. For more detailed information on state-collected local taxes, request FYI Sales 62 “Guidelines for Determining When to Collect State Collected Local Sales Tax.”
The following information is excerpted from the Colorado Sales and Use Tax General Information and Reference Guide — available at www.colorado.gov/cms/forms/dor-tax/ drp0099.pdf. Note: Colorado sales and use tax rates were updated on July 1, 2012. Find the new rates at www.colorado.gov/cms/forms/dortax/dr1002.pdf.
Colorado Consumer Use Tax
Colorado Sales Tax Colorado imposes sales tax on retail sales transactions of 17 cents or more. A 3% tax may still be remitted on sales or leases originating prior to 1/1/200l. Although many cities and counties impose their own local sales/use tax on purchases and transactions within their boundaries, the Colorado Department of Revenue collects sales tax on behalf of 330 cities, counties, and special districts. These jurisdictions are referred to as “state collected,” and include all Colorado counties that impose sales tax, with the exception of Denver and Broomfield counties, which collect their own. Cities that have enacted a “home rule” charter and have elected to administer and collect their own local sales and use taxes are referred to as “self collected” or “self administered.” Self-administered jurisdictions must be contacted directly for information.
Goods For state-collected jurisdictions, most goods are subject to sales tax. An example of goods exempt by law from state and statecollected local sales taxes include prescription drugs, insulin and insulin supplies, and prosthetic and medical supplies prescribed by a doctor. In addition, some items are exempt from state sales and use tax but may be subject to city and county sales taxes, at the option of the local jurisdiction. An example of these include food for home consumption, as well as electricity, gas, and fuel oil for residential use.
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Services Most pure services are not subject to Colorado sales tax. Exceptions to this guideline include: rooms and accommodations; catering; gas and electric service; steam; and telephone and telegraph services. The transportation of tangible personal property between a retailer and purchaser is a service presumed not to be subject to sales or use tax. Transportation charges are not taxable if they are both (1) separable from the sales transaction and (2) stated separately on a written invoice or contract. See FYI Sales 29, “Special Regulation: Transportation Charges.” Dealer preparation and handling charges for motor vehicles are taxable. Exempt services must be itemized separately on the service provider’s bill to show that they are nontaxable. For example, if you hire a plumber to fix a leaking sink, the parts the plumber uses in the repair are taxable, but the labor is not if the billing lists a separate labor charge. Most repairs on property previously owned by the party requesting the repair are exempt on the separately stated labor in this manner. Labor expended on preparing tangible personal property for sale is never exempt. Labor to customize tangible property after a sale is exempt only where title and possession have passed to the buyer, and the labor provider is not liable for the cost of the property sold if the labor or customization is unsuccessful. For information on local sales/use tax rates, request “Colorado Sales/ Use Tax
Use tax is a complement to sales tax. When a vendor has not charged sales tax on a taxable retail sale, the purchaser must pay tax on the item used or made available for use after delivery is completed, as well as when keeping, storing, withdrawing from storage, moving, installing, or performing any other act by which control of the article is assumed by the purchaser [Sales Tax Regulation 39-26-202]. An example would be when you purchase an item from an outof-state retailer which does not collect Colorado sales tax. Then, use tax is due. The Colorado Department of Revenue collects state and Regional Transportation District/Scientific and Cultural Facilities District (RTD/SCFD) and Regional Transit Authority (RTA) use tax but does not administer or collect county or city use tax. Local use tax is paid directly to the taxing authority to which it is owed or to county motor vehicle offices. At their option, statecollected cities and counties may charge use tax on motor vehicles, construction, and building materials. Self-administered local jurisdictions make their own use tax regulations and must be contacted directly for information. State and RTD/SCFD use tax payments are remitted to the Department of Revenue with a “Consumer Use Tax Return” (DR 0252). RTA use tax payments are remitted on the “RTA Consumer Use Tax Return” (DR 0251). Contact local jurisdictions directly about use taxes owed to counties and cities. For more detailed information on Colorado consumer use tax, request FYI General 10 “Consumer Use Tax.” s
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www.eksh.com Sept/Oct 2012
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9
Chair Tour 2012 Above: Montrose area members gathered at the
Camp Robber for lunch and the issues update Bush provided.
Above: COCPA Chair Scott Bush met
with Durango CPAs at the Four Corners Chapter meeting, including past COCPA Chair Sidny K. Zink, seated.
Below: Bush was seen on Main Street
in Steamboat Springs, checking out a possible ride.
Above: The Roaring Fork Valley Chapter welcomed Bush to Aspen. Below: Members of the Southeast Chapter, including Educational
Foundation trustee Geri Wink and CPE Board member Ron Goodrich, gathered with Bush in Pueblo.
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NewsAccount Sept/Oct 2012
Leadership Council At Right: Chairs and former chairs shared memories of their times in office at the 2012 Leadership Council meeting, June 25, in Denver. From left to right are past COCPA Chair and current AICPA Chair Greg Anton, Cheryl Wenzinger, Chuck Fredrick, Lynne LehrBuck, Rick Doty, Sidny Zink, current COCPA Chair Scott Bush, and Michael Bearup.
At Left: COCPA members discussed a variety of questions during the day-long meeting at the Hyatt Regency Denver Tech Center, including whether the organization could/should become virtual in the future.
At Right: Women came from across Colorado to participate in the Leadership Council meeting. From left to right are Marilynne Tarrall, Boulder; Carrie Bartow, Colorado Springs; Angela Roberts, Denver; Tawnya Ramirez, Broomfield; Heather Bays, Denver; and Carol Gority, Pueblo.
Sept/Oct 2012
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Member News
Colorado's Hansen to Lead NASBA
G
aylen R. Hansen, CPA, is getting ready to stand in the CPA profession’s national spotlight. In late October, Hansen will take the reins as chair of the National Association of State Boards of Accountancy (NASBA), the organization of the country’s 55 boards of accountancy. With a wealth of regulatory experience at both the state and national levels under his belt, Hansen is looking forward to his new role.
Center Stage Hansen is the second Colorado CPA to serve as NASBA chair. Boulder CPA Michael D. Weatherwax preceded him as chair in 2004-2005. Partner and director of quality of assurance at Ehrhardt Keefe Steiner & Hottman PC in Denver, Hansen has spent his entire professional life preparing for the role he is about to assume, even though he didn’t know it along the way. After graduating from California State Polytechnic University, Pomona, Hansen worked for Arthur Andersen in Los Angeles. He earned his CPA license before returning to school for his MBA at California State University, Fullerton. When the time came for a job transfer within AA, Hansen and his wife,
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by Natalie Rooney Colleen, chose Denver. Except for one short year, Hansen has spent his entire career in public accounting. In this "gap" year, Hansen had the opportunity to work for Celestial Seasonings while it was going public. “I enjoyed working there and learned a lot through that process,” he says. But being away from public accounting reminded him of what he loved and missed most about it: the challenges, the variety of work, the varying problems facing clients, and the professionalism. He accepted a position developing PriceWaterhouse LLP's emerging practice group in Denver, putting his skill set honed through the IPO process to good use. While at PW, he worked closely with venture capitalists before ultimately forming his own firm and later joining EKS&H in 2006.
Serving the Public From the time he arrived in Colorado, Hansen has been active with COCPA committees, and his interest in professionalism while protecting the public interest grows with each new role. Already active with the COCPA as a sole practitioner, he got a call in 1995 from COCPA CEO Mary Medley. Gov. Roy
Romer was seeking a CPA to serve on the newly formed Colorado Securities Board that oversees the Colorado Securities Commission. “The law required a CPA, and Mary wanted to know if I were interested because of my securities background,” Hansen says. He accepted the position and found the public service aspect of regulation very satisfying. In 2002, Hansen applied for and was appointed to the Colorado State Board of Accountancy. He served two four-year terms. “There are many different aspects to both the Colorado Securities Board and the Colorado State Board of Accountancy,” Hansen says. “At the securities board, you’re in an executive role, establishing rules and regulations, enforcing those, and dealing with complaints,” he says. “At the State Board of Accountancy, you’re in more of a regulatory role, establishing regulations and holding hearings according to the Open Meetings and Freedom of Information Acts.” Hansen says his work on the State Board of Accountancy caused some sleepless nights. “You stay up at night pondering the decisions you face because they affect people’s careers, lives, families, and their ability to make a living. But State Board members have an overriding responsibility to protect the public,
and that never goes away. In the final analysis, it’s not just a matter of dealing with a professional who may have gone off track. It’s a matter of protecting the public.”
Going National NASBA found itself with a vacancy in 2005 when its Mountain Region Director was suddenly transferred to Australia. “Practically overnight I was invited to join the NASBA Board of Directors,” Hansen recalls. “From there, I was appointed from one role to another, serving on various committees.” Those early years with NASBA were occurring at the same time Hansen was serving on the Colorado State Board of Accountancy, so for a time, he pulled double duty. Between preparing for meetings and attending meetings at both the state and national levels, in person and also via conference calls, Hansen has been busy, relying heavily on the other partners at his firm to be able to take on the additional roles. “It’s a real tribute to my partners that they are willing to have someone in my position,” he says. “It’s a real sacrifice to allow me to spend as much time as I do on public service matters.” NASBA isn’t the only national player to recognize his skills. In 2007, then Secretary of the Treasury Henry Paulson Jr. appointed Hansen to the Advisory Committee on the Auditing Profession (ACAP). “That was a unique, once-in-a-lifetime opportunity,” Hansen says. “ACAP’s recommendations are far-reaching and continue to be referred to in on-going, standard-setting projects of the SEC, PCAOB, AICPA, NASBA, and the AAA.” In addition to his roles with NASBA, the Colorado State Board of Accountancy, and the U.S. Treasury, Hansen’s curriculum vitae is jammed with committee appointments and offices he has held with the COCPA, the AICPA, the International Federation of Accountants, and the PCAOB. So it’s not surprising that he appeared in Who's Who in Law and Accounting in 2004 and was mentioned as one of Metro Denver’s Top Business Newsmakers in 2005.
Weighty Professional Issues As he prepares to lead NASBA, Hansen says there are some critical issues facing the
profession from a regulatory standpoint, including the expanding role of CPAs. “The CPA franchise has always centered on the attest service on financial statements,” he says. “Now we’re seeing questions about other services, like Service Organization Control (SOC) reporting. Does the public need to be protected? Should that service be restricted to CPAs? Are there other non-traditional services that require public protection, such as valuation?” Hansen says the AICPA and NASBA have been carefully studying these questions and may make some recommendations soon. Fundamentally, this boils down to the age old question: What exactly is the practice of public accounting? Another issue Hansen considers important is the global practice of accountancy and mobility. “Should a CPA be able to perform services in other countries and vice versa for other countries' professionals?” he asks. “It’s an evolving issue, and we’re working with professional bodies worldwide, the AICPA, and state CPA societies to address it.” Communication issues also top Hansen’s agenda for his year in office. “I don’t think the profession has done a very good job communicating the case for International Financial Reporting Standards or private company GAAP,” Hansen says. “The question has to be asked, and I don’t think it was answered early enough, ‘Why are these in the public interest?’ And then it’s a matter of getting the public on board and behind the proposals.”
Goals as Chair
around the world.” Hansen explains that NASBA has a different role than other organizations in dealing with these challenges. “We hone in on why these proposals are in the public interest in one way or another,” he says. “It’s a little different voice than you hear from the AICPA, which looks at issues as a professional membership matter as well. From a regulatory perspective and from NASBA’s viewpoint, we’re not solely profession-focused. Don’t get me wrong; we want a vibrant and healthy profession. But NASBA’s mission centers on public protection and how we can best achieve it. To that end, if the public is protected, the value of the CPA credential will be enhanced.”
It Takes a Village Hansen says he wouldn’t be able to step into the NASBA leadership role without the support of his partners, and of course, his family. When he gets a spare minute or two, he enjoys water skiing at Lake Powell, where the family keeps a houseboat. Between him and Colleen, they have eight grown children, their spouses, and 11 "pretty good-looking and smart grandkids," according to his CV. About his own success over the years, Hansen is humble, giving credit to and thanking the many mentors he’s had. “I’ve had a chance to work with some great people, the support of a great place to work, and of course, a great family,” he says. We wish him all the best in his new position. s Send your congratulations to Hansen at Ghansen@eksh.com.
It’s not surprising that when asked about his goals as NASBA chair, Hansen focuses on the public interest. “As a profession, we have to get back to our roots of integrity, objectivity, and professional skepticism,” he says. “There is a resurgence of interest in these values, highlighted recently by the PCAOB and its concept release on mandatory auditor rotation. The same questions are being asked by the European Commission and others Sept/Oct 2012
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CGMA Resources
How to Talk to Your Employer about the CGMA Designation You understand how the different parts of a business need to come together to create value; have the ability to communicate and influence colleagues to drive success; and have the agility and adaptability to manage business opportunities and risks in today’s fast-paced business world. How can you help your employer to see the value of the CGMA designation? Here are some pointers: • Stress the CGMA’s foundation in the CPA. In the U.S., the CGMA’s expertise is rooted in the U.S. CPA curriculum. CGMAs have met the education, examination, experience, and ethical requirements needed to become a CPA and be a voting member of the AICPA. • Be prepared to explain how your CGMA will complement your CPA credential. A CGMA allows you to showcase your expertise in corporate finance and management accounting. It also gives you access to extensive — and specialized — professional resources and a network of management accountants around the world. • Understand and be able to communicate concisely the unique value you bring to the organization, and how the CGMA helps you highlight your own career contributions. Before you meet with your employer, review your resume and make sure you can articulate your achievements. • Review the array of resources available exclusively to CGMAs on cgma.org. Get familiar with everything you’ll be able to access as a CGMA. Visit www.cgma.org, read CGMA Magazine, review the thought leadership reports, and investigate opportunities for management accounting skills and knowledge development. • After you’ve seen what’s offered at www. cgma.org, think about how CGMA resources would also benefit your employer. For example, how would you improve operational efficiency if you had access to the latest CGMA performance tools? How would you help your company better understand market trends if you could download leading-edge CGMA research? • Finally, in case your management team is unfamiliar with the accounting profession,
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you might want to be prepared to explain that the AICPA and CIMA are two of the most respected accounting bodies in the world. The Chartered Institute of Management Accountants (CIMA), founded in 1919, is the world’s leading and largest professional body of management accountants, with more than 183,000 members and students operating in 168 countries, working at the heart of business. CIMA members and students work in industry, commerce, the public sector, and not-for-profit organizations. The American Institute of Certified Public Accountants (AICPA) is the world’s largest association representing the accounting profession, with nearly 370,000 members in 128 countries and a 125-year heritage. AICPA members represent many areas of practice, including business and industry, public practice, government, education, and consulting. Employers need experienced professionals like you to help them understand that the CGMA is not only worth supporting, it’s valuable to the organization and to your career trajectory. By highlighting the value the CGMA brings to you and your employer, you are helping to drive success at your organization. s
What CGMA Can Do For You CGMA Magazine Your online source for management accounting news, in-depth analysis of key business issues, and best practices. CGMA Newsletter Get informed with a weekly roundup of the most compelling news delivered to your inbox. Community/Global Network Connect with the best minds in management accounting via CGMA's online community. Tools Drive best business practices with scenarioplanning tools, checklists, decision trees, an enterprise risk management assessment tool, and real-world case studies. Reports Access leading-edge research, tools and techniques, and strategic insights on key issues facing businesses in the global economy. Global Economic Surveys Gain insight into the views of CGMA financial executives on their outlook for the economy, their individual organizations, growth and expansion expectations, and current economic challenges. Products Online courses, webinars, digital publications, and conferences are available at special pricing for CGMA holders.
Educational Foundation
Accounting Scholarships Awarded Congratulations to the 32 college accounting students who were awarded $2500 scholarships from the Educational Foundation of the Colorado Society of CPAs. Seventeen of them received firm named scholarships, as noted below. Kimberly Beck is a senior at Metropolitan State University of Denver who will graduate in spring 2013 with a B.S. in accounting.
Sirous Safarzadeh-Amiri is a senior at Metropolitan State University of Denver who will graduate in May 2013 with a B.S. in accounting.
at Metropolitan State University of Denver and expects to graduate in May 2014 with a Masters of professional accountancy.
Jillian Barnes is a senior at Western State College who will graduate in fall 2012 with a degree in accounting and business administration.
Megan Woodruff is a graduate student at the University of Northern Colorado who will graduate in December 2012 with a Masters in accounting.
Anne Becker is a senior at Colorado State University at Fort Collins who will graduate in fall 2012 with a B.S. in accounting.
Jane Goessel is the recipient of the Anton Collins Mitchell LLP Scholarship. Goessel is a graduate student at Fort Lewis College who will complete the program in April 2013.
Hye-Jeong McBreen is the recipient of the Hein & Associates LLP Scholarship. McBreen is a junior at Colorado Mesa University who will graduate in spring 2013 with a degree in accounting.
Amanda Fladland is a graduate student at Regis University who will graduate in fall 2013 with a Masters of business administration. Deborah Gillman is a senior at Western State College who will graduate in 2014 with a degree in accounting. Jonathan Havey is a senior at the University of Denver who will graduate in June 2013 with a BSAcc and a B.A. in film studies. James Heelan is a senior at Western State College who will graduate in December 2012 with a B.A. in accounting. Dylan Heller is a junior at Colorado State University who will graduate in May 2014 with a B.S. in accounting and computer information systems. Andrew Jewett is a graduate student at the University of Colorado at Denver who will graduate in May 2013 with a Masters of Science in accounting. Andrea Juhl is a senior at the University of Northern Colorado who will graduate in May 2013 with a B.S. in business administration and accounting. Lisa Norman is a junior at Colorado Mesa University who will graduate in spring 2014 with a B.S. in accounting.
Tuan Mai is the recipient of the Hugh C. Braly Scholarship. Mai is a senior at Metropolitan State University of Denver who will graduate in December 2012 with a degree in accounting. Steven Kupcho is the recipient of the Ernst & Young LLP Scholarship. Kupcho is a junior at the University of Northern Colorado who will graduate in spring 2013 with a Bachelors degree in accounting. Jennifer Ratterman is the recipient of the Eide Bailly LLP Scholarship. Ratterman is a graduate student at the University of Colorado at Boulder who will graduate in May 2013 with a M.S./B.S. in accounting. Kelsey Carter, Danielle Gaffney, Samantha Gagas, and Anna Monastyrskaya-Rogers are this year’s recipients of the Ehrhardt Keefe Steiner & Hottman PC Scholarships. Carter is a senior at Colorado State University who will graduate in May 2013 with a B.S. in accounting. Gaffney is a junior at the University Colorado at Colorado Springs who will graduate in May 2013 with a Bachelors in accounting and finance. Gagas is a junior at Colorado State University who will graduate in May 2014 with a Masters in accounting. Monastyrskaya-Rogers is a graduate student at the University Denver who will graduate in summer 2013 with a Masters of accounting.
Rochelle O’Neill is a graduate student at Metropolitan State University of Denver who will graduate in May 2013 with a Masters in accounting.
Lisa Uechi is the recipient of the GHP Horwath PC Scholarship. Uechi is a senior at Colorado State University who will graduate in May 2013 with a B.S. in accounting.
Dominick Ricci is a graduate student at the University of Colorado at Boulder who will graduate in December 2012 with an M.S. in accounting.
Matt Lausten is the recipient of the Gordon Scheer Scholarship. Lausten is a graduate student
Brittney Nonte is the recipient of the KPMG LLP Scholarship. Nonte is a senior at the University of Colorado at Boulder who will graduate in May 2013 with an M.S./B.S. in business administration and accounting. Jennifer Reed and Jaime Feliciano are the recipients of the Mark J. Smith Scholarships. Reed is a senior at Colorado State University who will graduate in 2014 with a Bachelors and MAcc in accounting/CIS. Feliciano is a senior at Colorado Mesa University who will graduate in May 2013 with a B.S. in accounting and MBA. Katlyn Padilla is the recipient of the Otto and Betty Butterly Scholarship. Padilla is a senior at the University of Denver who will graduate in June 2013 with a B.S. in accounting. Brooke Caton is the recipient of the PricewaterhouseCoopers LLP Scholarship. Caton is a graduate student at the University of Northern Colorado who will graduate in summer 2013 with a Masters of accountancy. Anna Zhurba is the recipient of the Past Presidents Scholarship. Zhurba is a senior at Metropolitan State University of Denver who will graduate in December 2013 with a Masters in accounting.
For information on how to apply for a scholarship, contact Gena Mantz at the COCPA office, gmantz@cocpa.org, 303-741-8613, or 800-523-9082, ext. 113.
Sept/Oct 2012
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Fraud
Higher Education….Higher Fraud Risk? by Gary Zeune, CPA
A
ny time an entity is under financial stress it’s a fraud risk. Even those bastions of ethics and integrity, colleges and universities, are not immune. Such was the case at Dickinson State University (DSU). A program to replace declining local student enrollment with foreign students at DSU in North Dakota resulted in the president being fired, the suicide of the business dean, three executive resignations, bogus degrees being issued, and a scathing audit report of a system out of control. An internal audit by the North Dakota University System found six major violations in the special international program. The report describes a deteriorating process throughout DSU that lacked controls and oversight that resulted in procedures that were “waived, or controls that were…overridden or ignored.” In December 2011, Administrative Law Judge Bonny Fetch recommended that DSU President Richard McCallum be fired. The judge wrote that McCallum’s focus was increasing enrollment at all costs. Among other things, Fetch found that McCallum knew that it was illegal to count as freshmen and give “A” grades to 213 people who merely attended community symposiums and a Walt Disney skills seminar. At McCallum’s dismissal hearing, four officials testified that he threatened them with their jobs if they failed to meet his enrollment goals. Fetch concluded McCallum’s testimony that he did not direct and did not know about the false enrollment was simply not believable. Why did McCallum do it? When the booming oil industry made it difficult to attract local students, Dickinson began to heavily recruit foreign students, who pay full, out-of-
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state tuition of nearly $13,000 compared to instate students who pay about $5,600. The majority were Chinese. The internal audit blamed McCallum for filing false enrollment reports with the U.S. Department of Education. The report said the number of questionable degrees granted to foreign students began to rise shortly after McCallum became president in 2008. During McCallum’s three-year presidency, the number of students in the program increased from a few dozen to more than 500. D.C. Coston, the new president, said the audit report depicted Dickinson as a diploma mill. He said that the problems involved 743 of 816 foreign students who entered the program since 2003. Of the 743, 584 were awarded a degree or certificate which was not valid; 120 students were then enrolled. Fifteen of the students’ grades were too low to even qualify for the program. Dickinson ignored the English proficiency requirement. Many students did not have the required documents from their home countries’ universities, and Dickinson failed to verify transcripts, some of which were fabricated. Further, DSU failed to confirm that the Chinese students had done the required course work in their home country universities. It awarded the degrees anyway. Although the audit report did not mention or find evidence that Professor Doug LaPlante, Dean of the College of Education, Business, and Applied Science, knew about the scandal, some of the affected students were business majors. When the scandal was about to be disclosed, he committed suicide near campus. Fraud is often uncovered when something unpredictable happens. The illegal DSU degrees came to light when its own staff found that not one of the 11 students who were
scheduled to intern at Disney World in Orlando had completed the degree requirements. This illustrates that one of the most powerful controls you can have is to build unpredictable procedures into ALL of your controls. For example, don’t just review cash disbursements over a certain amount. Vouch some below the threshold. Just as the restaurant health inspector does, show up at random. Due to declining enrollments and funding cuts, many public universities are under tremendous financial pressure. DSU’s enrollment fell from 2,670 students in 2008 to 2,300 students in 2011. As a result, some universities linked up with shady overseas operators to recruit international students who pay the full out-of-state tuition. Dickinson had 127 agreements with foreign schools, but only four had the required detailed plans recognized as valid. Further, the audit report said that Chinese recruiters had pretended to be DSU employees and lied to students by distributing business cards with “DSU China Center” on them. The recruiters told students they could get their DSU degree before completing their home university classes and could change their majors at will, which violated the dual-degree program requirements. The fundamental problem: DSU agreed to pay for the number of students recruited — not whether the students were successful — so the recruiters sent any student which the university would accept. And DSU couldn’t ask too many questions, or the revenue would disappear. McCallum was not on a bonus or performance pay system, so why would he manipulate the enrollment count? Seven recent studies revealed high-status people are more likely to act unethically.
In one study, researchers watched as 274 drivers in cars ranked 1-to-5 for value and prestige approached an intersection. Of the highest-prestige cars, 30% failed to wait their turn after stopping, violating the law. Yet only 8% of drivers of the lowest-prestige cars did so. Similarly, in another study involving more than 100 students, the higher-class ones were more likely to say they'd keep $10 mistakenly handed to them by a barista or engage in other unethical behaviors. In a third study, upperclass types cheated in a game of chance monitored by researchers. What’s the risk to CPAs? People get to a position where they think the rules don’t apply to them such as business owners who treat the company like their own personal piggy bank. These clients cannot run clearly personal expenses through the company without deliberately and knowingly violating the internal controls. If your client violates controls to charge personal expenses to the company, how do you then conclude there are no material weaknesses and you can rely on management integrity?
Further, even if the amounts are immaterial, they’re still illegal. Remember, just because an amount is immaterial does not mean it’s legally OK. How is it ethical for CPAs to knowingly allow any illegal deductions? The Risk Assessment Standards, Statement on Auditing Standards No. 104-111, require the auditor to understand the entity and the environment, including the controls. Here are a few risks that any CPA auditing an institution of higher learning should be alert to: • Is Dickinson an aberration or are there other universities illegally earning tuition and other fees? • Are there penalties owed to federal or state agencies, such as the Department of Education, U.S. State Department for visa, funding, and other violations? • What’s the financial impact of Dickinson’s loss of reputation and ability to attract students? • Will Dickinson revoke degrees? If so, will monies have to be returned?
• If the university does not revoke the degrees of students who didn’t earn them and return their tuition, room, board, books etc., have those monies been illegally retained — a SAS 54 “Illegal Acts by Clients” violation? • If the university doesn’t revoke degrees and keeps the monies, what’s the impact on the auditor’s assessment of management integrity? • Will the university lose its accreditation from the governing Higher Learning Commission? If so, is there a going concern issue? • If any CPAs at the university knowingly and deliberately ignored the unethical if not illegal obtaining of tuition and other funds, can the auditor rely on that CPA’s management’s assertions for financial reporting? s ©Gary D. Zeune, CPA, 2012. Zeune is a speaker and writer on fraud, auditing, ethics, and strategy who teaches CPE courses for the COCPA. Contact him at gzfraud@gmail.com.
A Look at Books: Endgame John Mauldin and Jonathan Tepper wrote this controversial book about the crisis we are living through. They believe it was more than fifty years in the making and was created by some well-intended but questionable governmental policy. I found it insightful and thoughtprovoking. From a macro-economic standpoint, they explore: • Why Greece Matters • The Burden of Lower Growth • The Future of Public Debt • Deflation, Inflation, and Hyperinflation • The United States, Europe, Emerging Markets, and the Unintended Consequences of Loose Monetary Policies On page 50, they cite research by the Kauffman Foundation: Senior Fellow Tim Kane analyzed a new data set from the U.S. government, called Business Dynamics Statistics, which provides details about the age and employment of businesses started in the U.S. since 1977. What this showed was that startups aren’t just an important contributor to job growth: they’re the only thing. Without startups, there would be no net job growth in the U.S. economy. From 1977 to 2005, existing companies were net job destroyers, losing 1 million net jobs per year. In contrast, new businesses in the first year added an average of 3 million jobs annually. Half of the startups go out of business within five years; but overall they are still the ones that lead the change in employment creation. The authors analyzed the average employment of all firms as they age from year zero (birth) to year five. When a given cohort of startups reaches age five, its employment level is 80% of what it was when it
by mark Paller, CPA
began. In 2000, for example, startups created 3,099,639 jobs. By 2005, the surviving firms had a total employment of 2,412,410, or about 78 percent of the number of jobs that existed when these firms were born. So we can’t count on the Intels or Microsofts to create employment; we need the entrepreneurs. The theme the authors continue to reiterate is one we know well as CPAs: Excessive debt and pressure on cash flow hamper growth. They take this to the national level and compare the U.S. to Japan, Europe, and the emerging markets. They talk about the tax burden the entrepreneur is going to face and how that probably will negatively affect the U.S. recovery. In the end, they conclude optimistically. They believe that the pace of change is accelerating. Instead of one thing being invented and used at a time, such as the steam engine or the personal computer, they suggest that we will be hit by multiple waves of change simultaneously, all of which will feed off one another and powered by the almighty entrepreneur. By no means is this a feel good book. Rather, it's a good thinking one that illustrates the world’s economic climate quite well. It's a worthwhile read. s Sept/Oct 2012
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The State of the Industry
Outdoor Recreation 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 outdoor recreation. by Natalie Rooney
Rick Cables
Director Colorado Parks and Wildlife Denver, CO
About the Organization Colorado Parks and Wildlife is the agency formed by the merger of Colorado State Parks and the Colorado Division of Wildlife. The agency was officially formed on July 1, 2011, but the details of merging two large agencies are still being finalized. In my first year as Director of Colorado Parks and Wildlife, I've learned quite a bit, and we've accomplished a lot to become more efficient and effective. I've learned many Coloradans don't know that our agency receives no general fund tax revenue from the state. We are funded predominantly by the fees we charge for state park passes, boat and off-highway vehicle registrations, and hunting and fishing licenses.
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What role do hunting, fishing, and state parks play in Colorado’s economy? Hunting, fishing, and wildlife watching generate an estimated $3 billion each year in direct and ripple-effect spending. Park visitation and associated programs generate another $1.7 billion. State parks see 12 million visits per year, about the same number of days that hunters and anglers take to the field. The resources and programs we manage are second only to the ski industry as a driver of Colorado's tourism economy. And we support tens of thousands of jobs, many in rural communities close to the resources we manage. Everyone sees the impact that skiing has on communities like Aspen and Vail. Hunting, fishing, and state parks have the same impact on towns like Rifle, Montrose, Basalt, Gunnison, Craig, and Buena Vista.
What challenges face Colorado’s outdoor recreation industry? Outdoor recreation is competing with some pretty strong societal trends. Today's society is urbanized and "connected." People don't go camping in the backcountry or hunting or fishing as they did in the recent past. They're sometimes afraid to go someplace if they don't have a good cell signal and a DVD player for the kids. Childhood obesity and the proliferation of video games mean lots of kids are sitting inside, unaware of the really cool things that they can find when they get outside. We have to overcome that. It's a challenge, but we find that the moment we get "newbies" to have a positive experience through camping, fishing, hunting, hiking, horseback riding, or whatever, we hook them for life. That's not only important to our ability to continue to manage resources through those fees that support our
At left: The Zoom Flume rapid in Brown's Canyon, on the Arkansas River, near Buena Vista, Colo.
operation, but it's also critically important to making sure that future generations have an understanding of the value of natural resources. Without that understanding, future voters and future generations might stand by while many of the things we all value are lost for lack of interest. We've got a new program in the state parks system called "Let's Camp!" We started it this past summer to teach people how to camp. Many families with kids want to go camping, but they're not sure where to start. What equipment do you need? What are the rules? How do you keep everybody safe and fed when you're away from town? The program answers all those questions and more. It even provides loaner equipment so families don't have to make a big financial investment just to get started. Details can be found at www.parks.state.co.us/camping/ pages/letscamp.aspx. We've got this great new series of commercials being run by the Wildlife Council here in Colorado. It's the "hug a hunter" and "hug an angler" campaign. We're trying to show hikers, bikers, and other recre-
ationists that without hunting and fishing, there wouldn't be funding to support all the things in the wild we enjoy. We don't want people to take wildlife for granted and assume that these natural places manage themselves. If you haven't seen the commercials, search "hug a hunter" or "hug an angler" on YouTube. They're worth a look.
What is your role within Colorado Parks and Wildlife? I took over as director in July 2011. My job has focused mostly on merger issues, but it's moving beyond that to setting the course for the new agency. We are pushing hard to improve service to our customers and our constituents. We're focused on retaining current customers and recruiting new customers so that we can stay financially secure. There are so many great employees in this agency who do so much. Natural resource employees are passionate about what they do. I'm busy setting a pace and guiding with a light touch, but the agency really does rush in the right direction without me having to manage a lot. Instead, I spend a lot of time lis-
tening. I listen to legislators to learn how we can improve. I listen to landowners, parks users, sportsmen — anybody who wants to talk about how we can make things better. We're a great agency with passionate employees, and I'm always looking for ways we can achieve more.
Is this a good time to be in the outdoor recreation industry? It's a great time to be in the outdoor recreation industry but not for the reasons that most people think. When we think of being in the banking industry, accounting profession, or the manufacturing industry, we think about the ability to make money or innovate. It's a great time to be in the outdoor recreation industry because the stakes are so high. We have a ton of work to do, and there aren't many people who get rich in state government. But I wouldn't trade all the challenges for another line of work. I believe in the outdoors. I believe people need to experience it and value it and conserve it and use it wisely. I believe that we can all make a difference by getting people outside.s
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2011 & 2012 “Best Companies to Work for in Colorado” 2010 & 2011 “Best Accounting Firms to Work For” Best – /best/ - of the highest quality, excellence, or standing. People. Culture. Client Service. Technical Expertise. Quality. 303.830.1120 www.acmllp.com Boulder ∙ Denver ∙ Northern Colorado
Sept/Oct 2012
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Point/CounterPoint: Will the Affordable Care Act accomplish its intended goals? Viability and Appropriateness
H
ealth care is far too important to allow the government to control — and especially under the guise of doing so at a lower cost. The government is needed and important for our protection. Examples include our military, police, firefighters, roads, bridges, and overall infrastructure. These government services enable private industry and individuals to develop other needed services. The government’s protection role Lee James, CPA is now expanding, resulting in dysfunction and increased cost. Examples include the following statements and/or actions by our leaders: "We need to pass the bill for us to know what is in it." Imagine a board accepting the CEO’s budget recommendation based on this statement. However, this occurred, and businesses, the health care industry, and individuals are still trying to determine and define exactly what is in the bill and its impact. Now, even the government is stating the cost will be greater than expected. Businesses are being told by consultants and health care professionals to prepare for higher costs, not lower. The Congressional Budget Office used six years of cost and ten years of revenue to determine the net cost of the program. Imagine an annual budget or a long term business plan established with such criteria. Based on these assumptions, the leaders of the firm then explain to the owners that all will be better in the future. This criteria and methodology will provide savings or less cost than the present system. Later, the assumptions are revised stating the net true higher costs. Our health care system is broken and needs to be fixed. If so, to expect the government to fix it and with less cost is not reasonable. Until this act, the government never stated it does anything for less cost. If the health care system is broken, provide incentives for private companies and individuals to change it. Private companies and individuals constantly prove they can accomplish substantial things in spite of the government, not because of it — and can make a profit doing it. Isn’t that the very essence of capitalism?
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Congress Had to Act
W
e have tried to run the United States health care system on a forprofit basis for the past 60+ years, and it clearly does not work. According to the World Health Organization (WHO, www.who. int – Using the Data Explorer Feature), in 2010 the United States total health care expenditure as a percentage of Gross Domestic Product was 18% followed by France and Germany at 12%. In fact, we spend the most in the developed mark Paller, CPA world on health care. In the WHO ranking of the world’s health systems (which was last produced in 2000 because of the complexity of the task) we are listed in 37th place behind such countries as Chile, Denmark, the Dominican Republic, and Costa Rica. The Gallup Global Wellbeing Index reports the percentage of people who think they are “thriving,” “struggling,” or “suffering.” The U.S. ranked in 14th place — a far cry from first place. Some might think because we spend the most in the world we would have the longest life expectancy at birth. However, OECD's (Organization for Economic Co-Operation and Development) data from 2009 shows that the Japanese can expect to live to 83, followed by Germany, Spain, the United Kingdom, and France. U.S. life expectancy at birth is 79. Aren’t these facts an indication that something is amiss? We were spending too much for what we were getting. Those who have the resources are able to get the care they need. But before passage of the Patient Protection and Affordable Care Act, tens of millions of people who are just scraping by, laid off, or cut out of the system because of a preexisting condition, were left out in the cold. Under the new Patient’s Bill of Rights: • Insurers are required to provide preventative services which include, at a minimum, annual wellness visits, cancer testing, diabetes monitoring, and blood pressure screenings. • Seniors receive 50% discounts on covered brand name drugs and new discounts on generic drugs. • The gap in the Medicare prescription plan, known as the donut hole, will be closed in 2020.
We have too many uninsured people, and our system does not provide equal quality health care. Having uninsured people does not equate to obtaining no health care. Our nation is magnanimous in helping people who need help, including hospitals that don’t turn people away. Is it reasonable to believe the government can do better? Veteran hospitals usually prove the opposite. What makes us believe the new health care approach is going to improve care? Less fortunate citizens may obtain worse care, instead of better, and at a higher cost — paid by taxpayers and businesses. We are the only industrialized nation in the world that does not have a national health care system. That does not make the new system better, right, or appropriate. There are many things our nation does that others don’t — and with overall positive outcomes. That is why entrepreneurial spirit flourishes and has, in the past, been so successful compared to much of the world. When crises occur, the government is usually outstanding at addressing emergency needs. However, anyone who has served in the military, worked for the government and later works in private industry, or obtained government assistance usually finds it costly and inefficient. We should not undermine our present system for a government-controlled system under the guise of “affordable.” Instead taxpayers and businesses will be expected to pay more under the façade of government’s role of protecting its people and probably at a higher cost and worse care. s Contact Lee James, CPA, of James, Lee & Associates, at Leerjames@aol.com.
• Young adults who do not have employer-sponsored coverage may stay on their parents' plan until age 26. • Health care coverage is now available for those who have been denied because of a pre-existing condition. • If a person makes an honest mistake, insurance companies can no longer cancel coverage. • Insurance companies must publicly justify any “unreasonable” rate hikes. • Annual dollar limits on health benefits will be phased out by 2014. • You will be able to seek emergency services at a hospital outside your health plan’s network. • The law guarantees your ability to appeal denials of payment for services. • Starting in 2014, all Americans will have access to affordable health insurance. The only way to improve the system was with governmental intervention — the current system surely wasn’t working. s Contact Mark Paller, CPA, of Paller Financial Services Inc., at mpaller@qwestoffice.net.
Call for Writers
The times are constantly changing and so is the subject. If you would like to participate in Point/CounterPoint, contact Krista Flynt at kflynt@cocpa.org.
Movers & Shakers Gov. John Hickenlooper appointed Kevin F. Collins, CPA, of CliftonLarsonAllen LLP, Greenwood Village, to a four-year term on the Colorado State Board of Accountancy, beginning in fall 2012.
accountant; Amber L. Elsberry, CPA, to senior financial accountant; and Steven D. Hovland, CPA, CrFA, to associate principal.
BKD LLP announces the promotion of Ryan Gorman, CPA, James Gulick II, CPA, and Katie Willemarck, CPA, to manager. Also promoted: Tammy Rivera, CPA, to senior manager; Rand Gambrell, CPA, to senior managing consultant; Jodie Cates, CPA, to director; and Anthony Giordano, CPA, to senior vice president.
KatzAbosch shareholder M. Kent Thomas, CPA, CCIFP, CCA, was invited to present to his peer group as an industry expert at the 21st Construction Industry CPAs/ Consultants Association Annual Conference in Chicago.
Dalby, Wendland & Co., P.C. announced the following promotions: Melissa K. Hoaglund, CPA; Lisa A. Thon-Kollar, CPA; Janet M. Lee, CPA, MT; and Sabrina J. Hoyt, CPA, to tax supervisor. Also promoted: Erin L. Duckworth, CPA, to senior
CBIZ MHM, LLC, hired Dave Mowery, CPA, for its Denver office. The company also recently promoted Brandon Brewbaker, CPA; Scott Grimes, CPA; and Grant Spannuth, CPA, to senior associates.
Eide Bailly LLP added Cost Seg Associates, LLC, a Minneapolis-based firm. Todd Harker, CPA, has been promoted to tax partner and now runs the Edwards and Frisco offices. StarkSchenkein, LLP, welcomes new audit partner Matthew D. Beerbower, CPA.
RubinBrown promoted Kathy Maher, CPA, to manager. Bauerle and Company promoted Sarah Montgomery, CPA, to senior accountant. Michael D. Weatherwax, CPA, will receive the William H. Van Rensselaer Public Service Award from the National Association of State Boards of Accountancy (NASBA) at its 2012 annual meeting, Oct. 30, in Orlando, Fla. The award is the highest honor NASBA bestows. Weatherwax is a former COCPA president, past president of the Colorado State Board of Accountancy, and past NASBA Chair of the Board. He previously received the COCPA’s public service award and distinguished service award for his significant contributions to his community and to the CPA profession. Sept/Oct 2012
www.cocpa.org
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Elder Care
The Perfect Match
I
n the mid-1990s, the AICPA began encouraging CPAs to specialize in elder care services, one of the new “assurance services" at the time. While many CPAs have been working with clients for years to prepare for retirement, the United States’ rapidly aging population has ratcheted up the demand for experts in this area.
Filling a Need According to U.S. Census Bureau data, by 2050, the number of Americans aged 65 and older is projected to be 88.5 million, more than double the projected population of 40.2 million in 2010. Everyone wants the assurance that as they or their family members age, their financial, medical, and residential needs will be met and carried out according to their wishes. Elder care planning and services fill that need. Elder care can cover a wide variety of services, says Linda L. Gardner, CPA, co-owner of Blue Heron Capital, LLC, Castle Rock, Colo. During 25 years as a tax practitioner, Gardner helped clients plan for the financial needs of retirement and aging including estate, retirement, business succession, charitable gift, and long-term care planning. Gardner was already receiving an increasing number of questions from clients about aging, Medicare, Medicaid, and Social Security, and she was helping her own mother transition to long-term care when she approached the COCPA in the early 90s about putting together a course encompassing these topics. “They Society asked if I wanted to write the course, so I did,” she laughs. “I had to really learn it to teach it.” Before the CPA Vision Project shone a light on elder care, Gardner says, “We didn’t call our services ’elder care services.’ We were just meeting the needs of elderly clients. Now elder care services are widely recognized. There’s more and more awareness as the population ages.” Gardner says elder care has taken on more importance over the years because an unprecedented number of people are nearing
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retirement age. “Baby Boomers are helping their parents work through age-related issues at the same time they’re planning their own retirement,” she says. “There has been more formal recognition of elder care needs, and more CPAs are interested in providing these services.”
The Components of Elder Care What does elder care planning look like today? Gardner describes it has having four key components: • Financial planning • Retirement income planning • Estate planning • Financial management “People’s biggest fear is outliving their money,” she says. CPAs need to help their clients take a hard look at their income and assets along with their long-term care planning. Government statistics show that 70 percent of people who reach age 65 will need some form of long-term care at some point in their lives. “Most people think this just won’t happen to them, and it causes them not to plan,” Gardner says. “But they need to plan for the costs as well as where and how services will be provided.” CPAs assisting older clients may be asked to oversee finances, or they may take on more involved roles such as handling investments, serving as a coordinator for various service providers, tracking income and asset management, paying bills, providing trustee services, and serving as part of a team along with family members, attorneys, and other trustees. Services CPAs also may be asked to provide include: • Reviewing documents to make sure clients have, at the very least, a will, Medical and Durable Powers of Attorney, perhaps a trust, and more. Since the accountant isn’t practicing law, he or she should refer the client to an estate planning and/or elder law attorney whenever there are questions.
By Natalie Rooney
• Ensuring documents are up to date. If not, the client should again be referred to an attorney. • Reviewing beneficiary designations on retirement accounts, annuities, and life insurance policies to make certain the beneficiaries correspond to the rest of the client’s plan. Note: Beneficiary designations will trump a will, so it is critical the designations are up to date. • Reviewing assets, investments, and debt. • Reviewing retirement income and expense projections, which should include a program to account for the effects of inflation. • Planning with clients for current and future living arrangements according to their goals, which might include staying in their home, moving in with family, or moving to a senior living facility. • Understanding medical care options, including insurance, veteran benefits, long-term care options, and how these relate to the types of insurance carried by the client. Be sure you know who will coordinate the long-term care — you as the CPA, a trustee, or a family member. • Understanding the client’s current physical and mental status and recognizing any changes. As your client’s health changes, you will need to approach planning in a different way. You need to have a written plan in place with the client and family as to who will be assisting in decisions if the client is unable to participate, as well as who will determine whether the client is able to participate since that determination would be outside the scope and capability of the CPA.
Suited to CPAs CPAs bring a lot of qualities to the table that can benefit aging clients and their families. “We’re trusted advisors who will look out for our clients’ best interests,” Gardner
“
We’re familiar with our clients’ financial situations so they naturally turn to us and ask, "What should I do? Who should I talk to? Can you help me?" — Linda L. Gardner, CPA
says. “We’re familiar with our clients’ financial situations so they naturally turn to us and ask, ‘What should I do? Who should I talk to? Can you help me?’” Not only can CPAs provide many of the consulting and services needed, but also those who choose to practice in this area will know who to call on when expertise in a different area is needed, drawing on a network of resources in the business community. Even if the CPA doesn’t practice in elder care services, Gardner says it’s not uncommon for clients to ask their CPA to be their trustee or personal representative because of the trust relationship that already is established. Providing elder care services goes beyond the numbers and finances. Personal skills such as empathy, patience, listening, and understanding a client’s situation are all vital. Gardner also emphasizes having an awareness of the client’s mental and physical state and being able to recognize changes over time. “These aren’t things you learn when pursuing your accounting degree, but they are so important,” she says.
long-term care and health care issues may be something new to them. CPAs can set themselves apart by developing specialized knowledge, not only of the laws but also of the local resources available. “It’s important to have a basic understanding of long-term care, what the expectations could be, the costs involved, and how they’re increasing,” Gardner says. “What kinds of services does your client need and how will they be paying for them?” Initially, her own clients were confused by Medicare and Medicaid and how long-term care policies differed from the government programs. She focuses on educating her clients so that they understand the differences and what it means to their long-term care plans. “CPAs who offer elder care services need to understand the different options available.” Gardner advises CPAs who are thinking about adding elder care to their practices to use some of their tried and true strategies for a successful engagement: • Know who your client really is. Is it the aging individual or someone acting on the individual's behalf?
Specialized Knowledge
• Develop a written engagement letter specifying what services will be performed, as well as what is excluded.
Fact: People are living longer, and extended care is only going to get more expensive. While CPAs may have a firm grasp on the financial aspects of retirement planning,
• Obtain written authorization from the client regarding with whom you can discuss the situation and what type of information you can disclose.
• Know the key players including professional advisors and family members. Who holds the durable power of attorney? Who are the trustees and successor trustees? Who are the family members involved in creating and carrying out the plans? Who is not to be involved? Who should you contact if you notice changes in your client? Gardner emphasizes the importance of the CPA being aware of any caregiver changes and the way the client is invested, as well as unexplained increases in monthly cash or other expenditures, to ensure the client remains protected. Unfortunately, there are too many examples of caregivers who preyed on older individuals for fraudulent purposes. The AICPA encourages CPAs who are considering adding elder care to their practices to consult their insurance carriers to make sure their existing policies provide the necessary coverage. Some elder care services may not be covered under a professional liability policy but could be covered under a general liability policy or by endorsements. “Elder care is an important service that can certainly be handled well by CPAs,” Gardner says. “It’s a practice area that is going to continue to grow as the population ages. The need will be there for years to come.” s Linda Gardner can be contacted at 720488-8604 or Linda@BlueHeronCapital.net. Sept/Oct 2012
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Classifieds Opportunities Available
What’s Not in Your Inbox? Looking for the latest update on professional issues from the Colorado Society of CPAs that someone mentioned to you – but you didn’t receive? Wishing you’d get advance notice of member events by email? Help us make sure you get what you want and need by providing your current email address. To update your member record, change your email address, or indicate you want to subscribe to email communications from the COCPA, go to www.cocpa.org and hover over the My Account link. Click on Update Personal Profile and scroll down to review your communications preferences. Or, contact the COCPA office at 303773-2877 or 800-523-9082. We’ll take care of you — and your inbox.
Join Us for Executive Happy Hour September 20 — 5:30 p.m. Breckenridge Brewery 2220 Blake Street, Denver No need to RSVP.
Denver CPA firm with 3 shareholders in a 10 person office would like to attract a partner level person who is interested in a near-term ownership opportunity (6-18 months). Our firm provides a wide variety of services including tax planning and compliance (60-70%), audits, compilations, reviews, business consulting, and estate planning. Industry specializations include new car dealerships and non-profit organizations. The ideal candidate would have 10-20 years of recent CPA experience, a solid background in taxation and accounting, strong leadership skills, a good understanding of practice building, and good client retention skills. The ability to research and interpret tax laws is a must, and human resource experience would be helpful. If this opportunity seems to fit your background and career goals, please e-mail your resume or letter of interest (in confidence) to jtanner@htdcpas.com.
Practices for Sale, Purchase, or Merger Fred Mehring, Select Business Group, Inc., specializes in the sale, merger, and acquisition of accounting and tax practices. Over 25 years of experience. Confidentiality stressed! Call Fred Mehring at 303-771-3100, fax 303-477-6010, or fmehring@selectbg.com. CPA firms or partners. We represent a number of quality CPA firms who are looking to merge or sell their practices to other CPA firms or partners with business. Locations are in the Denver area. This is an opportunity to ensure your future as well as help your clients by expanding your services to them. Why settle when you can select? Established in 1939. For further information, please contact: Phil Rubeck at D&R Associates of CO, 720-446-7020, or email: dandrassociatesofco@aol.com.
Purging Clients? Does your practice need support transitioning clients you no longer wish to serve? Small CPA firm is expanding its Colorado base. Experienced practitioner has openings for a limited number of clients needing tax and/ or full accounting services other than financial audits. For more information, email kflynt@cocpa. org with Box #85064 in the subject line. Touchstone Business Advisors is experienced in the sale of CPA practices. We are retired CPAs and advisors/brokers ourselves. Considering the purchase, sale, or merger of a practice? Please visit http://bit.ly/GKB3z2 to view a short video on selling your practice and our website for a free copy of our Accounting and Tax Practice Sale Organizer, which will guide you with what information is vital to a practice transfer. We provide personal service and confidentiality. Contact Tom Lang, CPA, 303-726-7646, or Rich Bevelhimer, CPA, 303-917-4146, www.touchstonebiz.com.
Miscellaneous CPA Focused IT Support. Live Consulting is the complete IT solution for CPA firms in Denver, Boulder, and Castle Rock. Plans and packages available to meet your unique needs. Solutions for Cloud Computing, Scanning and Document Management, Service Agreements, Virus and Spyware Removal, Complete Network Design, and Troubleshooting. To find out how you can save on recurring IT costs, go to www.LiveConsulting.com or call 303-217-3000 today! Client references available upon request. Appraisals — personal property. Professional appraisals of Commercial and Agricultural Equipment and Livestock for Estates, Trust Planning, Buy Sell Agreements, and Partnerships. Confidential reports prepared by appraisers Bo Tuey and Ron Hays both certified by the American Society of Agricultural Appraisers. Reports prepared with integrity using USPAP standards. We know equipment and livestock. West Plains Ag Appraisals, Fort Morgan, Colorado: 970-768-9690 or 970-768-4129. Email: tueyhays.westplains@ gmail.com.
Designed to ensure meaningful networking opportunities for all members, this event offers a fun, engaging, and professional environment in a social setting.
Well established CPA in Telluride is selling the Homeowners Association (HOA) portion of her business, which includes HOA management, accounting, and tax preparations for twenty HOA’s. There is an excellent potential to grow the HOA business in this area. Contact roberta@ telluridecolorado.net or call 970-728-3584.
Complimentary appetizers and one free drink ticket will be provided thanks to our sponsors Seigneur Gustafson LLP and Tradewinds Solutions Inc.
Boulder Practice for Sale. Well established small Boulder CPA Practice for sale. 90% tax. Sole owner will remain active next tax season to provide solid transition of clients to new owner. No reviews/audits. Send inquiries to kflynt@ cocpa.org re: Box #H21.
We regret the loss of the following CSCPA member. We extend our sympathy to his family and friends.
Hosted by the COCPA Young Professionals and Member Connections Committees
Small tax practice for sale. Gross is $65,000. Business and personal returns. Greenwood Village area. Email vogler.cpa@comcast.net.
Jerome Ginsberg Member since 1950 Denver, CO
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NewsAccount Sept/Oct 2012
In Memoriam
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Sept/Oct 2012
www.cocpa.org
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Colorado Society of Certified Public Accountants 7887 E. Belleview Ave., Suite 200 Englewood, CO 80111-6076
Periodicals Postage
On the Horizon: Upcoming CPE September 19
NEW Mastering the Applications of Budgeting While Side Stepping the Pitfalls
Identify the most troublesome areas of real-world planning and budgeting, and circumvent them with this brand new course. (COCPA or webcast)
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NEW Reading, Understanding, and Structuring LLC and Partnership Agreements from a CPA’s Perspective
Focus on the provisions of an LLC or partnership agreement or state law that can affect tax reporting, and examine some of the language used to achieve certain objectives. (COCPA or webcast)
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October 10
2012 CPAs in Industry Conference
NEW Practical Applications of Asset Protection
Explore the practicalities of using asset protection for various purposes for your moderate to high net-worth clients. (COCPA)
15 16 17
Annual Update for Accountants and Auditors
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NEW I See It! Bringing Into Focus the New Clarified Auditing Standards Find out what the first
September 20 (Inverness Hotel or webcast)
Social Media and Employment Law Hot Accounting and Auditing Topics Going to The Cloud Economic Update State Sponsored Business Financial Incentives Two Hours of Ethics
NEW iPad — An Effective Business Tool (COCPA)
TO REGISTER
(Colorado Springs) (Pueblo) (Alamosa) This course is your all-in-one class to explore the relevant pronouncements, exposure drafts, and consensus reports recently issued in the accounting, auditing, compilation, and review arenas.
comprehensive rewrite of the SASs since 1972 entails and its implications for your auditing practice. (COCPA or webcast) Visit: www.cocpa.org • Call: 303-773-2877 • Toll Free: 800-523-9082