COCPA NewsAccount - 2016 - July/August Issue

NewsAccount July/August 2016 Colorado Society of CPAs

Meet the Millennials PAGE 14

AICPA/CIMA Vote Passes PAGE 4

2016 Women to Watch Named PAGE 20

Contents Features

4 6 10 14 20 23

AICPA/CIMA Proposal to Advance Profession Approved Members overwhelmingly approved a proposal to create a new, international accounting association.

COCPA Board Opposes ColoradoCare Amendment 69, ColoradoCare, would amend the Colorado Constitution to create a new health care system for Colorado. The COCPA Board urges you to vote NO.

Melancon: Prepare for Changes Ahead AICPA President and CEO Barry Melancon, CPA, CGMA, explains why the profession must be prepared for change.

Meet the Millennials You’ve read the articles, heard about the stereotypes, and maybe even developed an opinion based on experience. But what do you actually know about Millennials?

Women to Watch Named Introducing COCPA's 2016 Women to Watch. Read about this year's Emerging Leaders and Leaders of Note and what they're accomplishing in the profession.

COCPA Member Takes on Tax Reform James C. Tanner, CPA, MT, has always had a great interest in tax reform. But it wasn’t until five years ago that he started to take action.

Departments

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Chair Column Movers & Shakers and In Memoriam ON THE COVER: In 1981, Raiders of the Lost Ark was the top-grossing film; Ronald Reagan became President; and Lady Di married Prince Charles.... It was also a big year for the generation that would change everything.

Chair Column

NewsAccount A bi-monthly publication of the Colorado Society of Certified Public Accountants Vol. 62, No. 2 July | August 2016 Board of Directors Mark T. Solomon, Chair Tawnya Y. Ramirez, Vice Chair Benjamin T. Hrouda, Treasurer Steve R. Corder, Immediate Past Chair Mary E. Medley, Secretary Directors Christine Benero, Ann E. Hinkins, Gregory P. Osborn, Christopher J. Telli, Dan W. Soukup, Karen F. Turner Editorial Board Jack Allgood, Alan D. Bennett, Kay R. Dragon, Peggy Jennings, Georgia Z. Phillips, Lori Anne Reinwald, Laura J. Theiss, Barbara J. Tedesko, R. Stephen Van Meter, Michael D. West, Charlie Wright Mary E. Medley, President/CEO Natalie G. Rooney, Contributing Writer Blue Ocean Ideas, Design 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, and additional mailing offices.

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 NewsAccount is available online at www.cocpa.org.

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• NewsAccount • July/August 2016

Behind the Scenes with the AICPA

BY MARK SOLOMON, CPA, CGMA

T

he 2016 AICPA Spring Council meeting in New Orleans was one of my first official duties as this year’s COCPA Chair.

The agenda was full of sessions on cutting edge topics, led by industry leaders. Cyber security, big data, the accounting firm in 2020, diversity and inclusion, and the future of learning all generated thoughtful discussion amongst attendees.

A former FBI agent spoke about bringing down cyber hackers and offered advice for protecting ourselves and our companies. Another presenter performed real-time data mining analysis. How would you like for a haircare company you follow on social media to message you each day and recommend a hair product based on the weather in your area? We were even shown how many people were inquiring on Facebook that day about getting tattoos. A map showed us that most of the tattoo seekers were in Texas and 30 percent of them worked in IT. Only 1 percent of tattoo seekers that day worked in accounting, by the way. It is mind boggling what can be done with the enormous amounts of data companies are collecting about us.

AICPA President and CEO Barry Melancon, CPA, CGMA, shared analysts’ predictions about how artificial intelligence will displace much of what CPAs do today. As a profession, we need to be figuring out our business model and value proposition – and thinking about how we’d deal with that possible scenario.

Speakers ran the gamut from external experts to internal experts, including a few from the COCPA ranks: former AICPA Chair Greg Anton (currently serving on the International Federation of Accountants) and Melissa Hooley, Chair of the AICPA Women’s Initiatives Executive Committee.

What struck me over the two and a half days is how many different initiatives are going on

at the AICPA. The Institute has masterfully assembled a huge network of volunteers, many of whom came up through their state CPA society ranks. They’re leading initiatives such as the future of the profession, diversity, women in the profession, technology, the dynamics of the marketplace, and much more.

This all has been eye opening for me as I’ve become more aware of what is really happening behind the scenes in our profession. The AICPA and COCPA aren’t social clubs. Whether it’s talking to members of the Colorado legislature or Congress, championing initiatives important to and for the profession’s future success, or evolving the CPA exam (to name just three of hundreds of examples), what these groups are doing for all of us is incredible. It’s pretty cool when you see it happen firsthand. And the contributions from these smart, committed volunteers across the country make it all happen.

Even more astounding is that these volunteers do it in addition to their existing personal and professional commitments.

Greg Anton and Melissa Hooley are both partners at Anton Collins Mitchell LLP who also work to further our profession on national and international levels. It is one thing to have the strong AICPA and state CPA society staffs behind us. The extreme level of volunteerism and involvement by these committed volunteers is even more inspiring. There’s so much movement behind the scenes we never know about until we see it for ourselves.

Experiencing all of this at the Spring Council meeting was a great way to set the tone for the year. I’m looking forward to the challenges and events ahead – and I now know about block chain technology. Google it.

Email Mark Solomon sm-energy.com. s

at

msolomon@

WOMEN’S SUMMIT Strategies for the Successful Woman CPA

August 19, 2016 • 8:30 A.M. to 4:30 P.M. • Denver

TOPICS INCLUDE: • Leveraging Differences for a Better Bottom Line Caroline Turner, Difference Works

• Things I've Learned Along the Way – Panel Bob Hottman, EKS&H LLLP, and Mary-Margaret Henke, Western Union

• The Six Rules of Influence Dan Chenoweth, Chenoweth & Associates

• Saying Yes! Success Through Joy and Laughter Linda Klein and Barbara Gehring, creators of the hit show GIRLS ONLY – The Secret Comedy of Women®. A.C.E Entertainment

• The Power of Words: Managing Gossip and Rumors in the Workplace Robbie Glantz, Glantz & Associates

• Get Off the Bench Susie Wargin, former Sports Anchor for 9News

to register, visit summit.cocpa.org.

2 0 1 6 Aw a r d s C e l e b r a t i o n Rebecca Chopp, PhD

C h a n c e l l o r, U n i v e r s i t y o f D e n v e r Keynote Speaker A u g u s t 1 9 • 5:00 to 7:00 P.M. • Denver Register at www.cocpa.org.

Chancellor Chopp emphasizes the importance of community – among students, faculty, staff, alumni, and friends of the University – and creating a welcoming and inclusive campus where people from all backgrounds can thrive.

Before coming to DU in 2014, Chopp was president of Swarthmore College and served as president of Colgate University. She also served as provost and executive vice president for academic affairs at Emory University and as a dean at Yale University.

Chopp is a widely published author and editor. Her six books include Remaking College: Innovation and the Liberal Arts (2013), which she coedited with Haverford College President Dan Weiss; The Praxis of Suffering:

An Interpretation of Liberation and Political Theologies (1986); and The Power to Speak: Feminism, Language, God (1989).

Chopp serves on the governing board of the Association of American Colleges and Universities and is past chair of the Centennial Conference President's Council. Previously, she was on the board of the National Survey of Student Engagement. Chopp also has served on the executive committee of the Annapolis Group; on the Board of Trustees of the Carnegie Foundation for Teaching; and as president of the American Academy of Religion.

A Kansas native, Chopp received a BA from Kansas Wesleyan University, an MDiv from St. Paul School of Theology, and a PhD from the University of Chicago. Each of her alma maters has honored her with distinguished awards, and she has received six honorary doctorates from other colleges and universities.

International Update

AICPA/CIMA Proposal to Advance Profession Approved

M

embers of the American Institute of CPAs (AICPA) and The Chartered Institute of Management Accountants (CIMA) overwhelmingly approved a proposal to create a new, international accounting association that will integrate operations of both organizations, while preserving the existing membership bodies.

Voting concluded in separate AICPA and CIMA membership ballots on June 16, and a supermajority of members who voted from both organizations endorsed the proposal.

The AICPA ballot passed 86.5 percent to 13.5 percent, according to independent tabulator Survey and Ballot Systems. CIMA members endorsed the proposal 89.7 percent to 10.3 percent, according to their independent tabulator Electoral Reform Services.

“In developing this proposal, we were careful to structure commitments to CPA and CGMA, CIMA and AICPA, and public practice and management accounting,” said Barry Melancon, CPA, CGMA, AICPA

President and CEO. “We are excited about crafting a path forward that reflects how the world is changing. At the same time, we will be extraordinarily mindful of protecting our collective history and the strong reputation both organizations have built over the past century. This is about building on what is great – and addressing an exciting, evolving world.”

The new association will represent more than 600,000 current and future accounting professionals and will raise the profile of public and management accounting in the U.S. and abroad. It will enhance resources, provide more market insights, and have a stronger advocacy voice. AICPA members will receive these benefits and automatic dual membership in the AICPA and new association as part of their regular AICPA dues, which will continue to be set and adjusted in line with historic norms. The AICPA will continue its strong partnership with state CPA societies to promote, protect, and grow the CPA.

Fifty-two state CPA societies passed resolutions in support of the member ballot proposal, including the Colorado Society of CPAs Board of Directors, which welcomed the vote outcome.

“This is an important milestone for the profession, one that ultimately will benefit accountants of today and tomorrow as they navigate accelerating complexity and change,” said COCPA Chair Mark Solomon on hearing of the vote results. “My thanks to all the AICPA members in Colorado who took the time to evaluate this proposal and vote. The accounting profession here, across the country, and around the world will be stronger because of the diverse input and insights shared during this process.”

The new association is expected to launch in 2017. In the coming months, additional details will be provided as they become available. s

August 15, 2016 MARIJUANA BUSINESS SYMPOSIUM August 19, 2016 WOMEN’S SUMMIT

SAVE THE DATE 2016 Conferences For details, contact COCPA at 303-773-2877, 800-523-9082, or go to www.cocpa.org.

October 20, 2016 GOVERNMENTAL CONFERENCE October 26, 2016 CPAS IN INDUSTRY CONFERENCE November 14–15, 2016 TECHNOLOGY CONFERENCE November 17, 2016 ACCOUNTING AND AUDITING CONFERENCE December 13, 2016 SEC AND PCAOB CONFERENCE December 15, 2016 MIX AND MATCH CONFERENCE

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• NewsAccount • July/August 2016

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July/August 2016 • www.cocpa.org •

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Leadership Imperative

COCPA Board Opposes ColoradoCare

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ov. 8, Colorado voters will decide not only which candidates will be elected to office but also which ballot initiatives and amendments will be approved or defeated. One of those proposals is Amendment 69, ColoradoCare, which would amend the Colorado Constitution to create a new health care system for Colorado through a state-operated, single-payer health regime. The COCPA Board of Directors encourages you to vote NO. Proponents (www.ColoradoCareYES.org) describe the proposal as “a resident-owned, non-governmental health care financing system designed to ensure comprehensive, quality, accessible, lifetime health care for every Colorado resident. Premiums will be collected from Coloradans based on income, securing health care regardless of financial circumstance. ...ColoradoCare will cover all residents and still cost less than the current system.

ColoradoCare will not be an agency of the state nor be controlled by any state executive, department, commission, board, bureau, or agency. It will be exempt from TABOR.” “Ignore this proposal at your peril,” says COCPA CEO Mary E. Medley. “No matter what you think about the Affordable Care Act and the current healthcare environment, amending the Colorado Constitution to experiment with a new healthcare system guarantees unintended, unfortunate, and ultimately costly consequences for Colorado citizens. Once it’s in the Constitution, it’s effectively there to stay.”

The No on 69 Campaign (www.coloradansforcoloradans.com), to defeat the proposed amendment, highlights the following specific concerns:

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• NewsAccount • July/August 2016

It is costly – and how costly is unknown.

Employers would have a new 6.67% tax on total payroll, and all workers would pay another 3.33% tax on all payroll income. In addition, all Coloradans would be subject to a new 10% income tax on non-payroll income, including income from interest, dividends, pensions, etc. The resulting $25 billion tax increase would essentially double the current state budget. ColoradoCare would be a first-of-its-kind, state-level, government-run health care program. Its board would be empowered to manage expenses and revenues to keep the program solvent.

If the $38 billion of revenue ($25 billion in new tax revenue plus $13 billion of existing healthcare funding) is insufficient to meet expenses, the board would be forced to choose: reduce benefits, reduce payments to providers, and/or raise taxes. Tax increases would require “member” approval. A member is defined as a beneficiary who is at least 18 years of age and whose primary residence has been in Colorado for at least one year. “Members” will not be representative of the current eligible or registered voters in Colorado.

It is unaccountable. ColoradoCare is designed to operate outside state government and TABOR limitations, run by a 21-member board elected by plan “members.” The board would decide coverage, negotiate prices and reimbursement rates, and raise taxes as needed, without accountability to the Governor or Colorado Legislature.

It affects business owners and sole proprietors disproportionately.

These Coloradans would pay both the new taxes – 6.67% in new payroll taxes, plus an additional 10% on all non-payroll income including business profits, even if those profits are not withdrawn from the business and distributed to the individual. Corporate tax filers also will pay the 10% tax, but only on distributions – not on profits. Steve Corder, COCPA Past Chair observes, “Small accounting firms and sole proprietors would end up paying a disproportionate amount of the new tax.”

It would be embedded in the Colorado Constitution, making it extremely difficult to amend, address flaws, or repeal.

It would create uncertainty. The amendment outlines 11 broad categories of coverage (e.g. ambulatory patient services, hospitalization, emergency and urgent care, palliative and end-of-life care) but no specifics on benefit levels – making it impossible to compare current coverage with what Coloradans might receive under ColoradoCare. In addition, it would create a significant new tax burden and an uncertain healthcare environment, making it difficult for businesses and workers to know whether Colorado is a good place to do business or earn a living. Note that Medicare and Tricare (military) beneficiaries would not lose their current coverage, and it is very likely they would not receive services under ColoradoCare. They would, however, pay the new tax.

Under Amendment 69, nearly all Coloradans would lose their current benefit plan, to be replaced by benefits yet to be determined, to be serviced by an entity yet to be identified, to include providers yet to be named.

Medley sums it up: “It’s bad public policy, and it’s bad for Colorado citizens. Just vote NO on Amendment 69.” s

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Find out what’s happened with the COCPA Strategy Initiatives since June 2015. Learn what’s happening on the national and international scenes which affects and challenges you and the CPA profession. Understand what branding is and how to use it successfully. Identify the hard trends which can help guide strategy. Prioritize what’s critical, essential, and significant to be successful as an anticipatory CPA and anticipatory organization.

Regulatory Update

The New DOL Overtime Rule

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n May 18, 2016, the Department of Labor (DOL) released its final rule, “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees” which outlines updates to the Department’s overtime rule. The new rule goes into effect, December 1, 2016. The DOL estimates that this rule change will affect some 4.2 million workers across the United States not currently eligible for overtime and may reclassify an additional 8.9 million salaried workers as nonexempt.

Businesses nationwide are assessing the effects of the new overtime-pay rule, with many companies saying the regulation will lead them to reduce workers’ hours, cut benefits, or limit flexible work arrangements.

Companies will have until December 1, 2016, to make determinations on which employees to reclassify as nonexempt and implement the changes.

Under the Fair Labor Standards Act (FLSA), employees must be paid overtime for any hours worked over 40 hours in a workweek. The FLSA contains exemptions for

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• NewsAccount • July/August 2016

certain employees in “white collar” positions. Currently, to be considered exempt, employees must: 1. be paid on a salary basis (the salary basis test) 2. be paid more than $455/week which amounts to approximately $23,660 annually (the salary threshold) 3. perform

primary

duties

consistent

with executive, administrative duties test)

professional, or positions (the

The new rule will incorporate the following changes.

STANDARD SALARY EXEMPTION CHANGES • Sets the new standard salary threshold at $913 per week or $47,476 annually

Worker Type

Current Threshold

Proposed Rule

Final Rule

Changes from Current

Hourly

Nonexempt

No change

No change

No changes

Salaried: Executive, Administrative, Professional (EAP or "white collar" exemption)

More than $23,660 Exempt

More than $50,440 Exempt

More than $47,476 Exempt

Less than $23,660 Nonexempt

Less than $50,440 Nonexempt

Less than $47,476 Nonexempt

Less than $100,000: Nonexempt

Less than $122,148 per year Nonexempt

Less than $134,004 Nonexempt

More than $100,000: Exempt

More than $122,148 Exempt

More than $134,004 Exempt

Nonexempt

No change

No change

Salaried: Highly Compensated Employee (HCE)

Salaried: Neither

101% increase in threshold

34% increase in threshold

No changes

– the Executive, Administrative, Professional (EAP or “white collar” exemption). This represents the 40th percentile for the lowest-wage census region in the nation, currently the South. This standard exemption will be tagged to the 40th percentile of workers in the lowest wage census region and will automatically update every three years, beginning January 1, 2020. The DOL must post the new standard exemption salary level 150 days in advance of the effective date (August 1, 2019 for the January 2020 update).

• Allows up to 10% of the salary threshold to be met by nondiscretionary bonuses, incentive pay, or commissions. These payments must be made at least quarterly.

HCE SALARY EXEMPTION CHANGES • Sets the new highly compensated employee (HCE) exemption at $134,004 up from $100,000. This HCE threshold is tagged to the 90th percentile of workers nationally. It will automatically update every three years, beginning January 1, 2020. The DOL must post the new HCE salary level 150 days in advance of the effective date (August 1, 2019 for the January 2020 update).

COMPENSATORY TIME The final rule does not take into account certain nuances of the accounting profession like the spike in tax preparation work performed seasonally. Under the FLSA, only public agencies (states, a political subdivision of a state, or an interstate governmental agency, and some public universities that qualify as “public agencies”) may utilize compensatory (“comp”) time to cover overtime pay obligations. According to the DOL, “Private employers cannot satisfy their overtime obligations by providing comp time and must pay overtime-eligible employees an overtime premium for hours over 40 in a workweek.”

DUTIES TEST • No changes were made to the duties test.

2016 CPAs MAKE A DIFFERENCE SAVE THE DATE

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Grand Hyatt Downtown, Denver

Seeking Nominations for Everyday Heroes and Heroines Nomination Deadline: September 1, 2016 Contact Terry Cervi for details, terry@cocpa.org, or visit heroes.cocpa.org.

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FOR MORE INFORMATION Check out the following resources for further details: Final Rule Link: https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-11754.pdf DOL Fact Sheet: https://www.dol.gov/whd/overtime/final2016/overtime-factsheet.pdf DOL Overview and Summary: https://www.dol.gov/sites/default/files/ overtime-overview.pdf DOL Frequently Asked Questions Page: https://www.dol.gov/whd/ overtime/final2016/faq.htm DOL White Paper/Fact Sheet on Non-Profit Sector: https://www.dol. gov/sites/default/files/overtime-nonprofit.pdf DOL’s Guidance for Businesses: https://www.dol.gov/whd/overtime/ final2016/general-guidance.pdf DOL’s Guidance for Non-Profit Sector: https://www.dol.gov/whd/ overtime/final2016/nonprofit-guidance.pdf DOL Fact Sheet on the E, A, P or “white collar” Exemption: https:// www.dol.gov/whd/overtime/fs17a_overview.pdf s

"Unforgettable, interactive, hilarious, and inspiring" – that's what you can expect when keynote speaker Craig Zablocki once again headlines this special evening.

July/August 2016 • www.cocpa.org •

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Leadership Perspective

Melancon: Prepare for Changes Ahead

BY NATALIE ROONEY

What’s on the horizon for the accounting profession? Change. And lots of it, says AICPA President and CEO Barry Melancon, CPA, CGMA. Listen to Melancon for a few minutes, and you’ll realize change should be on your mind, as well. From audit transformation to Millennials to mergers and acquisitions, there’s a lot of ground to cover. Melancon covered much of it with NewsAccount contributing writer Natalie Rooney shortly before the AICPA Spring Council meeting in May, 2016.

The AICPA currently has a major project underway with Rutgers University (http://raw.Rutgers.edu/radar.html). The eight largest firms have provided data relating to their overall auditing methodology using data and artificial intelligence. The study will examine how these approaches to auditing will enhance protection of the public interest.

AUDIT TRANSFORMATION The audit as you know it today may be unrecognizable in just ten short years, Melancon says. One of the key elements in its evolution is the use of technology, artificial intelligence, and big data by large firms. The notion of statistical samples in auditing is giving way to technological methods in all transactions in a data set.

The changes will have a trickle-down effect to all aspects of the profession.

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• NewsAccount • July/August 2016

“Ultimately, we’ll tie in standards and methodology changes,” Melancon explains.

“Technology, and broadly, big data and artificial intelligence, is changing how people access books and records and how they are going to provide modern audit techniques in a modern environment. This is what we mean when we say the audit will change and how we go about doing it,” Melancon says.

“It will clearly be different from what we grew up doing and even what accountants today will grow up doing.”

Assurance services also will continue to evolve. Later this year and into early 2017, the AICPA will release three different guides about cybersecurity. These guides will help position the profession as a key player in cybersecurity assurance. And these assurance services aren’t limited to large firms. The effect will cascade down to smaller firms.

“Smaller organizations need to be able to address these services, as well,” Melancon says. “It all ties into our family of services that we developed a few years ago and will be an area of significant growth.”

THE ACCOUNTING PIPELINE Data analytics may not have been on your required course list in college, but universities need to embed data into their curricula to make students more marketable. Not only will firms be looking for data skills, but also the Uniform CPA Exam will test for them.

“In a year, the CPA Exam will include significant new content,” Melancon says. “It will test new cognitive skills and will ultimately drive change at universities.”

Melancon says leaders of the top 20 accounting firms want to hire graduates with solid data analytic skills and broadly based technical skills. “We’re seeing a pattern where firms are hiring graduates not only from traditional accounting programs but also from STEM backgrounds to create a skill set.” Firms are creating teams with this collection of talents.

“Clearly, a person with accounting and other skills sets is very well-positioned,” Melancon says. “Even at small firms, we’re seeing these teams made up of people with different backgrounds – some from accounting, some

from STEM. We live in a complex world.

Organizations’ success will be in their ability to assemble different skill sets to solve a problem and conduct a quality audit.”

preneurs.” It’s a trend that will continue to manifest itself as Millennials create different pathways. Melancon says the AICPA/CIMA joint venture is an extension of the trend.

of that. Accounting is the language of business, and your success factors are higher if you understand the financial aspects of how the world operates.”

Ultimately, CPAs also must get comfortable with the idea of CPA-led firms but not necessarily CPA-dominated firms. With twothirds of client service personnel made up of non-CPAs, the composition of the 44,000 firms in the United States is undergoing radical change.

“How do we connect with these young professionals in all of the different disciplines they seek?” Melancon asks. “If we only define the profession through CPA firms, their touch to the profession won’t be there in 20 years. Many will come back into firms at some point which you wouldn’t have seen twenty to twenty-five years ago. Now it’s common. So how do we connect to that broader-based notion of the profession? It’s reflective of this changing environment.”

Industry specialization also is important for the accounting profession to meet its public interest mission in understanding the business models in which companies operate, Melancon says. “Business models are changing rapidly in every industry.”

The number of people obtaining the CPA designation is up, but the proportion of individuals to the total accounting graduate footprint is down. It’s a trend that has been in the making for 20 years as the migration pattern of work continues to change.

Twenty years ago, the predominant path was to go into public accounting after graduation. “Now, accounting graduates can go anywhere,” Melancon says. “They can go to a firm, into corporate, or become entre-

Melancon also points out that the accounting profession offers the entrepreneurial building blocks Millennials are seeking.

“Accounting is a pathway to ownership,” he says. “People coming out of school with accounting skills are well-positioned to be entrepreneurs, and we ought not to be afraid

THE M&A FRONT With record numbers of mergers and acquisitions over the past several years and 2016 set to be on track as another record breaker, Melancon says many firms see M&A as their answer to a variety of challenges such as growth, human capital, technological innovation and the need for scale, changing client needs, specialization, and succession.

Want more to think about? Keep reading NewsAccount – more to come. s

Explore your opportunities at aicpa.org/aicpacredentials.

July/August 2016 • www.cocpa.org •

11

Future Ready

Leadership Council Highlights What It Means to Be An Anticipatory CPA And More

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n June 13, 100 CPAs and guests gathered at the Inverness Hotel and Conference Center in Englewood, to hear about the economy, look at hard and soft trends, consider bold actions to take, and learn to surf the waves of change. Here are a few of the highlights from the day, led by COCPA chair Mark Solomon, CPA,CGMA. CLIMS COCPA vice chair Tawnya Ramirez, CPA, CGMA, reported on progress with the COCPA initiatives finalized at the 2015 Leadership Council meeting, observing that fundamental change has been going on behind the scenes. (See CEO Mary Medley’s article in the May/June 2016 NewsAccount, page 6.) The acronym, coined by immediate past chair Steve Corder, CPA, CGMA, stands for Content Management & Delivery; Leadership Development; Innovative Culture & Competency, Member & Customer Service, and Sustainable Revenue Streams. Look forward to updates on all five in future issues of NewsAccount and in your experiences with your professional home.

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• NewsAccount • July/August 2016

ECONOMIC FORECAST Connor Lokar, economist with ITR Economics™ , Manchester, New Hampshire, focused on getting ahead of the curve. He noted that U.S. Government spending is $1 out of every $5 spent in total. And, in spite of what you’re hearing about impending doom, election results actually begin to affect the U.S. economy as far out as 18 months later. Also: • Expect a macroeconomic recession every ten years in the U.S. ITR is predicting a mild recession in 2019.

• The U.S. debt is going to be a major issue by 2030.

• In the U.S., we’re addicted to looking over our shoulders to see who’s gaining on us. It’s not Japan, Germany, or the U.K. (especially post-Brexit).

• Non-residential construction generally lags the U.S. economy. Residential construction generally leads the U.S. economy.

• There are nearly 5M job openings in the U.S. – up 14.6%.

• 66% of the U.S. economy is based on consumer consumption.

• This is an extremely mobile and confident workforce. People (Millennials) are willing to leave their jobs because they’re confident they can find a more fulfilling and/or better compensating position.

• Millennials have now surpassed the Boomers and Gen Xers as the largest demographic in the workforce.

• Millennials need to see people like them – diverse, young, ethnically varied – in their workplace. They are stuck in the rental rut. Those who entered the workforce before or during the recession are less likely to afford housing now.

They will sacrifice owning a home for the ability to jump to a new position and a new city.

• Millennials will climb a few rungs on the ladder, then jump to the next ladder.

• 19% of Millennials believe people can be trusted, compared to 40% of Boomers, 37% of Silents, and 31% of Gen X’ers.

• Millennials view themselves as free agents rather than long-term employees. It’s important to highlight

what the potential path within a company or organization is for the Millennial employee.

FUTURE READY IMPERATIVE Tom Hood, CPA, CGMA, President and CEO, Maryland Association of CPAs and Business Learning Institute, Towson, Maryland, focused on what strategies you need to learn to give you an edge in this rapidly changing, ever-shifting environment.

The Number One Issue facing people today is time in this Age of the Overwhelmed Employee, according to work of Josh Bersin, principal with Deloitte Consulting LLP and founder of Bersin by Deloitte (www.bersin. com). He writes about and researches corporate talent, learning, leadership, and HR best practices around the world.

The question is this: If we’re so busy that we can barely keep up, how can we ever be proactive? Hood outlined five areas you need to consider to be future ready: Context, Certainty, Capacity, Competence, and Core Beliefs.

Check out these nuggets: • The safest work – as in the least likely to disappear in the future – is massage therapist. Tax preparers and accountants/auditors are respectively

98.7% and 93.5% most likely to be automated, right behind call centers as the most likely work to be automated.

• Commit to one hour a week to think about the future.

• Gen Z (coming after Millennials) is the first totally mobile generation.

Keyboards won’t mean anything to them.

BUILDING YOUR BRAND Brody Bond and Greg Rittler of Blue Ocean Ideas, Towson, Maryland, talked about brand development and management, reminding attendees that “brand” is the promise of an experience, not a logo or a tagline alone. They capped off the day with a few additional concepts to ponder:

• Your new acronym is VUCA: Volatility, Uncertainty, Complexity, Ambiguity.

• What you focus what you miss.

on

defines

• Tackle what you can control: yourself, your team, your sphere of influence.

• Trust is the currency of relationships.

• The hard trend will happen – people will age. The soft trend may or may not happen – old people will be less active.

• Humans are uniquely disqualified to know what we’re projecting to the world because we can’t see our own faces.

• It’s only disruption if you choose to ignore it, not see it, or overlook it.

• The Twelve Archetypes are “homing beacons.” Are you an Explorer? Is your organization a Sage? Is your team made up of Creators?

• 70% of all transactions now are done on mobile devices.

• 6 Ways to Create Capacity: Maximize software and tools you have; Use the latest and most efficient technologies; Focus on workflow and process efficiency; Focus on your best “A” clients; Communicate your services (cross-sell to your clients); Engage your people.

• Core Purpose & Values: everything is changing, WON’T change?

When what

• Change Prerequisites include Courage, Strategy, Resilience, Speed, Leadership, and Agility – making progress with imperfect information; customer centric; limited “work in progress”; sustainable pace; starting where processes are today; the five whys (asking the question “why” five times); the value of intuition; and the practice of build, measure, learn (as the alternative to ready, aim, fire). s July/August 2016 • www.cocpa.org •

13

Career Focus

MEET THE MILLENNIALS

BY NATALIE ROONEY

You’ve read the articles, heard about the stereotypes, and maybe even developed an opinion based on experience. But what do you actually know about Millennials? Read for yourself about what the nation’s largest generation really wants.

T

he first Millennials were born in 1981.

According to the U.S. Census Bureau, as of April 2016, Millennials have officially surpassed Baby Boomers as the nation’s largest living generation. Millennials, defined as those ages 18-34 in 2015, now number 75.4 million, surpassing the 74.9 million Baby Boomers (ages 51-69). If you’re not sure what makes this group tick yet, read on.

MOTIVATING MILLENNIALS KPMG National Manager of Faculty Relations Stephanie Hernandez, CPA, says the firm spends a lot of time talking about what motivates Millennials. “Ultimately, they’re seeking a rewarding career, just as everyone else is” she says.

As it turns out, Millennials want to make sure they’re working with purpose. The 2012 study, Crunch Time: Why Purpose is Everything to the Modern Workforce. If You’ve Got It, You Can Change the World, found that working for an organization with a clearly defined purpose is second only to pay and benefits in importance for employees, and it ranks ahead of promotion opportunities, job responsibilities, and work culture. Two-thirds said a higher purpose would motivate them to go the extra mile in their jobs. A similar study by Net Impact showed that almost half of today’s workforce would take a 15 percent pay cut to work for an organization with an inspiring purpose.

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• NewsAccount • July/August 2016

In 2014, KPMG launched a Higher Purpose initiative, encouraging people to look at their work from a different perspective.

Employees were asked to reframe their roles and share stories articulating the higher purpose behind what they do. The firm set a goal of 10,000 stories and ended up with more than 40,000. While the firm expected Millennials would play a major role in this effort, the surprise result was that the stories came equally from all generations. “Everyone wanted to contribute,” Hernandez says. “The generations really aren’t that different from one another. They all want to feel a sense of purpose in what they’re doing.”

Hernandez says she has seen a lot of intern groups come and go. Now more than ever, she’s seeing a sense of pride. “The idea of being intentionally focused on why you go to work has changed,” she says. “There’s just a different level of connection to the work.

I’ve seen a change in how people talk about what they do.”

Hernandez also observes that Millennials

have confidence in their abilities and are comfortable talking to people at different levels in the organization. “They want to feel someone is investing in them professionally,” she explains. “They have ideas to bring to the table and want to vocalize those ideas.

It’s important for an organization to listen rather than saying, ‘You’re new, so let’s just do it this way because we’ve always done it like this.’ That shuts down a Millennial pretty quickly.”

Millennials tend to be quick to ask questions, which is good Hernandez says. But she adds that they have a tendency to ask before considering the resources they have ­­– a result of being raised in the digital age where information and quick answers are the norm. “We coach interns on this a lot and encourage them to check their resources first,” Hernandez says.

Often Millennials want a clear career path so they know exactly what the next step is. ”It’s important to have strong managers in place who will have structured,

detailed conversations about what someone is doing well, where improvements are needed, what the next level is, and how to get there. Our goal is for each person in the organization to receive a detailed career plan and in-depth career coaching,” she says. “This structure has been influenced by the Millennial generation’s desire for meaningful career coaching.”

TIPS FOR MILLENNIAL EMPLOYERS A good Millennial environment is one that includes them in the decision-making process from a cultural standpoint. “For example, consider asking interns or new hires for suggestions about the performance management process,” Hernandez says. “Asking them what they’re looking for as two-way communication is important.”

Ultimately, Millennials don’t want to be praised for how many hours they work; they want to be recognized for being smart and effective. “They want to work hard and get the job done well.”

CONTINUED ON PAGE 16 July/August 2016 • www.cocpa.org •

15

Career Focus

IN THEIR OWN WORDS MOLLY CLARK, CPA Years in the profession: 3 Title: Audit Associate, Kundinger, Corder & Engle, PC Job Responsibilities: I’m in a transitional phase where I’m starting to in charge more jobs.

What are you looking for from an employer? What are your expectations?

I lucked out getting hired by KCE. They’re pretty progressive in their employer/employee work-life balance. It’s hard in this profession with tax season when most CPAs are expected to work 80-hour workweeks. But at KCE, they really stress balance. They don’t want you working 80 hours a week because they want you to get out and be a productive member of your community, whether it’s through volunteering on a board or coaching a youth sports team. Personally, I like that I’m able to go to the gym or do yoga or enjoy a craft beer after work without having to worry about what audit I’m currently working on. When you have that balance, you look forward to work because you’re not overwhelmed. If I were in the position of working 80 hours a week, it would push me out of the profession.

What do you want for your career? What are your long-term goals?

I see myself as a partner in the firm I’m working for. I’m very comfortable where I am. I think a lot of Millennials want to move around these days for something more exciting and different, but my longterm goal is to stay here, make partner, get married, and have kids.

We’ve nailed it here at KCE. I couldn’t have landed a better place to

be. There are so many great benefits, and I love all of the people. This gig makes me want to stay and give back. KCE already has given so much to me personally and professionally.

What provides satisfaction in the workplace?

I have awesome coworkers! Everyone is so fun to be around, so I’d say it’s the people that make this a great place. And Steve (Corder) is alright (laughing). Personally, I think KCE is as good as it gets. This is a great place for Millennials. The firm values what we expect from our job, so we’re able to strike a good balance.

How do work and a personal life co-exist? What does that look like?

I make my personal life a priority. Certainly, there are weeks we work over 40 hours, but at the same time I make it a priority to go to the gym or do yoga every week. Deadlines can become overwhelming, so it’s especially important that you take care of yourself outside of work. It’s as important as anything else in life. And I think this is all part of this newer generation. Millennials expect this balance and these benefits from their employer and hopefully their employers recognize it because eventually, all you’ll have is Millennials in the workplace, and you’ll have to adapt or fall behind. It’s good for business.

What makes you happy?

Being around family and friends and being active makes me happy.

And craft beer makes me happy! We have a brewery across the alley from our back door. It might be dangerous on Fridays this summer, but we’re excited for it to open.

SETH HOSFORD Years working in IT: 5 Title: Field Technician, Information Services, Bauerle & Co. Job Responsibilities: I do a lot of work for our IT Solutions group. I go out to client sites and help with software and hardware issues in addition to handling internal IT issues at the firm.

What are you looking for from an employer? What are your expectations?

I have huge expectations. I want to be up with the times and current on technology. I want always to be

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• NewsAccount • July/August 2016

moving forward in the workplace. Money is also an important issue for me. I dislike having my time wasted. If there’s nothing going on, what’s the point of waiting around and doing nothing? Time is the only thing you can’t get back. If it’s not necessary for me to be in the office, I’d rather not be.

What do you want for your career? What are your long-term goals?

I’m in school for my Bachelor’s degree. If I stay in this field, I’d like to move to a higher level. I want to always be learning, knowing the current technology, and feeling I’m moving up in my field.

What provides satisfaction in the workplace?

In addition to always growing and learning, I want to be adequately compensated for my time and level of work.

Benefits are important as well and should be competitive, including vacation. When I’m working, I’m totally focused on work. When I’m off work, I want to be off work and not worrying about it.

How do work and a personal life co-exist? What does that look like?

I like to keep them completely separate. If you’re not at work, you shouldn’t be thinking or talking about work. It might come up in some conversation, but don’t let work rule your life. You can’t live to work. This is a huge thing for Millennials.

What Else Do Millennials Want?

BY PATRICK KELLY

Patrick Kelly created Change Point Consulting to help “make work places engaging, empowering, and inspiring” and to assist organizations in attracting and retaining more Millennials as employees, customers, and clients. As a Millennial himself, he understands the generation’s mentality and offers the following observations.

• Millennials are unwilling to settle for less than what they really want.

• Purpose, flexibility, personal development, and empowerment are way more important than money – they all outrank it.

• Millennials want a challenge.

More than 60% would rather make $40k/year in a job that is challenging and engaging than $100k/year in a job that is boring and repetitive.

• Millennials seek companies that match their core values and allow them to share those values with the world.

• The words ‘because that’s how we’ve always done it’ will be the death words for companies. Technology, the changing workplace, and what people expect from work are changing too much to do things the old way.

• Give a clear path to growth, but don’t make it linear – “Choose Your Own Adventure Book!”

personal goals and havto do. You can’t get time money or material things to do what I want to do,

• Millennials have changed the focus of where value is.

What used to be most important: the number of hours you work. Now: it’s about value output and efficiency.

This is because Millennials grew up in the time of Moore’s Law, the observation that, over the history of computing hardware, the number of transistors in a dense, integrated circuit has doubled approximately every two years.

JAKE HUOLIHAN, CPA

• Stop thinking about work-life balance; think about worklife integration. We all know that not just work things happen from 8am to 5pm, and only personal things happen from 5pm to 8am. The more you allow both lives to become one, the happier your employees will be.

What makes you happy?

Achieving success in my own ing the time to do what I want back. There will always be more but not time. When I have time I couldn’t be happier.

Years in the Profession: 5 Title: Manager in the Public Sector Assurance Group, CliftonLarsonAllen LLP Job Responsibilities: I work with a lot of state and local clients in Colorado, as well as higher education institutions in the U.S. We perform mostly financial statement and compliance audits. On a day-to-day basis, I manage relationships with clients and staff completion of work, in addition to reviewing staff work.

What are you looking for from an employer? What are your expectations?

Flexibility is a big thing. When you talk about the Millennial generation, myself included, we want to be able to work CONTINUED ON PAGE 18

• The Millennial Problem is an adaption problem, more than likely. Millennials aren’t an alien species that came from outer space. They are people – and they are more in tune with how the future workplace will operate and what people will expect from work.

Kelly says, “If your company runs on rules and regulations that were put in place before the internet and computers became central to our lives, thinking that those rules will still work today in your company, and will be good enough to attract and retain top talent and keep you in business moving forward, you are out of your mind.” It’s as simple as that.

Patrick Kelly is the founder and President of Change Point Consulting.

Contact him at patrick@changepointconsulting.com.

Career Focus IN THEIR OWN WORDS CONTINUED FROM PAGE 17

outside the standard 8am to 5pm, if it suits you. Maybe it’s not given to everyone right away, but it’s something we want to be able to earn and work toward. I don’t necessarily need to be able to dictate my schedule, but I like the option of having that flexibility. I also look for transparency in progression, knowing what to expect in terms of salary and what it will look like in the next 5 – 10 years.

I look for transparency in the promotion process as well – how long I can expect to be at a certain level before responsibilities start to increase. Responsibility has to be earned, and I get that, but I think Millennials want to grow into it relatively quickly. Additionally, I enjoy a cool office location and working with high profile clients. I like seeing my clients in the news and knowing I make a difference.

What do you want for your career? What are your longterm goals?

I’d like to stay in public accounting and eventually become a partner. For me, titles do seem to be important and carry weight with Millennials. I’m looking for growth, as an individual and a professional. I want to be seen as a leader in the firm and the field as I work my way up. There are two things about becoming a partner. First, everyone’s experience is difference. Second, the flexibility aspect. We work in a technological environment and can have the flexibility of not needing to be in the office to complete our work. The old days of working 6 am to 10 pm could scare people away from public accounting, but the profession is shifting to flexibility and more balanced expectations. I hope that will stop scaring people away from the profession.

What provides satisfaction in the workplace?

I’ve been a part of the recruiting process for the last few years and see that having events – functions at Top Golf, taking recruits to a

Rockies game – can be beneficial and are something people look for in a highly competitive environment. In the office, the shift seems to be happening more slowly. The people entrenched in decision-making don’t have the same view yet, but things are changing. I like having a more communal workspace, and a cafeteria or “student unionlike” place to hang out would be nice. From my experience, people like that type of environment since we collaborate so much in public accounting. We’re a young, concentrated group, and so many people in Denver are transplants that we form quick bonds with coworkers due to the amount of time spent together. A space to relax and build relationships in the office would bring people together even more.

How do work and a personal life co-exist? What does that look like?

It goes back to flexibility. I made manager relatively quickly and have been given quite a bit of responsibility and flexibility for my age. If I have an appointment or need to stay home and sign for a package, I can work that into my schedule, or I can come in a little later. I can get personal life stuff done and still complete my responsibilities and get my charge hours in. In college, I had a manufacturing job, and that’s definitely an industry where flexibility isn’t an option. I appreciate having the balance which public accounting can afford.

What makes you happy?

I probably get most satisfaction from completing jobs well, on time, and getting positive feedback and recognition on the back end.

Those are things Millennials really strive for. Getting that positive feedback and recognition is important to me and my generation.

As one of our partners likes to say, “We’re the gold star generation.”

While that may be somewhat of a tongue in cheek comment, it definitely has some basis.

HILLARY MARSH Years in the Profession: 3 Title: Tax Associate, Eide Bailly LLP Job Responsibilities: I do a little bit of everything. We’re a mid-sized firm so I get to see every type of project we handle, including corporate and individual returns, nonprofits, fiduciary, etc. I’m getting great experience.

What are you looking for from an employer? What are your expectations?

When I was looking at firms, I wanted to find a firm where I could have a positive impact, work with nonprofits, and have flexibility. Eide Bailly told me I could have all three, and that was huge for me. I could have work-life balance and still make a positive impact with nonprofit organizations. Salary also was an important factor for me. I started my freshman year of college as the recession started, so throughout college I witnessed the start of high unemployment rates for college graduates. I wanted to find a career that would both satisfy me and give me financial stability.

What do you want for your career? What are your long-term goals?

I am drawn to the nonprofit world, and that is where I started my career, originally with Mile High United Way and Share Fair Nation.

Throughout my time there I knew it wasn’t exactly what I pictured for my future. When I moved to public accounting, I chose Eide Bailly because it’s a great size firm for allowing employees to work on a variety of projects. I think having a career where no two days feel the same

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• NewsAccount • July/August 2016

JASON SANDS, CPA Years in the Profession: 10 Title: Revenue and Compliance Supervisor, SM Energy Company Job Responsibilities: My team manages the revenues coming from the wells we operate. We also manage the compliance reporting with state and federal regulatory agencies.

What are you looking for from an employer? What are your expectations?

Loyalty both ways. If I’m loyal to them, and if I earn it, I’d expect that they’d be loyal to me. I look for opportunities to grow and be challenged and to achieve my career objectives.

is great, and I still am able to focus on not for profit organizations.

I’m very happy right now, and I’m getting to do what I love. In four or five years, there might be another way I can make an even bigger impact, but right now I am enjoying having a career that offers such a variety of work.

What provides satisfaction in the workplace?

Eide Bailly does a good job of making it an energetic environment.

Tax season was hard, but we still found ways to have fun. Part of that is flexibility. Some of us worked 8am to 8pm. Others worked 10am to 10pm, or 6am to 6pm. We were given the flexibility that allowed us to work at our best. We had a ping pong tournament and were able to always find time to enjoy work. I am lucky to have a great group of coworkers – even during the busiest weeks there was still laughter in our office. Some nights all the associates would have dinner together before pushing out a few more hours of work.

How do work and a personal life co-exist? What does that look like?

This career has helped me realize that spending time outdoors hiking with my dog is very important for me. During busy season, I learned that Sunday needed to be my day, whether I was hiking, playing with the dogs, or just cooking a nice dinner, I need that day to recharge. For me, that meant that if I had to work late on Saturdays to finish my projects, I could do that and then recharge on Sunday. On Mondays, I come back ready to work.

What makes you happy?

Two words: flexibility and purpose. I can live my life, and work goes along with it but does not solely define it. I need to be driven by something. I want to make an impact and improve the lives of those in my community in whatever career I have.

What do you want for your career? What are your longterm goals?

As an older Millennial, I have a little bit of a different perspective.

I want to be able to develop other people and pass on the information I’ve learned over my career so others can achieve their goals. It’s rewarding to see others achieve success. I also want to be able to lead and influence an organization and its employees through my actions.

I feel I have a lot to offer and see value when I can influence people to make tough, critical, and ethical decisions. I’m hoping I can be an example through my career. I love working in a team. Opportunities to collaborate and achieve a common goal are more rewarding than doing it on your own.

What provides satisfaction in the workplace?

I’m satisfied when I can see my colleagues and peers producing quality work that’s useful to our stakeholders. Working with a purpose is very satisfying – in fact, it’s the number one thing for me. We really take time in planning and executing value-added work, not just busy work. I also like to see fair recognition given in the workplace – both positively and negatively – not just getting the ribbon. I like it when people aren’t afraid to make hard decisions. Those decisions are important instead of taking the easy way out. I get satisfaction when people I work with realize they control their own destiny – when they realize they worked for and achieved success, and they were in control of it.

How do work and a personal life co-exist? What does that look like?

I have a decent work-life balance. I definitely work a lot, but that’s OK, because it’s a necessity right now. It doesn’t affect my outside life though. I serve on a charity committee. I just wrapped up work on a nonprofit board. I find time to exercise and spend time with my family and my daughter. It’s great here.

What makes you happy?

Spending time with friends and family, working out, running, being outside. s July/August 2016 • www.cocpa.org •

19

In Service to Others

2016 Women to Watch Named On Aug. 19, the COCPA, in collaboration with the AICPA, will honor the following individuals with the 2016 Women to Watch Award. You’re invited to celebrate with them at a special reception in Denver.

Read on for their stories of service, commitment, and passion for making a difference.

LEADERS OF NOTE These women CPAs have attained leadership positions within their organizations, have made notable contributions to the accounting profession, help improve their workplaces, and mentor others.

JUDY CAIN, CPA Tax Partner, EKS&H LLLP, Denver Judy began her career with Deloitte LLP in Denver and worked on the Dallas-based national oil and gas team. Twenty years later, after a stint in her own widely recognized mining, oil, and natural gas tax firm, she and her partner Randy Strandberg joined EKS&H in 2006. Since then, she has helped lead oil and gas and natural resources to become the firm’s largest client industry niche with well over 200 clients served by more than 40 tax professionals.

A frequent speaker at industry events, national conferences, and on campus at CU and CSU, Judy is active in the Western Energy Alliance and the Council of Petroleum Accountants Societies (COPAS).

The Denver Business Journal recognized her as a leading Woman in Energy. Judy is known for her contributions in creating innovative incentive equity arrangements and her mastery of alternative capital structures as well as “waterfall” provisions.

Judy’s community passions include education and the personal and professional development of women. An advisory committee member for the Alliance for Choice in Education (ACE) Scholarships since 2007, she is a past board member and treasurer for the Women’s Bean Project.

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• NewsAccount • July/August 2016

Judy directly coaches ten EKS&H professionals and has helped lead the charge to grow women’s presence, involvement, and leadership in the firm. Tax senior Melissa Blansit writes, “Judy has taught me the distinct and important differences of a coach, mentor, and sponsor: a coach talks to you, a mentor listens to you, and a sponsor talks about you. She’s played each of these roles for me, whether or not it was her official responsibility – and she encourages me to be an authentic and wellbalanced professional.”

Whether a result of her professional achievements, commitment to community service, or personal mission to develop future leaders, Judy Cain is a true Leader of Note.

CHRISTINE NOEL, CPA Associate Professor of Accounting, Metropolitan State University of Denver, Denver Christine joined the Metro State accounting faculty after having served on the faculties of Casper College, William Woods University, and Colorado State University-Pueblo. You could say she came full circle, since she earned her undergraduate degree at Metro State before earning her MS in Accounting from CU-Denver and her PhD in Business Administration (Accounting) from Trident University.

Considered the auditing guru among Metro State accounting faculty, Christine teaches the undergraduate auditing course and the advanced course in Metro’s Master of Professional Accountancy (MPAcc) program. Her teaching ability is recognized not only by her students – who consider her the auditing instructor – but also by the School

of Business Outstanding Teacher Award. As colleague David M. Dirks writes, “She is one of the few, rare faculty members who is both well-respected and well-liked by her students, in large part because she relates to them in special ways.” One example: When Christine taught the graduate level ethics course, she took students to New Belgium Brewing in Fort Collins to learn about its noted ethical standards.

Governor John Hickenlooper appointed Christine to the Colorado State Board of Accountancy in September 2015. She is a member of the Colorado Trust audit committee and Colorado Mountain Club finance committee. A frequent speaker on the accounting profession at local high schools, Christine has been a Girl Scout leader in Wyoming, Missouri, and Colorado.

If there’s a task to be done, Christine always is one of the first to volunteer. She is an active member of the COCPA Accounting Careers Committee – which she became involved with while at CSU-Pueblo. As Dirks puts it, “Christine Noel deserves recognition not by virtue of any single thing she does; she deserves it by virtue of everything she does.”

DEBBI C. WARDEN, CPA, CGMA Partner, Entrepreneurial Services Group, RubinBrown LLP, Denver Debbi is a principled, high energy leader with a penchant for learning and knowledge sharing. Her passion for both creates an environment rich for mentoring opportunities. Her colleagues say she has a knack for explaining difficult financial topics easily

and simply. She is committed to creating a positive workplace where professionals can excel and thrive.

In 2014, Debbi was featured in the Journal of Accountancy’s August cover story discussing new ways to increase profitability and enhance client relationships by converting to a flatrate billing initiative, as her former company, The Business Manager, had done. In 2015, the Denver Business Journal named Debbi an Outstanding Woman in Business.

Debbi was among only 40 CPAs nationwide invited to join the AICPA Private Companies Practice Section (PCPS) Annual Forum in Washington, DC, an opportunity to share best practices and practice management insights with CPA colleagues.

A former COCPA Board member and active on the COCPA Financial Literacy Committee, Debbi is a frequent speaker on financial literacy topics through the Women’s Bean Project, Warren Village, Junior Achievement, and the Salvation Army. She possesses the unique ability to engage attendees so that they feel they are truly growing in their financial knowledge.

Debbi is a former chair and volunteer of the year for the Castle Rock Chamber of Commerce.

She’s written articles for ColoradoBIZ magazine, the Small Business Digest, and CPA Practice Advisor, to name a few.

RubinBrown partner Steven Harris writes, “Highly regarded in the Denver market, Debbi is an effective leader and strategist whose boundless energy contributes not only to the firm’s success but also to the continued growth of the accounting profession.”

Clearly, Debbi Warden is a Leader of Note.

EMERGING LEADERS These women CPAs have demonstrated leadership and have made significant contributions to the profession and their communities, while still on the path to the highest levels of advancement.

ERIN BREIT, CPA Director, Employee Benefit Plan Practice, Anton Collins Mitchell LLP, Denver Erin began her career in public accounting with Aronson & Company, Rockville, Maryland. She joined ACM in December 2006. She has invested over a decade of her career working exclusively on audits of employee benefit plans and nonprofit organizations. She leads much of the annual ACM internal training on employee benefit plans, including coordinating the event topics and speakers. She’s presented at the AICPA National Employee Benefit Plan Conference on health and welfare basics and women’s initiatives – not just for women.

She’s also spoken for FEI, the Finance Executives International organization.

Erin serves as the champion for ACM’s recruiting efforts at Fort Lewis College in Durango, serving as the firm’s liaison with the school and participating in Meet the Firms events, oncampus recruiting, and office visits. She has established strong, meaningful relationships with professors and students alike.

Erin believes giving back to the community is of utmost importance. She serves as a junior board member for Florence Crittenden Services, a Denver nonprofit that educates, prepares, and empowers teen mothers to become productive members of their communities. She knows that by helping young mothers be successful, the organization will influence the lives of future generations. Erin also serves on the Colorado Public Plan Coalition Board.

“Erin is a huge asset to ACM,” writes CEO and Chairman Greg Anton, CPA, CGMA. “She has demonstrated outstanding leadership as a young professional, as well as in her philanthropic endeavors. She continues to seek out new opportunities to give back to the profession and her community.” Ten plus years in, it’s clear Erin Breit is an Emerging Leader to watch.

MEGHAN MAHALA DACK, CPA Reporting Supervisor, SM Energy Company, Denver Patrick Lytle, CPA, CGMA, SM Energy’s Director of Financial Planning and Reporting, writes: “Over the last three-plus years, I’ve watched Meghan develop into one of the strongest leaders with SM Energy’s accounting department. She exhibits her leadership skills in numerous ways and cares deeply about her employees and their development. Meghan provides regular feedback, understands each of her team members’ strengths, and challenges them.”

Pat adds, “Meghan has transformed the financial reporting group through her focus on process and people. Effectively delegating tasks is an art, and Meghan has mastered it – as evidenced by her team’s development, their desire for continuous improvement, and their respect for her. Meghan’s unselfishness in putting her team members first, always willing to answer a question, explain a point of view, or work through a problem has resulted in Meghan earning her team members’ trust.”

An active volunteer, Meghan was selected to chair the COPAS-Colorado Financial Reporting Committee, a role she filled for three years. She also has taught the Junior Achievement curriculum to elementary students for the past four years, has volunteered with Habitat for Humanity, and has volunteered with the not-for-profit Global Goods and Coffee Shop.

And, by the way, this Metro State accounting graduate, cum laude, group fitness instructor at APEX Center, former Phamaly Theatre Company finance committee member, and former Rocky Mountain School of Dance instructor/choreographer recently returned to work from maternity leave for the birth of her first child, ready to keep on inspiring others to be the best and do their best. Truly, a Woman to Watch.

CONTINUED ON PAGE 22 July/August 2016 • www.cocpa.org •

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In Service to Others WOMEN TO WATCH CONTINUED FROM PAGE 21

KERRI HUNTER, CPA Deputy State Auditor, Office of the State Auditor, Denver Colorado Deputy State Auditor for almost five years, Kerri oversees the annual financial and single audits for the state. That’s $33.9 billion in assets, $26.9 billion in expenses, and $10.9 billion in federal funds for Fiscal Year 2014.

Kerri leads a staff of 23 financial auditors, as many as three interns, and contracts with nine CPA firms, covering 29 state agencies and higher education institutions, totaling just over $2,982,000. How’s that for higher math?

No one would call it easy work, especially this year. The state implemented a new accounting system beginning, July 1, 2014 – replacing its 22-year-old COBOL-based accounting system – and that meant everything changed for the Fiscal Year 2015 audit.

Teams couldn’t rely on the same reporting from previous years, and statistical sampling used in prior years didn’t work due to so many anomalies with the numbers. The Basic Financial Statements due from the State Controller in September 2015 weren’t issued until January 2016. Sounds like the typical IT conversion, doesn’t it?

Nonetheless, Kerri led her team through countless meetings, constant adjustments in

audit approaches, ever-changing deadlines, and more testing than anyone would choose to remember. As State Auditor Dianne Ray describes Kerri’s achievements, “Kerri demonstrated true leadership qualities: resilience, flexibility, determination, focus on the goal, setting the tone, and leading by example.”

We surmise that at least on some days, Kerri virtually walked on water, too, with alligators snapping at her heels. Reticent deputy?

Certainly not. Emerging Leader and Woman to Watch? Certainly. s To attend the celebration reception, contact Terry Cervi, tcervi@cocpa.org, 303-7418610, or 800-523-9082, ext. 110.

Resources for the Public

Is That CPA (or CPA Firm) For Real?

W

hether you’re an NFL quarterback seeking independent investment advice, the owner of a small business in need of accounting services, or a Millennial who’s just sold her big idea and needs tax planning advice, it’s important to check the chosen Colorado CPA’s or CPA firm’s credentials.

Here’s how. Share these tips with your clients, colleagues, friends, and family. Most state boards of accountancy websites provide similar search capabilities.

Search, using your browser, for the Colorado State Board of Accountancy, or copy and paste the address: www.colorado.gov/ pacific/dora/Accountancy, or go to www.cocpa.org, and click on the State Board of Accountancy link on the COCPA homepage.

On the State Board of Accountancy homepage, you’ll find several features: you can use to determine the status of an individual license or firm registration: Search for a License, File a Complaint, Lookup License

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• NewsAccount • July/August 2016

Discipline, and Board Action Information.

To the right of the photograph, you’ll see three blue boxes. Click on the third one, “SEARCH FOR A LICENSE,” to bring up the search feature, or copy and paste the address into your browser: www.colorado.gov/dora/licensing/ Lookup/LicenseLookup.aspx.

Choose from the “License Type” list either ACCOUNTANCY: Certified Public Accountant (CPA) or ACCOUNTANCY: Public Accounting Firm (FRM).

Complete as much of the information requested as you have – even if it’s only the name. Click on SEARCH to bring up the list of individuals or firms meeting the criteria you entered.

The matching record(s) will appear. Click on “Detail” in the first column for more information, including whether the State Board has taken any disciplinary actions against

the individual or firm. Note that at the bottom of the screen, you can click on “File Complaint,” “Printable View,” or “Close.”

If your search results in “no record found” and you believe the individual or firm is licensed, check that you entered the information correctly. Note that Colorado State Board of Accountancy Rule 12.6 requires any registered firm offering services via the internet (i.e. any firm with a website) to include on its website the name of the firm, mailing and physical address of the firm’s principal location, business telephone number, and Colorado certificate number of the Responsible Party and the Colorado firm registration number.

Return to the homepage to explore the “Discipline and Enforcement” section where you can search for actions taken against a licensee or firm. Remember, it’s always a good idea to check first – the accounting profession’s version of “measure twice; cut once.”s

Member Spotlight

COCPA Member Takes on Tax Reform

BY NATALIE ROONEY

J

ames C. Tanner, CPA, MT, has always had a great interest in tax reform. From the time he was in graduate school in the 1970s, he knew the tax law was more complicated than it needed to be. But it wasn’t until five years ago that he started to take action. “I decided it was time to put my thoughts into a book,” Tanner says.

and result in more government revenue than our current, antiquated tax system generates.

The result is Tax Reform with the 20/20 Tax: The Quest for a Fair and Rational Tax System, published last December and now available on Amazon as well as at Barnes & Noble.

Tanner says while the book is not an easy read – it’s primarily targeted at accountants, attorneys, professors of tax law, and policymakers – anyone with an analytical mind can read and find the material useful.

• Reform tax expenditures, including health insurance and medical costs, home mortgage and other interest deductions, retirement plan deductions, charitable donations, and capital gains on assets sold and transferred;

The “20/20” concept is based on a new structure where most taxpayers would have a tax rate of no more than 20 percent, while the highest income earners would see a top rate of 30 percent, and almost all deductions and credits would be applied at a consistent 20 percent rate. For lowincome earners, the marginal tax bracket would be just 10 percent.

Tanner takes a non-political approach throughout the book. “Well, as much as you can while writing about income taxes,” he says.

A fundamental position of the book is that the U.S. progressive income tax system can be fixed, but it needs to be more fair and understandable to most taxpayers. Also, “If major tax reform is to happen, there must be a political consensus to achieve revenue neutrality for at least three years,” Tanner says.

After a few years of the new system, it is his opinion that the broader-based income tax with lower rates would improve the economy

U.S. tax code (and regulations). Included explanations of proposed changes are remarkably lucid.”

The book explains how the U.S. can: • Create a fair and logical tax framework by rethinking income exclusions, exemptions, deductions, credits, tax brackets, capital gains, and other tax alternatives;

• Lower the tax rates for most individual taxpayers and make U.S. companies more competitive with their foreign counterparts by lowering the corporate tax rate from 35 percent to 25 percent.

Tanner also outlines how historical decisions and legislative proposals led to our current tax laws under the premise that we can't fix them without understanding why they were created in the first place. He takes the stance that the tax system should not reduce the incentive to work, to save, to invest, or to be married. In fact, he spends almost 20 pages explaining how heavy the marriage penalties are in our current tax law. “I’m not trying to make a statement for marriage, but I believe no tax system should be anti-marriage. In many ways our current system is,” Tanner emphasizes. “My proposal changes the tax calculation process and replaces it with a much more intuitive approach,” he says.

So far, reviews have been very favorable. If you’re hesitant to tackle such a heavy topic, one reviewer pointed out, “This 444-page book seems modestly sized when compared to the 73,000 pages of the current

Another reviewer writes, “As the tax code continues to come under fire from political candidates, tax experts, and taxpayers, Tanner’s book is a noble and useful endeavor. It offers a valuable comparison of current tax regulations, proposed reforms, and the author’s own “20/20” proposal… highly recommended for anyone seeking a solid understanding of the tax code.”

Tanner, who is vice president at Heider, Tanner & Dirks, Inc., CPAs, in Denver, spent four years writing the well-researched book, mostly during evenings and weekends. He read thousands of pages of material, and the book contains many references and notes. Tanner estimates 2,000 - 3,000 hours of research and writing went into the book’s development. Two editors assisted: a tax attorney and a former English teacher with a banking background, followed by two more editors of the book's publisher, iUniverse. Two research assistants from the University of Denver’s graduate tax program also helped as well as two Heider, Tanner & Dirks tax accountants. Notably, the firm's office administrator word-processed the entire manuscript and reprocessed many parts of it ten to twenty times.

“I have a new respect for people who write and edit,” Tanner laughs. “It takes a lot of attention to detail.” Despite the years of work, however, he says he’d consider writing a second edition of the book or co-authoring a new book on a similar topic with an economist. “I think CPAs have been left out of the tax reform equation,” he says. “It’s no wonder tax reform hasn’t gotten very far.” s July/August 2016 • www.cocpa.org •

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Tools & Resources

FIRM

inMOTION

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A PCPS e-Toolkit: Transition Continuum and Checklist

Transitioning to a high-performing firm of the future doesn’t have to be an overwhelming ordeal. In fact, chances are good that your practice alread

hatmoving can you do when you’re faced Also, discover and to PCPS members can areaccess the Firms forward without realizing the progress you arenon-traditional making. That’s career why it paths is important understand where you in the process.

One of the be ways to get started is to look closely at three primary areas of your firm and where each falls on the Transition Continuum and Checklist below. with change, but you aren’t sure newer roles within today’s firms. inMotion e-Toolkit on the AICPA’s website at: how to integrate it at your own firm? A http://www.aicpa.org/INTERESTAREAS/ team of members from the AICPA’s Private FIRM STRUCTURE & STRATEGY PRIVATECOMPANIESPRACTICE Culture Talent Clients Companies Practice Section (PCPS) ­– which This component includes customizable strat- SECTION/STRATEGYPLANNING/ • Firm governance • Developed engaged staff • Specialized service offerings included the COCPA’s own Victor Amaya, egy refinement tools and and generational com- FIRMINMOTION/Pages/default.aspx. reward success.

CPA, of ClearPath petence tools •toIndividualized assist firms career in transitioning • PrideAccountants in the firm in Denver, paths •track Commitment to relationships metrics and into the future. convenient. WeCONTINUUM and Chuck Fredrick, CPA, FredrickZink & to a future firm model.

Discover why your FREE TRANSITION • Rewards delivery of high-quality results • Alternative routes •not Emphasis onit’s differentiation to move ourleadership firm just when Associates, CPAs in Durango – has created firm may need strategy to reframe its structureplan andinto action.

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From interThe AICPA and the COCPA to progress. flexibility, family • Diverse workforce • Focus onday, value gauge your or plan plan into action. each from point A to point B and beyond with nally with peersstrategy and mentors to externally transition and plan continuum checklist available to to move ourleadership firm just when • Rewards delivery of high-quality results • Alternative routes •not Emphasis onit’s differentiation transition tips and customizable tools for with clients and You can intoprospects, the future.learn why this you free of charge. convenient.

Wedownload it from metrics and • Pride thecan firmdownload and age-old skill will • Individualized career paths •track Commitment to relationships firms of all sizes that inyou continue to be important the COCPA website at www.cocpa.org. reward success. put to work right away. as you groom• Developed future leaders and manage • Firm governance and engaged staff • Specialized service offerings client expectations.

This Firm inMotion Transition Continuum Culture Talent Clients The toolkit focuses on five trend areas. Each and Checklist tool is an example of the is designed to help you explore what's on the USE OF TECHNOLOGY turnkey tools and solutions PCPS delivers. horizon andways howtotoget prepare your customizable IT falls Anon add-on firm membership section within started is tofirm. look closely atThis threecomponent primary areasincludes of your firm and where each the Transition Continuum and Checklist below. moving forward without realizing the progress are making.

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One of the be strategyyou tools and practical practices and to theunderstand AICPA, PCPS membership at only Transitioning to a high-performing of the trend future tools doesn’t be an ordeal. fact, chances that your STAFF DEVELOPMENT & CULTURE firmfuture to have assisttofirms inoverwhelming effectively $35 perIn CPA – up toarea good maximum costpractice of alread This component includes customizable men- updating and implementing new forms of $700 annually – is a great investment for the and Checklist toring, coaching, and career development tools technology. See how technology can be a wealth of resources you'll receive. Join today PCPSadvantage. e-Toolkit: Transition Continuum to assist firms in engaging and grooming future strategic enabler andA competitive at http://www.aicpa.org/InterestAreas/ leaders. It also provides generational educaPrivateCompaniesPracticeSection/ tion and tools. Explore what’s new in creating GLOBALIZATION Membership/Pages/default.aspx. s career development plans and coaching and This component will be added in 2017. mentoring programs for a changing workforce.

inMOTION

FIRM

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• NewsAccount • July/August 2016

Investment Strategies

Saving for College: 3 Ways to Pass the Test

BY SCOTT RANBY, CPA, CFP

A

s another school year begins, parents and grandparents may be thinking ahead to the day they’ll pay for a child’s or grandchild’s college education. The graph below shows how much such an education costs, both today and in 18 years, at a public university.

CU-Boulder 4 Year Total Cost* $300,000

% of Cost Funded

Contribution Amount

Total contributions over 18 years

Gold

100%

$45,000 onetime

$45,000

Silver

100%

$5,500 annually for 18 years

$99,000

Bronze

33%

$2,100 annually for 18 years

$38,000

Strategies are hypothetical and for illustration purposes only. Assumed investment return is 10% annually over 18 year savings horizon. Cost based on CU-Boulder in-state resident total cost for four years. Actual results may differ.

$112,000

Today

Strategy

In 18 Years

*Current cost obtained from www.colorado.edu. Future cost is an estimate and assumes current cost for an in-state student rises 5% annually. Actual costs may differ.

After getting over the sticker shock from the projected cost of a fouryear undergraduate degree 18 years from now, you should implement a savings plan to prepare for this significant investment. In honor of the 2016 Summer Olympics, here are three strategies for conquering the task, listed in order of their results. Each plan assumes that you begin saving at the child’s birth.

COLLEGE SAVINGS STRATEGIES

The gold plan calls for making a one-time, $45,000 contribution

toward college savings. This strategy can potentially result in the lowest overall cost because the investment has the longest opportunity to grow. The silver plan also fully funds college in theory but results in total contributions of $99,000 since savings are added in $5,500 increments over 18 years and thus not fully exposed to the growth potential of the financial markets. Finally, the bronze plan envisions accumulating enough savings to fund about one-third of the total cost of college. The balance could be made up from various combinations of loans, scholarships, part-time work, and parental current income.

Even modest contributions get you a significant way; the key is to start early. What if your child doesn’t go to college? He or she may have other aspirations that will require funds – starting a business or going for different training or education such as culinary school. Any of these plans will give your child or grandchild a head start on adult life. s

Scott Ranby, CPA, is a Certified Financial Planner® with Kuhn Advisors, Denver, Colo. Contact him at scott@kuhnadvisors.com. The opinions expressed are those of Kuhn Advisors and are as of the date of publication and are subject to change. Past performance is not indicative of future results. This material is for informational purposes only and is not financial advice or an offer to sell any product. Nothing herein should be construed as a solicitation, recommendation or an offer to buy, sell, or hold any securities, other investments, or to adopt any investment strategy or strategies. The investment or strategy discussed may not be suitable for all investors. Investors must make their own decisions based on their specific investment objectives and financial circumstances. Information was obtained from third party sources which we believe to be reliable but are not guaranteed as to their accuracy or completeness.

July/August 2016 • www.cocpa.org •

25

Specialization

6 Tips for Starting an Advisory Practice

I

n order to stand out in a crowded profession, many financial professionals are leveraging the escalating trend toward advisory services. The ability to offer specialized knowledge allows you to differentiate yourself from competitors and position yourself more favorably within the marketplace.

One of the best ways for you to demonstrate your knowledge and expertise in particular areas is through the addition of credentials.

The AICPA offers the only credentials built on the foundation of competency, objectivity, and integrity. They are: Certified in Financial Forensics (CFF®), Personal Financial Specialist (PFS™), Accredited in Business Valuation

26

• NewsAccount • July/August 2016

(ABV®), and Certified Information Technology Professional (CITP®).

THINK THROUGH YOUR GAME PLAN Let’s face it. Many qualified financial professionals are entrepreneurs at heart, so branching out into an advisory service often feels like the natural evolution of their business. Of course, adding an advisory service to an established practice takes dedication and diligence. But it can be an immensely rewarding pursuit, both professionally and financially.

Before deciding to offer an advisory service, you must be willing to: 1. Commit to spending the time it

takes to develop an advisory service practice. As Susan Pierce, CPA/CITP, CGMA, and senior technical manager of the Information Management and Technology Assurance Division at the AICPA said, “You can’t just hang a sign up and be successful; you need to have a plan.” For many established firms, that means writing an entirely new business plan. Consider such things as the market for the services you are considering providing and what competition you might face.

2. Identify your target audience. Adding an advisory service offers the potential to tap into a new client base, which requires careful thought and planning.

In some instances, the end-user may not be the person who makes the hiring

decision. A lawyer or other accounting firm may be the one to select the valuation, forensics, or technology specialists. Keep this in mind when marketing your advisory service.

Sometimes, however, adding an advisory service does not necessarily mean speaking to a new audience. Instead, you could focus on strengthening and deepening your relationships with existing clients.

Such is often the case when engaging in personal financial planning services.

3. Reassess your fee structure. With the addition of an advisory service comes the responsibility for knowing how and what to charge clients for your new offering.

You want to remain both competitive and profitable. If you don’t adequately understand all the costs associated with the new service and factor them into every proposal, you may lose money.

4. Consider the technological investment that advisory services require. Research and talking with practitioners will help you assess what you’ll need in your new practice area.

The upfront costs of purchasing software or systems and ongoing expenses, such as training and updates, should be factored into your business plan. This investment will more than pay for itself as your practice grows.

5. Follow any applicable standards and regulatory and compliance requirements of your advisory service area. In addition to issuing standards for the audit and attest functions, the AICPA issues standards for business valuation, personal financial planning, and consulting services to provide consistency in these areas of practice and to protect the public and the reputation of CPAs. Information technology advisors need to understand the requirements associated with the software products they implement or assess.

And most importantly …

6. Obtain a credential in your advisory area. Here are two ways to look at it: First, you can use an AICPA credential as the pathway to gaining in-depth knowledge as you move toward offering new services. Or, if you already have in-depth knowledge, experience, and

education in an advisory area, you can use a credential to help market your services and differentiate yourself, your firm, or your role within an organization.

It’s worth noting that, even if you have the financial and personnel resources to start an advisory practice, the AICPA Code of Professional Conduct states that you cannot take on a professional engagement without the requisite set of knowledge, skills, and competencies. A credential is an official way of demonstrating that you have met these requirements.

WHAT CAN EACH CREDENTIAL DO FOR YOU? Most financial professionals are drawn to the credential that naturally complements their professional interests, knowledge, and skills.

Here is how each credential serves its holder: The CFF credential encompasses fundamental and specialized forensic accounting skills that you can apply in a variety of service areas, including bankruptcy and insolvency; computer forensic analysis; family law; valuations; economic damages calculations; and fraud prevention, detection, and response. This credential also sets you apart as an expert witness in the courtroom.

The PFS credential showcases expertise in personal financial planning. Many financial professionals use this credential to expand or diversify a tax-focused practice by demonstrating a comprehensive knowledge in financial planning and tax, thereby offering a holistic approach to their clients’ financial needs across retirement, estate, tax, risk management, and investment planning.

The ABV credential is ideal for financial professionals who want to enter an in-demand area by positioning themselves as an expert business valuation service provider who not only reaches a conclusion of value but also creates value for clients through the strategic application of their analysis.

The CITP credential recognizes financial professionals who have the unique ability to provide technology-related assurance and business insight by demonstrating their knowledge of information, data relation-

ships, and supporting technologies. Focus areas include IT risk and IT assurance, security and privacy, business solutions, data analytics, and emerging IT trends. CITP credential holders are helping their clients or organization improve operations, ensure financial data integrity, determine risks associated with financial reporting, and prevent and detect fraud.

Remember, these credentials are available only to qualified financial professionals who meet the criteria for professional experience and minimum education requirements as outlined by the AICPA, and who pass the required exam. s

ADDITIONAL RESOURCES FOR ADVISORY SERVICES Before obtaining a credential, consider joining an AICPA section.

Section membership provides you with access to technical content, advisory practice resources, and discounts on credential education materials and exams. Once you hold a credential, the credential fee includes all of the section benefits, including webcasts, practice guides, guidance on hot topics, tools to practice competently and profitably, discounts on conferences, and more, plus additional resources developed for you as a credential holder. And you’ll connect with other financial professionals who can offer advice, which can kick-start your advisory practice.

If you decide to pursue a credential as one of the first steps to starting an advisory practice, the AICPA will support you every step of the way by providing the resources and tools you need to maintain the highest level of competency in your specialty. When you’re ready to set yourself apart with an AICPA credential and explore starting an advisory service practice, visit aicpa.org/aicpacredentials.

July/August 2016 • www.cocpa.org •

27

Movers & Shakers Barron’s named Mark J. Smith, CPA/PFS, CFP®, CIMA®, president of M.J. Smith and Associates, Greenwood Village, to its list of top financial advisors for the eighth consecutive year.

Peggy Jennings, CPA, Eide Bailly, LLP, Denver, was named chair of the Community First Foundation, primary sponsor of Colorado Gives Day. Ronnie “Duane” Hudson, CPA, was named finance director for Estes Park, Colo.

BiggsKofford PC, Colorado Springs, promoted Angela Lindblad, CPA, to manager in the tax department.

To submit an announcement for publication, email the information to Mary Medley at mary@cocpa.org and note in the subject line, “For COCPA Movers & Shakers.” Note that announcements for individuals are published for COCPA members only. The COCPA may edit content for space and reserves the right to decline publication of an announcement.

Accountants and Consultants www.acmllp.com

In Memoriam

Dr. Patricia Duckworth, CPA January 23, 1924–May 14, 2016 The fifth woman to become a Colorado CPA, Pat Duckworth was born, bred, educated, and dedicated to teaching and mentoring countless accounting students – especially women – in Colorado. She earned her undergraduate degree and Ph.D. at CU and her master’s degree at CSU. Over her career, Pat worked for a Big Eight CPA firm, taught at CSU’s fledgling business school in Fort Collins, and at CU Denver. In 1966, she joined the business school at the brand new Metropolitan State College of Denver, becoming one of its original professors. Subsequently promoted to chair of the accounting department, Pat served in that role for fifteen years, until she retired in 1987.

Under her leadership, the Metro State accounting major was approved by the Colorado Board of Accountancy, allowing Metro graduates to sit for the Uniform CPA Examination. She also was a driving force in developing the finance major at MSU. Pat was a strong leader in the advancement of women in the accounting profession. She served as a national director of the American Women’s Society of CPAs and was active in the COCPA, the American Society of Women Accountants, and the American Accounting Association, among other notable professional organizations.

As former student Courtney Cowgill, CPA, recalls, “Pat mentored countless women accounting students, including me, encouraging us to earn the CPA certificate and pursue a career in one of the national or international accounting firms. She took pride in every license earned by a woman who had completed her classes. And, her mentoring continued long after we graduated and well into our professional careers.”

Live Here. Work Here. Play Here.

imagine the possibilities tm

Dr. Duckworth, Professor Duckworth, Pat. She was quiet, kind, and unassuming as well as articulate, committed, and determined.

She was a Colorado CPA who made a difference. Everyone she touched will miss her.

ACM is a locally owned, locally committed accounting firm. We understand why you live here, why you do business here and what you expect from your advisors. ACM is committed to providing integrated, value-added, assurance, tax and consulting services. How can ACM help you?

Contact us to find out: info@acmllp.com

303.830.1120 Boulder ∙ Denver ∙ Northern Colorado ∙ Laramie

28

• NewsAccount • July/August 2016

We also regret the loss of the following COCPA member and extend our sympathy to her family and friends.

Florence M. Ozaki Member since 1965 Kailua-Kona, Hawaii

Classifieds SAGE HOSPITALITY is set to hire an accomplished Vice President of Real Estate Accounting who has the expertise to direct all aspects of partnership accounting, investment reporting, and tax activities for our hotel investment and upper tier partnership entities. This exciting opportunity is perfect for an ‘optimizer’ and will bring efficiencies to key initiatives across the real estate investment accounting function.

Founded in 1984, Sage Hospitality set out to be the best hotel owner and operator in the business. We’re talking figuratively, progressively, and aggressively breaking the mold of the hospitality industry. As one of the U.S.’s top hospitality management, investment, and development companies, Sage is on a fast trajectory of growth and performance, building upon what we do best – establishing some of the best hotels and restaurants in the world. We are headquartered in Denver, Colorado, surrounded by high-performing investments from coast to coast. The Company’s portfolio currently consists of 75 hotels and 11 restaurants located in 20 states with approximately 6,000 associates. With over $950M under management, the company’s portfolio of high quality hotels encompasses luxury and independent boutique hotels, as well as premium-branded select and full service properties operating under the Marriott, Hilton, Starwood, and Hyatt brand family flags. In addition to its two hotel divisions, Premier & Lifestyle and Premium Branded, the company operates a restaurant division, Sage Restaurant Group, a portfolio of independent restaurant concepts. Included within this portfolio, Sage currently has investments in 33 hotels through 3 investment funds in partnership with institutional and private equity partners.

This role will report to the Chief Financial Officer and will build collaborative partnerships with key stakeholders within the organization including the Executive Committee and Board of Directors.

The ideal candidate has a successful track record in real estate accounting, has strong financial acumen, has worked tactically

closing month-end general ledger, and has effectively provided financial guidance at all levels within a business unit. You will be able to shift between strategy and tactics; willing and able to roll up your sleeves as an individual contributor while providing strong leadership to a staff of two. You should have a strong understanding of real estate fundamentals and be comfortable with complex financial structures and high profile capital partners. CPA is strongly preferred.

To apply directly to the position, please the URL listed below: http://sagehospitality.jobs/denver-co/vice-president-real-estateaccounting-and-reporting/4FC0730108964D7C9CBFC752EB 3DDF4D/job/.

D&R ASSOCIATES PRACTICE FOR SALE CPA Firms or Partners. We represent a number of quality CPA firms who are looking to merge, acquire, 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.

Selling your firm in 2016? ACCOUNTING BIZ BROKERS has been selling CPA firms for over 12 years, and we know your market.

We have a large database of active buyers ready to purchase, and we work with industry specific lenders ready to assist buyers with financing. We are experienced, professional, and confidential, and our focus is on bringing you the "win-win" deal you are looking for. Contact us today to receive a free market analysis or to start the sales process. Kathy Brents, CPA CBI at 866-260-2793 or Kathy@AccountingBizBrokers.com, or visit our website at www.AccountingBizBrokers.com.

Marijuana business s

y

m

p

o

s

i

u

Guiding the Businesses That Will Pilot an Industry MONDAY, AUGUST 15, 2016

m

This is a mustattend program for CPAs offering services to the marijuana industry.

8:30 a.m. – 4:30 p.m.

Attend in-person at COCPA or online via webcast.

Register at mbs.cocpa.org

July/August 2016 • www.cocpa.org •

29

Colorado Society of Certified Public Accountants 7887 E. Belleview Ave., Suite 200 Englewood, CO 80111-6076

Periodicals Postage

Are your clients ready for rising rates?

+ Mark Kuhn

Stocks and bonds can perform differently in changing interest rate environments. Are your clients' portfolios prepared? Let's talk.

President & Founder

Scott Ranby, CFP® Financial Advisor

STRATEGIES AND SERVICES OFFERED:

Investment Management

Schedule a complimentary consultation today.

Social Security Claiming Pre-retirement Planning Charitable Giving Retirement Income

KuhnAdvisors.com Minimum Relationship: $1 million Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, Certified Financial Planner™ and CFP® in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. Kuhn Advisors, Inc. is a registered investment adviser. More information about Kuhn Advisors, Inc., including its advisory services and fee schedule, can be found in its Form ADV Part 2, which is available upon request.

2373 Central Park Blvd. Suite 100 Denver, CO 80238 (303) 803-1016