COCPA NewsAccount – January/February 2017 by Colorado Society of Certified Public Accountants

NewsAccount January/February 2017 Colorado Society of CPAs

The Promise of Blockchain Technology PAGE 4

The Best Day of the Year Supporting Colorado Accounting Students PAGE 9

Cybersecurity: It's Not Just An IT Problem PAGE 16

Contents Features

2 4 9 10 16 20

2017-2018 Leadership Nominations Announced Tawnya Ramirez will become COCPA Chair and Victor Amaya is nominated for Vice Chair/Chair-elect, beginning, May 1, 2017.

The Promise of Blockchain Technology This rapidly evolving technology holds enormous promise for game-changing disruption across countless industries and fields, according to futurist Daniel Burrus.

The Best Day of the Year For the Educational Foundation Thanks to generous contributors on Colorado Gives Day 2016, Colorado accounting students will reap the rewards.

Four Honored for the Difference They Make Meet the newest recipients of the Everyday Hero and Heroine Awards who were recognized at the CPAs Make A Difference celebration.

Cybersecurity: It’s Not Just An IT Problem No one is immune from cyber threats, yet few organizations, large or small, are prepared for them, according to KPMG’s Consumer Loss Barometer report.

The New Revenue Recognition Standard Even if you’re not directly involved, expect to find yourself in conversation about the new standard. Here’s your quick reference guide.

Departments

3 28

Chair Column Movers & Shakers CPAs Make a Difference photography by Bill Cronin, Cronin Photography, bill@croninphoto.com.

COCPA Leadership News

NewsAccount A bi-monthly publication of the Colorado Society of Certified Public Accountants Vol. 62, No. 5 January | February 2017 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, Steve Van Meter, Michael D. West, Charlie Wright

Ramirez To Become Chair Amaya Tapped for Vice Chair/Chair-elect

Springs; and Karen F. Turner, University of Northern Colorado, Greeley.

Watch for the March/April 2017 NewsAccount in which you’ll find biographical information on these nominees.

The Board of Directors thanks for their service the following directors who will complete their terms on April 30, 2017: Ann E. Hinkins, EKS&H LLLP, Denver; Dan W. Soukup, Soukup Bush & Associates CPAs PC, Fort Collins; and community member Christine Benero, Mile High United Way, Denver.

he Nominating Committee, chaired by COCPA immediate past chair Steve Corder, CPA, CGMA, presents the following slate for COCPA leadership positions beginning May 1, 2017. The chair and vice chair serve for one year, and the treasurer and directors serve for two years.

The Nominating Committee presents the following nominees for the Educational Foundation Board of Trustees for a three-year term: Audrey A. Gramling, Colorado State University, Fort Collins; Ann E. Hinkins, EKS&H LLLP, Denver; and Scott W. Ranby, Kuhn Advisors, Inc., Denver.

Mary E. Medley, President/CEO Natalie G. Rooney, Contributing Writer Emily Russell, 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 = 7,267 copies; sales through dealers and carriers, street vendors, and counter sales = 0; paid or requested mail subscription = 7,193; free distribution by mail = 0; free distribution outside the mail = 24; total free distribution = 50; total distribution = 7,217; office use, leftovers, spoiled = 50; returns from news agents = 0; total sum = 7,267; 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.

Tawnya Ramirez

Victor Amaya

Congratulations to officer nominees Chair Tawnya Y. Ramirez, Charter School Growth Fund, Broomfield, and Vice Chair/Chair-elect Victor A. Amaya, ClearPath Accountants LLC, Littleton. Treasurer Benjamin T. Hrouda, Mercury Real Estate Partners, Denver, continues on the Board as does Mark T. Solomon, SM Energy Company, Denver, as immediate past chair. COCPA CEO Mary E. Medley is the Board secretary. Directors to begin a two-year term are: Dana J. Miller, Adams 12 Five Star Schools, Thornton; and Randy Watkins, Anton Collins Mitchell LLP, Greeley. Continuing on the Board are Gregory P. Osborn, RubinBrown LLP, Denver; Christopher J. Telli, BKD LLP, Colorado

• NewsAccount • January/February 2017

Currently serving on the Foundation Board are officers Kristine Brands, Regis University, Denver, President; Matthew O. Rolland, Hein & Associates LLP, Denver, Vice President; Diego J. Baca, EY LLP, Denver, Treasurer; William C. Sanden, SSA PC, Colorado Springs, Immediate Past President; Toby D. Clary, Soukup Bush & Associates CPAs, P.C., Fort Collins; Audra Dixon, Anton Collins Mitchell LLP, Denver; Stephanie E. Hernandez, KPMG LLP, Baltimore, MD; Amy E. King, RubinBrown LLP, Denver; Sharon S. Lassar, University of Denver, Denver; G. Suzanne Lay, Colorado Mesa University, Grand Junction; Allen W. McConnell, University of Northern Colorado, Greeley; and Mary E. Medley. Carol J. Cameron serves as executive director of the Foundation. s

Chair Column

Good Things Happen in Threes BY MARK SOLOMON, CPA, CGMA

As your COCPA Chair, I have the opportunity to take part in a lot of great events that promote, celebrate, and further our profession. This past fall, I had the privilege of taking part in three special events which reinforced for me what a great profession we’ve chosen, how important it is for all of us to take an active role in its future success, and how important it is to honor those who are making a difference every day. AICPA FALL COUNCIL The Fall Council meeting is always exciting – for one, because it’s when we welcome the new AICPA Chair. In October, 2016, Kimberly Ellison-Taylor, CPA, CGMA, from Maryland, stepped into the role amidst wild enthusiasm. As Oracle America’s Global Accounting

Ellison-Taylor is flanked by immediate past AICPA chair Tim Christen, left, and past AICPA chair Ernie Almonte, right, at her welcome breakfast.

Strategy Director for the Financial and Professional Services Industries, Kimberly comes from a non-traditional background and route to the accounting profession. At her inauguration breakfast hosted by the Maryland Association of CPAs, she spoke about how someone came to her third grade class and talked about accounting as a career. That’s when she knew it was what she wanted to do. In her speech, Kimberly emphasized how each one of us as a CPA can make an impact just as so many CPAs have influenced her. She is energetic and electric, and it was fun to welcome her to

the Chair post. You can read Ellison-Taylor’s full bio on the AICPA website at: https:// www.aicpa.org/About/Leadership/Pages/ KimberlyEllisonTaylor_bio.aspx. One of the hottest topics at Fall Council was cybersecurity and the new cybersecurity risk management program the AICPA is developing. The Institute is looking closely at the CPA’s role in the cybersecurity risk management arena, providing tools for CPAs to be a resource to their clients. It is an exciting new frontier. Read more about the topic on page 16, and stay tuned for more details. CPAS MAKING A DIFFERENCE Were you able to join us at the annual celebration honoring CPAs who make a difference? If not, mark your calendar now for Nov. 10, 2017, and this fantastic event where we recognize our COCPA members who step outside the norm to make a difference in our communities and the world. This year, we honored four individuals for the work they’re doing: Brett Hanselman, Marc Hendrikson, Chad Mulliniks, and Greg Pfahl. Visit www.cocpa.org to view these honorees’ inspiring video stories, and read about their contributions on page 10. During the evening, we also celebrated the future by welcoming our newest CPAs into the profession and raising money for the Educational Foundation of the COCPA. We can look forward to these new professionals’ participation and all they have to offer to their employers, their communities, and the profession. At the end of the evening, the Educational Foundation was the happy recipient of more than $5,000 raised through the “Wine Wall” and the silent auction. The money will fund scholarships for aspiring accounting students in Colorado. There is no better way to ensure our profession’s future than to invest in the education of future CPAs.

CLASS OF 2016 LEADFIT GRADUATION In mid-November, we celebrated the graduates of the LeadFit Class of 2016. SM Energy sends two or three people each year through this incredibly engaging program that provides our developing leaders with the training they need to be successful leaders. As I listened to the graduates talk about their experiences and explain how rewarding the program has been for them, it reinforced why leadership development is so important. What the LeadFit attendees gain through this interactive program can’t be learned by merely reading a book or listening to a lecture. And it’s apparent not only when you hear them speak about the program but also when you watch them begin to utilize their new skills in their leadership roles. See page 28 for the 2017 LeadFit dates. I encourage you to consider sponsoring candidates from your organization. A Couple of Additional Thoughts Election 2016: For one of the only times in its history, the COCPA spoke out against a state ballot initiative – ColoradoCare (Amendment 69). Its passage would have significantly impacted every business and individual in the state. Thank you to everyone who supported the effort and helped to defeat this amendment to the Colorado Constitution. Erroneous Tax Notices from CDOR: Over the last few months, numerous erroneous notices were sent to Colorado taxpayers. It’s a big issue impacting taxpayers and practitioners across the state. Mary Medley and the COCPA team have been working diligently with the CDOR to address and resolve such issues. For assistance, email Medley at mary@cocpa.org. Happy New Year! Best wishes to you and yours for continued success in 2017. s Email Mark Solomon at msolomon@sm-energy.com.

January/February 2017 • www.cocpa.org •

Financial Transaction Security

The Promise of Blockchain Technology BY DANIEL BURRUS, CEO, BURRUS RESEARCH

itcoins were introduced in 2009 to great fanfare. But it’s the means with which Bitcoin transactions are handled that has gotten most of the attention lately – and justifiably so. Although there had been predecessors, Bitcoins were framed as the first form of cyber currency, meaning the system involved a peer-to-peer transaction network that operated directly between users without an intermediary. Shortly after Bitcoins were introduced, I labeled them a Soft Trend – one whose future was looking good but not a future certainty. In that same article, I labeled cyber currency a Hard Trend that would continue to grow. I also predicted there would be many more cyber currencies. Since then, I’ve seen no need to change either designation, as the future success of Bitcoins remains promising but uncertain. Additionally, there are now more than 100 different cyber currencies.

At the same time, something of equal or perhaps even greater importance was taking place. As Bitcoins struggled to gain widespread acceptance and use, blockchains – the enabling technology with which Bitcoin transactions are handled – were gaining far more traction. Unlike bitcoins, the development of blockchains has shown no signs of slowing down and represents a Hard Trend that will continue to grow. The rapidly evolving technology of blockchains holds enormous promise for game-changing disruption across any number of industries and fields. As a headline in O’Reilly Media presciently noted in early 2015: “The blockchain is the new database – get ready to rewrite everything.” BLOCKCHAIN EXPLAINED – SECURITY IN NUMBERS Blockchains are a system of decentralized

• NewsAccount • January/February 2017

transaction records. By decentralized, I mean that a blockchain can be used to create a transaction without any input from any sort of controlling entity. Here’s a simple example. Currently, most people use a trusted middleman such as a bank to make a transaction. But a blockchain effectively eliminates the need for a third party, thereby allowing for direct connection between all involved parties. A blockchain employs cryptography to keep exchanges secure. It also incorporates a decentralized database – also known as a “digital ledger” – of transactions that everyone on the network can see. This network is essentially a chain of computers. Every one of those computers must approve an exchange before it can be verified and recorded. In one of its most widely known applications, blockchains can send and

receive digital forms of currency, such as Bitcoins. But, unlike other forms of transactions, the system can’t be accessed by just anyone. Users can send digital payments only to other participants in the same blockchain network. That means only those who use the blockchain can establish and enforce rules and approved procedures – a powerful form of security. By bypassing older forms of transaction networks involving a controlling entity, it’s up to everyone on the blockchain to determine whether a particular transaction is legitimate or not. That means if someone tries to tamper with a ledger entry, the rest of the network will disagree on the integrity of that particular transaction and will not incorporate it into the larger blockchain. In and of itself, that’s a genuinely revolutionary form of security. THE GAME CHANGING OPPORTUNITY IN FINANCIAL TRANSACTIONS What has me and so many others so excited about the future of blockchains is the scope of their potential use. On the surface, it’s obvious that blockchains offer enormous opportunity in purely financial transaction applications. If nothing else, the system is designed to prevent fraud and other crimes through the security that only a global form of approval can afford.

2017 CPAS MAKE A DIFFERENCE

SAVE THE DATE November 10, 2017 Grand Hyatt Downtown Denver

That in and of itself offers enormous game changing opportunities. Currently only a very small proportion of global gross domestic product – roughly $20 billion – is held in blockchain form, according to a study by the World Economic Forum’s Global Agenda Council. But, the Forum’s research suggests that isn’t likely to last long. Projections hold blockchain use will increase significantly in the next decade as banks, insurers, and technology firms recognize and embrace the technology as a way to boost transaction speed, bolster security, and trim expenses. That’s already taking place. For instance, Swiss banking giant UBS in mid-2015 announced plans to open a technology lab in London to explore how blockchain technology can be used in financial services. The British government has also earmarked £10 million to support research in digital currencies technology. Nor is opportunity limited to implementing blockchain technology. Banks such as HSBC, Santander, and BBVA have launched corporate venture funds to make equity investments in financial technology companies. MORE THAN JUST MONEY Even if they were limited to financial transactions, blockchains would represent a genuinely game-changing move away from conventional means of paying for goods and services. But, the truth is blockchains are also a platform that can be used in multiple ways in many industries and other areas with equally significant results. For instance: CONTINUED ON PAGE 6

January/February 2017 • www.cocpa.org •

Financial Transaction Security CONTINUED FROM PAGE 5

Data Storage: Current storage services using cloud technology are centralized, meaning that users have to put their faith in a single cloud provider (akin to sellers and consumers placing their faith in a bank or some other form of intermediary). Blockchains will let users store data and information via a decentralized platform, improving security and lessening reliance on any one provider. Additionally, systems are being developed through which users can rent out unused space – a data storage version of Airbnb! Voting: No one who has ever worked in a polling place recalls the tedium of counting paper ballots with any sort of fondness. Unfortunately, electronic balloting has its own drawbacks, such as verifying accuracy during recounts. On the other hand, a blockchain voting network is inherently more reliable, since changing one vote would require changing countless other votes at the same time. In fact, a blockchain voting network has already been used – Denmark’s Liberal Alliance employed a blockchain for internal voting back in 2014. Military Use: Military organizations such as the U.S. Department of Defense and NATO are actively investigating use of blockchains. Among other applications, they’re interested in messaging platforms capable of transferring information and data by way of a secure decentralized protocol. Further, the blockchain will ensure security across multiple channels. The War on Terrorism: In May 2015, the Isle of Man implemented the first governmentrun blockchain project, leveraging blockchain technology to create a registry of digitalcurrency companies operating on the island. Among other uses, the system will counter money laundering and help prevent terrorist financing, since the flow of money can be traced specifically to the person or group involved in the transaction. “Smart” Contracts: The basic idea behind a smart contract is that it implicitly selfmanages the fulfillment of the agreement

– in this case, verified programmatically via the blockchain, instead of some sort of third party. In effect, two or more parties agree on terms, program those terms into the blockchain, and, from there, allow for payments and other transactions once those terms are fulfilled and validated by the blockchain. Regulation: Because a blockchain cannot be changed or manipulated without a majority of participants agreeing to do so, the technology underlying a blockchain might be used in place of a variety of regulations, such as those mandated by Know Your Customer (KYC). Identity Management: Labeled the first comprehensive blockchain-based identity service, Onename allows users to create tamper-proof digital identities for themselves. These profiles are called Passcards and are designed to replace conventional user names and online passwords. The Music Industry: Blockchains may also turn the digital music industry on its ear. In October 2015, Ujo Music unveiled a prototypical system with a downloadable single by artist Imogen Heap – a working example of how the music industry might operate using a blockchain-based technology. In a nutshell, artists and rights holders register works and relevant ownership information on the blockchain; consumers purchase directly, with payments delivered automatically and instantly using smart contract technology. Again, no intermediary need be involved. Just as important as the transaction itself, artists may also publish policies for how their music may be used. That’s an anticipatory form of thinking that proactively addresses a current prevalent headache in which artists often must pursue legal action to stop unauthorized forms of use. Further, it opens up opportunities for new business models, apps, and other products, so long as the user abides by the artist’s stated guidelines.

• NewsAccount • January/February 2017

MORE REASONS FOR EXCITEMENT Currently, blockchain use is largely restricted to private forms of transactions. But, looked at in an anticipatory way of thinking, blockchains could be used for anything that requires proof of identification, the exchange of goods, or verification of contract terms and other agreements. Talk about the opportunity for disruption! Nor does blockchain use have to be the sole purview of powerful governments or organizations and companies with a worldwide reach. For instance, local governments could employ blockchains for secure and efficient tax collection. What about immigrants, migrants, and others looking to send money back home to families in countries where conventional banking networks are spotty or even non existent? Blockchains could be developed to allow for fast and secure movement of funds. (Consider the implications of that for immigration and workforce policies.) One executive involved in the development of blockchains summarized its potential in a framework we can all appreciate: “’Check it on the blockchain’ will be the phrase of the twenty-first century. It will be as commonplace as people saying “Google that.’” Like the headline I cited at the outset of this article put it—when it comes to blockchains, get ready to rewrite everything. s Daniel Burrus is considered one of the World's Leading Technology Futurists on Global Trends and Innovation and is the founder and CEO of Burrus Research, a research and consulting firm that monitors global advancements in technology-driven trends to help clients understand how technological, social, and business forces are converging to create enormous untapped opportunities. He is the author of six books including New York Times and Wall Street Journal best seller Flash Foresight. Burrus also is the creator of The Anticipatory Organization™ Learning System– named a Top 10 Product of 2016.

CPAs MAKE A DIFFERENCE November 2, 2016, new Colorado CPAs walked the congratulations line; entertainer and speaker Craig Zablocki provided the laughs; and four CPAs were recognized with Everyday Hero and Heroine Awards. It was a night not to be missed! Mark your calendar for next year's celebration, November 10, 2017.

• NewsAccount • January/February 2017

Photography by Bill Cronin, Cronin Photography, bill@croninphoto.com.

Educational Foundation of the COCPA

The Best Day of the Year Supporting Colorado Accounting Students

hanks to 71 generous individual contributors and five matching donors – Anton Collins Mitchell LLP; Hein & Associates LLP; EKS&H LLLP; Kundinger, Corder & Engle, P.C.; and the Mark J. Smith Family Foundation – Colorado Gives Day 2016, Dec. 6, was a rousing financial success for the Educational Foundation of the COCPA and Colorado accounting students. Individual gifts helped unlock $25,000 in matching funds, and contribute $39,706 in total to the Foundation’s coffers for the equivalent of 15 scholarships. If you missed the opportunity to support Colorado accounting students, you don’t have to wait until next year. Donations can be made year-round at www.coloradogives.org/EFColoradoSocietyCPAs/overview. If you or your organization would be interested in joining RubinBrown Charitable Foundation which already has stepped up as a matching donor for Colorado Gives Day 2017, please contact Educational Foundation Executive Director Carol Cameron at carol@cocpa.org. The Foundation and those who receive the scholarships you make possible thank you for your support! s

Educational Foundation of the COCPA 2016-2017 Board of Trustees Kristine Brands, Regis University, President Matthew O. Rolland, Hein & Associates LLP, Vice President Diego J. Baca, EY LLP, Treasurer William C. Sanden, SSA, PC, Immediate Past President Toby D. Clary, Soukup Bush & Associates CPAs PC Audra Dixon, Anton Collins Mitchell LLP Stephanie E. Hernandez, KPMG LLP Amy E. King, RubinBrown LLP Sharon S. Lassar, University of Denver G. Suzanne Lay, Colorado Mesa University Allen W. McConnell, University of Northern Colorado Mary E. Medley, Colorado Society of CPAs

PROMOTEACCOUNTING ACCOUNTINGEDUCATION EDUCATION F OFUONUDNEDDE DI NI NPROMOTE ININCOLORADO COLORADOAND ANDSUPPORT SUPPORTINDIVIDUALS INDIVIDUALS

1958 1958 andinstitutions institutionsengaged engagedininitsitsstudy studyand andteaching. teaching. in inorder ordertoto and

January/February 2017 • www.cocpa.org •

CPAs Make a Difference

Four Honored for the Difference They Make

n Nov. 2, 2016, one woman and three men were recognized at the CPAs Make A Difference celebration for their service beyond what they do for a paycheck. These Everyday Heroes and Heroine join 116 Colorado CPAs who’ve been so honored for their contributions to their communities since the award was created in 2002. Congratulations, Marc, Chad, Brett, and Greg (above). You make us all proud to be part of the Colorado CPA profession!

Brett Hanselman, CPA KPMG LLP, Denver When someone decides to volunteer for a particular organization, it’s often for a personal reason. For Brett, it was her father’s multiple sclerosis diagnosis at an early age. He lived with MS for some thirty years. “Back then,” she recalls, “there were no such services for families battling the disease.” Brett knows firsthand how important an organization such as the Rocky Mountain Multiple Sclerosis Center (RMMSC) is. That’s why she’s given it her time and talents for over 15 years, including her current service as Board Chair. The Center estimates it cares for some 50% of Colorado MS

patients, through its partnership with the University of Colorado, Anschutz Medical Campus. It provides a comprehensive, integrated, wellness approach to MS and related diseases; life-changing support services; and cutting-edge research. Brett led the RMMSC Board of Directors and staff through a significant transition, beginning in 2014, which included onboarding a new CEO; helping to stabilize the Center’s financial position; increasing its fundraising capabilities; and developing a new strategic plan. Over the past five years, RMMSC has funded over $500,000 in MS research on new treatments to prevent the silent yet ongoing brain damage that results in disability. Nurse-Family Partnership (NFP), the national maternal health program based in Denver, also benefits from Brett’s leadership. Its mission is to empower firsttime mothers living in poverty to change their lives and the lives of their children through evidence-based nurse home visiting. Brett chairs the Audit Committee and the Social Impact Bond Board Committee, in addition to serving on the HR and Executive committees, as well as on the NFP Board.

• NewsAccount • January/February 2017

NFP currently is in the final phases of a $250M grant opportunity with a group of private funders, which will allow it to more than double its reach across the U.S. Brett is deeply committed to contributing her time to these organizations because both are personal passions. And, both enable her to use her CPA skills to improve the organizations, those they serve, and all those who are fortunate to work with her. She truly makes a difference.

Marc Hendrikson, CPA, CGMA Centennial Bank, Denver Marc says it all started when his wife, Michelle, put a stack of papers and a pen in front of him and told him to sign by the x’s. So, he did – without reading everything. Of course, that’s not really what happened because Marc is, after all, a CPA and banker for whom due diligence is a way of life. What did happen began as a desire to expand the Hendrikson family which already included two teen-aged sons. Next came an infant daughter who Marc and Michelle brought home from Guatemala. Then, they

realized she should have a sibling closer to her age. That’s when they signed up to be foster parents, six years ago. Along the way, a brother/sister pair entered the scene, along with several more babies of varying ages. By July 20, 2016, twelve children had been blessed to live within the Hendrikson family circle: two boys from the gene pool, two daughters and two sons through adoption, and six more children fostered until homes were found for them. Marc said it best: “Through all of this, we've experienced unbounded joy, the deepest of frustrations and lows, utter disbelief, complete and total heartbreak, near breakdown, along with healing and strength we never knew we would be granted or could muster, not to mention skills that tested and refined us in many ways (for better and for worse ...). So, with love, affection, and a little sense of loss, we send off our dozen children symbolically and someday literally (yes, really, there have been 12 ...) – six of whom we'll have and love forever, six of whom we enjoyed and cared for at different times and will equally never forget.” One could talk for days about the countless volunteer hours Marc has invested in the CPA profession, through his service on the Educational Foundation of the COCPA, as a charter member of the COCPA Member Connections Committee, in mentoring new CPAs, even as a past Chair of the COCPA Board of Directors when his constant focus was on member outreach and building community with his colleagues in service to the public. All those roles required – and benefited immeasurably from – his energy, straight talk, and perennial good humor. Yet, the difference he and his family have made in otherwise neglected children’s lives is what truly makes Marc an Everyday Hero. As he would say, “It’s all good.”

Chad Mulliniks, CPA SM Energy Company, Denver

working in and around Kampala, Uganda, since 2006. Chad and his wife, Shantelle, did. You could go through the training and become registered foster parents in Denver. Chad and Shantelle did. You could become a CASA (Court Appointed Special Advocate for children) volunteer. Chad is. You could return from that life-changing trip to Africa, wondering where people needed your volunteer service next, consider returning to a third world country, and then realize you could make a difference in your own city. The Mulliniks did that, too. Today, they live Denver’s West Colfax community, committed to their neighbors who come from all walks of life. Their children attend public school where most of their classmates qualify for the federal school lunch program. Chad’s parents weren’t so sure about their son uprooting his family from their nice home in the suburbs and choosing to live in a neighborhood most would call sketchy. And, they are proud of the decision Chad and his family made to be in relationship with their community. Chad participates and leads community discussions about development, economic activity, and community support. He’s helping to construct a housing development to be a missional community living experiment. He organizes groups of co-workers to volunteer with Trinity Church’s feed the hungry program. And, he and Shantelle provide foster care for children needing temporary placement in a safe and loving home. One of Chad’s SM Energy Company colleagues says he doesn’t know where Chad finds the time or the energy to do all he does. Chad says, with a slight shoulder shrug, it’s just what he does. He rolls up his sleeves to work on the front lines, and he encourages others to do the same.

Greg Pfahl, CPA Hein & Associates LLP, Denver

You could go to Africa as a volunteer with Come Let’s Dance, a community development organization that’s been

Alzheimer’s disease is an irreversible, progressive brain disorder that slowly

destroys memory and thinking skills – and eventually the ability to carry out the simplest tasks. Greg knows what it’s like, up close. He lost his grandmother and his mother to its ravages. Five of his mother’s six siblings were diagnosed with Alzheimer’s or dementia, and only two still are living. It’s easy to understand why Greg would choose to become involved with the Alzheimer’s Association of Colorado. He and his wife, Mary, first volunteered with the Young Professionals Alzheimer’s Association of Colorado (YPAAC). When Mary became Chair of YPAAC, Greg transitioned to the “regular” board – also, technically, having become too old for YPAAC. Now five years later, Greg chairs the audit committee and the compensation committee, in addition to serving on the finance committee. These leadership positions have put Greg in charge of external audit oversight and engagement, review of GAAP financial statements, review and changes to the association’s accounting policies, internal audit activities, investment decisions, evaluation of the organization’s CEO, and most critical in recent years the reorganization of the national association as a single 501(c)(3) nonprofit. Greg is open about his commitment to finding a cure because of his mother’s battle with the disease. His dedication to the cause models what it means to overcome personal adversity and make a difference for others. He has involved his colleagues at Hein & Associates through sponsorship of various events, fundraising, and participation in the Walk for Alzheimer’s and the Blondes vs. Brunettes football game. He sees his volunteer service as a commitment both professionally and personally. And, that’s not all. Greg also knows his expertise and service, combined with the service and support of all those who are committed to finding a cure, can and will make it happen. His mother is smiling. s To nominate someone for the 2017 awards, contact Terry Cervi, terry@cocpa.org.

January/February 2017 • www.cocpa.org •

Management Accounting

What’s More Important: Technical Ability or Soft Skills? BY KEN TYSIAC

This article first appeared in CGMA Magazine. For more articles, sign up for the weekly email update from CGMA Magazine at http://bit.ly/UZ07NC.

n a business world that’s increasingly turning to technology for strategic insights, the skillsets that accounting and finance leaders need on their teams are changing. To capitalize on new tools, CFOs are finding that they need people who: can use Big Data for predictive and prescriptive analytics; are comfortable with digital, mobile, cloud, and software-as-a-service technologies; and have strong technological skills in the area of cybersecurity. Finance leaders don’t have the luxury of waiting to add these skills to their teams, Tony Klimas, EY LLP global finance performance improvement advisory leader, said in a new EY report on preparing for the future finance function. “The change is so significant and the new capabilities so advantageous, that if you take a wait-and-see approach, you run the risk of being put at a severe competitive disadvantage,” Klimas said. At the same time, finance teams need people who can see the big picture provided by the technical tools and formulate strategy – and communicate those strategic insights so the business can act upon them appropriately.

who are more suited for staff-level jobs. According to the 2015 CIMA Professional Qualification Syllabus, senior roles place less emphasis on accounting and finance skills and more emphasis on business acumen, people skills, and leadership skills. Meanwhile, entry-level roles require more focus on core accounting and finance skills and less focus on soft skills. SKILLS FOR STAFF-LEVEL ROLES A new survey shows that technical skills carry slightly more weight with CFOs than soft skills for staff-level positions. More than half (54%) of 2,200 U.S. CFOs surveyed by staffing services provider Robert Half said technical skills and soft skills are equally important for staff-level accounting and finance positions. But amongst the remaining CFOs who stated a preference, most placed more value on technical skills. More than one-third (36%) of CFOs said they place greater weight on technical skills for staff-level positions, and just 10% said they place greater weight on soft skills.

“At the senior level, these team members are expected to be able to build influence across the organization, communicate with diverse internal and external stakeholders, and serve as a business partner,” McDonald said in a news release. “While honing their functional expertise, individuals aspiring to the management ranks cannot neglect also enhancing their soft skills.” But as CFOs build their staffs in a competitive talent environment, finding people who can perform increasingly complex new technical tasks is a crucial objective. Technologyenabled process improvement was evaluated as a critical priority for tomorrow’s finance model by 69% of CFOs of large organizations, 53% of medium-size organizations, and 59% of small organizations, according to the EY report, based upon a global survey. The most commonly listed top priority for the future of the finance function amongst respondents to the EY survey was improving Big Data and analytics capabilities to transform forecasting, risk management, and understanding of value drivers, listed by 23% of respondents.

The second-highest priority, selected by 22% As accounting and finance professionals of respondents, was meeting the need for rise in their organizations, soft skills may new skills by transforming how finance talent Find out what’s happened with the COCPA Strategy Initiatives since June 2015. Learn what’s happening on the be the key to their advancement, said Paul is recruited, retained, and developed. These national and international scenes which affects and challenges you and the CPA profession. Understand what These “soft skills” may differentiate the McDonald, a senior executive director at two CFO priorities complement each other branding is anddepartment how to use it successfully. strategy. Prioritize what’s leaders in a finance from those RobertIdentify Half. the hard trends which can help in theguide important responsibility of attracting,

critical, essential, and significant to be successful as an anticipatory CPA and anticipatory organization.

• NewsAccount • January/February 2017

developing, and retaining talent with the technical skills necessary to perform the tasks that are required of the finance function as technology continues to advance. TRAINING FOR SOFT SKILLS In some cases, employers are hiring employees who possess the requisite technical skills and training them in soft skills such as communication and making presentations. This is true for workers in various professions in Ghana, said Andy Mensah, ACMA, CGMA, a human resource partner with IBM Ghana and Central Africa. “A lot of people come out of university with master’s degrees and need more skills in developing effective presentations and all those kinds of soft skills,” Mensah said in an interview. “What you find at the entry level

is people who do not have all these skills, so they are having to learn them. You’re having to teach them to do these kinds of things.” But it’s often more challenging to build technical skills than soft skills. As CFOs look to the future, they have difficulty acquiring enough technical skills in an organization to build an effective operation. The EY report suggests some ways to do it: • Look beyond traditional financial analysis skills to statisticians, data scientists, and even behavioral scientists to assist the finance function with using data to drive strategy. • Emphasize digital. Executives who are proficient in technologies such as blockchain and artificial intelligence will be key players in finance departments.

• Create alliances with resources outside the organization at universities, start-ups, and other third parties that possess the expertise to address business challenges in innovative ways. These technical skills may be more difficult to acquire than soft skills, but they will be a must for organizations as they attempt to use technology to derive critical insights from data. s Ken Tysiac, ktysiac@aicpa.org, is a CGMA Magazine editorial director. Copyright © 2011-2016 American Institute of CPAs. Copyright © 2011-2016 Chartered Institute of Management Accountants. All rights reserved.

If you have a specialized interest, you can build on the value you offer clients by adding an AICPA advisory service credential: Personal Financial Specialist (PFS ), Accredited in Business Valuation (ABV ), Certified in Financial Forensics (CFF ) or Certified Information Technology Professional (CITP ). These credentials were developed for the profession by the profession. They set you apart, make a statement and get you noticed. And, they can seriously boost your career. ®

™

WHERE CAN AN AICPA C REDENTIAL TAKE YOUR CAREER NEXT?

Explore your opportunities at aicpa.org/aicpacredentials. 18432-326_YCPA Credential Campaign SS Half Page_8.5X5.5.indd 2

9/16/15 5:51 PM

January/February 2017 • www.cocpa.org •

Accounting Careers

Student Interview Day Launches Careers, Changes Lives BY NATALIE ROONEY

For more than 30 years, COCPA’s Accounting Careers Committee has sponsored Student Interview Day, bringing together COCPA student members with firms and companies from across Colorado. On Sept. 24, 2016, 14 firms conducted 130 interviews with 38 students from 12 Colorado colleges and universities. Every year, it’s been a win-win for employers and employees-to-be. KEENAN SCOTT, CPA Manager, BiggsKofford, P.C., Colorado Springs Keenan has sat on both sides of the Student Interview Day table and knows just how beneficial the event can be for employers and job seekers alike. In the fall of 2009, Keenan had just started his Master’s degree at the University of Colorado Colorado Springs. With an undergraduate degree in business and marketing from the University of Northern Colorado in Greeley, he realized his ultimate career path wasn’t in sales and marketing. He returned to school to get his MBA with an emphasis in accounting and was looking for an internship. “As a Master’s student, I was really pursuing jobs, going to networking events, and working to get my foot in the door,” Keenan says. As a COCPA student member, he heard about Student Interview Day, which provided him with the perfect opportunity. Keenan’s career counselors at UCCS helped him prepare for the process with mock interview questions from an accounting perspective. “I had been through the interview process from a sales and marketing perspective, but there was a different spin for accounting,” he says. “Being a student again reset where I was in the interview process.” Keenan met with a representative from Colorado Springs CPA firm BiggsKofford on Student Interview Day. After that, he was

invited to the BiggsKofford offices to meet the CEO and a tax manager, discuss firm culture, tour the office, and take an accounting test. He was offered an internship beginning in spring 2010. Seven years later, he’s still with the firm. Now, as an interviewer himself, Keenan returns to Student Interview Day every fall. “The process works well for us,” he says. “It’s an opportunity to get through a lot of interviews on a single Saturday and follow up with people we’re considering.” He adds that many times, he arranges to meet with students who’ve attended previous networking events. Coincidentally, Keenan says, one of his original interviewers on Student Interview Day 2009 is now a BiggsKofford partner – and also was hired through Student Interview Day several years prior. “Interview Day is a great opportunity for both sides of the hiring process,” he says. “For students, it provides the opportunity to meet with a number of firms and see that not every firm is the same, and neither are the experiences of working for different firms. It’s a chance to investigate what makes each firm unique.” Keenan adds that for employers, it’s a chance to meet a number of different students and hone in on what they as employers are looking for. “We take the opportunity to meet with a number of different students to fill all areas of our practice,” he says.

• NewsAccount • January/February 2017

“When we hire interns, our goal is to hire someone who is fully capable of becoming a full-time associate. It doesn’t always happen, but it’s our goal.” ANN BROOKHART Senior Accountant, Brock and Company, Littleton Ann now is a senior accountant at Brock and Company, but her route to her position could best be described as circuitous. She says without Student Interview Day, she wouldn’t have the career she has now been enjoying since 2011. Her resume includes an undergraduate degree from Colorado State University in 1985, followed by various jobs, an MBA from the University of Denver in 1990, time as a stay-at-home mom, and a stint as a successful business owner. After she sold her business, she wondered what she’d do next. With a lot of business credits on her college transcript, she was able to attend what is now Metropolitan State University of Denver to obtain the accounting credits she needed. Ann signed up for the 2011 Student Interview Day and was scheduled for three interviews. She says the short, concise interviews offer sufficient time for both the student and organization to know if it’s a “go” or “no go” situation to move forward. She sent each interviewer a thank you note and heard back from two of them. The other organization wasn’t actually hiring, which

Ann says isn’t uncommon. “Sometimes companies participate in Interview Day even though they have no open positions because turnover is so great,” she explains. “You want to have people in your pipeline.” Ann eventually accepted an offer from Brock and Company. She joined the team in 2012 as a staff accountant and has been there ever since. Now, she also is on the other side of the table as an interviewer. “Students fill out a questionnaire indicating their areas of interest and the type of firm or organization they’re seeking,” she says. “Employers go online and search the resumes and submit a number of people and alternatives.

It’s a long day. You start at eight in the morning, and every half hour you interview someone new. It’s almost like a speed dating atmosphere,” she laughs. “I think the COCPA provides a great service to both the student and the employer. It allows you quickly and efficiently to see and make a decision on bringing someone back in. It’s a great format.” As a non-traditional graduate, Ann says Student Interview Day was a great opportunity for her. “It can be difficult when you’re competing with younger people,” she says. “As an interviewing firm, we hire both traditional and non-traditional students. The day brings people in front of us we wouldn’t have found through traditional methods.” s

HOW STUDENT INTERVIEW DAY WORKS FOR STUDENTS Student Interview Day is usually held in late September or early October. • Submit your application by the deadline (usually late August). • COCPA will send your application to all participating firms and companies. • You will be notified about organizations that want to interview you. For complete details, contact COCPA Member Services Director Susan Vachereau, susan@cocpa.org. Note: you must be a COCPA student member to participate.

January/February 2017 • www.cocpa.org •

Security & Technology

Cybersecurity: It’s Not Just An IT Problem BY NATALIE ROONEY

KPMG LLP’s comprehensive report, the Consumer Loss Barometer, contains some eye-opening statistics that are causing businesses to take a new look at cyber threats and cybersecurity – and how they’ll manage them in an ever-changing environment. The biggest takeaway: No one is immune from cyber threats, yet very few organizations – large or small – are prepared for them. WHAT IS CYBERSECURITY? Cybersecurity or IT (information technology) security is defined as: “The protection of computer systems from the theft or damage to the hardware, software, or the information on them, as well as from disruption or misdirection of the services they provide.” Cybersecurity includes “controlling physical access to the hardware, as well as protecting against harm that may come via network access, data and code injection, and due to malpractice by operators, whether intentional, accidental, or due to them being tricked into deviating from secure procedures.” While cybersecurity may seem like somewhat of a new threat because of media coverage about security breaches and hacking scandals, those in the IT field know that cybersecurity has been an important issue for decades. KPMG LLP has been providing cyber services for more than 20 years. With over 4,000 clients globally, cyber is a significant focus area for the firm, according to Chad Veldhuizen, CISSP, and Michael Hatjiyannis, CISSP, both of whom are Directors for KPMG Cyber in Denver. While cybersecurity used to be somewhat rudimentary (i.e. isolated efforts by individuals focusing on identify theft), it has evolved into organized criminal efforts that include nation states, “hacktivists,” and

Chad Veldhuizen

Michael Hatjiyannis

insiders who are on a mission to gain strategic access to intellectual property, financial information, and systems. “Threats have evolved,” says Veldhuizen. “Five or ten years ago, it was about brute force. Someone trying to get into your network would try everything. It didn’t matter which industry you were in.” Now, he says, there has been a shift. Threats are targeted and tailored, and they are going after very specific parts of a company’s infrastructure. “They’ll do their research about you, researching your employees’ names and roles on LinkedIn, and then create an email from a database administrator asking another employee for their password. Suddenly, someone has information they shouldn’t have, and they will try to access your data,” Veldhuizen says. Depending on the industry, individuals will target different types of information and data. For example, in financial services they may target account information, whereas in retail they may go after credit card numbers. BY THE NUMBERS Last summer, KPMG released the Consumer Loss Barometer (the full report

• NewsAccount • January/February 2017

and related videos at www.kpmg.com/ us/consumerlossbarometer). The firm surveyed 750 consumers and 403 chief information security officers (CISO), chief technology officers (CTO), and chief information officers (CIO) in the automotive, banking, technology, and retail sectors. The survey revealed that 81 percent of executives admitted their companies had been compromised by cyber-attacks in the past 24 months. These attacks ranged from malware, internal breaches, and botnet to other attack vectors. Retail cyber executives reported the most breaches in the past 24 months, with 89 percent reporting “yes,” followed by automotive at 85 percent, and banking and technology companies reporting at 76 percent. Despite the breaches, less than half (49 percent) of these same executives said they have invested in information security in the past year. Banks appear to be most proactive when it comes to investments in information security, with 66 percent of executives reporting investments made, followed by technology at 62 percent, retail at 45 percent, and automotive at 32 percent. The report also found that some industries are more equipped to handle cyber-attacks because they have an executive whose sole responsibility is information security. Industry-wide, 69 percent of companies reported having a leader in place. However, there is a vast discrepancy – 85 percent of both banks and technology companies reported having a leader with retail and

automotive lagging at 58 percent and 45 percent respectively.

and systems to be resilient to both accidents and deliberate attacks.

Security executives acknowledged the ramifications of a breach citing reputation (53 percent), financial loss (50 percent), and job security (49 percent) as their top concerns associated with falling victim to cyber-attacks.

KPMG frequently meets with corporate boards on the topic. “We’re usually brought into board discussions in one of three ways,” Veldhuizen says. “First, a company might have had a breach, and the board wants to know how it happened, how they’re remediating, and if it will happen again.” Or, a board may bring in the experts after they’ve read about a breach in the media and want an evaluation of their risk. Veldhuizen says boards also reach out when they want to develop a plan but have no budget and no staff allocated to cybersecurity. “We’ve seen a huge increase in the number of security discussions at the board level,” he says. “Five years ago, it was hardly touched as a board topic unless it was a large global bank. Now, industries and boards of all types are asking the same kinds of questions.”

SPREADING THE WORD Recently, Veldhuizen and Hatjiyannis presented “Cybersecurity from the front lines” to the COCPA CFO Roundtable. Over the course of the presentation, COCPA members learned hackers and criminal insiders cause the most data breaches. In 2015, 47 percent of all breaches were caused by malicious or criminal attacks. The average cost per record to resolve such attacks was $170. In contrast, system glitches cost $142 per record, and human error or negligence is $134 per record. In addition, malicious attacks can take an average of 256 days to identify while data breaches caused by human error take an average of 158 days to identify. Veldhuizen and Hatjiyannis also explained how security incidents can have a wide ranging impact on a business including: • Financial impacts: Remediation activities, disclosure, legal fees, and emergency teams • Brand impacts: Bad press, loss of trust from customers, loss of business, and loss of strategic growth initiative • Global reach and regulations: Data privacy regulations inside and outside of the U.S. can have a huge impact on business operations (e.g. , general data protection regulation) FROM THE TOP DOWN During their COCPA presentation, Veldhuizen and Hatjiyannis explained that investors, governments, and global regulators are increasingly challenging board members to actively demonstrate diligence in the area of cybersecurity. Regulators expect personal information to be protected

from looking at cyber solely as a technology issue. He says cyber is now more of a business issue and that it must be linked to business processes. “One of the most important things we’ve learned is that cyber really is and should be a function of business innovation and agility, not just technology,” he emphasizes. “Corporations need to move much faster to meet the needs of consumers and to protect data for consumers. Consumers have the choice to go elsewhere if their information isn’t being protected. Businesses need the agility that technology brings. Cyber as a direct function of business innovation is a real differentiator.” CREATING SOLUTIONS KPMG Cyber takes an end-to-end approach that is designed to be simple and effective, and most importantly, aligned with the business needs of clients. Pre breach, they work to:

Without a cybersecurity plan, potential risks to boards include: • Intellectual property losses including patented and trademarked material, client lists, and commercially sensitive data • Penalties, which may be legal or regulatory fines for data privacy breaches, and customer and contractual compensation for delays • Property losses of stock or information leading to delays or failure to deliver • Reputational losses causing a company’s market value to decline along with loss of goodwill and confidence by customers and suppliers • Time lost due to investigating the losses, keeping shareholders advised, and supporting regulatory authorities (financial, fiscal, and legal) • Administrative resources to correct the impact such as restoring client confidence, communicating to authorities, replacing property, and restoring the organization or business to its previous levels Greg Bell, Principal and U.S. Lead for KPMG Cyber, says there has been a shift

• Prevent: Helping clients understand how to align their cyber agenda with their dynamic business and compliance priorities. • Improve: Helping clients build and improve their programs and processes – supported by the right organization and technology – to improve their cyber agenda. • Detect: Helping clients maintain their cyber agenda as their business and technology programs evolve by providing greater visibility and understanding of changing risks. Post breach, they work to: • Respond: Helping clients effectively and efficiently respond to cyber incidents and conduct forensic analysis and detailed investigations. “Our goal is to focus on prevention,” Hatjiyannis says. “We work to help our clients establish a strategy and governance on how cybersecurity will fit into their organization. Once we’ve identified challenges and where we want to improve, we deploy solutions to transform the way an organization addresses risk.” CONTINUED ON PAGE 18

January/February 2017 • www.cocpa.org •

Security & Technology CONTINUED FROM PAGE 17

“We look at how a system is replicating data here in Denver versus Chicago for business continuity management,” Veldhuizen says. “Is data stored securely? Who has access to it? Security has to be overlaid so the appropriate controls and access in place allow or deny people the ability to do things.” Ultimately, the goal is creating a seamless, integrated plan that is tested with security and resiliency in mind.

In which of the following areas do you see the greatest vulnerabilities in your organization's data security? Employees are the weakest link in cybersecurity.

54%a

40%

EVERYONE IS AT RISK When it comes down to it, employees are the weakest link in the cybersecurity chain. And that means whether you’re a large or small organization, you’re at risk. (See Chart 1.)

39% 34% 28%b

1% Employee breaches Sharing data with third parties Wireless computing Inadequate firewalls External attackers Other (unspecified) 61% Retail

34% Technology

Source: KPMG LLP Consumer Loss Barometer 2016 Chart 1

While the Consumer Loss Barometer data showed that less than half (49 percent) of breached companies haven’t invested in information security in the last year, Hatjiyannis says that number may be a little confusing. “They may be investing in pockets, but they aren’t investing in a centralized way,” he says. “Management might not know what’s being spent. It comes down to awareness. Organizations that don’t have a grasp on the importance of information security don’t have representation on their board. Someone has to be responsible for information security on the board. If it’s a lower level manager, there isn’t any insight to convey up the ranks. That’s where we see spending isn’t occurring.” Hatjiyannis says while this is beginning to shift, it’s still an issue. The bottom line is if there isn’t a representative, such as a chief information security officer, on the board who can describe the need and risk as they relate to that company, there will be problems.

Hatjiyannis says any organization that has information systems online is going to be exposed to some sort of cyber risk. “The most important first step, even for a smaller company, is some form of governance about how they identify, review, and assess risks to their organization,” he says. Once that is in place, an organization can identify its exposure and form the necessary controls. “Regardless of size, as soon as you’re online, your risk has increased whether you’re a small mom and pop business or you’re on the Internet storing customer information. Assessing the risk, understanding controls and gaps, and creating a plan to mitigate risk are critical. Companies spend on the latest tools and software, but if that investment isn’t coordinated with an overarching program, everything falls flat.”

• NewsAccount • January/February 2017

Veldhuizen adds that one of the biggest gaps for organizations both small and large is training and awareness programs to educate employees about the risks from seemingly simple things such as opening a phishing email and clicking on a link. “There are staggering stats on the success of phishing emails,” he says. “They have a success rate of over fifty percent. So training, awareness, and teaching people what they should do is critical.” Something else you might not think about in terms of security is who is allowed to walk in and out of your building. “It’s all about developing a security-centric culture,” he emphasizes. “No technology tool will make up for that gap if someone clicks on an email or lets someone into the building who shouldn’t be there.” The numbers back up his concerns. Seventy percent of all breaches or stolen data are from an insider threat. “It’s not the outside person from the other side of the world,” Veldhuizen says. “You can’t assume just because someone is an employee that you can trust him or her.” Another potential threat comes from sharing data with vendors, whether it’s someone accessing your system online or someone on site performing services. “You need to have controls in place,” Hatjiyannis says. “They may not be doing anything malicious, but information could be breached.” Veldhuizen says every breach is different in terms of how someone got in, what data was taken, etc. Often, the key challenge is figuring out the best way to stop it. “It is critical for CFOs who are sitting with the board to know and understand the risks associated with information security,” Hatjiyannis says. “Anyone at the board level should have some representation or visibility into information security risk. If not, there’s a gap, and someone needs to take ownership at the board level.” s

ARE YOUR FINANCE PROFESSIONALS SKILLED ENOUGH TO FULFILL YOUR STRATEGIC BUSINESS GOALS? Whether you integrate a qualified CGMA designation holder into your team, or empower your people through the program, you’re adding the experience to excel, to be ready, to be the difference.

From informed to influential. The CGMA difference. ®

Visit CGMA.org/Program to know more.

Professional Standards

It’s Really Here: The New Revenue Recognition Standard BY ALAN BENNETT, CPA

Here is the bottom line about the new top line: ASC 606 has arrived, and it impacts effectively every preparer in a significant way.

nless you’ve been hiding under the profession’s largest rock, you’ve at least heard about the sweeping new revenue recognition standard. Even if you’re not directly involved with an implementation of “Rev Rec,” there is no doubt you’ll soon find yourself in a casual conversation on the matter with a colleague or client. Here’s your quick reference guide for the new revenue recognition standard. The core principle of the standard, as described by the FASB and the IASB, is “to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the

company expects to be entitled in exchange for those goods or services.” The new standard offers a singular, comprehensive, and principles-based revenue recognition model that will replace existing general guidance and over 200 industry-specific revenue guides. The IASB issued IFRS 15 alongside ASC 606; the two standards have only minor differences. The new model is based on a control approach which differs from the risks and rewards approach applied under current U.S. GAAP. A customer obtains control when it has the ability to direct use and obtain substantially all benefits of the asset. By providing one robust framework, the new standard aims to improve consistency and comparability of the top line within and across industries…and around the globe. It

• NewsAccount • January/February 2017

is applicable to almost all entities with only a few exceptions. Among those exceptions are scope exclusions for lease contracts, insurance contracts, certain non-monetary exchanges, and financial instruments. A BRIEF HISTORY In the wake of the 2001 earnings management crisis, the FASB and IASB began to plant the seeds for an overhauled framework. After over 600 meetings and 1500 comment letters, ASC 606 was tabled for release in spring 2014. Subsequent to issuance, the FASB issued four additional clarifications related to the standard. The first amendment: To defer the initial adoption timeline one year due to the myriad of implementation challenges faced by issuers. After all, if it took 12 years to write it, shouldn’t we get more than a few months to implement the new standard?

(See Chart 1.) To assist stakeholders, the FASB and IASB created the Transition Resource Group (TRG) to solicit, analyze, and advise on implementation issues and to resolve potential diversities in practice. The SEC has indicated that companies should take into consideration the TRG’s conclusions as part of their assessment of the standard. ADOPTION Entities may elect to adopt the new standard in one of two ways; either method could result in “lost revenue” upon transition. The full retrospective approach conforms all presented periods to the standard. The less onerous modified retrospective approach requires only the current period to conform to the new standard with a cumulative year one adjustment to retained earnings – but it involves additional disclosure requirements. In keeping with principles-based guidance, both methods will require an extensive amount of year one and go-forward disclosures (both annual and interim): • • • •

disaggregation of revenue qualitative disclosures remaining performance obligation information about contract balances

EFFECTIVE DATES (SUBSEQUENT TO THE DEFERRAL) Public

Non-public

Effective Date

Annual and Interim Periods beginning after 12/15/17 (2018 Calendar Year)

Annual Periods beginning after 12/15/18 (2019 Calendar Year)

Early Adoption Permitted?

Yes, but no earlier than Yes, but no earlier than the the original effective effective date for public date companies

Chart 1

Also, the SEC has set the expectation that companies start to disclose their progress on implementation prior to adoption date. THE 5 STEP MODEL Under the new guidance, entities will follow these five steps when recognizing revenue from contracts with customers (Spoiler: Not as simple as it looks): 1. Identify contract(s) with a customer. 2. Identify the separate performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the separate performance obligations. 5. Recognize revenue when the entity satisfies each performance obligation.

For a closer look at the standard, check out the AICPA guides, publications of the 16 industry working groups, and technical interpretations from accounting firms. At over 700 pages in length, “Rev Rec” introduces new core concepts, terminology, and requirements. All of us in the profession are compelled to understand Rev Rec, and while you’re at it, show some sympathy to your colleagues in the software, defense, telecom, life sciences, and entertainment sectors, as they are expected to endure the most significant change. s

Alan Bennett, CPA, is Revenue Manager with SM Energy Company, Denver. Contact him at abennett@sm-energy.com.

Proposed Regulations

AICPA to IRS: Withdraw and Re-Propose Estate Valuation Discount Regs

he American Institute of CPAs (AICPA) called on the Internal Revenue Service (IRS) to withdraw and re-propose the estate valuation discount regulations that were the subject of an IRS hearing, Dec. 1, 2016. The proposed regulations concern the valuation of interests in corporations and partnerships for estate, gift, and generation-skipping transfer tax purposes. The two witnesses for the AICPA, Justin P. Ransomea and Michelle F. Gallagher, stressed the Institute’s concern that the proposed regulations are “overly broad and

general in nature.” They recommended that the proposed regulations apply only to family-owned entities that hold passive investments and not to family-owned businesses that carry on a trade or business. They also testified on other specific aspects of the proposed regulations. Ransomea and Gallagher requested that the proposed regulations be withdrawn, and that if the U.S. Department of the Treasury and IRS officials determine regulations are still needed after they review the more than 9,000 comment letters received, they should

issue new proposed regulations, with another comment period, before any regulations are finalized. The AICPA witnesses urged that the effective date of the re-proposed regulations be extended until the regulations are finalized. To read the proposed regulations, go to IRSestatevaluationdiscountregs.cocpa.org. To read the witnesses’ published testimony, go to GallagherTestimony.cocpa.org and RansomeaTestimony.cocpa.org.

January/February 2017 • www.cocpa.org •

Retirement Planning

$2M is the New $1M Are you saving enough for retirement? BY SCOTT RANBY, CPA, CFP®

s an avid reader of Money magazine during my adolescent years, I learned that people should save $1 million by retirement age. Fast forward two decades; I’ve turned my passion for investing and personal finance into a career. I recently wondered if $1 million is still a sufficient goal for aspiring retirees. Let’s assume George and Susan are in their mid-60s, and they plan to retire this year. They both were high earners and accumulated $1 million in retirement savings. Here’s how their income might look in retirement. AFTER TAX RETIREMENT INCOME $89,750 $60,000 $29,750 Social Security

Portfolio Withdrawals

Total Income

Whether George and Susan can live their desired lifestyle on $90,000 a year is debatable, considering all the things they

spend money on: travel, hobbies, financial gifts to charities and family, a ski condo, etc. If they had doubled their retirement savings to $2 million, they could expect to receive an additional $30,000 annually. So, it appears that the bar for achieving financial independence has been raised. Expecting to withdraw just shy of $30,000 annually may seem stingy given George and Susan’s $1 million portfolio. However, this expectation is based on the well-known “4% rule” that was introduced 20 years ago to answer the question of how much a retiree could safely withdraw from a portfolio each year without running out of money. While simple to compute and easy to remember, the 4% rule has flaws, the most noteworthy being that it was developed in an era when bank savings accounts paid 5%.

past few years have put stocks in a position to potentially underperform their historical 10% return, the rate used in developing the safe withdrawal methodology. The current combination of low interest rates and fairly priced stocks paints a much different picture when assessing the appropriateness of a 4% withdrawal rate. As the table here shows, the likelihood of a portfolio lasting 30 years at various withdrawal rates declines precipitously – from 100% to 64% – when historical assumptions (savings accounts earn 5% and stocks return 10%) are replaced with current observations. Probability a 50% Stock/50% Bond Portfolio Will Last 30 Years1 Withdrawal Rate

It likely will take years before safe investments like CDs and savings accounts can offer the rates assumed under the 4% rule. Another hazard of applying the 4% rule in today’s world: Stock market gains of the

Assumption

Historical Return of Data

100%

68%

43%

Current Market Conditions

64%

37%

17%

“Sustainable Retirement Spending with Low Interest Rates: Updating the Trinity Study.” Wade D. Pfau, Ph.D., CFA. Journal of Financial Planning, August 2015, 38-40. 1

• NewsAccount • January/February 2017

Investors can tilt the odds of success in their favor by lowering their withdrawal rate, increasing their portfolio’s risk/reward profile, or accepting the possibility that their portfolio will be expended earlier than previously assumed.

research on how much one should have saved by various ages to accumulate a sufficient nest egg. Here are the sobering results: 30

1x salary

Age

Factor

10x

Age Factor

Aspiring retirees should perform rough calculations to ensure reasonable expectations are set for how much they can prudently spend from their portfolio each year. As a starting point, pre-retirees should develop a budget based on their envisioned lifestyle in this next chapter. Next, all non-investment related sources of income should be tallied, such as pensions, Social Security, and any part-time earnings. The sum of these payment streams should be deducted from the annual desired spending amount. If a shortfall exists, the deficit will need to be withdrawn from the investment portfolio at sustainable rates. YOUR SAVINGS FACTOR Are you on Track? Fidelity Investments recently published

Source: Fidelity.com/viewpoints/retirement. Assumes you save 15% of your income annually from age 25 until 67. Your portfolio will be allocated at least 50% to stocks over your lifetime, and you will maintain your preretirement lifestyle. To illustrate this guidance, let’s assume Jill and Jason are 40-something’s who earn a combined salary of $250,000 annually and contribute 15% of their income to retirement savings. We’ll assume they hope to retire at age 67 and live a similar lifestyle in retirement as they do now. Jill and Jason should have amassed at least $750,000

in retirement savings by age 40 and be approaching $1 million by age 45. As with all generic advice, remember that your personal and financial circumstances will determine your nest egg target. s Scott Ranby is a Certified Financial Planner® professional with Kuhn Advisors, Denver. 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.

Colorado Statutory Requirements

Liability Insurance: What's Required?

everal times a month – and most recently in the COCPA LINK Open Forum – a Colorado-licensed CPA will ask, “Do I (or does the CPA firm) have to carry professional liability insurance?” An answer is found in the Colorado Revised Statutes, at section 12-2-117. This statute also sets out some implications of a decision not to obtain insurance coverage. As a first step, it may be best to consider the language of the statute, as well as to discuss the issue with counsel and with an appropriate insurance broker. The Colorado State Board of Accountancy Rules don’t address this subject, given the language of the statute. Typically, this is the approach of the Board when the statute covers an issue. Title 12 Professions and Occupations, Article 2 Accountants,

cannot be repealed by the Board, even by adopting rules. Colorado law at 12-2-117(3)(c) C.R.S. states: All partners, shareholders of the corporation, or members of the limited liability company shall be jointly and severally liable for all acts, errors, and omissions of the employees of the partnership, corporation, or limited liability company except (emphasis added) during periods of time when the partnership, corporation, or limited liability company maintains in good standing professional liability insurance, or designated or segregated moneys in lieu of such professional liability insurance, which meets the standards set forth in subparagraphs (I) to (V) of this paragraph (c)...

The subparagraphs go on to outline the scope of the described insurance; the amount of insurance required; what exclusions are allowed within the policy; that the policy may be of a type “reasonably available in the commercial insurance market; other details of the policy; and how the partnership, corporation, or limited liability company “may maintain, in lieu of the insurance specified...moneys specifically designated and segregated as security for the payment of liabilities imposed by law…” To read the law, go to liabilityinslaw.cocpa.org, or search online for Colorado State Board of Accountancy Laws. s This article is not and should not be interpreted to constitute legal advice.

January/February 2017 • www.cocpa.org •

Federal Regulatory Update

Partnerships To Face New IRS Audit Procedures BY LAURA J. THEISS, CPA

ajor changes are coming in IRS partnership audit procedures after 34 years of little to no change. Under the new rules, audit adjustments generally will be made at the partnership level, and the tax, penalties, and interest as a result of the adjustments will be collected directly from the partnership1. The Bipartisan Budget Act of 2015 replaces the TEFRA partnership audit rules with new procedures that are mandatory for tax years beginning after Jan. 1, 20182. Even though the rules are not yet effective, it is important to understand the rules today because they affect clients who are forming new partnerships, buying into existing partnerships, or may want to elect into the rules early. The new rules could be troublesome for a few reasons. New partners could be affected detrimentally by an audit adjustment that occurred before they became a partner. Partners who left the partnership before an IRS audit was finalized could avoid paying their fair share of the tax liability. The partnership is responsible for identification and collection of funds (if need be) to make the payment of tax.

IRC §6221(a) Bipartisan Budget Act of 2015, Public Law 114-74 (BBA)

There are two ways a partnership can opt out of the new audit rules: • If it is a small partnership with 10 or fewer partners, each of whom is an individual, estate, C corporation, or S Corporation unless the partnership elects to be covered by the new rules3. • If the partnership is eligible to elect out of the new audit rules – because it issues fewer than 100 Schedule K1s and each partner is either an individual, estate, C corporation, S corporation, or a foreign entity that would be a C corporation if it were domestic4. Partners who are also partnerships, tax exempt entities, trusts (including grantor trusts), would cause the partnership to be ineligible to elect out of the new rules. The partnership must make this election annually on a timely filed return and notify each partner of the election. The following timeline of events is how the IRS audit procedures generally would work for partnerships subject to the new rules. An IRS audit notice is mailed to the partnership and the partnership representative. The partnership representative is a partner or other person designated IRC §6231(a)(1)(B) IRC §6221(b) 5 IRC §6223(a)

to act on behalf of the partnership and is authorized to make binding decisions during the exam process5. The taxable year under examination is referred to as the "review year" in the new rules6. After the IRS concludes the exam of the review year, it issues a letter of proposed audit adjustments. A notice of final partnership adjustment is sent no earlier than 270 days after the date the proposed audit adjustment letter was mailed. The "adjustment year" is the year in which the final partnership adjustment letter is mailed and the tax becomes payable7. The tax due and payable by the partnership as a result of the exam is computed by multiplying the net partnership audit adjustment by the higher of the highest individual or corporate tax rate for the reviewed year8. The IRS is authorized to establish procedures for lowering this imputed tax on audit to take into account the character of income, tax exempt partners, allow for tax attributes of a partner, or other issues that would ultimately result in a lower tax liability9. This documentation is submitted during the IRC §6225(d)(1) IRC §6225(d)(2) 8 IRC §6225(b)(1) 9 IRC §6225(c)

• NewsAccount • January/February 2017

period between the proposed adjustments and the final assessment. If no other action is taken, the partnership is responsible for payment of the outstanding tax liability10. Alternatively, instead of the partnership paying the tax, an election can be made within 45 days after receipt of the final underpayment notice to shift the burden for the tax payment onto the partners of the review year11. As a result of this election, each partner would be furnished with a statement or revised Schedule K1 for the review year showing the partnership adjustments12 and responsible for reporting the additional tax liability as a result of the adjustment. This election carries an additional burden of interest at two percentage points higher than if the partnership were simply to pay the underpayment13.

IRC §6225(a)(1) IRC §6226(a)(1) 12 IRC §6226(a)(2) 13 IRC §6226(c)(2)(C)

Partnerships may decide to elect into these new rules prior to Jan. 1, 2018, for tax years beginning after Nov. 2, 2015.14 The election must be made within 30 days after the partnership is contacted by the IRS that a tax year has been selected for examination.15 However, the election must make the representation that the partnership is not insolvent and does not reasonably anticipate becoming insolvent before the resolution of the audit exam.16

• Should the partnership agreement indemnify new partners admitted to the partnership who did not own a partnership interest for the review year?

Before the rules become effective, clients should consider how to incorporate these changes into operating agreements for new or even existing partnerships. Possible considerations to include in an operating agreement would be:

• Identification of the partnership representative, which may also be the tax matters partner if that is already included in the operating agreement s

• If the partnership is eligible, should the partnership be required to elect out of the new rules? • Should the partnership agreement require partners of the reviewed year be responsible to reimburse the partnership for the underpayment of tax liability as a result of an audit?

Laura J. Theiss, CPA, is a senior tax manager with Holben, Hay, Lake, Balzer CPAs in Denver. Contact her at ltheiss@hhlbcpa.com.

IRC §301.9100-22T IRC §301.9100-22T(b) 16 IRC §301.9100-22T(b)(2)(ii)(E)(1)

CPA/PAC Support Makes Its Mark

(District 25); Jack Tate (District 27); and Democrat Angela Williams (District 33).

On the Senate side, CPA/PAC supported seven candidates, five of whom won: Republicans Jim Smallwood (District 4); Bob Gardner (District 12); Kevin Priola

On the House side, CPA/PAC supported 24 candidates, 19 of whom won: Republicans Dan Nordberg (District 14); Larry Liston (District 16); Lois Landgraf (District 21); Lan Sias (District 27); Susan Beckman (District 38); Polly Lawrence (District 39); Patrick Neville (District 45); Clarice NavarroRatzlaff (District 47); Phil Covarrubias (District 56); Kimmi Lewis (District 64); and Democrats Dan Pabon (District 4); Crisanta Duran (District 5); Paul Rosenthal (District 9); Brittany Pettersen (District 28); Tracy Kraft-Tharp (District 29); Dafna Michaelson Jenet (District 30); Matt Gray (District 33); Dave Young (District 50); and Joann Ginal (District 52).

very two years, the CPA Political Action Committee (CPA/PAC) supports Colorado state legislative candidates through campaign contributions. This election cycle, which culminated with the November 2016 general election, the CPA/PAC Board contributed $9,050 to 31 Colorado House and Senate races, supporting both Republicans and Democrats. Of the candidates who received contributions, 24 won for an overall success rate of 77 percent - with a 71.4 percent success rate in the Senate and a 79.2 percent success rate in the House.

In selecting those it supported financially, the CPA/PAC Board considered each candidate’s support of business issues; prior involvement with and understanding of the accounting profession’s issues; leadership position; member, chair, or vice chair of the House Business, Labor, Economic, and Workforce Development and Finance committees or the Senate Business, Labor, and Technology and Finance committees (which typically consider proposed legislation affecting CPAs and their clients or employers); and relationship with CPAs. For more information, contact Mary E. Medley, mary@cocpa.org, 303-741-8601, or 800-523-9082, ext. 101. s

January/February 2017 • www.cocpa.org •

Profession Perspective

Then & Now Remember when... you had to remember phone numbers? Remember when... you couldn't edit your presentations?

Remember when... you couldn't just keep taking pictures?

Remember when... you had to wait to communicate?

Remember when... you didn't particpate in learning?

COCPA was there then... ...And will be with you into the future. 26

â&#x20AC;˘ NewsAccount â&#x20AC;˘ January/February 2017

Now... contact information is just a few taps away. Now... you can present without even being in the same room. Now... you can capture virtually any experience, digitally. Now... communication is instant and frequent.

Now... learning is interactive and always changing.

In the Future Back in the day...

The Successful CPA

CPAs were successful if they kept up with technical skills.

2.0

COMMUNICATION & COLLABORATION

STRATEGIC DEVELOPMENT

Today... CPAs have more responsibilities, more demands, and deal with more complexities.

The future...

FUTURE THINKING

BOLD LEADERSHIP

CPAs must have technical proficiencies and leadership abilities to succeed. They:

CORE ETHICS

• are up-to-date on cutting edge topics • understand strategy • communicate well • have high ethical standards • collaborate with others

Accounting skills are no longer enough. COCPA seminars, online learning, and other programs provide you with the breadth of knowledge you need to move your career forward.

Our profession. Our future. Together. January/February 2017 • www.cocpa.org •

Movers & Shakers The AICPA named Timothy McCutcheon, CPA, Eide Bailly LLP, Denver, chair of its Not-for-Profit Advisory Council. He specializes in audit, tax, and advisory services and chairs the firm's Nonprofit Technical Issues Committee. Contact him at TMcCutcheon@eidebailly.com. The Denver Dumb Friends League named Keely Gohl, CPA, Controller. Contact her at kgohl@ddfl.org, 720-241-7085.

Kiesling Associates LLP, with offices in Colorado Springs, Iowa, Nebraska, and Wisconsin, joined BKD LLP. The Kiesling team moved to BKD’s Colorado Springs location at 111 S. Tejon St., Ste. 800, Colorado Springs, CO 80903, phone 719-471-4290.

Save the Dates

LeadFit

2017 DATES July 6 Kick-off BBQ July 7 Full Day

2017

August 11 Half Day

This COCPA highly rated leadership development training program is customized for CPAs and CPAtrack professionals looking to grow professionally and personally. For more information and to apply for the 2017 class, contact Terry Cervi, terry@cocpa.org.

September 8 Half Day October 18 Debrief November 14 Full Day/Graduation

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.

Volunteer Opportunity Make an IMPACT - Volunteer with Junior Achievement ® Rocky Mountain www.JAColorado.org

Denver Tax Study Group at the COCPA Office

Tuesday, January 31, 2017 | 12:00 PM This informal roundtable discussion group meets over lunch, the last Tuesday of most months, at the COCPA office, 7887 E. Belleview Avenue, Ste 200, Englewood. 2017 Meeting Dates scheduled through June: Jan. 31, Feb. 28, March 28, April 25, May 30, June 27. Register at www.cocpa.org.

North Metro Tax Study Group at The Ranch Country Club

Thursday, January 19, 2017 | 12:00 PM This informal roundtable discussion group meets over lunch ($20/ person), the third Thursday of most months, at The Ranch Country Club, 11887 Tejon St., Westminster. 2017 Meeting Dates: Jan. 19, Feb. 16, March 16, April 20, May 18, June 15, July 20, Aug. 17, Sept. 21, Oct. 19, Nov. 16, and Dec. 21. Register at www.cocpa.org.

• NewsAccount • January/February 2017

Classifieds OPPORTUNITIES AVAILABLE

OFFICE SPACE AVAILABLE

CONTRACT TAX ACCOUNTANT Cherry Creek firm seeks tax accountant with 7+ years experience preparing personal returns for professional accounting firm. Position is 40 hours per week in our office from Feb 1 to April 30. Potential additional work after tax season. Looking to establish long-term relationship. Send resume to denvertaxassist@gmail.com.

GREENWOOD EXECUTIVE PARK at S.Quebec St. and Peakview Ave. (Near I-25 and Arapahoe Road). Windowed office, conference room, kitchen, receptionist, copier, fax, telephone system. DSL line, tax library, free parking, great environment. Arlyn or Neil 303-771-7377.

SENIOR ACCOUNTING STAFF Chafee County, Colorado CPA seeking Senior Staff Accountant. Minimum 3 years of experience in QuickBooks, accounting, and tax preparation for small businesses and their individual owners is required. CPA preferred but not required. Salary and benefits negotiable depending upon candidate’s experience and qualifications. Resume and salary requirements can be submitted to cpachaffeecounty@gmail.com. ZORAJA & ASSOCIATES PC, an established tax firm in Boulder, is seeking a highly skilled tax CPA for a full-time position and a long-term relationship. What You Can Expect from Us: • Relaxed, friendly, flexible, and supportive environment • A private office with great views, central location, and free parking • Health insurance, 401 with match, CPE, dues, pre-tax health insurance for dependents • Competitive and negotiable compensation Responsibilities include: • Preparation of complex individual & business entities' income tax returns & tax planning • Direct client communications Desired Qualifications:

NORTHWEST METRO AREA office available in suite of established tax practitioner. Resource sharing available and possible contract work. Near I-70 and Kipling. Call 303-422-7139. OFFICE SHARING OPPORTUNITY in 4 sole practitioner CPA Colorado Springs office suite. Share conference, kitchen, internet, and telephone. Convenient North Academy and I-25 location with ample free parking. Tax season only or longer lease available. Call for details, Mark or Karen, 719-884-2000, or email karen@findleycpa.com. Established SE CPA FIRM has 1 window office ($475 a month) & 1 inside office ($425 a month) for rent. Newly renovated building, parking available for small fee. Easy access to numerous restaurants, parks, etc. Located North of I-25 & Colorado Blvd. Contact Denise at 303-692-9326 x10 if interested. To submit a classified advertisement for publication, email the information to advertising@cocpa.org and note in the subject line, “For COCPA Classifieds.” There is a 400-word limit on classified ads. Pricing: 0-50 words, $50; 51-100 words, $100; 101-200 words, $200; 201-300 words, $300; and 301-400 words, $400.

Accountants and Consultants www.acmllp.com

• CPA with 5+ years of experience in income taxation in public accounting • Experience in ProSystem fx, QuickBooks, MS Office, and tax research • Familiarity with current tax laws • Experience working with high net worth clients and their unique tax issues Ideal Characteristics: • Commitment to excellence and a passion for client service • Organized, good communicator, flexible, productive • Independent, detail-oriented, and self-directed • Dependable, cooperative, and consistent Please apply at www.zaacpa.com/careers.html or email your resume with your compensation requirements and availability to taxcpa@zaacpa.com.

Live Here. Work Here. Play Here.

imagine the possibilities tm ACM is a locally owned, locally committed

accounting firm. We understand why you live here,

DON FARMER

TAX WORKSHOPS FEDERAL TAX UPDATE January 12 • Inverness Hotel and Conference Center or Webcast Register at FarmerFed.cocpa.org

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

January/February 2017 • www.cocpa.org •

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