COCPA NewsAccount - January/February 2021 by Colorado Society of Certified Public Accountants

NEWSACCOUNT COLORADO SOCIETY OF CPAs â&#x20AC;¢ JANUARY/FEBRUARY 2021

The Pandemic Effect: Highs and Lows for Colorado Industries PAGE 10

Who Pays the Bill? Stimulus Dollars and the National Debt PAGE 14

Quick Pulse Survey 2 Says: Disruption and Uncertainty Continue PAGE 20

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NewsAccount | January/February 2021

Contents

Features 4

Watkins to Become Chair; Roberts Tapped for Vice Chair/Chair-elect The Nominating Committee presents the slate for COCPA leadership positions beginning May 1, 2021.

Special Session Focuses on COVID Relief On Nov. 19, 2020, Governor Jared Polis called for the Colorado General Assembly to reconvene to address seven areas for relief. Here’s what passed in three days.

CPAs to the Rescue: Right-sizing Implementation of ASU 2020-07 Understanding the ASU and translating its application appropriately are key to reporting contributed nonfinancial assets, especially for smaller and mid-sized not-for-profit organizations and their CPAs.

Who Pays the Bill? Stimulus Dollars and the National Debt The pandemic stimulus payments jacked up the projected 2020 deficit by more than $3 trillion. The U.S. can take steps right now to start chipping away at the national debt. It begins with balancing the budget.

Deloitte Doubles Down on DE&I Initiatives In 1993, Deloitte became the first professional services organization to establish a women’s initiative and a diversity initiative. Over the last nine months, the firm as a whole has been reassessing its efforts. Quick Pulse Survey 2 Says: Disruption and Uncertainty Continue The impact of COVID-19 on U.S. businesses is evolving constantly, and organizations are continuously adapting in response. COCPA members’ most pressing concerns and challenges continue to vary based on their business sector. Mental Health in the Workplace: Making a Difference in Suicide Prevention and Awareness In this fourth article in the series, Lisa Hackard and Alex Yannacone address common questions about suicide awareness and prevention - and what you can do to help.

23 Departments 2 29

Chair Column Movers & Shakers, In Memoriam, Classified Ads

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January/February 2021 | www.cocpa.org

CHAIR COLUMN

CPAs – Thriving in Challenging Times

NEWSACCOUNT

A bimonthly publication of the Colorado Society of Certified Public Accountants Vol. 66, No. 5 January/February 2021

Officers

Sharon S. Lassar, Chair Randy L. Watkins, Vice Chair Peter J. Derschang, Treasurer Benjamin T. Hrouda, Immediate Past Chair Mary E. Medley, Secretary

Directors

James N. Brendel, Toby D. Clary, Audra Dixon, Renny Fagan, Mary-Margaret Henke, Kelly A. Kozeliski

Editorial Board

Jack Allgood, Steve Corder, Georgia Z. Phillips, Lori Anne Reinwald, Laura J. Theiss, Barbara J. Tedesko, Steve Van Meter, Michael D. West, Charlie Wright Mary E. Medley, President/CEO, Editor Natalie G. Rooney, Contributing Writer Ariana Cassard, 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 $12.00 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 = 5,794 copies; sales through dealers and carriers, street vendors, and counter sales = 0; paid or requested mail subscription = 5,736; free distribution by mail = 0; free distribution outside the mail = 20; total free distribution = 20; total distribution = 5,756; office use, leftovers, spoiled = 38; returns from news agents = 0; total sum = 5,794; 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.

BY SHARON S. LASSAR, PHD, CPA (FLORIDA)

Remarks delivered at the AICPA Fall Council meeting reminded me of all we accomplish, collectively, as a profession. We have been unbelievably successful because we understand the systems that evolve around us: government programs, regulation, compliance, technology, globalization, and the economy. Although the economy is uncertain, our profession is strong. We are trusted business advisors who connect people, businesses, and organizations to resources they need to solve problems and create opportunities.

he COCPA and AICPA advocate for the accounting profession, our clients, and CPAs in industry. Since the beginning of the pandemic, we have advocated for tax extensions, for small business funding, and for expediency and simplicity in accessing relief funds. The AICPA continues to advocate for small businesses, for the ability to deduct expenses paid with Paycheck Protection Program (PPP) loan proceeds, for a new round of government funding, and for a temporary suspension of the new PPP Loan Necessity Questionnaires. The new questionnaires require PPP borrowers with loans of $2 million or more to complete a new form and provide extensive documentation supporting their request for relief funds. The AICPA joined with 82 other national organizations to request suspension of the new form; the existing PPP Forgiveness Applications already require extensive documentation that speaks directly to how PPP borrowers retained or re-hired employees. The existing form allows government agencies to examine, in great detail and prior to the approval of loan forgiveness, relevant facts to ensure that PPP loan funds were used in the way Congress intended. The new form seems to impose major changes to PPP criteria in an after-the-fact manner that could penalize small businesses that played by the rules. Throughout the pandemic, the AICPA has leveraged relationships with Congress,

government agencies, regulators, standard setters, and technology suppliers. The AICPA has kept us informed through a Town Hall Series in which 25,000 members have participated – 78 percent of us multiple times. In the Town Halls, subject matter experts provide updates and guidance from Treasury and the SBA and answer members’ questions on pressing issues. The AICPA also provides podcasts and web-based tools to help members navigate compliance with the various governmental relief programs. I encourage you to check out what’s available at future.aicpa.org/resources/toolkit/ paycheck-protection-program-resources-for-cpas. Our profession plays a critical role in restoring consumer confidence. The AICPA led the formation of the Small Business Funding Coalition whose members provide services and support to nearly four million businesses and more than 78 million employees. It is helping small businesses find solutions and steer through these challenging times. These small businesses employ our family members, friends, and neighbors, and they fuel the economy when they spend their paychecks. Consumers will lead this recovery. We can be proud of the role we play in society and how we are leading innovation. Many of us adapted to working remotely as we audited 2019 financial statements, prepared tax returns, or implemented technology solutions. Not only has one year

blended into the next, but also the amount of rework is overwhelming. Carrybacks, amended tax returns, and revised forecasts have added to the already heavy workload. We are planning for an uncertain future while also revising or unwinding plans that were created under very different cash flow and interest rate scenarios. The amount of work CPAs are doing and the circumstances under which work is being done have resulted in talent management issues and fueled a digital transformation. A large portion of work will continue to be done from home, even after the pandemic passes. We will have to be even more intentional about how we develop staff and ourselves. We will continue to leverage online learning. As professionals struggle to help their children with remote learning, they see what works and what doesn’t. Professionals are embracing opportunities to learn new tools and using those tools to boost their productivity. Educational programs offered through the COCPA and other providers teach us how to use data analytics, machine learning, and artificial intelligence to make better decisions. We also are learning how to automate processes so they can be performed by robots. In 2019, the University of Denver’s School of Accountancy offered its

Educational programs offered through the COCPA and other providers teach us how to use data analytics, machine learning, and artificial intelligence to make better decisions. first course on Robotic Process Automation. It has proven so popular that more sections of the class were added this year.

YOUR DONATION

OPENS DOORS Your support made a difference on Colorado Gives Day 2020.

THANK YOU.

You helped raise

$35,500

Your gifts helped unlock $20,000 in matching funds from:

- Deloitte LLP - Mark J. Smith - KPMG LLP Family Foundation - SingerLewak

One student reported being able to automate a daily task he was assigned to perform during his summer internship. His employer had budgeted two hours for the task every work day. Once automated, the task took 30 seconds, and the intern was able to be assigned to more meaningful projects. Future CPAs are learning digitalization tools in their accounting curricula. The pandemic has propelled the rest of us to do the same. In 2017, 80 percent of CFOs said their teams did not have the skills needed for digital transformation. By the beginning of 2020, 95 percent of CFOs were saying the same thing. During the pandemic, finance teams that had digitized early moved through four phases of digital transformation quickly: panic, stabilize, reset, and plan to thrive. Those who did not have a good start on digitalization learned that innovation was critical to remain viable. They are following the leaders to stage four. Speed and agility were thrust upon businesses, whether they were ready or not. Digital skeptics became believers. And they are moving forward with vision and direction. CPAs are resilient, innovative, and creative. We will continue to learn new methods to make faster, data-driven decisions and achieve cost savings while also maintaining control. That’s thriving in challenging times. Email Sharon Lassar at slassar@du.edu. January/February 2021 | www.cocpa.org

LEADERSHIP NEWS

Watkins to Become Chair

ROBERTS TAPPED FOR VICE CHAIR/CHAIR-ELECT The Nominating Committee, chaired by COCPA immediate past chair Ben Hrouda, CPA, CGMA, presents the following slate for COCPA leadership positions beginning May 1, 2021. The chair and vice chair serve for one year, and the treasurer and directors serve for two years. Watch for the March/April 2021 NewsAccount in which you’ll find biographical information on these nominees.

ongratulations to officer nominees Chair Randy L. Watkins, BDO LLP, Greeley, and Vice Chair/Chair-elect Angela Roberts, Aclivity, Denver. Peter J. Derschang, Leeds West Groups, Greenwood Village, continues as Treasurer. Sharon S. Lassar, University of Denver School of Accountancy, Denver, continues on the Board as immediate past chair. COCPA CEO Mary E. Medley is the Board secretary.

The Nominating Committee presents the following nominees for the Educational Foundation Board of Trustees for a three-year term: Tiffany K. Knight, Kundinger, Corder & Engle, PC, Denver; Judy A. Thomas, Regis University, Denver; and Ronald L. Goodrich, McPherson, Goodrich, Paolucci & Mihelich PC, Pueblo. Nominated to fill a vacancy on the Foundation Board for two years is Lora L. Finley, Littleton.

Directors to begin a two-year term are: Diego J. Baca, EY LLP, Denver; Jim R. Gilbert, Jim Gilbert CPA LLC, Highlands Ranch; and Community Member Amy King, Centura Health, Denver.

Currently serving on the Foundation Board are officers Patrick Lytle, SM Energy Company, Denver, President; Laura Theiss, SingerLewak LLP, Denver, Vice President; Ingrid Stiver, PwC LLP, Denver, Treasurer; Diego J. Baca, EY LLP, Denver, Immediate Past President; Kathleen “KED” Davisson, University of Denver, Denver; Theresa Hilliard, Fort Lewis College, Durango; Lisa Kutcher, Colorado State University, Fort Collins; Alexandra “Alexie” Tune, Deloitte LLP, Denver; and Mary E. Medley, COCPA. Alicia Gelinas serves as executive director of the Foundation.

Continuing on the Board are James N. Brendel, Moss Adams LLP, Denver; Mary-Margaret Henke, Denver; and Kelly A. Kozeliski, Plante Moran LLP, Denver. The Board of Directors thanks for their service the following directors who will complete their terms on April 30, 2021: Community Member Renny Fagan, Colorado Nonprofit Association, Denver; Tobias D. “Toby” Clary, Soukup, Bush & Associates, CPAs, PC, Fort Collins; and Audra Dixon, EY LLP, New York City.

CROSSING BRIDGES SERIES Advancing the State of Diversity, Equity & Inclusion FEBRUARY 10 AND MARCH 10, 2021

COCPA.ORG/CROSSINGBRIDGES 4

NewsAccount | January/February 2021

COLORADO LEGISLATIVE UPDATE

Special Session Focuses on COVID Relief

“

On Nov. 19, 2020, Governor Jared Polis signed Executive Order D 2020 259, Call for the First Extraordinary Session of the Seventy-Second General Assembly, asking the legislature to address seven areas for relief: Small Business Relief; Child Care Support; Housing And Direct Rental Assistance; Increasing Broadband Access; Food Insecurity; Utility Assistance; and Public Health Response.

”

We will act to support our small businesses who face challenging months ahead, provide relief to hardworking people, support child care, and improve broadband access for students and educators. - Gov. Jared Polis

uring the special session, Nov. 30-Dec. 2, legislators passed the following bills and sent them to the Governor for signature. To view the specific legislation, use the Search feature at leg.colorado.gov/bills. SB20B-001 sponsored by Senators Faith Winter and Kevin Priola, sends $57 million in direct aid, grants, and annual fee waivers to struggling small businesses – prioritizing those operating in counties experiencing severe capacity restrictions. It also creates grant programs and allocates funds specifically for art and cultural organizations as well as minority-owned businesses. SB20B-002 sponsored by Senators Julie Gonzales and Chris Holbert, provides $60 million for emergency housing assistance to individuals and households which are in financial need due to COVID-19. Of that funding, $1 million specifically will support the Eviction Legal Assistance Fund, which will help Coloradans stay in their homes this winter. Finally, the bill puts in place a provision that seeks to ensure tens of thousands of unemployed Coloradans can continue to have access to the federally funded State Extended Benefits Program through December 26. SB20B-003 sponsored by Senators Rhonda Fields and Larry Crowder, appropriates $5 million to the Energy Outreach Colorado Low-Income Energy Assistance Fund to provide financial relief to Coloradans who are struggling to pay their utility bills. SB20B-004 sponsored by Senator Dominick Moreno, allocates an additional $100 million to ensure the state can continue to protect public health while waiting for further federal stimulus and reimbursement from the Federal Emergency Management Agency. HB20B-1001, sponsored by Reps. Mary Young and Matt Soper, dedicates $20 million towards increasing Colorado’s broadband capacity – connecting more students to their teachers so that they can learn safely in the months ahead. HB20B-1002, sponsored by Reps. Cathy Kipp and Lois Landgraf, distributes $45 million to enable existing child care providers to keep

their doors open and new providers to open and meet the needs of working parents, especially in child care deserts. These grant programs are estimated to support 2,600 child care facilities, preserving child care for over 100,000 children and creating capacity for tens of thousands more. Research shows that for every dollar spent on early childhood programs, $2.25 is contributed to the Colorado economy. HB20B-1003, sponsored by Reps. Lisa Cutter and Rod Bockenfeld, devotes $5 million to replenishing essential community services that increase access to food for Colorado families facing food insecurity. One in three Coloradans struggles with hunger as more and more families are forced to choose between paying their bills and putting food on the table. Food banks, food pantries, and their partners need the additional assistance to meet the rising demands. HB20B-1004, sponsored by Reps. Alex Valdez and Kevin Van Winkle, allows restaurants, bars, and food trucks to retain state sales tax they collect from November 2020 through February 2021: A qualifying retailer in the alcoholic beverages drinking places industry or in the restaurant and other eating places industry may deduct from state net taxable sales the lesser of state net taxable sales or seventy thousand dollars and retain the resulting sales tax collected for each month in the specified sales tax period. One deduction is allowed per month for each of up to five fixed physical premises that are properly licensed. The special deduction does not apply to any taxes imposed by any state-administered city, county, or special district. Retailers should contact self-collecting home-rule cities regarding any similar programs they may offer. Eligible retailers are required to collect all applicable state and state-administered local sales taxes, file returns on time, and pay all local sales taxes (in addition to state sales taxes in excess of the amount related to the special deduction). For details, instructions, and forms, go to tax.colorado.gov/restaurant-bar-special-sales-tax-deduction.

January/February 2021 | www.cocpa.org

2020 COLORADO ELECTION RESULTS

CPA/PAC Support Makes Its Mark SENATE

6 of the 7 CPA/PAC-supported candidates were elected to the Senate

85.7% success rate HOUSE

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 2020 general election, the CPA/PAC Board contributed $7,400 to 22 Colorado House and Senate races, supporting both Republicans and Democrats. Of the candidates who received contributions, 16 won for an overall success rate of 72.7 percent - with an 85.7 percent success rate in the Senate and a 71.4 percent success rate in the House. Note that financial contributions to legislative candidates are limited by Colorado law. On the Senate side, CPA/PAC supported seven candidates, six of whom won: Joann Ginal (D-District 14); Rachel Zenzinger (D-District 19); Kevin Priola (R-District 25); Jeff Bridges (D-District 26); Janet Buckner (D-District 28); and James Coleman (D-District 33). On the House side, CPA/PAC supported 14 candidates, 10 of whom won: Leslie Herod (D-District 8); Karen McCormick (D-District

NewsAccount | January/February 2021

11); Marc Snyder (D-District 18); Colin Larson (R-District 22); Kerry Tipper (D-District 28); Lindsey Daugherty (D-District 29); Matt Gray (D-District 33); Shannon Bird (D-District 35); Naquetta Ricks (D-District 40); and Jennifer Arndt (D-District 53). In selecting those it supported financially, the CPA/PAC Board considered each candidateâ&#x20AC;&#x2122;s support of business issues; prior involvement with and understanding of the accounting professionâ&#x20AC;&#x2122;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.

10 of the 14 CPA/PAC-supported candidates were elected to the House

71.4% success rate

NOT-FOR-PROFIT REPORTING

CPAs to the Rescue: Right-Sizing Implementation of ASU 2020-07

BY CURTIS KLOTZ, CPA, AND ADAM PYZDROWSKI, CPA

ometimes in our efforts to solve for the needs of large not-for-profit (NFP) institutions and the users of their financial information, the accounting profession may inadvertently layer complexity and a burden of reporting on small to medium NFPs that outweighs the benefit to the public and the users of the financial statements of those smaller entities. ASU 2020-07, Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets, has the potential to be such an instance. For both CPAs and NFP industry professionals, finding a way to right size the implementation of this new ASU should be part of our professional duty to small and mid-sized organizations. First, to be fair to the intent behind this new standard, having access to clear, pertinent information about the most significant revenue and expense items of any NFP is important to both the leadership of the NFP itself and for the readers of its financial information. Nonfinancial assets are a broad category that “includes fixed assets (such as land, buildings, and equipment), use of fixed assets or utilities, materials and supplies, intangible assets, services, and unconditional promises of those assets”

Stakeholders have a legitimate interest in knowing the extent of those nonfinancial assets and how they are deployed. (ASU 2020-07, p 1). Gifts-in-kind, as nonfinancial contributions are often labeled, behave differently than financial assets, require different organizational capacity to raise and manage those assets, and require different strategies to deploy them successfully in service of a NFP’s mission. If nonfinancial assets represent a sizable portion of an entity’s revenue stream, then stakeholders have a legitimate interest in knowing the extent of those nonfinancial assets and how they are deployed. NFP management shares this interest. If nonfinancial assets play a significant role in the business model of an organization, then tracking and reporting them clearly is paramount to good financial management and strategy. CONTINUED ON PAGE 8 January/February 2021 | www.cocpa.org

NOT-FOR-PROFIT REPORTING CONTINUED FROM PAGE 7 The illuminating “Background Information and Basis for Conclusions” section of ASU 2020-07 (pages 20-26) states that the impetus for these changes is to address “concerns” raised by certain unspecified “NFP stakeholders.” While the goal of increased transparency in reporting is the right motivation, the usefulness of these new guidelines may be disproportionately weighted towards the stakeholders of larger and more complex NFP entities – or relevant to smaller NFPs only when the portion of their contributions made up of nonfinancial gifts is material. However, the ASU does not differentiate between NFPs by organization size nor by dollar amount nor by materiality of the nonfinancial transactions to be disclosed. The ASU affects any NFP entity that has transactions involving nonfinancial assets. Given adoption of the standard is required universally, our responsibility as public accountants and industry leaders is to apply this standard appropriately to match the size and complexity of each NFP entity that receives and reports nonfinancial contributions. The ASU offers a thorough set of examples of both quantitative and qualitative disclosures designed to satisfy requirements of the standard. The first step in the reporting is quite straightforward, and we should do our part to help NFPs keep their response simple. List nonfinancial assets recognized as revenue discretely on the face of the financial statements. To comply, NFPs simply list nonfinancial contributions (i.e. gifts-inkind, noncash donations, etc.) as a separate, identifiable line item. Many NFPs of all sizes do this already. FASB has provided a number of examples of various reporting formats that show the ease with which this requirement is met (Formats A-C, p 7-11). It is important to note that a single line item displaying nonfinancial contributions is all that is needed to satisfy the quantitative requirement (see BC15, p 24). Disaggregating these contributions by type is required in the accompanying qualitative disclosure but not on the face of the statements. Also of note, the line item separation of financial from nonfinancial assets does not apply to the expense sections of the affected statements – only to the revenue sections (see BC 16, p 24). This makes sense given that most NFPs deploy noncash contributions in service of their programmatic activities in much the same way as if they had purchased those assets.

NewsAccount | January/February 2021

EXCERPTS FROM ASU 2020-07 – ILLUSTRATIVE FINANCIAL STATEMENTS 958-205-55-13 Format A (a single-column format) is as follows. Not-for-Profit Entity A Statement of Activities Year Ended June 30, 20X1 (in thousands) Changes in net assets without donor restrictions: Revenues and gains: Contributions

$ 8,640

Contributions of cash and other financial assets

$ 6,790

Contributions of nonfinancial assets

$ 1,850

958-205-55-14 Format B (a multicolumn format) is as follows. Not-for-Profit Entity A Statement of Activities Year Ended June 30, 20X1 (in thousands) Revenues, gains, and other support: Without Donor Restrictions

With Donor Restrictions

Total

Contributions

$ 8,640 $ 8,390 $ 17,030

Contributions of cash and other financial assets

$ 6,790 $ 7,430 $ 14,220

Contributions of nonfinancial assets

$ 1,850 $ 960 $ 2,810

958-205-55-16 Format C, Part 2 of 2 is as follows. Not-for-Profit Entity A Statement of Changes in Net Assets Year Ended June 30, 20X1 (in thousands) Net assets without donor restrictions: Total revenues and gains

$ 20,840

Net assets released from restrictions

$ 19,240

Total expenses and losses

$ (32,050)

Increase in net assets without donor restrictions Net assets with donor restrictions: Contributions

$ 8,030

$ 8,390

Contributions of cash and other financial assets

$ 7,430

Contributions of nonfinancial assets

$ 960

The qualitative requirements of the new ASU are where practitioners would serve NFPs best by matching the effort put into the disclosure to the materiality of the nonfinancial assets involved. Striking the right balance between thoroughness and brevity could be a challenge in light of the long list of attributes the new standard requires in the qualitative disclosure. To be most useful to NFPs and stakeholders, we must strive not to over-complicate compliance.

conveying the information laid out in items a through e. It is also here that the ASU spells out that the disclosure requirements “are not prescriptive on how the information should be disclosed…” and in the following pages offers two alternative formats as examples. An NFP has flexibility in displaying and communicating the information as long as the substance of the disclosure meets the minimum requirements of the standard.

financial receipts is consequential, then both the leadership of the NFP and the readers of its financial statements do better when the major drivers of the organization’s business model are apparent. However, reading ASU 2020-07 could give the impression that the thoroughness of the reporting required by the newly issued guidance does not differentiate between a multi-million dollar NFP with half of its

CONTRIBUTED NONFINANCIAL ASSETS For the year ended December 31, 20XX, contributed nonfinancial assets recognized within the statement of activities: Nonfinancial Asset

Revenue Recognized

How Utilized

Donor Restrictions

Valuation Technique

Clothing

$3,500

Community Shelter

No associated restrictions

Thrift store price guides

Children’s books

$2,200

Afterschool program

No associated restrictions

Used bookstore pricing

New to 958-605-50-1A (ASU 2020-07, p 13): “For each category of contributed nonfinancial assets, an NFP also shall disclose the following: a. Qualitative information about whether contributed nonfinancial assets were either monetized or utilized during the reporting period. If utilized, a description of the programs or other activities in which those assets were used shall be disclosed. b. The NFP’s policy (if any) about monetizing rather than utilizing contributed nonfinancial assets. c. A description of any donor-imposed restrictions associated with the contributed nonfinancial assets. d. A description of the valuation techniques and inputs used to arrive at a fair value measure in accordance with paragraph 820-10-50-2(bbb)(1), at initial recognition. e. The principal market (or most advantageous market) used to arrive at a fair value measure if it is a market in which the recipient NFP is prohibited by a donor-imposed restriction from selling or using the contributed nonfinancial assets.” Starting on page 14, the ASU provides implementation guidance and illustrations for

Increasing transparency where it concerns the nature of major revenue and expense categories is key to successful financial strategy for the NFPs themselves and sheds light on the activities of these organizations for those using their financial information. With this flexibility in mind, NFPs that receive just one or two types of nonfinancial assets may choose to convey the necessary details about these in-kind contributions in a concise manner. For smaller entities, or for NFPs of any size that receive nonfinancial assets that are insignificant to their scale, the example above could satisfy the requirements in sections 958-605-50-1A and -1B at a level of detail and thoroughness appropriate to the circumstances. (For illustrative purposes, only one year is presented.) The reasoning behind requiring more transparency regarding the nature and purpose of nonfinancial assets certainly holds if the level of nonfinancial assets received by an organization is significant. Increasing transparency where it concerns the nature of major revenue and expense categories is key to successful financial strategy for the NFPs themselves and sheds light on the activities of these organizations for those using their financial information. If the volume of non-

revenue in the form of nonfinancial assets and a small NFP that may have only an immaterial portion of its revenue arrive in the form of nonfinancial assets. Understanding the ASU well and translating its application appropriately is an opportunity for CPAs to be particularly useful to these smaller entities. Curtis Klotz, CPA, is Director of Nonprofit Innovation with CLA (CliftonLarsonAllen LLP), Minneapolis, Minn. Contact him at Curtis.Klotz@CLAconnect.com. Adam Pyzdrowski, CPA, is a Principal, Nonprofit, with CLA (CliftonLarsonAllen LLP), Englewood, Colo. Contact him at Adam.Pyzdrowski@CLAconnect.com.

January/February 2021 | www.cocpa.org

THE COLORADO ECONOMY

The Pandemic Effect: Highs and Lows for Colorado Industries BY NATALIE ROONEY

Last summer, we spoke with individuals in various industries to learn about the challenges they faced in the early days of the COVID-19 pandemic. Now, as we wind our way into a new year, we circle back to learn about ongoing challenges, what the ski season might bring, and how construction projects have been a bright spot on Colorado’s economic landscape. LEISURE & HOSPITALITY – STRUGGLING TO HOLD ON With COVID-19 vaccines making their way to the public, David Corsun, Ph.D., Director & Associate Professor at the University of Denver’s Fritz Knoebel School of Hospitality Management, says the long-term outlook for Colorado’s leisure and hospitality industry is hopeful, but the restaurant industry, in particular, continues to take the biggest hits. “I think people are now looking at summer 2021 as the potential time of rebound and when things might look more normal as vaccines roll out, but restaurants are wondering if they’ll even make it to summer,” Corsun says. Corsun says he hopes vaccination efforts will enable Governor Polis, mayors, and county officials to relax some of the COVID-19-related rules and protocols. But he emphasizes that it remains to be seen what the outcome will be. “If you believe you have the wherewithal to make it through this very dark tunnel, then the future will be very different, but more normal in terms of potential volume of business.” As cold weather set in during the fall and into winter, Colorado restaurants were look10

ing into options that would allow them to continue offering outdoor dining – whether that was covered and enclosed or with heating elements. “Restaurants really can’t survive at 25 percent capacity,” Corsun says. The hardest hit restaurants are at the higher end of the pricing spectrum. “Their food doesn’t translate as well in a to-go con-

to rebound. “There will be pent-up demand, as those that open up are going to have fewer seats and there will be fewer places to accommodate people,” Corsun says. On the lodging side, Corsun says no one is expecting to see a recovery that resembles 2019 numbers until 2022 at the earliest.

“We are just about the most optimistic industry you’ll find.” tainer,” Corsun says. “Who wants to eat a $50 three-course meal that you have to take home, reheat, and replate? It’s not the same experience.” Success with take-out and delivery is happening at the lower price points. “Restaurants that have done a good job of adjusting their menu offerings, making them conducive to take out and delivery, are killing it,” Corsun says. “That’s going to help them survive.” Restaurants that do make it through to spring and summer will be in a good position

NewsAccount | January/February 2021

COLORADO SKI COUNTRY USA Colorado is home to 25 percent of U.S. skier visits. At Colorado Ski Country USA, a trade association representing 22 of Colorado’s ski resorts, Public Affairs Director Chris Linsmayer says yes, things are in flux. “But we are just about the most optimistic industry you’ll find.” In March 2020, the ski industry was also the first industry in the state to be fully shut down. Linsmayer says the industry has learned a lot since then, not just about COVID-19 and operating in a pandemic, but

are asking people to book online to ensure a good experience.” As of early December 2020, no resorts had released their numbers indicating allowable daily capacity. Linsmayer says skiing and snowboarding have advantages over other activities during the pandemic – resort guests are outside and naturally socially distanced. “Those aspects of the experience are refreshingly the same,” he says. “You’re out skiing and riding and enjoying Colorado’s scenery and fresh air. We’re looking forward to providing that.” As opening days and Thanksgiving approached, Linsmayer says resorts were just like everyone else in the U.S. – worried about the rising number of cases. But everyone has remained committed to following and complying with all local and state restrictions. “We want to have the long and successful season we’re all hoping for,” he says.

also how to thoughtfully prepare for this season. “Many resorts operated over the summer with mountain biking, hiking, food, and lodging,” Linsmayer says. “Several ski areas in the southern hemisphere were also open this summer, and A-Basin was able to open for 12 days in May and June. It was an opportunity to learn how to operate in a pandemic.” Centralized public relations and communications, as well as policy work, have kept Colorado Ski Country USA busy in the run up to the 2021 season. “We have been engaging with the governor’s office, the executive branch, and the Colorado Department of Public Health and Environment (CDPHE) as to what the season will look like for operations and as things on the ground change and develop,” Linsmayer says. The organization worked closely with the resorts and the media to get their messaging out – know before you go, what to expect, and how guests should prepare. Linsmayer says while long-haul travel continues to be down from last year, shorter term bookings made within 30 days seemed to be strong in November. “We saw that last summer and heard the same from our travel partners,” he says. “Many ski areas are requiring skiers to prepurchase, so we want to be sure people who are considering a trip know that they can’t just walk up and buy a ticket. Resorts

CDOT: PREPARING THE MOUNTAIN CORRIDOR ROADS FOR SKIERS As ski resorts were preparing to welcome guests in new ways, the Colorado Department of Transportation (CDOT) was making sure those visitors – who are likely driving rather than flying this year – can get to the resorts. Elise Thatcher, Public Information Officer at CDOT Colorado Northwest, said in the first days of the pandemic, construction crews statewide adjusted to novel coronavirus safety restrictions, which included social distancing and other health safety measures to reduce COVID-19 exposure on the worksite. Safety restrictions were implemented in compliance with CDPHE guidelines for construction activities. Overall, the 2020 construction season continued and wrapped up as planned. On some projects, Thatcher says CDOT crews were able to work more efficiently and safely because there were fewer cars on the road during stay-at-home orders. For other projects, it was harder for crews because of social distancing requirements. In northwest Colorado, projects finished on time or a week or two after originally planned. The Vail east to west project was delayed due to the pandemic. “This did push the completion later than expected - from October 2020 to November 2020,” Thatcher says. “But the project also extended paving farther east on Vail Pass than planned, after the pavement surface deteriorated quickly last spring.”

Legislative changes associated with balancing the state budget resulted in the loss of $100 million in general funds planned for FY ‘21 and FY ‘22. The cuts were absorbed by pushing out some ten-year plan projects into later years of the plan. “Over the course of FY ’20 - FY ‘22, we anticipate the loss of about $116.9 million in Highway Users Tax Fund revenue, primarily through reduced gas tax collections,” Thatcher explains. “We were able to avoid additional cuts to core programs such as asset management and maintenance by tightening our collective belts and utilizing some one-time tools such as refinancing rather than paying off some debt.” When the stay-at-home order was in place in March and April 2020, crews were able to close lanes on the westbound I-70 Mountain Express Lane project during the daytime due to lower traffic volumes. “At the same time, our crews had to adjust to working in a COVID-safe environment, meaning they had to social distance and take extra precautions,” Thatcher says. Over the summer, traffic volumes on the I-70 mountain corridor picked back up to normal levels. During some weekends, the traffic even exceeded last year’s volumes. “Crews worked diligently to get most of the construction done so that the new express lane could open to travel in early 2021,” Thatcher says. Extended lane closures will continue in 2021 to finish the project. Tolls will be waived until late summer/early fall of 2021 once testing is complete and the tolling infrastructure is installed. COLORADO SPRINGS: BOOMTOWN, U.S.A New roads and improved infrastructure gave Colorado Springs a big boost in 2020. Thanks to a $250 million, five-year paving program, the city’s tax receipts and employment survived 2020 admirably, which wasn’t what Corey Farkas, Public Works Operations and Maintenance and Division Manager, was expecting. The Colorado Springs Public Works Department maintains all city infrastructure. As the largest municipality in Colorado, Farkas calls it “a huge job.” From sidewalks to curbs, gutters, roadways, drainage systems, and ponds, Public Works maintains it all. In spring 2020, Public Works was in the fifth year of its 2C Paving Program with 200 lane CONTINUED ON PAGE 12

January/February 2021 | www.cocpa.org

THE COLORADO ECONOMY CONTINUED FROM PAGE 11 miles still to go and the project facing sunset. COVID-19 put a new spin on everything. “We had to get to work immediately, knowing that our sales tax revenue likely would be impacted and not knowing if we’d have to make adjustments,” Farkas says. As folks stayed home, contractors and crews kept working. “We saw an increase in productivity during that time because there were fewer cars on the road,” Farkas says. But they faced an unknown factor. As they tracked revenue from month to month, would there be a drop that would stop the project? They discovered an interesting phenomenon: March and April showed a small tax revenue drop. May brought another slight drop, but people were starting to get out again.

cies. They invoiced us and were paid more quickly, which opened up more work to be done because it’s all task order based. Contractors could finish a job and start another one more quickly which enabled us to speed up work out in the field.” DENVER PROJECTS INFUSE MONEY AND JOBS INTO LOCAL ECONOMY The City and County of Denver has been accelerating multiple projects during the pandemic. Laura Perry, Director of Capital Planning and Programming in the Department of Finance, says they are working to finalize a $170 million bond issuance. It is the fourth issuance of the city’s $972 million voter-approved General Obligation bond program for: • Transportation & Mobility

In June, the budget and finance team came to Farkas with new numbers. He couldn’t believe it. “We saw a year over year increase from June 2019,” he says. “It was small, but it was an increase.” The increases grew steadily through October. Initially, the city had projected a $12 million drop in revenue for 2020 as a result of the pandemic. Now, thanks to the sales tax on construction materials and online purchases, the city estimates it will end the year just $1 million below its original projections, even after experiencing a $2 million drop in the early days of the pandemic. “We gained ground on the backend,” Farkas says. “If the trends continued, and depending on how the holidays played out, we may even breakeven.” While the pandemic threw Colorado Springs Public Works some curveballs, the team had to adapt and keep going. To mitigate risk, inspectors stayed out of the office and worked from home when possible, taking their trucks home at night, and going straight to the field each day. Even though many contractors are notoriously “old school” and still wanted to write checks, they were open to retraining, which Farkas says initially took a lot of resources. Now, after experiencing new efficiencies through electronic transactions, contractors are seeing the light. “The efficiencies we’ve found through this have been remarkable,” Farkas says. “We’ve stayed open and even increased productivity. We talk to our folks about leadership and management and thinking outside the box, but you don’t know how things will go until you’re forced into a situation. Holding our contractors by the hand and walking them through the process created efficien12

• Cultural Facilities • Denver Health & Hospital Authority • Parks & Recreation • Libraries • Public Safety • Public Facilities An economic model conducted by Denver’s Department of Finance forecasts a $3.8 billion impact on the regional economy from the fourth issuance, including direct effects to jobs and businesses, as well as indirect and induced effects down the supply chain. “We had originally planned a $77 million issuance in 2020 but accelerated it to $170 million to push more funds out into the economy and create thousands more job opportunities both for folks in the industry and for residents who are out of work and looking for an opportunity to learn a new trade,” says Julie Smith, Communications Director in the Department of Finance. “It also has supported jobs and opportunities for hundreds of local businesses, including many small and minority- and women-owned businesses.” Although the timing of the pandemic was coincidental and an issuance was already planned for 2020, Perry says it provided a great opportunity to take a hard look at what could be done to support a robust recovery for the city, pushing a larger amount of dollars out in an effort to stimulate economic activity in the region. “We saw this as a strong stimulus for the economy, construction, and supporting the protection and provision of jobs across the city.” The 16th Street Mall project is anticipated to have a potential $3.7 billion impact on

NewsAccount | January/February 2021

the region, taking into account anticipated induced activity. “When you consider more dollars going into the economy, more money to workers, and more jobs, they in turn stimulate economic activity,” Perry says. Projects are on pace despite the pandemic, and the city continues to monitor supply chain issues. “We’re capitalizing on opportunities to accelerate and move things along,” Smith says. As the economy improves, Perry says there’s a big focus on capital investment. “The metrics we’ve calculated show that for every $1 million we spend $2 million in economic impact is generated.” In addition, every $1 million spent on construction results in the provision of 13 jobs.

“For every $1 million we spend, $2 million in economic impact is generated.” Last November, the city announced that it had secured a AAA rating with all three ratings agencies. “When we do go to market, we get a more favorable interest rate, and as a city, we can put more dollars toward a project,” Perry says. “We worked very hard to retain reserves, consistently monitor revenue, and make appropriate shifts when needed. We’re thrilled to see our hard work during COVID and the uncertainty brought forward in terms of revenue. The ratings agencies found we had strong practices and responded to that.” COLORADO STILL A GREAT PLACE TO BUILD Construction was deemed essential during the pandemic, and the industry continued to operate as state and county regulations permitted. Michael Gifford, President of Associated General Contractors of Colorado, says from the outset, the association was busy just trying to keep the state updated on the “level” status of every county in the state. In the early days, a best practices task force created operating protocols as it became apparent that COVID safety plans were far different from a regular safety plan. “Companies needed to know their target in case

of inspections, and contractors, inspectors, and employees wanted to know they were walking onto a safe site,” Gifford says. “We focused on keeping our members updated on the rules while collaborating with health departments to show we had a rock-solid plan.” While construction has continued throughout the state, Gifford says what you’re seeing is less a result of new starts and more due to the completion of projects started three years ago when record levels of constructions starts were achieved. For 2020, new project starts were down 32 percent overall, with the biggest drop in Denver. But parts of the state are seeing a boom. Colorado Springs construction starts are up 230 percent thanks to the four City for Champions projects which include the:

• Air Force Academy Visitor Center

ing still can’t keep up. Gifford says a drop off of such a high level isn’t a bad place for the construction industry to be, considering the events of 2020.

• Sports and Event Center • UCCS Sports Medicine Center • United States Olympic Museum and Hall of Fame Gifford also cites Colorado Springs’ plan to invest in its infrastructure. “Companies want to invest in cities where votes approve infrastructure improvements,” he says. In Fort Collins, commercial construction starts were up 45 percent in 2020. Residential construction in all three areas – Denver, Fort Collins, and Colorado Springs – are about even. “We’re about 50,000 housing units short in the Denver Metro areas, and COVID hasn’t slowed down that construction,” Gifford says.

Construction employment was at 182,000 employees in January 2020. As of October, the number had dropped to 173,000. “We’ve only lost five percent. We’ll take that in this uncertain environment,” Gifford says. Further slowing is forecast as we roll into 2021, but it’s expected things will improve. “COVID is just delaying what’s on the other side,” Gifford predicts. “There will be a boom once restaurants and hotels open and society can come out of its shell. Demand is here. Companies are still moving here. We’re still a good bet here in Colorado.”

While net migration into Colorado has slowed from 50,000-60,000 to 30,000, hous-

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THE NATIONAL DEBT

Who Pays the Bill? Stimulus Dollars and The National Debt BY NATALIE ROONEY

NewsAccount | January/February 2021

The U.S. national debt is growing at an unimaginable rate, says Sheila Weinberg, CPA, founder and CEO of Truth in Accounting, an organization whose mission is to compel governments to produce financial reports that are understandable, reliable, transparent, and correct.

urrently, the U.S. national debt is reported as $27.3 trillion. “When I got into this game, we were upset when the annual deficits were $200 billion to $300 billion,” Weinberg says. “Now we are experiencing monthly deficits greater than $300 billion.” Truth in Accounting actually had to recalibrate the debt clock on its website to spin faster. The U.S. national debt is the highest it has ever been in absolute dollars, but as a percentage of GDP, 1946 takes top prize when the debt was 106 percent of GDP. In 2019, the debt was 79 percent of GDP. But, Weinberg says, the really scary thing about the national debt is that $27.3 trillion isn’t the whole story – not by a long shot. Federal accounting standards, which differ greatly from FASB and GASB, don’t require the federal government to show its unfunded obligations – namely Social Security and Medicare. When those obligations are included, the U.S. debt is more than $107 trillion. TREADING WATER In 2019, the interest alone on the U.S. debt was $404 billion. To put it in perspective, that’s half the amount the U.S. spends on defense, more than three times what we spend on education, six times more than what is spent on homeland security, seven times more than what we spend on energy, and three times more than agriculture spending. The largest programs in the mandatory spending category — Social Security, Medicare, and interest on the national debt — are all in some form of unsustainable crisis. In 2020, trustees from the Social Security and Medicare funds reported they will begin tapping into reserves to meet spending requirements. The trustees indicate that the Medicare fund will run out of dollars in 2026. Social Security is in slightly better shape and will be solvent until 2034. After that, the federal government will have to find other means to fund those programs or apply harsh cuts to benefits. “Americans are paying taxes just to pay the interest on the national debt,” Weinberg says. “Our debt just keeps rolling over. We’ll continue to pay more interest rather than our taxes going toward any government services or benefits.” Weinberg adds that some lenders the U.S. borrows from might not have the U.S.’ best interests at heart. As of August 2020, foreign countries owned more than 30 percent of U.S. debt. Japan and China are currently our two biggest lenders. It puts America in a precarious position. “We’re at their mercy if they want to call in our debt,” Weinberg explains. “But they continue to lend to us because we’re actually the best of the worst. We’re still the most secure place to put their money.” The pandemic stimulus payments jacked up the projected 2020 deficit by more than $3 trillion. “Congress felt it had to throw money at the problem,” Weinberg says. “And if the U.S. hadn’t had the capacity to borrow that money, the budget would have had to have been cut dramatically.”

THE TIPPING POINT Greg Anton, CPA, CGMA, partner at BDO’s Denver office and a past AICPA Chair, has worked for years to educate Americans about the national debt through his “What’s at Stake” videos and presentations. He walks people through the U.S. government’s financial statements – what’s in them, and more notably, what’s not in them. “Most people don’t realize social insurance obligations aren’t reflected as liabilities on the U.S. government’s financial statements,” Anton says. “When they hear about it, they want to understand it.” To help them comprehend the magnitude of the debt, Anton compares U.S. liabilities and obligations to U.S. household net worth. As of Sept. 30, 2019, the U.S. government’s liabilities and social insurance totaled $107 trillion. The net worth of U.S. households was $114 trillion. “You think you have built net worth with your 401(k) and savings. But if we allocated the national debt to every citizen, including the very wealthy, we’d have a net worth of zero because the country’s obligations are almost equal to the net worth of all its citizens,” Anton says. “That’s how I put it in perspective.” WHEN AND WHERE WILL IT END? Weinberg says she fears that like the mortgage lending crash that led to 2008’s Great Recession, something may be brewing. “Things will go along fine until they won’t,” she says. “There are a lot of doomsday scenarios out there.” Those scenarios include: • Borrowing more and more until the budget is eaten up by interest. The country can’t pay for services and benefits. People become unhappy, and then they riot. • We inflate our way out. Inflation happens, and everything becomes more expensive. Even though you are getting a Social Security check, it’s eaten up by basic needs like rent, mortgage, and food because the money isn’t worth what it was when you started saving. Weinberg emphasizes that the problems our national debt present aren’t problems somewhere down the road. “We’re taking hits now,” she says. “We’re paying all this interest, and we’re not holding our elected officials accountable. This isn’t about the next generation. Senior citizens right now may not receive what they were expecting.” It all comes back to the issue of reporting $27.3 trillion in debt and not including the promises of Social Security and Medicare. “People should understand those have been promised, and there’s no revenue stream that will pay them,” Weinberg explains. CREATING A PATH FORWARD Anton says the U.S. can take steps right now to start chipping away at the national debt. It begins with balancing the budget – increasing revenue, decreasing spending, and then creating a surplus CONTINUED ON PAGE 16 January/February 2021 | www.cocpa.org

THE NATIONAL DEBT CONTINUED FROM PAGE 15 for decades to pay for what hasn’t been paid for in the past. “It’s a balancing act,” Anton says. “Otherwise you inhibit economic growth.” Additional steps include the following.

to take on the next generation of jobs so they are income earners and pay taxes.”

Evaluate the labor force participation rate and re-educate workers.

In 2019, tax receipts from corporations were higher than over the last three to four years even though the corporate tax rate itself was reduced. “That may seem counterintuitive, but now we have a corporate tax rate that’s competitive with other OECD (Organisation for Economic Cooperation and Development) countries,” Anton explains. “As a result, businesses are more willing to build their corporate headquarters in the U.S.”

The labor force participation rate indicates the percentage of all people of working age who are employed or are actively seeking work. In the U.S., the labor participation rate has held steady around 63 percent since 2013, but it varies over time based on social, demographic, and economic trends. The rate hasn’t been better than 66 percent in the past two decades. It stood at 61.7 percent for October 2020. “Even with the impact of COVID-19 on certain industries, there are jobs out there, but individuals aren’t always adequately trained for them,” Anton says. “It’s one reason we have systemic unemployment. When individuals earn money and pay taxes, they’re replenishing BY NATALIE ROONEY revenue streams. If individuals want a job but don’t have one, they’re not earning or paying taxes and are generally a recipient of federal or state government programs. One step would be to get people into the workforce, train them, and give them opportunities.” For every dollar our country collects, 80 cents come from individual taxes and payroll taxes. “It’s hard to tax an individual and have payroll tax receipts if they’re not working,” Anton emphasizes, adding that early education plays a huge factor in improving the labor force participation rate. “Studies show high school graduation rates are low for individuals who don’t read at the third-grade level when they’re in the third grade. In order to graduate, go to trade school or college, and have a full-time job that is sustainable, we need to train our citizens

Create sustainable regulation and policy.

At the same time, there is a need for certainty around policies and regulations. “Uncertainty shuts things down,” Anton says. “If we create more certainty with known corporate tax and regulatory policies, businesses can make plans and execute them.”

Fix the tax gap.

The U.S. tax system is still largely paper-based which does nothing to mitigate taxpayers’ underpayment, underreporting, or not filing at all. Those underreported and unreported taxes make up a significant number that could improve incoming revenue. In the latest estimates, calculated in 2019, the IRS said the average gross tax gap was $441 billion per year for 2011, 2012, and 2013. After late payments and enforcement efforts were factored in, the net tax gap was estimated at $381 billion.

Evaluate all government programs.

If a government program is intended to have an ROI, it should be evaluated to determine whether the goal is being met, Anton suggests. If a program is not intended to have an ROI, it still should be evaluated to determine whether it is fulfilling the need and delivering what it is programmed to do. All government programs should have a mandated sunset review every five to ten years.

Other ideas to consider and debate:

• Raise the social security age and index for life expectancy, need based. • Cap Medicare and Medicaid on total benefits, need based. • Pay down debt before interest rates increase.

EDUCATING VOTERS Weinberg says, bottom line, citizens don’t have the financial information they need to make knowledgeable decisions on promoting tax or spending policies or even who to vote for because they don’t know the true national debt. The same can be said at the state level.

FUN WITH DATA! If you’re looking for some stay-at-home-because-of-COVID19-fun, check out data-z.org where you can run reports by state and 75 different cities to view their fiscal health. As of January 2020, Denver had earned a D for its Taxpayer Burden of $6,500. The report states that Denver’s elected officials have made repeated financial decisions that have left the city with a debt burden of $1.7 billion, mostly stemming from unfunded retirement obligations that have accumulated over the years. Weinberg says an interesting trend emerges from all of this analysis: The more lawyers in a state, the worse financial shape it’s usually in.

NewsAccount | January/February 2021

“People go into the voting booth thinking their state budgets are balanced, but that’s only done by borrowing money, and legislators don’t admit that. Everyone assumes the state is living within its means,” Weinberg says. “If states truly had to balance their budgets, they’d have to cut services or raise taxes. No one is going to be re-elected with a campaign slogan like that. So in the end, these practices hurt our form of representative government because people don’t have the information they need to understand who to vote for.” Anton says it’s time to create policies that enhance revenue to the country and reduce expenditures that eat into the debt obligation over the next century. “This isn’t going to happen next year or even in ten years,” he says. “But we’ve got to change the trajectory of the debt and social insurance obligations.”

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DIVERSITY, EQUITY & INCLUSION STRATEGIES

Deloitte Doubles Down on DE&I Initiatives BY NATALIE ROONEY

For more than two decades, Deloitte LLP has been viewed as progressive for its diversity, equity, and inclusion efforts. The firm believes that inclusivity and diversity are two of its greatest competitive strengths. Deloitte’s Denver office is committed to reinforcing the firm’s commitment to creating a culture where everyone has an equal opportunity to grow, develop, succeed, and be their truest selves. GLOBAL EFFORT, LOCAL IMPACT Deloitte’s diversity, equity, and inclusion (DE&I) programs aren’t something that began simply as a response to the social unrest of 2020, says Chris Schmidt, CPA, Managing Partner of the firm’s Denver office. “Our diversity work has been going on for a long time, and our efforts and leadership are infused at every level in the firm.” In 1993, Deloitte became the first professional services organization to establish a women’s initiative and a diversity initiative. And, there is a demonstrated commitment to DE&I from the top. Not only are DE&I leaders named for the international and national practices, but also there is a DE&I leader for each of the firm’s four businesses (Consulting, Audit & Assurance, Tax, and Risk Financial Advisory). Within each office there are local DE&I leaders. 18

“Our diversity work has been going on for a long time, and our efforts and leadership are infused at every level in the firm.” Over the last nine months, the firm as a whole has been reassessing its efforts. “We’re asking ourselves hard questions. Are we doing enough? Are we leaning in?” Schmidt says. “We know we can do more.” Last summer, Deloitte publicly responded to systemic racism in the U.S. by creating the Black Action Council to better enable Black professionals to be successful and to focus more broadly on DE&I initiatives. The council is sponsored and led by senior firm leaders and consists of more than 50 profes-

NewsAccount | January/February 2021

sionals – more than 50 percent are Black and more than 50 percent are women. The firm also is investing heavily in the communities where employees want to give their own time and financial support. To that end, Deloitte donated $5 million plus the opportunity to match up to another $5 million to support employees who want to donate to organizations such as the ACLU, Black Girls Code, and the Just Imperative. “We’re proud of this initiative,” Schmidt says. “We’re working to enhance the connections

for team members. “The sessions initially provided a forum for Black employees to voice what it’s like for them to be Black in America,” Schmidt says. “There were things people learned from their peers during these gatherings that they would have never understood.” Although the conversations aren’t easy, the outcomes benefited everyone and raised awareness “Having these sessions run by the Inclusion Council at the local level generated more understanding,” Schmidt says. “The sessions continue to evolve in focus and have generated a safe place for employees to talk, learn, and most importantly grow.

of our Black professionals within the Deloitte community.” In another inclusion initiative, every Deloitte team member recently was given the opportunity to update their information in the firm’s HR system, confirming and affirming the ways they would like to be identified. This included expanded options for gender identity, race, and sexual orientation. “It was optional, but the response was phenomenal,” Schmidt says. LOCAL INCLUSION COUNCILS Deloitte’s Denver office, like its counterparts across the country, has an Inclusion Council. A diverse group, it brings together team members from different areas of the firm’s business, backgrounds, and experiences. The council engages in, and plans, activities and events related to inclusion, well-being, development, and community involvement. By connecting across communities and around shared interests, the inclusion council helps people discover common ground and strengthen support for one another. In Denver, the inclusion council is made up of employee volunteers representing a variety of groups including Asian Pacific, LGBTQ+, Black, Hispanic/Latinx professionals, military veterans, women, and women in technology. “This diverse group helps us decide what we want to do locally to strengthen our inclusive culture,” Schmidt says. “That might include decisions about where we want to volunteer or what activities we want to take part in whether that’s a presence at the Gay Pride Parade and what we’ll do for Pride Month or how we celebrate Hispanic Heritage Month and Black History Month. The Inclusion Council organizes all of those things.” One critical activity for the Denver Inclusion Council has been hosting listening sessions

“The evolving workforce is looking for opportunities and choices for how to connect in ways that are most authentic to them – our Inclusion Councils provide those options. These local office groups bring together people from different parts of our business, backgrounds, and experiences. They help our people connect with

Some of the new schools Schmidt has contacted have a racially/ethnically diverse population more than three times that of the traditional target schools.

FILLING THE RECRUITING PIPELINE Schmidt says one of the best ways to continue to improve diversity is through Deloitte’s very active campus recruiting program. Over the past six months, despite the pandemic, the firm has become much bolder with its campus outreach. “In Colorado, we decided to take a fresh look beyond our traditional target schools,” he says. Typically, the recruiting process faces personnel and budget constraints that restrict the number of schools that can be visited each year for in-person recruiting. But the pandemic changed all of that. With a new emphasis on and acceptance of virtual events and interviews, Schmidt says he now is working with more schools that are farther afield than recruiting teams would normally travel. While it will take some time to develop these relationships, he is excited about attracting a more diverse pool of candidates. Some of the new schools he has contacted have a racially/ethnically diverse population more than three times that of the traditional target schools. It’s a win-win for the firm and students. WORKING FOR DIVERSITY AND PARITY The numbers of women and racially/ethnically diverse people in leadership positions is shifting, Schmidt says. In recent years more Deloitte Denver offers were made to women. “We need diversity, and we need parity,” Schmidt says. “I spend a lot of my time on these topics.”

other groups in their office or elsewhere in the organization, such as business resource groups, athletic teams, etc. “We also provide ways to connect with those who share similar backgrounds and attributes through our Business Resource Groups, including the Black Employee Network; Hispanic Network; GLOBE, which is Deloitte Australia’s gay, lesbian, bisexual, transgender, intersex (LGBTI+) leadership forum and member community; Armed Forces Business Resource Group; Asian Business Resource Group; International Business Resource Group; Abilities First Business Resource Group; and Women’s Initiative.”

Schmidt emphasizes that DE&I isn’t a big or small company thing. “It’s about having the conversation and being clear that we want diversity in gender and race,” he says. “It’s good for your organization and how you approach and solve problems. If everyone looks the same, your thinking will mirror that.” Schmidt points to countless studies that have proven that diversity outperforms non-diversity every time. “Your recruiting process should reflect that thinking. Don’t just stop when you have thirty resumes from males,” he says. “Keep the process going, live without a role being filled until you have a more diverse pool. Any size organization can adopt and benefit from waiting for the right candidate pool.”

January/February 2021 | www.cocpa.org

STATE OF THE PROFESSION

Quick Pulse Survey 2 Says: Disruption and Uncertainty Continue BY AVENUE M GROUP

This report is the second in a series of benchmarking collaboratives conducted by Avenue M Group (Avenue M) on behalf of state CPA societies. At the end of April through early May 2020, 18 CPA societies took part in the first round of a COVID-19 Quick Pulse Survey. Fourteen participated in a second round of the survey which was fielded from the end of August through mid-September 2020. The following report is an analysis of the continued impact of COVID-19 on the CPA profession based on the data collected from these surveys.

s the COVID-19 pandemic continues to have a significant impact on CPAsâ&#x20AC;&#x2122; professional and personal lives, Avenue M Group launched a second sentiment survey in September 2020 on behalf of COCPA to reassess the concerns and challenges facing its members. The responses came from partners, shareholders, sole practitioners, C-Suite executives, staff members, controllers, corporate accounting and finance professionals, and government employees.

adapting in response. The overwhelming sentiment shared by 93% of respondents was that COVID-19 has been disruptive to their organization. This is down 2% from the first survey (95%). More specifically, just 3% shared that COVID-19 has continued to cause complete disruption to their work. Seventeen percent of COCPA respondents report a reduction in staff. This number is up 4% from the first survey (13%). In May 2020, 18% of COCPA CPAs expected the financial impact of COVID-19 to last six

93%

Optimism regarding the length of the disruption among COCPA CPAs who work in business and industry/corporate finance is tempered, with 42% anticipating it may take between 13â&#x20AC;&#x201C;24 months (32%) to over two years (10%) before their work returns to preCOVID-19 levels. Opinions on what resources would be most helpful to firms, companies, and organizations continues to vary based on specialty, sector, and position. At the time the first survey was launched, many CPAs had an

of COCPA CPAs shared that the COVID-19 pandemic has been disruptive to their firm, organization, or company. This is down 2% from May 2020.

According to the nearly 400 members who responded to the second survey, 92% believe COCPA has met or exceeded expectations during the pandemic. This statistic is one percent higher than it was for the first survey (91%). Less than 1% stated the organization has not met expectations at all. The impact of COVID-19 on businesses in the United States is evolving on a constant basis, and organizations are continuously

months or less, while 19% stated it could be as long as 13 to 24 months. Presently, 9% of respondents believe their business will be impacted for 6 months or less (9% decrease), 22% think their business will be impacted for 13 to 24 months (3% increase), and 10% expect the impact to last for over two years (1% increase). The COCPA data is similar to the benchmark average for all 14 societies (11%, 23%, and 8%, respectively).

NewsAccount | January/February 2021

urgent need for updates on accounting and financial reporting considerations related to COVID-19 (43%). The data for the second survey points to a similar need for these types of updates (41%). However, back in May, many identified a need for guidance for advising clients on small business loans and other federal relief programs (46%). The need for these types of resources dropped to 36% during the fielding of the second survey.

ROUND 1 WHAT ARE YOUR MOST PRESSING CONCERNS?

PUBLIC BUSINESS & INDUSTRY/ ACCOUNTING CORPORATE FINANCE

NOT-FOR-PROFIT ORGANIZATION

CONSULTING/ EDUCATION/ ADVISORY ACADEMIA

Ensuring the continued health and safety of our employees

46%

64%

53%

26%

58%

Losing clients/revenue due to business closures

52%

32%

28%

39%

33%*

Keeping a work/life balance

37%

48%

38%

30%

33%*

Helping clients/employer meet government deadlines

46%

12%

9%*

8%*

Reevaluating our budget and business plan to ensure long-term stability

21%

50%

66%

17%*

58%

Handling stress related to a personal situation and/or family needs

28%

38%

19%

35%

33%*

Collecting tax information from clients

34%

2%*

0%*

4%*

0%*

Servicing clients or customers when there are travel restrictions

20%

14%

16%

13%*

0%*

Staying employed/keeping my job

14%

36%

16%

13%*

33%*

Laying off or furloughing staff due to a drop in business

10%

12%

28%

4%*

33%*

Conducting audits when agencies, organizations and institutions remain closed

13%

3%*

0%*

4%*

0%*

345

104

*Fewer than 5 respondents

ROUND 2 WHAT ARE YOUR MOST PRESSING CONCERNS?

PUBLIC BUSINESS & INDUSTRY/ ACCOUNTING CORPORATE FINANCE

NOT-FOR-PROFIT CONSULTING/ EDUCATION/ ORGANIZATION ADVISORY ACADEMIA

Ensuring the continued health and safety of our employees

44%

49%

52%

32%

100%

Keeping work/life balance

53%

49%

67%

32%

67%*

Navigating PPP/SBA and evolving changes in law

54%

24%

21%*

0%*

Maintaining connection and company culture while working from home

36%

51%

38%

16%*

67%*

Losing clients/revenue due to business closures

36%

27%

19%*

16%*

50%*

Handling stress related to a personal situation and/or family needs

33%

48%

21%*

83%

Helping clients/employer meet government deadlines

38%

0%*

11%*

0%*

Reevaluating our budget and business plan to ensure long-term stability

16%

41%

57%

21%*

83%

Collecting tax information from clients

28%

5%*

0%*

Servicing clients or customers when there are travel restrictions

14%

16%

5%*

32%

17%*

Staying employed/keeping my job

35%

14%*

11%*

50%*

Conducting audits when agencies, organizations, and institutions remain closed

12%

3%*

0%*

Laying off or furloughing staff due to a drop in business

22%

14%*

5%*

17%*

227

*Fewer than 5 respondents +Additional response options were added to this question in Survey 2 based on frequency of open-end responses from Survey 1

CONTINUED ON PAGE 22

January/February 2021 | www.cocpa.org

STATE OF THE PROFESSION CONTINUED FROM PAGE 21 Additionally, the need for guidance/tips for organizations facing a cash flow crisis dropped by 9% (25% and 16%, respectively). Similar to the first survey, respondents indicate that COCPA can be most helpful over the next six months by providing complimentary access to on demand webinars on current topics and live webinars with Q&A. While in May 2020 many CPAs were looking to COCPA to provide guidance on compliance with new government relief programs, the need for this service has dropped by 13% (61% and 48%, respectively). EMPLOYEES Previously, it was reported that 40% percent of COCPA members were experiencing reduced staff at the physical office, and 22% moved to an entirely remote workforce. Currently, 33% of respondents indicate that there is reduced staff in the physical office, and the majority of employees are still telecommuting. Sixteen percent of members responded that while most employees were telecommuting previously, the majority have now returned to the office. Overall, the percentage of respondents reporting staff reductions has increased 4% from the initial study (13% and 17%, respectively). Nearly two-fifths (37%) of those in the business and industry/corporate finance sector report staff reductions have occurred. Other impacts on COCPA CPAs include (verbatim responses): • Lost staff and hard to find experienced staff • Increased work hours FINANCIAL In the second survey, 32% of COCPA CPAs reported concern over losing revenue due to business closures. This shows an improvement compared to the first survey where over two-fifths (44%) of COCPA CPAs reported the same concern. Other financial concerns expressed by CPAs include: • No new incoming business and current small business clients’ businesses are failing therefore cannot afford (or haven’t paid) for bookkeeping services • Maintaining business amidst supply chain slow down concerns PERSONAL The ability to maintain work/life balance was cited as a challenge for 53% of all COCPA respondents. This is up 13% from the initial survey. Staff members (73%) are more likely than CPAs in other positions, such as sole practitioners (49%) or directors/man22

agers (58%), to indicate keeping work/life balance is a top concern. Overall, over onethird (34%) of COCPA CPAs are concerned with handling stress related to a personal situation and/or family needs (up 3%). Other concerns expressed by CPAs include: • Part time staff stayed home to homeschool kids • The mental health of dealing with the pandemic realities COCPA members’ most pressing concerns and challenges surrounding COVID-19 continue to vary based on their business sector. Concerns over maintaining work/life balance have increased or remained a constant concern for all members, but these concerns are most prevalent for those working in the

tive to their workplace. Nearly half (48%) of COCPA respondents who are sole practitioners have found COVID-19 to be somewhat disruptive (37%) or not at all disruptive (11%) to their business. COCPA members (8%) are slightly more likely than the aggregate group average (7%) to indicate COVID 19 has greatly decreased their business operations. Overall, the percentage of COCPA members indicating the pandemic has greatly decreased business operations dropped by roughly 3% since the first survey was fielded in May 2020. One-third of COCPA respondents who work for a not-for-profit, and 22% of those who work in the business and industry/corporate finance sector indicate business has greatly

COCPA members’ most pressing concerns and challenges surrounding COVID-19 continue to vary based on their business sector. not-for-profit sector (up 29% from survey 1). In the first round of the survey, those working in public accounting indicated their most pressing concern was losing clients/revenue due to business closures (52%). This number dropped by 16%, down to 36%. In the second round of the survey, the same audience indicated their most pressing concern now is navigating PPP/SBA and evolving changes in law (54%). Three percent of COCPA members continue to experience complete disruption to their work due to COVID-19. This is lower than the previous survey response rate (6%). The average for COCPA is the same as the benchmark average (3%) for the 14 societies that participated in the second survey. Overall, the level of disruption has decreased since the first survey was administered in spring 2020. Over two-fifths (43%) of individuals who work in the not-for-profit sector indicate COVID-19 has been extremely disrup-

NewsAccount | January/February 2021

decreased due to COVID-19. One-quarter of those working in the public accounting sector noted that their business has moderately (21%) or greatly (4%) increased during COVID-19. Avenue M Group, LLC, avenuem.org, with offices in Chicago, New York, and Denver, is a full-service market research and consulting agency with in-depth expertise in examining why individuals believe in brands, organizations, and missions.

HUMAN RESOURCES

Mental Health in the Workplace Making a Difference in Suicide Prevention and Awareness BY LISA HACKARD, CPA

This article is the fourth in a series addressing mental health in the workplace. In the July/August 2020 NewsAccount, Lisa Hackard shared her story and the events that led her to become a passionate promoter of mental health. In the September/October NewsAccount, she discussed mental health as a foundation for achievement. In this article, Lisa shares common questions about suicide awareness and prevention with mental health professional Alex Yannacone, MA, from the Helen and Arthur E. Johnson Depression Center at the University of Colorado Anschutz Medical Campus.

ne out of every five people experiences a mental illness in a given year, according to research conducted by the Centers for Disease Control and Prevention (CDC). As the global pandemic persists, feelings of loneliness and isolation are increasing for many, along with extended working hours and caring for ill relatives—all of which can contribute to declines in mental health.

In this article, Alex Yannacone, MA, from the Helen and Arthur E. Johnson Depression Center at the University of Colorado Anschutz Medical Campus, answers some common questions on suicide to help reduce the stigma on this topic, which often results in feelings of discomfort—particularly in the workplace. She shares some compelling statistics and research results, along with pragmatic tips to raise awareness and help individuals support each other.

HOW PREVALENT IS SUICIDE? Research shows that mental health conditions, similar to physical health conditions, impact all of us to some degree regardless of our profession. As these statistics from the American Foundation on Suicide Prevention show, many of us have been or will be impacted during our lifetime. • 132 people die by suicide each day in the U.S. CONTINUED ON PAGE 24

January/February 2021 | www.cocpa.org

HUMAN RESOURCES CONTINUED FROM PAGE 23 • Colorado ranks 7th in the nation for the highest incidence of suicide. • Suicide is the 10th leading cause of death. • Men die by suicide at 3.5 times the rate of women. • Highest rates of suicide occur in adults between 45-54 years old. • Rates of suicides are highest in whites, American Indians, and Alaska natives. • LGBTQ individuals have higher rates of suicide attempts and deaths.

WHAT CAN I DO TO HELP? Following are some pragmatic steps we all can take to help with suicide awareness and prevention.

Step 4: Refer. Understand and have access to resources at work and in your community. Employee assistance programs and crisis lines are great options.

Step 1: Understand and recognize risk factors and warning signs.

Examples: “I know the number to our employee assistance program. I think it would be helpful to call them together to figure out how to get you support. Can we do that now?” “We could call the Colorado Crisis Line to talk to a professional. Would it be helpful to use my phone or yours?”

Step 2: If you have any concerns, reach out and ask direct questions. Know the value of directness and open-ended questions, while allowing proper space and time for the conversation. Examples: “Are you thinking about suicide?” “Are you struggling right now?” “Do you feel like you’re struggling so much you’ve been thinking about suicide?” “I’ve noticed you have been isolating yourself and you have said some pretty concerning things, so I’m wondering if you’ve been thinking about suicide?”

• 48,000 people die by suicide every year in the U.S., and 10 million people consider it. While these statistics can be concerning, research shows that when we know what risk factors and warning signs to look for and understand what resources are available, each of us can make a difference in suicide awareness and prevention, with a focus on resiliency and recovery. WHAT RISK FACTORS OR WARNING SIGNS SHOULD WE BE AWARE OF? There are some common characteristics and conditions that may increase suicide risk, according to the National Alliance of Mental Health (NAMI).

Step 3: Listen and be supportive. Be present and give full attention. Show empathy and express gratitude for their openness. Example: “Thank you for telling me. Let us figure out how we can get you the help you deserve. I care about you, and I’m here to support you.”

A few years ago, I completed a training course in suicide awareness and prevention, now offered by the Johnson Depression

If you have any concerns, reach out and ask direct questions.

Risk Factors

WILL ASKING DIRECTLY ABOUT SUICIDE GIVE SOMEONE AN IDEA THEY MAY NOT HAVE PREVIOUSLY HAD? No. Research shows that asking someone directly about suicidal intent lowers anxiety, opens up communication, and lowers the risk of an impulsive act. Suicide can be prevented if we know what to look for and take positive actions that will make a difference. This is my story:

Warning Signs

(Characteristics and Conditions)

(Change in Behavior or Entirely New Behavior)

Health

Talk

Mental health conditions, serious physical health conditions, traumatic brain injury

Feeling hopeless, having no reason to live, being a burden to others, feeling trapped, unbearable pain, considering death

History

Behavior

Prior suicide attempts, family history of suicide, childhood abuse, neglect, or trauma

Increased drug/alcohol use, withdrawing/isolating, sleeping too much or too little, saying “goodbye,” giving away prized possessions, aggression, fatigue

Environmental

Mood

Access to lethal means, prolonged stress (harassment, bullying, relationship problems, unemployment)

Depression, anxiety, loss of interest, humiliation, shame, agitation, anger

NewsAccount | January/February 2021

Center at the Anschutz Medical Campus. During that training, I practiced becoming comfortable with directly asking about others’ mental health when I had concerns based on their behaviors. Since then, on several occasions, I have approached people using the techniques I learned, including asking the direct

He told me it felt as if everyone knew what he was thinking, and their silence felt like endorsement of the idea. question of whether they were contemplating suicide. Two of them replied no, both expressing thanks for the outreach and asking about ideas for navigating tough times. For example, one person shared that just knowing someone saw her struggles made the weight of them feel lighter. She and I continue to talk regularly, supporting each other in our wellbeing habits and sharing what we learn. Another person confided to me that suicide was all he’d been thinking of for some time and was grateful someone finally asked. He told me it felt as if everyone knew what he was thinking, and their silence felt like endorsement of the idea. We sat together awhile, ordered more coffee, and together called for an appointment with a mental health professional. IF SOMEONE I CARED ABOUT DIED FROM SUICIDE, DID I FAIL THEM? No. While suicide can be preventable, our society has a long way to go in teaching the vocabulary, courage, and confidence to act when we have concerns. We do know suicide is not the result of a single event or circumstance. Rather, it is a complex issue with numerous influencing factors. We can continue to be part of the conversation, share our stories, educate ourselves and others, and make it a priority to look out for each other moving forward.

According to the CDC: • 46 percent of individuals who have died from suicide had a known mental health condition • 42 percent were experiencing a relationship issue • 29 percent faced a crisis within a twoweek period of their death • 28 percent had a problematic substance use issue • 22 percent had a physical health problem • 16 percent had a job or financial issue • 9 percent had criminal/legal problems • 4 percent experienced loss of housing ARE THERE PROTECTIVE FACTORS FOR MENTAL WELLBEING? Yes. There are several personal and environmental factors that can help protect our individual mental wellbeing, thus forming a safety net, including:

Self-esteem and sense of purpose/meaning in life

Cultural and/or spiritual support

Connectedness to individuals, family, community, and social institutions

Access to a variety of clinical interventions and support for seeking help

Effective clinical care for mental, physical, and substance use disorders

Support from ongoing medical and mental health care providers and relationships

Life Skills: problem solving and coping skills, conflict resolution, and ability to adapt to change

Self-care and resiliency habits, including those described in the September/October 2020 NewsAccount

RESOURCES Suicide Crisis Line: National Suicide Prevention Lifeline 1-800-273-TALK (8255) www.suicidepreventionlifeline.org Colorado Crisis Services 1-844-493-TALK (8255) coloradocrisisservices.org

Lisa Hackard, CPA, is an Audit Partner with KPMG LLP and the National Chair of KPMG’s Abilities in Motion Business Resource Group, which raises awareness of, and supports, people with disabilities and those who are caregivers for people with disabilities. Lisa envisions a time when we’re just as comfortable talking about mental health as we are talking about physical health, recognizing the importance of mental health as a fundamental part of professional and personal achievement. Alex Yannacone, MA, has an extensive background in the prevention and intervention of mental health services and education. As the Director of Education and Community Programs at the Helen and Arthur E. Johnson Depression Center at the University of Colorado Anschutz Medical Campus, she provides programs and trainings addressing mental health issues across Colorado.

January/February 2021 | www.cocpa.org

PLANNING STRATEGIES

The Post-COVID-19 Office: What Will It Look Like? BY NATALIE ROONEY

As companies work to ensure their teams can return to the office safely, everything from hygiene to cubes to the communal kitchen is being reworked and reconfigured. ONE SIZE WON’T FIT ALL When we think about returning to office life after working remotely, we know two things: Offices won’t look like they used to, and onesize-fits-all solutions won’t apply, says Lisa Christner, principal of the Corporate Interior Design Company. Christner has been working with companies and organizations of all sizes as they contemplate how to prepare their spaces for employees. “Companies are communicating their expectations and explaining what employees will see when they return to the office,” Christner says. There are as many different solutions as there are companies seeking them. “More than ever before, companies are looking at their individual situations,” Christner explains. “There are a lot of guidelines out there, but every company needs to decide for itself if and why to bring people back.” Christner says most clients are making decisions based on the short term. “Most people realize this situation isn’t going to last forever, and they’re not making extreme changes at this point.” Many of the changes happening in work spaces are basic – providing hand sanitizing stations and masks, creating space for physical distancing, adding signage for directional flow, lowering the maximum occupancy for conference rooms and common spaces (if they’re available at all), removing furniture to keep numbers low, and adding Plexiglas to the tops of cubes.

Example of a wall-mounted air filtration in a meeting space pictured in the unit above the presenter

There also has been an uptick in the number of companies improving their air filtration systems, something Christner says may be a costlier change, but will be money well spent for the future. “People have always been concerned about air quality and even more so now. Taking steps to improve air quality gives people a mental picture of well-being in their space.” Christner suggests another air quality idea: indoor plants. “Bringing the outdoors in can help make people feel better about being in the space, and plants do help with air quality,” she says. “It’s something easy to do.” She encourages thinking through the use of plants in advance. “It can be touchy with some people so make sure it’s a thoughtful, planned approach.” FLEXIBLE SPACE Office furniture industry experts say companies are likely to have a mix of workers in the office and at home on any given day, creating a need for flexible office spaces. There likely will be more spacing and more barriers, meaning there could be a move away from open layouts that gained popularity in recent years. Cubicles with short walls can be retrofitted with glass or acrylic toppers.

NewsAccount | January/February 2021

Planters can be a way to bring the outdoors in as well as define space and create directional flow

Christner emphasizes that people still want and need to collaborate, so she doesn’t envision those collaborative spaces going away completely, but the spaces will be reimagined. Christner describes new, flexible cubicle spaces that allow cubes to be transformed into micro offices. “Companies are actually building clear, demountable floor to ceiling walls for total space privacy that

allow workers to maintain a sight line and keep a sense of openness while feeling protected. They still feel they’re part of what’s happening, but they have their own ‘office’ for safety,” she says. Christner says office reconfigurations with these demountable, movable walls are better than standard drywall construction because they’re flexible. When it is time to reconfigure, they don’t generate the dust and dirt from a standard remodel. “It’s a good temporary solution,” she says. In addition, because the walls can be reconfigured

bacteria and fungus. This feature protects the fabric or material from the growth of certain microorganisms that would deteriorate its appearance or performance. It is not intended to protect humans from the spread of infectious diseases.” Companies also are incorporating technology to reduce touch points and improve hygiene: • Motion lights and motion sensors when entering a room or turning on a faucet • Doors that open automatically with motion sensors or facial recognition • Elevators and AV systems that can be ordered and controlled from a smartphone • Room or cubicle reservations that can be made online with a smartphone Employees likely will see reduced sharing in common spaces like kitchens, if they’re available at all, and less sharing of printers and other tech equipment. Cubes are becoming more self-contained so workers can complete their tasks without leaving their spaces. Christner says whatever steps you take, your office space should be well thought out and planned in advance. “Think it through,” she advises. “Don’t just do something because you read or heard about it. If you don’t have a good reason, don’t do it.”

MEANWHILE, BACK AT HOME… The office may be taking shape for your return, but while you’re still working at home, here are some do’s and don’ts. Micro offices using demountable walls

DO MAKE SURE YOU’VE GOT THE RIGHT EQUIPMENT. At first it might have seemed fine to sit at

the kitchen counter and work for a few hours. But now that working from home has stretched into a much longer timeline, consider the ergonomics of your chair, its height, and your desk configuration.

DON’T FORGET TO TAKE BREAKS. It’s easy to

get into a groove and then realize you haven’t moved for three hours. Get up every hour. Stretch. Blink your eyes, and focus on something far away. Take a walk outside. If you’re a smart watch wearer, take your requisite 250 steps when it reminds you. People oriented away from each other with added plexiglass or glass toppers on cubicles

many times, they are also a good long-term investment with potential tax advantages. There are other ways to protect employees without spending a lot of money, Christner says. “You can reorient how people are sitting within their cubes by having them face away from each other instead of toward each other. It’s a simple trick that just about anyone can do with existing cubes.” And in a time when antibacterial/antimicrobial are key marketing points, Christner says don’t be fooled. “You should look for materials that are bleach cleanable instead or can withstand the cleaning from a CDC-approved cleaner,” she advises. According to furniture designer Knoll, “A fabric or material that is antimicrobial can kill or inhibit the growth of microorganisms like

DO CREATE AND STICK TO A ROUTINE as much as possible. Set a schedule with all of the tasks you need to get done for the day, and set time limits on each so you’re on track to finish the day on time. DON’T LET SOCIAL MEDIA SIDETRACK YOU.

It’s tempting to have tabs open from Twitter, Facebook, and Instagram, however, social media can prolong your workday if you let it.

DO GIVE YOURSELF SOME GRACE. We’re all still in pandemic mode. Kids still are virtual learning – possibly right next to you. And the world is still an uncertain place. Some days are going to be better than others. And that’s OK.

DON’T BE AFRAID TO REACH OUT AND ASK FOR HELP.

January/February 2021 | www.cocpa.org

TECHNOLOGY TOOLS

3 Ways to Professionalize Your Zoom Presence BY GREG LAFOLLETTE, CPA/CITP, CGMA

’m a remote worker (Work is something you do, not somewhere you go!), so I’ve been a Zoom proponent for years. Little did I know when I introduced people to Zoom in July 2018 that a pandemic less than two years later would turn us all into daily Zoom users.

I spend multiple hours daily in Zoom meetings, and I’m sure you do, too. But have you given any thought to “professionalizing” the way that you use Zoom? Given the frequency and duration of Zoom meetings in today’s “new normal,” I submit that the platform is just as important as your main website or your physical office. You can find roughly 5 million articles (I said roughly) that cover the easy basics of Zoom, but easy is no longer enough. You need professional-grade equipment to mirror your overall professional appearance. Here are three ways to up your Zoom game. Sound: If you want to sound professional, you need to get the sound right. Start by minimizing background distractions, keeping yourself muted when not speaking (the space bar is your friend!), and positioning yourself properly respective to your microphone. Ah, yes, the microphone. If you’re using a built-in microphone ... stop and do the following! First, spend a few bucks for an adjustable suspension boom (sometimes called a scissor-arm stand). This will cost you perhaps $25. Second, add a professional-grade USB microphone. The selections

Given the frequency and duration of Zoom meetings in today’s “new normal,” the platform is just as important as your main website or your physical office. here are myriad and range from $25 to, well, a lot! Consider the Blackweb BWA19HO011 at the lower end of that range or the pricier, but definitely worth it, Blue Yeti at about $130. I use the Blue Yeti every day. Camera: You might already know all the rules about background, positioning, angles, etc., but if you’re using a bottom-of-the-line webcam or (horrors) your laptop’s built-in camera, stop and invest in an upscale, professional-grade webcam. Things like resolution, frame rate, high definition or ultra-high

NewsAccount | January/February 2021

definition, auto focus, lens type (get glass, not plastic), and pan and zoom capabilities are all important. My hands-down favorite here is the Logitech BRIO Ultra HD Webcam (about $200). Lighting: Lighting is arguably one of the most important components of a professional appearance. To avoid the dreaded shady face, invest a few dollars in a lighting tool designed specifically for web meetings. Good professional lighting is relatively cheap, so consider adding either a cube, a ring light, or a softbox. I use a Lume Cube Video Conference Lighting Kit ($70). I also like the Neewer 18-inch Dimmable LED Ring Light (about $70) and the LimoStudio LMS103 Soft Lighting Kit (about $50). Each of these units will solve your shady face problems and, when used with your new professional-grade webcam and microphone, will help you look and sound just as smart and professional as you really are. Recap: Costs: Boom arm, $25; microphone, $130; camera, $200; lighting, $70. Grand total, $425. Benefit: Priceless. Greg LaFollette, CPA/CITP, CGMA, is a strategic adviser with CPA.com, the commercial subsidiary of the AICPA. Reprinted with permission of the Journal of Accountancy.

MOVERS & SHAKERS

TAX STUDY GROUPS Boulder/Longmont Tax Study Group

DEBBI C. WARDEN, CPA Debbi C. Warden, CPA, RubinBrown LLP, Denver, is retiring from the firm, effective February 28, 2021. She will join AGN International, the North America Group, as Director of Member Services, March 1st.

VIRTUAL ONLY

Wednesday, Jan. 20, and Wednesday, Feb. 17 Additional 2021 dates: Mar. 17, May 19, Jun. 16, Jul. 21, Aug. 18, Sep. 22, Oct. 20, Nov. 17, Dec. 15. For more information, contact Lynn M. Mitton, CPA, MT, MPA, 303-499-7445, or email lmitton@tandemcpas.com.

DALBY, WENDLAND & CO., P.C. Dalby, Wendland & Co., P.C. (DWC), with six locations throughout western Colorado, was named a Top 200 Private Company in Colorado by ColoradoBiz. DWC moved up in rank to 54 this year (from 80 in 2019). In serving Colorado for 72 years, it is the sixth oldest business featured on the list. Companies must be headquartered in Colorado and are ranked each year by gross revenues. This is the seventh year DWC has been named a Top 200 Private Colorado Company.

Denver Tax Study Group VIRTUAL ONLY

Tuesday, Jan. 26, and Tuesday, Feb. 23 Additional 2021 dates: Mar. 23, Apr. 27, May 25, Jun. 22, Jul. 27, Aug. 24, Sep. 28, Oct. 26, Dec. 7. Register at www.cocpa.org.

CLASSIFIEDS PRACTICES FOR SALE, PURCHASE, OR MERGER Selling your firm is complex! ACCOUNTING BIZ BROKERS can help! We have been selling CPA firms for over 16 years, and we know how to simplify the process. We have a large database of active buyers. We work with industry specific lenders ready to assist buyers with financing. Contact us today to receive a free market analysis or to start the sales process. Current Listings: Loveland Gross $160k; Ft Collins Gross $85k; Loveland Gross $690k (Sale Pending); Mesa County Gross $120k (Sale Pending). Recent sales: Englewood Gross $310k; Greeley Gross $255k. Kathy Brents, CPA, CBI, at 866-260-2793 or Kathy@AccountingBizBrokers.com, or visit our website at www.AccountingBizBrokers.com.

IN MEMORIAM We extend our sympathy to the families and friends of the following members and former member: Joseph P. Schurwonn Member since 1960, Broomfield, Colorado James Jungen Member since 1970, Wellington, Colorado Don W. Gruenler Denver, Colorado

COCPA Talent Platform The direct connection between hiring managers and professional talent Share Your Skills for a Cause In these uncertain times, many charitable organizations in your community need the skills and expertise you possess. The COCPA Talent Platform can match you with these opportunities, and you can continue to build your leadership skills by giving back. To volunteer, you must create your conf idential online prof ile. Once you’ve completed it, you will see notif ications about volunteer positions on your dashboard under “My Networks.” You choose whether or not to apply for the volunteer position.

29 cocpa.org/talent.

January/February 2021 | www.cocpa.org

Please consider giving back by creating your COCPA Talent Platform prof ile today at

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