COCPA NewsAccount - May/June 2023

Features Contents

2 New COCPA Chair Diego Baca Steps Up to the Mic

While “auditor” and “rapper” might not be two words you’ve seen in the same sentence before, a love of music has influenced many life decisions for new COCPA Chair Diego J. Baca, CPA. Get to know this vibrant Colorado native and the hurdles he overcame en route to becoming a CPA.

7 Colorado Tax Practitioners Scramble to Find K-1 Workaround

The Colorado Department of Revenue’s December release of the new K-1 form to be used in 2022 Partnership and S corporation filings (DR 0106K) was no surprise to Colorado tax practitioners. What did catch COCPA members and filers off guard was the method of the form’s remittance.

10 The University of Denver’s Daniels College of Business Brings Financial Literacy to High School Classrooms

Over the course of several sessions, University of Denver School of Accountancy students and faculty, along with members of the COCPA Financial Literacy Committee, delivered personal finance workshops to freshmen at Aurora Science & Tech High School, laying the foundation for success beyond the classroom.

14 Navigating the Mazes of Social Security and Medicare: Challenges and Tips

Social Security and Medicare are vital pieces of the retirement puzzle when it comes to finances and healthcare. What you don’t know about the complexities of both can have long-term financial ramifications – for you and your clients.

24 Encouraging Sustainability in Accounting Education

Today, sustainability and environmental, social, and governance (ESG) issues are hot topics in the accounting and finance world, but the issues themselves have been around for decades. As the focus on ESG evolves, accounting educators play a critical role in introducing students to what they might see on the job.

NEWSACCOUNT

A publication of the Colorado Society of Certified Public Accountants Vol. 69, No. 1 May / June 2023

Officers

Diego Baca, Chair Tobias "Toby" Clary, Vice Chair

Amy E. King, Treasurer Angela Roberts, Immediate Past Chair Alicia Gelinas, Secretary

Directors

Erin N. Breit, Ronald L. Goodrich, David Loucks, Amy King, Heidi M. O'Neil, Greg C. Pfahl, Tiffany Davis

Editorial Board

Jack Allgood, Paul Elggren, Jerald Kaiser, Ken Fichter, Lori Anne Reinwald, Laura J. Theiss, Barbara J. Tedesko, Steve Van Meter, Michael D. West, Charlie Wright

Kelli Davis, Editor Natalie G. Rooney, Contributing Writer Sarah Knight, 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 $14.00 one-year subscription to NewsAccount

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POSTMASTER: Send address changes to NewsAccount, Colorado Society of Certified Public Accountants 7887 E. Belleview Ave., Suite 200 Englewood, CO 80111

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New COCPA Chair Diego Baca Steps Up to the Mic

BY NATALIE ROONEY

Diego José Baca’s path to an accounting career and CPA licensure wasn’t without its challenges, and there were times when he wasn’t sure he would make it. He was raised in Trinidad, Colorado, along with his brother, Julio, by his single working mother, Anna. “It was humble, but loving, and it’s impressive to think about how my mom raised us on one income,” he reflects.

Baca credits what his mother and his grandfather, José Macario Valdez, taught him about grit, hard work, resilience, and – most importantly – accountability, for getting him to where he is today: senior manager in the assurance practice at Ernst & Young LLP (EY) in Denver.

“When I say I’m going to do something, I do it,” he says. “Accountability is such a good value to have, especially in today’s world.”

THREE LITTLE LETTERS

Baca has been a self-described golf addict since middle school, and he hit the links every chance he could. Trinidad is a smaller town, so the player groupings were often an eclectic mix of people. Several times, Baca was paired with the same well-dressed man who always had new clubs and drove the nicest car. “I asked him what he did for a living, and he said he was a CPA,” Baca recalls. “I remembered those three letters for a long time. That interaction might not have meant anything to the man, but it was my first exposure to what has turned into a pretty good career.”

It was Baca’s grandfather, José, who first put forth the idea of college. “He was my father figure and an influential force,” he says. José passed away during Baca’s

“Auditor” and “rapper” might not be two words you’ve seen in the same sentence before, but you’re about to meet Diego José Baca, your new COCPA Chair, whose love of music has influenced many of his life decisions. Get to know this vibrant Colorado native and the hurdles he overcame en route to becoming a CPA.

senior year of high school. “I wish he could see where I am today. He would be so proud that I listened to everything he taught me.” Well, almost everything. His grandfather suggested that Baca pursue a law career. “He said I should be a lawyer because all I did was argue,” Baca laughs.

As high school graduation approached, however, Baca was unsure about his future. “No one in my family had ever gone to college,” he says. “I wondered if I could do it.” A recent debut rap album contained a single lyric that changed his outlook on college. With that, he enrolled at Trinidad State College. Baca decided to major in business but wasn’t sure what track he would follow until he had the good fortune to cross paths with Sandy Veltri, his Accounting 101 instructor at Trinidad. “She was authentic, funny, loved accounting, and kept it real during class,” he says. “She was such a cool lady, and she made accounting cool. She was the one who really developed my love for accounting.”

The more Baca investigated accounting as a career, the more he liked what he saw. “It was a financially stable career, and as a first-generation college student, this was an investment. I didn’t know exactly where it would take me, but I had to have a return on my investment. Accounting offered that.”

TAKING THE NEXT STEP

After a successful two years at Trinidad, Baca transferred to his dream school: The University of Colorado – Boulder. “It was my dream school because I had watched their football games for years and loved their school colors,” he laughs. “It was a happy, pivotal moment and a big accomplishment for our family.”

The transition to CU Boulder was challenging though. Baca got a C on his first exam and was deflated. “I wasn’t used to getting Cs,” he says. “I felt like the world’s biggest failure. I called home, broke down in tears, and told my mom I never should have done this. I used all the negative self-talk you could possibly jam into a session.”

Despite his rocky start, Baca rose to the challenge. “I knew I would have to take this very seriously to graduate. I wasn’t going to be a straight A student, but I knew I was smart enough to get a degree. That was my motivation.”

Coming from junior college, Baca wasn’t familiar with the accounting recruiting and internship “system” and missed out on early opportunities. “I worked full time, and I didn’t do the typical things accounting students did. I wasn’t familiar with Beta

had convinced myself I didn’t have what it took to lead an audit engagement or coach a team, and clearly I wasn’t technically smart enough, as indicated by my exam failures.”

To Baca’s surprise, he was promoted and began working with a mentor who helped him overcome his fears and negative feelings. The pair worked together on small but challenging audit engagements. “I worked hard, learned quickly, and grew from my mistakes,” he says.

Alpha Psi or the different firms,” he says. “As a first-generation, nontraditional college student, I wasn’t looped in enough to know.” A friend who had interned at EY connected Baca with the organization, which led to a summer program for underrepresented minority students. The next summer, Baca completed a traditional audit internship. “The first summer was instrumental in giving me confidence that I could get a job at EY,” he says. “It slowly introduced me to this world. The second summer, I had a formal internship. The rest is history, but it shows how important it is to educate nontraditional students like me.”

OVERCOMING DOUBTS

After graduation, Baca joined EY full time, but those small-town, first-generation college student doubts persisted. “I was so self-conscious about not following the typical path,” he reflects. “I didn’t think I was smart enough to be in charge of an audit.” Baca’s struggles to pass the regulatory portion of the CPA exam added to his stress. He failed it four times, and in the process, let all the other sections he had passed lapse. Again, he turned to his mom. “I called her in a parking lot and just broke down,” he says. “I told her I wasn’t going to do this anymore and that everything had been a waste of time and money because I clearly wasn’t cut out to be a CPA. Mentally, I decided to quit.”

Baca thought his career was on borrowed time when he found himself up for promotion to senior. Again, self-doubt crept in. “I just knew I wouldn’t get it because I

Improved confidence and mentoring had Baca moving forward on his career path, but he still wasn’t satisfied after receiving an average performance review. He knew not having his CPA was holding him back, so he renewed his efforts to pass the exam. Baca threw himself into exam preparation, and within six months had passed all four parts. One of Baca’s biggest takeaways from his own struggles is understanding that not everyone’s journey is the same. He’s happy to share his own story — the good and the bad — as proof. “I’m very transparent and vulnerable with how I talk about my career,” he says. “Early on, I was ashamed and afraid. There was this incessant fear of being judged. As you grow and mature, you realize everyone has their struggles and insecurities. There isn’t one path. It’s just individuals doing what works for them.”

LIVING OUT THE LYRICS

Baca says that music has played a pivotal role throughout his life. Some of his earliest memories are of driving in the car with his mom, listening to Motown, and ‘50s, ‘60s, and ‘70s tunes. It led to his own love of music, in particular rap. “It’s unique,” he laughs. “You don’t meet a lot of other accountants who are rap heads.”

Specific rap lyrics have touched his life over the years, including the ones that originally led to his decision to attend college. “Rap music gets a bad rap – pun intended – for a lot of reasons,” Baca says. “But there are a lot of positives, as well.”

Baca says that music has played a pivotal role throughout his life.

CONTINUED FROM PAGE 3

something different underpinned everything I did career wise. Music was a constant that refueled my confidence when I lacked it.”

LIFELONG LEARNING

The ambiguity of auditing appeals to Baca. “There’s always an ambiguous set of problems that requires critical thinking,” he says. “You’ve got to be two, three, or four steps ahead. I like that.”

He also enjoys the growing role that risk mitigation plays in the audit process. “How can we protect the public markets and be highly skilled risk assessors through what we do? We tend to see examples of what goes wrong when auditors improperly assess risk. However, we don’t talk about the successful situations when the auditor stepped in and made the tough call, which happens every single day. I wish the public knew more about that.”

Baca says one of his long-term goals is to teach at CU Boulder, because he loves helping others learn. “Teaching is one of my greatest passions outside of mentoring and giving back to younger people,” he says. “Each day I have opportunities to teach, whether it’s my teams, my clients, or myself. CPAs are constantly teaching. It might not be in a classroom or lecture hall, but we’re constantly instructing and guiding. I still learn something every day, as well. Even after 13 years working in audit, I’ve still got a lot to learn, and I’m OK with that. I have opportunities to continue learning. It’s one of the reasons I love this profession.”

as a director and the regional leader for several years. Through this initiative and other nonprofit board service, Baca estimates he’s helped organizations award more than half a million dollars in scholarship money to deserving students in Denver and throughout the state.

In his free time, Baca is an avid nonfiction reader, focusing on biographies in business, comedy, music, the Bible, and politics. During warmer months, you’ll probably find him on the golf course, but he also enjoys listening to and making music, listening to and studying stand-up comedians, and watching his favorite TV shows repeatedly. He has recorded two rap albums for fun and hopes to learn to play the piano before he turns 40. He is also an avid sports fan, and especially loves the Nuggets, Broncos, and CU Buffs.

Also close to Baca’s heart is education and communication around mental wellness, driven by the panic and anxiety he has personally experienced. “I’ve hidden it well, and it hasn’t been easy,” he acknowledges. “I feel better than I ever have, but it’s important to be transparent and open about mental health. You need the right support around you. It’s important for all of us to support each other. Everyone has a different situation and different context with mental health.”

THE FUTURE IS NOW

Growing up in a Latino community, Baca listened to Jay-Z, Dr. Dre, Snoop Dogg, and other rappers who he says his mom would have frowned upon if she knew he listened to them. “But that’s the environment I grew up in, and it influenced me,” he says. “Instead of inspiring me negatively, it gave me confidence. Some of the artists that inspired me were themselves underdogs who narrowly escaped a life that wasn’t positive or productive. That’s what I draw from when I listen to these songs and stories by people who came from the projects, poverty, guns, violence, and single-parent households. Hearing how they chose to do

Baca’s additional passions include a focus on educational access and mentoring, both in his work at EY and in the community. Baca has volunteered with the CU Latino Alumni Association, Junior Achievement, the Denver Scholarship Foundation, Greenhouse Scholars, and Strive Prep. He is a former member of the Association of Latino Professionals for America Denver Chapter board of directors and a former member of the AICPA CPA Board of Examiners. Before joining the COCPA board of directors, he served on the Educational Foundation of the COCPA, including a term as president.

Baca also serves as a liaison for the EY Diversity and Inclusiveness Professional Networks and facilitates technical and soft skills trainings, notably as a consistent Top Tier Facilitator within the EY Audit Academy. He is also the co-Executive Sponsor for the EY Denver College Mentoring for Access and Persistence (MAP) program, after serving

As Baca looks ahead to his year as COCPA Chair, he’s excited to talk about the future, but he emphasizes that the future is now. “We talk a lot in this profession about the future of the CPA pipeline,” he explains. “Guess what? We’re deep in it. It’s time for us to get more involved, take pride, and support the COCPA and the broader profession outside our own firms and organizations. The journey is always tough, but generally we don’t fear flying because of a little turbulence. Having a mindset like that can help us handle any adversities ahead.”

Baca recalls the words of one of his early mentors: ‘You’ve got to lift while you climb. And as you’re succeeding, you’ve got to make sure there are people under you who you’re lifting.’ Baca is taking that to heart. “I just want to make a bigger impact, because I want us all to succeed.”

The views reflected in this article are the views of the author(s) and do not necessarily reflect the views of Ernst & Young LLP or other members of the global EY organization.

Baca's grandfather, pictured above with young Diego, taught his grandson a lot about the value of hard work and resilience.

Below, Baca celebrates graduation with his mother and brother.

Baca engages in one of his passions, music.

Five Ways to Boost Your Workplace Influence

BY ANNA CONRAD, JD

1

Build relationships. People are more likely to be influenced by someone who they know and trust. Take the time to build strong relationships.

The most powerful people in the workplace aren't always those with the top titles. Instead, it is the people who have influence within organizations. And the benefits of influence extend beyond power; influence also helps you achieve your goals and get things done.

But how do you boost your organizational influence? As a financial executive, what does it take to become a trusted advisor who is equal to his or her peers at the board room table? At right are some tips on influencing others:

2

Forget the Golden Rule. Communication is critical when it comes to influencing people. When communicating, following the Golden Rule –communicating with others in the way that you want to be communicated with – will backfire. Instead, embrace the Platinum Rule: Communicate with others in the way that they want to be communicated with.

3

Understand others’ needs. In order to influence others, you must first understand their needs and interests. Take the time to listen to your colleagues and find out what motivates them and what is helpful to them. Once you know their needs, tailor your message to appeal to and respect their interests.

4

Show sincere empathy. Empathy is the ability to understand and share the feelings of others. When seeking to influence others, it’s essential to put yourself in their shoes and understand their perspective. This will help you frame your message to appeal to their needs and interests.

5

Share the love. Share your ideas and insights, and be willing to mentor and help others.

Anna Conrad is a highly sought-after executive coach based in Colorado. Contact her at Anna@ILSInt.com. Join Anna at the May 19 COCPA CFO Roundtable, “Take Your Seat: Moving from CFO to Strategic Partner.” This virtual, interactive session will offer specific, actionable techniques to elevate your organizational influence and claim your seat at the executive table. Register by visiting COCPA.org/cfo-roundtable.

Colorado Tax Practitioners Scramble to Find K-1 Workaround

BY NATALIE ROONEY

The Colorado Department of Revenue’s December release of the new K-1 form to be used in 2022 Partnership and S corporation filings (DR 0106K) was no surprise to Colorado tax practitioners, but what did catch COCPA members and filers off guard was the method of the form’s remittance. Practitioners were anticipating filing the K-1 form using their firm’s tax software via the Modern e-Filing (MeF) system; however, the CDOR requested that the K-1s be submitted through a separate online portal or in hard-copy form by mail.

Members immediately raised concerns about the logistics associated with this process, not only related to the amount of time it would take to complete the process for the volumes of related partnerships/S corporations, but also related to the authority to do so on behalf of clients given the lack of access to client Revenue Online portals or not having the authority already set up in client engagement letters.

Toby Clary, CPA, shareholder at Soukup, Bush & Associates in Fort Collins, says the firm had already internally identified the issue when he began receiving questions from other practitioners as they learned of the requirement. They wanted to know how his firm was going to handle the issue. “Everyone was having the same questions across the state,” he says.

Mary L. Reiser, CPA, director of state and local tax services for FORVIS’ Denver office, participates in the COCPA/CDOR Working Group. “The Working Group certainly provided us advance notice and important insight into the issue,” she says. “We were able to get in front of it and create a best practice for managing the requirement before the busiest part of tax season.”

TAX MATTERS

CONTINUED FROM PAGE 7

HOW YOU CAN BE INVOLVED IN TAX RULEMAKING AND LEGISLATION?

Share your expertise with the COCPA and other members:

→ Engage in the online CONNECT discussion platform in the Tax Community.

→ Participate in Tax Study Group online discussions.

→ Watch COCPA’s NewsQuick electronic newsletter or the Recent Advocacy News and Updates on the Advocacy page of cocpa.org for calls to action in reviewing and providing feedback on important tax legislation and CDOR rulemaking.

GETTING ANSWERS

As members raised additional concerns, the COCPA reached out to the CDOR to learn more and seek relief for the current filing season. As a result, The Department waived the signature requirement on the Annual Transmittal of DR 0106K – Colorado K-1 Forms cover sheet (form DR1706) for the 2022 tax year. For practitioners, this did alleviate some of the concerns around obtaining client signatures and having clients submit the paper copies themselves.

In conversations with the CDOR, the COCPA sought answers to some of the following common questions:

? Why isn’t the K-1 process part of the Modern E-File process?

With the possibility that a partnership could be remitting K-1s as both an issuer and a recipient in a multi-layered partnership, the Department of Revenue wanted a clear way for internal systems to distinguish between the two, opting to use the current withholding system for an issued K-1.

? Why can’t the K-1 Filing Process be delayed until it’s integrated into the Tax Return E-File process?

Pausing the implementation of the K-1 filing would in itself require significant reprogramming for which time did not support in meeting 2022 filing year’s deadlines. As a result of the SALT Parity Act (see footnote) and associated credits, information provided on the DR 106K is critical to the compliance process.

? Why is there a need for the K-1 Form now? Wasn’t Part III enough?

The previous Part III of the partnership return, now replaced entirely by DR 106K, did not include partner-by-partner credits, subtractions, add backs, nor allocation of SALT Parity election tax payments needed to align verification with individual returns, for which the Form DR 106K now provides.

? Why can’t a PDF K-1 Form be attached with the tax return?

While a PDF is an electronic record, it is an image of a form rather than a digital record that can be mapped to CDOR database fields. The CDOR has a process for converting paper documents into digital records, which means that paper processing is still a viable option for those not able to manually input the data or upload a spreadsheet file on Revenue Online.

OPTIONS FOR TAX YEAR 2022

According to the CDOR website, partnerships and S corporations must submit a copy of each partner's or shareholder's Colorado K-1 to the Department through one of the following methods:

1. Spreadsheet (XLS) uploaded electronically through Revenue Online

2. XML uploaded electronically through Revenue Online

3. Manually input data electronically through Revenue Online

4. Paper form DR 1706 by mail

The COCPA confirmed with the CDOR that, when uploading via Revenue Online, preparers may submit for all of their clients in a single submission after providing valid information for one of their clients. For this step, the client's valid ID is not used in processing the 106K submissions and is used as a validation step only. A preparer is allowed to submit all of his or her clients in a single file once they pass the DOR’s validation step.

ONE FIRM’S SOLUTION: ADJUSTING INTERNAL PROCESSES

Reiser said FORVIS reviewed the various options provided by the CDOR and contacted the firm’s software provider to determine if it would be possible to export an XML file of the 106Ks that could be uploaded via Revenue Online. “We determined it would not be possible to do for the April 18 due date,” she says. “We decided the least disruptive and most cost-effective process to file the 106Ks for our clients would be to create an administrative process internally to mail paper copies of the 106Ks with the necessary transmittal form to DOR.”

Reiser says they knew there are some mechanisms to input the information electronically on the Department's web site or to upload XML files but felt it would be an undue and unfamiliar burden to place on clients to have them file. Additionally, it wasn't cost effective for clients to have the firm manually input or manually create an XML file to upload.

FORVIS created internal instructions for the firm’s preparers to create a separate PDF deliverable package for the 106K and transmittal form that required them to print and mail the 106Ks during tax return processing. “Everyone on the team is aware of the process and understands the importance of filing the 106Ks in order to avoid our clients receiving unnecessary tax notices and being disallowed Colorado pass-through entity tax credits,” Reiser says. She estimates that the firm’s tax team will prepare and mail upwards of 2,000 packages on behalf of clients for 2022.

A DIFFERENT WORKAROUND: FILING EXTENSIONS

At Soukup, Bush & Associates, Clary says it came down to how they could give the CDOR what was needed in a timely fashion

while maintaining some semblance of sanity at the firm during busy season.

Each January, the firm automatically files extensions for pass-through entity clients. “If we file by March 15 each year, that’s great,” Clary explains. “This year, it took the pressure off and was a game changer for those 1,500 returns that would have had to have been sent out for signatures. It would have created a significant burden with the ongoing labor shortages in accounting.”

Clary adds that if any pass-through client is due a credit from the SALT Parity Act, those were submitted by the April 18 deadline. Those that aren’t receiving a tax credit will be submitted this summer. “It saved our busy season,” he says.

“The really big success from the COCPA standpoint was the CDOR allowing us to remit 1706 Form without signatures on it for 2022,” Clary says. “If not, we would have had to get a signature on every one of those returns. Having them waive that was a big win.”

FUTURE FILING SEASONS

Reiser says that the firm’s software provider released a note in March indicating they are currently developing an option that would allow for the export of a special XML file of the 106Ks such that the firm may be able to electronically upload the files directly in the future. However, such an option would not be available until after the April 18 filing due date. In response to the ongoing conversations, a representative from the CDOR shared, “We have heard the concerns expressed by COCPA members and are committed to reviewing the programming necessary to make the DR 106K part of the MeF process in future filing periods.”

The Department participates regularly in the COCPA/CDOR Working Group, whose goal is to identify and address strategic areas of improvement that support taxpayers and tax preparers in Colorado’s voluntary tax compliance system. With the Working Group’s assistance, the COCPA will continue to work with the Department on solutions for future improvements.

COCPA CEO Alicia Gelinas, CPA, has been working closely with the CDOR on the K-1 issue. “We value the relationship we have with the Department of Revenue and are appreciative of the shared challenges that the Department and our members face in implementing legislative changes in the best interest of the public, often with resource constraints,” she says. “I also recognize that for many tax CPAs still recovering from change fatigue over the past pandemic years, this was yet another surprise that caused anxiety and concern during an already busy time. That is why COCPA membership and the collective voice we have to help one another navigate these challenges is so valuable.”

This article is for general information purposes only and is not to be considered as legal advice. Applying this information to your particular situation requires careful consideration of your specific facts and circumstances.

→ DR106 Book: COCPA.org/DR0106Book

The University of Denver’s Daniels College of Business Brings Financial Literacy to High School Classrooms

BY CONNOR MOKRZYCKI

Aurora Science & Tech High School’s freshman – and inaugural – class had an unusual opportunity to learn important skills often left out of secondary school curriculum: financial literacy.

In recent months, students learned about everything from budgeting to investing from graduate students and faculty at the University of Denver’s School of Accountancy, who led six ninth-grade classes through workshops covering the fundamentals of personal finance. Each workshop was designed to provide a different set of skills on which students can build throughout their lives, says past COCPA Chair Sharon Lassar, Ph.D., CPA (Florida), John J. Gilbert endowed professor and director of the School of Accountancy at the Daniels College of Business. “We’re setting the students up for long-term success, not just for college, but before and after.”

In January, students learned the ropes of income and budgeting, with an emphasis on the importance of saving. Many of the students are already putting what they learned to action, says Alexandre Scott, a ninth-grade biology teacher. “It’s relevant to them. Many students work with their families’ businesses. They’re saving for college already. You can see them starting to plan ahead,” she

says. “This would have been so advantageous when I was in high school.”

In a second workshop, students learned how to be smart with credit. From the difference between debit and credit cards to the intricacies of car loans, the high schoolers gained insight into responsibly and effectively building and using credit. Instructors incorporated plenty of real-life examples and practical applications into classroom discussions, making the content real for students who have yet to apply for credit.

Kathleen Davisson, CPA, teaching professor and assistant director of the School of Accountancy and a past member of COCPA Educational Foundation Board of Trustees, says that before the hour-long workshop was over, “students were already coming up with ways to build credit cheaply, and thinking about how they could help each other out in the most cost-effective way.”

A subsequent workshop gave an overview of the stock market and investing safely – a topic in which many students expressed interest.

“I was pleasantly surprised at some of the great questions that students asked during the session on investing,” says Jim Brendel, CPA, who, along with other members of the COCPA Financial Literacy Committee, joined the DU group to provide instruction at the workshops.

In March, students dove into managing risk, learning the ins and outs of renting and purchasing auto and health insurance. Building on the skills acquired in previous workshops, students explored how different types of insurance policies can protect their property – whether a cell phone or new car – and how to decide when purchasing insurance makes sense. Throughout the presentation and activities, students asked important questions, picking apart the differences between deductibles and premiums across a variety of types of insurance.

Although many of the students are still a few years from renting an apartment, paying for college or buying a car, there is a clear benefit to learning the basics ahead of time. Sajit Khadka, an accountancy graduate student

who helped run the workshops, says the lessons can’t come too early: “It’s important that students have hands-on experience with this. These topics are very new to some of them, but if you build these skills early on, it makes it easy to understand.”

Brendel says that students’ response to the curriculum ranged from enthusiasm to intimidation, and he was pleased with their level of engagement. “After the session on budgets, I asked the students what they had learned that they didn’t know before the class. In two different classes, the first response was the same: ‘I learned that life is really expensive!”

Following the last workshop, students from Aurora Science & Tech rode the light rail to DU for a campus tour, information session, and lunch. This opportunity came several days before many of them took the PSAT, which determines eligibility for National Merit Scholarships.

When the students enter 10th grade next year, Lassar plans to provide a new series of workshops that build on the lessons offered this year

– a plan that will allow them to tackle increasingly complex topics each year until they graduate. “The goal is that exposure this year will enable the students to ask strong questions next year. They might have conversations about it with their families and bring those questions back into the classroom,” she says.

Lassar hopes this program will highlight the value of financial education for secondary school students. “In most schools,” she says, “they are not getting any of this.”

Adapted with permission from the University of Denver.

COCPA Financial Literacy Committee members Phil Darcy and Caitlyn O’Neil, CPA, also participated in the financial education workshops. Brendel and Lassar are teaching a similar series for Boys Hope Girls Hope Colorado scholars at Regis Jesuit High School. To learn more about the Financial Literacy Committee’s activities, contact Stacy Svendsen at stacy@cocpa.org.

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Welcome, New COCPA Members

The COCPA welcomes the following members, who joined in February and March 2023.

FELLOW MEMBERS

Jesse Bowens

Emily Calzolari

Eric Harris

Jenna Haynes

Ruby Kamm

Nicholas Lewis

Patrick Lewis

Jill Lezama

ASSOCIATE MEMBERS

Anastasia Dvoeglazova

Amy Eden

STUDENT MEMBERS

James Andrews

Beth Backora

Ofori Boateng

Lauren Coffman

Emmalee Dekkers

Derek Deslauriers

Ann Lor

Carl Lynch

Kimberly Martinez

Susan Owen

Jeremy Page

Alexander Polzin

Hayley Porter

Frank Quintieri

Melissa Roider

Louann Sakala

Todd Snyder

Jonathan Solsbery

Hannah Thaw

Emilie Vondracek

Troy Wells

Katherine Williston

Know any of these members? Reach out and welcome them to our community!

Teresa Fritts

Nicole Matthews

Dimitrinka Negrete

Brian Wilkerson

Amanda Karger

Lingye Kong

Caitlen Krause

Josephine Le

Jung "Esther" Lee

Latrice Lewis

Luke Morales

Mateo Norbut

Claire O'Mara

Juanita Rose Quengua

Alyson Robbins

GET INVOLVED | GET CONNECTED

New members, are you looking for a way to get involved, meet others, and connect with your new professional community? Whether your passion is serving on a committee, participating in a special-interest group, or bettering your community, find the opportunity that speaks to you and join in!

Visit cocpa.org/get-involved to learn more.

Navigating the Mazes of Social Security and Medicare: Challenges and Tips

BY NATALIE ROONEY

On the surface, Medicare and Social Security seem so simple: you reach a certain age, you collect money, you get healthcare, the end. Unfortunately, it’s not that easy, and what you don’t know can have long-term financial ramifications – for you and your clients.

Social Security plays a vital role in giving millions of retirees the money they need to pay for their living expenses, but figuring out the intricacies of the program is so mind bending that many people make key mistakes that impact their finances for the rest of their lives.

“There’s this sense that you simply call up the Social Security Administration (SSA) or go online and check a box, and your benefits just happen,” says COCPA member Scott Ranby CPA, CFP®, principal and senior wealth advisor at Kuhn Advisors Inc. “People assume that the government somehow knows how all of the rules and circumstances apply to them. It’s underappreciated how much individuals should prepare themselves. You don’t have to be an expert, but you do have to do your homework so that when you hear back from Social Security, you can validate the information.”

It’s important to know that when you contact a Social Security office, front-line employees aren’t trained to help callers figure out the right scenario for them to begin collecting. “Those employees aren’t going to ask why you’re claiming at 62,” Ranby cautions. “That’s beyond their scope of ability, and it’s not their function. They’re available to turn it on and generate an amount. Period. The government isn’t going to figure out the best choices for you. Ask to talk to a manager if something doesn’t sound right.”

Theodore J. Sarenski, CFP®, PFS, AEP, is a wealth advisor with Sage View and the author of The CPA’s Guide to Social Security, distributed by the AICPA. He says the decision about when to take Social Security goes well beyond deciding at what age to begin collecting, especially since the rules continue to change. “There are a lot of options, and the decision is very individualized,” he explains. “It’s especially confusing for two-earner families. Everyone needs to examine ways to maximize what they’ll get from the system.”

SOPHISTICATED ANALYSIS

Ranby says there’s always the temptation to begin collecting right at full retirement age, which varies by birth year, but one analysis that he performs for clients compares what happens when you delay drawing Social Security and live off your savings versus beginning to draw Social Security. “You can’t make a decision in a vacuum,” he explains. “When someone asks me when they should start drawing Social Security, I ask about their family situation, income, other assets in their portfolio, and how they invest. Social Security is viewed as part of that overall asset allocation.”

Software that factors in life expectancy and expected benefits creates scenarios so that clients can examine what might happen with their benefits based on their life expectancy. While it doesn’t provide an ironclad answer, it’s a helpful starting point.

Ranby works to dispel the many myths around Social Security, including automatically waiting until age 70 to begin collecting –even when someone says their family history indicates a shorter life expectancy. It all comes down to the analysis. “The process is so personalized, and everyone’s situation is different,” he says.

Sarenski emphasizes that most people aren’t aware of all the different options and decisions, and there’s very little education for either Social Security or Medicare. “It’s difficult for people to figure out what’s best to do,” he says. “There are so many computations to take into consideration when analyzing when someone should start collecting, especially for couples. CPAs can be a big help in computing the best benefits.”

Even with 15 years of experience navigating the Social Security system, Sarenski says when he helped his wife begin her benefits, it took him nearly 45 minutes to get through the online process. “And I know what I’m doing,” he says.

As clients turn 60, Sarenski initiates discussions about their options. Will they continue to work? Will their spouse continue to work? He advises that everyone create a My SS Account on SSA.gov if they haven’t already. “It gives you the information you’re going to get at 62, full retirement, and a sliding scale of everything in between,” he says. “Looking at all the information helps us help them decide what’s best for them. There are all sorts of rules for a deceased spouse, disability, etc., that people just don’t know about.”

AND THEN THERE’S MEDICARE

James Sullivan, CPA, PFS, holds group Medicare sessions for clients who are about to turn 65. “They receive junk mail and phone calls about it, and it’s confusing,” he says. “I wanted to educate them as simply as I could.” He used his expertise to author the AICPA’s Guide to Retirement & Elder Planning: Healthcare Coverage Planning, which is now in its sixth edition.

Sullivan says most people don’t realize that the most difficult aspect will be transitioning from a group health plan to Medicare, and for some clients, matters will be complicated by continuing to work beyond age 65 when they can stay on their employer’s health plan or go onto Medicare. “They have to understand the difference between

the two plans,” he says. “The big difference is the group health plans employers provide tend to have high deductibles while Medicare does not.”

The analysis Sullivan conducts for his clients includes the development of an in-depth matrix comparing each Medicare option.

Currently, the four parts of Medicare are:

Medicare Part A. Medicare Part A is hospital insurance. It covers you during short-term inpatient hospital stays and for services like hospice. It also provides limited coverage for skilled nursing facility care and certain in-home healthcare services.

Medicare Part B. Medicare Part B is medical insurance that covers care needs like doctor’s appointments, urgent care visits, counseling, medical equipment, and preventive care.

Medicare Part C. Medicare Part C is also called Medicare Advantage. These plans combine the coverage of parts A and B. Most also include prescription drug coverage, part D. Medicare Advantage plans are offered by private insurance companies and are overseen by Medicare. The most popular plans are either Preferred Provider Organizations (PPOs) or Health Maintenance Organizations (HMOs).

Medicare Part D. Medicare Part D is prescription drug coverage. Part D plans are stand-alone plans that only cover your medications. These plans are also provided through private insurance companies.

Together, parts A and B are often called original Medicare. All four parts each have their own costs, including deductibles, copays, and premiums.

Several years ago, Sullivan experienced a health crisis that gave him new insight into the intricacies of Medicare. Now he uses his experiences to walk clients through the Medicare discussion and comparison before

"Looking at all the information helps us help them decide what’s best for them. There are all sorts of rules for a deceased spouse, disability, etc., that people just don’t know about."

CONTINUED FROM PAGE 15

they’re eligible at age 65. He completes the analysis of each Medicare program for the client’s geographical area. “If they have the option to stay on an employer plan, we review those terms as well, and talk about what it all means. By the time they’re done with these sessions, they have a better grasp of their options and preferences,” he says. The good news is that Medicare offers more flexibility than many people think; you can make changes to your elections during the annual enrollment period. Sullivan uses that time period to reconnect with clients and discuss whether they’re happy with their coverage and if there’s anything he can do to improve it.

Medicare is complex, and it involves one of the most important decisions CPAs and their clients are going to make: healthcare after retirement. Sullivan advises CPAs to become knowledgeable about the various choices available to their clients or bring in someone with the expertise. “I always tell clients that money is secondary. Quality of healthcare overrides everything.”

ADVICE FOR CPAS AND THEIR CLIENTS

Whether you’re examining your clients’ options or your own for either Social Security or Medicare, here are a few things to consider: Start early. Don’t wait until you want or need either Social Security or Medicare to figure out your options. For Social Security, determine when you think you don’t want to work anymore, and then consider what might happen if you’re laid off or you can’t physically or mentally get to that point. “You may want to work until a certain age, but you might not make it,” Sarenski cautions. “That changes your plan.”

Ranby encourages people to start thinking a year or two prior about how claiming Social Security at various ages will impact cash flow and change their investments. “Spending time modeling different scenarios and talking it out with a professional makes good sense,” he says.

Analyze statements. If you’re a couple, determine whose benefit is higher. Don’t go past 70, and know that waiting until the last possible moment isn’t always your best bet. “Each couple has to determine their own breakeven,” Sarenski says. “You want to delay, but you might not want to delay until 70 because of your spouse. You’ve got to do those computations.”

Get expert help. Yes, even if you’re a CPA, if Social Security and Medicare aren’t in your wheelhouse, seek out an expert – for yourself and your clients, Ranby advises.

“When I present this material, even CPAs comment on how much more complicated it all is than they thought it would be,” Sarenski says. “There is so much misinformation out there, and the rules continue to change.”

Ranby emphasizes that there’s no one-size-fits-all answer to either Social Security or Medicare. “There’s no right or wrong. Software shows you what will happen with various decisions, but there are so many qualitative factors, and people’s lifestyle decisions impact everything,” he says. “It’s important to help people realize they have to commit some time and energy to researching what’s best for them. It has long-term ramifications.”

CO CPA

GROW your leadership skills & network with other young professionals

LEADFIT 2023, AN INNOVATIVE LEADERSHIP

DEVELOPMENT PROGRAM sponsored by the Colorado Society of CPAs, is specifically designed to give you the knowledge, skills, and practice to achieve your personal and professional goals. Also built in are plenty of opportunities for networking, problem solving, and sharing experiences with your LeadFit colleagues.

Session Dates

JULY 21

8:30 am-5 pm

AUGUST 25

8:30 am-12:30 pm

OCTOBER 6

8:30 am-12:30 pm

NOVEMBER 2

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8:30 am-5 pm

ChatGPT Offers the Capacity for Improved Efficiency and Automation

BY RICHARD CROCKETT

Considerable attention has surrounded ChatGPT, a sophisticated artificial intelligence (AI) chat program, since its November 2022 launch. Accessed via web browser, ChatGPT is capable of natural speech and conversation, learning from the feedback of those with whom it interacts. GPT, or “generative pretrained transformer,” is a type of large language model neural network that can perform various natural language-processing tasks.

ChatGPT also remembers conversations and understands their context unlike any previous chatbot or virtual assistant, such as Siri, Google, or Alexa. This is what has led to a lot of the hype surrounding ChatGPT. If you haven’t had the chance to use it, give it a try. Its ability to converse really is that good.

Amidst all of these capabilities, some have wondered, “Will ChatGPT take my job?” The answer is no … at least not yet, depending on the long-term goals of Open AI, ChatGPT’s developer. However, ChatGPT offers the potential to save time and boost efficiency within many professions, including accounting. It can provide direct answers to both simple and complex questions, and provides good – and sometimes extremely detailed – feedback in a usable format. From there, it will continue its conversation with you as though it were a knowledgeable person in your field of work. And it does all of this without ads!

Like many other AIs, scripts, and automations, ChatGPT can also be a helpful and proficient tool personally, such as when making consumer decisions and gathering product information. (It is important to note that for now, ChatGPT’s information dates back only to September 2021.)

For the time being, you don’t need to worry about ChatGPT taking your job. However, as it continues to grow and learn, the potential exists for it to improve overall workplace efficiency by completing some traditionally human-performed administrative tasks as an interactive agent on your business’s behalf. Beyond that, it is difficult to predict these types of outcomes until we see more of what it can do in the coming months.

WHAT DOES IT HAVE TO SAY ABOUT TAXES?

I asked ChatGPT some questions about tax preparation to see how it would respond.

QUESTION: Can you do my tax return?

Response:

As an AI language model, I'm not authorized to do tax returns or provide tax advice. Tax returns require personal information and expertise in tax laws and regulations that vary by jurisdiction, and only authorized professionals with the appropriate credentials can provide such services.

I recommend seeking the assistance of a licensed tax professional, such as a certified public accountant (CPA) or tax attorney, who can guide you through the tax filing process and ensure that your return is accurate and compliant with the relevant laws and regulations.

QUESTION:

What is the best way to save money on my Colorado tax return?

Response:

The best way to save money on your Colorado tax return depends on your individual circumstances and the deductions and credits that you may be eligible for. Here are a few general tips that may help you reduce your tax liability in Colorado:

Itemize your deductions: If your itemized deductions are higher than the standard deduction, you may be able to reduce your taxable income and save money on your Colorado tax return. Some common itemized deductions include state and local taxes, mortgage interest, charitable contributions, and medical expenses.

Contribute to a retirement account: Contributions to a qualified retirement account, such as a traditional IRA or a 401(k), may be

deductible on your Colorado tax return. This can lower your taxable income and reduce your tax liability.

Claim tax credits: Colorado offers various tax credits, such as the child care credit, earned income tax credit, and education credits, that can help reduce your tax liability. Make sure to review the eligibility requirements for each credit to determine if you qualify.

Take advantage of tax-free savings: Colorado offers tax-free savings accounts, such as the 529 College Savings Plan and the Achieving a Better Life Experience (ABLE) program, that allow you to save for education and disability expenses without paying state taxes on the earnings.

It's important to note that tax laws and regulations can be complex and change frequently. I recommend consulting with a licensed tax professional or utilizing tax software to ensure that you are claiming all the deductions and credits that you are eligible for on your Colorado tax return.

Regenerated response:

There are several ways you can potentially save money on your Colorado tax return. Here are a few:

Contribute to a Colorado 529 College Savings Plan: Contributions made to a Colorado 529 College Savings Plan can be deducted from your Colorado state income tax. The maximum deduction is currently $5,280 per taxpayer per beneficiary.

Claim charitable deductions: If you made donations to qualifying charitable organizations during the tax year, you can claim a deduction on your Colorado state income tax return.

Claim the Earned Income Tax Credit (EITC): The EITC is a tax credit for low- to moderate-income taxpayers. If you qualify, you can claim the credit on your Colorado state income tax return. The amount of the credit depends on your income, number of children, and filing status.

Take advantage of business-related deductions: If you are a self-employed individual or a small business owner, you may be eligible to claim deductions for business-related expenses such as home office expenses, business equipment, and travel expenses.

It's important to note that tax laws and regulations are subject to change, and it's always a good idea to consult with a licensed tax professional who can provide guidance specific to your situation.

GIVE AI A TRY

I encourage you to learn more about ChatGPT and other forms of AI, and embrace them as tools that may assist you both personally and professionally.

Richard Crockett is the Business Success Manager at ContactPC in Englewood. Reach him at richard@ContactPC.com. To learn more about or join the COCPA Technology Users Group, contact Stacy Svendsen at stacy@cocpa.org.

Summer of Fun

summer months with other members. After the success of 2022, we are gathering together this year for four special events. You will not want to miss this opportunity for serious summer fun with COCPA!

MAY 31

Wine Tasting: Bigsby's Folly

JUNE 28

Pickleball: The New Happy Hour

JULY 28

Baseball & Networking

AUG. 31

Brewery Tour: Breckenridge

LEADERSHIP EFFECTIVENESS TRAINING SERIES

Better work environments start with better leadership. Which means better, more fun, more effective work can start with you. This 5-session series equips you with new ideas

Confidence & skills to attract talent & engage your team

16 CPE Credits

Strong Character is Key to Organizational Success

BY DAVE ANDERSON

Each year, corporations spend $50 billion – and counting –on leadership training and development, and more leadership books than ever are on the market. And yet, employee engagement scores remain unchanged while employees’ trust in their leaders continues to slide.

That’s because employing the leadership strategies and solutions laid out in many of today’s books and workshops is synonymous with offering cough syrup to a pneumonia patient. While the cough syrup may temporarily quiet the patient’s cough, we’re not treating its underlying cause or disease.

In short, what we are doing to develop leaders is not working. We are treating the symptoms and ignoring the disease.

CHARACTER IS THE KEY

The symptoms of poor organizational leadership may include lack of trust, poor communication, ineffective goal setting, high employee turnover, strong implicit bias, and dysfunctional teams. And the underlying disease – the root cause of our leadership woes – is poor

character. To turn things around, strong character must be at the foundation of the organization.

Most of what we call leadership training is really management training. This is not bad; managerial competencies are important for any leader. Leadership is a blend of competence and character. Competencies – which we define as “knowing what to do and how to do it” – include the skills that we develop through school, professional licensure, and other endeavors. Every leader must know what to do and how to do it.

MOST LEADERSHIP FAILURES ARE CHARACTER FAILURES

Consider the biggest leadership failures in history, in modern culture, or even failed leaders whom you have personally encountered. How often did those leaders fail because they didn’t know what to do or how to do it? Most leaders fail not for a lack of competency, but because at the moment they are tested with a choice between the correct – but more difficult – option and the wrong – but easier – one, their character fails them and they choose the latter. But what are we doing to prepare ourselves and future leaders for those difficult choices?

Strength of character flows from two critical habits: courage and humility. Without courage and humility, other critical habits – integrity, selflessness, duty, and positivity – will continue to be the stuff of well-meaning platitudes rather than character-changing behaviors.

EXERCISING OUR CHARACTER

Character is like a muscle: We must exercise it amidst the small tests at both work and home so that we are ready for the big tests that we will inevitably face going forward. Exercising the courage to have a tough conversation with a peer or a supervisor is a character test. Exercising humility when we receive difficult feedback is also a character test. No matter who we are or what position we hold, character tests present themselves daily. And those tests give us an opportunity to strengthen our character for the bigger tests that will surely follow. The great news is that our character – the sum total of our habits, formed through our choices – is 100% within our control. Each time we make a choice, it becomes easier to make the same choice again. That’s how habits are formed: one choice at a time. That puts us squarely in charge of our character.

Dave Anderson, who owns Anderson Leadership Solutions in Tyler, Texas, is the featured speaker at the 2023 COCPA Leadership Summit, June 22 at the Curtis Ballroom, Greenwood Village. Anderson, who spent 20 years leading teams in a Fortune 50 company, will discuss how to develop each of the six habits of character, applicable both at work and at home. To learn more or to register, visit cocpa.org/LeadershipSummit.

Leading in the World’s Most Trusted Profession Leaders of Character:

June 22, 2023 • In Person • 8.0 CPE

With great trust comes great responsibility. Character is of the utmost importance in the accounting profession. The COCPA invites you to its 2023 Leaderhip Summit, where you’ll learn what it means to lead with character. Prior to the Summit, participants will complete an online character assessment to guide their learning and reflection.

Dave Anderson, author of Becoming a Leader of Character, will offer a four-hour workshop covering the six habits of character, followed by a panel discussion with professional leaders who will offer honest conversation about defining ethical moments in their career. You’ll want to stay for the networking reception afterward.

Register today at cocpa.org/LeadershipSummit.

Encouraging Sustainability in Accounting Education

BY NATALIE ROONEY

Today, sustainability and environmental, social, and governance (ESG) issues are hot topics in the accounting and finance world, but the issues themselves have been around for decades. As the focus on ESG evolves, accounting educators play a critical role in introducing students to what they might see on the job.

DEVELOPING SUSTAINABILITY STANDARDS

Companies and organizations continue to realize the growing importance of sustainability and ESG issues to stakeholders, and many are already working to address those issues.

At first, investors pushed companies to disclose details such as greenhouse gas emissions, employee diversity, and turnover. More recently, investors have been asking companies to demonstrate progress on meeting ESG goals and then tying that progress to executives’ incentive plans. As a result, how ESG issues are measured and reported is becoming a more significant part of management conversations. The challenge: Non-financial data historically has been difficult for people to understand, measure, and benchmark.

Over the past few years, sustainability and ESG frameworks and assessments gradually have provided a more straightforward way to report data. In March 2022, the SEC announced proposed rules for public comment that would require public companies to disclose greenhouse gas emissions. Reaction has been positive from consumers, investors, and analysts, but companies have raised various issues and concerns.

In August 2022, the International Financial Reporting Standards (IFRS) Foundation announced the consolidation of the Value Reporting Foundation (VRF) into the IFRS Foundation. This move follows the commitment to consolidate staff and resources of leading global sustainability disclosure initiatives to support the IFRS Foundation’s new International Sustainability Standards Board’s

(ISSB) work to develop a comprehensive global baseline of sustainability disclosures for the capital markets.

The VRF’s Sustainability Accounting Standards Board (SASB) Standards serve as a key starting point for the development of the IFRS Sustainability Disclosure Standards, while the Integrated Reporting Framework provides connectivity between financial statements and sustainability-related financial disclosures.

The IFRS Foundation’s International Accounting Standards Board (IASB) and the ISSB now assume joint responsibility for the Integrated Reporting Framework. The organizations are working together to agree on how to build on and integrate the Integrated Reporting Framework into their standard-setting projects and requirements.

GROWING DEMAND

Former FASB Chair Robert Herz has been addressing sustainability issues for the accounting profession since the 1980s, when he was an audit partner at Coopers & Lybrand (now PwC). He has worked extensively with both the SASB and International Integrated Reporting Council from their earliest days.

“I performed due diligence reviews on potential acquisitions for private equity and corporate buyers,” Herz says. “Even back then, the information we gathered wasn’t only about financial matters but also what drove the success and weakness of a company. We found things that weren’t directly captured, such as how well a company interacted with its customers, how they treated employees, and environmental issues. We started to become more aware about how these things drive a company’s success and failure. We reported our findings to the potential buyers and discussed what they could do to address the issues and capitalize on the strengths.”

Herz says he was struck by how financial performance was being driven by a lot of nonfinancial factors. “Ultimately, we’ve seen this evolve into what we now call ESG,” he says. “But to me, these are really business issues.”

Herz says that in the 1990s, a broader recognition of the importance of these non-financial factors began to emerge but still not around ESG as we talk about it now. Rather, conversations related to customers, employees, a company’s ability to innovate, speed to market, and management capabilities, to name a few. Climate issues were recognized and accepted more quickly outside the United States. “As we continue to see social issues reflected in changes in society, there’s a coming of a new generation that’s more focused on these kinds of things,” Herz says. “They have become real business issues as CPAs are being called to measure, accurately report, audit, and advise on ESG issues. It’s a whole new

realm for the accounting world and opens up all sorts of opportunities.”

BACK TO SCHOOL

What’s the best way to grow knowledge of sustainability and ESG issues from the ground up? It starts in the classroom with accounting educators, Herz says. “They’re educating the workforce and citizens of the future. We need to equip these young people for business and society.”

Accounting departments frequently contact Herz to speak to students. “I ask them what presentation topic they prefer: accounting standards or sustainability and ESG issues and how they’re impacting the auditing and reporting world,” he says. “They consult with their faculty and students, and they almost always come back with the sustainability preference. More and more students are finding it an interesting and relevant topic.”

Despite the interest from the younger generation, Herz says educator reaction about the importance of sustainability and ESG varies. “Some are still skeptical,” he observes. “But universities are starting to think about these concepts at both the undergraduate and graduate levels.” In general, he’s seeing more ESG courses offered and not just in accounting departments. The organization formerly known as SASB partnered with Marquette University to offer a comprehensive four module, non-credit program to prepare business leaders for a career in sustainability management and investing.

Columbia University partnered with its own Earth Institute entity to create several undergraduate programs designed around embedding sustainability curricula into overall course offerings. At the graduate level, Columbia offers many different courses around sustainability, including management investing. The Earth Institute also founded the Climate School within Columbia itself.

However, while schools are beginning to offer courses, they’re still not considered mainstream.

Herz encourages faculty and students first to gain a good grasp of what the ESG issues are before moving on to learn the various reporting frameworks. “Know the top 10 environmental and social issues,” he advises. Then he encourages developing an understanding of the SASB standards, followed by the Global Reporting Initiative (GRI) standards and the Task Force on Climate-Related Financial Disclosure (TCFD) in concert with the Greenhouse Gas Protocol and reporting carbon emissions.

A NEW VIEW OF THE FUTURE

Five years ago, Herz and his colleagues produced a study paper on applying the Committee of Sponsoring Organizations (COSO) Internal Control Integrated Framework to sustainability data to ensure its accuracy. “Our view was that it was time for accountants, finance people, and internal auditors to become involved in this realm,” he says. “We were seeing it in other parts of the world but not so much in the United States.”

Fast forward five years and sustainability has become the top issue for boards and CEOs. “Now they all want to be involved,” Herz says. “When I used to speak about these issues at the annual AICPA conference on SEC and PCAOB matters, I’d be on a panel scheduled on the last day. People left to go home. Now these issues are prominent on agendas, and it’s standing room only. Things have changed.” While there is an increased burden that comes with measuring and reporting on ESG issues, that’s what ultimately changes behavior, Herz says. “If you believe these are real business issues, you should be reporting on them. Investors have been quite clear that they want this information, so faculty and students should be immersing themselves in these issues. Students seem to embrace it more naturally. It’s their view of the future and the world.”

The COCPA ESG Working Group is exploring the development of an integrated report for the Society. For more information on the group, contact Stephanie Bass at stephanie@cocpa.org.

Columbia University partnered with its own Earth Institute entity to create several undergraduate programs designed around embedding sustainability curricula into overall course offerings.

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Winning Back Our Healthcare Workers

BY NATALIE ROONEY

While finding – and keeping – a skilled workforce is an issue facing every sector, no area has been harder hit or faced bigger challenges over the past two years than the healthcare industry. How are healthcare leaders caring for their teams and keeping them happy, engaged, and coming to work as we continue to emerge from some of the most challenging times in history?

A RECORD NUMBER OF DEPARTURES

According to the U.S. Bureau of Labor Statistics, the healthcare industry has lost nearly one million workers since February 2020. Data from Nursing Solutions Inc. found that since 2016, hospitals have turned over about 83% of their nurses and 90% of the overall workforce. By 2030, the World Health Organization projects a worldwide workforce shortfall of about 18 million healthcare workers.

Maureen Tarrant, president and CEO of Presbyterian/St. Luke’s Medical Center (P/SL) and Rocky Mountain Hospital for Children (RMHC), says staff departures have been worse in some areas than others, and the hospital has been working diligently to address the loss of staff. In the early days of the pandemic, healthcare workers were celebrated, but over time, that changed, giving way to hostility from some patients and families who took out their frustration on frontline workers. “It has been a very long journey,” Tarrant says. “When you combine all of that with the Great Resignation, it has been really hard."

In addition, one of nursing’s greatest perks – flexibility – allowed nurses to press the pause button on their careers during the stress of the pandemic. “As a nurse, you can decide how many shifts in a month you want to work based on your personal life,” Tarrant says. “You can move almost anywhere and secure a job.” Nurses, who were also the primary caregivers for their children, often had to, or made the choice to, stay at home to support their children who attended school virtually during COVID. Tarrant says that the ability for nurses to take a break from their career and return when they were ready was another driver behind departures.

COACHING FOR RETENTION

Amy King is vice president and executive coach for MEDI Leadership, the largest executive coaching firm in the nation dedicated exclusively to healthcare. She is also a former senior vice president and chief people officer at Centura Health, and serves on the COCPA Board of Directors. As the result of myriad issues facing healthcare

organizations today, King says she has seen an uptick in the number of healthcare organizations using coaching as a retention tool for the success, growth, and learning of their leaders.

“Organizations either have a positive or negative stigma toward coaching,” King says. When coaching is used as a repercussion for poorly performing individuals, the stigma is negative. But when it’s used around retention, succession planning, and growth, there is a positive mindset. “That’s when it’s really fun – when you’re focusing on success,” she says. “It shows that an organization is investing in you as an employee and a leader.”

King is seeing more and more healthcare organizations bring in coaching as part of their retention strategies. “Being a leader in this environment is challenging. Leadership competencies have shifted. How do you support a team when many of them are working virtually? How do you address healthcare worker burnout? Different leadership skillsets are required today. Coaching is a journey of self-discovery, helping individuals and teams “build muscle” in areas requiring focus. It’s not advising or consulting, rather it's walking alongside them on their journey. It’s asking the right questions so they can discover what’s necessary in their leadership and what is needed for their teams,” she says.

Part of King’s coaching includes showing up authentically and being front and center with empathy so leaders know how to listen with presence and empathy. “That’s when they get the attention of the individual they’re talking with,” she explains. “When people have been stressed and taxed for this long, providing a thank you is great, but when leaders listen and are present, they’ll hear what’s not being said easily. Right now, they will hear hurt, mental and physical exhaustion, and lots of emotion. People want someone to understand that and help them reconnect.”

King emphasizes that even as the pandemic has quieted, new issues continue to arise. They create staffing issues such as the need for treatment of cardiovascular issues, orthopedics, and elective surgeries that have been on hold. “We still don’t have the number of healthcare

WORKFORCE ISSUES

CONTINUED FROM PAGE 27

providers we need in these spaces,” King says. “We have yet another situation where we’re going to experience higher labor wages in those areas versus the ICU. It’s still a concern. There’s pent-up demand but not enough resources to manage or handle it.”

CREATING CAREER PATHS

As COVID numbers have dropped, people are starting to come back to healthcare work. There was somewhat of a silver lining that occurred during COVID: While many people resigned from the profession, others took time to reflect on their lives and consider whether their career was fulfilling. “That has created more people who are considering going back to school for a new career in nursing,” Tarrant says. P/SL and RMHC are owned by HCA Healthcare, which operates 183 hospitals in the United States and London. The company partners with Galen College of Nursing, one of America's largest private colleges of nursing. There are already multiple Galen College of Nursing locations throughout the United States, and locally, a new one will open in Fall 2023 on the campus of the Medical Center of Aurora.

Tarrant says HCA Healthcare expects to be the largest nursing educator in the nation within five years. “We’re going upstream and creating an educational pipeline,” Tarrant says. “We hope the students attending will have an affinity for our hospitals, our company, our best practices, and our rotations that they develop over the course of their education.”

In addition, Tarrant says the hospital also is aggressively creating career paths for its people. In 2021, the nursing turnover rate was 14%, but Tarrant says that would have been closer to 20% had they not responded to nurses who said they wanted to get experience in other specialties. “We took that 6% who would have left the profession and gave them other clinical and non-clinical opportunities. Supporting them through a deliberate career path and development was critical.”

Entry-level individuals also are provided with resources, training, and education to allow them to move into higher level clinical paths, such as a patient safety attendant or Certified Nursing Assistant attending nursing school to become an RN. “We also offer shadowing opportunities to our colleagues to see if there is a job they might like and then encourage them and provide resources to help them achieve their goals,” Tarrant explains.

There is also a robust diversity, equity, and inclusion initiative. The hospital’s central Denver location provides the ability to reach out to many different populations in the urban community and offer support for career and leadership development to fill the pipeline.

A FOCUS ON MENTAL AND PHYSICAL WELLNESS

Internally, P/SL and RMHC are working to bolster employee wellness – both physically and emotionally. Employees have access to the Progressive Health Center (PHC), a Denver nonprofit helping healthcare teams relieve stress and job burnout. PHC is dedicated to the concept of wellness within reach, where mind-body relief is both affordable and available, just a few steps away from the hospital work site with access to things like acupuncture, aromatherapy, health coaching, massage therapy, nutrition, and yoga and fitness classes. The Employee Wellness Lounge is located inside the hospital and is used by more than 500 employees each month.

Remote work is available to some employees, and that has helped with retention, but in a nursing environment, remote work just isn’t

possible. That’s where the Roaming Wellness program is so beneficial. Massage therapists visit departments to give massages during breaks. “Even if it’s for 10 minutes, it’s appreciated,” Tarrant says. The hospital also offers a concierge service for employees to help with things like picking up groceries and dry cleaning, or car maintenance and service. Employees can even enjoy pet therapy when a local puppy adoption company visits the hospital. “It’s a beautiful event, and everyone loves it,” Tarrant says. “It’s a break for our colleagues, and sometimes they adopt the puppies.”

A thank you note campaign is designed to let healthcare workers know that the community still supports them.

While the hospital did increase compensation and institute special pay practices and bonuses, Tarrant says it has been important to know what touches the staff in other ways that really matter. “The key in all of this is finding out what the staff really wants. We’re constantly asking, ‘what else can we do to support and thank you?’” Tarrant says. “We want to fill up their tanks so they can do the meaningful work they’ve been called to do.”

THE COLORADO CHALLENGE

While the Centennial State has faced workforce challenges just like any other state, one thing sets Colorado apart: the cost of housing. “When we looked at reasons behind departures, one category was people who said they were moving to a place with more reasonably priced housing,” Tarrant says. “In general, there were a lot of people who were pressing pause on their careers to think about life and make changes, but the housing issue was unique to the Colorado market.”

Despite Colorado’s high housing costs, Tarrant says Denver remains attractive. “The same pause that people took to ask themselves where they wanted to live and ‘where would I be happier?’ was actually answered – ‘here.’”

PREPARING FOR THE FUTURE

Looking forward, King says it’s important to ensure that the higher education curriculum helps to prepare the healthcare industry for ongoing crisis challenges. Things like crisis management, change leadership, and how to combat burnout and build resiliency are critical. “We need to help people through education so they know and understand what they might be headed for in these crisis situations, whether that’s a pandemic or a mass shooting.”

King also suggests more discussion and investment in mental health, especially thinking differently about wellness programs as engagement programs. “There is research linked to proper physical and nutritional health that feeds into better mental health,” she says. “If more organizations invest time and offer that type of opportunity to people, they’ll see a big shift. Thinking differently about the wellness of our people is a critical link to physical and mental health.”

Tarrant says lessons learned during COVID taught P/SL and RMHC that compensation is important, but there’s also a lot more that employers can provide. “There are so many things that can give people outlets to lead a healthy and fulfilled life –whether that’s working part-time at home or hugging a puppy. There are qualitative and quantitative answers that are unique to companies and industries, and that's something we’ve worked diligently to understand. Knowing we care about our people is so important. And you can never say ‘thank you’ enough.”

stronger strategies for a COMMUNITY

May 18, 2023

Greenwood Village + Online CPE: 8.0

This annual conference is built to address challenges, risks and opportunities relevant to the professional Not-for-Profit community.

Attendees will not only receive expert insight into the unique financial aspects of nonprofits, but also provide leadership tools to move organizations forward.

WE WALK THE TALK.

WE WALK THE TALK.

CAMICO knows CPAs, because we are CPAs.

CAMICO knows CPAs, because we are CPAs.

Created by CPAs, for CPAs, CAMICO’s guiding principle since 1986 has been to protect our policyholders through thick and thin. We are the program of choice for more than 8,700 accounting firms nationwide. Why?

Created by CPAs, for CPAs, CAMICO’s guiding principle since 1986 has been to protect our policyholders through thick and thin. We are the program of choice for more than 8,700 accounting firms nationwide. Why?

CAMICO’s Professional Liability Insurance policy addresses the scope of services that CPAs provide.

CAMICO’s Professional Liability Insurance policy addresses the scope of services that CPAs provide.

Includes unlimited, no-cost access to specialists and risk management resources to help address the concerns and issues you face as a CPA.

Includes unlimited, no-cost access to specialists and risk management resources to help address the concerns and issues you face as a CPA.

Provides potential claim counseling and expert claim assistance from internal specialists who will help you navigate the situation with tact, knowledge and expertise.

Provides potential claim counseling and expert claim assistance from internal specialists who will help you navigate the situation with tact, knowledge and expertise.

Does your insurance program go the extra mile? Visit www.camico.com to learn more.

Does your insurance program go the extra mile? Visit www.camico.com to learn more.

PROFESSIONAL LIABILITY INSURANCE AND RISK MANAGEMENT SOLUTIONS

Alpa (Keily) Evans, Account Executive

T: 800.652.1772 Ext. 6720

E: aevans@camico.com

W: www.camico.com

Accountants Professional Liability Insurance may be underwritten by CAMICO Mutual Insurance Company or through CAMICO Insurance Services by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. ©CAMICO Services, Inc., dba CAMICO Insurance Services. All Rights Reserved.

CPA PROFESSIONAL LIABILITY INSURANCE AND RISK MANAGEMENT SOLUTIONS

CPAs make a DIFFERENCE

NOVEMBER 9, 2023

WESTIN DENVER DOWNTOWN

CELEBRATING THE 2023 Everyday Heroes and Heroines

Each and every day, away from the headlines, in businesses large and small across Colorado, CPAs make a difference. Help us celebrate these contributions by nominating a CPA who should be considered for the 2023 Everyday Heroes and Heroines Awards.

Awards will be given at the November 9 CPAs Make a Difference celebration, held at the Westin Denver Downtown. Join your colleagues for an evening to celebrate the profession, honor recent scholarship winners, and welcome those who’ve recently become licensed in Colorado.

Everyday Heroes and Heroines Award nominees must hold a CPA certifi cate and be a COCPA member in good standing. They also should be “everyday” heroes and heroines who haven’t been widely recognized for their contributions.

Nominees should demonstrate signifi cant service in one or more of the following areas:

INVOLVEMENT

LEADERSHIP

IMPACT

IN MEMORIAM

We extend our sympathy to the family and friends of the following COCPA members:

Marvin P. Johnson

Aurora, Colo., member since 1963

Gale “Pete” Pittenger

Denver, Colo., member since 1975

Edward H. Steinberg

Denver, Colo., member since 1983

CLASSIFIEDS

PRACTICES FOR SALE, PURCHASE, OR MERGER

Selling your practice in 2023 or looking to purchase a practice?

Let’s talk!

If 2023 is your year to sell, please call us today to start the process. Selling your firm is complex. ACCOUNTING BIZ BROKERS can help simplify the process! We have been selling CPA firms for over 18 years, and we know your market. We have a large database of active buyers. We work with industry specific lenders eager to assist buyers with financing. Kathy Brents, CPA, CBI, at 866-260-2793 or Kathy@AccountingBizBrokers.com, or visit our website at www.AccountingBizBrokers.com.

MOVERS & SHAKERS

ALICIA GELINAS, CPA

The University of Denver School of Accountancy named COCPA CEO Alicia Gelinas, CPA, as its 2023 Alumnus of the Year. She graduated from DU in 2003 with a B.S. in accounting and a Master of Accountancy.

HEIDI O’NEIL, CPA, CGMA

Heidi O’Neil, CPA, CGMA, was named Senior Vice President of Financial Accounting at Denver International Airport.

SHARE YOUR NEWS!

Fortune magazine named the following firms to its 2023 100 Best Companies to Work For list:

• Plante Moran (16)

• Deloitte (17)

• Baird (23)

• PwC (30)

Do you have good news to share about your organization, such as a staff promotion, award, or new hire? Send your Movers & Shakers announcements to Kelli Davis at kelli@cocpa.org.

• KPMG LLP (38)

• RSM US LLP (42)

• EY (50)

• Crowe (60)

TAX STUDY GROUPS

Denver Tax Study Group

TUESDAYS, VIRTUAL ONLY

NOON-2:00 P.M., MT

May 23, 2023

June 27, 2023

Future 2023 dates:

July 25, Aug. 29, Sept. 26, Oct. 24, Dec. 5 Register at www.cocpa.org.

Boulder/Longmont Tax Study Group

WEDNESDAYS, VIRTUAL ONLY

NOON-1:00 P.M., MT

June 7, 2023

July 5, 2023

Future 2023 dates: Aug. 2, Sept. 6, Oct. 4, Nov. 1, Dec. 6. For more information, contact Lynn M. Mitton, CPA, MT, MPA, 303-499-7445, or email lmitton@tandemcpas.com.

MEMBERSHIP PROGRAM

Support Your Team. Support the Profession.

The COCPA 100% Membership Program helps save your team time and money. At the same time, it demonstrates your organization’s commitment to the profession. Together, we are 100% strong.

Benefits include:

CONCIERGE-STYLE attention from COCPA’s membership team

RECOGNITION of your firm and team (both online and in print)

DISCOUNTS towards training that helps make your team smarter

STREAMLINED dues processing

So much MORE!

THANK YOU to our 100% Member Firms

Causey Demgen & Moore, PC

Cherry, Ogle & Quinn, PC

Eide Bailly

FORVIS, LLP

Grant Thornton LLP

Haynie & Company

Johnson and Associates, CPAs, PC

Kundinger, Corder & Montoya, PC

Marrs Sevier & Company LLC

MGPM, PC

Moss Adams LLP

Plante Moran LLP

Reese Henry & Company, Inc.

Rubin Brown, LLP

Soukup Bush & Associates

CPAs, PC

WhippleWood CPAs, PC

Learn more about the 100% Membership Program at COCPA.ORG/100-PERCENT