COCPA NewsAccount - Winter 2024 by Colorado Society of Certified Public Accountants

NEWSACCOUNT

At the Board Table: Spotlight on the COCPA 2024-25 Leadership Nominees PAGE 4

The Strength of the Circle: First-Year Reflections PAGE 8

COLORADO SOCIETY OF CPAs • WINTER 2024

COLORADO

Economic Overview: A Look Back at 2023 and Ahead to 2024

COCPA

COLORADO SOCIETY OF CPAS

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NewsAccount | Winter 2024

20 12 Contents

Features 4

At the Board Table: Spotlight on the COCPA 2024-25 Leadership Nominees Meet the members who are nominated to serve, effective May 1, on the 2024-25 COCPA Board of Directors and the Educational Foundation Board of Trustees.

The Strength of the Circle: First-Year Reflections COCPA president and CEO Alicia Gelinas, CPA, reflects on her first year in the role and the strength in community that characterizes the COCPA, its members, and its endeavors.

Making a Difference: The 2023 Everyday Hero and Heroines On Nov. 9, 2023, members of the profession gathered to recognize four individuals for their service to their communities and colleagues. Meet the honorees and learn how each is making a difference.

The Other Side of CPA: Meet Ed Meier, the Skiing Grandpa Ed Meier, CPA (Retired), is still skiing the slopes at age 80, and challenging his grandkids to keep up with him. Meier’s contagious love of skiing has kept his family connected for the past four decades. Colorado Economic Overview: A Look Back at 2023 and Ahead to 2024 The University of Colorado Business Research Division’s recently released 2024 Colorado Business Economic Outlook points to a Colorado economy that should remain resilient despite the persistence of factors such as inflation, elevated interest rates, and slower job growth. ESG: Five Critical Insights in Applying COSO’s Guidance for ICSR Amidst the increasing relevance of ESG disclosures and assurance, two experts offer insights on how organizations can align their ESG efforts with the most recent report from the Treadway Commission's Committee of Sponsoring Organizations (COSO). The first in a two-part series.

27 Departments 2 10 18 26 32

Chair Column Committee Digest DE&I Spotlight Welcome, New Members Movers & Shakers, Classifieds

CONNECT WITH COCPA

Winter 2024 | www.cocpa.org

CHAIR COLUMN

NEWSACCOUNT

Marketing the Profession to a New Generation

A publication of the Colorado Society of Certified Public Accountants Vol. 69, No. 4 Winter 2024

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

Isaac Adamu, Jack Allgood, Paul Elggren, Ken Fichter, Lori Anne Reinwald, Laura J. Theiss, Steve Van Meter, Michael D. West, Charlie Wright Kelli Davis, Editor Sarah Knight, Blue Ocean Ideas, Design

NewsAccount (ISSN #10899952) is published quarterly 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. 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 = 5,447 copies; sales through dealers and carriers, street vendors, and counter sales = 0; paid or requested mail subscription = 5,407; free distribution by mail = 0; free distribution outside the mail = 20; total free distribution = 20; total distribution = 5,427; office use, leftovers, spoiled = 19; returns from news agents = 0; total sum = 5,447; 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. 2

NewsAccount | Winter 2024

BY DIEGO J. BACA, CPA, CHAIR

Every generation ends up saying it: “I just don’t understand young people.” It’s not necessarily a bad thing. We have all different points of reference, and as we age, our additional years of collecting data shape our views of the world.

s the lead recruiting executive for the Denver office at my firm, I interact with a lot of young people. When I led recruiting efforts at the University of Colorado, I wondered why students weren’t sold on everything that made accounting the profession of choice for me: job security, pay, and an unlimited career ceiling. Of course, there were many other factors that influenced my decision, but as I visited campus delivering that message, I began to realize that it wasn’t resonating with candidates, and it became apparent that they had different priorities.

THE POWER OF PURPOSE What I discovered very quickly was that candidates wanted their careers to have a greater purpose. I wondered what greater purpose there could possibly be than defending the capital markets, but candidates seemed more engaged when I shared my thoughts on how purpose intersects with a career path as a CPA. I described my own path from first-generation Hispanic college graduate from a lowincome family in a small town to a fulfilling career in public accounting. I further shared that my career has allowed me countless opportunities to give back to the community through sharing knowledge

and lessons learned to help people navigate their lives and become productive citizens of their communities. For so many of our young people, it’s challenging to see how any career can have purpose, and the accounting profession hasn’t historically been great at marketing itself as a way to achieve the greater good for all people. Taking time to thoroughly connect the dots between a personal purpose and your career as a CPA is well worth it in helping younger people who are looking for fulfillment from their own careers. Connecting purpose to what we do is essential in providing our colleagues with a compass to help them navigate their careers. And, in turn, connecting our younger colleagues with community initiatives and activities that excite them helps keep them engaged and fulfilled no matter their role.

A CALL TO ACTION How can we engage our younger professionals in meaningful ways while they’re gaining experience? Some potential questions: • What is your personal purpose? • Do you easily find ways in which this career can help you to achieve your purpose? • If you don’t yet have a purpose that can be articulated, what excites you to where you feel you’re operating at your best? At the same time, it’s important to ask ourselves what our organizations are doing to help young people develop the concept of purpose in their careers. Some suggested questions we can ask ourselves to help us better achieve this include: • Do I know what this person’s purpose is? • What programs or initiatives does my organization have to help professionals achieve their purpose? • Can I recommend a younger professional who understands his or her purpose to a community nonprofit board or a volunteer initiative with an organization that aligns with this purpose or passion? • For those employees who don’t know their purpose, can I share with them my own personal purpose and how my organization helps me achieve it? I’ve seen firsthand how this process works. I’ve heard messages of gratitude from our younger people for helping them to connect

the dots between their purpose and their career. Over the years I’ve mentored and gotten to know many college students who have thought through this process. While my firm has a tremendous program on purpose, sometimes it has only taken a simple conversation with our younger professionals to help them focus on how being a CPA can be rewarding for them. On October 6, 2023, The Wall Street Journal published the article, "Why No One’s Going into Accounting." This section caught my eye: Accounting has been an especially popular major with low-income students over the years, according to industry executives and researchers. “These students who don’t have social capital would get the short end of the stick in another career,” said Paul Madsen, a University of Florida accounting professor whose research has found accounting majors are more motivated by pay than other students.

It will take a village to help foster the next generations – and our village, the Colorado Society of CPAs – has amazing people with inspiring stories to which our younger professionals can look for inspiration. Unfortunately, the old sales points of job security, pay, higher career ceiling, and flexibility don’t resonate like they once did for many of us. It’s up to us to modernize how we market the profession to our spheres of influence in a way that touches the aspects that matter most to them. I’ve been blessed. Midway through my college years, I remember standing outside the Leeds School of Business at CU Boulder. I was on the phone with my mom, in tears because I only had a quarter tank of gas and barely enough money to get me to work and back until my next payday. After hanging up with my mom, I sat on a bench looking at the Flatirons, and dreamed of one day making $100,000 a year. I thought if I could do that, I’d be set. From my point of reference at that time, pay and return on

Let’s help future generations realize their purpose as well so that we can continue to attract and retain engaged, innovative talent in a world that needs fiscally responsible professionals more than ever. This reinforced the idea that the most important thing we can do for our younger professionals is to really get to know them on a personal level by understanding their background, family circumstances, contexts, frames of reference, goals, and ambitions so that we can show them how the profession can take them anywhere they want to go.

WHY AND WHY NOW? Our profession has undergone tremendous change in the past few years. The pandemic, regulatory challenges, and the ever-increasing cost of education have led many to leave or not even enter this profession. While the pipeline issues are multifaceted, a conversation about someone’s purpose in his or her career can serve as the headlights to a career path that might otherwise be overlooked.

investment were very important in choosing this career. But now I ask: What has kept me here? It’s simple: purpose. The firm and the profession have blessed me beyond my greatest dreams in giving me opportunities to focus on my purpose. I know it’s done similar things for you. Let’s help future generations realize their purpose as well so that we can continue to attract and retain engaged, innovative talent in a world that needs fiscally responsible professionals more than ever. Contact Diego J. Baca at Diego.baca@ey.com. The views reflected in this article are the views of the author and do not necessarily reflect the views of Ernst & Young LLP or other members of the global EY organization.

Winter 2024 | www.cocpa.org

LEADERSHIP

Alexandra Tune Tapped for COCPA Vice Chair/Chair-Elect; Tobias Clary to Become Chair on May 1, 2024 BY NATALIE ROONEY

ongratulations to Alexandra Tune, CPA, Deloitte, Denver, who has been nominated to serve as COCPA Vice Chair/ Chair-Elect beginning May 1, 2024. Also on May 1, Tobias “Toby” Clary, CPA, Soukup, Bush & Associates, P.C., Fort Collins, will assume the Chair role.

Nominees to serve a three-year term on the Educational Foundation Board of Trustees are Todd Mihelich, CPA, CGMA, McPherson, Goodrich, Paolucci & Mihelich, PC, Pueblo; Blaise Wabo, CPA, CISA, CITP, A-LIGN, Denver; and Karla Willschau, CPA, Wall, Smith, Bateman Inc., Alamosa.

Jim Gilbert, CPA, CITP, CGMA, Jim Gilbert CPA, LLC, Highlands Ranch, is nominated to serve as Treasurer. Director-at-Large nominees are Kevin Gibson, CPA, Glenwood Springs; Lisa Kutcher, CPA, Ph.D., Colorado State University, Fort Collins; and Patrick “Pat” A. Lytle, CPA, CGMA, SM Energy Company, Denver.

Continuing their service on the Educational Foundation Board of Trustees are Judy Thomas, CPA, MBA, Regis University (Retired), Denver; Stephanie Daniels, CPA, MAcc, RubinBrown, LLP, Denver; Jeffrey Damm, CPA, SM Energy Company, Denver; Matthew Ogaz, CPA, MAcc, CoBank, ACB, Greenwood Village; Alexandria Romero, CPA, MPAcc, City of Pueblo; Laurie Corradino, CPA, Ph.D., Colorado State University – Pueblo; and ex-officio Alicia Gelinas, CPA, COCPA, Englewood.

In addition to Clary, continuing their service as of May 1 are Immediate Past Chair Diego J. Baca, CPA, EY LLP, Denver; Secretary Alicia Gelinas, CPA, COCPA, Englewood; Community Member Amy King, Chief Human Resources Officer, Denver Health; Directors at Large Erin N. Breit, CPA, BDO USA, LLP, Denver, and Greg C. Pfahl, CPA, Moss Adams, Denver; and exofficio Emerging Professionals Initiative Committee (EPIC) representative Tiffany Davis, CPA, Discovery Accounting LLC, Denver. The chair, vice chair, and immediate past chair each serve for one year, while the treasurer and directors at large each serve for two years.

The above nominees are presented by this year’s nominating committee, chaired by Immediate Past COCPA Chair Angela Roberts, CPA, Aclivity, Denver. The above nominations will be confirmed on March 15, 2024, in accordance with COCPA bylaws. Below, the recently nominated Board officers, directors, and Educational Foundation trustees share their views on the skill sets that will be of greatest value to CPAs as the profession evolves, and offer a bit about themselves personally and professionally.

COCPA BOARD VICE-CHAIR/CHAIR-ELECT NOMINEE

Alexandra Tune, CPA Managing Director, Audit & Assurance, Deloitte, Denver

fun fact: Alexandra Tune’s original major at the University of Denver was music. Fortunately for the accounting profession, she enjoyed an intro to accounting class so much that she changed her major. An internship with Deloitte set the stage, and except for two years in the firm’s New York office, Alexandra has spent all of her career in the Mile High City. She currently leads the Denver office Audit & Advisory Technology and Emerging Growth Practices, specializing in the technology, healthcare, and health technology industries.

NewsAccount | Winter 2024

Passionate about education, Alexandra chairs the DU School of Accountancy Advisory Board and serves on the Denver Scholarship Foundation’s Audit and Finance Committee. She has also served on the boards of Open World Learning, College Summit Colorado, and the Alliance of Professional Women. Within the COCPA, Alexandra is a past president of the Educational Foundation Board of Trustees. This 2022 Everyday Heroine has also served on the Women to Watch selection committee.

When Alexandra considers the skills that will help CPAs excel in the future, she emphasizes critical thinking and adaptability. “In today’s world, where change is happening at an unprecedented pace, CPAs will need to be able to think strategically and have the ability to look over the horizon and anticipate what is coming next,” she says. Alexandra brings to the Board her “ability to listen, as well as more than 25 years of experience in the profession working in a variety of roles, and experience serving on a variety of different boards, in a variety of leadership positions” throughout her career. Alexandra spends her free time with her husband and children, 11-year-old twins, hiking, playing board games, and doing puzzles. And even though she didn’t end up majoring in music, she still enjoys playing the piano.

COCPA BOARD TREASURER NOMINEE

Jim Gilbert, CPA, CITP, CGMA Jim Gilbert CPA, LLC, Highlands Ranch

im Gilbert’s career is a great example of climbing the corporate ladder rung by rung. He started out as a billing clerk and progressively worked in many different staff and management roles until he became a chief financial officer. Jim has worked in many different industries, and in organizations of all sizes, from small businesses to Fortune 500 companies. His experience includes forming a variety of business entities, business expansions, divestitures, mergers and acquisitions, and business closures. In particular, he has focused on integrating technology into strategic plans and business processes alike. He is passionate about supporting the CPA profession and helping his peers embrace technology to prepare for the ever-changing landscape of business and automation. As he looks ahead to the future of the profession, Jim focuses on the adoption of tech-

nology and its impact on CPAs. “We must be leaders and get in front of the pending change and provide value to our clients and all types of organizations,” he says. Jim emphasizes that CPAs must be more adaptable and pivot toward new concepts, technologies, and client needs. “The tra-

– Jim Gilbert, CPA, CITP, CGMA ditional audit, tax, and consulting service models have changed,” he says. “CPAs now need to be leaders and innovators.” In his two decades as a COCPA member, Jim has held a variety of volunteer positions,

Kevin Gibson, CPA Glenwood Springs

Against the backdrop of his rich professional experience, Kevin is currently devoting time to personal interests and exploring next steps in his career journey.

Jim brings to the COCPA Board “passion, energy, leadership, a creative and open mind, and a technology focus that will help the Board of Directors and our members alike. I believe that my military, industry, and public

“The traditional audit, tax, and consulting service models have changed . . . CPAs now need to be leaders and innovators.”

COCPA BOARD OF DIRECTORS NOMINEE

ith expertise in general business taxation for corporations, partnerships, and other business entities, Kevin Gibson has spent 25 years providing public accounting and advisory services such as business succession planning, real estate investments and exchanges, and medical practice consulting to professional services firms, aviation and fixed base operators, and a broad range of other clients in western Colorado, across the state, and nationally. He also has extensive knowledge of conservation easement planning, including the intricacies of the Colorado Gross Conservation Easement tax credit.

including as a founding member of the Technology Users Group, in which he remains heavily involved, and serving on the Board of Directors. He is a past chair of the AICPA CITP Credential Champions Group, AICPA CITP Credential Committee, and AICPA Engage Technology Planning Committee, and is a frequent speaker on technology matters.

This summa cum laude graduate of Adams State University hails from Meeker, Colo. He has been a COCPA member for more than two decades and currently serves on the COCPA Colorado Department of Revenue (CDOR) Working Group. This tax practitioner group regularly meets with CDOR senior management to raise and discuss issues, recommend strategic improvements, and assist in communicating pertinent information to COCPA members. In 2023, Kevin and his Working Group colleagues played a critical role in providing feedback on challenges related to the K-1 filing administration, prompting CDOR’s commitment to future programming improvements. As a longtime member of the profession, Kevin notes the growing importance of

accounting experience allow me to provide ideas and creative thought for consideration.” When he’s not working or volunteering, you’ll find Jim traveling, working out at the gym, and spending time with his family.

advisory and consulting services as CPAs work in a continually changing environment. “Technology is changing our profession at a pace we have never seen before,” he says. “The legacy services that we have provided in the past remain important, but truly listening to and understanding the goals and challenges that our clients face and being able to provide solutions to their needs is the most important service that we can offer.” Kevin has spent his career providing services to small- and medium-sized privately held businesses, an important perspective that he will bring to the COCPA board table. Outside of his professional pursuits, you’ll find Kevin enjoying the wonderful outdoor lifestyle in Glenwood Springs. He enjoys hiking, cycling, paddleboarding, and traveling throughout the world. Kevin’s volunteer activities include fundraising for the Valley View Hospital Foundation, Glenwood Springs Historical Society, Valley Settlement Project, and a variety of other local not-for-profit organizations.

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LEADERSHIP CONTINUED FROM PAGE 5

COCPA BOARD OF DIRECTORS NOMINEE

Lisa Kutcher, CPA, Ph.D. Professor and Department Chair, Colorado State University, Fort Collins

or more than 20 years, Lisa Kutcher has been changing the face of Colorado’s accounting profession through her work as a professor to both undergraduate and graduate students. From her first years as a research and teaching assistant at CU Boulder to her current role as accounting department chair at Colorado State University, she is on the front lines in building the future of the profession. As the profession continues to evolve, Lisa says that analytical and critical thinking skills are increasingly critical for CPAs. “Accounting rules and technology are always changing, so the ability to think critically and analytically will keep CPAs at the top of the profession,” she says, adding that an interest in continuous, lifelong learning is also important. In addition to being active within the COCPA, having served as a trustee on the Educational Foundation, including as vice chair for a term, she also maintains active membership in both the American Accounting Association and the American Taxation Association. “My two decades in higher education allow me to bring perspective around the challenges that we face in attracting students to the accounting profession,” she says. “I can also understand how students’ perspectives regarding careers have changed over the years, providing a bridge between the professionals and the future professionals.” When Lisa isn’t in the car running her kids, Scarlett and Nathan, to their various activities or volunteering for the organizations in which they are involved, she likes to work on puzzles, play board games, and enjoy good coffee. She also likes to get outside to hike, bike, and paddleboard.

NewsAccount | Winter 2024

Patrick “Pat” A. Lytle, CPA, CGMA

Vice President, Chief Accounting Officer and Controller, SM Energy Company, Denver

at Lytle recently celebrated his 16th anniversary with SM Energy Company. After joining the company as a senior accountant, he is now the company’s chief accounting officer and controller. In addition to his duties at SM, Pat is a lecturer at the University of Colorado Denver Business School, teaching an oil and gas accounting class to both undergraduate and graduate students. Alongside the technical accounting skills that are critical to long-term success in the profession, Pat suggests that other attributes and talents may hold even greater value for CPAs, including open mindedness, curiosity, and a love for learning; the ability to effectively communicate results, conclusions, and viewpoints via multiple channels; confident decision making; and the ability to think critically and demonstrate a strategic perspective in a changing environment. Currently, Pat serves on the accounting advisory boards of both the University of Colorado Denver, which he chairs, and Regis University. A current member of the COCPA

Accounting Educators Committee, he has previously served on the Society’s Educational Foundation, Editorial Board, CPAs in Industry Conference Planning Committee, and the CPE Compliance Committee. Pat brings to the COCPA Board a passion for serving the profession and the student pipeline. “I have focused my volunteer efforts on serving university accounting students, whether through guest lecturing, serving on the Association to Advance Collegiate Schools of Business (AACSB) review teams at nine universities to date, serving on and holding leadership positions with accounting advisory boards, serving as a mentor to university accounting students, or working as a lecturer at CU Denver.” Outside the professional realm, Pat is a youth baseball coach and a Junior Achievement volunteer. He and his wife have four children, whose involvement in pursuits such as baseball, basketball, and soccer often puts Pat on the sidelines as a coach or behind the wheel traveling to games.

EDUCATIONAL FOUNDATION TRUSTEE NOMINEE

Todd Mihelich, CPA, CGMA

Shareholder/Vice President, McPherson, Goodrich, Paolucci & Mihelich, PC, Pueblo

olorado natives aren’t all that common these days – it seems like everyone is from somewhere else – but Todd Mihelich was raised right here in the Centennial State and graduated from Colorado State University in Fort Collins. Todd has been with McPherson, Goodrich, Paolucci & Mihelich, PC (MGPM PC) for the past 16 years and was self-employed for many years prior, specializing in the commercial aviation maintenance and construction industries. He currently focuses on governmental consulting and audit, as well as tax and other consulting. As Todd has watched the accounting profession evolve, he believes that CPAs will need to be flexible and embrace technology going forward. “Constant interaction with clients

to access their changing needs is critical to remain relevant,” he says. Over the years, Todd has served as treasurer for the COCPA Southeast Chapter. In addition to his new Board position, he also serves on the CPE Board and the Governmental Issues Forum. “I think my experience of being from a smaller town and firm in southern Colorado gives me a perspective on the needs of clients, students, and firms in a more rural setting,” he notes. “Also, my work with smaller governmental entities gives me knowledge of those entities’ needs.” Todd enjoys getting out into Colorado’s beauty to travel, camp, hike, and ski. He has several classic cars that he enjoys maintaining, and he plays music with a group of local musicians.

EDUCATIONAL FOUNDATION TRUSTEE NOMINEE

Blaise Wabo, CPA, CISA, CITP Healthcare and Financial Services Leader, A-LIGN, Denver

or the past decade, Blaise Wabo, CPA, has been with A-LIGN. First joining the firm as a senior consultant, he is now the Healthcare and Financial Services Leader, managing the Denver office where 25 employees serve more than 400 clients. As Blaise prepares to step into a leadership role on the COCPA Educational Foundation, he emphasizes the importance of continuous learning and technology as CPAs work in a continually changing environment. “CPAs should be constantly learning and becoming proficient with evolving technology such as

One of just 35 CPAs nationwide chosen to participate in the AICPA Leadership Academy in 2022, Blaise is excited to bring to his Educational Foundation leadership role his experience as a member of the COCPA Technology Users Group alongside his understanding of the cybersecurity landscape. “I will be able to challenge the status-quo accounting student to think beyond financial risk,” he says. Blaise serves on the board of the Denver Chapter of ISACA (formerly known as the Information Systems Audit and Control Association) and is a member of the AICPA.

“I will be able to challenge the status-quo accounting student to think beyond financial risk,” – Blaise Wabo, CPA, CISA, CITP automation and artificial intelligence,” he says. “With the increasing reliance on digital platforms, CPAs must also be aware of cybersecurity threats and implement measures to protect confidential information.”

Outside of his professional commitments, Blaise enjoys spending time with his wife and three children, whether skiing, biking, hiking, or golfing.

Karla Willschau, CPA Managing Shareholder, Wall, Smith, Bateman Inc., Alamosa

arla Willschau has been with the Alamosa firm of Wall, Smith, Bateman Inc. for an impressive 40 years – as a shareholder since 1996 and currently as the firm’s managing shareholder. She earned a Bachelor of Science degree with an emphasis in accounting from Adams State University in 1983 and worked in banking until she joined the firm in 1984.

As the profession continues to evolve, Karla sees the ability to embrace technology as critical. Karla has devoted the majority of her career to providing assurance services to financial institutions; nonprofit entities; and governmental entities such as counties, cities, special districts, school districts, and higher education. As the profession continues to evolve, Karla sees the ability to embrace technology as critical. “Technology has improved the services to our clients and has also improved the entire work environment of a CPA firm,” she says. Given the distance between Alamosa and the Denver metro area, Karla’s COCPA service has been somewhat limited to date, but with the improved connection opportunities that technology affords, she looks forward to serving on the COCPA Board. “I have worked with several foundations over the years, as well as served on scholarship committees. I love helping out a great cause,” she says. Currently, Karla serves on Colorado’s oldest pro rodeo board of directors, as well as the Hospice del Valle, Inc. board. During her free time, you’ll find Karla spending time with her family at reining horse training and competitions or enjoying the beauty of Colorado’s mountains. Winter 2024 | www.cocpa.org

CEO PERSPECTIVE

The Strength of the Circle: First-Year Reflections BY ALICIA GELINAS, CPA

Did you know that the circle or the sphere is one of the strongest shapes in nature? The reason it's considered the strongest is that within a circle or sphere, stress is distributed equally instead of concentrating at any one point. When I see the COCPA, I see strength. I see a circle of accounting professionals supporting one another, equally distributing stress without concentrating on any one point.

ver the course of my first year as COCPA president and CEO, I’ve had the opportunity to speak with members and hear firsthand about the stressors that they’re facing: legislative and regulatory overload, digital transformation, market demands, economic conditions, workforce shifts, and professional burnout. The good news is that I have also seen the COCPA community help distribute the weight of these personal and professional stressors by supporting each other. Below are a few examples of how our community is supporting one another and addressing common member challenges.

THE PACE OF CHANGE AND DIGITAL TRANSFORMATION The Technology Users Group has continued to grow as its members explore new technology options and provide members with demonstrations and free webcasts on emerging technologies and issues. Communities are gathering online in the COCPA CONNECT platform to engage in virtual discussions, provide answers to tough questions, and raise awareness of real-time changes. The CPE team and volunteers launched the online Lunch & Learn series to provide relevant and timely education on important topics, with many of our members stepping in as instructors to share their insights. 8

NewsAccount | Winter 2024

Through our member service offerings, an organization that was navigating a security breach was able to receive legal support.

PROFESSIONAL BURNOUT AND CONNECTION Several recent COCPA events and programs have addressed the issue of professional burnout while providing members with unique opportunities for connection. I’ve watched new CPAs and new members arrive nervously at their first COCPA event, then quickly realize the kindness of our community. • The DE&I Committee supported our members in building personal and professional resilience through the “For Me” series, which focused on mental health. • The Member Connections Committee continues to offer fun and meaningful networking events that offer members the opportunity to forge deep connections with colleagues, which is a core element of professional satisfaction. • We were able to listen to a member who was going through a rough patch personally and experiencing licensure issues as a result, and not only help her navigate the Colorado Rules & Regulations, but also provide member wraparound support.

WORKFORCE SHIFTS AND TALENT SHORTAGES The shortage of accountants and CPAs has hit the national news, and members have shared their concerns. Our Better Together Tour

and multiple pipeline discussion forums continue to help us uncover root causes and represent Colorado voices in the local and national exploration of possible solutions. Through our advocacy and partner relationships, we were encouraged to see the Colorado State Board of Accountancy implement the Credit Relief Initiative, effective September 2023, which automatically extended CPA exam credits lost between January 2020 and May 2023 until June 2025. Nationally, this initiative could help 15,000 to 18,000 candidates – nearly a year’s equivalent of new CPAs. We also supported the permanent extension of the CPA Exam window, which passed in Colorado, effective Dec. 30, 2023, and extends the exam window from 18 months to 30 months. It was personally satisfying to respond to calls and emails from candidates needing support through the CPA exam and licensure process, sometimes taking the extra time to rebuild their confidence to continue on the path to licensure.

LEGISLATIVE AND REGULATORY OVERLOAD Legislative and regulation pressure comes at both the federal and state levels. We have been working with the AICPA and other national partners to advocate for delays in the Financial Crimes Enforcement Network (FinCEN) Beneficial Ownership Reporting requirements and continue to explore the implications of this legislation to share with members. Locally, our Colorado Department of Revenue (CDOR) Working Group remains focused on identifying and recommending strategic improvements in its conversations with the Department. The K-1 filing administration was a challenge in 2023, and because of the valuable feedback, CDOR is committed to programming to integrate K-1s into the Modern e-file system, which will be a big win for tax practitioners.

Amidst navigating more pervasive impacts, circles like the COCPA and Boulder/Longmont tax study groups continue gathering to discuss individual case questions to support the application of complex regulations. Through representation on the Colorado Chamber of Commerce Councils, we combined our voice with those of other businesses to stand against proposed workforce bills that would have harshly impacted businesses. We also continue to see incremental progress from the commitment of our member representation in simplifying sales and use tax sys-

tems, and we have our eye on monitoring for potential business fees or taxation of services.

in a community of like-minded, missionoriented people – our COCPA community.

WE NEED YOU

In order to maintain the strength of the COCPA circle, we need you. We need your commitment to membership, to engagement, and to support for the future of the profession. When we all buy into the concept of a strong professional organization, any individual or organization that finds itself under a stress point can receive support. In what can seem like a “what’s in it for me” world, our members and our staff demonstrate daily that together, we can solve any challenges that lie ahead.

There are so many more examples and stories like these that I see every day. Sometimes progress can feel slow, and we don’t always experience what feels like a win in the moment. But in every step that we take we build momentum, and it’s critical that we keep moving forward. As our profession continues to experience stress from external forces, we must remind ourselves that support comes from the power of being

As the Colorado business landscape shifts, we must maintain a strong circle of influence with legislators. We need financial resources within the CPA Political Action Committee (PAC) to make investments in the relational bank by contributing to state legislative candidates who support a positive business environment for you, your clients, your employers, and other stakeholders. Between 2014 and 2016, the CPA PAC received average annual donations of $7,000, which dropped dramatically in 2022 and 2023 to average annual donations of $2,500, with less than 1% of COCPA members participating. These drops in donations mean a reduction in the number of business-friendly candidates whom we can support. In order to reverse this downward trend, I ask that you consider a $50 donation this year to PAC THE HOUSE.

THE HOUSE INVEST • INFORM • INFLUENCE

To learn more about the CPA PAC’s activities or to donate, visit cocpa.org/cpa-pac.

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COMMITTEE DIGEST

Updates and Opportunities Related to COCPA Committees, Working Groups, and Boards DIVERSITY, EQUITY, AND INCLUSION COMMITTEE

MEMBER CONNECTIONS COMMITTEE

Many thanks to COCPA member Lisa Hackard for her support of the development of the Diversity, Equity, and Inclusion (DE&I) Committee’s online series, For Me: Mental Health to Mental Wealth. Hackard connected the committee with Alexandra Yannacone, Director of Education and Community Programs at the Anschutz Medical Campus’ Johnson Depression Center, who presented three For Me sessions. Visit cocpa.org/see-me-series to watch select recorded sessions from these two series.

In October, the Member Connections Committee (MCC) partnered with the Denver Bar Association’s Young Lawyers Division and the Financial Planning Association of Colorado to host a costume party and networking event at Littleton’s Breckenridge Brewery. Below, costume contest winners Bill Plaugher (center) and Matthew Lengel (right) join David Martin of Verifyle, which sponsored the contest.

Hackard and Yannacone were featured together on the CBS Colorado segment, “Like Chicken Soup for a Cold, Colorado Exec Says we Learn Recipe to Prevent Suicide,” during September’s Suicide Prevention Month.

MCC will soon begin work on its 2024 slate of events, designed to bring together members and colleagues to network, learn, and connect. You’re invited to join us! If you enjoy meeting new people, collaborating with colleagues to provide member connection opportunities, and welcoming new members by phone, contact Stacy Svendsen at stacy@cocpa.org to learn more.

See page 18 for the DE&I Committee member Caitlyn O’Neil’s review of the book, Ten Steps to Nanette: A Memoir Situation.

EMERGING PROFESSIONALS INITIATIVE COMMITTEE (EPIC)

The Emerging Professionals Initiative Committee (EPIC) is pleased to introduce itself ! Previously known as the Young Professionals Council, this group of students, young professionals, and other accounting professionals is working toward offering content, tools, and events for those studying accounting, working toward CPA licensure, or navigating the workplace as a new CPA. To learn more about EPIC, please contact Abbey Aguirre at abbey@cocpa.org.

NewsAccount | Winter 2024

Looking to share your time, talent, and expertise

on a COCPA committee, working group, or board while connecting with other members? Visit cocpa.org/get-involved or contact Stacy Svendsen at stacy@cocpa.org to learn more about volunteer opportunities.

NONPROFIT WORKING GROUP

BRENT’S PLACE

The Nonprofit Working Group enjoyed its third successful Halloween collaboration with Brent’s Place, a long-term home away from home for families whose loved one is receiving life-saving medical treatment in the Denver metro area. COCPA members generously donated $4,000 toward the cause, with funds used to purchase costumes for children who are staying at Brent’s Place, along with gift cards for caretakers. Fourteen Society members volunteered at the spooktacular event, which brought together Brent’s Place families for games, crafts, and trick-or-treating, featuring hand-built and decorated candy chutes. Many thanks to those who volunteered at the event, along with those who generously contributed financially. COLORADO NONPROFIT ASSOCIATION

The Nonprofit Working Group again partnered with the Colorado Nonprofit Association to host “Office Hours: Ask a CPA,” a virtual program giving nonprofit organization representatives the opportunity to ask questions and seek advice from volunteer CPAs. Many thanks to Ken Fichter, Nathan Oberle, and Tiffany Knight, who shared with participants their expertise in nonprofit accounting, audit, and tax. We’re pleased to report that this successful partnership will continue throughout 2024.

INDEPENDENT ACCOUNTANTS ALLIANCE

The COCPA Independent Accountants Alliance (IAA) supports the accounting journey of those professionals who choose an entrepreneurial accounting path. The group is dedicated to connecting independent accountants with one another in support of their business, technology, and operational needs. A working group of members has met regularly for the last several months to help shape the direction of the group and determine how best to support its members, ultimately deciding on a website and an online community as the first steps. Visit cocpa.org/iaa to learn more, or join the conversation in the IAA Connect Community at cocpa.org/iaaconnect. To join the IAA working group, contact Derrol Moorhead at derrol@cocpa.org.

TECHNOLOGY USERS GROUP (TUG)

Many thanks to Plante Moran’s Steve Schelonka, who in November presented a one-hour virtual CPE program, Technology Users Group Presents: Emerging Tech: What’s Coming, What’s Here, and What Should I Do. Mark your calendar for these TUG sessions, scheduled on Thursdays from noon to 1 pm throughout 2024: Feb. 29

May 9

Aug. 15

Oct. 10

Visit the TUG webpage at cocpa.org/technology/tug for more information.

Visit the members-only COCPA Resource Center to read the article, "The Overlooked Threat: Cybersecurity in Small Businesses," by Evan Eakin.

cocpa.org/TUG-Article

Winter 2024 | www.cocpa.org

COMMUNITY SERVICE

Making a Difference: The 2023 Everyday Hero and Heroines BY NATALIE ROONEY

On Nov. 9, 2023, the profession gathered at the Westin Denver Downtown to recognize four individuals for their service to their communities and colleagues. We applaud their accomplishments and appreciate their commitment to making our world better. In their honor, the COCPA made a donation to the charity of each person’s choice.

AMANDA "JO" ERVEN, CPA, CIA, CFE, CTQA Educator, Speaker, Author, Audit Consulting Education, LLC; Lecturer, Director of Internal Audit Education, Metropolitan State University of Denver AN EXCEPTIONAL LEADER At a time when the accounting profession is facing an unprecedented talent shortage, there is no one working harder to reach out to students and encourage them on the path to CPA licensure than Jo Erven. She is on the front lines and in the classroom every day, inspiring her accounting students at Metropolitan State University of Denver (MSU). “Jo exemplifies what it means to be a CPA who makes a difference,” says Sarah Flischel, who nominated Jo as a COCPA Everyday Heroine. “She is full of zest and sparks excitement for the profession.” Determined to educate people about the role of internal audit, Jo visits other Colorado colleges and universities (14-16 each year), hosting campus events, awarding scholarships, speaking at Beta Alpha Psi and accounting student organization events, and visiting classrooms. In recognition of her outreach, Jo was asked in 2020 to join the MSU Denver’s Internal Audit Program Advisory Board. Thanks to 12

NewsAccount | Winter 2024

her efforts, the school became the first in Colorado to be a part of the Internal Audit Education Partnership. In 2022, Jo was asked to become a full-time professor and serve as the director of MSU Denver’s internal audit program. She has established two new certifications in the MSU academic catalog, in addition to meeting and working with dozens of CPA firms and audit executives to ensure that students have the right education and expertise to join and enhance the workforce. Jo is also the volunteer faculty advisor for MSU Denver’s Accounting Student Organization. She loves working with students, whether it’s on coursework, resumes, LinkedIn profiles, career mentoring, or simply buying them coffee and letting them vent about school or life. Not only is Jo a leader professionally, but she is also dedicated to supporting families affected by cancer. After losing her aunt and grandmother to cancer, she discovered she had the BRCA1 gene mutation. In 2016, Jo

underwent a preventative double mastectomy, and now actively volunteers for Susan G. Komen Colorado. Jo started on the Young Americans Initiative Committee and has grown to be a part of the Leadership Committee for the annual More Than Pink Walk (formerly known as the Race for the Cure). Jo makes calls to previous registrants and team captains to help them start their fundraising, posts flyers throughout Denver, provides information to retailers such as Target and Costco on providing donations, recruits new sponsors, and even runs a tent on the day of the event to show participants where their money is invested to end breast cancer. As an example of her dedication, Jo was one of the top five fundraisers for Colorado’s 2023 More Than Pink Walk. When it comes to CPAs exemplifying the profession’s core values of integrity, competency, and objectivity, Jo has written several books on the subject. Her ethical mantras include: “Silence is NOT golden,” and “Always speak the truth, even if your voice shakes.” “She openly shares her story, both personally and professionally, about what motivates her to continue her journey,” Sarah says. “Jo is an inspiration to all who meet her.”

TIFFANY KNIGHT, CPA Director, Kundinger, Corder, & Montoya, P.C., Denver PATIENCE, KINDNESS, AND SERVICE TO OTHERS Chris Battraw, who nominated Tiffany Knight as a COCPA Everyday Heroine, wants everyone to know the many things about Tiffany that make her so special. He says it’s not just her service to the public, but how everyone who works directly with Tiffany knows that she can be relied upon to answer questions and provide assistance with anything that is asked of her. “She exhibits patience, kindness, and a willingness to be helpful on any topic, regardless of the work pressures that she often faces,” Chris says. “I have observed these character traits time after time when working with her myself and as she works with other audit team members.” Chris describes Tiffany as consistent and reliable. “She promotes an environment of trust and helpfulness that nurtures less experienced staff,” he adds. As a partner, director, and shareholder at Kundinger, Corder, and Montoya, P.C., Tiffany manages and supports staff in a way that fosters their growth. “By managing employees in a way that promotes trust and open communication, a healthy work environment is

RACHEL ROBERTS, CPA Managing Director, CBIZ MHM, LLC, Denver WORKING TIRELESSLY FOR INCLUSIVITY Rachel Roberts may officially be a mentor to seven individuals at her firm, but her approachability and kindness make her the type of leader from whom everyone wants advice. That’s just one of the reasons why CBIZ colleague Caitlyn O’Neil nominated Rachel as an Everyday Heroine this year. “Rachel works tirelessly to create an inclusive and memorable office culture and provide unparalleled customer service, all while supporting nonprofits in our community,” Caitlyn says. “We come to her for advice because of her approachability and kindness. I can testify that she is a leader who truly has an open-door policy; I feel comfortable coming to her with anything. Rachel is a remarkable woman and her selflessness, dedication, and passion for helping others make her an outstanding candidate for this recognition.” Stephen Wandel had the good fortune to have Rachel as his mentor more than 10 years ago. “She put in the time and effort to help, and expected me to match that effort with my work,” he says. “She pushed me to be the best at this profession that I could be. She is still doing the same thing today, by continuing to show me the best ways to efficiently prepare more complex tax returns and workpapers.” Wandel says that Rachel stresses the importance of an inclusive environment, arranging events that everyone can attend, even if they’re out of state. “At some point in our career, we’re all asked to talk about

enjoyed by all members of the company,” Chris says. “The values that her character traits imply directly support a successful control environment and create an enjoyable work experience.” This dedication to supporting staff means that Tiffany's actions have created a nurturing environment for newer staff who are looking to improve their knowledge, expertise, and comfort level in the CPA profession. “Her character traits demonstrate her commitment to exemplifying the profession's core values of integrity, competency, and objectivity,” Chris says. “I have experienced this impact firsthand after working directly with Tiffany for six years.” Tiffany has dedicated her time to serving in many COCPA roles over the years, including as a committee member and chair of the Audit Committee, member of the Member Connections Committee, participating in the Nonprofit Working Group, and serving first as vice president and now as a trustee of the Educational Foundation of the Colorado Society of CPAs. Outside of her professional day-to-day accounting world, Tiffany volunteers much of her free time as a board member for Earthlinks, an organization dedicated to cultivating personal transformation and self-worth among people experiencing homelessness and poverty. By creating opportunities through Earth-centered programs, individuals step out of isolation and into the community – restoring each other and the planet.

someone who has inspired us,” he adds. “Rachel is that person to many. She constantly inspires. She leads with humility and grace. She brings out the best in people. She has made a positive impact at CBIZ and on me.” Within CBIZ, Rachel leads many impactful initiatives, and was selected for the CBIZ Great People, Great Place program, which ensures that the firm is creating a culture where employees are proud to work. She spends at least 50 hours a year championing and assisting with the program’s multiple core initiatives, including a food drive; a “fun” committee; CBIZ Cares, which gives everyone the opportunity to give back to the community; and CBIZ Women’s Advantage (CWA) which identifies ways to mentor and provide professional development opportunities to female team members. Caitlyn says that Rachel is known for the respect that she provides her staff and for doing the right thing. In 2019, Rachel was instrumental in merging two office cultures when CBIZ acquired the Wenner Group. “She strives to make each year better than before,” Caitlyn reports. “Her leadership was one of the reasons why the transition was so successful and why so many Wenner employees stayed after the acquisition.” Rachel also works tirelessly as a board member of the Colorado Mountain Club, a nonprofit that helps educate, conserve, and promote outdoor stewardship. She is currently the organization’s treasurer and serves on the finance and executive committees, dedicating more than 60 hours a year to helping the board make sound financial decisions and stay within budget. “I believe that Rachel’s story will inspire others to step up and become everyday heroes and heroines in their own right,” Caitlyn says.

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COMMUNITY SERVICE CONTINUED FROM PAGE 13

FERNANDO VARELA, CPA Transaction Advisory Senior, BDO USA, Denver COMMITMENT TO COWORKERS, FIRM, AND COMMUNITY Fernando Varela is making his mark, not just as a role model and leader within his firm, but in his community as well. When BDO colleague Erin Breit nominated Fernando as an Everyday Hero, she described him as the future of the firm. “His influence extends beyond the firm and into the community through various initiatives at BDO, as well as outside of the firm and profession,” Erin writes, highlighting Fernando’s leadership efforts, which include teaching and training, technical abilities, and professional commitments. “He demonstrates one of BDO's core values: giving back to the community through philanthropy,” she added. As a leader in the BDO Denver Counts group, a corporate social responsibility program, Fernando helps organize volunteer events throughout the year. As a founding leader of the group, he actively participates in every event. Fernando is also a BDO Diversity & Inclusion Leader, serving as co-leader of the multicultural alliance for the Denver office, organizing and leading events that broaden the understanding of different cultures, including through the annual dragon boat race, cultural events, and celebrations. Leticia Ocampo, a manager at BDO, says, "Fernando has been a great addition to the firm, not only because of the work he does but his commitment to his firm, coworkers, and community. He is always involved and is willing to help wherever it’s needed. He has the willingness to teach, lead, and get involved. He always has a positive attitude and is someone who you enjoy having on your team."

COCPA HONORS CHERIS WITH DISTINGUISHED SERVICE AWARD At its CPAs Make a Difference celebration on Nov. 9, 2023, the COCPA honored Samuel D. Cheris, Esq., with the COCPA Distinguished Service Award. Retired CEO Mary E. Medley accepted the award on Sam’s behalf. Given in recognition of significant and enduring contributions to the accounting profession, the award has been bestowed just 14 times in the Society’s 119-year history. Sam was first introduced to the COCPA through a professional assignment as legal counsel while working at Hall & Evans. He was already no stranger to the accounting profession, having graduated with a bachelor’s degree in accounting from Brooklyn College before pursuing an MBA and a law degree from Stanford University. During his tenure as legal counsel, Cheris transitioned from a highly esteemed legal advisor to a cherished friend of the COCPA. He went on to serve on the Board of Directors and the Audit Committee, culminating in his role as a special advisor to the Board for the past 21 years. Cheris’ profound impact shined through in the strategic insights, meticulous attention to detail, wise counsel, and unwavering commitment that he brought to the challenges faced by the Society, its members, and the broader accounting profession. Sam passed away on Dec. 13, 2023. At right, Mary shares her remarks on her and Sam’s decades-long journey together as both colleagues and dear friends, and his indelible impact on so many others.

Outside of the firm, Fernando is an active member of the Association for Corporate Growth (ACG), a middle-market business community providing access to a network of relationships, knowledge, and resources committed to supporting the growth of Colorado businesses. He organizes events for ACG’s Professionals Opening Doors Committee, which includes external community involvement and events within the broader community. Fernando’s list of philanthropic and community activities is ongoing. As a regular volunteer at Food for Thought, he participates in weekly food bagging efforts, often encouraging other CPAs and friends to get involved as well. Through the Denver Park Trust, Fernando volunteers for park cleanup efforts throughout Denver. His goal: To improve the city in which he lives for all. When he isn’t in the city, Fernando gets out into nature, and through various organizations helps with trail clean up, making the trails better for all Coloradans. Fernando spreads awareness of important organizations by encouraging others to attend events along with him. “He is truly an active, participating leader in the Denver community,” Erin says. “Through his hands-on volunteer efforts, he feeds children, cleans parks and trails, and encourages others to do so as well. He’s a role model for CPAs and members of our community through his acts of volunteerism and community.”

NewsAccount | Winter 2024

Colorado CPAs who became licensed in 2023 gather at the November 2023 CPAs Make a Difference celebration, as fellow attendees offer congratulatory fist bumps and high fives.

IN MEMORIAM

Samuel D. Cheris, Esq., 1945-2023 BY MARY E. MEDLEY, RETIRED COCPA CEO

Counsel, colleague, and dear friend Sam Cheris left this world quietly on Dec. 13, 2023, with his wife, Susie Perlman, holding his hand. I was fortunate to spend time with him earlier that day, and on many occasions over the years. Even during his cancer journey, Sam continued to share his wisdom with me and with the COCPA. The following words are excerpted from remarks that I gave at his funeral. I offer us all the thought that Sam moved on during Hanukkah, the Festival of Light – and in my faith tradition, during the season of Advent as we approached the dark night of the winter solstice. Light and dark together – with Sam being the light for all of us.

am, we go back a long way, you and I. Our journey together – our walks, both intellectual and actual – began in 1974, the year I took my first position with the Colorado Society of CPAs, and you became the Society’s general counsel. Then, I answered the telephone – as the receptionist – and you answered the legal questions, helped solve the problems, and did it all in your pragmatic, straightforward, balanced style. Twenty years later, you moved on from Hall & Evans, and I had two years under my belt as the organization’s executive director. We restructured the volunteer leadership, and you became our first non-CPA community member on the Board of Directors, followed by service as special advisor to the Board, a position created just for you, which meant that you continued to offer your counsel into this year. Over the next three decades, you walked me through thorny technical issues, philosophically intriguing questions of the CPA profession, minor and wholesale bylaws revisions, and myriad other projects. At the same time, you were changing the face and direction of USA Fencing in lasting ways. Your contributions to the sport internationally are legendary – every significant change and improvement, well, you did that. In these past few months, you still were lending your perspective. The phrase “when so and so talks, people listen”? You inspired that. You employed your undergraduate accounting degree routinely – and I wonder even now why you didn’t sit for the CPA exam. Lately, we visited at your lovely Aurora home, nourished by those signature goodies that Susie always has at hand. We walked your neighborhood in the warm Colorado sunshine and pondered the great mysteries of other people’s lawn decorations. On November 29, we took our last stroll. You set the pace – deliberate, albeit halting – and you told me you were in the Wild Blue Yonder where words didn’t quite fit together, and talking

was mostly one way. I proposed a shorter route, yet you persevered as the breeze became just a little cool and crisp. Hanukkah was coming, along with your family from across the country. Two weeks later, you were at Denver Hospice, and our walk was imaginary, as I sat in your room, talking with Susie and sharing stories of your life with her and my experiences with you. I kissed you on your smooth, warm forehead, and told you I love you. You were gone later that night. Now, in this moment, I see your smile again. I remember the twinkle in your eye each time I would ask if you were huggable when it was time for me to leave. I recall the genuine surprise in your voice when I told you the CPA Society was recognizing you with its 2023 Distinguished Service Award. And, I shall forever cherish watching you, Eric, and Chris, your college buddies, reminisce about your hijinks while at Stanford. I reached out to my friend Kitty, seeking advice about what to say at your funeral. She replied, “As a faithful Jew, your friend would have known these words by heart and would have strived to live by them: 'You shall love Adonai your God with all your heart, with all your soul, and with all your might.'” You lived this, Sam, whether teaching those around you, participating in a meeting, judging an international fencing competition, or walking in your beloved Colorado mountains. We all have been changed, for good, because you lived these words. Thank you for our walks. Thank you for your heart. Thank you for never giving up on those you love. I know, though I can’t walk with you in the same way now, we’ll continue our walks together in spirit. Contributions in Sam’s memory may be made to USA Fencing, Littleton Town Hall Arts Center, Public Broadcasting of Colorado, Temple Emanuel, and the ADL.

Winter 2024 | www.cocpa.org

HUMAN RESOURCES

Changes Impact Colorado’s Pay Transparency Law BY NATALIE ROONEY

n 2019, Colorado became the first jurisdiction to pass a law requiring employers to provide pay range or rate information in job postings, launching a trend that many other jurisdictions have since followed. In 2023, Colorado amended its equal pay law, modifying the job opportunity posting and notification requirements, among other key changes to the law’s pay transparency and anti-wage discrimination provisions. Those changes took effect Jan. 1, 2024.

WHAT IS PAY TRANSPARENCY? Pay transparency occurs when an employer provides information about compensation. Eight states and six local areas currently require pay transparency. In a survey of 1,300 human resources professionals, 42% said their organizations are required by state or local laws to include pay ranges in their job postings. (Source: Society of Human Resource Management [SHRM], March 2023) The data also shows that more than two in three HR professionals say that, even when pay transparency is not required by law, their organizations still tend to list starting pay in job postings. Last August, 50% of online job listings advertised salary, up from 18.4% in February 2020, according to Indeed Hiring Lab, the economic research arm of the Indeed career site. Such businesses disclose an exact salary or a salary range. The SHRM survey found that 73% of U.S. workers are more likely to trust organizations that provide pay ranges, and about the same number are less interested in applying to jobs without pay ranges listed.

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In addition, the 2022 Indeed survey showed that pay transparency can result in: • A larger and more compatible pool of applicants: 75% of job seekers said that they are more likely to apply for a job if the salary range is listed in the posting, and 56% said they would be more likely to apply for a job with a company whose name they don’t recognize if the posting includes a salary range. • More sustainable hires: When employees believe that they are being paid fairly, they are more likely to stay with the company. 83% said they feel more loyal to their work when they feel that they are paid fairly. • Happier employees: Employees who believe that they are being paid fairly are happier overall, and that happiness translates to productivity. In fact, 84% are more engaged with their work, 84% are more productive at work, and 83% said they feel more confident at work. However, there may be drawbacks. For one, pay transparency may lower the overall wages of the broader population of employees, even while raising them for the "inequitably underpaid," Indeed researchers wrote in a report. That's because, data suggests, employers might push back against salary negotiations and the practice may therefore "lower employees' relative bargaining power.” The practice might also lower worker productivity and change workers' on-the-job priorities, they added. “All markets, not just labor markets, work better when prices are known,” says Scott Moss, director of the Colorado Department of Labor and Employment’s Division of Labor Standards and Statis-

tics. “No one thinks supermarkets would be better if there weren’t any price tags. No one would like it if a supermarket didn’t show prices until you got to the cash register.”

THE COLORADO EQUAL PAY FOR EQUAL WORK ACT Colorado’s Equal Pay For Equal Work Act (EPEWA) took effect Jan. 1, 2021, and applies to any entity employing at least one employee working in Colorado. There are five main components to Colorado’s pay transparency law: 1.

Equal pay for equal work

2. Pay scale transparency 3. Salary history ban 4. Freedom to discuss wages with others without fear of retaliation 5. Recordkeeping obligations Regarding pay and opportunity transparency, the Equal Pay Act requires that an employer: • Make reasonable efforts to announce, post, or otherwise make known all opportunities for promotion to all current employees on the same calendar day and prior to making a promotion decision; and • Disclose in each posting for each job opening the hourly or salary compensation, or a range of the hourly or salary compensation, and a general description of all the benefits and other compensation to be offered to the hired applicant. Following the law’s enactment, the Colorado Department of Labor and Employment (CDLE) enacted Equal Pay Transparency Rules (EPT Rules) and provided additional guidance that clarify and broadly interpret the Equal Pay Act’s requirements on pay transparency.

ENSURING COMPLIANCE Moss says it’s easy for employers – large and small – to comply with the pay transparency law. “Some of the labor laws can be challenging, but this one is easy,” he assures. “It requires one sentence stating the expected pay or range of pay and a description of benefits.” The law included funding for the CDLE staff to handle rulemaking, outreach, education, complaints, and investigations. Currently, the department receives 40 complaints a month. “Not all are valid, and many are anonymous,” Moss says. “If the complaints don’t include a link or an up-to-date posting, we can’t investigate.” Moss says most violations occur when an employer doesn’t post the pay at all. He notes that since the law took effect Colorado’s rate of posting pay has jumped from 20% to 81% – a 400% increase. The posting of pay ranges becomes an issue when a listed range is unrealistic, for example simply saying pay is $1 and up. “That’s not a good-faith effort, but fortunately we’re not seeing too many of those,” Moss says. “We view that the same as listing nothing.” Another red flag: pay ranges that are far too broad. For example, let’s say that a firm is hiring an accountant. If the most junior person at the firm is paid $60,000 and a partner is making $600,000, the range cannot be listed as $60,000 to $600,000. Employers must list a realistic pay range for the posted position, not for the whole company. “If you’re posting at colleges and interviewing junior people, it’s not accurate for them to anticipate a senior salary,” Moss says.

The rules do have some flexibility. “If you post for a junior person and ultimately hire someone better, you can hire outside the posted range,” Moss says. “The law isn’t inflexible. It’s there to create a reasonable expectation.” Overall, compliance tends to be higher for high-paying jobs, but nationally, engineering, science, and banking/finance positions seem to lag on posting salary ranges. “There is more discretion at the higher pay levels,” Moss says. “Companies like to keep pay levels secret so they can negotiate, or their competitors don’t know. These are problems that the law is trying to fix.” When the CDLE receives a complaint, the process is to first contact the employer. “If they fix it right away, we typically close the investigation,” Moss explains. If an employer is fined, it’s because they refuse to fix the violation upon notification. Fines range from $500 up to $10,000 per job listing, so the penalties can accumulate quickly. If an employer becomes a frequent offender, the fines ramp up. So far, Moss describes employers as cooperative, saying that only a small percentage don't fix a listing after the first $500 fine. He estimates that more than 90% fix a listing immediately and never receive a fine.

RESOURCES Extensive information for employers is available online: CDLE Interpretive Notice and Formal Opinions (INFOs) and other published guidelines: CDLE.colorado.gov/infos CDLE INFO #9: Equal Pay for Equal Work Act, Part 2 | Transparency in Pay and Opportunities for Promotion and Advancement: cocpa.org/CDLE-Info-9 The CDLE team is happy to answer questions, typically within 24 to 48 hours, “unless it’s a real stumper,” Moss says. “We might need to convene a team to discuss it, but we’re generally pretty quick with a response.” The CDLE is working to merge all information about the law into one place to assist employers. “We want to provide a one-stop shop with a series of fact sheets,” Moss says. Employees alleging a violation of the EPEWA may file a complaint with the CDLE, file a charge with the Colorado Civil Rights Division, or file a private civil lawsuit.

Winter 2024 | www.cocpa.org

DE&I SPOTLIGHT

Humor and Heartbreak Combine to Showcase Resilience in Gadsby Memoir BY CAITLYN O’NEIL, CPA

f you’re familiar with the work of Australian comedian, writer, and actor Hannah Gadsby (they/them) through their Netflix comedy specials Nanette and Douglas, you know their style to be unique and honest. Neurodivergent individuals might recognize from their own lives some of the scenes depicted in Nanette. On a personal note, the show helped my mother understand how my autistic brain works. Using a similarly direct but poignant style in their book, Ten Steps to Nanette: A Memoir Situation, Gadsby chronicles their rise to success. In a voice that combines humor and heartbreak, resilience shines through as an overarching theme. In the book, Gadsby, who grew up in Tasmania, chronicles the major events of their life, including a heart-rending early struggle to fit in socially with classmates. They recall studying to be more “woman like,” and taking up smoking as a way to relieve social pressure. Many autistic and neurodivergent individuals experience feeling out of place, and I can relate to seeking outlets to relieve social pressure. Gadsby also recounts grappling with their sexual identity while living in deeply conservative Tasmania, where a strong stance against gay marriage prevailed. They discuss the relevant political events in Tasmania and Australia of the time that decriminalized homosexual relations, and note the deep impact of the widespread homophobia that surrounded them during their formative years.

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As Gadsby progressed to adulthood, they found their way into comedy, working odd jobs as a grocer, laborer, and more along the way. Having started out in comedy clubs and eventually ascending to mainstream venues, Gadsby discusses the events – some of them truly heartbreaking – that led to the Nanette Netflix special. Fortunately, around this time, Gadsby received an official autism diagnosis, which they describe as life changing in that it enabled them to seek helpful strategies to better manage the issues surrounding their neurodivergence. For me, the word “resilience” comes to mind when considering the journey that brought Gadsby to their current life, on which they also report in the book. As with the Nanette television show, I found Ten Steps to Nanette: A Memoir Situation to be both hilarious and biting. With its perspectives and stories, it will likely make you both laugh and cry, and will undoubtedly open up your world. Caitlyn O’Neil, CPA, MT, is a senior tax associate with CBIZ MHM, Denver. A member of the COCPA Diversity, Equity, and Inclusion (DE&I) Committee, O’Neil shared her story, “Not a Puzzle Piece: Being Autistic in the Work World,” as part of the Society’s See Me: Stories of Diversity, Equity, and Inclusion webcast series. Contact her at coneil@cbiz.com. To learn more about the DE&I Committee’s activities or the See Me Series, contact Stacy Svendsen at stacy@cocpa.org.

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Winter 2024 | www.cocpa.org

THE OTHER SIDE OF CPA

Meet Ed Meier, the Skiing Grandpa BY NATALIE ROONEY

The next time you pull off your ski boots after a long day on the slopes and complain about your aching knees, consider this: Ed Meier, CPA (Retired), is still out on the hill at age 80 and challenging his grandkids to keep up with him. Read about how his love of skiing has kept the Meier family connected for the past four decades.

kiing in Colorado was the furthest thing from Ed Meier’s mind as a youngster. Born in WWII Germany in January 1944, his mother was sent to a camp for wives whose husbands were away fighting. “My birth certificate has a swastika on it,” he recounts. His father, who was forced to fight for the Germans, was shot, captured by the Americans, and remained in an American POW camp until the end of the war. After the war, the Meiers were refugees and immigrated to the United States in 1951, when Ed was 7 years old. They lived in northeast Colorado and in 1956, the family relocated to Denver, where Ed attended Annunciation High School and met his future wife, Janice. Upon graduation from Regis College in 1966, Ed joined the Denver office of Arthur Young on the audit staff. Moving up in the ranks over the years, he became a partner in 1976. He then took a three-year assignment in Frankfurt, Germany. He returned in 1979 as the managing partner of the Denver office. Arthur Young merged with Ernst & Whinney in 1990 to become Ernst & Young (EY).

But during his first busy season with Arthur Young, a group invited Ed to go along with them on a ski trip. “I’d never skied before, but it sounded interesting,” he says. He rented a pair of skis and headed off to Winter Park on a Sunday afternoon. “Those first few runs, I was on my rear end a lot,” he laughs. “Everyone was patient and helped me, and by mid-afternoon, I could keep up with them.” That was all it took. Ed became an avid skier, as did Janice. Their children, who were 4 and 7, also learned to ski during their assignment in Europe, attending ski school in Austria. Then the next generation took up the mantle; all four grandkids became avid skiers and snowboarders, as well, starting at age 4. Now ranging in age from late teens to mid-20s, they all still ski together. “The younger grandkids, Bryan, Brooke, and Max, love to brag to their friends about how they have to work to keep up with their grandpa,” Ed says.

Ed stayed on with EY for two years, but in 1992, the entrepreneurial spirit hit him. “It was time to try something new,” he reflects. He invested in a number of small operating companies in various industries, building those companies up and then selling them.

After 35 years, the family outgrew their original mountain condo. They bought a new house north of Silverthorne where there is plenty of space for everyone. Located on a small lake, the children and grandchildren enjoy kayaking and stand-up paddle boarding when they’re in town during warmer months.

A FAMILY TRADITION TAKES ROOT

The Meiers gather as a family as often as they can even though Ed and Janice’s children have relocated out of state and the grandkids are in college around the country.

Not only was downhill skiing not something that was overly popular while Ed was in high school, but he also says his

family’s economic situation didn’t really lend itself to the skiing lifestyle. “No one I knew skied, and I certainly couldn’t afford it back then,” he explains.

NewsAccount | Winter 2024

ED’S FAVORITE MOUNTAIN Ed says he can be in the mountains in just about 80 minutes – if the I-70 traffic goes his way. For nearly two decades, he skied Vail with a client-turned-friend who bought Ed a buddy pass every year, just so they could ski together. These days, you’ll most likely find Ed skiing his favorite runs at Copper Mountain, but his eldest grandson loves Breckenridge, so Ed skis there as well.

Copper, complete 10 to 12 runs, and then finish by 12:30 pm to head home and have lunch with Janice. Ed doesn’t mind hitting the slopes on his own most days. “I enjoy meeting people on the lift,” he says. When the grandkids are in town, it’s a different story. “They want to ski six or seven days in a row. That’s too much for me,” Ed says. “But I do get a lot of my days in when they’re here.”

These days, you’ll most likely find Ed skiing his favorite runs at Copper Mountain, but his eldest grandson loves Breckenridge, so Ed skis there as well. Skiing adventures aren’t limited to Colorado either. Ed has skied in Lake Tahoe with his youngest grandson, hit the slopes of Utah with friends, and of course, there were those years abroad when the family skied the Alps in Austria, Switzerland, and southern Germany. Ed’s goal is to log 25 days a year – a number he typically achieves – mostly on weekdays when the slopes are less crowded. “I never ski weekends unless the kids are here,” he says. His ideal day: head out after breakfast, make the 15-minute drive from Silverthorne to

To get in shape for each ski season, Ed walks and uses an elliptical machine. “That elliptical machine helps get my thighs ready,” he laughs. Janice stopped skiing 15 years ago and is now known for the delicious meals that she has ready and waiting for the skiers after the day’s runs are done.

GLOBETROTTERS Over the years, Ed and Janice have enjoyed exploring the world, visiting 65 countries on all seven continents. “We got our travel bug

when we lived in Europe,” he says. “Living in a small town outside of Frankfurt, we could drive to Paris in five hours.” Some of their favorite destinations are in South America, but Italy takes the award for their most-visited country: Janice has been 11 times, and Ed has visited nine times. Ed has also traveled to all 50 U.S. states. The grandkids continue to be an important part of Ed’s travels and adventures. In 2016, he and his eldest grandson, Spencer, watched the Denver Broncos play in Super Bowl 50 in Santa Clara, California. In fact, Ed has seen the Broncos in the Super Bowl four times – two losses and two wins. “The wins are a lot more fun,” he admits. A photo from Spencer’s Instagram account captured the moment: “So blessed to have this amazing man as my grandpa and so blessed to be a Bronco. Amazing day with Grandpa, and I will cherish this moment forever. Thank you so much.”

Winter 2024 | www.cocpa.org

STATE OF THE STATE

COLORADO

Economic Overview: A Look Back at 2023 and Ahead to 2024 BY NATALIE ROONEY

For 59 years, the University of Colorado Boulder’s Business Research Division (BRD) has released its annual Colorado Business Economic Outlook – an analysis of the past year and a forecast for the coming year. The Outlook covers employment, the consumer price index, construction, personal income, gross domestic product (GDP), and more. The recently released 2024 Outlook points to a Colorado economy that should remain resilient in the new year despite the persistence of factors such as inflation, elevated interest rates, and slower job growth.

NewsAccount | Winter 2024

THE REPORT PROCESS

NOISE IN THE DATA

Over the course of several months, 130 individuals from the business, education, and government communities volunteer their time to serve on 13 sector estimating groups. The groups first meet in September to discuss the trends and issues that are likely to affect economic growth during the upcoming year.

Lewandowski says the data for 2024 shows a lot of “noise” right now. “There’s strain in the tech sectors, and venture capital investment is down quite a bit with less money supporting startups,” he explains. “High interest rates impact industries that are more sensitive like financial activities and construction.”

BRD Executive Director Brian Lewandowski says that while models are created to forecast the various areas of the economy, data can only tell so much of the story. “The community working on each of the industries provides the boots-on-the-ground perspective and lets us know the real headwinds and tailwinds that help us improve our modeling,” he explains. “What they tell us may change our numbers within the statistical upper and lower bounds.”

Overall, the data shows a slowdown in residential construction with a sharp decrease in building permits, but data from the Colorado Demography Office shows net migration to Colorado on the upswing after a lull. Although Colorado’s population growth is forecast to slow over the next few decades, it is projected to continue to outpace the nation, growing at roughly twice the national rate. Colorado is forecast to increase from 1.7% of the U.S. population in 2020 to 2% by 2050. “That’s an important number because it represents a source of labor,” Lewandowski says.

In October, the committees apply the gathered information to generate an economic forecast by industry. Sector write-ups and forecasts are prepared and submitted to the BRD to create the Colorado Business Economic Outlook. “It’s a big undertaking in a short amount of time,” says Lewandowski.

A SNAPSHOT OF THE DATA Colorado’s GDP increased 2.2% in 2022 and 1.5% in the first quarter of 2023 year over year. That compares to 1.6% average growth among states nationwide during the same period. In 2023, national GDP increased to an estimated 2.4%. The Outlook calls for 1.4% growth in national GDP in 2024 as consumption slows but remains resilient. Lewandowski says that one surprise came from comparing the predictions from fall 2022 to what played out in 2023. “The Colorado economy actually performed really well in 2023,” he points out. “The predicted slowdown didn’t materialize because the employment market held strong.” “Adding a quarter of a million jobs nationally that pay an average of $70,000 a year is a lot of spending power that puts wind in the sails of consumption,” Lewandowski says. “Even through higher interest rates and inflation, consumption was uninterrupted.” He says retail sales and personal income had their challenges, such as savings that have remained below historical averages, but ultimately, consumption performed well in 2023. Colorado added the most jobs ever in 2022, nearly 122,000, a growth rate of 4%. In 2021, Colorado added 98,000 jobs. Lewandowski says two consecutive years of adding approximately 100,000 jobs was unprecedented. At this point, Colorado ranks 42nd among states in job growth at 1.5%. However, the Colorado Department of Labor and Employment (CDLE) identified that Colorado’s job growth was likely underestimated in the Bureau of Labor Statistics' Current Employment Statistics (CES) series. CDLE projects upward revisions. Lewandowski says that as a result of the job growth revisions, Colorado will likely come out as a top 10 to 20 state for 2023 even though early data made it look like that might not be the case. “We were scratching our heads, because none of us felt like things were that bad,” he says. “Companies are still relocating here. How could we be in the bottom 10?” The report teams worked to incorporate the expected employment revisions into their modeling and came up with 2.3% employment growth for 2023.

As of September 2023, Colorado had a Worker Shortage Index of 0.52, indicating that Colorado has 52 available workers for every 100 open jobs, ranking 31st in the nation. The Outlook is also forecasting a net change of 41,900 jobs – slower growth than in past years at 1.4%. “We’re going to be just shy of 3 million jobs in Colorado at 2.979 million,” Lewandowski says.

THE OUTLOOK PROJECTS THAT FOUR INDUSTRIES WILL LOSE JOBS IN 2024:

Construction: -2,300 jobs Manufacturing: -1,400 jobs Information: -1,000 jobs Financial activities: -800 jobs There will be a slight increase in the unemployment rate to 3.4%, which Lewandowski says isn’t a reflection of a lot of the economic turmoil. “To me, that we can pull more people into the labor market who aren’t seeking jobs or work right now is a signal of further recovery in the labor market.” In fact, Colorado has one of the highest labor force participation rates (calculated as the labor force divided by the total working-age population – people age 16 and over) in the country. “We have a higher percentage of our population in the labor force than the national average,” Lewandowski says. “That has helped Colorado’s recovery.” Colorado’s population remains younger than the national average, but it is aging. “If you look at our median age, it’s getting older over time,” Lewandowski says. “If you think about the great migration west, who were the people who made that trip? It was the younger population who had good health and stamina to survive the journey, so the population of the west has always been younger. Then, people retired elsewhere.” Now, however, more retirees are apt to stay in Colorado. “Maybe it speaks to people being healthier longer and wanting to take advantage of the amenities here,” he says. “But it’s notable that one reason we’re getting older as a state is retirees who are choosing to age in place.” Colorado’s population growth has slowed in the short run, with continued slowing births, increased deaths due to both aging and Covid, and slowing migration.

CONTINUED ON PAGE 24 Winter 2024 | www.cocpa.org

STATE OF THE STATE CONTINUED FROM PAGE 23 International migration historically has contributed to 20% of Colorado’s total net migration, and it slowed significantly in recent years. In 2022, international migration returned to pre-pandemic levels and is expected to remain at levels around 10,000 in 2023. “When your birth rates are declining, you’re dependent on migration to prop up your population,” Lewandowski says.

KEY SECTORS Professional Services The professional services sector, which includes the accounting profession along with high-tech research and development, legal services, and architecture, is projected to add the most jobs in 2024, at 14,500. “Professional services is an upside story,” Lewandowski says. “It’s one of the highest-paying industries and is still our major growth industry in Colorado, with good reason. These are the jobs that people move to Colorado for and they pay enough to overcome the higher cost of living.” Employment in professional services grew rapidly in 2022 but is expected to moderate in 2023 and 2024 with 3.4% and 2.9% projected growth, respectively. Natural Resources and Mining The natural resources and mining sector is still robust, but portions are down significantly. Oil prices remain above the five-year average while natural gas prices in 2023 will likely end up down nearly 60% from 2022. Construction In 2023, even with higher interest rates, demand remained high. Construction activity in 2023 saw a decline of 12% from 2022, but Colorado continues to be a relocation choice so there will be an ongoing need for housing. Both nonresidential building and nonbuilding construction are expected to remain steady in 2024. Manufacturing Colorado’s manufacturing sector posted its fastest pace of growth since 2018, but interest rates, shifts in consumer behavior, and other issues impacted employment in 2023. The good news is that employment in this sector is expected to continue growing but at a more modest pace in 2024. Trade, Transportation, and Utilities This sector includes retail and wholesale, which has been tricky since the pandemic shifted purchasing habits. Lewandowski says the report shows a slow growth trajectory, but even slow growth for trade is an extremely positive story. “In the face of so much e-commerce and transition, the industry has been able to find an equilibrium between brick-and-mortar stores and ecommerce,” he says. Information After pandemic-era growth, job growth in the information sector dipped in 2023. “Tech is under pressure, and less money is being invested because returns are low,” Lewandowski says. “Investors are seeking higher returns. Now that interest rates are up, there’s more competition for startups to get funding. Investors are seeking places to put their money that aren’t so high risk.”

HAVE WE ACHIEVED THE NEW NORMAL? After years of disruptions, Lewandowski likens doing business today to playing a game of Whack-A-Mole. “It shows how interconnected, and even fragile, the economy is. The fragility of it is that one disruption has a cascading disruption elsewhere,” he says. “But our economy has also demonstrated its resiliency.” Overall though, Lewandowski says the economy does feel more normal. “Even with the higher interest rates, we’re seeing more normal rates of growth. We went through a period of free money for so long that I’d argue we weren’t pricing that risk appropriately.”

Colorado is still a growing market, Lewandowski adds. For those who might want to expand their business portfolio, opportunities will arise. There are still a lot of things to keep an eye on in 2024. “We think that interest rates are still a big risk and inflation will still be high,” Lewandowski says. “The fiscal situation is still a concern, especially the debt limit as the government refinances short-term debt at much higher rates than it was originally issued. Short-term bonds are coming due and debt that is three times higher will squeeze federal spending, which impacts discretionary spending. There is still consumer growth risk as well. “There is slow real wage growth, high inflation, interest rates, low savings, and higher credit card debt that will weigh on consumers to push the economy.” But Colorado is still a growing market, Lewandowski adds. For those who might want to expand their business portfolio, opportunities will arise. “Colorado is a higher income state, and we have a higher concentration of tech sectors,” he says. “Even though we’re in a slower housing market, we’re still growing.” The worker shortage is a longer-term issue, and unless there’s a recession that causes people to lose their jobs and start seeking, the Outlook is still forecasting a tight labor market. “It is the result of the huge number of retirees and smaller generations coming through the pipeline,” Lewandowski says. “This is something our country will be grappling with for decades.”

REVIEW, ASSESS, PREPARE, REPEAT In July 2024, the BRD committees will gather to review the forecasts they made in late 2023 and identify factors that will positively or negatively drive change in their industry’s economic performance during the second half of the year. “We ask them to look at how things are trending compared to what we expected, what has changed in their sector, and their new expectations to finish out the year,” Lewandowski says. “And then in September, we kick off the new season with the new contributors to begin talking about the macro economy, expectations for growth, headwinds, and challenges in the economy.”

The full 59th Annual Colorado Business Economic Outlook 2024 is available for download at:

NewsAccount | Winter 2024

cocpa.org/CBEO-2024

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

Welcome, New COCPA Members The COCPA welcomes the following new members, who joined between August and November 2023.

Visit the COCPA Member Directory at cocpa.org/member-directory.

FELLOW MEMBERS Oscar Ambriz-Cisneros Brandy Annable Laiza Ashraf Haleigh Avila Dan Baer Richard Bagby Monja Bastan Racheal Bell Brenda Boas Himalaya Budhathoki David Buist Zachary Byham John Caldwell Alexis Clark

William Clippinger Jessica Dingman Elizabeth Donley Blaine Dunn Shannon Faulkner Corrina Fernalld Harrison Finch Amber Firth Brandon Fischer Maxine Greenstein Taylor Gregoire Joseph Hamilton Kenneth Hannan Jada Harben

Amele Hounakey-akakpo David Jackson Anika Jensen Melissa Kerr Rachel Kolb John Kwiat Catalina Larsen Rosen Lima Teresa Lindberg Jina Malouff Ruth Marshall Melissa McCann Craig Meis Kristara Mielke

Richard Moore Molly Mulhollen Beata Olszewski Sophie Owens Thomas Pachl Stephanie Padgett Mark Peniston Jonathan Perillo Olivia Perrone Megan Rogers Nathan Salsbery Ken Schreiner Courtney Sexton Calvin Shannon

Kia Smith Heath Stafford Tim Strande Erik Taylor Georgina Trygg Ling Tuo Fernando Varela Asha Vasant sherry Wallen Jennifer Weyer Miikkalin Wickman Andrew Wixson Justin Woodruff

ASSOCIATE MEMBERS Malcolm Aylett Alyssa Begaye John Bixler Jacob Brunswig Kyle Byers Christopher Camper Erin Cass

Michael Daas Sarah Dunahay Zachary Elsass Russell Epperson Magdalena Gembal Haley Hagearty Richard Hanley

Stephen Hughes Rachael Kaiser Courtney Kennedy Caitlin Kereszturi Elizabeth Lind-Hoff Lori Miller Luke Morales

Anupama Nair Nhi Nguyen Karen Phan-Ho Christina Pitassi John Riley Karina Sahagun Lew Spelgatti

Erin Sullivan Blake Tarbell Kelly Turner Mike Wallen Mallery Wood

Sara Francisco Chantelle Hobgood William Hollis

Patricia Lawrence Sofia Lee Xiuling Li

David Lockwood Scott McKinney

Lauren Morel Steven Purdy

STUDENT MEMBERS Jessica Block Jackson Busche Gabrielle Carpenter

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. 26

NewsAccount | Winter 2024

SUSTAINABILITY

Five Critical Insights in Applying COSO’s Guidance for ICSR BY STEVE WILKERSON, CPA, CFSA, AND PRASHANT PANAVALLI, CIA, ARM-E, AFE

As CPAs work to educate their clients on the increasing relevance of environmental, social, and governance (ESG) disclosures and assurance, the following article, the first in a two-part series, provides insights on how organizations can align their ESG efforts with the most recent report from the Treadway Commission’s Committee of Sponsoring Organizations (COSO). Consider sharing it with your clients as a resource in applying the tenets of the report to their sustainable business activities.

hrough its recent report, the Committee of Sponsoring Organization of the Treadway Commission (COSO) has provided direction on how to integrate sustainability into an organization with effective internal control.1

THE ICIF CONTAINS 17 PRINCIPLES BROKEN DOWN INTO FIVE COMPONENTS:

COSO developed the Internal Control–Integrated Framework (ICIF), which is commonly used for achieving effective internal control over financial reporting. The latest report from COSO doesn’t change the ICIF; instead, it shows how organizations should apply the existing ICIF to sustainable business activities and information.

Control environment

Risk assessment Control activities

COSO states that “effective internal controls can help an organization articulate its purpose, set its objectives and strategy, and grow on a sustained basis with confidence and integrity in all types of information.”2 Organiza-

3 4

Information and communication

Monitoring activities

tions should align their ESG program to COSO’s ICIF to improve the quality of data and embed sustainability into the organization.

1 2

Guidance on Internal Control (coso.org) Guidance on Internal Control (coso.org)

CONTINUED ON PAGE 28 Winter 2024 | www.cocpa.org

SUSTAINABILITY CONTINUED FROM PAGE 27

As you think about your organization’s internal controls, be sure to keep the following insights in mind:

Control environment

ORGANIZATIONS NEED TO HAVE A CULTURE OF INTERNAL CONTROL FOR ESG. More corporations are now reporting on sustainability or ESG topics compared to prior years. However, in some organizations, the ESG reporting function may be siloed and may not be integrated with the rest of the organization. Establishing clear responsibilities through the board of directors, committing to competent human resources, and enforcing accountability are ways to establish an enduring, integrated ESG function.

The first action under the ICIF framework is committing to integrity and purpose. An organization’s mission statement and values often contain an organization’s purpose and discuss the importance of integrity. The reason why stakeholders contribute their resources to an organization and what they expect in return can also help articulate an organization’s purpose. Having an organization’s ESG efforts driven by this purpose can produce powerful results.

Governance of the ESG reporting function is one of the first things that should be established when starting ESG reporting. Some questions to consider include: • As the organization releases more ESG information externally, should the audit committee provide more oversight?

• What is the extent of independent assurance of ESG information and what firm should be engaged to perform assurance?

• Are charters revised to include oversight of external ESG reporting and disclosures regarding the effectiveness of the organization’s system of Internal Controls on Sustainability Reporting (ICSR)?

• Does internal control for ESG information align with the Three Lines of Defense model from the Institute of Internal Audit?3

Organizations should also hold individuals accountable for their internal control responsibilities. Accountability questions to ask within your organization include: • Do managers and others understand the organizational commitments so that they can properly prioritize ESG? • Does the organization have incentive compensation tied to sustainable business objectives?

• Setting sustainable business targets externally and for incentive compensation can drive performance; however, it may also cause pressure to meet targets. Is there proper organization, structure, resource commitments, and controls to effectively monitor progress for sustainability targets?

Risk assessment

ORGANIZATIONS NEED TO SPECIFY OBJECTIVES AND IDENTIFY RISKS TO BOTH THEIR ESG INITIATIVES AND ESG REPORTING. Sustainable business objectives are a means to tie the organization’s purpose or mission, values, and corporate social responsibility goals to strategy. It’s critical to take the time to determine and map out these objectives as a first step. Once determined, organizations can then clearly identify the risks to achieving these objectives across the entity. Only then can an organization draft control activities to address the identified risks. Organizations should identify risks to achieving objectives across the entity, then use the analysis of those risks as a basis for determining how to manage the risks. Emerging trends should also be taken into consideration, especially as the expectations for sustainability reporting change frequently. Risks related to sustainability should be at least periodically evaluated to respond to economic drivers and regulatory changes. 3

Three Lines of Defense Model (theiia.org)

NewsAccount | Winter 2024

Figure R-1: Flow of Internal Control Framework Determine Objectives

Evaluate Effectiveness

Based on Leveraging the COSO Internal Control–Integrated Framework to Improve Confidence in Sustainability Performance Data

Commit to Integrity/Purpose

Identify and Assess Risks

Identify Control Activities

Source: COSO: Achieving Effective Internal Controls over Sustainability Reporting (ICSR): Building Trust and Confidence through the COSO Internal Control-Integrated Framework

Control activities

ESG CONTROLS NEED TO BE IMPLEMENTED TO ADDRESS IDENTIFIED RISKS. Control activities should be designed, developed, and implemented from the risk assessment. An ESG reporting readiness assessment can assist to identify areas where internal controls need to be implemented. Policies and procedures are a means of oversight to direct sustainable business objectives. These documents

should establish who is responsible for executing items in the policy or procedure. An inventory management plan (IMP) is commonly used to formalize a process for collecting, calculating, and maintaining greenhouse gas (GHG) emissions data.

Information and communication

ORGANIZATIONS NEED TO COMMUNICATE TO STAKEHOLDERS WHY THEY CAN TRUST THE ACCURACY OF ESG DATA. Investors and other stakeholders rely on accurate and complete sustainable business information. Communications should describe oversight systems used for

sustainable business activities and the effectiveness of these systems. Similarly, the extent and level of assurance should be communicated.

Monitoring activities

ORGANIZATIONS NEED TO CONTINUOUSLY MONITOR THE PERFORMANCE OF ESG CONTROLS. Organizations should complete readiness assessments or gap assessments to identify deficiencies in the ESG reporting cycle. Management should communicate deficiencies to responsible parties to facilitate improve-

ment and progress. Organizations should follow up on corrective action to determine whether improvements are operating as expected.

Sustainability continues to be an evolving area, and changes will always be on the horizon. Organizations that align their sustainability reporting to COSO’s ICIF are better able to efficiently manage these changes.

This article is for general information purposes only and is not to be considered as legal, assurance, or tax advice. This information was written by qualified, experienced professionals at FORVIS, but applying this information to your particular situation requires careful consideration of your specific facts and circumstances. Consult a professional at FORVIS or legal counsel before acting on any matter covered in this article. Steve Wilkerson, CPA, CFSA, is a senior manager on FORVIS’ ESG and Climate Risk team and is based in Denver. He is an FSA Credential Holder and serves on the COCPA ESG Working Group. Reach him at Steve.Wilkerson@forvis. com. Prashant Panavalli, CIA, ARM-E, AFE, is a principal and an enterprise risk management (ERM) leader with FORVIS in New York, and can be reached at Prashant.Panavalli@forvis.com. For more information on the COCPA ESG Working Group, contact Stephanie Bass at stephanie@cocpa.org. Winter 2024 | www.cocpa.org

PRACTICE MANAGEMENT

MAP Survey Results Offer Insights, Ideas on Practice Management Trends The results are in from the recent AICPA and CIMA 2023 National Management of an Accounting Practice (MAP) Survey, offering insights on the financial performance and practice-management strategies of participating accounting firms from across the United States. COCPA members may access the following related reports within the Society’s Resource Center: • Access the survey’s executive summary at cocpa.org/mapsummary for an in-depth look at the survey results from a national perspective. The summary offers ideas on how firms can best leverage the results to improve their own operations.

Scan here to access the survey's executive summary.

• Peruse the survey’s Western Region results at cocpa.org/mapwestern, highlighting the findings gleaned from firms in 13 western states, including Colorado. • Visit the Colorado-specific report, which features the findings gleaned from participating Colorado practitioners, at cocpa.org/mapcolorado. To access these and other resources, visit the members-only Resource Center at cocpa.org/resource-library.

cocpa.org/ mapsummary

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IN MEMORIAM

COCPA Editorial Board Member Barbara Tedesko Remembered for her Warm Demeanor, Passion for the Profession BY KELLI DAVIS

ongtime COCPA Editorial Board member Barbara Tedesko, CPA, CGMA, passed away on Sept. 19, 2023, following a battle with Non-Hodgkin’s lymphoma. A Denver native who earned her accounting degree from Lewis and Clark College in Portland, Oregon, Barbara worked for several accounting firms throughout her career, ultimately spending 26 years with the City and County of Denver before retiring in 2019. A COCPA member for nearly 30 years, Barbara served on the Society’s Editorial Board for more than 15 years. Fellow Editorial Board members Jack Allgood and Steve Van Meter, both of whom served in this capacity with Barbara for many years, note her warmth and positivity. Allgood describes her as “a great contributor in all respects. Barb’s personality was always uplifting.” Van Meter echoes the thought: “She was fun to work with and brought great insights and a wonderful, positive attitude to our team. She will be missed,” he says.

Even in retirement, Barbara continued working part time, serving roughly 40 tax clients who were also her family members and friends, while also maintaining the flexibility to travel, volunteer, and spend time in the Colorado outdoors. Retirement also meant a return to a pastime that she’d left behind 20 years earlier: skiing. In a 2021 NewsAccount article on planning for retirement, Barbara called her return to skiing “my absolute joy. I wanted to enjoy the view from the top of the mountain. It was one of my goals.” Barbara is survived by her husband of 41 years, Bill, two children, her grandson, and numerous other family members and dear friends. Donations in her memory may be made to the American Cancer Society.

Learn more: cocpa.org/cpa-flex-learning Winter 2024 | www.cocpa.org

MOVERS & SHAKERS

MICHAEL BEARUP, CPA Congratulations to Michael Bearup, CPA, past COCPA Chair and former KPMG Denver office managing partner, on his retirement. Family, colleagues, and friends, including retired COCPA CEO Mary E. Medley, honored Bearup, Sept. 14, 2023,

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Boulder/Longmont Tax Study Group

WEDNESDAYS, VIRTUAL ONLY, NOON-1 PM MT

Upcoming meetings: Congratulations to Cody Bair, CPA, and Kristen Mauer (Filak), CPA, who were each chosen to attend the 2023 AICPA Leadership Academy, held in December. Bair, a specialized tax services manager with PwC, and Mauer, an SEC financial reporting advisor with SM Energy, both in Denver, were among a class of just 36 CPAs nationwide who were selected to represent the Academy’s 15th graduating class.

CLASSIFIEDS

Feb. 7 | March 6 | April 3 Register at www.cocpa.org/Boulder-Tax-Study-Group

IN MEMORIAM We extend our sympathy to the family and friends of the following COCPA members and past member: Keith Hollingsworth Denver, member since 2011 George H. Lloyd Glenwood Springs, member 1972-2023 Donald Oatley Centennial, member since 1970

PRACTICES FOR SALE, PURCHASE, OR MERGER Selling your practice in 2023 or looking to purchase a practice? Let’s talk! IIf 2024 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 28 years of combined experience selling CPA firms. We know your market, have a large database of active buyers, and 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. Current Listings: Denver CPA Firm (Partial Sale) Gross $562k (NEW)

NewsAccount | Winter 2024

SHARE YOUR NEWS! 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.

High-quality, specialized learning for your team COCPA Customized Team Training makes it possible for you to create a learning experience specifically for your team’s needs. Select a course from our catalog, or work with us to customize a program for your accounting and finance team. WAYS TO DESIGN YOUR PROGRAM: Instructor

Focus area

Timeframe

Materials

We’ll work with you to build a customized course that helps your team improve its skill set in any number of areas, including things like ethics, communications, leadership, and more. And we can do that in person or virtually. Better yet, you can choose to use one of our available experts, or teach it in-house with our professional materials. Bring your entire team together for team building and learning that supports your department’s goals as well as the overall mission of the organization. With CPE, or without, we BUILD it for YOU, using our expertise in the accounting and finance arena.

Get a Personalized Proposal Today:

COCPA.org/customize

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

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Tax Season Cessation Program Experiencing: • Stress? • Lack of Sleep? • IRS induced Nausea? Sell your practice and RELIEVE it all... CONTACT US TODAY!

Delivering Results - One Practice At a time Kevin Overberg, CPA/PFS Kevin@aps.net

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(720) 988-4334 www.APS.net