2010 cpa report fourth edition

South Carolina Association of Certified Public Accountants

F o u r t h E d i t i o n 2 0 1 0

SCACPA Celebrates 95 Years!

1915 - 2010Reflecting Back, Looking Forward

CPA ReportCPA Report

n Reflecting Back -- Looking Forward

n Member Profiles: Our Oldest and Youngest CPAs

Also, don’t miss South Carolina Tax Changes!

South Carolina CPA Report 2 (888) 557-4814 | www.scacpa.org

Charleston 2430 Mall Drive, Suite 360 Greenville

843-884-3912 Charleston, SC 29406 864-245-8788

www.american-pensions.com

South Carolina CPA Report 3(888) 557-4814 | www.scacpa.org


SCACPA Celebrates 95 Years

In This Issue

In Every Issue5 From the President

6 Association News

8 On Your Behalf

27 Board of Accountancy News

31 Chapter Connections

32 Member News

33 Welcome New Members

34 Upcoming CPE

38 Classifieds/Advertiser Index

11 Reflecting Back -- Looking Forward

14 Member Profiles: Oldest and Youngest

16 CPA-PAC Report and Contributors List

18 South Carolina Tax Changes

22 2010-2011 Health Care Reform

24 Health Care Reform Act

26 LLR News: Positive Enforcement Programs

28 Emerging Leaders Conference Review

36 A&A Conference Preview

Officerscharles e. “eddie” Brown, cPA, President

Timothy L. Baker, cPA, President Elect

Michael r. Putich, cPA, Vice President

sharon e. Mann, cPA, Secretary-Treasurer

charles M. redfern iii, cPA, Past President

BOArD Of DirecTOrsClarence Coleman Jr., CPA, Ph.D.

Alys Anne Dennis, CPAJ. Bratton Fennell, CPA

Malynda M. Grimsley, CPAPenny A. Lewis, CPA

A. D. “Dave” Masters, CPAJ. Patrick McDermott, CPA

James W. McIlrath, CPAWilliam C. Robinson, CPA

L. Kent Satterfield, CPAPhilip R. Snipes, CPA

Michael J. Targia, CPA, CFARobert M. Tilton, CPAJada C. McAbee, CPABeth T. Zamorski, CPA

eXecUTiVe DirecTOr Erin P. Hardwick, CAE

MANAGiNG eDiTOrAllison K. Caldwell

GrAPHic DesiGNer Lisa S. McGee

cONTriBUTiNG wriTersReva Brennan, MPA, CAE, IOM

Allison CaldwellK. Todd Dailey, CPA, CVA

William M. Grooms, PhD, CPA Erin P. Hardwick, CAE Mark T. Hobbs, CPA

James M. Holloway, Jr., CPAAmanda W. Koehler, CPA

Mark RileyJason Sweatt, CPA

2010 eDiTOriAL BOArDMargaret L. Lattimore, CPA, Chair

Ellen K. Adkins, CPA, MBACharles E. Alvis, CPA, MPA, MBA

John B. Brantley, CPAJackie F. Breland, CPA

Neil A. Brown, CPA, MAcc, CFPAmanda S. Colgate, CPA

Lisa S. Cooke, CPAMalynda M. Grimsley, CPA

Karen A. Hursey, CPALesley H. Kelly, CPA

Marsha G. LePhew, CPAA. D. “Dave” Masters, CPA

Derrick B. Stark, CPACatherine B. Stoddard, CPAVictor C. Webster, CPA, MBA

South Carolina Association of Certified Public Accountants Magazine

Volume 40, Fourth Edition 2010

Statements of fact and opinion are made by the authors alone and do not imply an opinion on the part of the officers or members of the SCACPA. Advertising rates will be furnished on request to SCACPA, 570 Chris Drive, West Columbia, SC 29169, (803) 791-4181. Publication of an advertisement in The CPA Report does not constitute an endorsement of the product or service by The CPA Report or the SCACPA.

CPA ReportSouth Carolina Association of CPAs


Maybe Itʼs Time to Audit Your Health Plan? Healthcare is changing these days; maybe your benefit plan should too. Southeastern Insurance Consultants can help. Because when it comes to understanding the new healthcare landscape, nobody knows more than SIC. From working with state and federal government to help shape new legislation, to understanding legal compliance and benefit administration, the benefit pros at SIC are at the forefront of the industry. And as one of the largest benefit companies in South Carolina, SIC has the ability to back it up, providing first-class service to keep you in informed and in control. Call us today for a free audit of your plan.

Southeastern Insurance Consultants, LLC

PO Box 1396, Irmo, SC 29063 | Toll Free: 866-567-2227 | Office: 803-732-7284 | Lowcountry Office: 843-342-5018

Southeastern Insurance Consultants… Our knowledge, your benefit!

The Exclusive Provider of Health and Dental Insurance Programs to SCACPA

Why Southeastern Insurance Consultants? Multiple Plan Options (POS, HMO, HSA, etc.)

Sole Proprietor Coverage – SCACPA plan (offered through SIC) is one of the only plans to allow sole proprietors to take advantage of group plan options.

Dental Insurance

Life Insurance – Medical plan participants receive $20,000 Life & AD&D coverage.

Additional benefit options – Short/Long Term Disability, Retirement Plans (401k, SEP, etc.), Wellness Plans, Benefit Consulting, Supplemental benefits, Individual/Child Plans

South Carolina

CPA


From the President

Reflections on the CPA profession, life, love and just about anything else that captures the interest of SCACPA’s 2010 President Eddie Brown

• TheCentralChapterincreaseditsscholarshipendowmentby$20,000.

• OurExecutiveDirectorwasnamedExecutiveoftheYearbytheS.C.AssociationofAssociationExecutivesandwasalsoelectedbyherpeerstoserveassecretary-treasureroftheCPASocietyExecutivesAssociation,representing54CPAsocietiesnationwide.

• Threenewconferencesheldthisyear:Nonprofit,EmergingLeadersandWomeninLeadership.

• Federal-statetaxconformitylegislationsuccessfullypassedonMarch31,settingthestageforevenearlierpassageinthefuture.

• TheBoardcreatedaRapidResponseTeamtorespondquicklytoadvocacyrequestsfromtheAICPA.

• MorefirmsthanevercontributedtotheCPA-PAC,raising$15,000thisyear.

• WecelebratedourfirstSouth Carolina CPA Report magazinewithalllocallygeneratedcontent.

Maybe Itʼs Time to Audit Your Health Plan? Healthcare is changing these days; maybe your benefit plan should too. Southeastern Insurance Consultants can help. Because when it comes to understanding the new healthcare landscape, nobody knows more than SIC. From working with state and federal government to help shape new legislation, to understanding legal compliance and benefit administration, the benefit pros at SIC are at the forefront of the industry. And as one of the largest benefit companies in South Carolina, SIC has the ability to back it up, providing first-class service to keep you in informed and in control. Call us today for a free audit of your plan.

Southeastern Insurance Consultants, LLC

PO Box 1396, Irmo, SC 29063 | Toll Free: 866-567-2227 | Office: 803-732-7284 | Lowcountry Office: 843-342-5018

Southeastern Insurance Consultants… Our knowledge, your benefit!

The Exclusive Provider of Health and Dental Insurance Programs to SCACPA

Why Southeastern Insurance Consultants? Multiple Plan Options (POS, HMO, HSA, etc.)

Sole Proprietor Coverage – SCACPA plan (offered through SIC) is one of the only plans to allow sole proprietors to take advantage of group plan options.

Dental Insurance

Life Insurance – Medical plan participants receive $20,000 Life & AD&D coverage.

Additional benefit options – Short/Long Term Disability, Retirement Plans (401k, SEP, etc.), Wellness Plans, Benefit Consulting, Supplemental benefits, Individual/Child Plans

South Carolina

CPA

• BroadcastedthefirstSCACPA-generatedwebcast:ProfessionalIssuesUpdate(October1).

• Startedandmaintainedourfirstblog,KeepingBalanced.Ihopeyouhavetakentimetoreaditoccasionally.

• TheITCommitteeandfinancedirectorworkeddiligentlytoensureSCACPA’s

creditcardprocessisPCIcompliant.

• OurinauguralSustainabilityTaskForceestablishedanddevelopedinformationandprogrammingthatbecameourfirstconcertedeffortonbehalfofSouthCarolinaCPAsandtheiremployers.

• ASouthCarolinaCPAwasinterviewedandvideotapedbytheJournal of Accountancy relativetosettingupaninternationaltaxniche.ThevideoispostedontheJOA’swebsite.

• Approximately25percentofSCACPAmembers(800)attendedoneofnineProfessionalIssuesUpdatesaroundthestate.

• OurPeerReviewCommitteetransitionedto apaperlessprocessfortheReportAcceptance

Bodies.

AsIwritemylastcolumnaspresidentofSCACPA,it’shardtobelievethisexcitingyearwillsooncometoanend.ManyofmyfellowCPAsandtheSCACPAstaffsuperstarshaveandcontinuetoachievethe“WOWs”thatIchallengedthemtoinJanuary,withthegoalof

establishingourselvesasanemergingleaderintheprofession.

MyWOWchallengeswerenotclearlydefined,butlefttotheimaginationandindustriousforethoughtofagreatteamthatworkshardtopolishandmaintainthereputationofallCPAsinSouthCarolina.AlthoughI’llprobablybeintroubleformissingsomeofthem(towhichIoffersincereapologiesinadvance),here’sanattempttorecognizeour2010milestones:

C.E. “Eddie” Brown, CPASCACPA member since 1976

As shareholder of Swaim Brown, PA, Eddie practices in the areas of corporate and individual tax planning and strategy, international tax, business consulting, estate planning, business planning, M&A, succession planning; manufacturing, real estate and construction.

Eddie is actively in involved with AICPA; SCACPA; Estate Planning Council of Spartanburg and serves as trustee of the South Carolina Baptist Foundation.

Follow Eddie Brown as he blogs weekly.

http://scacpa.org.wordpress.com

ThesearejustafewoftheWOWswe’veaccomplishedthisyear,forthebenefitofSCACPAmembersandtheprofessionasawhole.Ithasbeenmyprivilegeandhonortoserve,andIlookforwardtocontinuedmomentumandprogressaswemoveforwardtogether.n


Going GreenInourcontinuedeffortstoincreasesustainabilityanddorightbytheenvironment,SCACPAheadquartersrecentlyfulfilledLexingtonCountyCouncil’sGreenBusinessCertificationrequirements.Formoreinformationonsustainabilityandtolearnhowyourfirmcangogreen,visitwww.scacpa.org/sustainability.

PiU replayMisstheProfessionalIssuesUpdateinColumbiaonOctober1,2010?Watchare-broadcastofthewebcast.Formoreinformationandtoregister,visitwww.scacpa.org/PIU.YOUR ROAD TO SUCCESS

2010 Professional Issues Update Series

scAcPA welcomes April BlakeAsOfficeandMemberServicesCoordinator,AprilBlakeisthefirstpointofcontactforSCACPAmembers,non-members,vendorsandguestsintheoffice.Sheprocessesmemberinformationandrenewals,assistsstaffmemberswithspecialprojectsandoverseesofficeoperations.Aprilisa2008graduateoftheUniversityofSouthCarolinaSchoolofJournalismwithadegreeinPublicRelations.Outsideofwork,sheisinvolvedwiththeCayce-WestColumbiaJayceeschapterandenjoyscooking,bicyclingaroundtownwithherhusbandandreading.

Happy Birthday to scAcPASCACPAcelebratesits95thanniversaryin2010.Foundedin1915byasmallgroupofvisionaryCPAs,SCACPAhasaproudhistoryofprovidingadvocacy,memberservicesandcontinuingeducationtothegrowingpoolofCPAsinthestate.Tocelebratethismilestone,pleaseconsideragenerousdonationtotheEducationalFundatyourmembershiprenewaltime.Whetheryoudonate$10or$100,yourgiftwillbegreatlyappreciatedandistax-deductible.WhatbetterwaytohelpstrengthenthefutureoftheprofessioninSouthCarolina?Staff Contact: GlennaMinor

Let Us Hear from YouThe South Carolina CPA Report andtheSCACPAEditorialBoardwelcomeslettersfromreadersinresponsetoarticlespublishedinthemagazineaswellasthoseconcerningissuesofgeneralinteresttotheaccountingprofession.Alllettersreceiveconsideration.Theeditorsreservetherighttoeditlettersforclarityandlength.Writersshouldincludetheircontactinformation,includingadaytimetelephonenumberande-mailaddress,ifpossible.Lettersmaybeaddressedto:LetterstotheEditor;TheSouth Carolina CPA Report;570ChrisDrive;WestColumbia,[email protected] Contact:ErinHardwick

Association News


SOUTH CAROLINA ASSOCIATION OF CPAs570 Chris Drive, West Columbia, South Carolina 29169(803) 791-4181 or Toll-free (888) 557-4814Fax (803) 791-4196 | www.SCACPA.org

OUR MISSIONTo support all CPAs – whether in public practice, industry, government or education – with lifelong learning opportunities necessary for their success and to promote high ethical standards and legislative advocacy for both the public good and the profession. We accomplish this mission through the following activities:

n Advocacyn Certification & Licensingn Communications

SCACPA STAFFErin P. Hardwick, CAE, Executive Director Ext. 104, [email protected]

Reva E. Brennan, MPA, CAE, IOM, Associate Director Ext. 103, [email protected]

Karen M. Hancock, CPA, Finance Director Ext. 108, [email protected]

Glenna P. Minor, Peer Review & Member Services Manager Ext. 107, [email protected]

April C. Cox, Education Manager Ext. 110, [email protected]

Emily M. Allen, Communications Coordinator Ext. 106, [email protected]

Sandra P. Oxner, CMP, CMMM, Chapter & Special Events CoordinatorExt. 112, [email protected]

April Blake, Office and Member Services Coordinator Ext. 100, [email protected]

n Recruiting & Educationn Standards & Performance

educational fund Announcements

TheCentralChapterofSCACPAannouncesasecondcontributionof

$20,000toestablishanadditionalendowedscholarshiptoSCACPA’sEducationalFund.TheCentralChaptercurrentlyfundsa$2,500scholarshiptobeawardedtoastudentwhosepermanentaddressiswithinthechapterareaandwhoisattendingacollegeoruniversityinthechapterarea,preferablyboth.Thesecondscholarshipwillgotoagraduatestudentwhomeetsspecifiedcriteria.

TheSeaIslandChapterofSCACPAhascontributed$6,500totheEducationalFund,allowingthechaptertoreachatotalcontributiongoalof

$10,000—creatinganendowed,namedscholarshipforthechapter.

New Peer reviewers & e-mailed formsTheSCACPAPeerReviewCommitteeispleasedtoannouncethefollowingnewpeerreviewers:

Brandon HoffmanHoffman&HoffmanCPAPA,Charleston

Tom ChildersElliottDavis,LLC,Greenville

Michael BoliekElliottDavis,LLC,Greenville

Joseph BeckJones,Pounder&Associates,P.C.,Charleston

John HortonJohnC.Horton,CPA,PC,Conway

Lynn MedlinLowery&Medlin,P.A.,CPAs,Surfside Beach

Foster McKinneyHamiltonMoss&McKinney,Columbia

Sout

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ssociation of CPAs•Educational Fund

Investing in the Future

Thesenewscholarshipfundsestablishedbychaptersshowleadershipandvisionfortheprofessionanditsfuture!The2011-2012scholarshipapplicationwillbeavailableonlineinJanuary.ThedeadlinetoapplyisJune1,2011.Staff contact: GlennaMinor

Tosavetimeandmoney,peerreviewschedulingformswillnowbesentviae-mail.Pleasebesuretoupdateyourfirm’speerreviewcontactande-mailaddresswiththeAICPAorSCACPA.Visit www.scacpa.org foralistofcurrentpeerreviewers.

Staff contact:GlennaMinor

ThePeerReviewProgramisinneedofteammembersinanumberofspecialtyareas.Ifyouareinterestedinbeingaconsultantbutnotnecessarilyperformingpeerreviews,weneedyou!Staff Contact:GlennaMinor


On Your Behalf Third Quarter Report

For the profession, by the profession—that’s what the South Carolina Association of CPAs is all about. SCACPA’s board of directors, committees and task forces and Young CPAs Leadership Cabinet are hard at work making decisions, providing guidance and embarking on projects and programs that strengthen the profession and enable members to improve their knowledge, network and technical skills. South

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Association GovernanceEveryAugusttheSCACPABoardofDirectorsgathersforatwo-dayplanningretreattodiscusschallengesandissuesfacingmembers,theprofessionandtheAssociation,endingwithgoalsandprioritiesidentifiedforthefuture.Thisyearsome27associationleaders,includingrepresentativesfromtheeightchaptersandtheYoungCPALeadershipCabinet,joinedtheSCACPABoardintheplanningsession.

President-electTimBakerorganizedtheplanningretreatandchoseMarylandAssociationofCPAsCEOTomHoodtofacilitatethemeeting.Inpreparation,TomaskedplanningretreatparticipantstoreadanarticlecalledBuilding Your Company’s VisionbyJimCollinsandtocompletearelatedworksheet.Attheplanningsession,participantscontributedtoareviewofprofessionissuesandtrends,anenvironmentalscan,anevaluationofstrengthsandchallengesoftheAssociationandultimatelyidentifiedfivegoalsfor2011-2016.Thegoals,whichwilldriveSCACPA’sfocusandresources,are:

1. Study and generate innovation aroundcontinuingprofessionaleducation;

2. Enhance advocacyeffortsfortheprofessionandincreasetheeffectivenessofourcollectivevoice;

3. Grow and support theroleofyoung CPAs asleadersintheAssociation;

4. Increase the value of membershipthroughcommunication;and

5. Restructure theAssociation’sgovernancestructuretoenhancememberinvolvementandmemberservice.

Taskforcesarebeingformedaroundeachgoaltodefineactionstepsforthenext18monthsandbeyond.Lookformoredetailontheworkofthesetaskforcesinthemonthstocome.

South Carolina

CPA

2010 BOArD PLANNiNG reTreAT PArTiciPANTsEddie Brown, SCACPA president

Tim Baker, SCACPA president-elect

Amy Cain, Central Chapter president

Pat Carey, Sea Island Chapter president

Clarence Coleman, SCACPA board member

Alys Anne Dennis, SCACPA board member

Rick Ett, Coastal Chapter President

Malynda Grimsley, SCACPA board member

Mandy Hallman, Grand Strand Chapter president

Melanie Hill, Piedmont Chapter president

Penny Lewis, SCACPA board member

Dave Masters, SCACPA board member

Pat McDermott, SCACPA board member

Suzanne Merritt, Catawba Chapter President

Michael Putich, SCACPA vice-president

Bryan Rabon, Pee Dee Chapter president

Charlie Redfern, SCACPA past-president

Bill Robinson, SCACPA board member

Kent Satterfield, SCACPA board member

Leigh Schaefers, chair, Young CPA Leaders Cabinet

Kara Shealy, Foothills Chapter President

Mike Targia, SCACPA board member

William Thiem, Young CPA Leadership Cabinet

Beth Zamorski, SCACPA board member


Erin P. Hardwick, CAE has served as SCACPA’s executive director since 2005. She has more than 25 years of experience in association and non-profit executive leadership and is one of 18 Certified Association Executives in South Carolina, the highest credential

in the association management profession. She currently serves on the SC Secretary of State’s Nonprofit Advisory Council, the Saluda Shoals Park Foundation Board of Directors and the SC Council on Economic Education Board of Directors.

Board of Directors Meeting

TheSCACPABoardofDirectorsmetAugust6immediatelyfollowingtheplanningretreat.Amongseveralitemsofbusiness,theboardreceivedandapprovedafavorable2009auditreportfromitsauditorElliottDavis.

Thetwo-yearprojectofupdatingtheSCACPAbylawshasbeencompleted,andthefinaldraftwasreviewedandapproved.Forcompletecongruencethroughouttheorganization,chapterbylawswillsoonbeconformedtothesechanges.

TheNominatingCommitteepresenteditsrecommendationsforthe2011boardslate,andtheslatewasapproved.ThisslatewasalsopresentedtoSCACPAmembersinthethirdedition(August)oftheSouth Carolina CPA Report.Memberswillhavetheopportunitytovoteonthisslateattheannualbusinessmeetingatthe2010CPASummit,November11.

TheboardheardareportoneffortstoreviewCPEoperationsofSCACPAandchapters.AfterdiscussiontheboardcommissionedanewtaskforcetoexaminethefullspectrumofmemberservicesofferedbythestateAssociationaswellasitschapters.

TheCPA-PAChasmadeatotalof$17,500incontributionstostatecandidatesforgovernorandcertainHouseseats.ContributionstocandidateshelpSCACPAandtheprofessionmakevitalconnectionswithkeypolicymakers.It’spartofcrucialrelationship-buildingforatimewhenthoserelationshipsmaybeneededtoprotectandadvancetheCPAprofession.AsincerethankyougoestothemanyCPAswhoserveas“KeyPersonContacts”andhand-deliveredcontributioncheckstotheirlocallegislator.General Election Contribution RecipientsBothgubernatorialcandidates:Rep.NikkiHaleyandSen.VincentSheheen

Representatives: ListonBarfield(Conway),EricBedingfield(Mauldin),DonBowen(Anderson),JoanBrady(Columbia),RobertL.Brown(Hollywood),GildaCobb-Hunter(Orangeburg),DanielCooper(Anderson),TracyEdge(NorthMyrtleBeach),BobbyHarrell(Charleston),ChipHuggins(Columbia),HerbKirsh(Clover),DeborahLong(IndianLand),PhillipLowe(Florence),VidaMiller(PawleysIsland)HarryOtt,(St.Matthews),SteveParker(BoilingSprings),GenePinson(Greenwood),BillSandifer(Oconee),GarySimrill(RockHill).

Candidates: ToddAtwaterforHouseSeat87(Lexington),TommyPopeforHouseSeat47(YorkCounty),RickQuinnforHouseSeat69(Lexington)

GenerousdonationsgivenbyindividualmembersaswellasCPAfirmsarethesolemeansbywhichtheAssociationcanshowitssupportofcertainlegislatorsbysupportingtheircampaigns.Some240(or7percent)ofSCACPAmembershavedonatedover$13,000totheCPA-PACin2010.

Firms which have donated or pledged a total of $10,000 in 2010 include:DerrickStubbs&Stith,DixonHughes,ElliottDavis,McAbeeTalbertHalliday,theSchmoyerCompany,ScottMcElveen,WebsterRogers,Ernst&Young,GrantThornton,PriceWaterhouseCoopers,KPMG.

Thankyoutoeachandeverymemberandfirmwhoacknowledgesandsupportsthisimportantprocess!n

cPA-PAc Makes candidate contributions

Professional issues Update report 2010 PiU AttendanceSCACPAcompleteditsthirdannualPIUserieswithnineregionalmeetingsthisfall.EachmeetingcarriedapotentialoffourhoursoffreeCPE(avalueof$140)andfeaturedanoverviewofissuesimpactingtheprofession,aprimerontheissueofcorporatesustainabilityandalocallegislativepanel.Attendancewasoutstandingandthecommentsfromparticipantsfavorable.

Anderson 34 Charleston 153 Columbia 147 Florence 38 Greenville 141 Myrtle Beach 65 Rock Hill 50 Sea Island (Hilton Head) 61 Spartanburg 65 Total Attendance 754


ATTORNEYS AND COUNSELORS AT LAW

Joseph D. (Joe) Clark, Esq., 1201 Main Street, Columbia, SC 29201 803.779.3080 jclark@hsblawfi rm.com

WWW.HSBLAWFIRM.COM CHARLESTON COLUMBIA FLORENCE GREENVILLE MYRTLE BEACH WASHINGTON, DC

HELPING OUR CLIENTS NAVIGATE THROUGH GOOD TIMES AND BAD

Haynsworth Sinkler Boyd has one of the largest and most experienced corporate and business law practices in South Carolina.

Our corporate and business attorneys meet the needs of business clients, both large and small, for advice and counsel with organization and governance, mergers and acquisitions, fi nance and securities, tax and commercial transactions.

Let us help you prepare for the economy’s next bullish market.

TRANSFORMING THE BUSINESS LANDSCAPE


As we reflect back and look forward

to the future, we will strive as always to uphold

the high standards of quality,

excellence and ethics established

by our founders some 95 years ago.

Reflecting Back --Looking ForwardSCACPA Celebrates 95 Yearsby Al l i son Caldwel l

Itallbeganwithasix-membermeetinginColumbiaonSeptember2,1915,whereaconstitutionandby-lawswereadoptedandthefirstofficerselected.ArecesswastakenuntilSeptember16,whenSecretaryLouisA.Searson,CPApresentedanofficialcharterandseal.

Thatsecondmeetingwasconsideredthefirstregularannualmeeting,andtheSouthCarolinaAssociationofCertifiedPublicAccountantswasborn.

ItsestablishmentmarkedtheemergenceofaccountancyasaprofessioninSouthCarolina(NewYorkpassedthefirstCPAlawin1896,followedbyPennsylvaniaand33otherstatesby1914).Accordingtoa50-yearhistorycompiledin1965bymemberandformerPresidentNoahE.Derrick,CPA,WWIhinderedanyrealgrowthinmembershipuntil1921,whenaninvitationwassenttoallSouthCarolinaCPAs.ThefirstmembershipcertificatewasissuedtoSearson,whofirstinitiatedtheplanforastateassociation.

TodaySCACPAisastatewideprofessionalorganizationrepresentingmorethan3,850CPAsandaccountingprofessionals,governedbya20-membervoluntaryBoardofDirectorsandfacilitatedbyan10-memberprofessionalstaff.AlthoughtheprofessionandSCACPAitselfhasseenmanychangessince1915,manyarestillreapingthebenefitsofthosehumblebeginnings.

Forour95thanniversary,SCACPAaskedseveral“outstanding”memberstosharetheiruniquemembershipexperiencesandmessagestofellowmembers.ScatteredthroughoutareafewtimelinehighlightstowhetyourappetiteforSCACPA’scentennialcelebrationin2015.Aswereflectbackandlookforwardtothefuture,wewillstriveasalwaystoupholdthehighstandardsofquality,excellenceandethicsestablishedbyourfounderssome95yearsago.

ATTORNEYS AND COUNSELORS AT LAW

Joseph D. (Joe) Clark, Esq., 1201 Main Street, Columbia, SC 29201 803.779.3080 jclark@hsblawfi rm.com

WWW.HSBLAWFIRM.COM CHARLESTON COLUMBIA FLORENCE GREENVILLE MYRTLE BEACH WASHINGTON, DC

HELPING OUR CLIENTS NAVIGATE THROUGH GOOD TIMES AND BAD

Haynsworth Sinkler Boyd has one of the largest and most experienced corporate and business law practices in South Carolina.

Our corporate and business attorneys meet the needs of business clients, both large and small, for advice and counsel with organization and governance, mergers and acquisitions, fi nance and securities, tax and commercial transactions.

Let us help you prepare for the economy’s next bullish market.

TRANSFORMING THE BUSINESS LANDSCAPE

1915 South Carolina passes CPA lawSCACPA chartered with 6 members

1927Columbia Chapter first organized

1927First Association scholarship awarded ($50)

1945S.C. Certificate #100 issued

1958 Central and Piedmont Chapters organized

1959Coastal Chapter organized

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SCACPA Milestones

South Carolina

CPASouth Carolina CPA Report 12 (888) 557-4814 | www.scacpa.org

1964First $500 scholarship awarded

1969 Pee Dee Chapter organized

1975Membership reaches 600

1979Catawba Chapter organized


1982Foothills and Sea Island Chapters organized

SCACPA Milestones

FORMER PRESIDENT (1959) AND SON OF A FORMER PRESIDENT (1922)

crawford clarkson, cPASCACPA member since 1948

Your father received the first CPA certificate awarded

in South Carolina. In choosing your own profession, what made you want to follow in his footsteps? Hehadaverysuccessfulbusiness.Iworkedforhimeverysummerinhighschool,butthenWWIIcamealongandIspentsixyearsintheNavybeforejoininghimatA.C.ClarksonCompany.

What have been some of your proudest accomplishments as a CPA and a member of SCACPA? Thereareseveral.Frommyfather,IinheritedafirmwithoneCPA,anassistantandmyself—andwewentontohaveasmanyas75peopleworkingalloverthesoutheastandinternationally.WhenIfirstbeganservingwiththeAICPA,therewerenorulesregardingauditing.IservedontheAICPAcommitteethatproducedthefirstrulesofauditingandProcedureNo.1.AspartoftheSecurityTaxCommission,Iwasalsopartofthegroupinstrumentalinrevampingthestatetaxcode.AndaspresidentofSCACPA,Istartedafourorfivepagenewsletterthatwastheforerunnerofthemagazineyounowholdinyourhands.I’mveryproudofthispublicationandwhatithasbecome.

What’s your message to today’s CPAs regarding the future of the profession? Twothings:1)Beveryflexible.Thingsarechangingrapidly,andifyou’regoingtosucceedyoumustbewillingtochangeandgrowaswell.2)Donotforgetethics.Allofussometimesrunroughshodovertherules,butnowmorethaneverweneed

torememberandupholdthestrongsenseofethicsourprofessionwasbuiltupon.It’sjustoneman’sviewpoint,butIseeoursandotherprofessionsdriftingawayfromwhatweoncehad.

LONGEST CONSECUTIVE RECORD OF SCACPA ANNUAL MEETING ATTENDANCE

Bob cooper, cPASCACPA member since 1965

How many consecutive annual meetings have you attended?

ThiscomingNovember,Iwillbeattendingmy45thconsecutiveannualmeeting.IreceivedmySouthCarolinaCPACertificate(#394)inSeptember1965.IbecameamemberofSCACPAinDecemberofthatyearandattendedmyfirstannualmeetingin1966. What do you enjoy most about SCACPA’s annual meetings?IalwaysenjoyseeingmyCPAfriendsandtheSCACPAstaffeveryyear,andIespeciallylookforwardtotheCPEsessions. What’s your message to new members or those who have never attended an annual meeting?Hopefully,ifyouwillmakeitapointtoattendoneofourannualmeetings,Ibelieveyouwillreallyenjoyandbenefitfromtheexperience.YoumightevengethookedlikeIdidafterattendingmyfirstmeeting!

LONG-TIME KEY PERSON CONTACT

Harry Gregory, cPASCACPA member since 1967

When and how did you first become involved in the SCACPA’s Key Person

Contact program? NooneknowsexactlywhenSCACPA’sprogramgotstarted,butIwasinvolved.Ispentmorethan26yearsastheFederalKeyPersonCoordinatorfortheAICPAandservedmorethan35yearsontheLegislativeCommittee,whichledtothecreationofSCACPA’sKPCprogram.

Can you share a KPC success story? Thesuccessisinbuildinglasting,one-on-onerelationshipswiththeselegislators.Theyarepeople,justlikeus.OneofmyfavoritestoriesisanexperiencewiththeFederalKeyPersonprogram.The“bigsix”hadtheirownorganizationbackthenthatmetanddiscussedissuesonstateandnationallevels—whatwashappeninginWashington.WhenthingsstartedtocomeupinSouthCarolina,IsomehowgotinvitedtojointhesebigboyseventhoughIcamefromasmallfirm.Theyneverlookeddownonmeandlistenedtomycomments.WhenthevotefortortreformcamethroughintheU.S.Congress,Iknewtheminuteitpassed.IcalledArthurAnderson’sofficeandspokewithanExecutiveAssistant—whowaselated,butdidn’tbelievemeandcalledWashingtontofindoutwhatIalreadyknewwastrue.ThereareotherstorieswherelegislatorshavebrokenwiththeirpartyandvotedoppositetheirPresidentbecauseofameetinginsomebody’slivingroom.That’swhentheserelationshipsreallymakeadifference.

What’s your message to others on the importance of Key Person Contacts? PersonaladvocacyiscriticaltohelpingSCACPApromoteoropposelegislationthat

“The time you spend getting involved in SCACPA has a great return on investment.”

South Carolina

CPASouth Carolina CPA Report 13(888) 557-4814 | www.scacpa.org


2007Peer review became mandatory by the state for all firms providing attest services

2008CPA mobility legislation passed the state legislature

2009 The SCACPA Young CPA Leadership Cabinet was created

affectsourprofession.Myhopeisthatmanyotherswillgetinvolved.ServingasaKPCshouldn’tbejustaresume-builder.Whetheryouagreeordisagreewiththeirvote,it’saboutbuildingafriendshipwhereyoucancallandsay,“Thisisourposition—seewhatyoucando.”

SCACPA’S FIRST FEMALE PRESIDENT (1991)

Anne rossSCACPA member since 1975

What year did you first become a member of SCACPA, and how long after

that did you serve as president? IjoinedinAugust1975andworkedmywaythroughtheCentralChapteroffices—IwaspregnanttheyearIwas[chapter]president,sothatwouldhavebeen1983.Aschapterpresident,IservedontheSCACPABoardandbecamepresidentin1991.

What were the most challenging AND the most rewarding experiences during your tenure? ThemostchallengingwasbeingconsideredjustaCPA,andnotafemaleCPA.ThemostrewardingwereallthecontactsIhadthechancetomakewithinthestate,nationwideandacoupleofinternationalonesaswell.Allweretheresultsofmygettinginvolved.

What would you say to other women members with aspirations of leadership? Ihadexcellentmentors—J.W.Hunt,Sr.andWillHuntinauditandtax,andAustinSheheenandLollieCowardHarperinaffairsoftheassociationandtheprofession.Getinvolvedearlyinyourcareer.Listenandlearnatfirst,anddon’thesitatetotakeanactiveroleintheprofession.

BOARD MEMBER AND ACTIVE CHAPTER MEMBER

J. Bratton fennell, cPASCACPA member since 1989

What year did you become a member of SCACPA, and how has your service

actively increased over the years?IfirstjoinedSCACPAin1989andparticipatedinregularCPEandotherfunctions.Iincreasedmyactivitysignificantlyin2003byparticipatingwiththeTechnicalStandardsCommittee,teachingCPEattheA&AconferenceinCharleston.Sincethatdate,I’vebeenactivelyinvolvedasaChapterOfficerintheCoastalChapterandtheBoardRepresentativefromtheGrandStrandChapter. What have you learned about SCACPA and the benefits/challenges of active membership that perhaps you didn’t realize before?Weneedtotakeanactiverolepoliticallytoprotectourprofessionandourmembers.WithoutSCACPA’sactiveinvolvement,legislationcouldbepassed(ornotpassed)thatcouldimpactourmembersinaverynegativeway.ActivemembershiphasallowedmetobetternetworkwithotherCPAsinourstate,andtheserelationshipshavebeenhelpfultomeinbusinessoverthelastfewyears.Asanactivemember,Iamnotonlyawareofeventsthatmayimpactourprofession,Iamalsoabletoimpacteventsthatmayimpactourprofession.

What’s your message to new, young or long-time members who have yet to get involved? ThetimeyouspendgettinginvolvedinSCACPAhasagreatreturnoninvestment.Benefitsincludeexpansionofyourprofessionalandpoliticalcontactsinthe

state;continuingeducationthatkeepsyouuptodate;andtheabilitytoactivelyprotecttheCPAprofessionsoitwillcontinuetoadequatelyprotectthepublic,providesoundadvicetoclientsandbeasourceofgoodjobsforthenextgeneration.

FIRST CHAIR OF SCACPA’S YOUNG CPA LEADERSHIP CABINET

Amanda colgate, cPASCACPA member since 2006

What year did you become a member? Any other leadership roles/SCACPA involvement of note?

IbecameamemberofSCACPAin2006andamcurrentlyamemberoftheEditorialBoard.

What excites you most about leading the Young CPA Leadership Cabinet?AschairoftheYoungCPACabinet,IenjoygettingtoknowotheryoungCPAsfromaroundthestateanddevelopingmyprofessionalnetwork.IthasbeengreattoseesomanyenergeticyoungCPAswantingtobeinvolvedinSCACPAthroughtheCabinetanddevelopingtheskillstobecomeleadersoftheprofession.

What’s your message to young CPAs who have yet to get involved? Justdoit!BeinginvolvedinSCACPAisavitalcomponentofbuildingyourprofessionalnetworkandstayinginformedaboutissuesimpactingtheprofessionandyourcareer.n



Focus On Membership Member Profiles

Compiled by Al l i son Caldwel l

SCACPAiscomprisedofnearly4,000members,eachvaluedfortheirownuniqueperspective,areasofexpertiseandcapacityforservicetotheAssociationandfellowmembers.Tocommemorateour95thanniversary,wedecidedtoprofilesomeofouroldestandyoungestmembers(bybirthdate).Followingareinterviewswithfivemembers—ranginginagefrom24to89—onwhattheyenjoymostaboutbeingaCPA.

SCACPA’s Oldest & Youngest Members

AMY GRAYBILL, CPAMember since 2008

Hometown: Hilton Head IslandCollege: Clemson UniversityCurrent employer: Robinson Grant & Co., P.A.SCACPA involvement: Member of the Sea Island Chapter

EVAN M. HOBBS, CPAMember since 2009

Hometown: ColumbiaCollege: Wofford College, University of South Carolina (Masters of Accountancy)Current firm/employer: The Hobbs Group, PA, Staff Accountant

DAN MCKNIGHT, CPA Member since 1948(member no. 88; CPA certificate no. 129)

Hometown: CharlestonCollege: The Citadel1st employer: George G. McKnight, CPAMost recent employer: McKnight, Frampton & Co., P.A. , Retired managing partnerSCACPA involvement: Former president and “a little bit of everything.”

Erica Nanke, MaCCMember since 2007

Hometown: Marion, SC College: Charleston Southern University, University of South Carolina (Masters of Accountancy)Current employer: Dixon-Hughes, PLLC (Charleston office), Tax Associate

Warren “Dusty” Schulze, CPAMember Since 1951 (Member no. 115)

Hometown: Mason, TXCollege: Texas A&M University1st employer: Peat, Marvick, Mitchell & Co. (now known as KPMG)Most recent employer: Elliott, Davis & Co., (Greenville), RetiredSCACPA involvement: Secretary/treasurer; active member of the Piedmont Chapter

Dan McKnight, cPA

why did you become a cPA, and when did you receive your license? IalwayswantedtobecomeaCPA,andmyunclemayhavehadalittlebitofinfluenceinthatchoice.IbecameaCPAin1948attheageof27andjoinedSCACPAthatsameyear.in your opinion, what has changed the most about the cPA profession? Technology.Inmyday,everythingwasdonebyhand.

evan M. Hobbs, cPA

why did you become a cPA, and when did you receive your license? IbecameaCPAbecauseIenjoyaccountingandthecomplexitiesandchallengesitbringsonadailybasis.IreceivedmylicenseinMarchofthisyearattheageof23.IjoinedSCACPAin2009andhaveenjoyedtheabilitytonetworkwithotherprofessionals.

what are you looking forward to the most about the cPA profession? Iamlookingforwardtothecontinuingtechnologicalchangesthatwillaffectourprofession.Technologyalwayschanges,anditwilladdvaluetotheservicesweperform.

To date, what has been your most rewarding experience as a cPA? It’srewardingtohelpprovideclientswithreliableinformationtohelpthemmakecurrentandfuturebusinessdecisions.

Personally or work-related: what motivates and inspires you? Gettingthingsdonewhenyoutellpeopletheywillbedoneinatimelymanner.

“Technology always changes, and it will add value to the services we

perform.”

To date, what has been your most rewarding experience as a cPA? Becomingoneinthefirstplace,andthenbecomingmanagingpartnerandowningmyownfirm.Personally or work-related: what motivates and inspires you? Thesimplesatisfactionofgettingthejobdone.

“I always wanted to become a CPA.”

Page 15

Title SCACPA’s Oldest & Youngest Members………?


Focus On Membership Member ProfilesAmy Graybill, cPA

why did you become a cPA, and when did you receive your license? IchosetobecomeaCPAbecauseitisadesignationthatconveyscredibilityandacommitmenttocompetence.Assuch,itprovidesalotofopportunitiesindiversefields.IreceivedmylicenseinJuneofthisyearwhenIwas23.IjoinedSCACPAin2008andhaveenjoyedtheopportunitytoattendnumerousCPEandnetworkingeventsaswellasaccesstovariousprofessionalresources.

what are you looking forward to the most about the cPA profession? Igrewupwithcomputersandcannotimagineaccountingwithoutthem.Iamlookingforwardtoseeinghowtechnologywillcontinuetoadvanceandaffectthewaythingsaredoneintheprofession.

To date, what has been your most rewarding experience as a cPA? ItwasveryrewardingtoseetheresultofalloftheeffortthatIhadputintoattainingtheCPAdesignationwhenIfinallyreceivedmylicenseinthemailthisyear.

Personally or work-related: what motivates and inspires you? Ihaveawonderfulfamily.Theirsupporthasalwaysmotivatedandinspiredmetoachievemygoals.

warren c. “Dusty” schulze, cPA

why did you become a cPA and when did you receive your license? Asafreshmanincollege,IchoseacareerinpublicaccountingandintendedtoobtainaCPAcertificate.Thedayaftergraduation,IwascalledupandcommissionedasasecondlieutenantininfantryandservednearlyfouryearsinWWII.UponcompletionofthatserviceinMarch1946,IbeganmyaccountingcareerandlaterreceivedmyCPAcertificate(no.164)inMarch1951.in your opinion, what has changed the most about the cPA profession? ThemostsignificantchangesIhaveobserved(andtherearemany)aretherapidgrowthinthepublicaccountingsectorinSouthCarolina(evidencedby[thenumberof]myCPAcertificatewhencomparedtothoseissuednow),thenumberofwomennowservinginthisfield,theimpactofhigh-techproceduresandtheever-increasingoversightimposedupontheprofession.

erica Nanke, Macc

why did you become a cPA, and when did you receive your license?IofficiallypassedallfourpartsoftheCPAexaminFebruary2010,andwillbecomelicensedinJanuary2011aftermeetingmyyearlyrequirement—Iwillbe24.IjoinedSCACPAafterapplyingforascholarshipduringmysenioryearatCharlestonSouthernUniversity.IwassogratefultobechosenasarecipientofthePastPresidentsScholarship.ItmademerealizethatotherpeoplebelievedinmychosencareerpathasmuchasIdid.what are you looking forward to the most about the cPA profession? Whetherit’snewclientsituationstoresearchorthegovernmentpassingnewlaws,theprofessionisalwayschanging.Ilookforwardtolearningaboutnewchangesandbeingabletoeducateothersaroundmeonthetaxlawimplicationsofeachchange.

To date, what has been your most rewarding experience as a cPA? ThefirstandgreatestexperienceofmycareerwillalwaysbepassingtheCPAexam.Likemanyothersbeforeme,wecanallrememberthenumberofactivitiesandspecialeventswegaveuptoaccomplishpassingtheexam.AnotherclosesecondhasbeentheawesomepeopleIgettoworkwithinmyoffice.IhavebeenabletolearnfromotherCPAswhohavebeenintheprofessionformanyyears,andhopetobecomeavaluableassetinthespecialtyareasIhavebeenworking.Personally or work-related: what motivates and inspires you? Whetheritisinmypersonalorworklife,Ialwaysstrivetohelpandbeofservicetoothers.Inmyworklife,IenjoyprovidingthepeopleIworkwithavaluableproductwhichisbeneficialtoourclients.

To date, what has been your most rewarding experience as a cPA? Theopportunitytoworkwiththeentirespectrumofthebusinessworld.Personally or work-related: what motivates and inspires you? Althoughnowretired,Ihaverecentlyfoundrenewedinterestinthefirmthathasmeantsomuchtomeformanyyears.Inrecentyears,volumesofrecordswerefoundsupportingtheorganizationofthefirmElliott,Davis&CompanyinBoston,MAin1921.Theserecords,foundinthebasementoftheGreenvillefounder’soffice(MerrillC.Patten,nowdeceased),revealmuchinformationnotpreviouslyknownandisnowbeingcompiled.

“It was very rewarding to see the result of all of the effort that I had put into attaining the CPA designation ...”

editor’s Note: In addition to those featured here, an interview was also planned with Irving T. “Buck” Welling, who passed away in October while we were planning this issue. All of us at SCACPA extend sincere condolences to the Welling family. Please see Buck’s obituary in Member News (page 32).

“I always strive to help and be of service to others.”

“I have recently found renewed interest in the firm

that has meant so much to me for many years.”


SCACPAhasoneofthestrongestgrassrootsnetworksinSouthCarolina,andtheCPAPoliticalActionCommittee(CPA-PAC)isanimportantpartofthateffort.Anon-partisancommitteecomprisedoffiveSouthCarolinaCPAswhoserveas

trustees,theCPA-PACworkstocombinefinancialresourcesforgreaterinvolvement,impactandresults.Formedin1993,theCPA-PACinvestsinstatepoliticalleadershipbycontributingfundstostatelegislatorsandcandidateswhosupporttheinterestsofCPAsandthebusinesscommunity.Theprofessionhasenjoyedalonglistoflegislativevictories,butnoneofthosesuccesseswouldhavebeenaccomplishedwithoutlegislatorswholistentoandsupportourposition.TheydosobecauseofthepersonalrelationshipsformedthroughourKeyPersonContactprogram,andbecauseofdonationsmadethroughtheCPA-PAC.Onbehalfofallmembersandtheprofessionatlarge,SCACPAofferssincerethankstotheseindividualsandfirmswhocontributedtotheCPA-PACin2010.

William E. Abernethy Jr., CPA Claudia W. Adams, CPA Paul K. Aikman, CPA T. D. Ainsworth, CPA Travonte Aldrich Judy P. Alexander, CPA Michael G. Barb, CPA Joseph H. Barber, CPARobert W. Bass, CPAPatrick L. Beasley S. C. Beckwith, CPAAmy T. Bennett, CPA Nat B. Benson III, CPA, MSAJennifer M. Bernard, CPA Robert F. Berry, CPA Lois R. Blanco, CPA Karl D. Bohnstedt, CPAAllan G. Bolden, CPA Joseph A. Boyle, CPAGerald D. Broome, CPAChristopher A. Brown, CPAWilliam W. Brown, CPAThomas J. Bryson, CPA David S. Buch, CPA Orvis B. Buie, CPA John C. Butler, CPA Kevin H. Cain, CPA John F. Camp, CPA Anne M. Campbell, CPAPatrick P. Carey Jr., CPA L. B. Carson Jr., CPA Christine E. Cassidy, CPA JD, LLM

Douglas P. Clark, CPA Tonia J. Clemmons Clarence Coleman Jr., CPA, Ph.D. Vickie M. Cox, CPA R. D. Crowley, CPA, CVA Robert A. Curtis, CPA, PFS, MST0John A. Davis, CPA J. William Davis Jeffrey L. Deason, CPA, CFE Alys Anne Dennis, CPA Wanda J. Diggs, MBA, MAFM-CPAR. K. Dooley, CPA, PFS Rodney Dooley Jr., CPADonald L. Ellis, CPA MBA Amy S. Ely, CPA Barry A. Emerson, CPAMary L. Enright, CPA Alleen S. Ernst, CPA Barbara J. Evans, CPA MBAMichael R. Evans, CPA A. L. Fee, CPA Ryan F. Finklea, CPALarry J. Finney, CPA Charles R. Fliflet, CPADonald A. Floyd, CPA Jennifer S. Floyd, CPA Brian E. Ford Ronald E. Franks, CPA Jennifer N. Gahl, CPAJohn F. Georger Jr, CPA, CIA Ransom H. Gibson III, CPA

Ben M. Goldson, CPA Dennis L. Gore, CPA Richard L. Gray, CPAWilliam M. Grooms, CPA Angela W. Hamilton, CPA Cara T. Hamilton, CPA John F. Hamilton, CPADavid J. Haney, CPA Martha M. Hartley, CPAJ. Harry Haslam Jr., CPAAlice B. Hazel, CPA Robert M. Heil, CPA Linda H. Helms, CPADouglas W. Henderson, CPARonald I. Hendrix, CPA Dan B. Herrinton, CPA Melanie C. Hill, CPA J. C. Hincher, CPA, MAKatherine W. Holmes, CPASamuel G. Holtzclaw, CPA Leonard A. Hoogenboom, CPA John C. Horton, CPA Cynthia L. Howle, CPAM. Timothy Hucks, CPADonna K. Hudson, CPA Donald L. Hunter, CPA Richard A. Hutto, CPA Steven L. Hyatt, CPA Leona L. Hydrick, CPA Arthur L. Jayroe Jr., CPAGary J. Johnson, CPA

G. Michael Johnston, CPAW. Kelly Jones, CPA Robert P. Jordan, CPA Channing S. Joye, CPAKevin C. Kern, CPA Michael J. Kerscher, CPA James D. Kidd, CPA Dick W. King, CPAW. J. Kitchens Jr., CPAJoycelynn S. Knight, CPADavid M. Knoble, CPA MACJoseph J. LaNunziata, MBACarol C. Lawlor, CPAPaula J. Lawrence, CPARobert A. Leichtle IIElizabeth I. Leitner, CPAHarold E. LeMaster, CPAMarchant L. Lesley, CPAPaul V. Lewis, CPACarol M. Libby, CPAGregory M. Lipe, CPADaniel E. Livengood, CPAPatrick M. Luciano, CPARoger F. Luttrell, CPA, MBALarry B. Mack, CPAGlenn G. MacNeil, CPA, BBA, CA, CMALeon W. Maginnis, CPA CFE, CFFBobby T. Mardis, CPAGlenn J. Matthews, CPATravis L. Matthews, CPARenee O. McCall, CPA

Christine A. McCarty, CPAGordon L. McCay, CPA MBADustin L. McCoyChris A. McCraw, CPAC. Stephen McDonald, CPAAnn A. McDuff, CPAHenry A. McFaddin, CPASheila C. McKinney, CPADaniel L. McKnightMark A. Milnac, CPADavid H. Mims, CPA John W. Molony, CPAThomas P. Monahan, CPADonald S. Moody, CPAC. Clarke Moore III, CPAConnie G. Morris, CPAEdward W. Muller, CPAAlbert A. Munn IV, CPARobert J. Nagy, CPAAdam NeelyWilliam S. Nelson, CPAJames R. Newell, CPACarla M. Nicholson, CPAGina S. Noble, CPAJames M. O'Cain, CPA, CFP,CLU,ChFCSherry N. Ouzts, CPARenita M. Owens, CPAGregory D. Padgett, CPAPhilip G. Palmer, CPAJames A. Parrish, CPAMargaret J. Passailaigue, CPA

2010 CPA-PAC Donors and Recipients

FEATURE

PAC - BACKERS, Contributions Up to $99


Bernadette C. Phelps, CPABarbara G. Pierce, CPALloyd E. Pitts, CPASamuel H. Plexico III, CPAJeffery S. Powell, CPACharles C. PrevostWilliam R. Price, CPARobert B. Privette, CPA MBAJoseph E. Pruitt, CPAMichael P. Ravan, CPAMonica E. Richardson, CPAG. Randy Rish, CPAAlan M. Robinson, CPADeborah M. Rose, CPAAnnette H. Ross, CPAW. T. Rubenstein, CPAJames N. Ruff, CPACharissa D. Saunders, CPAMarc L. Saunders, CPAMichael W. Saunders, CPADouglas P. Schmieding, CPAErnest M. Sewell III, CPAJennifer E. Shechter-Liss, CPAAustin M. Sheheen, Jr., CPA David W. Siddons, CPAHelen Z. Sieger, CPA, JDTeodor D. Simeonov, CPANancy F. Simonetti, CPAClifford C. Simunek, CPARobert M. Sisk, CPAGeorge P. Smith III, CPA

Lisa N. Smith, CPAWilliam R. Smoak, CPAPhilip R. Snipes, CPAJames B. Snoddy, CPADouglas A. Sparacino, CPAGregory W. Stephan, CPA MPAcc Curtis C. Stewart, CPA, JD Tammera Stewart, CPA Eugene F. Svatek, CPA Clayton E. Tapp Jr. Michael J. Targia, CPA, CFA George F. Taylor Jr., CPARobert T. Theodore, CPA Hartwell H. Traylor Sr., CPAO. L. Turner, CPA Michael S. Upton, CPAEdgar A. Vaughn, CPA David R. Veldman, CPAThomas J. Way, CPA Mark W. Webster, CPA Susan O. Weesner, CPAIrvine T. Welling, III, CPAGary L. Wheeler, CPA Darrell E. Whitaker, CPA Maurice A. White, CPA David L. Whitehead, CPAJohn R. Wilson, CPAJacqueline C. Wirszyla, CPAAmy L. Wood, CPAYulien Yuan, CPA

Sharon E. Mann, CPA

Steven M. Mann, CPA

Linda L. May, CPA

Leigh A. Marks, CPA

Sheryl G. McAlister, CPA, CFP

J. P. McDermott, CPA

James W. McIlrath, CPA

Sara B. Penn, CPA

Michael R. Putich, CPA

Charles M. Redfern III, CPA

William C. Robinson, CPA

Amy H. Rubin, CPA

Douglas A. Snyder, CPA

Jason C. Sweatt, CPA

William A. Thiem, CPA

Robert M. Tilton, CPA

Victor C. Webster, CPA, MBA

Walda C. Wildman, CPA

Beth T. Zamorski, CPA

cANDiDATe DONATiON DeLiVereD BY

Nikki Haley (Governor) $3,500 Erin Hardwick

Vincent Sheheen (Governor) $3,500 Doug Snyder

Don Bowen (District 8) $500 Nancy Upton

Daniel Cooper (District 10) $500 Nancy Upton

Gene Pinson (District 13) $500 Denise Ogletree

Eric Bedingfield (District 28) $500 Gary Wheeler

Steve Parker (District 37) $500 Chuck Talbert

Deborah Long (District 45) $500 Farris Cauthen

Gary Simrill (District 46) $500 Suzanne Merritt

Herb Kirsh (District 47) $500 Bernie Ackerman

Tommy Pope (District 47) $500 Charlie Redfern

Liston Barfield (District 58) $500 John Horton

Phillip Lowe (District 60) $500 Arden Gatchell

Timothy L. Baker, CPA

Brian J. Brady, CPA, CFF CFE CIA

Charles E. Brown, CPA

William L. Byrd, CPA

Charles G. Carpenter, Ph.D., MS

The Honorable Converse A. Chellis III

Deanna L. Cochran, CPA

Bobby R. Creech Jr., CPA

Zoe M. Davis, CPA

Richard H. Ett, CPA, CFM, CFP

John B. Fennell, CPA

Tammy M. Flowers, CPA

Sherri L. Freudiger, CPA

Harry B. Gregory Sr., CPA

Malynda M. Grimsley, CPA

Amanda T. Hallman, CPA

Erin P. Hardwick, CAE

Kathryn G. Heeney, CPA MBA

Mark T. Hobbs, CPA

Allen A. Hodges, CPA

Amanda B. Koehler, CPA

Rebecca M. Lee, CPA

Penny A. Lewis, CPA

$500 - $1,000Derrick Stubbs and Stith, LLP

Schmoyer and Company, PC

Scott & Company, LLP

McAbee Talbert Halliday & Company

Elliott Davis, LLC

Ernst & Young, LLP

PricewaterhouseCoopers, LLP

WebsterRogers, LLP

Dixon Hughes, PLLC

FEATURE

INVESTORS, Contributions $100 to $249 LEADERS, CPA Firms $500 and up

GeNerAL eLecTiON cONTriBUTiONs (Challengers noted in blue, incumbents in black)

cANDiDATe DONATiON DeLiVereD BY

Gilda Cobb-Hunter (Dist. 66) $500 Doug Snyder

Joan Brady (District 78) $500 Harry Gregory

Chip Huggins (District 85) $1,000 Sharon Mann

Harry Ott (District 93) $500 Don Rickenbaker

Tracy Edge (District 104) $500 Bratton Fennell

Vida Miller (District 108) $500 Jeff Kinard

Bobby Harrell (District 114) $1,000 Pat McDermott

Robert L. Brown (District 116) $500 Caprice Atterbury

Todd Atwater (District 87) $500 Erin Hardwick

Bill Bowers (District 120) $250 Bratton Fennell

Rick Quinn (District 69) $500 Steve Mann

Bill Sandifer (District 2) $500 Mike Stancil

Robert C. Cooper, CPA

PARTNER, Contributions $250 to $499

VISIONARY, CPA Firms $2500 and up


iNTerNAL reVeNUe cODe secTiONs NOT ADOPTeDFournewprovisionshavebeenaddedtoCodeSection12-6-50,whichlistsspecificInternalRevenueCodesectionsnotadoptedbySouthCarolina.CodeSections12-6-50(4)and(16)havebeenamendedtospecificallynotadoptInternalRevenueCodeSections85(c)and6654(d)(1)(D).CodeSections12-6-50(5A)and(5B)havebeenaddedtospecificallynotadoptInternalRevenueCodeSections108(i)and163(e)(5)(F).InternalRevenueCodesectionsenactedaspartoftheAmericanRecoveryandReinvestmentActof2009,PublicLaw111-5,butnotadoptedbySouthCarolina,providethefollowingforfederalincometaxpurposes:

1.InternalRevenueCodeSection85(c)excludes$2,400ofunemploymentcompensationfromgrossincomefor2009.

2.InternalRevenueCodeSection6654(d)(1)(D)decreasesrequiredestimatedtaxpaymentsfor2009byallowingquarterlyestimatedtaxpaymentsbasedon90percent(ratherthan100percent)ofthetaxdueonthe2008individualincometaxreturnforqualifiedindividuals.Note:SeeProviso81.8(ActNo.291)summarizedbelowforpenaltywaiverinformationforqualifyingindividuals

whocompliedwithInternalRevenueCodeSection6654(d)(1)(D).

3.InternalRevenueCodeSection108(i)relatestothedeferralandratableinclusionofincomearisingfrombusinessindebtednessdischargedbythereacquisitionofadebtinstrument.

4.InternalRevenueCodeSection163(e)(5)(F)relatestooriginalissuediscountoncertainhighyieldobligations.

Effective Date:March31,2010

PeNALTY AND iNTeresT wAiVer fOr QUALifieD iNDiViDUALs fOr 2009 esTiMATeD TAX PAYMeNTsUnderthistemporaryproviso,theDepartmentwillwaiveinterestandpenaltiesforstateestimatedquarterlyindividualincometaxpaymentsforqualifyingindividualswhocomplywithSection1212offederalPublicLaw111-5,codifiedasInternalRevenueCodeSection6654(d)(1)(D).AnindividualisconsideredaqualifiedindividualforpurposesofSouthCarolinapenaltywaiveriftheindividualmeetstheadjustedgrossincomerequirementandthe50percentofgrossincomefromasmallbusinessrequirementcontainedinSection1212,PublicLaw111-5forSouthCarolinaorfederalpurposes.

Effective Date: EffectiveforStatefiscalyearJuly1,2010throughJune30,2011.ItwillexpireJune30,2011,unlessreenactedbytheGeneralAssembly.

PeNALTY wAiVer fOr feDerAL cHANGes TO cOrPOrATe esTiMATeD TAX PAYMeNTs

1.CodeSection12-6-3910(E)hasbeenaddedtoallowtheDepartmenttowaiveestimatedtaxpenaltiesforcorporationsthatcalculateSouthCarolinaestimatedtaxpayments,basedonafederallawthat(a)increasesestimatedpaymentsinoneperiodanddecreasesestimatedpaymentsinanotherperiodor(b)changesthedatesofestimatedtaxpaymentsareduefornotmorethanonemonth.

2.Inrelatedamendments,Section49ofAct110of2007andSection3ofAct16of2009arerepealed.ThesesectionsprovidedforSouthCarolinaestimatedtaxpenaltywaiversassociatedwithchangesinfederalestimatedtaxpenaltiesforlargecorporations.Thefederallawswererepealedbeforethechangesweretotakeeffect.

Effective Date:March31,2010

FEATURE

by K . Todd Dai ley, CPA, C VA and Jason Sweatt , CPAS C AC PA m e m b e r s s i n ce 1 9 9 3 a n d 1 9 9 7

South Carolina Tax Changes: DON’T BE CAUGHT UNAWARE

Asweapproachthecloseofthe2009taxreturnfilingseasons,itistimetobeginpreparingforyear-endplanningandthe2010seasons.Asusualwehavemanychangestocontendwith,somesmallandsomeverysignificant.It’simportanttoknowthese

changesandhowtheyaffectyourclient-base.SCACPArecentlyreceivedaletterofcomplaintaboutaCPAwhodidnotinformaclientaboutchangesfrom2003thatmademaintenanceservicesfortangiblepersonalpropertytaxableforsalestaxinSouthCarolina.ThetaxpayerblamestheCPA.OurclientsexpectCPAstounderstandtheirbusinessandbeonthelookoutforchangesthatwouldhelpthemorcausethemtohaveincreasedrisk.Followingisasummaryofthechangesthatmayimpactmanyofourclients,asreportedintheS.C.Legislativeupdate.

19(888) 557-4814 | www.scacpa.org

MANUfAcTUrers Of reNewABLe eNerGY sYsTeMs AND cOMPONeNTs – New creDiTCodeSection12-6-3588hasbeenaddedtoprovideanincometaxcredittocompaniesinthesolar,wind,geothermalandotherrenewableenergyindustrieswhoareexpandingorlocatinginSouthCarolina.Toqualify,acompanymust(1)manufacturerenewableenergysystemsandcomponentsinSouthCarolinaforsolar,wind,geothermalorotherrenewableenergyuses;(2)investatleast$500millioninnewqualifyingplantandequipmentintheyearthetaxcreditisclaimed;and(3)createoneandone-halffull-timejobsforevery$500,000ofqualifyingcapitalinvestmentthateachpaysatleast125percentoftheState’saverageannualmedianwageasdefinedbytheDepartmentofCommerce.AtaxpayermayseparatelyqualifyfornewfacilitiesinseparatelocationsorforseparateexpansionsatexistingfacilitiesinSouthCarolina.

ExpendituresqualifyingforthiscreditmustbecertifiedbytheStateEnergyOfficebyJanuary31forqualifyingexpendituresincurredinthepreviouscalendaryear.ByMarch1,theStateEnergyOfficemustnotifythetaxpayerofthequalifyingexpendituresandtheallocatedcreditamount.ThecreditisclaimedforthetaxyearwhichcontainsDecember31ofthepreviouscalendaryear.

Thecreditisequalto10percentofthecostofthecompany’stotalqualifyinginvestmentinplantandequipmentinSouthCarolinaforrenewableenergyoperations.Ataxpayer’stotalcreditforallexpendituresallowedmustnotexceed$500,000foranyyearand$5milliontotalforallyears.Unusedcreditscanbecarriedforward15yearsafterthetaxyearinwhichaqualifiedexpenditurewasmade.Thiscreditisinlieuofanyotherapplicableincometaxcreditsorabatementsallowedbystatelaw.Intheeventofanoverlaporconflictinavailablecreditsorabatements,thetaxpayermayselectthecreditorabatementdesiredinthemannerprescribedbytheDepartment.

Note Expiration: “Theincometaxcreditprogramisforafive-yearperiodbeginningJanuary1,2010andendingDecember31,2015.”

cAPiTAL iNVesTMeNT TAX creDiT – rePLAciNG ecONOMic iMPAcT ZONe iNVesTMeNT TAX creDiTRepealofCertainCodeSectionsintheEconomicImpactZoneActinChapter14ofTitle12andRepealofCreditforHiringDisplacedWorkersinCodeSection12-6-3450Chapter14ofTitle12containstheEconomicImpactZoneCommunityDevelopmentActof1995.Chapter14hasbeensubstantiallyamended.Amongthechangesarethefollowing:

1.CodeSection12-14-20,containingthepurposeoftheEconomicImpactZoneCommunityDevelopmentActof1995,isamendedtoprovidethatthepurposeofChapter14istoestablishaprogramofprovidingtaxincentivesforthecreationofcapitalinvestmentinordertorevitalizecapitalinvestmentinSouthCarolina,primarilybyencouragingtheformationofnewbusinessesandtheretentionandexpansionofexistingbusinesses;andtopromotemeaningfulemployment.

2.CodeSection12-14-60,providingfortheeconomicimpactzoneinvestmenttaxcredit,hasbeenamendedtodeleteallreferencesto“economicimpactzone”andtoprovideforacapitalinvestmenttaxcreditasfollows:0.5percentoftotalaggregatebasesofallqualifyingthree-yearmanufacturingandproductiveequipmentproperty;1.0percentoffive-yearproperty;1.5percentofseven-yearproperty;2.0percentof10-yearproperty;and2.5percentof15-yearorgreaterproperty.

ThedefinitionofqualifiedmanufacturingandproductiveequipmentpropertyinCodeSection12-14-60(B)wasamendedtoreplacereferencesto“economicimpactzone”with“thisState.”Also,certaincodesectionsthatconflictedwiththechangesorwerenolongerneededwererepealed.

Effective Date: January1,2011,excepttherepealofCodeSections12-14-30,12-14-40,12-14-50,12-14-70,and12-6-3450areeffectiveJune23,2010.

JOB TAX creDiT – AMeNDeDCodeSection12-6-3360,dealingwiththejobtaxcredit,hasbeenamendedbythisAct.Amongthechangesarethefollowing:1.Thecountyrankingshavebeenchangedfromfivedesignationstofour“tier”designations,basedonacombinationofunemploymentrateandhighestpercapitaincomedata.

2.ThedollaramountofthebasicjobtaxcreditforeachnewjobcreatedbasedonthenewcountydesignationsofTierI,II,III,andIVare$1,500peryearforeachnewfulltimejobcreatedinaTierIcounty;$2,750inaTierIIcounty;$4,250inaTierIIIcounty;and$8,000inaTierIVcounty.Therulesrelatedtoclaiming50percentoftheamountbysmallbusinessesclaimingthesmallbusinesscreditforlowerincomeemployeesstillapplies.

3.Severaltypesofbusinessesqualifyingforthecredithavebeenaddedorchangedasfollows:

a.Ataxpayerthatoperatesan“agribusinessoperation”cannowqualifyforthejobtaxcredit.CodeSection12-6-3360(A).

b.Ataxpayerthatoperatesaretailfacilityorservice-relatedindustrycanqualifyforthejobtaxcreditonlyinaTierIVcounty.

c.Thedefinitionof“processingfacility”hasbeenexpandedtoinclude“meat,poultry,andanyothervarietyoffoodprocessingoperations.”Processingfacilitycontinuestomeananestablishmentthatprepares,treatsorconvertstangiblepersonalpropertyintofinishedgoodsoranotherformoftangiblepersonalproperty.Thetermincludesabusinessengagedinprocessingagricultural,aquaculturalormariculturalproductsandspecificallyincludesmeat,poultry,andanyothervariety

Continued next page

South Carolina CPA Report

South Carolina CPA Report 20 (888) 557-4814 | www.scacpa.orgSouth Carolina CPA Report 20 (888) 557-4814 | www.scacpa.org

offoodprocessingoperations.Itdoesnotincludeanestablishmentinwhichretailsalesoftangiblepersonalpropertyaremadetoretailcustomers.CodeSection12-6-3360(M)(6).

4.Specialprovisionshavebeendeletedthatqualifycertainareasandcountiesforanincreasedcreditdesignation.Therestrictionthatacounty’sdesignationcannotbeloweredincreditamountmorethanonetierinthefollowingcalendaryearhasalsobeendeleted.Previously,rankingsweredonewithequalweightgiventounemploymentrateandpercapitaincomeandthenadjustedinaccordancewithspecialrulesinSection12-6-3360(B)and(L),asapplicable.CodeSection12-6-3360(B)andformerCodeSection12-6-3360(L).

5.Section38oftheActrepealedCodeSection12-6-3450concerningataxcreditforpersonsterminatedasaresultofclosingorrealignmentoffederalmilitaryinstallations.CodeSection12-6-3450(A)(1)(b)wasreferencedinCodeSection12-6-3360(F)(2)(d)andCodeSection12-6-3360(M)(3).Thegeneraldefinitionof“newjob”inCodeSection12-6-3360(M)(3)continuestoprovidethat“thisexclusionofanewjobcreatedbyanemployeeshiftingdoesnotextendtoajobcreatedataneworexpandedfacilitylocatedinacountyinwhichislocatedan‘applicablefederalfacility’asdefinedinSection12-6-3450(A)(1)(b).”

Effective Date:January1,2011,excepttherepealofCodeSection12-6-3450iseffectiveJune23,2010.JOB DeVeLOPMeNT creDiT AMeNDeDCodeSection12-10-80providesacreditagainstemployeewithholdingtaxestoneworexpandingbusinessesmakingqualifyinginvestmentsandcreatingaminimumnumberofnewjobsinSouthCarolinaandenteringintoarevitalizationagreementwiththeCoordinatingCouncilforEconomicDevelopment(“Council”).CodeSection12-10-80hasbeenamendedasfollows:

1.Aprovisionhasbeenaddedtoprovidethatacompany’sjobdevelopmentcreditsaresuspendedduringanyquarterthecompanyfailstomaintain100percentoftheminimumjobrequirementsetforthintherevitalizationagreement.Acompanycanonlyclaimcreditsonjobs,includingarangeofjobsapprovedbytheCouncil,assetforthinthecompany’sfinalrevitalizationagreement.ThiscodifiesanexistingguidelineoftheCouncil.CodeSection12-10-80(A)(6).

2.AprovisionhasbeenaddedtoclarifythatcreditsmaybeclaimedbeginningwiththewithholdingquarteraftertheCouncil’sapprovalofthecompany’sdocumentationthattheminimumjobandcapitalinvestmentrequirementshavebeenmet.ThiscodifiesanexistingguidelineoftheCouncil.CodeSection12-10-80(A)(7).

3.Subsection(C)(3),whichprovidesfortheeligibleexpendituresthatcanbereimbursedfromjobdevelopmentcreditshasbeenamended:(a)toclarifythatrealpropertyacquiredbycapitaloroperatingleasewithatleasta5yearterm,mayqualifyasaneligibleexpendituresifapprovedbytheCounciland(b)toprovideonlyemployeerelocationexpensesforthoseemployeestowhomthecompanyispayinggrosswagesofatleasttwicethelowerofthepercapitaincomeofthestateorthecountyinwhichtheprojectislocated,qualifyaseligibleexpenditures.

Effective Date:January1,2011siNGLe fAcTOr APPOrTiONMeNT – reLATeD AMeNDMeNTs effecTiVe UPON fiNAL PHAse iN Of siNGLe sALes fAcTOr APPOrTiONMeNT MeTHODEffectivefortaxyearsbeginningafter2006,ActNo.384of2006amendedCodeSection12-6-2250toenactasinglefactorapportionmentfactorforbusinessesdealingintangiblepersonalpropertyusingthethreefactor(withdoubleweightedsales)apportionmentmethod.Thesinglefactorapportionmentfactorisbeingphasedinand

willreplacethethreefactor(withdoubleweightedsales)apportionmentmethodfortaxyearsbeginningin2011.

Thefollowingamendments,effectivefortaxyearsbeginningafter2010,updatecrossreferencesfromCodeSection12-6-2250(the3factorapportionmentmethodwithdoubleweightedsalesandphaseinprovisionsofthesinglesalesfactor)toCodeSection12-6-2252(thesinglesalesfactorapportionmentmethod)forthefollowingcodesections:

1.CodeSection12-6-1130(6)dealingwithcomputationofthedepletiondeduction;

2.CodeSection12-6-2240dealingwithapportionmentofincome;and

3.CodeSection12-6-2290dealingwithgrossreceiptsfactor.

Thefollowingcodesectionswillberepealedoncethesalesfactorisfullyphasedineffectivefortaxyearsbeginningafter2010:

1.CodeSection12-6-2250(the3factorapportionmentmethodwithdoubleweightedsalesandphaseinprovisionsofthesinglesalesfactor);

2.CodeSection12-6-2260(3factorapportionmentmethodpropertyfactordefinition);

3.CodeSection12-6-2270(3factorapportionmentmethodpayrollfactordefinition).

Effective Date: Taxyearsbeginningafter2010.

MANUfAcTUrers’ reAL PrOPerTY UseD fOr wAreHOUsiNG AND wHOLesALe DisTriBUTiON - cHANGes TO reQUireMeNTs fOr ALTerNATiVe cLAssificATiONCodeSection12-43-220(a)concernstheclassificationofrealandpersonalpropertyownedbyorleasedtomanufacturersandutilitiesandgenerallyprovidesforanassessmentratioof10.5percentonpropertyusedintheconductofthebusiness.Item(4)hasbeenamendedtoprovide

FEATURE


thatrealpropertyownedbyorleasedtoamanufacturerandusedprimarilyforwarehousingandwholesaledistributionisnotconsideredusedintheconductofthemanufacturingbusiness.Previously,thisexceptionwasavailableonlyforpropertyusedexclusivelyforwarehousingandwholesaledistribution.Realpropertythatfallsoutsidethemanufacturersandutilitiesclassificationisgenerallytaxedbasedonasixpercentassessmentratio.

Theamendmentfurtherclarifiesthatrealpropertysubjecttothisexclusionmustnotbephysicallyattachedtothemanufacturingplantunlessthewarehousingandwholesaledistributionareaisseparatedbyapermanentwall.

Effective Date:January1,2011

BOATs cLAssifieD As A PriMArY Or secONDArY resiDeNce – reViseDCodeSection12-37-224,allowingcertainboatsorwatercrafttobetreatedasaprimaryorsecondaryresidenceforpropertytaxpurposes,andassessedatafourorsixpercentassessmentratio,respectively,hasbeenamended.Theamendmentspertainingtotheassessmentratioandvaluationoftheseboatsandwatercraftareasfollows:

1.Newsubsection(B)wasaddedtoclarifythataboatorwatercraftthatqualifiesforclassificationasaprimaryorsecondaryresidenceisonethatcontains(a)acookingareawithanonboardpowersource,(b)asleepingquarter,and(c)atoiletwithexteriorevacuation.Previously,CodeSection12-37-224providedforprimaryorsecondaryresidencestatusiftheboatorwatercraftqualifiedfordeductionoftheinterestexpenseonaqualifiedprimaryorsecondaryresidencepursuanttotheInternalRevenueCode.

2.Newsubsection(B)allowsonlyanindividualtoclaimonequalifyingboatorwatercraftthatheownsasaprimaryresidence(fourpercentassessmentratio).Inaddition,anindividualmayclaimasecondqualifyingboatorwatercraftthatheownsasasecondaryresidence(sixpercentassessment

ratio).Finally,apersonotherthananindividualmayclaimaqualifyingboatorwatercraftthatthepersonownsasasecondaryresidence(sixpercentassessmentratio).A“person”isdefinedtoincludeanindividual,asoleproprietorship,apartnership,anScorporation,andalimitedliabilitycompanytaxedasasoleproprietorship,apartnershiporanScorporation.AnindividualclaimingaboatasaprimaryresidencemustmakethesamecertificationrequiredtoobtainthefourpercentassessmentratioforanyotherlegalresidenceunderCodeSection12-43-220(c)(2)(ii).

3.Newitem(B)(1)ofCodeSection12-37-224providesthatthefairmarketvalueofqualifyingboatsandwatercraftmustbedeterminedinthemannerthatmotorvehiclesarevaluedforpropertytaxpurposes(i.e.,byreferenceannuallytonationallyrecognizedpublications,exceptthatthevaluemaynotexceed95percentofthepreviousyear’svalue).Theamendmentrestatedbutdidnotchangethemethodofvaluation.

Inarelatedamendment,CodeSection12-37-220(B)(38)(b),providingthat,byordinance,alocalgoverningbodyofacountymayexemptfrompropertytax42.75percentofthefairmarketvalueofawatercraftanditsmotor,hasbeenamendedtoclarifythattheexemptiondoesnotapplytoaboatorwatercraftclassifiedforpropertytaxpurposesasaprimaryorsecondaryresidenceunderCodeSection12-37-224.AcorrespondingamendmentwasmadetoCodeSection12-37-224.

Effective Date: June16,2010

ADDiTiONAL 1% reDUcTiON ON iNTeresT rATe ON TAX refUNDsThisnewtemporaryprovisodecreasesbyonepercenttheinterestratefortaxrefundspaidduringthecurrentfiscalyear,inadditiontothetwopercentreductionreauthorizedintemporaryProviso72.17(foratotalthreepercentinterestratereduction).Oftherevenueresultingfromthisonepercentreduction,$250,000mustbeusedbytheSenateforoperatingexpensesofthe

JointCitizensandLegislativeCommitteeonChildren.TheremainingrevenuemustbeusedbytheDepartmentofJuvenileJusticeforprogramsformentoringorotheralternativestoincarceration.TherevenueresultingfromthetwopercentreductioncontinuestobeusedforoperationsoftheState’sGuardianadLitemProgram.

Effective Date: ThistemporaryprovisoiseffectiveforStatefiscalyearJuly1,2010throughJune30,2011.Wehopethatyoufindthesesummarieshelpful.Ifyouhaveotheritemsthatyouwouldliketoseediscussedindetail,pleasenotifytheSCACPAofficeswithsuggestionsforfuturearticlesorblogs.n

IRS Activates New PTIN SystemThe IRS has recently launched a new preparer tax identification number (PTIN) system, a major step in its planned system of registration, qualification and oversight of all paid tax return preparers. To learn how this affects you, visit irs.gov/tax pros or call the IRS PTIN Helpline at 1-877-613-PTIN (7846).

K. Todd Dailey, CPA, CVA is partner of taxation and business valuation with Derrick, Stubbs & Stith, L.L.P. Todd received his B.S. degree in Accounting from the University of South Carolina and has been practicing public accounting since 1989. A member of the AICPA and past president of SCACPA’s Central Chapter, he currently serves on SCACPA’s Business Valuation Task Force, CPE Business Market Task Force, as chair of SCACPA’s State and Local Tax Committee and as an instructor for CPE courses in business valuations and tax issues.

Jason Sweatt, CPA is the Director of State and Local Tax (SALT) services for Elliott Davis, is the Chairman of the Firm’s Tax Committee, and leads tax quality control. He has 20 years of taxation experience in public accounting. Jason has a deep knowledge of tax advisory and tax compliance processes, tax quality controls and methodologies as well as extensive experience in federal, state and local tax planning, structuring, and IRS & state DOR representation. His focus is in transaction taxes (especially sales & use taxes) and tax incentives. He is a graduate of Berry College, serves on the SC Chamber of Commerce Tax Committee and chairs SCACPA’s Legislative and Advocacy Committee.


2010-2011 HEALTHCARE REFORM: What to Expect

The South Carolina CPA Report First Edition 2011 will feature a special section dedicated

to healthcare reform legislation and its impact on CPAs and South Carolinians. Leading up to that issue, the Editorial Board is seeking contributions on little-known special provisions of the legislation and how they affect the CPA profession. Special thanks to Dr. Bill Grooms and Mark Riley for contributions to this issue.

FEATURE

by Mark R i leyPres ident , S C A s s o c i a t i o n o f H e a l t h U n d e r w r i t e r sAmerican Benef i t Ser v ices

Aseveryoneisaware,backinMarchPresidentObamasignedintolawthePatient

ProtectionandAffordableCareAct(PPACA).Thisextremelydetailedandfar-reachinglawtouchesalmosteveryaspectofHealthcareinAmerica.Thisarticleprovidesdetailsonportionsofthelawthattakeeffectin2010and2011,andthatwillhaveadirectimpactoncurrentbenefitofferings.ThoseportionsincludeDependentChildcoverage,SmallBusinessTaxCredits,MedicalLossRatio,EliminationofLifetimeLimitsonPlans,WellnessCoverageenhancements,GrandfatheringofPlans,ChangestoHSAs,ChangestoFSAsandnewEmployerreportingrequirements.

GrANDfATHeriNG PrOVisiONTheGrandfatheringprovisionwillhaveaneffectonallotherprovisionsdependingonthestatusofeachemployerandtheirplan.ItallowsanyplanthatwasinplaceonMarch23,2010toremaininplacegoingforward,andtobeexemptfromcertainportionsofthelegislation.Therearesomeadvantagestobeinggrandfathered,aswellassomeprovisionsthatyoumustcomplywithtoremainasagrandfatheredplan.Eachemployergroupandplansponsorwillbedifferent,sotheadvantagesmayormaynotbenefiteveryone.

Possible Advantages of Maintaining Grandfathered Status:• AbilitytoremainunderIRSCode105(h),whichallowsplantodiscriminateinfavorofhighlycompensatedemployees(example:managementcarveoutplan).

• Planwillnothavetocomplywithcertainmandatedbenefitssuchasthoserelatingtoproviders,emergencyservicesandclinicaltrials.

• Planwillnothavetocomplywithprovisionrequiringallpreventivecarebenefitsbecoveredwithnocostsharing.

Provisions Applying to Grandfathered and Non-Grandfathered Plans:• Limitsonlifetimeandannualdollarmaximumsonbenefitplans.

• Dependentagecoverageuptoage26.

• Rescissionsofplansareprohibitedexceptinthecaseoffraud.

• Plansmustprovidecoveragetochildrenunderage19withnopre-existinglimitationsclause.

Benefit Changes that cause the loss of Grandfathered Status:• Purchasingaproductfromanewcarrierorexchangewillresultinthelossofgrandfatheredstatus,evenifthebenefitsremainthesame.

• Anychangesthatsubstantiallyreducebenefitswillresultinthelossofgrandfatheredstatus.

• Changestofixed-dollarcostsharingsuchasdeductibles,co-paymentsandout-of-pocketmaximumswillresultinthelossofgrandfatheredstatus.

• Employerswillbelimitedintheirabilitytodecreasetheemployercontribution.Anysubstantialchangeincontributionwillresultinthelossofgrandfatheredstatus.

• Anyplanthatimposesanewannualorlifetimelimitonnon-essentialbenefitsafterMarch23,2010willlosegrandfatheredstatus.

DePeNDeNT cHiLD cOVerAGeTherearetwodifferentitemsthatchangethewaychildrenarecurrentlycovered.BeginningoneachplanrenewalafterSeptember23,2010,alldependentchildrenmustbeallowedtoremain

Mark formed American Benefit Services, LLC in 2003 after 10 years in the insurance industry. He serves as current president of the South Carolina Association of Health Underwriters and is one of 11 members nationwide serving on the National Legislative Council. Contact him at (803) 404-5970 or [email protected].

“The Grandfathering provision will have an effect on all other provisions depending on the status of each employer and

their plan.”


ontheirparents’plansuptoage26.Thisprovisionappliestoallplans,includinggrandfatheredplans,anddoesincludeadependentchildthatismarried.Thespouseand/orchildrenofthatdependentchildisnoteligibleforcoverage,butthedependentchildwouldbeeligible.Also,thisprovisiononlyappliestoindividualswhodonothaveaccesstocoverageelsewhere.MostinsurancecarriersarenotwaitinguntiltheSeptemberdatetomakethisbenefitavailable.

TheotherprovisionapplyingtochildrenisthatbeginningonSeptember23,2010allchildrenundertheageof19mustbecoveredwithnopre-existinglimitationsbeingplacedonthatcoverage.Whiletheintentionofthisprovisionappearstohavebeentosimplymakethecoverageavailabletothechildrenwithpre-existingconditions,theregulationsbeingwrittenbytheDepartmentofHealthandHumanServices(DHHS)clearlymakethisaproductthatmustbeofferedasguaranteeissueforchildren.Thismeansthatnochildcanbedeniedcoverage,butitdoesstillallowforratingfortheriskuntil2014.Thisprovisionalsoappliestoallplans,includinggrandfatheredplans.

sMALL BUsiNess TAX creDiTsTheSmallBusinessTaxCreditisactuallyretro-activebacktoJanuary1,2010.Eligiblebusinessesaredefinedasemployerswithfewerthan25employeesandanaveragesalaryoflessthan$50,000annually.Thebusinessmustalsopayatleast50percentofthepremiumforemployee-onlycoverageunderthehealthplan.Ifabusinessmeetstheserequirements,theyareeligibletoreceiveamaximumcreditof50percentofpremiumspaidforuptotwoyearsifclaimedby2014.Businessesdonothavetohaveataxliabilitytobeeligible,andnon-profitsareeligibleforthecredit.Formoreinformation,includingacreditcalculator,visitwww.irs.gov.

eLiMiNATiNG LifeTiMe LiMiTsThisprovisionappliestoallplans,includinggrandfatheredplans,andmakeshealthplans

doawaywithalllifetimedollarvaluelimitsonplansbeginningwithplanrenewalsafterSeptember23,2010.PlanswillstillbeallowedtoplaceannuallimitsoncertainbenefitsnotdeterminedtobeEssentialBenefits,butthoselimitswillalsogoawayin2014.ThelistofEssentialBenefitsshouldbereleasedbyDHHSlaterthissummer.

MiNiMUM LOss rATiOThisprovision,settotakeeffectonJanuary1,2011,statesthatallinsurersmustspendatleast80percentofthepremiumrevenueonclaimsexpensesforIndividualandSmallGroupPlans,andatleast85percentforlargegroupplans(planswithover100employees).Howdoesthisaffectyouasanemployerorconsumer?Theanswerisonethatisyettobewhollydetermined.AformulatobereleasedbyDHHSinthelatterpartof2010willdetermineexactlywhatisdefinedasaclaimsexpense.Thedeterminationoftheseexpenseswillhaveagreatdealtodowiththeservicesthatinsurancecompaniescontinuetooffer.Forexample,isaNurselineaclaimsexpense?DiseaseManagement?WhataboutOnlinePre-NatalCare?Thelistcangoonandon,soitisvitalthatthisformulaincludethecorrectthingsinorderforemployersandconsumerstocontinuetoreceivealotoftheextrasthatarecurrentlyavailabletothem.

weLLNess AND PreVeNTATiVe cAreThisprovisionappliestoallplanswiththeexceptionofgrandfatheredplans,andistoalsotakeeffectbeginningwithrenewalsafterSeptember23,2010.Thisprovisioneliminatesallcostsharingonalistofspecifiedbenefitsthataredeterminedtobeforpreventiveorwellnesspurposes.ThislistisbeingdevelopedbyaNationalWellnessCoalitionandwillbereleasedlaterthisyearthroughDHHS.Thecostsharingincluded

inthissectionmeansthatnoco-payments,deductiblesorout-of-pocketchargescouldapplytotheseservices—theymustbecoveredat100percent.

2011 cHANGesOncewegetthrough2010changesdonotcomeasrapidlyagainuntil2014,butthereareafewalreadyinplacefor2011.Firstistheeliminationofover-the-countermedicationsasanallowableexpenseunderSection213(d)oftheInternalRevenueCode.Theseexpenses,whicharenowbeingallowedforFSAs,HSAsandHRAs,willnolongerbeeligiblebeginningJanuary1,2011unlessyouhaveaprescriptionfromyourhealthcareprovider.Forexample,ifyouarecurrentlybuyingamedicationsuchasClaritinandusingyourFSAaccounttopayforit,youwillnotbeallowedtodothisstartingnextyear.AnotherchangebeginningonJanuary1,2011hastodowithHSAs.Startingnextyear,anyineligibleexpensepaidoutofyourHSAaccountwillcomewithanewtaxpenaltyof20percentinsteadofthecurrent10percenttaxpenalty.

Thelastthingtomentionfor2011isthatthereisanewemployerreportingrequirementthatallgroupsshouldbeawareof.BeginningwiththeW-2formsthatareproducedin2012forthe2011taxyear,employersmustbeginprovidingthevalueofbenefitstheyprovidetoemployees.Whilethisisnotataxablebenefit,itistobereportedforinformationalpurposes.Thebenefitvalueistobereportedonbenefitsthattheemployerpaysforandistobedoneinanaggregatemanner.

Asyoucansee,thelandscapeofourhealthcaredeliveryandfinancingsystemissettoundergomajorchangesoverthenextfewyears.Tostayabreastofthechangesandhowtheywillaffectyouandyourclients,continuetoreadtheinformationmadeavailablebySCACPA,variousgovernmentaldepartmentsandtheinsuranceindustry.n

“The landscape of our healthcare delivery and financing system is set to undergo major changes over the

next few years.”


FEATURE

HEALTH CARE REFORM ACT:Changes for 2011-2013

by Dr. W.M. “Bi l l ” Grooms, CPAS C AC PA m e m b e r s i n ce 1 9 6 7

William M. Grooms, CPA, PhD Bill Grooms is a sole practitioner in Columbia, South Carolina with more than 40 years experience in his field. He was previously a partner of Ernst & Young, LLP, and a CPA with Clarkson, Harden & Gantt, Arthur Young &

Co., and the Internal Revenue Service. Mr. Grooms has been president of both the Central Chapter of SCACPA and the Columbia Estate Planning Council as well as past chairman of the SCACPAs Tax Committee and a past member of the AICPA Tax Division’s Executive Committee.

Inanearlierarticle,theramificationsoftheHealthCareReformActandthePatientProtectionand

AffordableCareAct(referredtoasHCRA)wereaddressedthrough2010.ThisActsetsforthlegalorstatutorychangesapplicabletoinsurancecompanies,healthcareproviders,andtheInternalRevenueCode(IRC),withthosechangestakingeffectindifferentyears.Thisarticlemovesforwardtothechangeseffectiveintheyears2011,2012and2013.

2011 cHANGesIn2011,thereisachangewithrespecttotheHealthReimbursementAct,HealthSavingsAccounts,FlexibleSavingsAccountsandHealthSavingsAccounts.Intheseprovisions,theterm“medicalexpense”willthenexcludethecostsforover-the-counterdrugsnotprescribedbyadoctorfrombeingreimbursedthroughtheseplans,unlesstheywereprescribedbyadoctor.

InadditionindividualswhohaveHSAsorFSAsandgetdistributionsfromtheseplansbeforeage65,whicharenotusedformedicalcosts,willseethepenaltyrisefrom10percentto20percentnextyear.

PartDofMedicarecoverage(prescriptiondrugplans)deductionbyanemployerwillnolongerbeallowed.Smallbusinesshowever,mayadopta“SimpleCafeteriaPlan.”Itcouldincludeaself-employedindividualasaqualifiedemployee.Shouldyouraccountingfirmadopta“simplecafeteriaplan?”Thiscafeteriaplancouldprovideforretirement,healthcoverage,dependentcareandotherhealth-relatedneeds.

2012 cHANGesIn2012,stillmorechangeswilltakeplace.Eventhoughithasnothingtodowithmedicalissues,thenewlawstatesthatanypaymentforservicesormerchandisemadeintheamountof$600

ormoreforservicestoanindividualotherthananemployeeoracorporationinthecourseofyourtradeorbusinesswillrequirethepayertoissueaform1099totherecipient.Accordingly,paymentstocorporations,inadditiontoindividualsandpartnerships,willrequiretheissuanceofaform1099.Thus,ifyouvisitBestBuythreetimesin2012forthreepurchasesatdifferenttimes—forinstance,onceinJanuaryforinkforyourbusinesscomputer,theninAprilforyourhome/personalcomputerpaper,againinNovemberforyourbusinesstopurchasesupplies—ifthosebusinesspurchasestotalmorethan$600,youmustsendBestBuyaform1099.However,besuretoexcludetheAprilpersonalcomputerpaper,sincethispurchasedidnotarisefromyourtradeorbusinessoperation.Thus,youmustsecurethecorrectcorporatenameoftheseller,theiraddress,andFINtosendthemandtheIRSaform1099.

Thisiswheretheprovisionstandstoday.However,theIRShassaidthattheydonotbelievethischangeisneeded.Indeed,theTreasuryDepartment'sNationalTaxpayerAdvocate,NinaOlson,saysthecostswillbe“disproportionateascomparedwithanyresultingimprovementsintaxcompliance.”TheAmericanChamberofCommercehasaskedthatthisberepealedandCongresshasalsotriedtorepealthischange,butbothHousesoftheCongresshavenotaddressedthisprovision.ThemajorityoftheHousevotedtorepealthisfeatureandtheSenateissettovoteonitonSeptember14.Thismeasuremayindeedberepealedbefore2012,butitistheretoday.Shoulditbecomeeffective,ourprofessionmustbepreparedtoassistclientsinchangingtheirreportingrequirementsaccordingly.

Alsoeffectivein2012willbeanewprovisioninwhichtheeconomicsubstancedoctrineisclarifiedandenhancedbywayofanewuniform


Auditor Malpractice IssuesLitigation Consulting/ Representation

Peer Review & InspectionsOver 425 system Reviews

Conducted Nationwide

D i r e c t ( 8 0 3 ) 6 0 8 - 8 0 6 6 E m a i l J o h n f h @ a o l . c o m

John F. Hamilton, CMA, CPA

definitionofeconomicsubstance.Inshort,ifabusinesstransactionisenteredintowhichdoesnothave“economicsubstance,”thetaxpayermayfaceapenaltyifthetaxpayerowesadditionaltaxbecauseofthelackofthetransactionhavingeconomicsubstance.Thepenaltymayrangefrom20-40percentoftheadditionaltaxowed.

Atransactionistreatedashavingeconomicsubstanceonlyif—apartfromFederalincometaxeffects—(1)thetransactionchangesinameaningfulwaythetaxpayer’seconomicpositionand(2)thetaxpayerhasasubstantialpurposeforenteringintosuchtransaction.Manypenaltiesmaybewaivedifthetaxpayerhas“reasonablecause.”Thispenaltymaynotbewaivedforreasonablecause.

2013 cHANGes2013istheyearinwhichtaxlawchangeswillhitmanytaxpayersandcauseourprofessiontobecomefamiliarwithalotofnewmaterial(it’salsothefirstyearafterthenextPresidentialelection).Someofthechangesareasfollows:

• Medicalexpenseswillonlybedeductibleaftertheyexceed10percentofAGIinsteadof7.5percent.However,forthoseage65oroveritwillremainat7.5percentthrough2016.

• Marriedtaxpayersfilingjointly(MFJ)withwagesinexcessof$250,000(singles$200,000)willpayanadditionalMedicaretaxof.009(.9percent)foratotalof2.35percent.Theadditional.9percentonlyappliesontheincomeoverthethresholdamount.Theemployee

paysallofthistax,theemployer’sshareisnotincreased,anditappliestotheself-employedaswell.

• TheIRSwillissueregulationstohandlethesituationwhereneitherhusbandnorwifemakesover$250,000butjointlytheydo.

• Theemployerwillhavenowithholdingresponsibilitywheretheemployeeandspouseisjointlyliablebutnotontheirownwages.

• Nopartoftheadditional.9percentisdeductibleforincometaxpurposes,buthalfofthe2.9percentremainsdeductible.Thisadditionaltaxmustbeconsideredindeterminingestimatedincometaxdeclarations.

• Thethresholdamountswillnotbeadjustedforinflation.Rememberwhen

AMTcamein,onlyfewpaiditbecauseofthe“high”exemption?Theexemptionwasnotindexedforinflationandnowwehaveamessthere.Willthathappenhere?

• IfanindividualhasMAGIoverthethresholdamounts,someofwhichcomesfrom“investmentincome”(generallydividends,interest,netrents,capitalgains,etc.),theexcessovertheMAGIwillalsobesubjecttoanadditionaltax.Thetaxwillbe3.8percentoftheexcessorthenetinvestmentincome,whicheverisless.

• Thistaxwillnotapplytoincomefromaqualifiedretirementplan.

• Thisadditionaltaxisnotapartofthe50percentdeduction,whichappliestothebasicself-employmenttax.

• FlexibleSpendingAccounts(FSAs)willbecappedat$2500beginningin2013,butthisnumberwillbeindexedforinflation.

• Thedefinitionofmedicalexpensesforemployercoveragewillbedefinedtoexcludeoverthecountermedicinesunlessprescribedbyadoctor,withtheexceptionofinsulin.Thus,thedefinitionforreimbursementwillbethesameasforitemizeddeductions.n

“In 2012, still more changes will take place. Even though it has nothing

to do with medical issues, the new law states that any payment for

services or merchandise made in the amount of $600 or more for

services to an individual other than an employee or a corporation in the

course of your trade or business will require the payer to issue a form

1099 to the recipient.”


Quality Counts: Positive Enforcement Programs of the South Carolina Board of Accountancy

LLR

TheBoardofAccountancyhastwoprogramsthatmonitorthequalityofattestengagementsoflicenseesin

SouthCarolina.Oneisthelocalgovernmentqualityassuranceprogram,andthesecondisthereviewofselectedfinancialssubmittedforlicensurefortheSouthCarolinaBoardofContractors.

POsiTiVe eNfOrceMeNT PrOGrAM EachMayweassemble15to20experiencedreviewersforthePositiveEnforcementProgram(PEP).LocalgovernmentandotherspecialpurposeentitiessendtheirfinancialstatementstotheBoardwheretheyaresortedbytype.Weapproachtheprojectasalearningexperienceforthereviewers,whocompletetheapplicableFinancialStatementDisclosureChecklist,A133supplementalchecklistandothersasappropriate.Asuper-visoryreviewisperformedonstatementsdeemedasdeficientorsubstandard.Lettersaresenttofirmswithdeficientreportsandcomplaintsareopenedagainstfirmswithsubstandardreports.

Inordertoincreaseourcoverageandtoencouragegreaterparticipationbylicensees,weareplanningonasecondreviewsitein2011.SitesbetweenSpartanburgandGreen-villearecurrentlyunderconsideration.Wearecurrentlyseekingreviewerswithatleastfouryearsexperienceauditingandprepar-ingfinancialstatementsofgovernmentsandpoliticalsubdivisionsandcontractors.OnehourofCPEisgivenforeach50minutesre-viewingstatements,andparticipantsarealsoeligibleforreimbursementfortravelcostinaccordancewithinagencyguidelines.

cONTrAcTOr’s fiNANciAL sTATeMeNTs sUBMiTTeD fOr LiceNsUre Asyouprobablyknow,theContractorsBoardislocatedinthesameumbrellaagen-

cy—Labor,LicensingandRegulation—astheS.C.BoardofAccountancy.ThisprovidesanexcellentopportunityfortheBoardtomonitorcompliancewithlicenseesservingcontractors.Thisyear,10percentofthefinancialstatementsofcontractorswerevieweddidnotcomplywithstatelaw.Twofinancialstatementssubmittedweredeemedsubstandardandhavebeenforwardedforfurtherinvestigation.

Awordaboutrequirements:forlevelsoflicensure1-4,acontractormayselfpreparefinancialstatementsforlicenserenewal.Atlevel5,theinformationmustalwaysbepre-paredbylicensedaccountants;asmustinitiallicensureapplicationsatlevels3and4.Thetypeofattestservicevariesbybothleveloflicensebeingappliedforandwhethertheap-plicationisaninitialapplicationorrenewal.ExactrequirementsareprintedintheS.C.Code,Section4-11-260,andafreedown-loadonline.

Thelawrequiresthatthefinancialstatement(singular)beinaccordancewithGenerallyAcceptedAccountingPrinciples(GAAP).Thatmeansataminimum,thereisabalancesheetwithfootnotes.Financialstatementspreparedinaccordancewithincometaxba-sisorcashbasisarenotinaccordancewithGAAPandrepresentfinancialspreparedonanOtherComprehensiveBasisofAccount-ing(OCBOA).AbalancesheetthatomitsdisclosureisnotGAAP.IfacompletesetoffinancialstatementsaresubmittedtotheBoard,obviouslytheBoardwillacceptthem.Butthefinancialinformationsubmit-tedabovetheminimumissubjecttoreviewfordeficienciesandsubstandardreports.

Thedateofthebalancesheetcanbeanydayoftheyear.TheBoardwillacceptadatewithinthelastyear.Thebalancesheet

shouldincludeGAAPitemsincludingcostsandestimatedprofitsinexcessofbillings,billingsinexcessofcostsandestimatedprofitsanddeferredincometaxes.Inmanyinstances,theyearendstatementmaybethemostefficientfromareportingstandpoint.Pleaserefertotheindustryaccountingandauditguideforconstructioncontractorstoassurethatthefinancialstatementorstate-mentsareincompliancewithindustryspe-cificguidance.AcontractormusthavetherequirednetworthonaGAAPbasis.ThereportinghasbeencomplicatedbychangesinGAAP(specificallyFinancialAccountingInterpretation46)sincethelawwaspassed.

Contractorsoftenhaveaseparatecompanythatownsthewarehouse,whichhasdebtthatthecontractorguarantees,andthiscon-ditionresultsinconsolidation.TheContrac-torsBoardisonlyinterestedinthenetworthofthecontractor.Ifyouconsolidate,thenaddasupplementalscheduleoftheconsoli-datingamountssotheBoardcanseethenetworthofthecontractorcomponent.Asanalternative,theBoardwillacceptanopinionqualifiedfornotconsolidatinginaccordancewithGAAP.

Thisyear,lettersweresenttocontrac-torswithnon-compliantstatements,andcopiestothepreparinglicensee’sfirm.Hopefullythisinformationwillhelpyouadviseyourcontractorclientsofthecorrectfinancialstatementrequirementsrelatedtolicensure.n

Jim Holloway, CPA is an Investigator/Consultant for the South Carolina Board of Accountancy. Additional editorial commentary was provided by Mark T. Hobbs, CPA, Vice Chair and Communications Director of the Board of Accountancy. Contact him at [email protected] or (803) 315-1991.

by James M. Hol loway, J r. , CPAS C AC PA m e m b e r s i n ce 1 9 8 5


Board of Accountancy

South Carolina Department of Labor, Licensing and Regulation

www.llr.state.sc.us

Board of Accountancy(803) 896-4770, phone

[email protected], email

Administrator Doris Cubitt, CPA (803) 896-4770, [email protected], email

Board of Accountancy Newsby Mark T. Hobbs, CPAS C AC PA m e m b e r s i n ce 1 9 8 1

ThehistoricalbusinessmodelforthetraditionallocalCPAFirmisnolongeravalidbusinessmodelfor

licenseesinthe21stCentury.TheoldmodelistoconcentrateontaxandcomplianceworkfromJanuarytoApril,andthenserveafewauditclientsinthesummerandfalltostaybusyandcoveroverhead.Thistraditionalmodelonceservedtheprofessionwellbutisnotacceptabletodayduetothefollowing:• Publicexpectationsofresponsibilitiesforauditengagementsandauditorstobetheexpertsoninternalcontrolandtodetectfraud.

• Additionalprofessionalstandardsthatrequireauditorstobeafull-timeprofessionalandnotapart-timeplayer.

Complexityofthebusinessenvironmentandexpandingaccountingandauditingstandardsrequirefull-timedevotioninordertodeliverqualityservicestothepublic.Examplesincludefairvalueaccounting,internationalstandards,accountingforvariableinterestentitiesandderivatives.

Today’senvironmentforceslicenseestopracticeintheirareaofexpertisetomitigatethebusinessriskofpublicpracticeandtobestservethepublic.Licenseesshouldbequicktoadviseclientstoseeklegalconsultationorotherassistanceiftheclient’srequestisbeyondthescopeofserviceofferedbythefirm.Firmsmustfocusontheirstrengthsandreferclientrequeststotheappropriateauthority.

TheBoardhasbeenbusyoverthepastseveralmonthsandwillhaveaplanningsessioninDecembertoreviewtheCPEregulationthathasgeneratedmuchdiscussionwithrespecttothe50percentlimitonself-study.WealsoplantodiscussamandatoryethicsCPErequirementandotheroperationalaspectsattheBoardofAccountancy.Thestaffisbackatfullspeed,

andwefeelblessedtohaveDorisCubitt,CPA,backinthesaddle.DorisdoesanexcellentjobasourexecutivedirectoratLLR.

IampleasedtoreportthattheGeneralAssemblydidnottakeanymoneyfromtheBoardofAccountancyduetotherecentbudgetcrisisinourstate.IhavebeeninformedthatsomeotherlicensingBoardswereimpacted,buttheBoardofAccountancywasnot.Asyourecall,theumbrellaagencyfortheBoard,LaborLicensingandRegulation(LLR)wasfightingtokeepthelegislatorsfromraidingcertainBoardswithintheLLRumbrella.TheaccountancyprofessionisindebtedtotheleadershipofLLRfornotallowingourfundstobeusedtoshoreupbudgetshortfalls.ThesefundsarelicensefeesthatyoupaytoassistintheregulationofourprofessioninSouthCarolina,andshouldnotbeusedasgeneralfundtaxrevenuetosupportunrelatedprogramsofstategovernment.

PleaserememberthattheBoardexpectslicenseestoobtain40hoursofCPEineachcalendaryear.Thisistrueeventhoughwehavegonetoabiennialrenewalprocess.ThestaffattheBoardhasbeenrequestedtograntleniencyifalicenseefailedtoobtain40hoursin2009,buthad80hoursfor2009and2010combined.Thisisaone-time

transitionalreliefthatshouldnotbeviewedtobeachangefromthe40-hourperyearrequirement.

IamalsopleasedtoreportthatpeerreviewisworkingtoimprovethepracticeofS.C.licensees.TheAICPArecentlycompletedtheiroversightoftheAdministrationofthePeerReviewPrograminSouthCarolina.TheresultwasanexcellentreportfromtheAICPAstatingthattheprogramisincompliancewithAICPAguidelines.InadditiontotheAICPAoversight,JimHolloway,CPAprovideslocaloversightonbehalfoftheBoardofAccountancy.Mr.HollowaysubmitsanannualreporttotheBoardandhispreviousreportshavebeenverypositiveasitrelatestotheperformanceofSCACPAasareportacceptancebody.n

Mark Hobbs, CPA is the managing partner of The Hobbs Group, PA in Columbia. A past president of SCACPA, Mark currently serves on SCACPA’s Nominating and Investment Committees as well as the Long Range Planning Task Force. He may be reached at [email protected].

“The AICPA recently completed their

oversight of the administration of

the Peer Review Program in South

Carolina. The result was an excellent

report from the AICPA stating that

the program is in compliance with

AICPA guidelines.”


“Cloud”AccountingandSaaS,PoliticsandCPAs,ExcelTipsandTricks,FinancialPlanningforYoungProfessionals,ThePolishedProfessional—that’snot

exactlythelistofpresentationsyoumightexpectfromatraditionalSCACPAseminar,butasthetypicalaccountantchanges,sodotheirexpectationsincontinuingeducation.Withtherisingnumberofyoungaccountantsenteringtheprofession,SCACPAhasaddedconferencestomeettheneedsoftomorrow’sleaders.

TheinauguralEmergingLeadersConferencetookplaceinCharlestononSeptember23-24,2010,hostedbySCACPA’sYoungCPAsLeadershipCabinetwith37participants.Thepacewasfastandspiritswerehighastheconferencestartedwitha“new-age”accountingpresentationbyJasonBlumer.JoyRollins,ControllerwithAmericanServices,Inc.,sharedherthoughtsaboutBlumer’spresentation.“Ilikethisguy.Hereallymakesmethink!”

TheconferencehaditstraditionalpresentationsincludinganAuditandTaxupdate,butmostpresentationsallowedplentyofroomforparticipationandideasharing.“IlefttheEmergingLeadersConferencewithatonofnewideasandknowledge

thatIwasexcitedtosharewiththerestofmyfirm.Iwilldefinitelyattendthisconferenceagainnextyear,”saidAmandaColgate,CPA,partneratGodshall&Colgate,LLC.

Duringdowntime,youngprofessionalshada“NotSoTaxing”trivianight.Withthought-provokingchallengessuchas,“NamealloftheGoldenGirlsandtheactresswhoplayedeach”and“NametheonlymajortournamentArnoldPalmerhasnotwon,”everyonegainedsometrivialnon-accountingknowledge.

AlsoincludedintheconferencewasaclasstaughtbyCynthiaGrosso,ofCharlestonSchoolofProtocolandEtiquette,Inc.,onbusinessetiquettewhiledining.Youngprofessionalsweretaughteverythingfromtheimportanceofposturetowhichforktheyshoulduseandhownottooffendvisitingdiplomats.JenniferFloyd,TaxManageratWebsterRogers,LLPreflects,“Itwaspersonally

Emerging Leaders Conference Reviewby Amanda W. Koehler, CPA, YCPA’s Leadership Cabinet Vice Chairman S C AC PA m e m b e r s i n ce 2 0 0 7

FEATURE

ABOUT THE YOUNG CPAs

The South Carolina Association of Certified Public Accountants (SCACPA) created the Young CPAs Leadership Cabinet to prepare young professionals for positions of leadership in the profession, the association, the community and the world. As young staff embark on their CPA career path, the Leadership Cabinet offers an enriching environment where participants learn new skills, access resources and shape ideas for the future. This unique two-year program combines in-person meetings, the opportunity to interact with CPAs across the state, and online shared experiences. For more information on becoming a member of the Young CPA Leadership Cabinet contact Communications Coordinator Emily Allen at [email protected] or visit our web site at www.scacpa.org.

“I left the Emerging Leaders Conference with a ton of new ideas and knowledge that I was excited to share with the rest of my firm. I will definitely attend this conference again next year,” - Amanda Colgate, CPA,

partner at Godshall &

Colgate, LLC

beneficialforme,andIknownexttimeIsitdowntoeatwithclientsorotherbusinessassociates,Iwillhavemoreconfidencebecauseofthatclass.”

Eventhoughitmayhavenotbeenyourrun-of-the-millconference,theyoungprofessionalslearnedagreatdealfromtheseminar.“Itwasn’tyourtypicalCPE,butitwasprobablytheonethatIgotthemostoutofasfaraspersonaldevelopment,”addedFloyd.n

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wHO is eLiGiBLe?Firms with at least 10 CPAs on staff, all of whom are SCACPA members. 100 percent membership applies to CPAs only, although membership is available to CPA candidates, students and other professionals on staff.

BeNefiTs n10% discount on annual dues for all employees.

nFirm name recognition the The South Carolina CPA Report, on SCACPA’s web site and other publications and at SCACPA events like the Annual Summit.

nRegistration discounts on CPE seminars and other SCACPA events (when registering five or more employees for one event).

HOw TO eNrOLL Send your staff roster to [email protected]. We’ll verify membership for your staff and send applications for those employees who are not members. Firms may enroll anytime for this program, but won’t receive dues benefits until the dues billing cycle following their enrollment. New CPAs joining after the enrollment may take advantage of the 10 percent discount.

We’re All In! SCACPA 100% Membership Program

Show your firm’s support of SCACPA, the only association in South Carolina representing the interests of CPAs!

QUesTiONs Or cOMMeNTs?April BlakeOffice and Member Services Coordinator (888) 557-4814, toll free in SC (803) 791-4181, ext. [email protected], email

Serving South Carolina CPAs since 1915.

South Carolina

CPAwww.scacpa.org


Chapter Connections

South Carolina

CPA

South Carolina

CPA

South

Carolina Association

Certi�ed Public Accountants

QUALITY CHAPTER AWARD

CENTRAL, COASTAL, FOOTHILLS, GRAND STRAND, SEA ISLAND

2010 CHAPTER PRESIDENTSsuzanne Merritt, cPA, CatawbaAmy cain, cPA, Centralrichard ett, cPA, cfM, cfP, CoastalKara shealy, cPA, FoothillsAmanda Hallman, cPA, Grand StrandBryan rabon, cPA, Pee DeeMelanie Hill, MPA, cPA, cMi, fLMi, PiedmontPatrick carey Jr., cPA, Sea Island

CHAPTER SPOTLIGHTAMY cAiN, cPA2010 President of the Central Chapter of SCACPA

SCACPA member since 1988

Chapter members please note: Register on or before the early bird discount deadline (three weeks prior to each event) to receive free or discounted registration fees.

what have you learned—about our association, fellow members or yourself—by serving as a chapter leader? IhavelearnedthatmyCentralChapterBoardmembersandtheSCACPAstaffaremymosttrustedadvisors.WehavehadaveryfullandproductiveyearwithstillmoreCPEandsocialeventsremainingonthecalendar.Iwouldhaveneverbeenabletoarrangeafractionoftheeventswithoutmydedicatedandever-presentBoardmembersandtheuntiringsupportofSCACPAstaff.ItishardtorealizeorexplainallthediscussionandresearchthatgoesonbehindthescenestomakesureeverydetailofeveryeventiscarefullyplannedtobesureCentralChapteriswellrepresentedandprudentinitschoices.Ihavelearnedmyownlimitationsarenumerous,andthisyearwouldnothavebeenpossiblewithouttheassistanceofmany.

what has been your proudest accomplishment during your tenure? Thefundingofanewfully-endowedscholarshipof$2,500foragraduatestudent.ToknowthattheCentralChapterwillbeabletogivesupporttoastudenteveryyear

CHAPTER EVENTSCATAWBANovember 19: Annual Tax Update (8 hours, CA111910)

winter 2010: Family/Networking Event

CENTRALDecember 1: Annual Tax Update (8 hours, CE120110)

february 10: Professional Night

May 21: Annual BBQ at the Zoo

COASTALJanuary 14: CPA (4 hours)

January 20: Student Night

FOOTHILLSNovember 18: Annual Tax Update (8 hours, FO111810)

December: Social Event (Charity)

GRAND STRANDDecember: Holiday Dinner/Social Event

PEE DEENovember: Chapter/Student Bowling Night

PIEDMONTDecember 6: BPEN: 1099, Employer Tax and Federal Income Tax Update for Small Business

December 9: A&A Update and Review (8 hours, Anderson University)

December 16: Annual Holiday Charity Luncheon

SEA ISLANDDecember 14: Federal Tax Update with Walter Nunnallee (8 hours, 60110FH). Sea Island Chapter members receive a $50 discount, email [email protected] for details.

staff contact: Sandra Oxner

fromnowtoeternityisanawesomefeeling.Withtheeverincreasingcostsofschool,Ifeeldeeplygratifiedthatwewereabletocreatethislegacyforthecontinuedsupportofstudentsnewtoourprofession.

what advice do you have for those considering getting involved and engaged in scAcPA and their local chapter? Ibelievepeoplewhoaremoreinvolvedgetmoreoutoflifethanthosewhositonthesidelines.Icannotevenbegintotellyouhowmuchithasmeanttometobeachapterofficer.Beingachapterofficerhasbeenacommitmentoffiveyears,ofwhichIhavecompletedthefirstfour.Thejobsrotateattheendofeachyear,soinCentralChapterwestartasCPECoordinator,thenmovetoTreasurer,VicePresidentandPresident.Iamlookingforwardtonextyear,buthavetoadmititwillbebittersweettocometotheendofmytermasPresident.IhavegrowninwaysIneverdreamedofbeforetheselastfewyears.Ichallengeotherstodothesame.Getinvolved.LeavetheTVremoteonthecouch.Becomealeader.Youwillbesurprisedhowfarittakesyou.n

Amy works in the Property Management Division of Russell & Jeffcoat Realtors, Inc., one of the largest residential real estate firms in the Southeast and the number one real estate company in the Midlands. Originally from Sumter and a graduate of the University of South Carolina, she also serves as Properties Committee Chair at Forest Lake Presbyterian Church and is president-elect of the Forest Acres Rotary Club.

2010


Focus On Membership Member News IN THE NEWSSCACPA’sEducationalFundTrusteesannouncedintheGaffneyLedgerthatAnnaMillwoodofBlacksburg,arisingsenioratLimestoneCollege,wasawardedtheBurkett, Burkett and Burkett, CPA, PAScholarship.

Carroll Webster, CPA,hasbeenelectedtoserveonthe2010-2011AICPANominationCommittee

AWARDS AND CERTIFICATIONSAmanda Colgate, CPA,Godshall&Colgate,LLC,wasselectedfrommorethan120applicantstoparticipateintheAICPA’ssecondannualLeadershipAcademy,comprisedof30youngCPAsfromaroundthecountry.

Toby Eskew, CPA,ElliottDavis,LLC,hasearnedtheCertifiedinFinancialForensics(CFF)credentialfromtheAICPA.

Erin E. Gilbert, CPA,MooreBeauston&WoodhamLLP,receivedherCPAlicenseforSouthCarolina.

Stephen Kirkland, CPA andW. Dale Dyches, CPAandfinancialforensicexpertswithKirkland,Thomas,Watson&Dyches,LLC,haveearnedtheCertifiedinFinancialForensics(CFF)credentialfromtheAICPA.

Jim Manley, CPA,ElliottDavis,LLC,wasnamedamongGreenwood’sUnder40StarsandhonoredatanawardsceremonyatGreenwoodCountryClub.

Robert Tilton, CPA,WebsterRogersLLP,receivedtheBoldStepsinLeadershipAwardattheSCACPAYCPA’sEmergingLeadersConferenceinCharleston.

PROMOTIONSStephen K. Keene, CPA,MooreBeauston&WoodhamLLP,waspromotedtoSeniorAccountantintheauditandassurancepracticeinthefirm’sWestColumbiaoffice.

Christopher E. Mauney, CPA,MooreBeauston&WoodhamLLP,waspromotedtoSeniorAccountantintheauditandassurancepracticeinthefirm’sWestColumbiaoffice.

ElliottDavis,LLCproudlyannouncesthefollowingpromotionsinitsColumbia,GreenwoodandGreenvilleoffices:

• Brittany Owen, CPA,hasbeenpromotedtomanagerinthefirm’staxpractice.

• Matt Clark, CPA,hasbeenpromotedtomanagerinthefirm’sassurancepractice.

•Josh Garvin, CPA,hasbeenpromotedtoseniormanagerinthefirm’sassurancepractice.

• Howie Houston, CPA,hasbeenpromotedtoseniormanagerinthefirm’sassurancepractice.

• Drew Rogers, CPA, PFS,hasbeenpromotedtomanagerinthefirm’staxpractice.

FIRM NEWSElliott Davis, LLC,wasrankedNo.7inNorthAmericainthe2011editionoftheVaultGuidetotheTop50AccountingFirms.Thefirmalsorecentlycelebratedfourconsecutiveyearsofbeingnamedamongthe“BestPlacestoWorkinS.C.”bytheS.C.ChamberofCommerce,S.C.SocietyforHumanResourceManagementandSCBIZ.

Scott and Company LLPopenedanewofficeat702PettigruStreetindowntownGreenville,thefirstexpansionbeyondColumbiaforthe15-year-oldfirmwhichrecentlyexpandedtosevenpartnersandwasrenamedfromScottMcElveen,LLP.

CONDOLENCESGeorge O. Short, III, CPA,diedAugust15,2010afteranextendedillness.BornFebruary19,1957inMontgomery,Alabama,hewasagraduateofWadeHamptonHighSchoolandTheUniversityofSouthCarolina.GeorgewasaCertifiedPublicAccountantfor27years,servingasShareholderandCEOofGeorgeO.ShortandAssociates,PC(2007-2009),partnerinGeorgeO.ShortandAssociates(1980-1996)andCFOofCommunityLaborAdministrativeServices(1996-2006).Mostrecently,hewasassociatedwithhissuccessorfirm,RenitaOwensCPA,LLC.GeorgewasapageintheSouthCarolinaStateSenate(1976-1980)andaninternintheUnitedStatesSenate(1977).HeandwashonoredasanOutstandingYoungManofAmericain1988.GeorgewasamemberoftheAICPAandSCACPA.HewasagraduateofLeadershipGreenville(1987),MemberoftheBoardofDirectorsAccess,Inc.(1992-1996),GreenvilleAmericanCancerSociety,BigBrothers/BigSisters,andmanyothercivicgroups.MemorialsmaybemadetotheFirstPresbyterianChurchVisitationMinistry

at200WestWashingtonStreet,Greenville,SC29601ortothecharityofone’schoice.

Irvine Twitty (Buck) Welling, Jr., CPA,diedOctober5,2010athishome.BorninDarlington,S.C.onJune9,1918,hewasthesonofthelateLylLaGroneandIrvineT.Welling.HeattendedSt.JohnsHighSchoolwhereheplayedfootballandwassalutatorianofhisclass.HegraduatedsummacumlaudefromtheUniversityofSouthCarolinain1939.DuringWorldWarII,BuckservedasanavalofficeraboardtheUSSElectrainthesouthPacific.HewasapartnerwithElliottDavis,LLCandwasassociatedwiththefirmfor61years.HewasacloseadvisortoindustrialistJohnD.Hollingsworthforover35years,andwasinstrumentalintheestablishmentofTheHollingsworthFunds.UponMr.Hollingsworth’sdeath,BuckbecameitsfirstChairmanandserveduntilhisretirementinFebruary2010.

Bucklovedhisfamily,beginningwithhiswife,Margaret,whodiedinApril2010after68yearsofmarriage.Buckissurvivedbythreechildren:IrvandEleanor(Lankford)WellingofGreenville;BobandElizabeth(Wooten)WellingofColumbia;LylW.andBillParkerofMontgomery;eightgrandchildrenandfivegreat-grandchildren.Bucklovedhischurch,FirstBaptistGreenville,whereheservedformanyyearsasaSeniorDeaconandaschairmanoftheFinanceCommittee.HealsoenjoyedmeetingwiththeyoungHollingsworthScholarsatFurmanandvisitingwithmanyoftheagenciesfundedbyHollingsworthFunds.RecentawardsincludeanhonoraryDoctorofHumanitiesdegreefromFurmanUniversityandthe2009DistinguishedCitizenAwardfromtheBoyScoutsofAmerica.TheMarchofDimeshadalsochosenBuckasoneofitshonoreesforitsupcomingRealEstatebreakfastonNovember3.BuckservedaspastpresidentofSCACPAandtheAmericanBusinessClub.HewasaformermemberoftheCounciloftheAICPAandalsoamemberofthePoinsettClub.

MemorialsmaybemadetotheFaithFundofFirstBaptistGreenville,847ClevelandStreet,Greenville,29601;UnitedMinistriesprogramOurEyesWereOpened,606PendletonStreet,Greenville,29601;orTheCommunityFoundationofGreenville,27ClevelandStreet,Greenville,29601.n


Focus On Membership Welcome New Members

Columbia Charlotte Charleston Greenville Raleigh Myrtle Beach

Experience. Service. Results.

mgclaw.com

At MG&C, our experienced professionals are committed to excellent service and innovative solutions for diverse legal and business challenges.

ACADEMIC AFFILIATEWilliam R. Koprowski, PhD, J.D., CMCollege of Charleston School of Business and EconomicsCharleston, SC

Philip L. Little, CPA, DBAConway, SC

Linda B. McKee, CPA, MS, PhDCollege of Charleston School of Business and EconomicsCharleston, SC

AFFILIATE (non-CPA)Kenneth G. EverhamSpartanburg, SC

ASSOCIATEStacey L. BarberSherman Capital Markets, LLCCharleston, SC

Kimberly BrodyLexington, SC

Mitzi H. McCall, CPAGreenville, SC

Valerie K. Mitchell, CPAIrmo, SC

CPA CANDIDATEMichelle L. CarlMt. Pleasant, SC

Bradford HammackJ.W. Hunt & Company, LLPColumbia, SC

Marie W. HefnerBonneau, SC

Stephen C. HetheringtonScott & Company, LLPColumbia, SC

Joshua T. NexsenColumbia, SC

Meagan M. RichardsLexington, SC

John VannMyrtle Beach, SC

Katherine C. VinsonJ.W. Hunt & Company, LLPColumbia, SC

FELLOWSusan E. Bailey, CPANorth Charleston, SC

Christian P. Bassily, CPAMount Pleasant, SC

Jesse M. Carleton, CPA, MACCAugusta, GA

Christopher S. Cauley, CPAAnderson, SC

Rachel A. CheneyWebsterRogers LLPSummerville, SC

Charles R. Cserny, CPAHartsville, SC

Jessica T. Cummins, CPALexington, SC

Colleen E. Daniel, CPACharleston, SC

Miriam M. Delamar, CPAJohns Island, SC

Amy E. Edwards, CPATaylors, SC

Susie F. EdwardsMUSC Controllers OfficeCharleston, SC

Susan R. Egerdahl, CPATaylors, SC

Carla D. Gentry, CPAEasley, SC

Kimberly R. Getz, CPAHilton Head Island, SC

Stephen A. Gimbel, CPAColumbia, SC

Lindsay A. GosnellInman, SC

Allyson B. Hancock, CPAGreer, SC

Lisa M. Heise, CPAPacolet Milliken Enterprises, Inc.Spartanburg, SC

R. H. Hunnings II, CPAIsland Management ServicesHilton Head Island, SC

David M. Knoble, CPA MACCharlotte, NC

William K. McKinney, CPAGreenville, SC

Adam R. McKnight, CPAGreer, SC

Kathleen H. Oliver, CPAUCI Medical AffiliatesColumbia, SC

Lora W. Prevatte, MSAMount Pleasant, SC

James B. Reese, CPAColumbia, SC

Benjamin A. Riggins, CPALancaster, SC

Jeanne G. Seckinger, CPAHampton, SC

Ashleigh M. Sutter, CPASimpsonville, SC

Jeremy E. Tibbs, CPAGrant Thornton, LLPColumbia, SC

Judann M. Tine, CPAFort Mill, SC

Herbert J. Walker, CPA, MAColumbia, SC

Jack L. Waters, CPASpartanburg, SC

Dara S. Williams, CPAColumbia, SC

Kathleen A. Williams, CPACharleston, SC

FIRM ADMINSTRATORJudy M. AllenErnest W. Rabon, CPA, PAMyrtle Beach, SC

Catherine L. BrooksSC Department of TransportationColumbia, SC

Michelle GrahamJ.W. Hunt & Company, LLPColumbia, SC

Steve KellyCherry Bekaert & Holland, LLP*Greenville, SC

Diana WoodCharleston, SC

LEAVE OF ABSENCELauri L. Klugh, CPAAnderson, SC

STUDENTOpeyemi J. AkeleJersey City, NJ

Jacob D. ClaryColumbia, SC

Kelly A. DamianoColumbia, SC

Bridget M. DolinarColumbia, SC

Jessica A. DupeeMyrtle Beach, SC

David C. Erickson II, CPAGreer, SC

James D. GuffeyAnderson, SC

Huei-Jyan JhangColumbia, SC

Jason C. KneeseGreenville, SC

J A. McDermottCharleston, SC

Dee Batlis MastersFlorence, SC

Mark E. MenezesIsle of Palms, SC

Harrison J. MillerIrmo, SC

Michelle M. NugentColumbia, SC

Arnold K. OwinoCentral, SC

Kimberley S. ParkerMyrtle Beach, SC

Wesley M. PaulGreenville, SC

Summer D. RippyColumbia, SC

Cynthia M. StriegelFort Mill, SC

Marla A. WomackColumbia, SC

*100% Membership Firm


Upcoming CPE Focus On CPE Focus On CPE Upcoming CPE

Withanarrayofnewtaxbreaks,expiringtaxbenefits,loomingtaxincreases,newRothIRAconversionopportunities,repealoftheestatetax(2010only)andamodifiedcarry-overbasisrulefordeathsoccurringin2010,it’smoreimportantthanevertobeup-to-dateonthelatesttaxdevelopments.Attendthisseminarandlearnhowtomaneuverthemazeoftaxes.

DeceMBer 29, 2010

recent compilation and review issues (60510AM)SSARS19effectivelyrewroteandcodifiedmostofthecompilationandreviewstandards.Thisisanentirelynewprogramdesignedtoaddressthenewstandards.Field of Study: Accounting(2hrs)

what’s New with Quality control and Peer review (60510N)Beginningin2009,firmswereexpectedtorevamptheirqualitycontrolsystemsinordertocomplywiththeStatementonQualityControlStandardsNo.7,AFirm’sSystemofQualityControl.Inaddition,peerreviewswillundergodramaticchanges.Thisprogramwillkeepparticipantsontopofthelatestchangestoqualitycontrolpoliciesandproceduresandthepeerreviewprocess.Field of Study:Auditing(2hrs)

New! case studies in compliance Auditing (60510PM)TheAICPAhasrespondedtothecriticismleveledatitandotherorganizations(GAOandOMB)inthePCIE’sReportontheStatisticalSampleofComplianceAudits.Asaresult,additionalguidanceisbeingprovidedonmanyofthedeficienciesfoundduringthestudy.Thisfour-hourmodulewilltakealookatthechangesthenewSASNo.117andauditguidewillmaketocomplianceauditing,aswellasotherpuzzlingaspectsofcomplianceauditingusingacasestudyformat.Thecoursewillalsoaddressissuesarisingasaresultofthenearly$300billioninfundingfromtheAmericanRecoveryandReinvestmentAct(ARRA).Field of Study:Auditing(4hrs)

2010 Federal Tax Update with Walter Nunnallee December 2010 | Four Locations Across the State

Sponsored by CAMICO

seMiNAr LOcATiONsDecember 13 (florence) – Southeastern Institute of Manufacturing & Technology (60110FF)

December 14 (Bluffton) – USC Beaufort at Bluffton (60110FH)

December 15 (columbia) – Embassy Suites (60110FC)

December 16 (Greenville) – Embassy Suites (60110FG)

ABOUT THis eVeNTcPe credit: 8 hours cLe credit: 6.67 hours Area: Tax Level: Intermediate to Advance

Last Chance CPE Frenzy! December 29-30, 2010 | Columbia, SC

DeceMBer 30, 2010

New! fair Value Accounting in the 21st century (60610AM)Fairvalueaccountinghasbecomeafrequenttopicofdiscussionforaccountants,usersandgovernmentregulatorsduringthepastfewyears.ASCTopic820(previouslyFASB157),FairValueMeasurementsandFSPFASB157-4(DeterminingFairValueWhenVolumeandLevelofActivityfortheAssetorLiabilityHaveSignificantlyDecreasedandIdentifyingTransactionsThatAreNotOrderly)havecausedconfusion,frustrationandangeramongmany.Thisprogramwilladdressthisnewfairvaluerealityasitappliestofrequentlyencounteredsituationsinfinancialreporting.Field of Study: Accounting(4hrs)

New! international Accounting standards – Differences with U.s. GAAP (60610N)WiththeincreasinguseofInternationalAccountingStandardsintheU.S.bybothpublicandprivatecompanies,manyaccountantsfindtheyhavetodevelopanunderstandingoftheInternationalFinancialReportingStandards(IFRS)andhowtheydifferfromU.S.GAAP.Field of Study: Accounting(2hrs)

New! Accounting standards Update (60610PM)ThissessionwillprovideanoverviewofchangesmadetopronouncementssincetheFASBCodificationwasadopted.Onlypronouncementswhicharerelevanttolocalaccountingfirmsorprivately-heldcompanieswillbecoveredindetail.Forotherissues,aquicksynopsiswillbeprovided.Note:Thisisatwo-hourversionofourfull-dayprogram,Loscalzo’sAnnualFASBandAICPAUpdate.Field of Study: Accounting(2hrs)

for details or to register visit www.scacpa.org.

for details or to register visit www.scacpa.org.


Focus On CPE Upcoming CPE

DeceMBer 2010

12/02 - Effectively and Efficiently Reviewing Tax Returns in the Busy Season (69610) Credits: 8 Leader: Susan Smith

12/03 - The Complete Guide to Payroll Taxes and 1099 Issues (69810) Credits: 8 Leader: Susan Smith

12/07 - 2010 Individual Tax Review Series: Beyond the Basics (60310A) Credits: 8 Leader: Wendy Kravit

12/15 - Advanced Technical Tax Forms Training: Form 1040 Issues (69710) Credits: 8 Leader: James Vastarelli

12/16 - Advanced Technical Tax Forms Training: LLCs, S Corporations and Partnerships (69910) Credits: 8 Leader: James Vastarelli

12/20 - Preparing Individual Tax Returns for New Staff and Para- Professionals (61510) Credits: 8 Leader: Anne Wilkins

Tax Season Survival Guide December 2010 & January 2011 | West Columbia, SC

JANUArY 2011

01/04 - South Carolina Tax Overview (70511AM)Credits: 4 Leaders: Ryan Johnson & Anthony Masino

01/04 - Sales & Use Tax Update (70511PM)Credits: 4 Leaders: Ryan Johnson & Anthony Masino

01/05 - State Individual Income Tax Update (70611AM)Credits: 4 Leaders: Ryan Johnson & Anthony Masino

01/05 - State Corporate Income Tax Update (70611PM)Credits: 4 Leaders: Ryan Johnson & Anthony Masino

01/11- Limited Liability Company & Partnership Tax Return Preparation Workshop (70111)Credits: 8 Leader: Bart Carson

01/12 - Guide to Understanding the Key Issues in Preparing S Corporation Tax Returns (70211)Credits: 8 Leaders: Bart Carson

Event Facility: SCACPA Office570 Chris DriveWest Columbia, SC 29169(803) 791-4181

Hotel Accommodations:Hampton Inn - I26 1094 Chris Drive West Columbia, SC 29169(803) 791-8940Room Rate: $79

12/21 - Preparing C Corporation Tax Returns for New Staff and Para- Professionals (61610) Credits: 8 Leader: Anne Wilkins

12/22 - The Complete Guide to Preparing LLC Partnership and S Corp. Federal Income Tax Returns (61710) Credits: 8 Leader: Anne Wilkins

01/18 - 1040 Tax Season Survival Guide (70311)Credits: 8 Leader: Bill Grooms

01/19 - Advanced Individual Income Tax Return Issues (70411)Credits: 8 Leader: Bill Grooms

2011 MULTI-STATE CPE & SKI CONFERENCE • JANUARY 11-12, 2011Lion Square Lodge & Conference Center in Vail, CO

Supportedby21stateCPAsocieties,thisannualeventofferssixfour-hourCPEsessionsatthenumberonesnowskiresortintheU.S.,withinstructorsthatrankamongthetopinthenation.Coursestitlesinclude:Lean,CleanandAllThingsGoogle;ExcelPivotTables;FederalTaxUpdate;AccountingandAuditingUpdate;TechUpdate;andTenThingsYouMayHaveMissedinExcel.Toreceiveaninformationpacketwithdetailedcoursedescriptions,instructorbiographies,full-colorfacilitiesbrochuresandinformationaboutVail,pleasecallK2Enterprisesat(888)542-9390orvisitwww.k2e.com/co.ski.htm.

For details or to register visit www.scacpa.org.


the cpa report - south carolina 4th edition 4c page ad live: 8 x 10.5 trim: 8.5 x 11 bleed: 8.75 x 12.5

Special Offer for State Society Members*.ADP gives you the choice of doing business the way that best fits your firm. Whether you want to refer payroll or process it yourself, ADP provides world-class payroll and beyond payroll services, so you can focus on what matters most: growing your business and helping your clients be successful. In addition, your state society membership means that you will be rewarded with the following special benefits when you partner with ADP:

Contact your local ADP representative today.* Discount/free payroll applies to companies with 1 to 49 employees that sign complete ADP sales order and to all features of standard payroll processing invoiced on client’s

regular processing cycle and does not include additional non-payroll services; excludes pass through costs, courier and other delivery fees, including off cycle fees, hardware, or penalty and interest fees. Only available to new ADP Clients using EasyPaysm or RUN Powered by ADP® in the continental U.S. Must be set-up for direct debit of fees (“DDF”) as the payment method.

© 2010 ADP, Inc. The ADP Logo is a registered trademark of ADP. EasyPay is a service mark and RUN Powered by ADP is a registered service mark of ADP, Inc. All other trademarks are the property of their respective owners.

■ Payroll for your firm — FREE for up to 50 employees with discounted solutions to meet the needs of larger businesses

■ Special discounts for your firm’s clients

■ Free access to our Accountant HR Helpdesk

■ Free Master Tax Guides from CCH, a Wolters Kluwer business

■ 30% discount on all CCH tax and accounting publications

2610_CPAtrade_ad cpa report sc v2.indd 1 9/15/10 2:06:47 PM

Registrationisnowopenforthe2010AccountingandAuditingConference,December9-10inbeautifuldowntown

CharlestonattheFrancisMarionHotel.SCACPAmemberssave$125whenregisteringbyNovember18.

OurconferencefeaturesseveraldynamicspeakersthatwilldiscussChangesontheHorizonintheareasofaccountingandauditinginaformatthatallowsyoutheflexibilitytochoosethesessionsthatbestmeetyourneeds.TheA&A Conference spans two days with 16 CPE credits,twotracksandtenconcurrentsessions.

Thekick-offgeneralsessionisanA&AUpdatefrompastconferencefavoriteBradley Newkirk, CPA.ThissessionwillreviewnewlyissuedaccountingprinciplesandotheractivitiesoftheFinancialAccountingStandardsBoard(FASB),includingemergingissuesinrevenuerecognition,leaseaccountingandcontingencies.Also,discussionandreviewwillbeheldontheactivitiesoftheAccountingandReviewServicesStandards(SSARs)andtheAuditingStandardsBoard(ASB),includingtheclarityprojectandthemovetowardglobalauditingstandards.

Technologyguru Carlton Collins, CPAofAdvisorCPEwilloffertwosessions:ExcelDataAnalysis&FinancialReportingandBudgeting&FinancialReportingwithExcel.

by Reva Brennan, MPA, CAE, IOMS e r v i n g S C AC PA s i n ce 2 0 0 1

A&A Conference PreviewUpcoming CPE Focus On CPE

Changes on the Horizon

SouthCarolinafavoriteMark Hobbs, CPA willexploreaNewFrameworktoDocumentandEvaluateInternalControlsatanEntity,andprovidea2010FraudUpdate.

FairValueAccountingcontinuestoevolveintheU.S.Leah Donti, CPAwillpresenthowfairvalueaccountinghasbroughtchallengestotheaccountingprofession,andinasecondsessionpresentBusinessCombinationsFAS141RandtheRelatedFAS160.

GovernmentalAccountingStandardsBoardexpertDean Mead, CPAwillcoverGASBpronouncements

thatarenowbeingimplementedandtheGASB’scurrentstandards-settingactivities.

Joseph Beck, CPA willprovideaComp&ReviewsessioncenteredonSSARS19.

ByDecember2010,manylarge403(b)planswillhaveundergonetheirfirstaudits.Robert Lavenberg, CPA, JD, LLM willconductanopenforuminwhichthepresenterandparticipantswillsharetheirobservationsfromthischallengingauditseason.

TheconferencewillwrapupwithaQ&Asessionwithanall-starpanelofexperts.WearepleasedtoannounceRobertHalfasasponsorofthisevent,andlookforwardtoseeingyouinCharlestononDecember9-10!n

What accounting and

auditing changes are

on the horizon? Attend

this conference and find

out. This conference is

an ideal opportunity

for you to keep abreast

of the fast-paced

changes in accounting

and auditing. The

conference will cover

topics varying from

budgeting, compilation

and review, fair value,

financial reporting, and

more. Register today to

secure your spot!

Book your reservation at the Francis Marion Hotel today!SCACPAgrouprateof$136expires11/12/2010.

Pleasevisitwww.francismarioncharleston.comtomakeyourreservation.SCACPAgroupcodeisSCCPA.

register for the 2010 A&A conference atwww.scacpa.org.

the cpa report - south carolina 4th edition 4c page ad live: 8 x 10.5 trim: 8.5 x 11 bleed: 8.75 x 12.5

Special Offer for State Society Members*.ADP gives you the choice of doing business the way that best fits your firm. Whether you want to refer payroll or process it yourself, ADP provides world-class payroll and beyond payroll services, so you can focus on what matters most: growing your business and helping your clients be successful. In addition, your state society membership means that you will be rewarded with the following special benefits when you partner with ADP:

Contact your local ADP representative today.* Discount/free payroll applies to companies with 1 to 49 employees that sign complete ADP sales order and to all features of standard payroll processing invoiced on client’s regular processing cycle and does not include additional non-payroll services; excludes pass through costs, courier and other delivery fees, including off cycle fees, hardware, or penalty and interest fees. Only available to new ADP Clients using EasyPaysm or RUN Powered by ADP® in the continental U.S. Must be set-up for direct debit of fees (“DDF”) as the payment method.

© 2010 ADP, Inc. The ADP Logo is a registered trademark of ADP. EasyPay is a service mark and RUN Powered by ADP is a registered service mark of ADP, Inc. All other trademarks are the property of their respective owners.

■ Payroll for your firm — FREE for up to 50 employees with discounted solutions to meet the needs of larger businesses

■ Special discounts for your firm’s clients

■ Free access to our Accountant HR Helpdesk

■ Free Master Tax Guides from CCH, a Wolters Kluwer business

■ 30% discount on all CCH tax and accounting publications

2610_CPAtrade_ad cpa report sc v2.indd 1 9/15/10 2:06:47 PM


OFFICE SPACE AVAILABLEAccOUNTiNG PrAcTice sALesBuyers: registration is free and simple on our Web site! Selling? We can help you: maximize the value of your practice; experience a smooth process; and achieve confidence that your clients will be in good hands. See our available listings below! If interested contact Brannon Poe at [email protected] or call (888) 246-0974. Please see our multi-state listings at www.accountingpracticesales.com. Charleston - $220,000 Hilton Head/Bluffton - $145,000 Midlands Area - $195,000 Greenville Area - $210,000 Hartsville - $125,000 Spartanburg - $375,000

PrOfessiONAL AccOUNTiNG sALes BUY-SELL-MERGE-FINANCE your practice with USA’s No. 1 Accounting Brokerage Firm. Let our 27 years of CPA firm merger-acquisition experience work for you! We offer complete consulting assistance package to our clients including 100% bank financing so you can cash the seller out at closing.

current carolina practices include:Asheville $1,600,000+; Myrtle Beach $125,000 to $300,000; Winston-Salem $175,000; Charlotte

$350,000+; ATLANTA $350,000 to $850,000; Many others! Contact Leon Faris CPA Professional Accounting Sales 800-729-9031 Visit our web site: www.cpasales.com

ADVERTISER INDEX

Accounting Practice Saleswww.accountingpracticesales.com

Inside Back Cover

ADPwww.adp.com/accountant.aspx

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American Pensionshttp://www.ampen.com/

Inside Front Cover

Aon/BB&T Insurance Services/AICPA Professional Liability

Insurance Programwww.cpai.com

Page 29

Blythecowww.blytheco.com

Back Cover

Eddsa, Inc.www.eddsa.com

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John F. Hamilton, [email protected]

Page 25

Haynsworth Sinkler Boyd, PA www.hsblawfirm.com

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McAngus Goudelock & Courie, LLCwww.mgclaw.com

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Southeastern Insurance Consultantshttp://siconsultants.com/

Page 4

Classifieds

JOB OPPORTUNITIESTireD Of PUBLic AccOUNTiNG? Join our manufacturing/corporate network. Contact Ryan Nelson 800.525.7828 or [email protected]

ONSITE TRAINING AVAILABLEGet quality CPE in your office at your convenience. You choose the location, topic and date and we take care of the rest. Visit www.scacpa.org for more information. staff contact: Reva Brennan

SEEKING ADS FOR FUTURE EDITIONSReach more than 3,900 CPAs and accounting professionals in the South Carolina CPA Report! Rates are $1 per word for members; $2 per word for non-members. staff contact: Emily Allen

SCACPA encourages you to recycle when you are finished reading.

Tolearnmore visit www.recycleplease.org.

Tofindrecyclingcentersnearyouvisitwww.earth911.comorwww.wm.com.

eXecUTiVe cPA Office. York County - Fort Mill/Rock Hill/Charlotte, excellent up-scale area to start/relocate practice, New Class AAA Building, professionally designed interiors, furnishings/cubicles available, 2,000 to 4,000 square feet, $15 per square foot, $3.25 NNN, 6 months free. E-mail [email protected] for information/pictures or call 803-322-1583.

Picture this...next tax season,

a chair ...no desk

Go with the leader. We provide excellent service and get the best results.We have qualified buyers waiting. See detailed articles about the process on our website!

AVAILABLE PRACTICES

Charleston – $220,000 Bluffton/Hilton Head – $145,000

Midlands Area – $195,000 Greenville Area – $210,000

Hartsville – $125,000 Spartanburg – $375,000

Buyers – Registration is free and simple

Brannon Poe, CPA [email protected]

W W W. A C C O U N T I N G P R A C T I C E S A L E S . C O M

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PRSRT STDUS POSTAGE PAIDPERMIT NO. 1146

Columbia, SC

south carolina Association of cPAs570 Chris Drive, West Columbia, SC 29169

www.fsc.org© 1996 Forest Stewardship Council

Cert no. SW-COC-002946

10%

Mixed SourcesProduct group from well-managed

forests, controlled sources andrecycled wood or fibre

2010 cpa report fourth edition

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