2009 piu presentation final - erin hardwick

Erin P. Hardwick, CAEExecutive Director

SC Association of CPAs

ProfessionalProfessional Issues UpdateIssues Update

Message from the Message from the SCACPA PresidentSCACPA President

Charles M. Redfern, CPA

Rock Hill, SC

What We’ll Cover Today

News Headlines News Headlines The Economy The Economy Top Profession IssuesTop Profession Issues

• Fair ValueFair Value• Practice MobilityPractice Mobility• Reliability ProjectReliability Project• FASB CodificationFASB Codification• XBRL XBRL • SustainabilitySustainability

International MattersInternational Matters Legislative and Legislative and

Regulatory IssuesRegulatory Issues The Image of the CPA The Image of the CPA

ProfessionProfession The People Side of The People Side of

ThingsThings SCACPA: A Vision for SCACPA: A Vision for

20102010

4

NewsHeadlines

First African American president elected on platform of change

What’s in the Headlines?Obama vows to Obama vows to reform tax codereform tax code

"We need to simplify a monstrous tax code that "We need to simplify a monstrous tax code that is far too complicated for most Americans to is far too complicated for most Americans to understand, but just complicated enough for understand, but just complicated enough for the insiders who know how to work the the insiders who know how to work the system“system“

Obama crafts legislation to create Obama crafts legislation to create Consumer Financial ProtectionConsumer Financial Protection Agency Agency

National National Health Care ReformHealth Care Reform

Unemployment Statistics -SC

At 11.5% in August 2009At 11.5% in August 2009 June 2008 was 6.5%June 2008 was 6.5% SC is 48SC is 48thth highest in the nation highest in the nation All-time historical high unemploymentAll-time historical high unemployment Historical low: 3.1% in March 1998Historical low: 3.1% in March 1998

US Bureau of Labor Statistics

Ralph Nadar calls CPAs “MIA” ““Where were the giant accounting firms, the CPAs, and the rest

of the accounting profession while the Wall Street towers of fraud, deception and cover-ups were fracturing our economy, looting and draining trillions of dollars of other peoples’ money?”

This is the licensed profession that is paid to exercise independent judgment with independent standards to give investors, pension funds, mutual funds, and the rest of the financial world accurate descriptions of corporate financial realities.

It is now obvious that the accountants collapsed their own skill, integrity and self-respect faster and earlier than the collapse of the collapse of Wall Street and the corporate barons.” Wall Street and the corporate barons.”

Are you ready for the

New Normal

?

A Month to RememberU.S. Bails Out Fannie Mae & Freddie Mac

Lehman bankrupt; Merrill Lynch sold

Dow Jones plunges 504 pts

Fed rescues AIG

Dow plunges again; gold sees biggest one-day gain in 10 years

Goldman and Morgan Stanley become bank holding companies

Washington Mutual seized

Rescue package fails; Dow takes recordplunge

Rescue package goes to Congress; Wachovia for sale

Fed proposes bailout package

9/7 9/14 9/15 9/16 9/17 9/18 9/21 9/25 9/29 9/30 10/1

“It is increasingly clear that the current downturn is fundamentally different from

recessions of recent decades.

We are experiencing not merely another turn of the business cycle, but a restructuring of

the economic order.”

~Ian Davis, McKinsley Quarterly, March 2009

What did we discover when the tide receded?

What the Downturn Exposed

Bernie MadoffBernie Madoff Ponzi SchemePonzi Scheme $50+ billion$50+ billion 150 years of jail time150 years of jail time

Who is this man?

David Friehling, CPA – Partner – Friehling & Horowitz, CPAs

David Friehling, CPA

Audited Bernie Madoff fundsAudited Bernie Madoff funds Currently free on $2.5 million bailCurrently free on $2.5 million bail Accused of filing Accused of filing false reportsfalse reports with the SEC with the SEC Faces a maximum sentence of Faces a maximum sentence of 105 years in prison105 years in prison Since 1994 the firm has annually asserted that it Since 1994 the firm has annually asserted that it

performed no audits & was exempt from peer review!performed no audits & was exempt from peer review! AICPA statement:AICPA statement: The AICPA concluded its ethics The AICPA concluded its ethics

investigation of David Friehling's conduct as an auditor of investigation of David Friehling's conduct as an auditor of a broker-dealer, resulting in expulsion from membership a broker-dealer, resulting in expulsion from membership for failure to cooperate. for failure to cooperate.

Emergency Economic Stabilization Act

Signed into law on Signed into law on October 3, 2008October 3, 2008

Championed by Hank Championed by Hank Paulson, Treasury Paulson, Treasury SecretarySecretary

$750 Billion$750 Billion Called a “bail-out” Called a “bail-out” TARP – Troubled TARP – Troubled

Assets Relief Assets Relief ProgramProgram

Historic Move To Recover The Economic Stabilization Act

$700 billion to allow $700 billion to allow Treasury to purchase troubled Treasury to purchase troubled assetsassets

Restricts executive compensationRestricts executive compensation in companies selling in companies selling troubled assets troubled assets

Requires Treasury to provide details of purchases within Requires Treasury to provide details of purchases within 2 days and to create oversight boards2 days and to create oversight boards

Gives Gives taxpayers ownership stakes in companiestaxpayers ownership stakes in companies whose whose bad assets are purchased. bad assets are purchased.

Will enable Will enable banks to buy government insurancebanks to buy government insurance to cover to cover the principal and interest on certain troubled assetsthe principal and interest on certain troubled assets

American Recovery & Reinvestment Act of 2009

$787 billion total $787 billion total $8 billion to SC$8 billion to SC Lawsuit in SC to force Lawsuit in SC to force

governor to accept governor to accept Federal fundsFederal funds

www.Recovery.gov In SC, comptroller In SC, comptroller

general monitoringgeneral monitoring www.stimulus.sc.gov

Where’s Your $ Going?

American Recovery & Reinvestment Act of 2009

In South Carolina (August 09) – top 5 agencies: $333.3 million — Department of Health and

Human Services (Medicaid) $78.3 million — Employment Security

Commission $42 million — Department of Social Services $23.1 million — Department of Public Safety $17.8 million — Department of Education

Should Ma & Pa Kettle Help Explain

Financial Mess to Congress?

Top Profession

Issues

The Fair Value ControversyFair Value accounting relies on marking asset

valuations to market prices

Intense lobbying of Intense lobbying of Congress, starting Congress, starting last falllast fall

House Financial House Financial Services Services Subcommittee Subcommittee hearing on March 12hearing on March 12

FASB chairman FASB chairman promised fast action promised fast action to further clarify FAS to further clarify FAS 157 on fair value 157 on fair value measurementsmeasurements

FASB acted and FASB acted and issued 3 clarifying issued 3 clarifying standardsstandards

Congress wrestles with Mark-to-Market

Accounting Standard

“We Will Never Legislate Accounting”

Asked about a Asked about a congressional hearing in congressional hearing in March in which FASB March in which FASB board chairman Robert board chairman Robert Herz was told that he Herz was told that he needed to revise mark-to-needed to revise mark-to-market and fair value market and fair value accounting standards in accounting standards in three weeks’ time, Frank three weeks’ time, Frank said the subcommittee said the subcommittee was only was only exerting exerting pressure, but not trying to pressure, but not trying to legislate standards. legislate standards.

The Fair Value Ride

Was the standard-setting process Was the standard-setting process “influenced” by Congress and outside “influenced” by Congress and outside lobbying?lobbying?

Was there a rush to a solution?Was there a rush to a solution?

AICPA statement: AICPA statement: We strongly support an We strongly support an independent FASBindependent FASB

Mark-to-MarketResources from AICPA

www.journalofaccountancy.com/Web/FairValueResources.htm

CPA Practice Mobility

Practice Mobility

The challenge: Seamless movement The challenge: Seamless movement across state borders to provide services to across state borders to provide services to clientsclients

Requirements:Requirements:• No registrationNo registration• No feeNo fee• No escapeNo escape

Practice Mobility

Status in 2006 = 4 statesStatus in 2006 = 4 states

Status in 2008 = 31 statesStatus in 2008 = 31 states

Status in 2009 = 45 statesStatus in 2009 = 45 states

New Tool: Clickable MapNew Tool: Clickable Map

NC Passes Practice Mobility

Effective July 27, 2009Effective July 27, 2009Eliminates the requirements to pay a fee Eliminates the requirements to pay a fee

for a practice privilege for a practice privilege Eliminates the requirements to provide a Eliminates the requirements to provide a

notice for that privilegenotice for that privilegeNotification required for audits, PCAOB Notification required for audits, PCAOB

inspectionsinspectionsNC State Board of CPA Examiners NC State Board of CPA Examiners

(919) 733-4222.(919) 733-4222.

WA

OR

CA

NV

ID

MT ND

SDWY

UT

CO

AZ

NM

AK

HI

TX

OK

KS

NE

MN

IA

MO

AR

LA

MS AL GA*

FL

WI

IL

MI

IN

KY

TNSC

NC

VAWV

OHPA*

NY

VTME

RI

*

Legislation Pending - 1

Mobility Enacted Only for OtherMobility States -2 (GA , PA)

Mobility Enacted - 43

GUPR

2010 Anticipated LegislativeActivity - 2 In process - 6

CPA Mobility Legislative Activity

VI

MA

NH

MD

DC

DE

NJCT

The Reliability Project

AICPA’s Reliability Project

Most significant change to Most significant change to compilation and compilation and reviewsreviews since 1978 since 1978

The proposed standards would allow an The proposed standards would allow an accountant who performs internal control accountant who performs internal control services for a client also to review that client’s services for a client also to review that client’s financial statementsfinancial statements

Exposure draft issued April 28: comments Exposure draft issued April 28: comments were due by July 31were due by July 31

The Codification

Project

FASB Codification Project

FASB Accounting Standards Codification FASB Accounting Standards Codification launched on July 1, 2009launched on July 1, 2009

FASB declares the Codification as the FASB declares the Codification as the official official single sourcesingle source of authoritative non- of authoritative non-governmental U.S. GAAPgovernmental U.S. GAAP

A great resource - A great resource - http://asc.fasb.org/home SCACPA seminarSCACPA seminar

FASB Codification Project

FASB’s effort to FASB’s effort to reorganize thousandsreorganize thousands of GAAP of GAAP pronouncements pronouncements under about 90 under about 90 accounting headingsaccounting headings

A fully A fully online filing online filing cabinetcabinet

Available in “Available in “basic basic view” – freeview” – free to all to all

““Professional” viewProfessional” view that includes cross-that includes cross-referencing, search referencing, search functionality archiving, functionality archiving, etc. Cost etc. Cost $850 $850 annuallyannually..

FASB GAAP CodificationFASB GAAP Codification

7/1/09 – FASB release 7/1/09 – FASB release

Combines FASB, the Combines FASB, the Emerging Issues Task Emerging Issues Task Force and AICPA Force and AICPA pronouncementspronouncements

Dedicated Web site: Dedicated Web site: http://asc.fasb.org

XBRL

What is XBRL?

Extensible Business Reporting LanguageExtensible Business Reporting Language A new reporting model based on A new reporting model based on

“interactive data”“interactive data” Implementation could require a sizable Implementation could require a sizable

financial financial investment of time and money to investment of time and money to implementimplement the data-tagging strategy the data-tagging strategy

CFOs & finance executives must ask “are CFOs & finance executives must ask “are we ready?”we ready?”

Are we ready?

86% of accountants polled in 2008 said 86% of accountants polled in 2008 said their company was their company was not preparednot prepared to to implement XBRLimplement XBRL~ Study by IMA & Ajilon~ Study by IMA & Ajilon

68% said 68% said finding & training stafffinding & training staff to make to make the implementation successful was more the implementation successful was more of an obstacle than the IT componentof an obstacle than the IT component

SEC’s Phase-in Schedule

DATEDATE ISSUER DESCRIPTIONISSUER DESCRIPTION

June 15, 2009June 15, 2009 Domestic and Foreign Large Accelerated Filers Domestic and Foreign Large Accelerated Filers Using U.S. Using U.S. GAAP with Worldwide Public Common Equity Float above GAAP with Worldwide Public Common Equity Float above $5 Billion as of the End of the Second Fiscal Quarter of Their $5 Billion as of the End of the Second Fiscal Quarter of Their Most Recently Completed Fiscal Year Most Recently Completed Fiscal Year

June 15, 2010June 15, 2010 All Other Domestic and Large Accelerated FilersAll Other Domestic and Large Accelerated Filers Using U.S. Using U.S. GAAP GAAP

June 15, 2011June 15, 2011 All Remaining FilersAll Remaining Filers Using U.S. GAAP, including Smaller Using U.S. GAAP, including Smaller Reporting Companies Reporting Companies

June 15, 2011June 15, 2011 Foreign Private IssuersForeign Private Issuers with Financial Statements Prepared with Financial Statements Prepared in Accordance with IFRS as Issued By the IASBin Accordance with IFRS as Issued By the IASB

XBRL Resources

www.XBRL.org

http://www.sec.gov/spotlight/xbrl.shtml

http://thecaq.aicpa.org/Resources/XBRL/

Sustainability – the CPA Role

International International IssuesIssues

The Road to IFRS in the U.S.

IASB/FASB Convergence

Hope to complete convergence by 2011 Outstanding Issues:

• Revenue recognition• Financial statement presentation• Leases• Financial instruments• Liabilities and equity distinctions• Consolidations• De-recognition• Post-employment benefits

Hurry up and Wait? Sir David Tweedie –

“Where is the USA?” CFOs support single

set of global financial reporting standards

They want SEC to provide direction before they commit time and resources to preparedness

New Momentum Underway

Aug. 25 Mary Schapiro named James Kroeker as the SEC’s new chief accountant

Kroeker tells NY CPAs on Sept. 17: “…turning back to the roadmap will be an

important priority for us this fall." It is "resoundingly clear" that people agree there

should be a single set of global high-quality accounting standards, but there were striking differences in how different groups wanted to accomplish that goal.

Convergence ≠ Sameness

US GAAPUS GAAP Rules basedRules based Based on a GAAP Based on a GAAP

hierarchy (level A – D)hierarchy (level A – D) Primary accounting Primary accounting

standard setting body standard setting body is the FASBis the FASB

Accounting guidance Accounting guidance and interpretation is and interpretation is provided by FASB, provided by FASB, SEC, AICPA and EITFSEC, AICPA and EITF

IFRSIFRS Principles basedPrinciples based No hierarchy, consists No hierarchy, consists

of IASs, IFRSs & of IASs, IFRSs & interpretationsinterpretations

Standards and Standards and interpretations interpretations approved by the IASBapproved by the IASB

Interpretations of IFRIC Interpretations of IFRIC and its predecessor the and its predecessor the SICSIC

25,000 pages vs 2,000 pages

IFRS Preparedness in the USA

Best in class articles Best in class articles on what a U.S. CPA on what a U.S. CPA needs to understand needs to understand IFRS right nowIFRS right now

Articles framed with Articles framed with commentary by commentary by accounting professors accounting professors

Exam to testExam to test IFRS in IFRS in 20122012

SCACPA Seminars SCACPA Seminars

New IFRS Certificate of Accomplishment

Positioning of the U.S. CPA in the Global Environment

International marketplace dependencyGlobal speed of business International reciprocityMobility and Mutual Recognition

Agreements International Administration of CPA ExamCompetition IFRS adoptionNext tier firms

International Mobility

Internationalizing the CPA Exam

Expanding locations for U.S. CPA Exam Expanding locations for U.S. CPA Exam outside of U.S.outside of U.S.

Application, security & licensure emphasis Application, security & licensure emphasis will model U.S. requirementswill model U.S. requirements

Next StepsNext Steps• NASBA consensusNASBA consensus• Parallel implementation planningParallel implementation planning• Contract/Plan approval targeted for AugustContract/Plan approval targeted for August• Launch targeted for mid-2010Launch targeted for mid-2010

Legislative and Regulatory Issues

There’s A New Sheriff In Town

Past CEO of the Financial Past CEO of the Financial Industry Regulatory Industry Regulatory Authority, the securities Authority, the securities industry self-regulatory industry self-regulatory organization for broker-organization for broker-dealers dealers

Former SEC Former SEC Commissioner (1988-Commissioner (1988-1994)1994)

Former chairman of the Former chairman of the Commodity Futures Commodity Futures Trading CommissionTrading Commission

Mary Shapiro

Congress Works on Financial Services Reform

Congress is preparing to undertake a sweeping overhaul of financial services regulation

The recession, tight credit, and a growing awareness of regulatory shortcomings will lead to government action

Gaps in the existing regulatory structure and policymakers are evaluating

Financial ServicesOversight Council

Financial Services Reform

H.R. 3126 introduced in summer 2009. House Financial Services Committee holding hearings.

Legislation would create a “Consumer Financial Protection Agency” - CFPA

Authority to issue rules and guidance, initiate enforcement, limit use of arbitration, etc.

As written originally, it would cover CPAs

Financial Services Reform

Until recently H.R. 3126 gave regulatory power to the Consumer Financial Protection Agency (CFPA) to cover the CPA – client relationship including; • tax preparation• tax planning• personal financial planning services • pro bono financial literacy work of CPAs 

Latest draft of bill excludes CPAs!

Financial Services Reform

H.R. 3126 adds another layer of regulation on the accounting

profession does not consolidate any CPA regulation

Not asking for CPA exemption when offering consumer financial products, such as loan or investment products. Areas of potential abuse, such as refund anticipation

loans, are covered by other provisions of H.R. 3126.

Tax Strategy Patents

o 1998 court case allowed business method patentso Patent and Trademark Office (PTO) now grants tax

strategy patentso Almost 80 issued and over 120 pendingo Problem is growing and extending into new areas of the

tax codeo Supreme Court is considering the Bilski case which

addresses business patents, but decision unlikely to stop tax strategy patents

o AICPA supports legislative efforts to prohibit tax planning methods from being patented.

House bill to stop tax strategy patents reintroduced in May

Current cosponsors (8): Rick Boucher (D-VA) - leadBob Goodlatte (R-VA) - leadMike Conaway (R-TX) - CPALynn Jenkins (R-KS) - CPAWalter Jones, Jr. (R-NC) Brad Sherman (D-CA) – CPAJohn Spratt, Jr. (D-SC)Don Young (R-AK)  

Committed to sign on during

this September session (9):

Rob Bishop (R-UT)

Dave Camp (R-MI)

John Campbell (R-CA)-CPA

Louie Gohmert (R-TX)

Shelley Moore Capito (R-WV)

Vern Ehlers (R-MI)

Mike Pence (R-IN)

Vic Snyder (D-AR)

Charlie Wilson (D-OH)

Red Flag Rules Fair and Accurate Credit Transactions Act of

2003 (FACTA) – FTC to develop guidelines for financial institutions/creditors to combat ID theft

11/9/07 – If covered, rules require written ID theft program- Enforcement delayed until 11/1/09

Most CPAs covered if “extend, renew or continue credit”- Includes monthly billings

Rules allow flexibility depending on risk - High Risk = elaborate program- Low Risk = less complex program

Civil Penalties per single violation $3,500

Red Flag Rules

8/4/09 – AICPA letter to Jonathan Leibowitz, Chairman of FTC Applauding delay and asking for CPA exemption

SCACPA sent similar letters to FTC and SC Congressional delegation

Outlook: Coalition building with impacted parties, i.e. small

business, associations, etc. ABA lawsuit filed on 8/27/09 Possible legal and/or legislative action

Tax Preparer Registration

Regulating Tax Preparers

IRS is holding public forums now Considering registration, exam, CPE and

certificate IRS has the authority to regulate federal tax

return preparers through the current penalty structure, Circular 230

Agree with efforts to ensure preparers are qualified, ethical, and provide quality services

But…Would this “legitimize” the competition?

Federal Tax Code Reform TF

Created by Pres. Barack ObamaCreated by Pres. Barack ObamaLed by former Federal Reserve Chair Paul Led by former Federal Reserve Chair Paul

VolckerVolcker Report due by Dec. 4, 2009Report due by Dec. 4, 2009 Provide recommendation on tax simplification, Provide recommendation on tax simplification,

tax evasion, reducing “corporate welfare,” tax evasion, reducing “corporate welfare,” streamlining tax credits & decreasing the tax gapstreamlining tax credits & decreasing the tax gap

No increase on taxes for families earning less No increase on taxes for families earning less than $250K per yearthan $250K per year

No tax increases in 2009 or 2010No tax increases in 2009 or 2010

State Legislative Issues

Jason Sweatt, Chairman, SCACPA Jason Sweatt, Chairman, SCACPA Legislative/Advocacy CommitteeLegislative/Advocacy Committee

Todd Dailey, Chairman, SCACPA Todd Dailey, Chairman, SCACPA State & Local Tax Task ForceState & Local Tax Task Force

Grassroots/KPCs

CPA PAC ($)

SCACPA lobbyists

Advocacy for the CPA Profession

SC Board of Accountancy

Nine member board (5 CPAs, 2 APs, 2 Nine member board (5 CPAs, 2 APs, 2 public members)public members)

Serves as the regulator of the professionServes as the regulator of the profession Manages licensing and renewalsManages licensing and renewals Housed under the state agency -- Labor, Housed under the state agency -- Labor,

Licensing and Regulation (LLR)Licensing and Regulation (LLR) Concerns about BOA operational structureConcerns about BOA operational structure

SC Board of Accountancy

Bi-annual license renewalBi-annual license renewalEmeritus status for retiring CPAsEmeritus status for retiring CPAsFacilitated State BOA access to peer Facilitated State BOA access to peer

review reports (opt-out option)review reports (opt-out option)New rules being written this fallNew rules being written this fall

The Image the Profession

Attitudes toward CPA Credential

76% 74%

60%

66%

31%

43%Investors

BDMs

More confident in a job done by a CPA than if it were done by an accountant not a CPA.

CPA requires more rigorous training and testing than any other financial credential

Accountants certified by non-U.S. organizations, such as the Association of Chartered Certified Accountants (ACCA), are just as qualified as CPAs.

The Economist magazine calls this the year of the CFO. A year where CFO's are more critical than ever to their organizations. 

"As financial skills are valued more highly, CFOs will make it to the corner office in greater numbers than before. Recession, credit crunch and the increasingly complex nature of global companies will all play directly into the bean counter’s hands." 

Perceptions of CPAs Are Largely Consistent Across All Audiences

BDMs Large Biz BDMs Sm-Med Biz Investors CPAs YPs

1 Has integrity Competent Competent Has integrity Competent

2 Competent Has integrity Has integrity Competent Has integrity

3Able to synthesize

information from multiple sources

Objective Objective ObjectiveAble to synthesize

information from multiple sources

4 ObjectiveAble to synthesize

information from multiple sources

Able to synthesize information from multiple

sources

Able to synthesize information from multiple

sources

Able to see the big picture

5 Focused on client needs Focused on client needs Focused on client needs Focused on client needs Objective

6Able to identify potential

problems before they happen

Able to identify potential problems before they

happen

Able to identify potential problems before they

happen

Able to see the big picture

Focused on client needs

7 Technologically adept Technologically adept Technologically adept Demonstrates leadershipAble to identify potential

problems before they happen

8Communicates

effectivelyAble to see the big

pictureAble to see the big

picture

Able to identify potential problems before they

happenDemonstrates leadership

9Able to see the big

pictureCommunicates

effectivelyCommunicates

effectivelyTechnologically adept Technologically adept

10 Demonstrates leadership Demonstrates leadership Creative and innovativeCommunicates

effectivelyCommunicates

effectively

11 Creative and innovative Creative and innovative Demonstrates leadership Creative and innovative Creative and innovative

Values Positioning Positioning

CPA Brand = What CPAs Stand ForCPA Brand = What CPAs Stand ForIntegrity:Integrity:

They are scrupulous, objective, unbiased, ethical They are scrupulous, objective, unbiased, ethical seekers of truthseekers of truth

Competence:Competence:They are disciplined, responsible, highly skilled and They are disciplined, responsible, highly skilled and

trained, careful professionalstrained, careful professionals

10 Things I Have Learned from Being an Accountant!

The People Side of Things

Does Money Change Things?

When the economy is good, the top three priorities for leaders are recruiting and retaining talent, pursuing growth opportunities and maintaining a competitive edge.

When the economy is bad, leaders' top challenges are doing more with less, motivating the workforce and pursuing growth opportunities

Source: Ajilon Finance and the Institute of Management Accountants

Raising Staff’s Spirits

Most companies are taking steps to boost Most companies are taking steps to boost employee moraleemployee morale

68% of CFOs surveyed say they’re 68% of CFOs surveyed say they’re implementing strategies to buoy the mood implementing strategies to buoy the mood of their teamsof their teams

26% said they aren’t doing anything to 26% said they aren’t doing anything to improve moraleimprove morale

Motivating Employees Max Messmer, Accountemps Chairman

Professionals crave information about their Professionals crave information about their company’s performancecompany’s performance & their own & their own job job stabilitystability

When there is little communication, When there is little communication, employees are more likely to employees are more likely to fill in the fill in the blanksblanks themselves themselves-- Perhaps jumping to negative conclusions-- Perhaps jumping to negative conclusions

Motivating Employees Max Messmer, Accountemps Chairman

There are many cost-free ways to improve There are many cost-free ways to improve the mood in the office:the mood in the office:• Public praisePublic praise• Flexible work schedulesFlexible work schedules• Soliciting employees for business Soliciting employees for business

development and cost-saving ideasdevelopment and cost-saving ideas

It Goes Beyondthe Bestand the Brightest

Private Company Practice Section

Tools and Resources Valued Far Beyond the Investment

Supply & Demand

In 2007-08:• 66,000+ accounting

degrees • Up 3.5% from 2006-07• 4.7% increase in

enrollments• Record number

Decrease at all Decrease at all degree levelsdegree levels

Hiring strong in fall Hiring strong in fall of 2007 and of 2007 and deteriorated in deteriorated in spring 2008spring 2008

Study looks at public Study looks at public accounting firms - accounting firms - not business, not business, industry and industry and governmentgovernment

New Grads Hired

New Site Offers More Interaction for Students

Investing in the Future

Scholarships for Scholarships for college students college students majoring in majoring in accountingaccounting

$19,000 in 2009$19,000 in 2009

18 scholarships 18 scholarships statewidestatewide

What’s New at SCACPA

A Vision for 2010

1) CPE Innovation

2) Membership Relevancy

3) Advocacy

4) Financial Literacy

5) People

Contact me:

Erin Hardwick, CAE

ehardwick@scacpa.org

803-791-4181 x 104

Thanks for joining us!