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ARIZONA STATE BOARD OF ACCOUNTANCY OPEN SESSION MINUTES

July 11, 2016

Members of the Arizona State Board of Accountancy (“Board”) held a meeting at the Accountancy Board Office in Suite 165, 100 N. 15th Avenue, Phoenix, Arizona 85007. Executive Session was held from 8:16 a.m. to 9:12 a.m.

BOARD MEMBERS: Layne Reid Simmons, CPA ................................................................................ President Douglas N. Kimball ............................................................................................. Secretary

LeRoy M. Gaintner, CPA .................................................................................... Treasurer Gary L. Freed ....................................................................................................... Member William C. Heimerdinger, CPA ............................................................................. Member Julie S. Klewer, CPA............................................................................................. Member Giselle C. Alexander ............................................................................................. Member Absent

STAFF PRESENT: Monica L. Petersen .............................................................................. Executive Director Valli Goss ................................................ Assistant Director, Regulation and Compliance Jacki Hancock ......................................... Assistant Director, Registration and Operations John Oyas ........................................................................... Program Project Specialist 2 Christopher Rasmussen ...................................................... Program Project Specialist 2 Jessica Buckner ....................................................................... Administrative Assistant II ASSISTANT ATTORNEY GENERAL: Scott Donald, Esq.................................................................... Assistant Attorney General GUESTS PRESENT AND/ORPARTICIPATING: Edward Osinski, CPA ........................................................................................ Registrant Marion G. Peterson, CPA .................................................................................. Registrant Adela E. Jiménez, CPA, CGMA ...................................................COO and CFO, ASCPA David Freeland ........................ Arizona Association of Accounting and Tax Professionals Richard H. Easton, CPA .................................................................................... Registrant Ed Contreras ....................................................................................................... Applicant Laura Jenkins .................................................................................................... Registrant Charles Kilpatrick .............................................................................................. Registrant Carol McDonald ....................................................................................................... Guest

ARIZONA STATE BOARD

OF ACCOUNTANCY

100 North 15th Avenue, Suite 165

Phoenix, Arizona 85007

Phone (602) 364-0804

Fax (602) 364-0903

www.azaccountancy.gov

http://www.azaccountancy.gov/

ARIZONA STATE BOARD OF ACCOUNTANCY MEETING OPEN SESSION MINUTES July 11, 2016

The meeting was called to order at 8:15 a.m. by Layne Reid Simmons, Board President. The following order of business was then considered: OPEN SESSION SUMMARY OF CURRENT EVENTS

New Board Member Giselle C. Alexander introduced herself and the other Board members welcomed her to the Board.

EXECUTIVE SESSION

A motion was made by Layne R. Simmons, seconded by LeRoy M. Gaintner, to go into executive session at 8:16 a.m. to obtain legal advice for agenda items XI.A and XI.N, pursuant to A.R.S. § 38-431.03(A)(3). The motion passed 6 - 0. After consideration in executive session, the Board reconvened in open session 9:12 a.m.

OPEN SESSION CALL TO THE PUBLIC

Scott Donald, Assistant Attorney General (AAG) read the following to the public:

“Pursuant to Arizona Supreme Court Rule 31, a natural person may appear before a regulatory body with or without counsel; however, any legal entity must appear only through the representation of a licensed attorney.”

Layne Reid Simmons clarified to the public the implications of Arizona Supreme Court Rule 31 for individuals seeking to represent their firms. Edward Osinski introduced himself and stated that he was present for File No. 2016.095. Charles Kilpatrick introduced himself and stated the he had finished all CPE compliance requirements before 8:30 a.m. that morning. Marion G. Peterson introduced himself and asked for more time to complete his CPE requirements.

DISCUSS, AMEND AND APPROVE MINUTES After discussion, a motion was made by Julie S. Klewer, seconded by LeRoy M. Gaintner, to accept the May 23, 2016 Joint Board and Tax Advisory Committee Meeting Open Session minutes, as drafted. The motion passed 4 - 0. Giselle C. Alexander and Layne Reid Simmons abstained from the vote.


After discussion, a motion was made by Julie S. Klewer, seconded by LeRoy M. Gaintner, to accept the May 23, 2016 Joint Board and Tax Advisory Committee Meeting Executive Session minutes, as drafted. The motion passed 4 - 0. Giselle C. Alexander and Layne Reid Simmons abstained from the vote. After discussion, a motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to accept the June 13, 2016 Board Open Session minutes, as amended. The motion passed 5 - 0. Giselle C. Alexander abstained from the vote. After discussion, a motion was made by Julie S. Klewer, seconded by Gary L. Freed, to accept the June 13, 2016 Board Executive Session minutes, as drafted. The motion passed 5 - 0. Giselle C. Alexander abstained from the vote.

DECLARATION OF CONFLICTS OF INTEREST

William C. Heimerdinger declared a conflict of interest with agenda item XI.D.2 -- Treon, Christopher. Julie S. Klewer declared a conflict of interest with agenda item XI.G.1 -- Charvoz, Charles Louis 3553-R. Gary L. Freed declared a conflict with agenda item VII.A.2 -- File Nos. 2016.135 and 2016.136.

CONSENT AGENDA

William C. Heimerdinger declared a conflict of interest with the following consent agenda (V) item: L. Recommendation of the CPE Advisory Committee for Compliance of the Following

Registrants Regarding CPE Audit: 17. Stussie, Robert A. 17452-E A motion was made by Julie S. Klewer, seconded by LeRoy M. Gaintner, to approve agenda item V.L.17. The motion passed 5 – 0. William C. Heimerdinger was conflicted and recused himself from the vote. Julie S. Klewer identified two notable items on the consent agenda. Layne Reid Simmons stated that the Board will pull V.A.8 and V.D.1 from the consent agenda to be voted on separately.


Gary L. Freed declared a conflict of interest with the following consent agenda items: J. Recommended Approval of Retired Status for the Following Registrants: 4. Fester, Larry Allan 1860-R 5. Goldenson, Richard H. 11102-R A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to approve agenda items V.J.4 and V.J.5. The motion passed 5 – 0. Gary L. Freed was conflicted and recused himself from the vote. Giselle C. Alexander declared a conflict of interest with the following consent agenda item: A. Recommended for Registration of Firms for the Following Applicants: 2. Christopher C. Bridges, CPA Partner: Christopher C. Bridges 7763-E A motion was made by Julie S. Klewer, seconded by LeRoy M. Gaintner, to approve agenda item V.A.2. The motion passed 5 – 0. Giselle C. Alexander was conflicted and recused herself from the vote. A motion was made by LeRoy M. Gaintner, seconded by Gary L. Freed, to approve the remainder of the following consent agenda items with V.A.8 and V.D.1 pulled from the consent agenda to be voted on separately. The motion passed 6 – 0.

A. Recommended for Registration of Firms for the Following Applicants: 1. Anne L. Audrain Cooper

Partner: Anne L. Audrain Cooper 9920-R 2. Voted on Separately 3. Hooper Accounting & Tax, LLC

Partner: Edward N. Hooper 11873-E 4. Jeffrey S. Litwin CPA

Partner: Jeffrey S. Litwin 18149-R 5. John P. Carroll, CPA

Partner: John P. Carroll 11892-E 6. Kinzey & Arndt CPA, PC

Partner: Scott K. Kinzey 4801-E

7. Linda Rozet, CPA PC Partner: Linda Rozet 11516-E

8. Voted on Separately 9. Nancy A. Bahling, CPA

Partner: Nancy A. Bahling 3107-E 10. Shippen, Pope & Associates, PLLC

Partner: Rex A. Pope 15455-E


11. Susan M. Sinkiawic, CPA Partner: Susan M. Sinkiawic 8676-E

B. Recommended for Firm Cancellation:

1. Bahling, Nancy A., CPA, P.C. 942-C 2. Beebe-Abbott, Alyce, CPA, P.C. 2116-C 3. Bhatnagar, Nisheeth, CPA, PLLC 6185-L 4. CPA Accounting Solutions LLC 3354-L 5. Feldman, Robert H., CPA 4914-S 6. Hintze, Heidi, CPA, PLLC 3227-L 7. Hutchison, Sadie, CPA 5752-S 8. Lepore, Michael, CPA 4606-S 9. Noble, Debbie B., CPA 5702-S 10. Omar Makram, Mohamed, CPA 4612-S 11. Weir-Eanes, Colleen M., CPA 4613-S

C. Recommended for Cancellation of Certificate:

1. Barbara Jane Dykman-Thomas 5931-E 2. Deborah L. Crowley 14854-R 3. Michael John James Sabellico 6382-E 4. Usha Raghavan 8831-E

D. Recommended for Reissuance of Certificate Because of Name Change:

1. Voted on Separately 2. Issued as: Maria Krey 17885-R ; New Name: Maria Elizabeth Krey 3. Issued as: Tammy Fryer 9492-E ; New Name: Tammy Stepanski 4. Issued as: Andrew Rhea 17780-E ; New Name: Andrew Laurence Rhea 5. Issued as: Tracy A. Ryder 11433-E ; New Name: Tracy A. Karns 6. Issued as: Katherine M. Marsh 16838-R ; New Name: Kathrine M. Salome

E. Recommendation of the Certification Committee for Approval of Certification by

Examination: 1. Biggs, Paul M. 2. Blackburn, Nicholas V. 3. Jennings, Nicholas 4. Lee, Jordan M. 5. Lewis, Laray 6. Mardhani, Rahim Nooruddin

7. McMurray, Micah B. 8. Resor, Isabella 9. Riffle, Ronald A. 10. Schmidt, Kerby 11. Stone, Ryan

F. Recommendation of the Certification Committee for Approval of Certification by

Grade Transfer: 1. Kazimierek, Max 2. McDonnell, James Stephen 3. Rickard, Fernanda 4. Schirmer, Kaja E.


G. Recommendation of the Certification Committee for Approval of Certification by

Reciprocity: 1. Liu, Brenda Ruibing 2. Milliken, Douglas

H. Recommendation of the Certification Committee for Approval of Certification by

Reciprocity based on Substantial Equivalency: 1. Cooper, Larisa Alexei 2. Kiilehua, Jennifer 3. Meilink, Deborah 4. Webster, Christopher P.

I. Recommendation of the Certification Committee for Approval of Examination

Candidates for the Uniform CPA Examination: 1. Aditi, Saumya 2. Agarwal, Gauree 3. Alcocer, Ann Marie 4. Anderson, Kristina Marie 5. Anderson, Trevor Burt 6. Arora, Simrita Kaur 7. Ayare, Kanupriya 8. Azad, Zainab Hunaid 9. Bain, Dylan Moyer 10. Barajas, Haley Savannah 11. Barata, Duarte Collard 12. Barber, Justin David 13. Bhargava, Ajitesh 14. Bhatia, Ayush 15. Bhatia, Monica 16. Birch, Lisa Miles 17. Bryan, Nicolas Alexander 18. Chen, Yingying 19. Christensen, Richard Lyle 20. Clayton, Carisa Ann 21. Crain, David Michael 22. Dhingra, Kunal 23. Duong, Thiem Tran 24. Freehan, Nathan Douglas 25. Gadhiraju, Srinivas Varma 26. Gonzol, Joseph Brandon 27. Gowadia, Jeny Vinodkumar 28. Greener, Ellen Marie 29. Guerrero, Erica 30. Guitteau, Renee Leifer

31. Hensley, Tanner Vaughn 32. Hill, Micah Dawn 33. Hla, Thidar 34. Hodge, Lezle E. 35. Hogancamp, Jade Elizabeth 36. Jain, Vishal Jayantilal 37. Janpally, Sai Kiran Reddy 38. Jones, Tyler Grant 39. Kamra, Akanksha 40. Kannan, Radhika 41. Kapil, Saurabh 42. Kaur, Amandeep 43. Kerns, Martin Joseph 44. Khan, Mohd Zahab 45. Kometh, Nathan Robert 46. Lakhlan, Sanju 47. Li, Dan 48. Loomba, Vani 49. Mayfield, Kayla Danielle 50. McDowell, Kathleen Ann 51. Mcfarland, Corey Wayne 52. McIntire, Reba Lee 53. Mendoza, Anthony Louis 54. Metzger, Austin Charles 55. Mishra, Kshama 56. Mock, Irena 57. Myers, Josh Leroy 58. Nerusupalli, Kaushik 59. Nichanamatlu, Keerthana 60. Pal, Ananya


61. Pham, Le Hang Ngoc 62. Quintana, Vincent Mendoza 63. Rao, Mandula Srinivas 64. Rizkallah, Elizabeth 65. Robles, Mariana 66. Roe, Kathryn Clarke 67. Rompalo, John F. 68. Schneider, Joseph Michael 69. Sharma, Gurusha 70. Singh, Kudrat 71. Singh, Tanveer 72. Sinha, Sushmita 73. Stockwell, Anna Germaine

74. Sukhadia, Prachi Bhupendra 75. Sun, Xiaoqi 76. Thakur, Sai Suryanath Singh 77. Vajpai, Amit Kumar 78. Valdivia, Ashley Lynae 79. Vinnai, Laura Marie 80. Vogan, Taylor Alan 81. Warford, Donna L. 82. Warren, Richard Wayne 83. Washington, Dominic Dionell 84. Yack, Karsen Trace 85. Zackoski, Aaron Michael

J. Recommended Approval of Retired Status for the Following Registrants: 1. Blomstrom, Ray A. 1975-E 2. Cummings, Olin E. 1695-E 3. Feldman, Robert H. 825-E 4. Voted on Separately 5. Voted on Separately 6. Hammel, Richard William

1665-E 7. Harris, Nancy 5160-R 8. Jasper, Raymond Gail 2154-E 9. Julien, Kenneth M. 2405-E 10. Kalway, Mary J. 6100-E 11. Kuechelmann, Paul H. 1620-E

12. Langstraat, Craig J. 1683-E 13. Miller, David G. Sr. 1238-E 14. Muller, Barbara J. 6532-E 15. Newton, Myron Kent 3906-E 16. Penner, Bradley S. 3916-E 17. Peterson, Glenn D. 2523-R 18. Snyder, Gerald E. 1310-E 19. Steensma, David Karl 2205-E 20. Stevens, Floyd D. 1693-E 21. Thomas, Maris Ann 4682-E 22. Winans, David Leo 1857-E 23. Yogerst, Paul 2231-E

K. Recommended for Reactivation of Certificate from Inactive Status:

1. Hartmann, Kimberly C. 7421-E 2. Lysenko, Victoria L. 10209-E 3. Nel, Debra J. 13844-R

L. Recommendation of the CPE Advisory Committee for Compliance of the Following

Registrants Regarding CPE Audit: 1. Bach, Kevin C. 16081-R 2. Doll, Gina M. 14593-E 3. Fenton, Cedric R. 6080-E 4. Fowler, Linda K. 5145-E 5. Hawkins, Laurie Ann 10394-E 6. Hubert, Edwin G. 2314-E 7. Lin, Edith 8819-E 8. Linford, Ronald G. 15808-R 9. Muratore, Charles J. 7169-E

10. Pace, Cory A. 11513-E 11. Pucci, Frederick S. 6283-E 12. Rausch, Kelly L. 8766-E 13. Smith, Patrick J. 14773-E 14. Spiegel, David M. 13000-E 15. Standring, John 16418-E 16. Stell, Lara R. 13919-E 17. Voted on Separately

ARIZONA STATE BOARD OF ACCOUNTANCY MEETING MINUTES July 11, 2016

M. Recommendation of the CPE Advisory Committee for Compliance Regarding Request for Reinstatement from Expired Status, and Recommended for Registration of Firm for the Following Applicants: 1. Olds, Lewis D. 17845-R 2. Firm: Lewis Olds, PLLC

N. Recommendation of the Peer Review Oversight Advisory Committee for Approval

of the Following Firms in Compliance with Peer Review Requirements: 1. Herb, Nick, Accounting Service, PC 2383-C 2. Caputo, Paul J., CPA 5336-S 3. EECPA, PLC 1126-C 4. Furst & Associates, P.C. 678-C 5. Heinfeld, Meech & Co., P.C. 463-C 6. Jeong Lizardi, P.C. 216-C 7. Mattice, Kim W., CPA LTD 224-C 8. Pricewaterhousecoopers LLP 2125-B 9. Rambeau, Paul N., P.C. 589-C 10. Secore & Niedzialek, P.C. 490-C

O. Termination of Decision and Order 1. File No. 2016.078; Henkhaus, Richard A.

COMMITTEE RECOMMENDATIONS – COMPLAINT/INITIAL ANALYSIS FILES

File No. 2016.073 A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to close the file due to no violations of professional standards. The motion passed 5 - 0. Giselle C. Alexander abstained from the vote.

File Nos. 2016.135 and 2016.136 Board Staff, Board Members and the AAG introduced themselves. Carol McDonald provided a summary and background of the complaint and circulated checks relating to the payments made to the accountant. LeRoy M. Gaintner asked if the nature of the complaint was year-end work, and if Ms. McDonald requested to have the files back. Julie S. Klewer stated that the two checks that were provided were made by the trustee assigned to the bankruptcy court. A discussion ensued regarding the matter. Ms. McDonald asked if she could see the initial findings of the file. Monica L. Petersen explained that the file is still in initial analysis and remains, therefore, confidential. A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, to accept the Committee’s recommendation and to close the files due to no violations of professional standards. The motion failed 3 – 0 for lack of a quorum. LeRoy M. Gaintner stated that he had not yet reviewed the supplemental file materials. The agenda item was deferred to later on in the meeting to provide LeRoy M. Gaintner the opportunity to review the file to opine on the matter.


ITEMS FOR REVIEW, DISCUSSION AND POSSIBLE ACTION INCLUDING DISCIPLINARY ACTION

Compliance/Non-Compliance with Firm Registration Requirements Peterson, MG, Consulting, PLC 2487 LeRoy M. Gaintner noted his observation regarding the firm’s extensive history of

suspensions for non-registration and expressed concerns regarding the history of non-

renewal. Layne Reid Simmons wanted to know from Monica L. Petersen how she sees the

procedure of handling the matter. Ms. Petersen noted that what the Board may want to

consider pursuing is a Decision & Order (By Consent) for revocation of the firm’s registration

for failure to meet the qualifications to be a firm, because the firm is made up of a sole

member whose license is not in good standing, due to the suspension for non-registration of

the individual CPA. Ms. Petersen further stated that if the Registrant does not accept the

Decision and Order (By Consent), then the Board could pursue a complaint and notice of

hearing for revocation.

Mr. Simmons asked for further clarification regarding what the procedure might be if the

Registrant remediated his renewal within the next 30 days. Ms. Petersen said that if the

matter moves forward to a complaint and notice of hearing for revocation, the Board should

be making decisions based on the record of the time, but as a practical matter, if the

suspension was vacated, there could be a settlement between the Attorney General’s Office

and the Registrant whereby another form of discipline is offered, such as an administrative

penalty of $2,000 in lieu of revocation of the firm’s registration to cure the matter. Ms.

Petersen then asked for clarification from the AAG as to whether an alternative form of

discipline could even be considered, apart from revocation, since the statute dictates that

revocation is required under circumstances such as those already stated. A discussion

ensued amongst the Board Members, Board Staff, and AAG regarding the matter and

possible disciplinary action.

Ms. Petersen stated that working within the current law, the Board needs to move forward

with what facts it now has before it to consider, rather than continuing to extend the process

some set number of additional days, which complicates the regulatory process.

Gary L. Freed stated that he wanted to emphasize for the record the concern that this is really

serious: that a registrant should not have a suspension of a certificate for non-registration;

and a history of multiple suspensions is not acceptable. We need to follow the law, and we

cannot cut breaks to people who are violating the law when others are following it.

A motion was made by Gary L. Freed, seconded by William C. Heimerdinger, that the Registrant (firm) be offered a Decision and Order (By Consent) for revocation, pursuant to A.R.S. § 32-742(A) for failure to meet the requisite firm qualifications, pursuant to A.R.S. § 32-731(A)(1), whereby at least one partner shall be a CPA in good standing. If the Registrant (firm) does not consent within 30 days of the date of the Decision and Order (By Consent) being offered to the Registrant (firm), then the matter should automatically proceed to a complaint and notice of hearing for revocation. The motion passed 6 – 0.


File No. 2016.095 Edward Osinski encouraged the Board to follow the Accounting and Auditing Advisory Committee’s recommendation to close the file due to no violations. A motion was made by LeRoy M. Gaintner, seconded by Gary L. Freed, to accept the Committee’s recommendation to close the file due to no violations of professional standards. The motion passed 5 – 0. Giselle C. Alexander abstained from the vote. The Board recessed from 10:06 a.m. to 10:15 a.m.

COMMITTEE RECOMMENDATIONS – COMPLAINT/INITIAL ANALYSIS FILES

File Nos. 2016.135 and 2016.136 LeRoy M. Gaintner stated that he had had the opportunity to review the matter. A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, to accept the Committee’s recommendation to close the investigation files due to no violations of professional standards. The motion passed 4 – 0. Giselle C. Alexander abstained from the vote and Gary L. Freed was conflicted and recused himself from the vote.

ITEMS FOR REVIEW, DISCUSSION AND POSSIBLE ACTION INCLUDING DISCIPLINARY ACTION

Compliance/Non-Compliance with Firm Registration Requirements Kilpatrick, Charles A., CPA, PLLC 3332 LeRoy M. Gaintner reiterated his statement as to the history of continual suspensions for

non-registration of the Registrant. Monica L. Petersen shared that the Registrant had

submitted his online renewal earlier that day. The renewal was required pursuant to the

letter from Jacki Hancock on July 5, 2016. Ms. Petersen noted that if the Board does not

want to pursue revocation, it may consider offering a Decision & Order (By Consent) for

failure to timely respond.

A motion was made by Gary L. Freed, seconded by LeRoy M. Gaintner, to offer a Decision & Order (By Consent) with a $500.00 administrative penalty. The motion failed 2 – 3. Giselle C. Alexander abstained from the vote and Layne R. Simmons, William C. Heimerdinger, and Julie S. Klewer opposed the motion.

Layne Reid Simmons stated that another way to look at the situation was a penalty of $100/week from the date the Registrant is required to submit the material. Gary L. Freed stated that, in the accounting profession, rules are made to allow CPAs to exercise judgment, and that when there is a pattern or practice, the Board should choose to


exercise their judgment. A discussion amongst the Board ensued regarding possible sanctions and setting precedence on these situations. Julie S. Klewer asked a question of Board staff regarding the administrative penalties that could be issued to Registrants. Valli Goss provided clarification regarding the limit of administrative penalties of $2,000.00 per violation, as provided by the Arizona Revised Statutes. A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, to offer a Decision and Order (By Consent) with an administrative penalty of $100.00 for failure to timely respond and an additional $250.00 due to a repeat history of non-renewal. The motion passed 5 – 0. Giselle C. Alexander abstained from the vote.

Application for Reinstatement and Request for Registration of Firm Contreras, Ed Firm: Ed Contreras, CPA Partner: Ed Contreras Gary L. Freed asked whether Ed Contreras was required to retake the CPA exam, how the Respondent has been rehabilitated, and what were the primary allegations that resulted in his revocation. Monica L. Petersen provided that Mr. Contreras has already passed the CPA exam and that the Board has not yet discussed rehabilitation. Mr. Contreras then added that he was put on probation by the Board for his untimely response to a compliance affidavit. He provided further information regarding the history of the matter as well as his family situation. He also stated that his first probation was when he made an erroneous audit for Window Rock School District. A motion was made by Julie S. Klewer, seconded by LeRoy M. Gaintner, to reinstate Ed Contreras. The motion passed 4 – 1 - 0. Giselle C. Alexander abstained from the vote and Gary L. Freed opposed the motion. A motion was made by Julie S. Klewer, seconded by LeRoy M. Gaintner, to approve the firm registration for Ed Contreras, CPA. The motion passed 4 – 1. Giselle C. Alexander abstained from the vote and Gary L. Freed opposed the motion. Mr. Contreras thanked Board Staff for assisting him in the process.

Request for Peer Review Extension Easton, Richard H., CPA 4903-S LeRoy M. Gaintner asked where in the process of the review the Registrant is, so that the Board can provide an appropriate extension for him. Richard H. Easton then provided an update to the Board regarding his Peer Review matter. Mr. Easton responded that he was brand new to the process. He is working with CalCPA to revise the due date, based on the year-end date of the compilation.


Gary L. Freed asked when Mr. Easton started doing audit and reviews, and Mr. Easton responded that he started on May 22, 2015 with a year-end date of December 31, 2014. The review report was issued on June 26, 2015, which is a correction to the written documentation from the firm that stated the report was issued on June 26, 2016. Monica L. Petersen noted that she sees a different history through notes from Board Staff on the firm registration. Mr. Easton clarified that he mainly did compilations with no disclosures. A discussion amongst the Board Members ensued regarding the matter. Ms. Petersen noted that the Board can grant an extension for good cause and listed the reasons related to good cause. A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger, to grant an extension for peer review to December 31, 2016 for good cause, for a condition that the Board deems relevant, which is that this was the first time that the firm had engaged in a peer review, leading to its unfamiliarity with the process. The motion passed 4 – 1. Gary L. Freed opposed the motion. Gary L. Freed stated that when a CPA wants to branch out into a new practice area, they should not be making their problem the Board’s problem, due to their ignorance of the process, and that this is not a good cause reason that should be approved by the Board. Giselle C. Alexander abstained from the vote.

LEADERSHIP REPORT

Executive Director Update Budget Update Monica L. Petersen stated there was no budget update for this month. Agency Operations Update Monica L. Petersen stated that Mariela Jaramillo was leaving for law school and has therefore tendered her resignation. Ms. Petersen noted that Jessica Buckner has been promoted to Program Project Specialist 2, and provided a brief background on Jessica’s experience as a member of Board Staff. Ms. Petersen also informed the Board that the Board has been selected to be part of an agency audit by the Auditor General to discuss revenues. National Association of State Boards of Accountancy (NASBA) Regional Meeting Update Monica L. Petersen discussed the California Initiative with respect to mobility where the enforcement standards of all jurisdictions are examined. Ms. Petersen stated that California’s mobility law will not allow CPAs from a state to practice in their state if it determines that a state’s standards for CPAs do not meet their requirements. Gary L. Freed asked if the Board can negotiate with California. Ms. Petersen opined that she does not believe it is a negotiation process, but a rule-making process. Another topic that Ms. Petersen noted was the unlawful use of CGMA designation, and stated that NASBA’s legal counsel advised that using the designation of CGMA is in violation of CPA designation laws. NASBA encourages states to figure out a way to broaden CPA designation laws it if they wish to welcome CGMAs or similar designations. Lastly, Ms. Petersen noted that NASBA is investing in federal legislation that


presents a permanent solution to the U.S. Supreme Court decision regarding the North

Carolina Board of Dental Examiners. The Federal Trade Commission reasoned that the Board must be actively supervised by the State to claim state action immunity. The federal fix would be to extend this immunity directly to licensing boards and commissions. HB 2613 – Regulatory Boards; Licensing; Revisions Monica L. Petersen noted that this is the bill pursuant to which the Arizona Department of

Administration (ADOA) is creating a study committee to look at non-health occupational

Boards for possible consolidation. Ms. Petersen noted that she is invited to a stakeholder

meeting to be held on July 28, 2016.

Executive Order on Lobbying Contracts Monica L. Petersen stated that the Governor has issued an executive order that affects the Board’s ability to contracts lobbyist and explained the implications of such functions being performed in-house. Ms. Petersen noted that there are two ways that this situation could be addressed: (1) ask procurement for an exemption; and/or (2) review the budget to consider obtaining an additional full-time employee. A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to direct the Executive Director to request to ask procurement for an extension and, if denied, recommend that the budget include an additional full-time employee. The motion passed 5 – 0. Ms. Petersen informed the Board due to the due date of the budget request that both matters would need to be pursued in parallel. Giselle C. Alexander abstained from the vote.

Assistant Director – Regulation and Compliance Update Notifying LinkedIn of Unlawful Use of Designation Valli Goss noted that LinkedIn has a reporting process which allows the public to report allegedly erroneous or false information on LinkedIn profiles. A discussion amongst the Board Members, Board Staff, and AAG ensued regarding the matter and when such allegedly erroneous or false information should be reported to LinkedIn. No possible action was taken.

HB 2613 – Regulatory Boards; Licensing; Revisions Gary L. Freed asked Monica L. Petersen about the private consultants involved in the study group. Ms. Petersen stated that she is familiar with one of the two consultants hired, Elliott D. Pollack and Company. Information Regarding Who Can Sign Decisions and Orders under A.A.C. R4-1-114(A)(4) Valli Goss noted that a question has arisen regarding who can sign a Decision and Order (By Consent) on the Board’s behalf if the President is conflicted regarding a particular file. Ms. Goss clarified that the Board has a rule that specifically states that the Secretary would be the subsequent signer of such a document. Julie S. Klewer asked why the President is not allowed to sign a Decision and Order (By Consent) for cases he is conflicted in. Scott Donald, AAG, then clarified that this is the same reason as to why members who are conflicted on a file are not allowed to vote on them.


Assistant Director – Registration and Operations Update American Institute of Certified Public Accountants (AICPA)’s May 23, 2016 Exposure Draft Entitled “Proposed Changes to the AICPA Standards for Performing and Reporting on Peer Reviews” Jacki Hancock informed the Board that, on June 22, 2016, the Peer Review Oversight Advisory Committee reviewed and approved the proposed administrative changes in performing and reporting peer reviews as included in the AICPA’s Exposure Draft. Request for Clarification of June 13, 2016 Board Request Regarding Research Related to (1) Continuing Professional Education (CPE) Credits, and (2) the Quarter-to-Semester Hour Conversion Process by the Certification Committee for College Credits Jacki Hancock requested clarification regarding the matter. LeRoy M. Gaintner clarified his request relating to the conversion process by the Certification Committee for college credits. He stated that partial credit should reflect what the Board does with CPE of less than 4 hours. Monica L. Petersen stated that, ultimately, the Board may need to look into this matter through the rule-making process. A motion was made by LeRoy M. Gaintner, seconded by Layne Reid Simmons, to ask the Certification Committee to explain what their processes are for calculating credit hours, and to consider updates on the process in some fashion. The motion passed 6 – 0. Mr. Gaintner also stated that he would like to know what other states are doing in relation to the calculation of credit hours. He suggested that we continue to monitor that situation and keep it in mind. CPE Audits - Discuss the option for Board Staff to select a Registrant for a CPE audit if and when the validity of the submittal of CPE is reasonably in question. Jacki Hancock noted the Board already approved the CPE Committee’s recommendation that CPE audits include registrants that are identified in the CPE Overage Report. Discussion ensued among Board Members and Board Staff regarding the process of CPE audits. Layne Reid Simmons requested objective criteria be developed, such as taking 40 hours of CPE over the course of three days might be a concern, for example. Julie S. Klewer suggested that the selection criteria be free from bias. LeRoy M. Gaintner expressed concern that deficient CPE is a huge issue relating to protecting the public. Discretionary latitude is needed. William C. Heimerdinger explained that it sounds like it would not increase the number of random CPE audits, but that those selected for objective reasons would replace a certain amount that were random. Gary L. Freed stated that 15 random audits is not a statistically-valid sample. Still, it is important that the Board communicates that it does engage in audits. Monica L. Petersen stated that criteria can be developed that would assist the Board in creating an objective process. Layne Reid Simmons suggested that the CPE Advisory


Committee might be able to identify flags fairly quickly. Julie Klewer stated that the Board is generally supportive of the policy in general, but criteria needs to be as objective as possible without introducing bias into the process, and requests that staff work with the CPE Committee to develop that criteria. Systems Manager Update Collecting Firm Registration Late Fee from Sole Practitioners Richard Sietz provided a brief updated on the matter that there is no change in this status. Accountancy Regulatory Management System (ARMS) Status Richard Sietz gave an update on the developments to the new record-keeping system. Security Status A brief summary was provided to the Board by Richard Sietz regarding security and the services offered by the State of Arizona. Mr. Sietz also stated that ETS has applied all the security patches where they were needed to ensure proper security. Technology Updates Richard Seitz stated that Board Staff will be acquiring new equipment, software, and an updated operating system due to older technology phasing out. Monica L. Petersen noted that this update was planned for in the budget previously approved by the Board. Executive Director Report Agency Operations Update Monica L. Petersen stated that ADOA is asking the Board to complete an IT Strategic Plan. Discussion briefly ensued among Board Members and Board Staff.

ITEMS FOR REVIEW, DISCUSSION AND POSSIBLE ACTION INCLUDING DISCIPLINARY ACTION Failure to Respond and/or Failure to Timely Respond

Jenkins, Laura B. 10503-E Board Staff, Board Members, and the AAG introduced themselves to Laura Jenkins. Ms. Jenkins provided a brief summary of her situation to the Board and noted that her response to the CPE audit was sent one day late. Layne Reid Simmons asked if this was the first instance of untimeliness from Ms. Jenkins. Jacki Hancock provided further information, stating that the Registrant was late on her 2014 renewal form. She also noted in the affirmative that Registrant responded to an audit on July 6, 2016. Mrs. Jenkins provided an explanation for her late renewal form, relating to significant family- and health-related challenges. A motion was made by LeRoy M. Gaintner, seconded by Gary L. Freed, to accept the explanations of the Registrant and defer any action until the audit is completed. The motion passed 6 – 0. The Board recessed from 12:19 p.m. to 12:27 p.m.


COMMITTEE RECOMMENDATIONS – COMPLAINT/INITIAL ANALYSIS FILES Tax Advisory Committee File No. 2016.143 File No. 2016.144 File No. 2016.145 File No. 2016.146 File No. 2016.147 File No. 2016.148 File No. 2016.149 A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to accept the recommendations made by the Tax Committee to open File Nos. 2016.143, 2016.144, 2016.145, 2016.146, 2016.147, 2016.148, and 2016.149. The motion passed 5 - 0. Giselle C. Alexander abstained from the vote.

COMMITTEE RECOMMENDATIONS – PEER REVIEW

Peer Review Advisory Committee File No. 2016.158 Valli Goss noted that Addendum 3 to the Board packet contained a drafted Administrative Letter of Concern (LOC) with the Committee’s recommended changes and noted those modifications. William C. Heimerdinger stated that as he read through the items, they suggested. The level of deficiency appeared more significant and may require reconsideration. The Board then moved on to File Nos. 2016.156 and 2016.157.

File No. 2016.156 File No. 2016.157 A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to accept the LOC with the Committee’s recommended changes, as drafted. The motion passed 5 – 0. Giselle C. Alexander abstained from the vote.

File No. 2016.158

William C. Heimerdinger said that items 3 and item 4 in the LOC were notable and that item 5 seemed to be an issue. LeRoy M. Gaintner stated that his inclination is that the Board accept and issue the LOC. A discussion ensued regarding the matter. Monica L. Petersen noted that the Board does not have to remand items back to the Committee if it does not like the recommendation made by the Committee. Julie S. Klewer stated that sending matters back to the Committees is a gesture of courtesy. A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to approve the LOC, as drafted. The motion failed 2 – 3.


Giselle C. Alexander abstained from the vote, and William C. Heimerdinger, Gary L. Freed, and Layne Reid Simmons opposed the motion. A motion was made by Layne Reid Simmons, seconded by William C. Heimerdinger, to remand the file back to the Peer Review Oversight Advisory Committee to provide clarification regarding why the violations would not warrant consideration of other actions including requiring a peer review rather than an LOC. The motion passed 4 – 2. LeRoy M. Gaintner and Julie S. Klewer opposed the motion.

NOTICE OF UNLAWFUL USE OF THE CPA DESIGNATION AND REQUEST FOR LICENSE RENEWAL REFUND

File No. 2016.159 Christopher Rasmussen provided a brief summary regarding the agenda item. A motion was made by Gary L. Freed, seconded by Julie S. Klewer, to close the file but to not provide any refund due to lack of authority to do so. The motion passed 6 – 0.

REVIEW AND DISCUSSION OF COMPLAINT AGING REPORT

No comments were made at this time. ITEMS FOR REVIEW, DISCUSSION AND POSSIBLE ACTION INCLUDING DISCIPLINARY ACTION

Statutory and Arizona Administrative Code Guidance A motion was made by Gary L. Freed, seconded by William C. Heimerdinger, that the Board recognizes that there have been some changes in statuses over the last few years, but that it is the Board’s intention and belief that disability fee waivers should only be considered for Active certificates, but not for Inactive or Retired statuses. The motion passed 6 - 0.

Compliance/Non-Compliance with Decision and Order (By Consent) File No. 2015.058; Schlottman, Keith (8370-R); Schlottman CPA’s PLC (2244-L) After discussion, a motion was made by Gary L. Freed, seconded by William C. Heimerdinger, to direct the AAG to file a Complaint and Notice of Hearing for revocation of the firm’s registration for violation of A.R.S. § 32-741(A)(9) and R4-1-114(A)(3). The motion passed 5 – 0. Giselle C. Alexander abstained from the vote.

Violation of Suspension Order File No. 2016.097 Valli Goss provided modifications to the draft Decision and Order (By Consent). A motion was made by LeRoy M. Gaintner, seconded by Gary L. Freed, to open the investigation file and approve the Decision and Order (By Consent) as amended. The motion passed 5 – 0.


Giselle C. Alexander abstained from the vote.

Application for Certification by Exam/Grade Transfer, Recommended Denial by Certification Committee Fortune, Scott A motion was made by Gary L. Freed, seconded by Julie S. Klewer, to accept the

Certification Committee’s original recommendation for denial and deny the application. The

motion passed 6 – 0. Following additional discussion regarding differences between the

applications, especially relating to Ms. Alicia Williams Young, Mr. Freed withdrew his

motion. Separate motions were then made for each of the three certification applications.

Fortune, Scott A motion was made by Gary L. Freed, seconded by Julie S. Klewer, to accept the


motion passed 6 – 0.

Treon, Christopher A motion was made by Gary L. Freed, seconded by Julie S. Klewer, to accept the



William C. Heimerdinger was conflicted and recused himself from the vote.

Young, Alicia Williams LeRoy M. Gaintner stated that the issue is whether or not a law course can qualify as accounting credits. Further, Mr. Gaintner stated that he understood that the Certification Committee already looked at the matter again. Mr. Gaintner stated that he believes this shouldn’t be denied. A discussion ensued regarding whether or not law courses should count as accounting courses. Giselle C. Alexander commented that she used some of her tax law courses as CPA education, submitting it on the basis that she did some accounting work. Not all courses with the title of tax law did not meet the criteria for accounting courses in her mind. Julie S. Klewer stated that the Board had already remanded this matter back to the Certification Committee, but received back the same recommendation. A motion was made by Gary L. Freed, seconded by Julie S. Klewer, to accept the



LeRoy M. Gaintner opposed the motion.

Request for Inactive Status Bainum, Kerrie 9657-E Bunderson, Michael C. 8964-E Chen, Szu-Ying 13784-R Egan, Christopher Gatewood 6889-E Kirsch, Randall Lawrence 5535-E


Paulsen, Brenda 9493-E Ray, David 13390-E Sauciuc, Ashley 16872-E Sigurdsson, Stefan 14392-E Thompson, Paul A. 11981-R A motion was made by Julie S. Klewer, seconded by Gary L. Freed, to approve the 10

requests for inactive status. The motion passed 6 – 0.

Armstrong, Linda R. 14917-E Gary L. Freed provided a brief background of the matter, and stated that the Registrant teaches online classes and assists students. Mr. Freed further stated that teaching accounting does not really mean practicing public accounting, but one can lump it in the consulting area. Discussion amongst the Board Members and Board Staff ensued regarding the matter of whether teaching accounting courses is equivalent to consultation. The Board was informed by Board staff that the Law Review Committee recently stated that teaching is not considered consultation. Additional discussion among the Board showed differences in statements as to whether or not the registrant taught classes. Monica L. Petersen shared the definition of consulting services as including “services that require the use of technical skills, education, observation, experience and knowledge to develop an analytical approach to process and to present findings, conclusions or recommendations” and that teaching does not fit into that definition. A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to approve the

request for Inactive status. The motion passed 5 – 0.


Farrell, Karen Ruby 4503-E Gary L. Freed stated that the Registrant is doing accounting, has a real estate entity, is doing sales and brokerage, and provides monthly accounting reports to the public. A discussion ensued amongst Board members and staff regarding the Registrant’s engagements to the public as it relates to public accounting. William C. Heimerdinger stated that he had made the same observation. A motion was made by Gary L. Freed, seconded by William C. Heimerdinger, to deny the request for Inactive status and to provide the Registrant 60 days to obtain the appropriate CPE to comply with CPE requirements in Active status. The motion passed 5 - 0. Giselle C. Alexander abstained from the vote. Rescind June 13, 2016 Board Motion that Approved the Following Applicant’s Retired Status Wolfe, Nancy S. Jacki Hancock explained that the Registrant was inadvertently placed on the agenda two times for different items, once for Inactive status and once for Retired status, and clarified that the Registrant’s intent was to only have Inactive status. A motion was made by Julie S. Klewer, seconded by William C. Heimerdinger, to rescind the


Board’s motion to approve the Registrant’s application for Retired status. The motion passed 5 – 0. Giselle C. Alexander abstained from the vote. Request for a Continuing Professional Education (CPE) Waiver/Extension/Exemption and/or Fee Waiver Charvoz, Charles Louis 3553-R After discussion, a motion was made by LeRoy M. Gaintner, seconded by Layne Reid Simmons, that the Registrant's request for a CPE extension be denied for failure to show good cause, and that the Registrant be offered a Decision and Order (By Consent) for suspension for one (1) year for non-compliance with CPE requirements, with possible early termination upon completion of the required CPE; and, if not accepted by the Registrant within thirty (30) days, for the Board to proceed with a formal hearing. Furthermore, the Decision and Order (By Consent) will contain an administrative penalty of $100.00 for not submitting all required CPE by the renewal due date. The motion passed 4 – 0. Giselle C. Alexander abstained from the vote and Julie S. Klewer was conflicted and recused herself from the vote. Gunkel, Kelly Shea 13591-E A motion was made by Gary L. Freed, seconded by Julie S. Klewer, to approve extension request until October 31, 2016 for good cause, due to illness. The motion passed 6 – 0. Little, Donna M. 17187-E A motion was made by Gary L. Freed, seconded by Layne Reid Simmons, that the Registrant's request for a CPE extension be denied for failure to show good cause, and that the Registrant be offered a Decision and Order (By Consent) for suspension for one (1) year for non-compliance with CPE requirements, with possible early termination upon completion of the required CPE; and, if not accepted by the Registrant within thirty (30) days, for the Board to proceed with a formal hearing. Furthermore, the Decision and Order (By Consent) will contain an administrative penalty of $100.00 for not submitting all required CPE by the renewal due date. The motion passed 4 – 1. Giselle C. Alexander abstained from the vote and William C. Heimerdinger opposed the motion. Compliance/Non-Compliance with CPE Audit Requirements Hansen, Leigh M. 12334-E A motion was made by Gary L. Freed, seconded by Layne Reid Simmons, that the Registrant be offered a Decision and Order (By Consent) for suspension for one (1) year for non-compliance with CPE requirements, with possible early termination upon completion of the required CPE; and, if not accepted by the Registrant within thirty (30) days, for the Board to proceed with a formal hearing. Furthermore, the Decision and Order (By Consent) will contain an administrative penalty of $100.00. The motion passed 5 – 0.


Giselle C. Alexander abstained from the vote. Ray, Theodore R. 8395-E A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to accept the Registrant’s new CPE and to vacate the suspension. Motion passed 5 – 0.


Rosenfield, Richard S. 5019-R A motion was made by Gary L. Freed, seconded by Julie S. Klewer, that the Registrant be offered a Decision and Order (By Consent) for suspension for one (1) year for non-compliance with CPE requirements, with possible early termination upon completion of the required CPE; and, if not accepted by the Registrant within thirty (30) days, for the Board to proceed with a formal hearing. Furthermore, the Decision and Order (By Consent) will contain an administrative penalty of $100.00. The motion passed 5 – 0. Giselle C. Alexander abstained from the vote.

Ryan, John David 9966-E A motion was made by Julie S. Klewer, seconded by Gary L. Freed, to accept the budgeting courses as meeting accounting requirements. The motion passed 6 – 0. A discussion amongst the Board ensued regarding the aforementioned budgeting course, so as to offer direction to the CPE Advisory Committee. LeRoy M. Gaintner stated that budgeting is akin to cost accounting and ought to be considered as accounting, in general. Julie S. Klewer further stated that the particular presented course showed that the entire course was budgeting, which would relate to accounting. However, if a syllabus only attributes a couple of chapters to budgeting in conjunction with a lot of general administrative concepts, then the course might not be considered as accounting. Failure to Respond and/or Failure to Timely Respond Kane, Larry Michael 4200-E A motion was made by Gary L. Freed, seconded by Julie S. Klewer, that the Board direct the AAG to file a complaint and notice of hearing for revocation for failure to respond. The motion passed 5 – 0. Giselle C. Alexander abstained from the vote. Muratore, Charles J. 7169-E LeRoy M. Gaintner noted the Registrant’s situation. Gary L. Freed stated that he thought that a penalty should be applied. Julie S. Klewer wanted to clarify how Board staff calculated its $700.00 penalty suggestion. Board Staff explained how the suggested penalty was calculated, which is based on previous Board history of calculating $100 per week, or part of a week, for the period that the registrant is late.


A motion was made by Gary L. Freed, seconded by Julie S. Klewer, that an administrative penalty of $700.00 be imposed for failure to timely respond, pursuant to R4-1-455.03(F) and A.R.S. § 32-741(A)(9). The motion passed 4 – 1. Giselle C. Alexander abstained from the vote and LeRoy M. Gaintner opposed the motion. Whipple, Brett O’Neil 9564-R A motion was made by Gary L. Freed, seconded by Julie S. Klewer, that the Board direct the AAG to file a complaint and notice of hearing for revocation for failure to respond. The motion passed 5 – 0. Giselle C. Alexander abstained from the vote. Compliance/Non-Compliance with CPE Requirements Maniuszko, Keith C. 13711-E A motion was made by Gary L. Freed, seconded by Julie S. Klewer, that the Registrant be offered a Decision and Order (By Consent) for suspension for 1 year for non-compliance with CPE requirements, with possible early termination upon completion of the required CPE; and, if not accepted by the Registrant within 30 days, for the Board to proceed with a formal hearing. Furthermore, the Decision and Order (By Consent) will contain an administrative penalty of $100.00. The motion passed 5 – 0. Giselle C. Alexander abstained from the vote. Recommendation for CPE Audit Holzhauer, Robert E. 9433-R Jacki Hancock provided a brief summary of the matter. A motion was made by LeRoy M. Gaintner, seconded by Layne Reid Simmons, that the Board request that the Registrant submit to a CPE audit, as the Board recognizes that there are potential issues related to the reporting of his CPE. The motion passed 6 – 0. Request for Peer Review Extension Neslen, Michael, CPA, P.C. 1132-C After discussion, a motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, that the Board approve the request for peer review extension for one year for good cause, for a condition that the Board deems relevant, which is that this was the first time that the firm had engaged in a peer review, leading to its unfamiliarity with the process.. The motion passed 4 – 1. Giselle C. Alexander abstained from the vote and Gary L. Freed opposed the motion. Gary L. Freed noted for the record that the Board is being too lenient. Julie S. Klewer responded that the Board is trying to be sensitive and reasonable to the issue, because this was a first-time situation. Gary L. Freed pointed out that when people are trained


as accountants, they must be competent to engage in the field. He also added that the Arizona Society of CPAs may be able to remind people that, if they are getting into a new area, they should contemplate understanding the process. A discussion ensued regarding Registrants providing new services. Compliance/Non-Compliance with Firm Registration Requirements DBD Consulting Company, LTD 1281 G & S Certified Public Accountant, LLC 3019 MSN, CPA, PC 2642 O'Shea Accounting Services, PLC 3180 Remote Accounting, PLC 3010 Roger Heywood, PLC 3522 LeRoy M. Gaintner noted the helpfulness of the Staff Feedback Sheets

A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, that the Registrants (firms) be offered a Decision and Order (By Consent) for revocation, pursuant to A.R.S. § 32-742(A) for failure to meet the requisite firm qualifications, pursuant to A.R.S. § 32- 731(A)(1), whereby at least one partner shall be a CPA in good standing. If the Registrant (firm), does not consent within 30 days of the date of the offering of the Decision and Order (By Consent), then the matter should automatically proceed to a complaint and notice of hearing for revocation. The motion passed 5 – 0.


Review, Discussion, and Possible Action Regarding Committee Membership Accounting and Auditing Advisory Committee Brian R. Lee, CPA Tax Advisory Committee David R. Baldwin, CPA A motion was made by Gary L. Freed, seconded by LeRoy M. Gaintner, to appoint the aforementioned individuals to their respective Committees for a 5-year term. The motion passed 6 – 0.

CONSENT AGENDA

Recommended for Registration of Firms for the Following Applicants: M. Katie Lohman, CPA Partner: M. Katie Lohman 17906-E Layne Reid Simmons noted that the Registrant agreed to submit her new name. There was no action taken for this agenda item. Recommended for Reissuance of Certificate Because of Name Change: Issued as: M. Katie Lohman 17906-E ; New Name: M. Katie Helle A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer, to approve the change of name. The motion passed 6 – 0.


IDENTIFICATION OF FUTURE MEETING AGENDA ITEMS

Julie S. Klewer asked for updates from the Law Review Committee to examine if there is something not as strong as revocation to allow for firms to get back into good standing with the Board.

A discussion amongst the Board Members and Board Staff also ensued regarding Law Review Committee exploring the CGMA designation.

Further, Monica L. Petersen also stated the possibility of looking into tightening the one-year period between suspension and expiration of registrations, specifically relating to suspension for non-registration and suspension for non-compliance with CPE. The idea of this discussion is to lessen the time period so as to limit exposure to the public. Layne Reid Simmons noted that it can be in a future agenda item, but it does not have to be at the annual meeting.

ADJOURNMENT

A motion to adjourn was made by William C. Heimerdinger, seconded by Julie S. Klewer, and the motion passed 6 – 0. The meeting adjourned at 2:14 p.m.

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