july 2013 ascpa nl

July 2013

PresidentDouglas W. Coy

Executive DirectorBruce C. Alt

Published Monthly ByTHE ARKANSAS

SOCIETY OFCERTIFIED

PUBLICACCOUNTANTS

11300 Executive CenterLittle Rock,

Arkansas 72211-4352Telephone

1-800-482-8739(In Arkansas)

(501) 664-8739Fax (501) 664-8320

www.arcpa.org

In This Issue

• AnnualConvention . . . . . .2

• Chapters . . . . . . . . .3• Classifieds . . . . . .28• CPE . . . . . . . . . .4-7• Emerging CPAs . .8• Financial

Literacy . . . . .10-11• Leadership . . .12-13• Legislation . . . . . .14• Mac Angel Memorial

Golf Tournament .16• Member

Services . . . . .17-19• Membership . . . .20• Peer Review . .22-23• Practice

Management . . . . .24• Tax . . . . . . . . .25-27

Arkansas Society of Certified Public AccountantsNEWSLETTER

Chaired by Chris Flynt, CPA and Partner,Daniels & Flynt in Bentonville, Arkansas, theEmerging CPAs Committee is for CPAs that are40 years of age or younger and/or anyone thathas passed the CPA exam within the past tenyears. These enthusiastic members tackleprojects and provide strategic leadership to leadthe profession and Society forward to a brightfuture.

➠ ASCPA’s Emerging CPAs Conference, a fullday of CPE and professional networking, will beheld at the ASCPA Conference Center in LittleRock on Friday, October 25.➠ This year’s Emerging CPAs Conference willfeature a new event: An “Emerging Evening” onThursday night, October 24 for all conferenceattendees and ASCPA members. Generouslysponsored by Frost, PLLC in Little Rock andFayetteville, this brand new event will bringmembers together for a fun, casual evening ofprofessional fellowship and networking.➠ Our Emerging CPAs will help host the annual“New CPA Reception” on Saturday, June 15 at theState Capitol following the State Board of PublicAccountancy CPA Certificate Ceremony. Thisspecial event honors our new CPAs in Arkansas.➠ Special 2014 R & R! Lift your post-tax seasonspirits and rejuvenate at the Emerging CPAs2014 Post Tax Grind Crawfish Boil! This brandnew event will be held on Thursday, May 8 at theASCPA Conference Center in Little Rock. Markyour calendars and plan to have fun!➠ Thirsty Thursdays, held the 3rd Thursday nightof every month, are a relaxing way to meetEmerging CPAs in central Arkansas and make newprofessional contacts. Contact Joe Rugger, theCommittee’s “Thirsty Officer” at [email protected] for a current schedule of venues.

For more information contact:Chris Flynt, Chairman [email protected]://www.arcpa.org/Content/young_cpa_committee.aspx.

EmergingCPAs

Focus on theFuture

Jonathan VanHorn, Joe Rugger, Beth Knipscheer,and Marie Gieringer

Congressman Tim Griffin visited with ASCPA's delegation: (from right)President Douglas Coy, Jim Petty, Bill Booker, Tim Griffin, and Bruce Alt.

CPAs Go to Capitol Hill to Discuss Tax Reform and Important Legislation

More than 400 AICPA leadersmet with federal legislators onCapitol Hill on May 21 to discussissues important to the profession,business and the public, such astax reform and legislation regardingtax due dates, mobile workforceand municipal advisors. Regardingtax reform, AICPA President andCEO Barry C. Melancon, CPA,CGMA, said, "Our goal, reflected inour recent testimony and commentletters, is a system that is perceivedas balanced, fair to all, administr-able, economically efficient, trans-parent, and neutral in its effect oneconomic activity." (See page 26)

Join us for the 2013 Annual Convention at the WinthropRockefeller Institute on Petit Jean Mountain in Morrilton,Arkansas. The Institute offers a variety of indoor and outdoorrecreational activities and is a great setting with attractions foreveryone to enjoy!

This year’s Annual Conventionwelcomes back Reginald J.Henry, Chief Information Officer-American Society of AssociationExecutives (ASAE) and theCenter for Association Leader-ship who will deliver a presenta-tion for two CPE Credit Hours.

Reggie Henry joined ASAEin November of 1994. Hisresponsibilities are to implement“exemplary” systems at ASAEthat can serve as a model to therest of the association communityand to “ratchet-up” the use andunderstanding of technology

among ASAE members. He has been working with and/or fornon-profit organizations since 1985.

Mr. Henry speaks regularly on technology and strategyissues. He holds a B.S. in Economics and Computer Sciencefrom Georgetown University and serves on the TechnologyAdvisory Board of the American Academy of OrthopedicSurgeons Board and the Curriculum Committee for the Institutefor Organization Management (U.S. Chamber of Commerce).

Reggie Henry spoke at the 2011 ASCPA AnnualConvention in Arlington, TX and received very favorableevaluation scores. We are glad to welcome him back!

Additional Annual Convention Highlights

• A presentation by William F. Ezzell, CPA retired fromDeloitte, LLP and past chair of the American Institute of CPAs(AICPA) from 2002-2003. Bill is Co-Leader of the PathwaysCommission, which was formed by the American AccountingAssociation (AAA) and the AICPA to study and providerecommendations on the future structure of higher educationfor the accounting profession. His presentation will cover theCommission’s recent 2012 report, implementation efforts,recommendations for enhancing accounting education, and thelinkage between academia and practice.

• Annual Awards Banquet• Past Presidents’ Breakfast• Annual Business Meeting• Officers and Directors Meeting

Two Optional Technical Sessions for 4 CPE CreditHours each will be offered on Thursday, September 19

• Understanding COSO Internal Controls, presented byJoseph A. Sanford – 4 CPE Credit Hours

• Hottest Tax Planning Developments, presented by JosephA. Sanford – 4 CPE Credit Hours

Watch for your registration brochure coming soon!

Or visit:www.arcpa.org/Public/Catalog/CourseDetails.aspx?

courseID=13AC

ANNUAL CONVENTION

2

Join Us at the 2013 ASCPA Annual ConventionWinthrop Rockefeller Institute

Petit Jean MountainSeptember 19-21, 2013

Reginald J. Henry

Winthrop Rockefeller Institute

ASCPA Newsletter: July, 2013

CPA Night at the BallparkThe ASCPA and the Central Chapter of CPAs held a family-friendly Night at the Ballpark on Monday, May 13, 2013. All

ASCPA Central Chapter members and their families were invited to watch the Arkansas Travelers baseball team play theNorthwest Arkansas Naturals at Dickey-Stephens Park in North Little Rock. Central Chapter members and their families enjoyedan all-American cookout of hamburgers and hotdogs under the covered picnic area, and received free admission to watch thegame. Weather was sunny and perfect for the crowd of 155 people.

Thank you to the Central Chapter of CPAs, who coordinated this event!

CHAPTERS

3 ASCPA Newsletter: July, 2013

CPE

4

Professional Educationfor CPAs on the Move

7:00 - 8:40 a.m. • 2 Hours of CPE$30 Member Fee

Want to get out of the office, earn CPE credits and stillnot lose a full day of work?

The ASCPA will be hosting several two-hour breakfastmeetings for CPAs. We hope our members find this to be theperfect way to earn credit while continuously staying currenton upcoming trends, timely issues happening within theprofession, and an opportunity to network with fellowcolleagues.

The morning programs hosted by ASCPA will include acontinental breakfast and CPE sessions related to theaccounting field.

Daybreak Development Schedule

➸ July 10 “Defining a Global Fiduciary Standard ofExcellence” Presented by Barry M. Corkern, Barry M. Corkern& Company, Inc.

➸ July 17 “Go the Extra Mile: Building a Service OrientedBusiness Culture” Presented by Stephanie Shine, Robert HalfFinance & Accounting

➸ August 7 “Update on Corporate and Partnership Taxation”Presented by Robert T. Smith, Friday, Eldredge & Clark

➸ September 4 “Compilation and Review Essentials”Presented by William C. Miller, L. Cotton Thomas & Company

➸ October 9 “But Saint Peter, I Was Just Being a CPA(Ethics)” Presented by Charles C. Owen, Gil Ragon OwenAttorneys

➸ November 13 “Follow the Yellow Book Road”Presented by Paula M. Kinnard, Legislative Audit

➸ December 4 “401(k): A Retirement Plan Option”Presented by Laura Ward, Paychex

Register today at www.arcpa.org

DaybreakDevelopment

Jerry E. Spratt Announced2012 AICPA OutstandingDiscussion Leader Award

We are happy to announce that Jerry E. Spratt was one ofthe recipients of the 2012 AICPA Outstanding DiscussionLeader Award. Jerry has also been the ASCPA’s C.M. “Mac”Angel Outstanding Discussion Leader of the Year for 2005 &2010.

We are very thankful for Jerry’s hard work, dedication andflexibility to make every program a success. It certainly ischallenging to consistently deliver high quality learningexperiences to many different audiences all over the country.Please join us in congratulating Jerry!


5

CPE

Education Foundation webcasts allow leading experts to deliver the hottest issues straight to your desktop. It’s theeasiest, fastest, and most convenient way to stay current on the topics that are critical to your success.

In partnership with the CalCPA Education Foundation, ASCPA members are eligible to register for webcasts atCalCPE member prices!

Registration is easy as 1, 2, 3!

✓ 1. Go to www.arcpa.org and click on webcasts

✓ 2. Make your selections and add to cart

✓ 3. Register as a guest, using the STATECE promo code.

www.arcpa.org

EARN CPE WITHOUT LEAVING THE OFFICE

Thirty-Third Annual Accounting andAuditing Conference a Success!

Over 120 people gathered for the Annual Accounting and AuditingConference held on May 29-30, 2013, at the Embassy Suites Spa andConvention Center in Rogers, Arkansas. A first for ASCPA, this conferencefeatured electronic materials. Many CPAs found it convenient and valuableto download the conference materials to their laptop computer or tabletrather than tote around bulky binders or packets. The conference featuredspeakers on topics such as Accounting and Auditing Latest Developments,Real World Business Ethics, Nonprofit Organizations, FundamentalIncome Tax Accounting, Clarifying the Quality Control Standard, ATMMachines & Other Misuses of the English Language, The Yellow BookRoad, Sales and Use Tax, What to do When the Feds Come Knocking at

Your Door, Where Did the Money Go, Living a Life Worth Living, The Latest on OCBOA for State and Local Governments, InternalControl and Risk Assessment, Popular and Electronic Reporting, and Over the Fence.

Thank you to the Chairman of the conference Barbara J. Widner and to all of the committee – the conference was a big success!

Conference Attendees

Jacob Wells talks about ATM Machines andOther Misuses of the English Language

Tony Hilliard speaks on Sales & Use Tax Billy Morehead discusses Internal Controland Risk Assessment


6

CPE

JULY

17 MS FMCS Financial Managers Career Workshop 8 Little Rock ASCPA Joseph M. Rugger $325 ** $295 ** $225 ** $195 **Conference Center

18 AA CAAT Construction Contractors: Accounting, Auditing & Tax 8 Little Rock ASCPA Provided by AICPA $345 ** $315 ** $245 ** $215 ** Conference Center

19 AA CCAI Construction Contractors Advanced Issues 8 Little Rock ASCPA Provided by AICPA $345 ** $315 ** $245 ** $215 ** Conference Center

AUGUST

12 AA ICDAD Internal Controls for Financial Managers, Accountants, 8 Springdale Provided by AICPA $375 $345 $275 $245 and Auditors Holiday Inn

13 AA EXAA Accounting and Auditing with Excel 8 Springdale Joseph A. Sanford $365 $335 $265 $235Holiday Inn

14-15 AA AST2 Staff Training - Level II 16 Little Rock ASCPA Thomas Newell $665 $630 $465 $435Conference Center

15 AA FAUR FASB Annual Update and Review: Critical 8 Little Rock ASCPA John Laschenski $345 $315 $245 $215Developments for All CPAs Conference Center

16 MS MBAD MBA in a Day! 8 Little Rock ASCPA John Laschenski $345 $315 $245 $215Conference Center

26 TX TRBB Individual Tax Review II 8 El Dorado Tony Hilliard $375 ** $345 ** $275 ** $245 **Conference Center

SEPTEMBER

6 AA URRF Update and Review of Risk Factors, Red Flags 8 Little Rock ASCPA Jerry E. Spratt $345 $315 $245 $215and Characteristics of Occupational Fraud Conference Center

19-21 OT AC ASCPA Annual Convention 4 Morrilton, Winthrop Provided by ASCPA $225 $225 $225 $225Rockefeller InstitutePetit Jean Mountain

19 AA CL4ICDAD Understanding COSO Internal Controls 4 Morrilton, Winthrop Joseph A. Sanford $200 $185 $145 $135(8:30am - 12:00pm) Rockefeller Institute

Petit Jean Mountain19 TX CL4HOT Hottest Tax Planning Developments 4 Morrilton, Winthrop Joseph A. Sanford $200 $185 $145 $135

(1:00pm - 4:30pm) Rockefeller InstitutePetit Jean Mountain

23 TX ADTS Advanced Tax Structures: Using Tiered Partnerships, 8 Little Rock ASCPA Charles C. Owen $345 $315 $245 $215Multiple Corporations, Series LLCs & Disregarded Entities Conference Center

24 TX HMBI Surgent McCoy’s Handbook for Mastering Basis, 8 Little Rock ASCPA Charles C. Owen $345 $315 $245 $215Distribution, and Loss Limitation Issues for Conference CenterS-Corporations, LLCs and Partnerships

26 TX DRMM Determining How Much Money You Need to Retire, 8 Little Rock ASCPA David Hultstrom $345 $315 $245 $215and Tax Ideas & Money Management in Retirement Conference Center

27 TX SSRB Social Security, Medicare, and Prescription Drug 8 Little Rock ASCPA Charles C. Owen $345 $315 $245 $215Retirement Benefits: What Every Baby Boomer Needs Conference Centerto Know Now

30 CP EBP Excel Best Practices 8 Little Rock ASCPA Provided by $345 $315 $245 $215Conference Center K2 Enterprises

OCTOBER

1 CP QBA QuickBooks for Accountants 8 Little Rock ASCPA Provided by $345 $315 $245 $215Conference Center K2 Enterprises

2 CP TMO NEW! The Mobile Office 8 Little Rock ASCPA Provided by $345 $315 $245 $215Conference Center K2 Enterprises

3-4 AA FRAUD Fraud Conference (WEBCAST) 16 Little Rock ASCPA Provided by $665 $630 $465 $435Conference Center Jerry Spratt

17-18 MS ICC-33 Thirty-Third Annual Industry, Commerce 16 Little Rock ASCPA Provided by Industry, $440 $410 $240 $210and Banking Conference (WEBCAST) Conference Center Commerce, & Banking

Conference Committee21 TX DIRS Handling IRS Disputes 8 Fort Smith, Beall Joseph A. Sanford $365 ** $335 ** $265 ** $235 **

Barclay Conf. Center21 AA SNPR Upcoming Peer Review: Is Your Firm Ready 8 Little Rock ASCPA J. Mason Andres $325 ** $295 ** $225 ** $195 **

Conference Center22 TX SCORP S-Corporations Fundamentals 8 Fort Smith, Beall Joseph A. Sanford $365 ** $335 ** $265 ** $235 **

Barclay Conf. Center22 TX ACAU Annual Accounting and Auditing Update 8 Jonesboro Provided by $375 $345 $275 $245

Hilton Garden Inn Surgent McCoy23 AA IEFP The Best Income Tax, Estate Tax, and Financial 8 Jonesboro Provided by $375 $345 $275 $245

Planning Ideas of 2013 Hilton Garden Inn Surgent McCoyContinued on page 7

Field Early Member EarlyOf CPE Course Discounted Discounted Discounted

Date Study Acronym Course Title Credit Location Speaker Fee Course Fee Fee Member Fee

2013 CPE Schedule of Courses & Conferences, July through October


7

CPE

(Please Copy Registration Form as Needed)

Name________________________________________________________ Certificate Number____________________________

Firm Name_______________________________________________________________________________________________

Phone Number ______________________ Fax Number ______________________ E-Mail _______ ______________________

Address/City/State/Zip _____________________________________________________________________________________

Are you a member of your state society? ______ Yes ______ No If Yes, What State?______________________________

Are you a member of AICPA? ______ Yes ______ No (AICPA Members will receive a $30 per course discount on courses denoted with an **)

If you have a specific need contact the CPE Department at least one week prior to the course orfor questions at any time call 501-664-8739 or 800-482-8739

Course Title or Acronym Date Fee

•_______________________________________________________________________________________________________

•_______________________________________________________________________________________________________

•_______________________________________________________________________________________________________

Less AICPA Discount $ __________________(AICPA Discount is $30 off of the course fee listed and is ONLY for AICPA members and ONLY on those courses denoted with an **)

Total Amount Enclosed $ __________________

Payment Method: ( ) Company Check ( ) Personal Check ( ) AMEX ( ) Visa ( ) MasterCard

CARD NUMBER: ___________________________________________________ EXPIRATION DATE ___________________

MAIL REGISTRATION WITH PAYMENT TO: ASCPA, 11300 Executive Center Drive, Little Rock, AR 72211-4352WITH CREDIT CARD INFORMATION, REGISTRATION IS ALSO ACCEPTED BY:

FAX: (501) 664-8320 WEB SITE: www.arcpa.org PHONE: (501) 664-8739 or (800) 482-8739 IN ARKANSAS

Cancellation Policy: Full refund, less a $10.00 service charge will be made if notice of cancellation is received at least 60 days prior to the courseor conference date. Full refund, less a $25.00 service charge will be made if notice of cancellation is received between 10 and 60 days prior to thecourse or conference date. NO REFUND WILL BE MADE IF NOTICE OF CANCELLATION IS RECEIVE LESS THAN 10 DAYS PRIOR TO THECOURSE OR CONFERENCE DATE. Registrants may not transfer from one course to another.

Full Payment Must Accompany the Registration Form

COURSE & CONFERENCE REGISTRATION FORM

OCTOBER Continued

23 AA/GOV A133 OMB A-133 from A to Z 8 Springdale Provided by $375 $345 $275 $245Holiday Inn Surgent McCoy

24 AA/GOV ANFP Auditing Not-for-Profit Entities: Superior 8 Springdale Provided by $375 $345 $275 $245Holiday Inn Surgent McCoy

25 OT YCPA Emerging CPAs Conference (WEBCAST) 8 Little Rock ASCPA Provided by the $ 50 $ 50 $ 50 $ 50 Conference Center Emerging CPAs Committee

28 TX CGPT The Complete Guide to Payroll Taxes and 1099 8 Little Rock ASCPA Provided by $345 $315 $245 $215Issues Conference Center Surgent McCoy

29 TX TPGS Surgent McCoy’s 2013 Annual Tax Planning Guide for 8 Little Rock ASCPA Provided by $345 $315 $245 $215S-Corporations, Partnerships and LLCs Conference Center Surgent McCoy

30 AA RRNS Revenue Recognition 8 Little Rock ASCPA Provided by AICPA $345 ** $315 ** $245 ** $215 **Conference Center

30- TX FTU-2 day 2-Day Federal Income Tax Update for the Year 16 Little Rock Vernon C. Hoven and $720 $690 $520 $490Nov. 1 2013-14; Individual, Business and Corporate Hilton Metro Center Ron R. Robersen

Field Early Member EarlyOf CPE Course Discounted Discounted Discounted

Date Study Acronym Course Title Credit Location Speaker Fee Course Fee Fee Member Fee

All courses begin at 8:30 a.m. and end at 4:30 p.m. unless otherwise noted. For conference times refer to conference brochures.** Denotes American Institute of Certified Public Accountants’ Course, AICPA Members May Deduct $30 from the Course Registration Fee.

(8 hours AICPA courses only)Denotes Webcast Special Needs? Please contact the Society office at (501) 664-8739.

See Registration Form for Courses and Conferences below.


8

EMERGING CPASASCPA Student Career Fair

Wednesday, September 25, 20134:00 p.m. - 6:00 p.m.

Clarion Hotel Medical Center(formerly Hilton)

925 South University AvenueLittle Rock, Arkansas 72204

Send your recruiters to scout out the best and brightestaccounting students at this event! Each participating firmand company will be allowed a maximum of fourrepresentatives, and will be supplied a table to share theirmaterials and information about how students can have anexciting career in accounting at their firm or company. Thisevent will be a perfect opportunity for firms and companiesto meet and recruit motivated accounting students.

Post baccalaureate students, as well as junior andsenior level accounting majors at four-year public andprivate colleges and universities are invited to attend.Students will meet and network with participatingrepresentatives and provide their resumes.

This event is free. Your registration will include: Studentattendee list, your firm or company profile listing on theASCPA website as a Career Fair participant, a drapeddisplay table, beverages and light snacks during the event,and participation for up to four representatives from yourfirm or company.

Please return the form below to the ASCPA no later thanSeptember 17, 2013.

ASCPA STUDENT CAREER FAIRWEDNESDAY, SEPTEMBER 25, 2013

______ Yes, Our Firm or Company is interested inparticipating in the Student Career Fair.

Firm/Organization: _______________________________

Contact Person: _________________________________(may be different than representatives attending)

Address: ______________________________________

City: __________________________________________

Contact Phone: _________________________________

Contact E-mail: _________________________________

Website: ______________________________________

Number of Electrical Outlets Required: _______________

Representatives Names Who are Attending:

1. ____________________________________________

2. ____________________________________________

3. ____________________________________________

4. ____________________________________________

Please provide your firm or companies’ profile in500 words or less;

(To be posted on the ASCPA Website for students toreview prior to the event)

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

Please note the cancellation policy:

If a firm or company is unable to attend, they shouldnotify the ASCPA office as soon as possible. The firmor company may then supply the ASCPA with thedisplay materials, handouts, giveaways, etc. that theywish to be made available at the event.

Please return the form no later than September 17, 2013, to:Arkansas Society of CPAs

Attn: Robin Harris11300 Executive Center DriveLittle Rock, AR 72211-4352

Fax (501) 664-8320

For more information, contact:Robin Harris, e-mail [email protected] or

call (501) 664-8739 or 1-800-482-8739 in AR


10

FINANCIAL LITERACY

Members Make KIDS COUNT PresentationsLouAnna Gaines, Arkansas Division of Legislative

Audit, made a Kids Count presentation on April 26 to herson William’s class at East Pointe Elementary inGreenwood. There were twenty-three students in the classand they were very excited to receive piggy banks. Onestudent said she would save some of her money forcollege, one would help the homeless, but most would buytoys and video games.

LouAnna Gaines also gave a Kids Count presentationto Cub Scout Pack 2054 of Greenwood on April 25 toapproximately 15 boys. They were very appreciative of thepiggy banks and the Pack discussed saving money topurchase big items like a phone or bicycle.

Laura Drown, of Cogswell Motors Inc. in Russellville,made a Kids Count presentation to her son Kyle’s firstgrade class at Pottsville Elementary School on April 17.The teacher invited parents of her students to come to theclass and discuss how they use math, reading and writingat their jobs. Laura was able to combine that discussionwith the Kids Count program. The students had lots ofquestions about money and were really excited aboutreceiving their piggy banks.

Meredith Bell, of Echols, Thompson & Davis, Ltd. inArkadelphia made a Kids Count presentation on May 7 totwenty-one kindergarten students in Mrs. Alison Carter’sclass at Perritt Primary School, Arkadelphia. Meredith andthe students talked about saving money, banking, anddifferent items for which the students could save theirmoney and drew pictures of things they wanted to save for.The students were very excited to each receive their ownpiggy bank.

During these presentations, eachstudent receives an easy to recite poemabout savings, a drawing activity, and apink plastic piggy bank, courtesy of theASCPA. Each teacher receives arecommended reading list of books onthe topic of money and also aclassroom activity. Every child alsoreceives information to take home totheir parent or guardian to help reinforcethe savings lesson.

Please contact Robin if you wouldlike to make a visit to a group of schoolstudents utilizing these materials. Besure to complete and return the SpeakerVolunteer form arcpa.org/Content/speaker-volunteer-form.aspx. ContactASCPA office at (800) 482-8739 inArkansas, or (501) 664-8739 or e-mail:[email protected].

Laura Drown (left) with students and teacher Carla Staggs followinga Kids Count presentation.

LouAnna with William Gaines as he shows his drawing and tellshis class what he would buy with $100.

Students with LouAnna in teacher Rachel McKinney’s class enjoying their piggy banks.


11

FINANCIAL LITERACY

Members Make CAREERS PresentationRachel Arnold and Greg Meyers, both of Hudson, Cisne

& Company, LLP, made six presentations on May 9 to a totalof 136 students in 8th grade at Joe T. Robinson MiddleSchool’s Career Day in Little Rock. Rachel and Greg madepresentations in the school library to six different groups ofstudents who rotated through in 20 minute intervals duringbreakout sessions. Their PowerPoint slide presentationsfeatured information about CPA educational requirements,accounting salaries and fun facts about famous accountants.Each of the students received materials including a handoutsheet with resources for further information about accountingand a booklet containing articles on the study of accounting andaccounting careers.

The Career Day event showcased presenters andinformation from various career paths. Each student dressedappropriately for their preferred career field and created apresentation board to tell about their preferred career field.Other presenters at the Career Day were: a police officer, acollege admissions representative, a contractor, and a nurse.

Arkansas Representative Fred Love (D) District 29 was thekeynote speaker in an assembly format to the entire group ofstudents, after which all students crossed the auditorium stageand told why they chose their preferred future career and wherethey plan to attend college.

Greg Meyers and Rachel Arnold (in back) with eighth grade studentsfrom Robinson Middle School in Little Rock.

Reach your milestonesManaging your money is a lifelong journey, not a sprint. Here are tips for easing the financial challenges of some of life’s

milestones:

☛ Buying your first home: Determine how much home you can afford, if you prequalify for a loan and if you should use areal estate agent or broker.

☛ Getting married: When tying the knot, don’t forget to establish separate and joint credit, plan for taxes, create wills andtrusts, and name beneficiaries and owners of title on assets.

☛ Becoming a parent: Before baby arrives, reassess your budget – decide if one of you should stay home, reviewinsurance, update wills and trusts, save for education and change your tax status.

☛ Starting or buying a business: Whether you want to create a start-up operation or buy an existing business, create asolid business plan that includes business description, marketing position, financial objectives and other concerns.

☛ Planning for retirement: Determine what you want to do and how you want to live during your golden years. Thenreview your investments, insurance, credit rating, housing situation, and income. Devise a budget and investment strategy.

☛ Preparing a Will: A will legally designates how you want your moneyand property to be distributed after your death. Wills can contain wishesregarding funeral/burial and also allow you to name your children’s guardian.

Get a wealth of articles and tools on these important milestones atwww.360financialliteracy.org.

©Virginia Society of CPAs 2007. All rights reserved. Developed in partnership with the American Institute of CPAs.

Did you know?Two out of three Americans householdswill fail to achieve life goals, like buyinga house or saving for retirement,because of poor financial planning.


LEADERSHIP

12

LEADERSHIP COLUMNEthical Leadership Pays

in Many WaysBy: Alfonzo Alexander,

President, NASBA Center for the Public Trust NASBA,Chief Relationship Officer

As I travel the country representing the NASBA Center forthe Public Trust, I am continually encouraged and motivatedby how small sacrifices and ethical leadership pay greatdividends. Following are recent examples of how ethicalleadership pays in many ways.

A few weeks ago, I saw a great example of ethicalleadership in an unusual form. A frequent flyer on a plane wassitting in first class. A few rows back, a mother and her childwere crowded into a center seat on the plane. After voluntarilygiving his seat to the mother and child, the frequent flyer closeda significant business deal with the gentleman he had not metbefore in the seat beside him. Literally, the act of kindness (Isee his action as ethical leadership) paid off.

Similarly, I met with an ethical leader who is being adifference in his career and his community. Over the past fewyears, he has led the acquisition of several companies thatwere on the verge of bankruptcy. In each case, he and histeam were able to salvage the business by changing theculture. The changes include establishing a culture based onsound, ethical values and principles. Their track record isamazing. In most cases, they grow the business by more thanone hundred percent and sell it in approximately two years.This example is further evidence that ethical leadership paysin many ways.

At the CPT, we are seeing the many ways that ethicalleadership pays off. As we continue to learn of thesemotivating stories, we will bring them to you through EthicsMatters and thecpt.org.

Lead with Integrity!

PR FILERebecca (Becky) PhillipsFirm/Company: University of Arkansas at Monticello

Position: Assistant ProfessorTime In Current Position: Since August 2007

Birthplace: White Sands, New MexicoFirst Job Ever: Part-time Clerk at Southeast Arkansas Education

Service Cooperative While Attending UAMFirst Job As a CPA: PE Barnes Lumber Company in Hamburg

Alma Mater: UAM - 1989Year I Passed the CPA Exam: 2010

Professional/Community Activities: Member of Monticello RotaryClub, Member and Treasurer of Rose Hill Free Will Baptist Church,President of Southeast Arkansas Society of CPAs, Advisor for theStudent Chapter of the Institute of Management Accounts (IMA) at

UAM, and Member of the Board of Directors - UAM Sport Association Marital Status/Children/Pets: Married to Keith Phillips;

We Have a Spoiled Ragdoll Cat - LilyFavorite Food: This Changes from Time to Time but Right Now

I’m Lovin’ Shrimp and Grits!My Favorite Authors: Enjoy Light Reading, John Grisham

and Nicholas SparksThe Last Book I Read Was:

Proof of Heaven: A neurosurgeon’s Journey into the Afterlifeby Eben Alexander

My Teen-age Idol Was: Shaun CassidyFavorite Movie of All Time: The Godfather Series

Favorite Television Show: Don’t Watch a Lot of TV, butLike to Laugh and Enjoy the Show Duck Dynasty

Dream Vacation: Hawaii and EuropeGuests At My Fantasy Dinner Party Would Be:

Jesus and George WashingtonThe Best Advice I Ever Received Was:

The Golden Rule - Do Unto Others....If There’s One Thing I Won’t Do: It’s Ride a Roller Coaster

You’ll Never Catch Me Wearing: 5 Inch Heels - Not AnymoreMy Pet Peeve Is: People That Can Do Better and Choose Not To

If I Weren’t a CPA, I Would Be: An AttorneyWhat I Like Best About My Job:

I Love the Students and the Feeling That I’ve Made an Impact onTheir Lives. My Professors Had a Major Impact on My Life, I Want To

Be Able To Do the Same for Students Today and in the FutureFuture Goals: To Continue Teaching at UAM and

to Run a Half-Marathon Before I’m 50One Word to Sum Me Up: Honest

My Heroes Are: My Mother. Raised Two Children, Often Did WithoutHerself. She Made Sure I Had a College Education, Which I Can

Never Thank Her EnoughWords of Wisdom: Always be Honest! In Our Profession Honesty and

Integrity Are So Very Important

SOUTHEAST CHAPTERPRESIDENT

FINANCIAL MANAGERS CAREERWORKSHOPJULY 17, 2013

ASCPA CONFERENCE CENTERLITTLE ROCK

EMERGING CPAS CONFERENCEOCTOBER 25, 2013



13

LEADERSHIP

2013 ASCPA Leadership ConferenceRogers, Arkansas - May 31, 2013

Sixty members of the ASCPA Board of Officers and Directors, Ex-Officios,Chapter Officers, Committee Members and Task Force Members attended theLeadership Conference at the Embassy Suites Hotel Spa and ConventionCenter on Friday, May 31, 2013, in preparation for current 2013-2014 year.Randy C. Fazier of Frazier Communications, Inc. in Little Rock delivered aleadership training presentation titled “Leadership and the Lost Art of Listening”for inspiring ASCPA leaders in their roles. Members enjoyed a hospitalityreception along with ASCPA committee and task force meetings.

Randy Frazier engages attendees to tune in and turnon their active listening skills before taking charge.

Martha Grantand WillCottrell

John andTamla Hoy

Industry Commerce and Banking Committee members get to work onplanning an annual conference held in the fall.

Accounting and Auditing Committee members met to review feedbackand evaluations from their recent conference.

Jim George with Jimmie and Gloria Shannon

Members and guests enjoyed a Hospitality Reception on Thursday evening preceding the Leadership Conference activities.

Louis and Martha Blanchard and Rebecca Howell


ASCPA 2013 LegislativeUpdate

By: Stan Kozij, ASCPA Past President,2013 Chair ASCPA Legislative Committee

The Society’s Legislative Committee had an activelegislative session in 2013. In fact, there was even moreactivity than was originally anticipated. As reported in theMarch, 2013 newsletter, the two originally planned billswere signed by Governor Beebe and enacted as Acts 89and 90 in February, 2013.

The first Act simply allowed the State Board of PublicAccountancy to pay a higher stipend to the Board membersfor meeting attendance. The stipend was raised from $60to $110 per meeting.

The second Act was designed to modernize certainantiquated language in the Arkansas Public AccountancyAct of 1975 and to allow the State Board of PublicAccountancy to write new rules regarding firm names andother issues generated by changes to the UniformAccountancy Act approved by the AICPA and NASBA inlate 2012. These rule changes were reviewed at a publichearing with the State Board on April 26 and should beadopted by the State Board at their next scheduledmeeting.

A third bill was an opportunity brought to our attentionby Bruce Engstrom, CPA and Jerry Spratt, CPA. TheAICPA recently published articles related to audit workdone by CPAs nationally for use in legal cases where theCPA was the forensic accountant of record, or was thedesignated expert witness on the case for whicheverattorney engaged him. The problem identified by AICPAwas that several states required such activities to becovered by a Private Investigator’s License. Out of the 50states, eleven specifically exempted CPAs and their stafffrom the Private Investigator licensing requirement andseven had a generic exemption that could cover theactivity. Arkansas had no such exemption, except forattorneys. A concern raised in our internal discussions wasthat a very loose interpretation of the Private Investigatorlaw could make the law apply to a “generic” audit undercertain circumstances.

A related bill came to our attention, sponsored by Rep.Marshall Wright, that was making changes to the PrivateInvestigator licensing law and we quickly drafted anamendment which he graciously incorporated into his bill.This amendment essentially approved an exemption,similar to the attorney exemption, for CPAs in Arkansas.Sen. Robert Thompson supported our amended bill in theSenate State Agencies Committee and the bill wassponsored in the Senate by Sen. Bobby Pierce. Afteramending some of the original language, the bill passed theSenate with a 35-0 vote and was supported in the Housewith a 77-0 vote on the last day of the session. The bill wassigned by Governor Beebe and is now Act 1475 of the 201389th General Assembly session.

Bruce Engstrom of EGP, PLLC, CPAs described theASCPA’s activity from his professional viewpoint:

“When I received a notice from the ForensicAccounting Section of the AICPA that we wouldhave to have a Private Investigator License inArkansas to keep doing what I did for a living, Ibecame alarmed. I would have had to quit the CPAbusiness, work for a Private Investigator for twoyears and then pass a test to obtain a license inorder to provide the legal community with theassistance that I had been professionally providingfor over 20 years. Once I contacted the ASCPA,they jumped into action as the legislative sessionwas winding down. The ASCPA legislative teamwas able to get an amendment to the state lawexempting CPAs from this requirement passed andsigned by the Governor. I was, and still am, veryimpressed with the job they did and will ever be intheir debt.”

James Corley, Executive Director of the State Board ofPublic Accountancy, offered the following comment on thisyear’s activity:

“The State Board is very appreciative of all theefforts made by Society members and staff to makethis year’s legislative session a success. Becauseof these efforts we were able to get importantchanges and updates made to the ArkansasAccountancy laws that will help our Board betterprotect the public as well as the Arkansas CPAlicense.”

Once again the Society is indebted to the members whocame out in full support of all of our legislative activity. Thethird bill highlights the importance of reading all of the billsthat are tracked by our system, and then paying attentionto those that aren’t for potential effects upon the CPAprofession. It is critical that maintaining awareness toactivities that, on the surface, don’t seem to affect theprofession at all, may have the potential to be devastatingif not identified soon enough. This is a very importantfiduciary duty for all of us.

A final thanks goes to the ASCPA staff for planning avery successful Legislative Reception in the Capitol Hotelon February 13, 2013. The event was well attended byseveral legislators and Society members.

As your Legislative Committee Chair, I also wish to takethis opportunity to encourage all ASCPA members tocontribute to the ASCPA Political Action Committee (PAC).This year we will contribute to the campaigns of thoselegislators who supported our efforts both before andduring the 2013 legislative session.

Executive Director’s Note: Stan Kozij served admirablyas the ASCPA’s Legislative Lobbyist this past Session. Ahuge ASCPA thanks! goes to Stan for his professionalservice to the Society and our members!

14

LEGISLATIVE


16

MAC ANGEL MEMORIAL GOLF TOURNAMENT

18th ANNUAL MAC ANGEL MEMORIAL GOLF TOURNAMENTAll ProceedsBenefitAccountingScholarships!

MAJOR SPONSORSHIP OPPORTUNITIES❏ Platinum Sponsor $2,500 ❏ Gold Sponsor $1,500 ❏ Silver Sponsor $1,000

Includes 4 Person Team, Tee Box Sign, Includes 4 Person Team, Tee Box Sign, Includes 4 Person Team, Tee Box Signand 1/2 Page ad in ASCPA Newsletter, and more*

and more** Additional promotional benefits may be customized for Platinum and Gold levels.

Team Name (for Promotional purposes) ________________________________________________________________Players Names: Phone Number: E-mail:1. ______________________________________________________________________________________________2. ______________________________________________________________________________________________3. ______________________________________________________________________________________________4. ______________________________________________________________________________________________

GOLF COURSE SPONSORSHIP OPPORTUNITIES:❏ Team Only $600 (complete team name and player info above)

❏ Hole $500 ❏ Hole in One $500 ❏ Putt for Dough $500❏ Long Drive $500 ❏ Closest to Pin $500 ❏ Beverage Cart $500

CONTRIBUTING/IN KIND SPONSORSHIP OPPORTUNITIES:❏ Lunch ❏ Beers ❏ Soft Drinks/Waters ❏ Golf Balls ❏ Signage ❏ Other

Preferred Name (for promotional purposes)

Contact Name: ____________________________ Phone _______________ E-mail ___________________________All sponsorship levels include various promotional opportunities for recognition before and after the tournament.

OTHER OPPORTUNITIES FOR SUPPORT AND PARTICIPATION:❏ Individual Registration $200

Player Name: ______________________________ Phone _______________ E-mail ___________________________Individuals will be paired prior to the tournament.

❏ Friend of the Tournament As always, we appreciate any form of support for this event. To donate as a Friend of theTournament $100 minimum (appropriate recognition will be given) or to donate giveaway items for each player, pleasecontact Robin Harris.

All proceeds from this event will benefit the Arkansas Society of CPAs Student Education Fund for accounting scholarships. The ASCPAStudent Education Fund awards scholarships annually to accounting students attending colleges and universities in Arkansas.

Payment Method: ( ) Check ( ) Bill Me ( ) AMEX ( ) VISA ( ) MasterCard

Credit Card Number________________________________________ Expiration Date___________________________Signature ________________________________________________

REGISTRATION DEADLINE: SEPTEMBER 10, 2013Arkansas Society of CPAs, 11300 Executive Center Drive, Little Rock, AR 72211-4352, Fax: 501-664-8320

Or register online: http://www.arcpa.org/Content/golftournament.aspx

FOR MORE INFORMATION CONTACT:Robin Harris Don R. Smith, Co-Chair John B. Peace, Co-Chair

ASCPA Thomas & Thomas, LLP Dover Dixon Horne, PLLC11300 Executive Center Drive 201 East Markham St., Ste. 500 425 West Capitol Ave., Ste. 3700

Little Rock, AR 72211 Little Rock, AR 72201 Little Rock, AR 72201(501) 664-8739 (501) 375-2025 (501) 375-9151

[email protected] [email protected] [email protected]

Monday, September 23, 2013Pleasant Valley Country Club - Little Rock, AR

Registration & Lunch at 11:30 am with Driving Range OpenShotgun start at 1:00 pm


17

We are here to help you recruit future staff for your firm!

The Arkansas Society of CPAs is preparing a printed Guide to Public Accounting Firms for distribution to accountingstudents at Arkansas’ colleges and universities.

The guide will assist students in providing them with a free directory of public accounting firms throughout Arkansas andsurrounding cities, from which they can select firms to apply for employment. This guide will also help public accounting firmsgain exposure to students as they prepare to begin careers in accounting.

The guide will be distributed to the accounting department heads of Arkansas’ colleges and universities. Further, eachASCPA student member will receive a personal copy of the guide directly. The guide will also be available to students forviewing and/or downloading as a PDF document on the ASCPA website.

To have your firm’s information included in the Guide free of charge, please designate one person from your firm tocomplete and return the attached form no later than July 30, 2013.

Thank you.

MEMBER SERVICES

Guide to Public Accounting Firms in Arkansas

Please include the information exactly as it appears below formy firm:

Firm:__________________________________________

Address:_______________________________________

City/ Zip: ______________________________________

Phone:_________________ Fax: __________________

Website:_______________________________________

Firm Contact:___________________________________

Position: _______________________________________

E-mail:_________________________________________

Firm Size: Partners ______ Total Staff ______

Will you accept interns?: Yes __ No __

Will you accept entry level applications?: Yes __ No __

Does your firm have additional offices in other cities, if so,where?

______________________________________________

Firm Description: (Please limit to one short paragraph)

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

______________________________________________

Please return the completed formno later than July 30, 2013, to:

Arkansas Society of CPAsAttn: Robin Harris

Fax: (501) 664-8320

ATTENTION PUBLIC ACCOUNTING FIRMS:

FREE LISTING: INCLUDE YOUR FIRM IN THE2013 GUIDE TO PUBLIC ACCOUNTING BOOKLET


18

MEMBER SERVICES

18th AnnualMac Angel Memorial

Golf TournamentPleasant Valley Country Club

Little Rock, AR • September 23, 2013

Register now for ASCPA’s 2013 Mac Angel MemorialGolf Tournament at Pleasant Valley Country Club!Returning as Co-Chairmen of the tournament are John B.Peace of Dover Dixon Home, PLLC and Don R. Smith, ofThomas & Thomas, LLP. Last year’s tournament was themost successful yet; setting a record in both attendance andfunds-raised for scholarships. One hundred golfers playedin the event last year which generated gross revenues ofapproximately $30,000 to the Student Education Fund forcollege and university accounting scholarships. We hope tobuild upon last year’s success with even better participationand support this year, so please assist us in making thispossible!

Pleasant Valley is consistently ranked as one of the bestcourses to play in the state, visit: www.pleasantvalleycountryclub.net/ for information about this championshipgolf course. Various tournament sponsorship levels areavailable. All proceeds benefit the ASCPA StudentEducation Fund for accounting scholarships. For moreinformation contact Don Smith at [email protected], John Peace at [email protected], orRobin Harris at the Society at 800-482-8739 in Arkansas,(501) 664-8739, [email protected].

Display Your “CPA”With Accessories

Visit the online CPA Accessories Store to orderyour CPA-branded merchandise, including CPA lapelpins, polo shirts, golf balls, water bottles and more.This new site offers a wide selection of high-qualityitems from Lands’ End to showcase your CPA credential.

Go to: http://ocs.landsend.com/cd/frontdoor?store_name=cpaaccessories&store_type=3

Lapel Pin Cap


Arkansas Department ofFinance and Administration

Warns of E-Mail ScamThe Department of Finance and Administration wants

to alert taxpayers to the latest version of an e-mail scamintended to fool people into believing their tax return isbeing reviewed by the Arkansas Revenue Services.Arkansas Revenue Services is a fictitious name, and is nota part of the Department of Finance and Administration.The Department of Finance and Administration does notsend out unsolicited e-mails or ask for detailed financialinformation by unsolicited e-mail. Recipients of question-able e-mails claiming to come from the Department or fromthe Arkansas Revenue Services should not open anyattachments or click on any links contained in the e-mail.The Department of Finance and Administration is warningtaxpayers that the e-mail link may request personal orfinancial information.

The e-mail purports to be from Arkansas RevenueServices and falsely states that the person’s tax return hasbeen selected for a detailed review because of a numberof irregularities. The e-mail seeks to entice people to clickon a link to learn more information about the complaintagainst them.

This e-mail is one of several types of questionable e-mails that the Department of Finance and Administrationand other federal and state agencies receive that involvetricking victims into revealing private and financialinformation over the Internet, a practice known as“phishing” for information. Taxpayers should beware ofthese scam artists and exercise caution whenever youreceive unsolicited e-mails from senders you don’t know.

Contact: Warren Fagan, 501-682-1130 or Fax: 501-682-1691.

Announcing aNEW MEMBER BENEFITFOR ASCPA MEMBERS

LifeLock is the industry leader in identity theftprotection. With expert support and sophisticatedtechnologies, LifeLock offers comprehensive protection.Enroll and receive 10% off plus 2 months free* whenpurchasing an annual plan. Contact Robin Harris at theSociety office for more information, 501-664-8739.

* Two months free included with purchase of annual plan. Valid forfirst year only.

ASCPA Tenth Annual Educators ConferenceASCPA recently hosted its Tenth Annual Accounting Educators’ Conference on Monday, May 13, 2013 at the ASCPA

Conference Center in Little Rock. Over forty educators from various two and four year colleges and universities around thestate attended, as well as nine speakers. The conference offered attendees presentations on issues, teaching tools, andteaching strategies related to accounting education and a chance to meet with their peers in order to share ideas. Inaddition, the event offered attendees up to 7 CPE credit hours.

Presenters at the conference included: Dr. Gaurav Kumar, University of Arkansas Little Rock, who presented TeachingIFRS. William F. Ezzell, CPA retired and Co-Leader Pathways Commission, delivered a webcast presentation on the 2012Pathways Commission Report — The Future Structure of Accounting Higher Education. Jimmy K. Corley, ExecutiveDirector, Arkansas State Board of Public Accountancy, presented a State Board Update. A panel presentation was madeby Dr. Gaurav Kumar, University of Arkansas Little Rock, Dr. Amelia A. Baldwin, University of Arkansas Fort Smith andDr. Gary F. Peters, University of Arkansas in Fayetteville on the subject of faculty research. Dr. Philip A. Brown, HardingUniversity and Darren S. McCrillis, CPA, with BKD, LLP, gave a co-presentation entitled Developing ProfessionalCommunication Skills in the Accounting Classroom. Dr. Patricia H. Mounce, University of Central Arkansas, Dr. MargaretM. Tanner, University of Arkansas Fort Smith, and Dr. David T. Dearman, University of Arkansas Little Rock participatedin a panel discussion about motivating students, promoting student involvement and participation. A facilitated breakoutsession allowed attendees to select a table to join for discussion, based upon certain courses taught. Each of the presentersand the overall conference received very high ratings.

Next year’s conference will be held Monday, May 12, 2014. If you are interested in helping plan next year’s event,including choosing topics and presenters, please contact Robin Harris at the Society office at (501) 664-8739 or (800) 482-8739 in Arkansas, or e-mail: [email protected].

19

MEMBER SERVICES

Participants listen to a co-presentation which included excerpts from aninstructor’s accounting course syllabus about the attendance policy, quizzesand exams, homework assignments and grading rubric.

Dr. Margaret Tanner, Dr. Patricia Mounce, and Dr. DavidDearman discuss their experiences and methods for motivatingstudents to consider accounting as their academic major.

Attendees participated in a“best cases sharing andidea exchange” session

during the morning basedupon Accounting

Information Systems,Intermediate/Advanced,

Auditing, Cost Accounting,Principles

and Taxation.

Co-presentersDarrenMcCrillis,CPA and Dr.Phil Brown,HardingUniversityat right.

Dr. Gaurav Kumargave a presentationdemonstratingnumerous resourcesthat he often utilizesin his courses to teachstudents InternationalFinancial ReportingStandards.


CERTIFIED MEMBERS

MONICA LYNN FRANCOHogan Taylor, LLP

Fayetteville

BRYAN HARPERThomas & Thomas, LLP

Texarkana, TX

ZACHARY PAUL HEMMERJones, Rose & Lawton, PA

Russellville

ADAM BRET JONESFrost, PLLCLittle Rock

JUSTIN BLAKE MEATTEAR Division of Legislative Audit

Little Rock

MATTHEW R. PHILLIPSBKD, LLPLittle Rock

ULYS RAY REIDUnemployed Indefinitely

Little Rock

ASSOCIATE MEMBERS

LINDSAY E. GIVENSEmrich & Scroggins, LLP

El Dorado

AMBER CHANTELLE HURLBUTDeborah S. West, CPA

Springdale

MELISSA G. LAMBERTUSMalone & Banks, PLLC

Arkadelphia

MICHELLE ROSSFrost, PLLCFayetteville

STUDENT MEMBERS

JESSICA L. BOSWELLUniversity of Arkansas

Little Rock

BRIAN ROSS GRANTUniversity of Arkansas

Little Rock

DAWN RENEE MCELYEAUniversity of Arkansas

Little Rock

LAUREN E. MILLERJohn Brown University

Siloam Springs

DEREK RANDAL REYNOLDSUniversity of Arkansas

Fort Smith

EMILY ELIZABETH WALKERHarding University

Searcy

KATIE IRENE TUCKERUniversity of Arkansas

Monticello

THOKOZILE M. ZULUUniversity of Arkansas

Little Rock

NEW MEMBERSWe welcome the following professionals who have been

approved for membership in the Society and look forward totheir participation in ASCPA activities.

CERTIFIED MEMBERS

MICHAEL M. BOSCHETTICornerstone Business Advisors

Little Rock

MATTHEW KEITH CLARKDespain, Luther, Short& Company, CPAs, PA

Jonesboro

ANDRE LACOSTA CURRYArkansas Baptist College

Little Rock

WENDY R. FRANCISHawkins & Garrett, CPAs, PLLC

Conway

LEAH MARIE GRIMMArkansas Best Corporation

Fort Smith

MIRANDA S. MCCOYAR Division of Legislative Audit

Monticello

MICHAEL J. MCOLVINAegis Therapies

Fort Smith

HANNAH CHEESEMAN MOOREWalton Enterprises, LLC

Bentonville

KRISTEN LEE RIGSBEEEchols, Thompson & Davis, Ltd.

Arkadelphia

GREGORY A. WALKERThomas & Thomas, LLP

Little Rock

REINSTATEMENT MEMBERS

CYNTHIA L. TAYLORUniversity of Arkansas

Little Rock

PAUL GILBERT TAYLORPaul Taylor, CPA

Clarkesville

ASSOCIATE MEMBERS

BRANDON RICK MILLIGANThomas & Thomas, LLP

Little Rock

LISETTE NAQUIN WASHISPACKConner & Sartain, P.A.

Conway

STUDENT MEMBERS

KYLA T. BRYANUniversity of Central Arkansas

Conway

ROMULO N. BUEN, JR.University of Arkansas

Little Rock

SOVANNARY CHENGJohn Brown University

Siloam Springs

ILIANA DEANDAUniversity of Arkansas

Fort Smith

MARY F. FORSTUniversity of Arkansas

Little Rock

JONATHAN MILLERUniversity of Arkansas

Fayetteville

GIAU PHANUniversity of Central Arkansas

Conway

ABAGAIL JOY PHILLIPSHenderson State University

Arkadelphia

BRITTANY A. ROBERSONArkansas Tech University

Russellville

TAKUMI TAKAHASHIUniversity of Arkansas

Little Rock

PENDING MEMBERSThe following persons have made application for membership

in the ASCPA since the publication of the June Newsletter.Should there be an objection to the admission of these applicants,notice must be submitted to the Society office within thirty days

MEMBERSHIP

20

SEVENTEENTH ANNUAL

TECHNOLOGY CONFERENCE

NOVEMBER 7-8, 2013

ASCPA CONFERENCE CENTER

LITTLE ROCK

FIFTY-SECOND ANNUAL ARKANSASFEDERAL TAX INSTITUTE

DECEMBER 5-6, 2013EMBASSY SUITES

LITTLE ROCK

FRAUD CONFERENCEOCTOBER 3-4, 2013


WEBCAST


PEER REVIEW

22

AICPA Peer Review BoardDevelops the Matter

for Further Consideration(MFC) Project

The strategic vision of the AICPA Peer Review Board(Board) is to:

• Be the globally recognized, preeminent practice-monitoring program;

• Cultivate exceptional reviewers and superb staff anddevelop innovative technologies; and

• Lead development of timely, focused recommendationsfor accounting service and audit quality improvements.

To achieve this vision, the Board has been developing anongoing process to gather practice issues identified during peerreviews (as well as regulators’ inspections and other sources).A significant step forward is the launch of an electronic Matterfor Further Consideration (MFC) form. The wealth of informa-tion collected on the MFC forms (excluding firm and reviewerspecific data) via an entirely electronic format will allow users toaggregate and use information that is already being gathered.The functionality for the electronic MFC and Disposition ofMatter for Further Consideration (DMFC) forms, also called the“MFC Project,” has been in the testing phase since the fourthquarter of 2012. Peer reviewers and reviewed firms will berequired to use the electronic forms for all peer reviewscommencing on or after July 1, 2013.

All peer reviewers and enrolled firms will be impactedby this change, so it is very important that you review theinformation contained in the link below before July 1, 2013 forspecific details on what you will be expected to do in your nextpeer review, and for best practices to prepare your firm for thetransition to the electronic forms.

If your firm is enrolled in the AICPA Peer ReviewProgram, we urge you to participate in a video trainingsession that has been posted to the AlCPA’s website athttp://bit.ly/13MMPkO. This training video will walk youthrough the entire MFC process.

Peer reviewers who did not participate in the trainingon June 3rd will be able to see a rebroadcast of thattraining on June 18, July 18, and August 27. Therebroadcasts will be staffed by technical managers who willanswer any questions you may have in real-time. To accessthese re-broadcasts, go to http://bit.ly/12Qy4je.

If you have questions regarding your upcoming peer review,or if you are uncertain of the timing of your next peer review,contact Marsha Moffitt at the Society office at (800) 482-8739.

For more information on the MFC Project, go tohttp://bit.ly/10StNaC.

ASCPA to Hold CPE CourseGeared for Firms with

Upcoming Peer ReviewsDoes your firm have an AICPA peer review due in 2014?

Want to know what it takes to have an effective quality controlsystem that will lead your firm to receive a peer review reportwith a Pass rating? If so, you should consider attending“Upcoming Peer Review: Is Your Firm Ready?” This course willhelp get you prepared for your next peer review by learningwhat can be done on a daily basis to create a strong qualitycontrol environment for your firm; identify the most common,significant deficiencies that peer reviews uncover and what youcan do to prevent them from occurring in your own firm;consider the process for selecting the appropriate peerreviewer; and determine the right review year-end for your firm.If you have specialized engagements, such as governmentalunits, not-for-profit organizations, construction contractors oremployee benefit plans, this course will examine the additionalissues that might come into play.

You will learn how to create a firm environment that focuseson quality control, understand the basic steps for monitoringand inspections, establish quality control systems based on theQuality Control Standards, and recognize significant recurringengagement deficiencies and how to prevent them. Insummary, this course will teach you how to prepare for yournext peer review, what decisions to make, and how to pulltogether the right information.

Title: “Upcoming Peer Review: Is Your Firm Ready?”Date: Monday, October 21, 2013Time: 8:30am - 4:30pmLocation: ASCPA Conference Center, Little RockCPE Credit: 8.0 Hours in Accounting, Auditing & AssuranceInstructor: John M. AndresFee: $225 ASCPA Members, $325 Non-MembersEarly Bird Fee: $195 ASCPA Members, $295 Non-Membersthrough 10/7/2013AICPA Member Discount: ($30)

2013-2014Peer Review Committee Schedule

July 24, 2013Phone Conference

September 25, 2013Policy & Planning Meeting

ASCPA Facility

November 20, 2013Phone Conference

January 22, 2014Phone Conference

March 19, 2014Phone Conference


Ronald E. Meyers (Chair)L. Cotton Thomas & Company

Little Rock, AR 72201-2223

Jesse W. Whitmire (Vice Chair)Whitmire Robinson & Co CPA

Newport, AR 72112-4953

Gary F. BeckwithBeckwith & Company, Ltd

Hot Springs, AR 71903-1670

David ChappellHowland & Morris CPAs


Sherry Lynn ChesserThomas & Thomas LLP


George William Foster, IIIBell Foster Johnson & Watkins LLP


James Wyatt GoadGoad & Company CPAs

Jonesboro, AR 72403-0489

Heather S. HudgensBell & Company PA

North Little Rock, AR 72116-7039

Terri Layne IvyTerri Layne Ivy CPA


Ricky Harold KeenMcllroy Keen & Company LLP


James Jefferson LoveladyBell & Company PA

North Little Rock, AR 72116-7039

Charles A. Marshall, Jr.Little Shaneyfelt Marshall & Co


Lenore Wilson MerrellMerrell & Company PA


Randy Lynn MilliganThomas & Thomas LLP


Gina Renee MoranHudson Cisne & Company LLP


Tom G. PorterfieldPorterfield Killingsworth CPA PLLC

Harrison, AR 72601-4317

Stacy D. ScrogginsEmrich & Scroggins LLP

El Dorado, AR 71730-5896

Letitia Sue TalkingtonBeall Barclay & Company PLC

Fort Smith, AR 72917-0148

Mark S. WatkinsBell Foster Johnson & Watkins LLP


K. Dale WoodWood and Wood Ltd

Magnolia, AR 71754-0356

PEER REVIEW

23

PEER REVIEW COMMITTEE:WHO ARE THEY, AND WHAT

DO THEY DO?Did you know that your ASCPA Peer Review Committee is

made up of twenty volunteer ASCPA members from acrossArkansas, and that most of those members are also active peerreviewers? Did you know that as part of their “volunteer” serviceto the Committee, most of them are required to meet therequirements of a team captain on a system review? Thesehard-working volunteers not only participate in six meetings peryear, but they are required to spend several hours per meetingreviewing the workpapers and review documents forapproximately 10 to 30 peer reviews in preparation for the“report acceptance process.” Chairman Ron Meyers wasrecently asked the following questions regarding his service onthe Peer Review Committee, as well as being a peer reviewer:

Q: Why did you decide to join the Peer ReviewCommittee and get involved in performing peer reviews?

A: Through the firms I’ve been associated with during mycareer, I’ve been on the receiving end of numerous peerreviews. Over time, I developed an appreciation for the entireprocess, as well as an understanding of the importance ofkeeping oversight of our work in the hands of our ownprofession. Several years ago, one of our reviewers suggestedthat I consider becoming a reviewer and joining the Peer ReviewCommittee. After some serious consideration, I decided to

attend a reviewer training class and to begin performing peerreviews. Soon thereafter, I joined the Committee and gained anunderstanding of the review acceptance process. Through theCommittee, I’ve had the privilege of working with some of thebest CPAs in the State. Serving on the Committee andperforming peer reviews helps me to keep my technical skills assharp as possible.

Q: What recent Committee successes would you like toshare?

A: The Committee is subject to oversight by the AICPA PeerReview Board Oversight Task Force. Oversight includes bothreviews of the administrative processes of the ASCPA’s PeerReview Program and the Committee’s work in reviewing andaccepting peer reviews that have been submitted by reviewcaptains and team captains. Our Committee and the ASCPA’sPeer Review Manager, Marsha Moffitt, recently received anoutstanding oversight report from the AICPA Peer ReviewBoard Oversight Task Force.

Q: What future issues do you see impacting theSociety’s administration of the AICPA Peer ReviewProgram?

A: The aging pool of peer reviewers is a major concern.Several of our longest serving reviewers and committeemembers are nearing retirement age. More qualified reviewerswill be needed to fill the inevitable gap. Another challenge facingthe Society’s administration will be the continued transitiontoward electronic review data collection and storage.

THANK YOU! 2013/2014 Peer Review Committeefor your dedication and service to the AICPA Peer Review Program


PRACTICE MANAGEMENT

24

By: Sandra Wiley

The 2013 tax season is behind us, but that certainly does notmean that we can take a break. It is time to refocus on otherimportant things in our firm, and one of those is talent.Specifically, the human resources trends that every businessshould be spending time on. The trends below represent the HRissues that should be on your radar as you move forward in 2013.

Health Care Costs: It comes as no surprise that healthcare costs are not going down in the years ahead. If you arechoosing the passive road and simply waiting and seeing whatyour health care vendor tells you the new rates will be, don't besurprised when you have a panic attack after seeing your newpremiums. Start now and proactively talk to your health careprovider about the steps your firm can take to hold costs downor change your plan to reduce prices. Some firms are findingthat developing "health programs" in their firm and then turningin the ongoing results to their health care providers is a positivestep. The results of their proactive program being tied to lowerusage is equating to lower increases in overall premiums.

Shortage of Skilled Professionals: This challenge doesnot come as a huge shock to anyone in our profession. Wehave amazing talent in our firms, but we just want more of them.At the core of the problem is that there are simply less peoplein the current Gen X and Y age groups than there are in theretiring baby boomer generation. Pair that fact with the lowernumber of individuals that are choosing to stay in the publicaccounting arena and we just have less people to work withtoday. This challenge must be met with a stronger emphasis onmoving top talent into higher level work faster and more timespent mentoring, teaching and motivating the best of the best.

Retiring Baby Boomers: Given the fact that we know wewill have less people to replace those that are leaving, retiringPartners might be a bit discouraged about their ability to leavethe firm when they had planned to. We simply must startthinking in a new way about mandatory retirement ages, waysto attract younger team members to buy into the ownershiptrack, the amount of time we spend in knowledge transfer andthe expectations we have of our new leadership team. All ofthese old rules and mindsets must change as we move to thenext generation of leadership and management in our firms.

Decline in Employees' Retirement Savings: Therecession hurt our country and our profession and one areathat is not recovering as fast as we had hoped it would isemployee retirement savings contributions. While some firmleaders would say "that is their problem, we give them theopportunity and it is up to them to take advantage of it", Icontend that as leaders we need to insure that we areeducating and encouraging our team in the management andnecessity of their future retirement planning. This is a great areato collaborate with an outside vendor to work with your firm.Asking an outside financial planning professional to meet withteam members can be extremely valuable to the firm and theindividual.

Threat of Another Recession: When you are clobberedonce it is hard to trust that everything will be ok in the future.The experts agree that we are recovering slowly. The expertsdo not agree as to the likelihood of another recession. Thechallenge is to not let your firm leaders get into a position ofbeing scared. Scared says that you are in the position of retreator standing still. You must continue to push forward, improveand strengthen your firm. Be courageous!

Greater Demand for Life and Work Balance: Theconversation around life and work balance was once thoughtto be a passing fad. Today we know that this is not just a "nextgen" issue. This is an "about everyone" issue. Everyone issearching for more balance including a career that they arepassionate about as well as a personal life that is fulfilling. Firmshave to continue their quest to develop accountability at workwhich includes setting professional goals that will help eachindividual accomplish the life they want, but will almost neverlook the same as the next person that walks through the door.That is where the challenge comes. We must have a system inplace that allows for flexibility that will connect the needs of thefirm with the goals of the individual.

As I stated earlier, now is the time to act as leaders and becourageous. Use the trends above to develop strategies thatwill enable your firm to navigate the talent trends of 2013 andend the year in a positive way.

About the Author: Sandra Wiley, COO and Shareholder,is ranked by Accounting Today as one of the 100 MostInfluential People in Accounting as a result of her prominentrole as an industry expert on HR and training as well asinfluence as a management and planning consultant. She isalso a founding member of The CPA Consultant's Alliance.Sandra is a certified Kolbe™ trainer who advises firms onbuilding balanced teams, managing employee conflict andhiring staff.

6 Talent TrendsTo Act On

Deceit, lies & embezzlementBy: Amy Wilson

My name is Amy Wilson. I am a wife, a mother, anaccountant – and an ex-convict. For most of my life, I wasan overachiever, an attibute that eventually led to mydownfall and put me behind bars, a convicted felon.

Early on as a struggling single mother, I wanted a betterlife for my children, so I went to night school at theUniversity of Indianapolis and earned my bachelor’sdegree. For 16 years, I worked hard to achieve a respectedposition in the corporate world. I worked as a payablesclerk for a major hospital in Indianapolis. Finally, degree inhand, I became a staff accountant for a largemanufacturing firm. Seven years later, I was hired as anoffice manager for a small manufacturing business.

Read the rest of Amy’s story here: http://goo.gl/AzMnY.



TAX

2013 ArkansasIncome Tax Update

By: Michael M. Watts,Associate Professor of Accounting, UALR501-569-8990, [email protected]

Note: All references to act numbers are references to Actsof the 89th General Assembly, unless otherwise indicated. Fulltexts of the specific acts are available at the ArkansasLegislature’s website: http://www.arkleg.state.ar.us/SearchCenter/Pages/historicalact.aspx

Thanks to Stan Kozij for reviewing this article.

The Arkansas Legislature seemed to be largely focused onabortion and guns this session. In fact, in terms of tax legislationthis was a relatively quiet session. However, a number ofsignificant provisions were enacted into law. The following actsaffected Arkansas income taxes.

Act 1254 was the usual “technical corrections” bill. Itadopted various provisions of the Internal Revenue Code,generally as in effect on January 2, 2013. (January 2nd wasused because the federal American Taxpayer Relief Act of2012 was not signed into law by President Obama until January2nd and that law extended or amended dozens of sections ofthe Internal Revenue Code.) The following Internal RevenueCode (IRC) sections were adopted or readopted:

21 [Expenses for household and dependent care...]. TheArkansas credit remains at 20% of the federal credit.

23 and 36C [Adoption expenses]72 [Annuities; certain proceeds of endowment and life

insurance contracts],107 [Rental value of parsonages]. §107 includes language

incorporating as part of the cost “furnishings and appurten-ances such as a garage, plus the cost of utilities.”

108 [Income from discharge of indebtedness]117 [Qualified scholarships]127 [(Employer) Educational assistance programs].132 [Certain fringe benefits]137 [(Employer) Adoption assistance programs].163 [Interest (deduction)]167 [Depreciation]168(a) through (j) [Accelerated cost recovery systems]. This

excludes subsections (k) through (n) which contain variousprovisions for special allowances, most notably the 50% first-year allowance for new property placed in service through 2013.

170 [Charitable, etc., contributions and gifts]179A [Deduction for clean-fuel vehicles and certain

refueling property]219 [Retirement savings]221 [Interest on education loans]402 [Taxability of beneficiary of employees’ trust]403 [Taxation of employee annuities]404 [Deduction for contributions of an employer to an

employees’ trust or annuity plan and compensation under adeferred-payment plan]

406 [Employees of foreign affiliates covered by section3121(1) agreements]

407 [Certain employees of domestic subsidiaries engaged

in business outside the United States]408 [Individual retirement accounts]409 [Qualifications for tax credit employee stock ownership

plans]410 [Minimum participation standards]411 [Minimum vesting standards]412 [Minimum funding standards]413 [Collectively bargained plans, etc.]414 [Definitions and special rules]415 [Limitations on benefits and contributions under

qualified plans]416 [Special rules for top-heavy plans]457 [Deferred compensation plans of state and local

governments and tax-exempt organizations]530 [Coverdell education savings accounts]1017 [Discharge of Indebtedness]Subchapter M [Regulated Investment Companies and Real

Estate Investment Trusts §§851-860G]Subchapter S [Tax Treatment of S Corporations and Their

Shareholders §§1361-1379]The adoption of §§ 72, 163, 170, 167, 168(a)-(j), 179A, 219,

402-402, 406-416, 457, and Subchapter S was maderetroactively to 2012. The application of the retroactive featurecould affect 2012 returns. The other provisions are effective fortax years beginning on or after January 1, 2013.

Careful readers will note the omission of §179 [Election toexpense certain depreciable business assets). That provisionwas left as adopted in 2009.

Act 1459 reduces the lowest income tax rate by 0.1%beginning in 2014 and the remaining tax rates by 0.1%beginning in 2015. The table below summarizes the amountand timing of those changes:

2012 and 2013 2014 2015+

$0 - 4,099 1% $0 - 4,099 0.9% $0 - 4,099 0.9%

$4,100 - 8,199 2.5% $4,100 - 8,199 2.4%

$8,200 - 12,199 3.5% Same $8,200 - 12,199 3.4%

$12,200 - 20,399 4.5% as $12,200 - 20,399 4.4%

$20,400 - 33,999 6.0% 2012 and 2013 $20,400 - 33,999 5.9%

$34,000 + 7.0% $34,000 + 6.9%

Note: The income brackets for 2013 and beyond will besubject to an adjustment for inflation.

Act 1488 increase the standard deduction per taxpayerfrom $2,000 to $2.200 for tax years beginning in 2015. Thestandard deduction for Arkansas returns was last increased in1998. Arkansas law does not provide for an inflation adjustmentfor the standard deduction.

Act 1488 also exempts from income tax any net capital gainin excess of ten million dollars, effective for gains on or afterJanuary 1, 2014. Effective January 1, 2015, the exemption forother net capital gains will be Increased from 30% to 50%.

Combined with Act 1459, this will lower the effectivemaximum tax rate on net capital gains from 4.9% to 3.45%(about a 30% reduction).

Beginning in 2014, Act 1408 exempts service pay orContinued on page 27

Tax Reform is Centerpiece ofCPAs Meetings on Capitol Hill More Than 400 AICPA Leaders

Visit with Their State’sMembers of Congress

Leaders of the CPA profession from throughout the nationmet with members of Congress to express their views on taxreform and other issues of importance to the profession and thepublic.

The Capitol Hill visits are a highlight of the three-daymeeting of the American Institute of CPAs’ (AICPA) governingCouncil in Washington, D.C.

“As the dialogue regarding reform of the federal income taxsystem continues, we aim to provide unbiased facts andanalysis to foster informed discussion,” said AICPA Presidentand CEO Barry C. Melancon, CPA, CGMA. “Council memberswill use the meetings as an opportunity to urge conformity withour Principles of Good Tax Policy. Our goal, reflected in ourrecent testimony and comment letters, is a system that isperceived as balanced, fair to all, administrable, economicallyefficient, transparent, and neutral in its effect on economicactivity.”

The CPA advocates also are expected to promote passageof several pieces of legislation, including:

Due Dates – H.R. 901 and S. 420, the Tax Return Due DateSimplification and Modernization Act of 2013, would generallyimprove tax administration by establishing a set of due datesfocused on promoting a chronologically-correct flow ofinformation between pass-through entities and their owners.

Mobile Workforce – The AICPA supports H.R. 1129, theMobile Workforce State Income Tax Simplification Act of 2013,because a uniform national standard for state nonresidentincome tax withholding strikes a balance between interests ofthe states in taxing work done within their borders and theneeds of businesses to be able to operate efficiently.

AICPA leaders from each of the 50 states, the District ofColumbia, Puerto Rico, the Virgin Islands and Guam attendedthe Council meeting.

Guest speakers included Gene L. Dodaro, ComptrollerGeneral of the United States. The Comptroller General is thedirector of the Government Accountability Office (GAO), anindependent, nonpartisan agency that works for Congress.Often called the “congressional watchdog,” GAO investigateshow the federal government spends taxpayer dollars.

Other speakers of note were U.S. Representatives PatrickMurphy (D-Fla.), Tom Rice (R-S.C.) and Tom Price (R-Ga.).The recent election of Murphy and Rice brought to 12 thenumber of members of the Congressional Caucus of CPAs andAccountants. Murphy is a member of the Financial ServicesCommittee. Rice’s committee assignments include the SmallBusiness Committee and the Committee on the Budget. Priceis vice-chairman of the House Committee on the Budget andalso is a member of the House Ways & Means Committee.

AICPA Council determines Institute programs and policies.It has approximately 260 members with representatives fromevery state and U.S. territory. Council meets twice each year.

TAX

26

ASCPA delegates met with Congressman Tom Cotton during theirAICPA Spring Council meeting and Congressional visits May 19-22 inWashington, DC. From left: Bill Booker, ASCPA President Doug Coy,Rep. Cotton, and Jim Petty. Not pictured: Executive Director Bruce Alt.


Long Range Vision forThe Natural State

Amendment 75 - Conservation Sales Tax

In November 1996, Arkansas voters passed a conservationsales tax, which went into effect July 1, 1997. It designates1/8th of 1 percent of the state's general sales tax for ArkansasGame and Fish Commission (45 percent), Arkansas StateParks (45 percent), Arkansas Heritage Commission (9 percent)and Keep Arkansas Beautiful Commission (1 percent).

In a statewide survey before the 1996 election, Arkansanssaid their priorities for the Game and Fish Commission's newprojects funded with the tax revenues were (1) more wildlife lawenforcement, (2) more wildlife habitat for public use, (3) moreeducation about wildlife and (4) more work with endangeredspecies.

The Game and Fish Commission immediately drafted plansfor four nature centers (Pine Bluff, Jonesboro, Fort Smith andLittle Rock) in addition to other expanded educational projectsto fulfill this part of its conservation sales tax commitment.

Visit http://www.agfc.com/aboutagfc/Documents/consvtax_tenyr_report.pdf to read Conservation Sales Tax: A LittleHelp from Nature's Friends, a 10-year report detailing projectsand improvements made possible by Amendment 75.

Department of Finance andAdministration


Total return filing is down approximately 50K returns thisyear compared to 2012. However, extensions and extensionpayments are up significantly. The 50K is primarily in paper filedreturns. ELF returns are up 1,700 over 2012. The recent newsrelated to DFA income increases in April 2013 was largely dueto improved efficiency in funds processing capability withinDFA. Vouchers have contributed to this increase.

NEW TAX ACTS FROM THE89TH GENERAL ASSEMBLY


Sales TaxActs related to sales tax exemptions with revenue impacts.Acts 233, 1084, 1476, 1392, 1401, 1411, 1414, 1419, &

1441 mainly deal with manufacturing and farming activitiesgranting exemptions for using natural resources in theproduction of products.

Act 1404 - Sales tax exemption for repair parts and facilityupgrades. This is the first of a series of expected laws phasingin various exemptions for these types of purchases. TheWhirlpool plant in Ft. Smith was a primary example of where thiscould have applied to improve the facility and perhaps keep jobsin Arkansas. This bill was supported by the AR EconomicDevelopment Council (AEDC).

Acts 1398 & 1450 - Phase out the remaining grocery tax overtime, but subject to conditions related to overall budgetreductions (Pulaski County desegregation payments are aprime example). The state’s Conservation Sales Tax(Amendment 75 - 1/8 of 1% of the general sales tax) and localtaxes will be retained.

Income TaxAct 1284 - Eliminates 3 year rule for claim of refund on

improper tax paid on income that was later refunded. (Claim ofright doctrine)

Act 1408 - Full exemption for active duty military pay, includingNational Guard and Reserve active pay for tax year 2014.

Act 1452 - Allows firefighters an itemized deduction for out-of-pocket expenses paid to support the performance of theirvoluntary job; includes potential wear and tear on personalassets such as vehicles.

Act 1459 - Allows a .1% reduction in income tax rates. The1% rate is reduced in 2014 and the remaining rates are reducedin 2015 (1%= 0.9%; 2.5%=2.4%, etc.)

Act 1488 - Increases the individual standard deduction from$2,000 to $2,200 in 2015; increases capital gain exclusion from30% to 50% in 2015; all capital gains over $10M are exemptfrom tax for a single individual in 2015.

Act 1254 - Dept. of Finance and Administration technicalcorrections enacted to follow federal changes enacted for 2012and beyond. Section 179 and the federal itemized deductionphase out are not included. Some taxpayers may file amended2012 returns if applicable due to timing issues. For example, themortgage insurance premium deduction was reinstated by IRSand may not have been claimed on an original filed state return.

Act 160 - No tax liens will be filed by DFA if the balance owedis under $2,000 and an electronic payment agreement is inplace which will pay the balance within 12 months.

TAX


2013 Arkansas Income Tax UpdateContinued from page 25

allowances received by an active duty member of the armedservices from Arkansas income tax. Currently, the law exemptsthe first $9,000 of such pay. Act 1408 also specifically includesthe National Guard and Reserve units. Previous law referred toa “member of the armed services of the State of Arkansas orthe United States.” Regulations had clarified that members ofthe National Guard and Reserves were included.

Act 1452 authorizes, beginning in 2014, an itemizeddeduction by a volunteer firefighter (one who receives less than$5,000 in total compensation) for the cost of firefightingequipment required by the department or unit. The loss ofpersonal property damaged or destroyed during firefightingactivities is also deductible. The deduction is limited to $1,000per year.

Act 1284 adopts IRC §1341(a)(1)-(3) and (b)(2) as ofJanuary 1, 2013. This addresses the repayment of an amountto which a taxpayer previously asserted a “claim of right” andincluded in income. In the year that the amount is repaid or theclaim is relinquished, e.g. because the claim was erroneous,the taxpayer will be allowed a deduction. However, the amountmust be “substantial,” i.e., over $3,000. This avoids the need forthe issue to be resolved within the usual three-year statute oflimitations for the original return that reported the income.

Act 1418 provides an income tax exemption for up to twentyyears for a “qualified drop-in biofuels manufacturer” wholocates in Arkansas by June 30, 2023. The actual number ofyears of exemption is determined by a formula measuring thepayroll (a minimum of 100 jobs) and investment (a minimum of

$20 million) of the manufacturer. Drop-in biofuels is a substitutefor and completely interchangeable and compatible withconventional petroleum-based motor fuel. An agreement mustbe signed with the Arkansas Economic DevelopmentCommission.

Act 160 allows the Department of Finance and Administra-tion (DF&A) to avoid filing a “certificate of indebtedness’ (lien)for certain individual income tax liabilities. The liability must beless than $2,000 and there must be an installment agreementwith the taxpayer that requires electronic payments to satisfythe liability within twelve months. Previously, DF&A’s discretionto not file a lien was limited to a liability of less than $1,000, butdid not require a one-year limit or electronic payments.

Many of the specific provisions noted above do not takeeffect for the 2013 tax year. Nevertheless, CPAs would be well-advised to make sure that they and their clients are aware ofthe changes enacted.

IRS e-News SubscriptionsThe IRS offers free e-News subscriptions for CPAs on their

website http://www.irs.gov/uac/e-NewsSubscriptions-2Take advantage of this timely service and professional

expertise. There are a wide range of offerings including IRSTax Tips, e-News for Small Businesses, e-News for TaxProfessionals and Quick Alerts.

CPAs can also access the latest developments on the“What’s Hot” page; http://www.irs.gov/uac/ What's-Hot.

CLASSIFIEDS

28ASCPA Newsletter: July, 2013

JOB HUNTING?Let the ASCPA help you! Place your resume in theSociety resume bank. Upon request, it will be forwardedto firms & companies looking to hire a CPA or accountingprofessional. Mail your resume to the ASCPA, 11300Executive Center Drive, Little Rock, Arkansas 72211-4352.

ACCOUNTANT / HR SPECIALISTThe Arkansas National Guard Morale, Welfare andRecreation (MWR) program is a non-profit organizationheadquartered at Camp Robinson, North Little Rock,Arkansas. The organization operates facilities at CampRobinson and at Fort Chaffee in Barling, Arkansasspecializing in retail sales and services to military andcivilian members of the Arkansas National Guard. MWRemploys between 80-100 personnel and sales exceeding$8 million. MWR Is seeking an accountant to performdaily accounting functions and prepare monthly financialstatements as well as serving as the administrator forbenefits, hiring and other related duties. The positionprovides general office support and includes reporting tothe MWR manager. Salary commensurate withexperience. Knowledge and experience with Peachtree aplus. This position entails a great deal of variety andrequires extreme organizational skills. All responses willremain confidential. Send your resume to ArkansasNational Guard MWR, Attn: MWR Manager, MWRComplex, BIdg. 5305, North Little Rock, AR 72199.

SOUTH ARKANSAS ACCOUNTING FIRMis seeking applicants with a Bachelor’s degree and 3-5years of accounting experience. CPA certificate isrequired. Position is ideal for a career oriented individualthat enjoys the challenging aspects of providingaccounting, taxation and management advisory servicesto various types of clients. Excellent salary benefits,continuing education and opportunities for growth. Pleasesubmit resume in strict confidence to [email protected], subject: ASCPA 2013-05.

SENIOR STAFF AUDITOR–LITTLE ROCKArkansas Electric Cooperative Corporation (AECC) isseeking a Senior Staff Auditor. Position is primarilyresponsible for conducting internal audits of AECC’scompliance with NERC’s Reliability Standards. AECCoffers competitive salary and benefits. Requirements: •Bachelor’s degree plus 7 years related experience and/ortraining; • 5 years management experience, or equivalentcombination; • CPA required; • Knowledge of NERCReliability Standards required; • Master’s degreepreferred. Interested applicants should send cover letterand resume to: [email protected].

TEXARKANA ARKANSAS BASEDcompany seeking qualified applicants for an Accountingposition. Visit our website www.cpmproperty.com/carrers.html for more information.

THOMAS & THOMAS, LLPof Texarkana, TX is seeking a candidate at the seniorlevel for their audit staff. The candidate must have astrong academic background and good interpersonalskills. The position will be tasked with planning,performing and completing audits as well as supervisingother staff members. Work experience of 5 or more yearsin public accounting with CPA license is required. Thefirm offers a variety of employee benefits and competitivesalaries. Responses will remain confidential. E-mailresume to Mason Andres at [email protected].

TAX MANAGER - LITTLE ROCK, ARFrost, PLLC has an immediate opening for a TaxManager. This position will be primarily engaged in taxplanning and compliance. Requirements andQualifications: • Bachelor’s degree in accounting •Graduate degree preferred • CPA • Minimum 5 years ofexperience working as a Tax Manager for a publicaccounting firm • Significant experience in applyingrelevant technical knowledge • Project management skills• Strong written and verbal communication skills andpresentation skills • Leadership, teamwork and clientservice skills • Demonstrated integrity within aprofessional environment • Public Accounting experiencerequired. Frost takes a proactive approach to taxcompliance and tax planning to minimize tax costs whileincreasing efficiency during every step of the process. Weassist our clients in planning the organizational structuresneeded to minimize their tax burden. We research andconsult with clients about the best options for theircompany concerning federal, multi-state and localincome, sales, use or property tax issues. We provide theexperience and firepower required to represent ourclients during tax examinations and controversies beforefederal and state authorities including the U.S. Tax Court.We offer more than federal compliance services, as wecan prepare returns for filing in all 50 states andnumerous local jurisdictions. To apply: www.frostpllc.com or [email protected].

ASSISTANT CONTROLLERDunklin Holdings, LLC is located in Stuttgart, AR. We areseeking qualified applicants for the position of AssistantController to join our finance department. If interested,send your resume to [email protected]. All applicantswill be kept confidential.

HAWKINS & GARRETT, CPAs, PLLCin Conway, AR is seeking a CPA with 2-6 years ofexperience in public accounting. We are a wellestablished firm with steady growth and a strongcommitment to customer service. Retirement plan.Opportunity for advancement. No travel. E-mail resumeto [email protected].

TAX MANAGERArvest Bank Group in Little Rock is seeking a TaxManager. Position is ideal for a career oriented individualthat enjoys the challenging aspect of compliance, taxplanning and research for federal and state corporate taxreturns. Excellent salary, benefits, continuing education,and opportunity for growth. Education and/or Experience:• BA/BS degree in accounting or finance or equivalentexperience required; • CPA required; • Six to eight yearsof tax experience, with three to five years of publicaccounting required; • Three to five years in bank relatedtaxation preferred; • Multi-state tax experience preferred.All inquiries will be kept confidential. If interested pleaseapply at https://www.arvest.com/?page=about/arvest/careers/apply&a=y. EOE/AA

BKD IS A NATIONAL ACCOUNTING FIRMReady to hire Experienced Tax Reviewer - Little Rock •Fort Smith • Rogers5 Years ExperienceFlexible Hours • Minimal Travel • Benefits Contact:[email protected]

FINANCIAL AUDITORLittle Rock based institution seeks qualified applicants foraudit positions. Minimum qualifications includeaccounting/finance degree, two or more years ofexperience in auditing, financial analysis or financialstatement preparation. CPA or candidate preferred. Strongcommunication and computer skills required. Extensivetravel required. Competitive salary and benefits package.Send resume to: Finance, 1200 W. 3rd Street, Little Rock,AR 72201 or e-mail [email protected].

STAFF ACCOUNTANTRockfish is a rapidly growing company. We are currentlylooking to add to our finance and accounting department inRogers, AR. The Staff Accountant will be responsibleassisting with month-end close and providing managementwith financial information by researching and analyzingaccounts. Please contact [email protected] for more information or visit our careers pageat http://rockfishinteractive.com/careers.

TIRED OF WORKING LONG TAX SEASONhours with large firms? CPA firm in Conway is offering anexcellent career opportunity for a highly motivatedindividual. Accounting degree required; CPA acceptablebut not required. Candidate should possess a minimum 2years of income tax preparation experience and shouldexhibit strong analytical/ interpersonal skills. Jobresponsibilities include, but are not limited to, monthlycompilations for multiple clients and individual & smallbusiness income tax preparation. We offer excellentwork/life balance. Compensation depends on experience.Confidentially e-mail resume, including pay history orexpected salary, to [email protected], subject: ASCPA2013-03.

ACQUIRE AN ESTABLISHED, SUCCESSFULCPA PRACTICE

Having completed another profitable tax season, it isnow time for me to retire and allow you to advance yourcareer by purchasing this sole CPA practice. Established37 years ago, this practice is located in the BransonMissouri area, in one of the fastest growing counties inthe state. Gross annual revenue: $266,000. Interested e-mail [email protected], subject ASCPA 2013-04.

RIVER VALLEY PUBLIC ACCOUNTING FIRMFort Smith firm seeks a staff accountant and full-charge bookkeeper to join our growing team. Staffaccountant candidate must be a CPA with 3 or moreyears in public accounting. Job responsibilitiesinclude, but are not limited to preparation of individualand corporate tax returns, compilations and reviews.Full charge bookkeeper should be proficient withQuickBooks. The firm offers a variety of benefits andpays competitive salaries. All responses will remainconfidential. E-mail resumes to: [email protected].

OWNERSHIP OPPORTUNITY Central Florida firm with revenue of $1.5 million seekinga talented individual to join our succession team. Idealcandidates will have an entrepreneurial spirit, along withstrong client-management, tax, accounting and business-consulting skills. This is an outstanding opportunity for theright person. Replies will be held in strict confidence.Reply to [email protected].

REGIONS INSURANCESTATE ADMINISTRATOR FOR THE ASCPASPONSORED INSURANCE PLANS CALL VERNONDUTTON FOR AN APPOINTMENT TODAY! Telephone501-664-8791; Toll Free 888-272-6656. E-mail:[email protected].

Classified ads are accepted in theASCPA Newsletter at 75 cents per word,minimum of $15.00. Upon request, may bekeyed to file number and replies forwardedunopened to advertiser. ASCPA Membersmay place job opening classified ads in thenewsletter at no charge.

All information concerning the productsor services advertised in this newsletter isprovided by the dealer, owner, or agent ofthe business. The Arkansas Society ofCertified Public Accountants (ASCPA)makes no representation as to the validity ofthe information provided by the business, asASCPA does not check or verify theinformation provided by the business.ASCPA, or its affiliates is not liable formisinformation, typographical errors ormisprints in the advertisements.

july 2013 ascpa nl

Documents

new cpas

meetemerging cpas

theemerging cpas committee

central arkansas

cpa exam

brand new event

regardingtax reform

chris flynt