mapan · 2018-03-08 · page 2 the mapan vol 55 no . 2, september 2014 region 3 event i had the...
TRANSCRIPT
Greetings! I am writing this message to you from Washington D.C. My family and I are visiting my aunt and uncle prior to attending the National Society of Accountants Annual Convention in Baltimore. It is beautiful out here and we have enjoyed our time thus far.
The NSA convention starts on Wednesday with a Maryland Crab Feast, that should be an adventure...especially for my 6 year old!
MAPA has a strong group of members attending the convention this year: Ellen Stebbins, our NSA State Director; Debra Stapek, NSA Leadership Committee; Virginia Bruns, Education Admin Chair; Lindsey Nelson, Membership Committee; and Steve Hanson, the current NSA President.
We will all attend the business meetings as well as the various CPE offerings that are available. Personally, I will attend the Ethics and Affordable Care Act on Friday. I hope to bring back some great information as well as meet and network with members from other states.
I hope you all have had an opportunity to look at the current MAPA seminar schedule. Newly added are an Ethics and MN Estate seminar on October 23, and Accounting and Auditing Standards on October 31. Please take a look at the website and sign up for the seminars you wish to attend.
We also have been working on scheduling many region meetings. Stay tuned for the meeting notices that you will receive via email to announce the upcoming region offerings. Any and all MAPA members are welcome to attend any region’s meeting.
We are close to school starting, fall, football, extension deadlines, etc. I hope you have taken a moment or more to enjoy the summer. I am so thankful for these few days to spend with my family in D.C. It’s a great renewing, refreshing time before the busy seminar season as well as tax season, which will be here before we know it!
Hope to see you all at a seminar or region meeting soon!
Warm Regards,
Erin Nebben
Erin Nebben
“The MAPA assists its members in achieving success in the profession of accounting and taxation through the advocacy of practice rights and the promotion of high standards in ethics,
education, and professionalism.”
Volume 55- No. 2 A Publication of the Minnesota Association of Public Accountants September 2014
The
MAPANInforming members about accounting, tax, and technology issues
In This Issue Calendar .........................................................10 Executive Director Report ............................. 2 In This Corner ................................................. 6 IRS News & Views .......................................... 7 MAPA Committee Chairs............................12 MAPA Regional Directors ...........................11 MAPA Scholarship Fund ............................... 2 Membership Update ....................................... 8 NSA State Director Report ............................ 5 President’s Message ......................................... 1 Quality Review ................................................ 9 Spotlight On ... Mary Oertli .......................... 3 What’s New at Revenue? ................................ 4
MAPA Officers
President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Erin Nebben, EA(763) 263-3300
First Vice President . . . . . . . . . . . . . David E . Engelking, CPA(651) 464-3231
Second Vice President . . . . . . . . . . . .Heidi Sue Baublitz, CPA(218) 879-4817
Secretary . . . . . . . . . . . . . . . . . . . . . . . Stephanie Johnson, EA(651) 772-2202
Treasurer . . . . . . . . . . . . . . . . . . . . . . . .Jacen Gondringer, CPA(218) 829-3501
First Past President . . . . . . . . . . . . . . . . . James V . Lewis, CPA(651) 437-3356
Second Past President . . . . . . . . Darrel D . Terning, CPA, EA(320) 583-7288
MAPA Executive Offices1000 Westgate Drive Suite 252Saint Paul, MN 55114(651) 290-6289 (800) 501-4521 (MN only)Fax (651) 290-2266Website: www.mapa-mn.com
The MAPANThe MAPAN is the official publication of MAPA. The MAPAN is published eight times annually. All articles must be submitted to the MAPA Office by the 15th of the month to be included in the following month’s publication. Submit all articles and letters to the Editor:
Sherry B . Gunelson c/o MAPA1000 Westgate Drive Suite 252
Saint Paul, MN [email protected]
President’s Message
Upcoming SeminarsSeptember
17-18 GearUp Business Entities, Ramada Mall of America, Bloomington29 Gear Up Farm and Ranch Tax, Holiday Inn, St. Cloud30 Gear Up Technology 3 .0, Holiday Inn, St. Cloud
See the full 2014 schedule on page 10
Vol 55 NO. 2, September 2014PAGE 2 The MAPAN
Region 3 EventI had the opportunity to stop by a chapter 3 region meeting in Lakeville on August 18 and see members (and Board members) James Lewis and Jennifer Schutz provide a seminar on the peer review process. It was a nice example
of members getting together locally to continue their professional development and stay current. This is a program that James and Jennifer are willing to offer in other MAPA regions, by the way, so if you are interested talk with your regional director or contact me at the MAPA offices.
Activity on “Minnesota Tax Talk” “Minnesota Tax Talk” is a new feature on the MAPA website. It operates as a members-only web forum for member questions/comments and members will have the option of receiving a weekly digest of the discussions and/or notices when someone replies to their post(s). The National Society of Accountants (NSA) and the Missouri Society of Accountants have had good success with this type of forum and we are hopeful that this will prove to be a valuable new benefit for the MAPA membership.
We launched this feature close to the start of the last tax season during a planned (and required) platform upgrade to the web/database system
that MAPA uses. This time leading up to the next tax season will be good for members to try it out. By all means, please let us know if you have any suggestions for improving it.
Some activity to date has included has included some industry updates and a firm seeking recommendations for a good IT firm. Check it out and start to use it!
To participate:
1. Go to the MAPA website (mapa-mn.com).2. Select the first option under “resources” which is “Tax Talk Forum”
or follow the link from the homepage.3. There are some instructions for how to participate.
Executive Director ReportEric Ewald, CAE
Eric Ewald
Executive Director Report, continued on page PB
Pay It Forward: MAPA’s Scholarship Fund
How to Give
Tax deductible, this scholarship fund is for third and fourth year accounting majors.
There are a few convenient ways to make a contribution to the MAPA Scholarship Program: You can download the pdf form and mail it in with a check or credit card information; you can donate online; and if you are a member of MAPA you can elect a check-off amount for a contribution to the program at the time of membership renewal.
We encourage you to consider one of these options to help support accounting students in Minnesota. All contributions are greatly appreciated!
More information about your tax-deductible gift may be found online http://www.mapa-mn.com/?scholarship.
Region 3 event speaker.
The MAPANVol 55 NO. 2, September 2014 PAGE 3
Q . How long have you been in the accounting field? Tell us about the firm you work for .
A. I have been in the accounting field for 20 years. We are a small family-owned business. However, by family I refer to the families of the two general partners. Our firm is a two-partner CPA firm with three CPAs, three Staff accountants, two paraprofessionals, and two administrative assistants on a full time basis. We also have three seasonal staff members who join us during tax season. Our primary
focus is on tax preparation and consultation but we also offer a full range of payroll services. We also do monthly, quarterly and annual compilations and QuickBooks consulting.
Q . Tell us about your family .
A. My family consists of my husband and five children — Amanda (Will), Tina (Pete), Ben and Phil (both accountants) and Charlie — and four grandchildren: Jay, Leah, Maddie and Danny.
Q . Your firm is unique because many members of your family work together in the firm . How did that come about, and do you have any suggestions for those of us who are trying to talk our children into trying the accounting field?
A. Our firm is unique in the fact that both of the partners have family members working at the firm. I am the spouse of one of the partners and two of our paraprofessionals are also related to the accountants. It came about accidentally — but as parents, we did encourage our children to take an active role in working at the firm. We also encouraged them to work outside of the firm (in retail, restaurants, and other industries) so that they could make an informed choice about their career options. We did not pressure them into coming back and working at the family business. However, at the same time we did point out the benefits of working in a small family business. Once you take away the negative of the long tax season, the small to midsize accounting firm is not a bad place to work. I believe another key to making it work is to encourage everyone to participate in a meaningful way. Respect what each person brings to the job, even if some days it is just a smile. That smile may be the only bright spot in the office on April 10.
NOTE: One of our sons who majored in accounting is going to work for one of the BIG 4; so at this point we have not been 100% successful in getting them to come to a small practice.
When you talk to your children or a niece or nephew, point out all the aspects of the accounting field. You are not just crunching numbers. You
are an advisor, both financially and personally. Many of the financial decisions that people make affect most aspects of their lives. There are many rewards when you help someone make a financial decision that helps them through some hard times, or you point out an area where they can save money or even make some money. You become a hero and respected, trusted advisor.
Q . What do you like best about being an accountant?
A. I enjoy the people I meet and develop a lasting relationship with. When I help them sort out and understand their finances and they see how it helps them, not just financially but also to remain happy, it is very rewarding. I also enjoy helping them understand the notices that they receive and help them respond to them. It seems to take the scariness out of the IRS and MN Revenue.
Q . How has the accounting field changed over your career?
A. The accounting field has become more and less competitive over the years. By that, I mean that the introduction of technology and the do-it-yourselfer has made it more competitive and at the same time, fewer people are going into public accounting and that has made it less competitive.
Another area of accounting that has changed is due to the availabiity of technology, it has now become a global marketplace. Because of the internet, all people have access to a world of information including investment options from around the globe. It is also now possible to have clients around the world rather than just in a certain mile radius.
Q . What are your hobbies?
A. Reading, walking, spending time with family and friends (especially the grandkids). I do enjoy traveling but do not do as much as I would like.
Spotlight on … Mary OertliMAPA Member
Mary Oertli
Mary Oertli and her family.
Spotlight On . . . Mary Oertli, continued on page 8
The MAPAN Vol 55 NO. 2, September 2014PAGE 4
What’s New at Revenue?Larry Mastbaum, Senior Editor, Communications Division
2010 Military Credit Expires Oct. 15The Department of Revenue sent over 2,600 letters to Minnesota service members last month to remind them of a refundable tax credit that expires soon. The Credit for Military Service in a Combat Zone for time served in 2010 will expire on Oct. 15, 2014.
The credit equals $120 per month served in a combat zone or qualified hazardous-duty area. To claim the credit, file Form M99, available on our website at www.revenue.state.mn.us.
Applications are due April 15 of the year after serving in a combat zone. Service members must claim the credit within 3½ years of the due date or the credit will expire. For example, the 2010 Credit for Military Service in a Combat Zone was due April 15, 2011, and expires Oct. 15, 2014. Credits from tax years prior to 2010 have expired. But individual circumstances, including additional time served in a combat zone, may extend the time allowed to file for these credits.
For more information on the military credit, visit the Members of the Military page on our website or call 651-296-3781 or 1-800-652-9094.
Military Pay Subtraction Extended to Active Guard Reserve DutyStarting with tax year 2014, the income tax subtraction for members of the Minnesota National Guard also includes pay for full-time duty in Minnesota (Title 32 Active Guard/Reserve duty). This affects about 1,000 National Guard members and reduces their income tax by an average of $3,000.
To claim the subtraction, complete Schedule M1M and include it when you file a Minnesota income tax return. We will post 2014 forms and instructions on our website in January.
E-Filing Improvements For Business TaxesThe department is improving how you file e-file business tax returns, starting with tax year 2014. These changes include:
• We’re converting Fiduciary Tax returns to MeF (Modernized Electronic Filing) so we can process these returns more efficiently; all other taxes are already MeF. For more information, check with your software provider.
• We’re eliminating pop-up “warnings” when you e-file business tax returns to make it clearer when you need to fix a mistake that would keep us from processing a return. We have removed 5 of the warnings and changed 2 others to error codes. The codes are: • 0683 – Minnesota Tax ID must be registered under the correct
Federal Employer Identification Number (FEIN). To change or correct your tax type, please call Business Registration 651-282-5225.
• 0266 – MN Tax ID is required and must match Department of Revenue Records.
We’ll provide more information about these changes on the What’s New/Tax Professionals page on our website and by email. (Sign up for Tax Preparer email updates.)
Douglas County Local Sales Tax Begins Oct. 1Starting Oct. 1, 2014, Douglas County will have a 0.5 percent sales and use tax. The Department of Revenue will administer this tax. Revenues will fund road improvements as identified in the Douglas County Highway Improvement Plan dated April 1, 2014. This tax applies to the same items that are subject to the state Sales and Use Tax. It does not apply to sales of motor vehicles registered for road use.
For more information about local taxes, see Fact Sheet 164, Local Sales and Use Taxes.
Seminars Designed For You!
Gear Up Technology 3.0Date: Tuesday, September 30, 2014Speakers: Carl Heintz, CPA & Rick Oelerich, LPA, EA
This seminar is designed to help practitioners navigate through the maze of technology, enabling them to maximize productivity and efficiency while maintaining control over security and privacy.
Content:We all face technology issues practicing tax and accounting. This seminar helps busy practitioners use the best in new technology in their practices. We demonstrate practical real-world solutions to solve practice issues. Content includes:
• Windows 8 — is it prime time yet?• Using the cloud to multiply your efficiency and effectiveness• The mobility of data access and the handheld computer:
smart phones, tablets, and ultra-books
The MAPANVol 55 NO. 2, September 2014 PAGE 5
National Society of Accountants (NSA) State Director ReportEllen E. Stebbins, EA, RAP, ABA, ATA, ATP and ARA, NSA State Director
B u f f a l o s A r e D a n g e r o u s . D o Not Approach! This sign is posted everywhere in Custer State Park in the Black Hills of South Dakota. This summer my husband and I rode our motorcycle on trails in the Black Hills
and saw the most amazingly beautiful scenery and wildlife. On one trail, we rode by a bull buffalo resting in the ditch. A few yards later a girl with a camera was walking away toward her motorcycle ride. I hope she made it back before the buffalo did. As we rode by, I thought it is best to obey signs and regulations for your own good and safety. Some new ones are listed below.
Circular 230 Revised – Change Your EmailPlease change your email settings and eliminate the old Circular 230 disclaimer because final regulations amending Circular 230 took effect June 12. One of the changes affects the “covered opinions.” Most tax professionals put the disclosure the tax advice could not be relied on to avoid IRS penalties in every email. The violation saying the IRS requires something needs to be deleted from your email.
Invalid PTIN – IRS will be contacting youThe Return Preparer Office will mail letters to approximately 5,000 return preparers who are preparing tax returns without a valid preparer tax identification number (PTIN). Letter 4731 is being sent to over 500 return preparers who are using a legacy PTIN that was obtained prior to September 2010 and has never been renewed in the new online PTIN system. Letter 4732 is being sent to over 800 return preparers who are using a Social Security number as their preparer ID number instead of a PTIN. In addition, Letter 4966 is being sent to over 3,600 return preparers who are using an expired PTIN. Anyone who receives a letter and has questions should contact the PTIN helpline number.
NSA Political Action Committee Protects Your Right to PracticeNSA President Steven J. Hanson (2013-2014) says, “Too often these days we hear more about Wall Street than Main Street and our aim is to make sure Main Street, the backbone of America, is heard loud and clear to best serve our members and our community. We accomplish this by maintaining a thriving Political Action Committee to get the attention of Congress. When Main Street is heard, all of America wins.”
NSA and NSA PAC (Political Action Committee) have worked in conjunction for many years to ensure that the key members of Congress who exert influence on tax matters and small business issues know the
impact of their decisions on the tax professional community, both in terms of legislation and compliance with any regulations that are issued as a result of these laws. It is important for you, as an NSA member, to understand that NSA continues to work to ensure:
• The fundamental fairness of tax laws imposed on NSA members and their clients;
• That tax laws are administrated in a fair and equitable manner by the IRS; and
• That all NSA members have access to continuing education programs allowing them to gain the knowledge necessary to be ethical and competent professionals in the tax and accounting profession.
This year at the NSA Annual Meeting in Baltimore, we will have a silent auction to help fund the Political Action Committee. The NSA-PAC gives to a bipartisan mix of Senate and House members that serve on committees having responsibility for tax legislation, IRS oversight or that promotes the interests of small business.
You can join a group of NSA members and become a Capitol Club Member with a contribution of $150 or more. You will receive the Capitol Club Update, an exclusive email publication.
Sustaining memberships are also available with a contribution of $50. Both Capitol Club and Sustaining members are spotlighted at the NSA Annual Meeting. You can find more information at www.nsacct.org
NSA is working hard to protect our right to practice. We can do our part by following the signs and regulations that we are required to adhere to. I know I was safer than that girl walking away from the buffalo.
Ellen Stebbins
Find us on Facebook...Minnesota Association of Public
Accountants
The MAPAN Vol 55 NO. 2, September 2014PAGE 6
Past President Virginia Bruns has been active with MAPA for 21 years including serving as President. Virginia’s daughter, Erin Nebben, was elected president at the June convention at Treasure Island. Congratulations, Erin. A mission statement was adopted to help members achieve success and to promote a high
standard of professional ethics. The July/August MAPAN was one of our best, including Erin’s president’s report. The other articles included important information, with some humor in the Spotlight when Eric Goddard responded that his favorite hobby, being the father of two young boys, is spending a lot of time stopping fights. Editor Sherry Gunelson has done a nice job for the last two years getting the articles organized for this professional newsletter with valuable information for all MAPA members.
Professional ethics for publicly traded companies. Speaking of ethics that Erin Nebben referred to, we know there are several circumstances that can impair your reporting when it comes to preparing financial statements and disclosures about your client. The Star Tribune had an article in its business section on May 12, 2014, that I thought was interesting. It said, “A publicly listed company and the board of director’s audit committee is supposed to oversee financial reporting and disclosures. Ideally, it should operate with enough independence to assess a company’s accounting practices objectively. But it turns out that many executives and internal auditors move in the same circles: 40% of audit committee members have social ties to the CEO, whether through charities, having attended the same college or having worked at the same company, according to a study of 2,000 U.S. firms published in the Accounting Review.” The article did not mention anything about there being false financial statements reported as a result of the lack of independence between the CEO and the board of director’s internal audit committee.
Professional ethics for our nonpublic companies. I don’t have to tell you that we are required to have 4 hours of professional ethics each year. I believe that helps remind us to be as independent as possible when preparing financial statements and accompanying notes. There are many issues that AICPA alleges will impair our independence but not preclude us from preparing the statements. We are required to disclose in our accountant’s letter that we are not independent, period. For as long as I can remember, I always thought it would be a good idea if we could disclose the reason. Now, after decades, the AICPA board of directors finally changed the rule and will let us disclose the reason. The AICPA has always alleged we lack independence if our fee is not paid before we issue the next year-end financial statements. I wonder if they ever gave any consideration to lack of independence for our clients that pay promptly? It is something to think about.
Shark Tank participants investing in the future. I occasionally watch the TV show Shark Tank. Six billion/millionaires (Mark Cuban, Barbara Corcoran, Kevin O’Leary, Lori Greiner, Daymond John and Robert Herjavec) will consider making an investment in a company with the potential for growing and providing a healthy return on the investment requested. Individuals who qualify to appear on the show and request the money offer a certain percentage of business ownership. What I find interesting is the fact that none of the Sharks request financial statements and verbally tell what their sales have been and what the profit was, and why they need the money to grow their business. The majority requesting money do not get it, other than the publicity they get for being seen on television. Next, the money requested may vary from $50,000 to $1 million. When one of the Sharks agrees to make the investment, he/she and the recipient shake hands and that is it. I only mention this because the deal they make is so far outside the normal standards for doing business. However, these Sharks have a knowledge of industry and they have the experience for managing a business and make it profitable.
How to lose money on an investment. I had a client tell me that several years ago, a friend of his owned a mobile home in northern Minnesota and was making installment payments on a contract for deed (CD) with a balloon payment for $23,000 that was due. He was on Social Security Disability Income and didn’t want to lose the house, so my client paid the $23,000 and took a CD for the home that was valued at $25,000. To make a long story short, his friend died in 2007 and now he owned the mobile home with a current balance of $22,000. He hired a real estate agent and an appraiser who came up with a value of $22,000. Two years later, they had a buyer with no money for a down payment or money for his share of the closing costs. In short, it cost my client $4,000 to sell the property, not counting about $2,500 for repairs and upkeep. The buyer was single with a son, dog and cat; he made three payments and moved out because his son became ill and they had to move closer for treatment. From 2009 to 2014, the mobile home had six buyers who made a few payments and continued to damage the interior of the property. The sale price dropped from $22,000 to $10,500 and to $6,000 for the property that was trashed by the last buyer. My client said he was pleased to get a cash offer and wanted to close as fast as possible. His tax returns include multiple sales and losses for the same property.
Medtronic, Inc. may move its headquarters overseas. Sherry Gunelson, the editor for MAPAN, started her career by working in the tax department for the giant Cargill, Inc. and suggested I mention that Medtronic, Inc. may move overseas. The Star Tribune recently reported that Medtronic hired two former U.S. senators to lobby their ex-colleagues to vote against legislation that could undermine their plans to move overseas and purchase the Irish company Covidien for $42.9 billion. Covidien is another medical device company and collectively they could better serve patients—besides saving billions in taxes. Question, why do corporations move overseas?
In This Corner...Jerry Deiley, CPA, Technical Editor
Jerry Deiley
In This Corner..., continued on page 7
The MAPANVol 55 NO. 2, September 2014 PAGE 7
Direct Deposit LimitsIn an effort to combat fraud and identity theft, new IRS procedures effective January 2015 will limit the number of refunds electronically deposited into a single financial account or pre-paid debit card to three.
The fourth and subsequent refunds automatically will convert to a paper refund check and be mailed to the taxpayer.
Taxpayers also will receive a notice informing them that the account has exceeded the direct deposit limits and that they will receive a paper refund check in approximately four weeks if there are no other issues with the return. Taxpayers can track their refunds at Where’s My Refund?
The vast majority of taxpayers will not be affected by this limitation, and we encourage taxpayers and tax preparers to continue to use direct deposit. It is the fastest, safest way for taxpayers to receive refunds.
The direct deposit limit will prevent criminals from easily obtaining multiple refunds. The limit applies to financial accounts, such as bank savings or checking accounts, and to prepaid, reloadable cards or debit cards.
However, the limitation may affect some taxpayers, such as families in which the parent’s and children’s refunds are deposited into a family-held bank account. Taxpayers in this situation should make other deposit arrangements or expect to receive paper refund checks.
The new limitation also will protect taxpayers from preparers who obtain payment for their tax preparation services by depositing part or all of their clients’ refunds into the preparers’ own bank accounts. The new direct deposit limits will help eliminate this type of abuse.
Direct deposit must only be made to accounts bearing the taxpayer’s name. Preparer fees cannot be recovered by using Form 8888 to split the refund or by preparers opening a joint bank account with taxpayers. These actions by preparers are subject to penalty under the Internal
Revenue Code and to discipline under Treasury Circular 230 (also, see Circular 230 Tax Professionals page).
Information Reporting by EmployersThe IRS has released draft forms that employers will use to report on health care coverage that they offer to their employers. In accordance with the IRS’ normal process, these draft forms are being provided to help stakeholders, including employers, tax professionals, and software providers, prepare for these new reporting provisions and to invite comments from them. Draft instructions relating to the forms are expected to be posted to IRS.gov sometime in August. Both the forms and the instructions will be finalized later this year. You can view draft forms at www.irs.gov/draftforms.
IRS News & ViewsAnn Makres, SBSE Taxpayer Education and Communication
Quotable Quotes. A professor had this on the blackboard: “Women without her man is nothing.” He asked his male students to punctuate the sentence; they came up with, “Women, without her man, is nothing.” Then he asked his female students to punctuate. Their result? “Women! Without her, man is nothing.” ~An email from former shipmate Billy O’Callaghan
In This Corner..., continued from page 6
MAPA RegionsAre you involved in your region? Be sure to attend your regional events to stay connected!
Region 1 - West Metro Counties:Anoka, Carver, Hennepin, Isanti
Region 2 - East Metro Counties:Chisago, Ramsey, Washington
Region 3 - Southern Counties:Blue Earth, Brown, Cottonwood, Dakota, Dodge, Faribault, Fillmore, Freeborn, Goodhue, Houston, Jackson, LeSueur, Martin, Mower, Murray, Nicollet, Nobles, Olmsted, Pipestone, Rice, Rock, Scott, Steele, Wabasha, Waseca, Watonwan, Winona
Region 4 – West Central Counties:Big Stone, Chippewa, Kandiyohi, Lac Qui Parle, Lincoln, Lyon, Pope, Redwood, Stevens, Swift, Traverse, Yellow Medicine
Region 5 - Northwest Counties:Becker, Beltrami, Cass, Clay, Clearwater, Douglas, Grant, Hubbard, Kittson, Koochiching, Lake of the Woods, Mahnomen, Marshall, Norman, Otter Tail, Pennington, Polk, Red Lake, Roseau, Wadena, Wilkin
Region 6 - Central Counties:Benton, Crow Wing, McLeod, Meeker, Mille Lacs, Morrison, Renville, Sherburne, Sibley, Stearns, Todd, Wright
Region 7 - Northeast Counties:Aitkin, Carlton, Cook, Itasca, Kanabec, Lake, Pine, St. Louis
The MAPAN Vol 55 NO. 2, September 2014PAGE 8
The strength and vitality of the MAPA organization depends upon the strength and vitality of its members. One of the greatest benefits of being a member in MAPA is the relationships and information you can share and learn from other MAPA members. In addition to providing excellent CPE, MAPA provides a platform for the exchange of information, questions and fresh ideas between professionals in similar firms.
Consequently, MAPA is always striving to grow its membership. We recently had a “Flash Sale,” sending an email to non-members who had previously attended seminars, offering membership at a discounted
price if they joined within 24 hours. We had a great response and obtained 10 new members.
At this point, 3½ months into our fiscal year, MAPA has 897 members. Last year, MAPA ended the year with 944 members. If MAPA membership has benefited you, we ask you to give back. Join a committee or reach out to your friends and invite them to share in the benefits of MAPA membership.
Flowers leave part of their fragrance in the hands that bestow them – Chinese Proverb
Q . How long have you been involved in MAPA? How has MAPA helped you in your career? Do you have a favorite MAPA seminar?
A. I am new to MAPA. I just joined this year, but have gone to many MAPA seminars over the years. (I should have seen the value many years ago). My favorite thus far was the last one I attended (which is often the case), “Practice Development and Management”. It was very informative and offered sound advice for both old and new accountants.
Q . What would you tell a student who is majoring in accounting about becoming an accountant and the value of being a member of an organization such as MAPA?
A. We don’t just count beans. I think I have touched on the rewards the accounting field has to offer already, it is a fast-paced, ever-changing but very scientific industry in that it always adds up. It has quickly become
a global industry a n d o f f e r s opp or tu n i t i e s in a l l s izes of companies. You can be a one-man (woman) show out of your home, or you can work
as the CFO for a Fortune 100 company. You can be in a back office crunching numbers with little to no contact with people or you can be the financial advisor to the President of the United States. Each must have a strong accounting background, but put that knowledge base to use in very different ways. The possibilities are almost endless. Every industry in all walks of life must account for what they produce and sell. From agriculture to medicine to space exploration, there is an accountant helping to analyze the success of the business.
Joining a professional organization will give you access to a wealth of knowledge and experience that would take you a lifetime to achieve. It will give you people to use as sounding boards, mentors and friends.
Q . What do you see as the biggest challenges for accountants going forward?
A. The fast-paced world that causes changes to the tax code and industry standards. Keeping abreast of all the changes to provide quality service to your clients.
Q . What do you think MAPA could do differently or better to serve you and your peers as your professional organization?
A. I think you are doing just fine. Keep up the good work.
Spotlight on … Mary Oertli, continued from page 3
Mary Oertli with her co-workers.
Membership Update...Sherry Gunelson, CPA, MAPAN Editor, Membership Committee Chair
The MAPANVol 55 NO. 2, September 2014 PAGE 9
Peer review of CPA firms emerged in the 1970s as firms engaged other CPA firms to evaluate and monitor their accounting and auditing practices. The peer review process became more prevalent and uniform as to procedures in 1977 when a voluntary peer review program was established by the AICPA’s Governing Council. In 1988, the AICPA membership approved mandatory peer review as a condition of AICPA membership. The program as approved by the AICPA membership was based on two fundamental principles: peer review would be remedial, educational, and focus on improvement, rather than punitive; and the results of peer review would be confidential. Later, the Minnesota statutes and rules added requirements for all CPA firms and Registered Accounting Practitioners (RAPs) to undergo peer review every three years as a condition for initial licensing and license or registration renewals.
The impetus for peer review was to some extent a reaction to criticism from outside the profession related to audit failures, particularly of public companies. However, peer review was also driven by a realization within the profession that an objective and uniform system of assessing quality of CPA firms was in the best interest of public accounting.
Peer review today
Fast forward to 2014: The pressure on the profession from regulators, legislative bodies and the public continues to have a profound influence on peer review. We are seeing an increased emphasis on a punitive aspect to peer review from Boards of Accountancy, federal regulators, and even to some extent from within the profession. Transparency is being promoted as a desirable trait, in place of confidentiality which was an original principle. Peer review for public companies has already been relegated to the Public Companies Accounting Oversight Board (PCAOB) as an outcome of the Sarbanes-Oxley legislation, in place of the profession self-monitoring. The public interest in the performance of CPA firms, and in the quality assessment of these firms, is being advanced as the primary cause for increased scrutiny of CPA firms, as well as RAP firms.
The profession is struggling to retain self-assessment through peer review. Certain regulators are questioning whether the self-assessment process of peer review is working. There is increased comparison of the results of regulatory reviews to the results of peer review. The findings of regulatory reviews performed by the Department of Labor, Government Accounting Office, Health and Human Services and other governmental agencies are compared to the findings and number of pass with deficiency or fail reports on peer reviews. The agencies are challenging the profession on why the deficiency rate identified in their reviews is significantly higher than the deficiency rate reported by peer reviews.
The public accounting profession enjoys a level of public confidence that is at the very top of all professions. All of us in the profession have a vested interest in recognizing, maintaining and increasing this public trust. Some of the actions we can take to advance this trust are:
• Perform the audits, reviews, compilations and other services at the highest degree of professionalism at all times.
• Stay current on changes in professional standards.• Instill a “tone at the top” that places the highest emphasis on
quality in performing engagements.• Perform every engagement as if it will be subject to intense
scrutiny by peer reviewers, regulators and other oversight agencies.
• Make sure that your self-monitoring of engagements is comprehensive and objective.
• Carefully consider the needs of the users of the financial services you perform, rather than just the needs and wishes of the client.
• Take pride in the profession and in each and every work product you produce.
If we only concern ourselves with our performance during a peer review period, we have lost the battle. Continuous improvement and attention to quality is imperative. If we don’t individually police our accounting and auditing practices, others can and will do so.
MAPA Quality ReviewGerard Stifter, CPA, Quality Review Committee
A brief history of peer review
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The MAPAN Vol 55 NO. 2, September 2014PAGE 10
2014September
17-18 GearUp Business Entities, Ramada, BloomingtonThis seminar is designed for practitioners who work with corporation and partnership taxation. It is also designed to give knowledge on what type of business entity would be appropriate for a particular client.
19 MAPA Board Meeting, Ramada, Bloomington
29 GearUp Farm & Ranch Tax, Holiday Inn, St. Cloud This seminar is designed for practitioners who work with taxation of farmers.
30 GearUp Technology 3 .0, Holiday Inn, St. CloudThis seminar is designed to help practitioners navigate through the maze of technology, enabling them to maximize productivity and efficiency while maintaining control over security and privacy.
October2 Accounting & Auditing Student Conference, Minneapolis Convention Center
23 Ethics, Malpractice & Enforceability of Damage Limitations, Ramada, Bloomington (1/2 day – a.m.)
All accountants who are required to obtain ethics credits for relicensure should plan to attend this seminar. This program will address strategies for solving ethical dilemmas encountered in today’s business environment.
23 MN Estates & Trusts Update, Ramada, Bloomington (1/2 day – p.m.)
This seminar is designed for accountants who prepare Minnesota estate tax returns. The attendee should have some basic knowledge of estates and trusts.
31 Accounting & Auditing Professional Standards Update, Ramada, Bloomington
This seminar is for accountants in public practice and industry who need a comprehensive review of recent accounting and auditing pronouncements. It will provide participants with an overview of new developments in the area of accounting and auditing. Coverage will be updated to reflect the most recently issued official pronouncements. The course will highlight
Happenings... From Around the State
MAPA CAlendAr For more seminar information and registration, please visit www.mapa-mn.com.
issues faced by private companies and the accountants who provide a range of services to them.
November5-6 GearUp 1040, Ramada, Bloomington
This seminar is designed for accountants who prepare personal income tax returns and also do tax planning for their clients.
12-13 GearUp 1040, Holiday Inn, St. CloudThis seminar is designed for accountants who prepare personal income tax returns and also do tax planning for their clients.
December 1 Bordering States Tax Seminar, Ramada, Bloomington (1/2 day – a.m.)
This program is designed to update anyone doing state income tax returns for clients in the bordering states of Wisconsin, Iowa, and North Dakota.
1 Minnesota Tax, Ramada, Bloomington (1/2 day – p.m.)
This program is designed to update anyone doing state income tax returns, sales and use tax, withholding and working with other tax issues for the State of Minnesota.
2 MAPA Board Meeting, Ramada, Bloomington
16-17 GearUp 1040, Ramada, BloomingtonThis seminar is designed for accountants who prepare personal income tax returns and also do tax planning for their clients.
2015January
7-8 GearUp 1040 – Ramada, BloomingtonThis seminar is designed for accountants who prepare personal income tax returns and also do tax planning for their clients.
The MAPANVol 55 NO. 2, September 2014 PAGE 11
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MAPA REGioNAL DiRECToRS
Region 2 (East Metro) . . . . . . . . . . . . . JoHN TRUDEAU, CPA(651) 774-8785 | Email: [email protected]
Region 3 (Southern) . . . . . . . . . . . JENNiFER SCHUTz, CPA(218) 829-3501 | Email: [email protected]
Region 6 (Central) . . . . . . . . . . . . . . . . . . . . . DERik BRENNY(218) 829-3501 | Email: [email protected]
At Large . . . . . . . . . . . . . . . . . . . . . . . . . . . DEBRA YERYS, EA(612) 272-3434 | Email: [email protected]
Welcome New Members
AdvertisementFor sAle: small tax practice, some write up and payrollLocation: S.W. Minneapolis suburb. Goal is retirement.Please phone: John 952-914-0852
• Amanda Geslin, Minneapolis, Region 1• Andy Vesely, Brainerd, Region 6• Anna Blenker, Melrose, Region 6• Beatrice Roark, Saint Francis, Region 1• Bernard Oertli, Rochester, Region 3• Bill Graham, Rosemount, Region 1• Christina Bellert, Minnetonka, Region 1• Christine Jackson, Melrose, Region 6• Cynthia Gardner, Melrose, Region 6• Edward Meyer, Willmar, Region 4• Eric Goddard, Rochester, Region 3• Jana Hald, Willmar, Region 4
• Katie Kraemer, Brainerd, Region 6• Kyle Staff, Brainerd, Region 6• Lee Hockert, Alexandria, Region 5• Lisa Brueske, Plainview, Region 3• Mary Kate Kelley-Scheidler, Maple Grove, Region 1• Molly Horsch, Hastings, Region 2• Nick Kellner, Rochester, Region 3• Rachel Pleschourt, Rochester, Region 3• Shelby Peters, Delano, Region 1• Sherry Heffernan, Corcoran-Hamel• Songhong Yang, Hastings, Region 2• Wendy Haburn, Alexandria, Region 5
Minnesota Association of Public Accountants1000 Westgate Drive, Suite 252Saint Paul, MN 55114
ADDRESS SERVICE REQUESTED
September 2014 Newsletter
ADViSoRYJames V. Lewis, [email protected]
BYLAWSMark Nicholson, [email protected]
Jennifer Schutz, CPA 651-437-3356 [email protected]
CoNVENTioNVirginia Bruns, CPA, EA, [email protected]
Ellen Stebbins, EA, RAP, ABA, ATA, ATP and [email protected]
EDUCATioNDebra Yerys, [email protected]
ETHiCSSteven Alaspa, [email protected] Tim Robinson, CPA 320-286-5552 [email protected] ExECUTiVE DiRECToRCoNTRACT REViEWDavid Engelking, [email protected]
FiNANCEJacen Gondringer, [email protected]
LEGiSLATiVE/MN STATEBoARD LiAiSoNKurt Juergensen, [email protected]
Al Maves, CPA507-282-9488 [email protected]
MAPANSherry B. Gunelson, [email protected]
MEMBERSHiP/PUBLiCRELATioNSSherry B. Gunelson, [email protected]
MN DEPT . oF REVENUE/iRS LiAiSoNDavid Shabaz, CPA, [email protected]
NoMiNATiNGJames V. Lewis, [email protected]
QUALiTY REViEWJill Hoffmann(320) [email protected]
SEMiNARVirginia Bruns, CPA, EA, [email protected]
Darrel D. Terning, CPA, EA 320-583-7288 [email protected]
STRATEGiC PLANNiNGAl Maves, [email protected]
STUDENT CoNFERENCEStephanie Johnson, [email protected]
TECHNoLoGYMatthew Dahl, [email protected]
Minnesota Association of Public AccountantsCommittee Chairpersons 2014-2015
MAPAMinnesota Association of Public Accountants