Board Meeting Highlights
Dakota State Board of Accountancy
Notes: Feb. 7, 2014
Nikki Schmaltz, George Kelly, Rick Lee, Faye Miller, Pete Hoistad, Mandy
Harlow, Jim Abbott
(11-15-13): Approved [motion: Faye ; 2nd: Pete;
carried]. Jim mentioned a spelling error.
Jim and George shared comments. Funds will be moved out of checking. The
financials were approved [Motion: Pete; 2nd: Rick; carried].
The group addressed a question which arose with one of the board-reviewed CPE
forms – the class taught was quite basic. It is not current practice to
ensure that those moving into public practice have taken relevant recent CPE.
There is concern with the “lightness” of some of the CPE that is being taken.
Also raised were the level of attentiveness in CPE classes, and that perhaps
pre-approval should be considered. NASBA has a task force that will be
addressing CPE. Pete moved to take no action on the specific case; 2nd:
George; carried. We will notify the CPA involved. Jim will suggest a
discussion point for the June NASBA meeting: how specific are state CPE
requirements (do they check for practice-relevant CPE, use self-study limits?
); he will suggest a related quick poll so that information is on hand.
Reinstatement was approved for David Lakefield, provided the firm permit
is also reinstated [Motion: Pete; 2nd: Rick; carried].
Reinstatement fees will be expected for firm and individual; (Jim will seek
legal guidance if the regulation is unclear). Another applicant was deferred
until a background check is completed [Motion: Pete; 2nd: Faye;
carried]. Reinstatement was approved for John Anderson, pending
background check [Motion: Pete; 2nd: George; carried].
A pending application includes some coursework in pursuit of a foreign
credential. It was agreed that professional association education programs
will not be considered as college credit [Motion: Rick; 2nd:
George; carried]. We will notify the applicant of the denial, due to this
policy. Another applicant was seeking college credit for military education
that was not approved by a college. The added credit was denied, but
internship credits will be offered as a solution for the remaining credits
[Motion: Pete; 2nd: Rick; carried].
Case 2013-6. A board member reported to the group, indicating that both
parties seemed to be at fault, various concerns were raised, and the CPA
believes he acted properly and that the client is trying to punish him; there
doesn’t appear to be any substance with which to act against the CPA; in
addition it appears that the CPA is leaving the profession. A motion passed
to notify both parties that the Board has reviewed the matter, and will not
be acting in the case [Motion: Pete; 2nd: Faye; carried].
A company has been noticed using the term
“agaccounting”; legal counsel will be asked to contact the entity about the
use of this term.
review reports of two state-based firms were reviewed by a board member. Rick
reported on the Widmer Roel documents, Nikki on the Brady Martz documents.
The PCAOB reviews differ from those of the peer review program, in that there
is no opportunity for the firm to explain the rationale or professional
judgment behind an action. A peer reviewer discusses the findings, so they
have a chance to understand the process involved.
[Motion: George; 2nd: Pete].
Dakota State Board of Accountancy
July 29, 2013 12 pm
Schmaltz, George Kelly, Faye Miller, Rick Lee, Pete Hoistad, Jim Abbott
began at 12:06,
with a welcome to the new board member, Peter Hoistad.
George nominated Nikki for president; seconded by Rick, and carried. Rick
nominated George for Secretary-Treasurer; seconded by Pete, and carried.
MINUTES (MAY 6 and 23)
Approved by motion from Rick, second from George;
FINANCIALS (June 30)
Jim will correct the payables account to $10,000. He will check into
obligations to use the Bank of North Dakota for credit card processing and
the related checking account. We will start paying payroll taxes and
retirement deposits on the payroll date. George moved approval of
disbursements (14482 to 14576), and the financial statements; second by Pete;
The group discussed
the idea of changing the payroll agent to NDCPAS, which could reduce
retirement and health insurance expenses. The new health insurance exchange
plan rates should be available Oct.
1, and we can examine those options. Jim will pursue a
PERS response about changing agents, and will check on the impact of leaving
the defined benefit plan before retirement.
E.D. PERFORMANCE /
The group met in executive session, with Jim absent. When he returned,
comments were shared: The pay scale is maxed out, and we can’t really “grow
the business”, we just need to keep properly focused and the group concurs
with the focus areas Jim had proposed; doing these well is imperative, though
won’t affect compensation. The group is comfortable with current
compensation, and if savings are achieved in the payroll area (being
explored), the group would be inclined to maintain a consistent overall pay
package. Travel is a possible benefit not applicable to other staff. The
group is happy with performance. One desired change is to not provide a
“tentative conclusion” to complaints; Jim will change this approach.
The group will
conduct a review of a sample of CPE forms in the future.
The budget was approved, with adding $5K in board expenses and $2K in
staff travel [motion: Pete; 2nd: Rick; carried].
FINANCIAL STATEMENT /
Jim will notify AgCountry legal counsel that we
are awaiting action on a related exposure draft before issuing a decision,
and that we plan to alert non-public CPAs about current restrictions on CPAs
issuing “plain paper” financials. A message will be issued to all in-state
There no objection to reinstatement of Barimore Maring’s CPA certificate.
Sept. 22 and Nov. 15
were set as possible meeting
OWNERSHIP. A question was received as to whether corporate entities
could own part of a CPA firm. We will seek guidance from legal counsel on the
EVALUATION. Approval of the NASBA service will be
deferred. We will require all applicants to obtain a NACES.org member
evaluation of foreign education.
Jim had notified Board earlier that our computer system is quite secure.
Case 2013-3: closed
[Motion: Rick; 2nd: Pete; carried].
Case 2013-1: there
was no objection to closing the case.
Case 2013-4: for
information (staff handles these “use of accounting” cases, when the party
ADJOURNED: 3:09 pm [Motion:
George; 2nd: Faye; carried]
North Dakota State Board of Accountancy
Meeting Notes: May 23,
2013. 11:00 am ______________________________________________
participants: Nikki Schmaltz & George Kelly in Fargo, Rick Lee, Ron
Johnke, Jim Abbott, Faye Miller. The meeting began at approx. 11:10 am.
The purpose of the
meeting was to address the work performance of Jim Abbott, in advance of the
Joint meeting, next week. Jim left the meeting.
Dakota State Board of Accountancy
May 6, 2013. 12:00
Participants: Nikki Schmaltz, Rick Lee (by phone), Ron Johnke,
Mandy Harlow, Jim Abbott, George Kelly & Faye Miller. The meeting
began at 12:02.
MINUTES (1-25-13): Approved [motion: Faye; 2nd:
Jim commented on a few balance sheet and income statement items, and
reported on the remodeling project. He will check that the Society reimbursed
the Board for ½ of the staff dinner costs. He will also check on the -$929
miscellaneous income item and the YTD staff compensation accounts, and report
back to the group. The financials and disbursements 14419 to 14481 were
approved (contingent on Jim response on the questions raised) [motion: Faye;
2nd: Ron; carried].
Various adjustments were made, the final approval will be in July. George and Nikki will serve on the Joint
Compensation group, and have authority to commit the Board. Nikki will share
compensation information with George that Faye collected last year.
The question was asked if there were any special projects the Board would
like staff to focus on. It was suggested that more information on national
developments be shared with the Board. Jim will start sending the Board a
copy of his AICPA meeting notes.
The group discussed the scanning of licensee files. It
was agreed that we will change the retention period for various files, such
that they will be shredded when the related data is added to the database. We
will ask the firm that conducted a recent systems review if their work
included access testing; if not, we will ask that they do so. The credit card
firm that does testing of our office will be asked whether they include
REVIEW AND CPE
It is renewal time now, and we will be requesting peer review
confirmation of those firms who do not participate in the national
Facilitated State Board Access database.
All CPE forms are checked, with question items pursued.
In addition a small-sample audit is conducted; results are very good.
There was discussion about the need for an outline for
programs; it is a required feature.
There were 3 reinstatement requests: Rodney Williams, William Sailers, James Knoll. There were no objections. An exam candidate
previously granted additional writing time would like a reader, as she has in
college; we will pay for this service. Nikki had agreed to an accommodation
for another candidate, but it was not used. The Board is fine with the
president handling such situations. For reinstatements, we will
continue to charge a current year license fee, even if close to year-end.
Jim explained the Society’s involvement in legislative matters, and that he
identified a few issues of possible impact on the Board. He will need to
check on the status and requirements of HB 1309.
The group approved an earlier Board decision to support Jim’s nomination for
the Sachs Award [motion: George; 2nd: Ron; carried].
One staff member’s time has been reduced 20%, without any replacement hiring.
There are no current issues, although it may affect their assistance with
special projects and new activities.
Work had been done in the past, examining the various
office duties, and whether each area was adequately covered by other staff.
There were a few uncovered areas, such as complaints.
EDUCATION EVALUATION SERVICE
We will revisit the question of approving this service. Jim will poll other
states in the region about their experiences with the service.
2013-2: No objection to closing.
2013-3: Questions will be posed of the firm owner.
2013-1: the client is waiting on 2 tax returns; we will
close the file when they are received.
Jim reported on an issue he had pursued, though not a
formal complaint; it has been resolved.
We will plan to invite Farm Credit and our legal counsel
to join us in September. We will discuss the matter in July.
North Dakota State Board of Accountancy
Meeting Notes: January 25, 2013
Schmaltz, Rick Lee, Ron Johnke, Mandy Harlow, Jim Abbott, George Kelly &
Faye Miller. The meeting began at approx. 12.
MINUTES (Dec. 31,
2012): Approved [motion: Faye; 2nd: Rick; carried].
Jim shared some comments on the financials, including a mention that vacation
/ sick time accrual levels have declined about 10%. There was discussion
about why the budget shows a net income of -$1700. Jim will check the
investment account; the report balance differs slightly from the bank
statement. The FICA and Federal tax payable accounts will be brought to zero
at 12/31/12. The Dec. 31 financial statements and disbursements 14368 to
14420 were approved [motion: Rick; 2nd: Ron; carried].
Three reinstatements were approved – U. Sheikh, R. Emerson (after CPE is
complete), and J. Bushard [motion: Faye; 2nd: George; carried].
SB 2150 proposes to
limit board member per diems. Jim will watch the bill and inform the Board;
he may provide legislator names to the board, for contact, if the bill is
passed out of the Senate. HB 1309 will eliminate reporting of agency paid
dues, etc. If this bill is not passed, we’ll need to check whether reporting
is expected of our agency. SB 2232 changes definition related to services,
and exempts business-to-business sales.
A letter was received
regarding a NASBA position, there were no requests for a copy.
Four cases were reviewed. There was no objection to closing all four (2012-2,
2012-3, 2012-4 [at Feb. 5, after checking the firm’s website], and 2013-1 [at
Jan. 31, unless the CPA doesn’t provide returns as they committed to do]).
Jim reviewed the
situation of a licensee disciplined by another state, and is now reactivated
and has complied with the stipulated terms.
NEXT MEETING: Monday,
May 6, 2013, at noon, at the Grand Forks Brady Martz office.
ADJOURNED: at 1:05
[motion: George; 2nd: Rick].