STATE OF MARYLAND
BOARD OF PUBLIC ACCOUNTANCY
DATE: November 7, 2008
LOCATION: 500 North Calvert Street
Baltimore, Maryland 21202
Third Floor Conference Room
IN ATTENDANCE Thomas Chambers, Chairman
Raymond C. Speciale
Muhammad A. Khan
MEMBERS ABSENT: H. Terry Hancock
DLLR OFFICIALS/STAFF: Dennis L. Gring, Executive Director
Linda L. Rhew, Administrative Officer
Matthew Lawrence, Counsel
Harry Loleas, Deputy Commissioner
Norbert Fenwick, CPA Consultant
Elizabeth Trimble, General Counsel to DLLR
OTHERS PRESENT: Mary Beth Halpren, MACPA
Sandy Steinwedel, MSA
Shirley Buchanan, MSA
The November 7, 2008 meeting of the Maryland Board of Public Accountancy was
called to order by Chairman Thomas Chambers at 9:07 AM.
Upon a motion (I) by Mr. Speciale, and seconded by Ms. Pierce, the minutes of the
October 7, 2008 meeting was approved, as amended, unanimously.
Mr. Chambers reported the NASBA Annual Meeting was held in Boston, MA from October
26-29, 2008. Fifty-two of 55 accountancy regulatory agencies were in attendance. The
major issues discussed at this meeting were: action by some jurisdictions to accept IASB as
an accounting standard setter; the challenges presented to the educator community
concerning the incorporation of IFRS into the curricula; the creation of a NASBA Committee
focused on strengthening state boards’ ability to conduct complaint investigations; attempts
by Boards to hold licensees to high level of professional and personal responsibility; and
status report on the issues raised at the Examination Conference this past May. Mr.
Chambers elaborated that there was progress in NASBA efforts to develop revised language
for renewal of the CBT testing agreement, and there is ongoing consideration as to whether
or not to develop a contingency plan to administer the CPA Examination in an emergency.
He also reported that although the issue of 120/150 was not an agenda item at the meeting,
CPA Board Minutes
November 7, 2008
It was discussed among the attendees. He stated that at this point Maryland is one of only
twenty jurisdictions that still require the completion of the full 150 semester credits prior to
sitting for the CPA exam. He noted that it is important that the Board’s education task force
move forward in its study of this issue. Mr. Chambers also reported that 12 states have
developed referral programs to deal with substance abuse by licensed professionals
(including CPA’s) and 5 states now require proof of errors and omissions insurance coverage
for CPA’s as a condition of licensure.
Executive Director’s Report
Mr. Gring advised the Board that Ms. Patricia Yost resigned her position and that interviews
would resume this month to find a replacement. He also reported that beginning with license
and permit renewals as of October 2, 2008, individuals and firms were mailed a form that
requested them to supplement their applications with a peer review report form. On this form
individuals and firms are required to certify whether or not they provide services subject to
peer review. If they perform the peer review mandated services, renewal applicants are
required to provide the date the peer review acceptance letter was received, the type of peer
review performed and the administration entity responsible for the peer review.
Reciprocal/Transfer of Grades Applications
Mr. Speciale reported that 8 regular reciprocal applications and 2 transfer of grades
applications were approved for the period October 7, 2008 through November 7, 2008.
Three applications were denied for being incomplete.
Mr. Speciale briefly discussed the organization of the 120/150 education paper task force.
The Board members assigned to this task force are Chairman Chambers, Mr. Speciale, and
Ms. Root. Mr. Speciale indicated that an organizational meeting is in the process of being
Upon a motion (II) by Ms. Root, and seconded by Mr. Murphy, the Education Report was
Experience Committee Report
Ms. Pierce presented the Experience Committee Report. Thirty-four (34) Maryland
applicants and 9 reciprocal (4 in 10) applicants were approved during the period October 7,
2008 through November 7, 2008.
Upon a motion (III) by Mr. Speciale, and seconded by Mr. Murphy, the Experience
Committee Report was unanimously approved.
Communications Committee Report
Ms. Root reported on plans to publish the Board’s first e-newsletter by the end of the year.
She briefly discussed the format and subject matter that would be published. Information
concerning mobility, the new CPE policies and regulations, disciplinary action and a welcome
column by the chairman would appear in the first issue.
CPA Board Minutes
November 7, 2008
Mr. Lawrence presented proposed language to regulations under COMAR 09.24.02.
Continuing Education as recommended by the Board’s CPE Committee at the October 7
2008 Board meeting. The CPE Committee proposed regulatory language that modified
Regulation 02. Basic Requirement and Regulation .03 Programs which Qualify.
Mr. Lawrence presented the amendments to Regulation .02 Basic Requirement which
permits a licensee to earn CPE credit for services as a teacher, lecturer, or discussion leader
and receive three CPE hours for every hour of presentation for a first-time presentation of a
program; and one hour of CPE for every hour of presentation for all subsequent
presentations of the program.
Mr. Lawrence presented the amendments to Regulations .03 Programs which Qualify which
set forth evaluative criteria for programs of continuing professional education that do not
meet the standards that are specified in §B ,§C and §H.; and that repeal the provisions of
§D, §E,§F, and §G which pertain to interactive and regular self study programs.
Upon a motion (IV) by Ms. Pierce, and seconded by Mr. Speciale, the draft amendments to
Regulation .02 Basic Requirement and Regulation .03 under COMAR 09.24.02 Continuing
Education, as distributed by Mr. Lawrence, were approved unanimously as proposed
Bob Jones University
The issue of the accreditation of Bob Jones University and its acceptability as an approved
university for qualification by applicants to sit for the CPA examination in Maryland was
discussed. Following a short period of deliberation, Mr. Chambers asked Mr. Speciale to
investigation the issue and report back to the Board in December. Further discussion was
The Board took a brief recess at 10:30 AM and reconvened at 10:40 AM.
Harry Loleas, Deputy Commissioner of Occupational and Professional Licensing, and
Elizabeth Trimble, General Counsel to the Department of Labor, Licensing and Regulation,
conducted an orientation program for the Board. This orientation addressed the processes
and policies of the Department, as well as the responsibilities of each member of the Board.
Peer Review Waiver Requests
The Board reviewed the peer review waiver request for John J. Moynihan. It was determined
that the services for which he requested the waiver took place prior to the effective date of
the peer review law.
CPA Board Minutes
November 7, 2008
The Board reviewed the peer review waiver request for Jonathan D. Swerdloff. It was
determined that the services for which he requested the waiver took place subsequent to the
effective date of the peer review law. Upon a motion (V) by Ms. Pierce, and seconded by Mr.
Speciale, the Board denied Mr. Swerdloff’s request for a waiver, instead granting him a six
month extension to obtain the peer review.
The Board reviewed the peer review waiver request for Joseph Conrad Szper. The Board
was unclear whether the services provided by Mr. Szper constituted services requiring a peer
review. Mr. Gring volunteered to contact Mr. Szper to clarify his request.
The Board reviewed the peer review waiver request for Michael E. Regan. It was determined
that the services for which he requested the waiver took place subsequent to the effective
date of the peer review law. Upon a motion (VI) by Ms. Pierce, and seconded by Mr.
Speciale, the Board denied Mr. Regan’s request.
It was moved (VII) by Mr. Murphy, and seconded by Mr. Speciale, and approved for the
Board to go into Executive Session at 11:40 AM in the 3rd Floor Conference Room, 500 N.
Calvert Street, Baltimore, Maryland 21202. The purpose of this session was to consult with
counsel. This session is permitted to be closed pursuant to State Government Title Section
10-508(a), (7). Upon completion of the session, the Board resumed its public meeting at
Upon a motion (VIII) by Mr. Murphy, and seconded by Ms. Root, the Board granted
accommodations under the Americans With Disabilities Act to a CPA Exam candidate.
Upon a motion (IX) by Mr. Murphy, and seconded by Ms. Pierce the Board approved the
license of an applicant that answered “yes” to a conduct question.
Mr. Murphy reported that for the period October 7, 2008 through November 7, 2008, the
Board received five complaints, and closed three complaints.
Upon a motion (X) by Mr. Speciale, and seconded by Ms. Root, the Board approved the
Complaint Committee Report.
Tuesday, December 2, 2008, 500 North Calvert Street, Third Floor, 9:00 AM
Upon a motion (XI) by Mr. Speciale, and seconded by Ms. Pierce, the meeting adjourned at
___ ___ With corrections ______ Without corrections