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DRAFT MINUTES JOINT 2007-08/2008-09 EXECUTIVE BOARD MEETING APRIL 25-26, 2008 THE GROVE PARK INN; ASHEVILLE, NC MEMBERS PRESENT: James A. Smith, Chairman Steven R. Goodman, Chairman-elect Jerry L. Love, Immediate Past Chairman Rance G. Sweeten, Treasurer C. Jeff Gregg, Treasurer-elect Richard T. Baumeister, Jr. Janet B. Johnson Tracy B. Stewart Penny Dear Edward L. Lette Dora J. Dyson B. Jean Lein John M. Sharbaugh, CEO/Executive Director MEMBERS ABSENT: Barbara R. Bass, Secretary John R. Broaddus Fred J. Timmons 2008-09 MEMBERS PRESENT Kym Anderson, Chairman-elect elect Bradley D. Brown, Treasurer-elect elect Mark M. Jones, Secretary-elect Donna H. Wesling Michael W. Young William R. Frazer Donna J. Hugly M. Todd Welty CHAPTER GUESTS PRESENT: Sandra Kay Brown, President, Brazos Valley Chapter Jeff D. Harris, President-elect, Houston Chapter Donna Tadlock, President, Central Texas Chapter OTHER GUESTS: William Ezzell, National Managing Partner – Legislative and Regulatory Relations, Deloitte & Touche USA (former AICPA Chair) DRAFT OF MINUTES JOINT 2007-08/2008-09 EXECUTIVE BOARD MEETING APRIL 25-26, 2008 THE GROVE PARK INN; ASHEVILLE, NC PAGE 2 OTHER GUESTS, Cont’d. Stephen L. Winters, Director, Specialized Communities & Firm Practice Management, AICPA, Durham, NC TSCPA STAFF: Robert R. Owen, Managing Director, Regulatory & Legislative Steve Jones, Director, Human Resources and Special Projects Steve Phillips, Controller Ali Allie, Executive Assistant I. CALL TO ORDER, WELCOME AND INTRODUCTIONS Chairman Jim Smith called the meeting to order at 8:30 am and welcomed Executive Board (EB) members, guests and TSCPA staff. Introductions were made. II. QUORUM CALL In the absence of Barbara Bass, Secretary, John Sharbaugh, Assistant Secretary, declared a quorum present. III. CHAIRMAN’S REPORT Approval of Consent Agenda. The Consent Agenda consisted of the following items: Minutes from the January 24, 2008, EB meeting; Probation of Dwight E. Denman’s TSCPA membership; Request for excused absence from the 2008 Election Meeting of Members/Midyear Board of Directors Meeting held January 25-26, 2008, for the following members: 1) David J. Sweeten, CPA; 2) Donn R. McMahan, CPA; 3) Richard Moore, CPA; 4) Antonio Villeda, CPA; and 5) Mary Pat Jones, CPA; Request for excused absence from the 2008 Annual Meeting of Members on June 27-28, 2008, for Janae Chamblee, CPA; and Termination of firms from the TSCPA Peer Review Program (see attached). Randy Sweeten made the following motion, which was seconded by Jean Lein: DRAFT OF MINUTES JOINT 2007-08/2008-09 EXECUTIVE BOARD MEETING APRIL 25-26, 2008 THE GROVE PARK INN; ASHEVILLE, NC PAGE 3 Motion: To approve the Consent Agenda. - Motion Approved Review of Action Item List – January 24, 2008, EB Meeting. Chairman Smith noted that all action items have been completed other than his action item to identify the chair, members and charge of the Task Force on Student Internship. It will be forthcoming and sent to the EB members by e-mail for their approval. Media Contacts/Chapter Visits/Other Visits. Chairman Smith reported on the following media contacts, visits and interviews since the last EB meeting: Responded to a Houston Chronicle article regarding a condemnation award of property by the state of Texas and issues regarding devaluation of the property; Interview with Business Week Magazine regarding conflicts on tax return filing between spouses and the CPA’s role in resolving them; An interview with “Lowe’s for Pros” regarding small business tax write-offs; A radio interview with SmartMoney.com; an AOL publication; An interview with MultiView PRN News on how to spend your tax return refund; Contributed information/spoke at length to a reporter of the Dallas Business Journal (DBJ) about accounting standards to assist him in preparing for an interview/article with Judy O’Dell of the Private Company Financial Reporting Standards Committee; An extensive interview with the DBJ reporter on the status of the margins tax in Texas; An interview with the McAllen Monitor on common tax filing mistakes; Released an Op Ed column that will be published in the Dallas Morning News on teaching your children financial literacy (“Teach Your Children Day” is part of the Financial Literacy Program); Visited the Fort Worth Chapter on January 31; Attended a reception/fund raiser for Congressman Mike Conaway; Attended an AICPA Center for Audit Quality gathering in Dallas on DRAFT OF MINUTES JOINT 2007-08/2008-09 EXECUTIVE BOARD MEETING APRIL 25-26, 2008 THE GROVE PARK INN; ASHEVILLE, NC PAGE 4 February 5; Visited the Central Texas Chapter on February 15; Visited the El Paso Chapter on March 25; and Participated in making a video for the Dallas Chapter to be used as an ongoing promotional piece regarding accounting careers and CPA contributions to the community in general. AICPA Regional Council Meeting. The meeting that was scheduled in Dallas at the end of March was abruptly cancelled due to inclement weather that caused flight cancellations from all airlines. Participants were invited to join the regional Council meeting by web cast the next day in Chicago. John Sharbaugh highlighted the major issues that were discussed including, but not limited to, the following: 1) a new certification for forensic accounting that the AICPA will be proposing at the Spring Meeting of Council; 2) the continuing harmonization of accounting standards between U.S. standards and global standards, which is accelerating at a fast pace; and 3) expiration of the contract for the partnership between AICPA and NASBA for the CPA exam in a few years. NASBA is very much in favor of a global CPA exam. The AICPA is taking a slower approach but is willing to discuss the issue. Insurance Trust. Mr. Smith discussed an issue about the TSCPA group health insurance program. The insurance program was established with minimal underwriting standards for people who could not get health insurance elsewhere. Because of the issues they brought to the program, TSCPA continued to have escalating premium costs which made the cost of the insurance exorbitant. Some members of the TSCPA are raising a concern about the rising cost of the insurance, and the insurance trust is on the brink of announcing an HSA insurance program which is very affordable and attractive and will offer small practitioners and firms an opportunity to come into a TSCPA program with different underwriting standards. Other. Mr. Smith made note of three letters that were sent on behalf of the TSCPA. The first letter, which the AICPA requested, was written to the Department of Housing and Urban Development (HUD) opposing their proposed rule regarding standards for CPA firms that are registered to do HUD audits. The second letter was written to the New York State Society of CPAs expressing concern about its consideration to revise its Accountancy Act without any mention about the mobility issue which has become very prominent among other CPA state societies. DRAFT OF MINUTES JOINT 2007-08/2008-09 EXECUTIVE BOARD MEETING APRIL 25-26, 2008 THE GROVE PARK INN; ASHEVILLE, NC PAGE 5 The third letter was written to Assembly Member Roger Niello of the California State Assembly supporting their legislation on mobility. Mr. Smith also mentioned the outstanding relationship that TSCPA shares with the Comptroller’s Office and noted that TSCPA was instrumental in getting an extension included in the margin tax rules. IV. AICPA FOUNDATION FACULTY SHORTAGE PROJECT Chairman Smith introduced Bill Ezzell, former AICPA Chairman and currently National Managing Partner – Legislative and Regulatory Relations, Deloitte & Touche, USA. Mr. Ezzell reported on “The Future Accounting Doctoral Student Program,” an incremental initiative that the AICPA Foundation Advisory Group undertook to find solutions to the growing shortage of PhD candidates to teach accounting programs in universities. He gave an overview of how the shortage began and discussed the process to study the issue, what the Foundation proposes to do, the status of the project and the proposed next steps. One of the next steps is discussions with firms and organizations, including state CPA societies to participate in and support the program. The scale of funding is too large to seek individual contributions. Sponsors will be asked to commit an annual amount for each year for the duration of the program. Recruitment expenses will begin in 2008 and the first class of incremental PhDs will begin in the fall of 2009. As of 12/31/08, the Big Four accounting firms have committed fully to the program in terms of both volunteer support and funding at $1.818 million dollars per firm for a total of $7.3 million over 8 years. As of April, 2008, $11.2 million dollars have been received representing 65% of the projected budget. A question/answer session followed Mr. Ezzell’s presentation. V. CHAIRMAN-ELECT REPORT Chairman-elect, Steve Goodman, reported on the following: Chapter Visits/Other Visits/Presentations/Upcoming Visits. Visits included the Austin Chapter, Accounting Education Foundation meeting, and the CCFL Controller’s Conference, which he facilitated. Upcoming visits include the Wichita Falls Chapter, the Brazos Valley Chapter, AICPA Spring Meeting of Council and he will be a speaker at the Young CPA Conference and briefly at the Houston Chapter Spring Accounting Expo. He is particularly enthusiastic about the latter which will be attended by 1,000 CPAs in business and industry. Mr. Goodman will DRAFT OF MINUTES JOINT 2007-08/2008-09 EXECUTIVE BOARD MEETING APRIL 25-26, 2008 THE GROVE PARK INN; ASHEVILLE, NC PAGE 6 concentrate his speech on what the TSCPA is doing to focus on members in industry in an ongoing effort to recruit members from that segment of the TSCPA membership. Amicus Brief re: Auditor Liability. The AICPA and the TSCPA have jointly filed an amicus brief with the Texas Supreme Court in support of Grant Thornton, LLP, (GT) a case involving auditor liability. The case has broad implications for the accounting profession and involves alleged fraud, misrepresentation, negligence, third party beneficiary breach of confidence, conspiracy to commit fraud, and aiding and abetting fraud. Since Chairman Smith was an expert witness for the plaintiffs in the initial case, he felt it was inappropriate to be involved in the discussions and decision-making, although he expressed full support for TSCPA to make whatever decision was best for the profession as a whole in Texas. Chairman-elect Goodman was placed in charge on behalf of the TSCPA. The Supreme Court has not rejected the case and, in fact, has requested additional information from the attorneys representing GT. If the Supreme Court rules in favor of GT, it will be a “win” for the accounting profession. Leadership Day. Mr. Goodman reviewed the plans for Leadership Day on May 6 and encouraged all EB members to attend the event. A record attendance is anticipated. Annual Meeting Update. Mr. Goodman reviewed the schedule for the Annual Meeting in June in New Mexico and reminded his Executive Board members that their first official meeting will be held the day before the Annual Meeting (June 26) in the afternoon. Mr. Smith added that the outgoing Executive Board along with the incoming Executive Board will be invited to a dinner/roast the evening of June 26. Mr. Sharbaugh noted that the chapter challenge golf tournament will be held on June 26 also; however, some early tee times will be available for EB members who may be interested in playing prior to the meeting. Kym Anderson noted that she will be sending the EB members and staff an e-mail with a road blog of El Paso for those who are flying into El Paso and driving to New Mexico and want to spend some time there before driving to the Inn of the Mountain Gods. Task Force on Leadership Identification and Development. Mr. Goodman proposed the following charge for the task force: “Task Force will develop a plan to encourage members to seek leadership positions at TSCPA and its chapters and identify ways that TSCPA and DRAFT OF MINUTES JOINT 2007-08/2008-09 EXECUTIVE BOARD MEETING APRIL 25-26, 2008 THE GROVE PARK INN; ASHEVILLE, NC PAGE 7 the chapters can better help interested volunteers in becoming leaders. This may include organizing a TSCPA leadership development program and assisting the chapters in organizing such programs at the local level.” Mr. Goodman asked for a verbal approval of the charge. Everyone agreed it was a good initiative. Mr. Goodman will be asking for volunteers from the chapters and he solicited volunteers from the EB in addition to Kym Anderson and Jerry Love. The establishment of the task force and task force charge will be approved in June at the EB meeting. VI. TREASURER'S REPORT Randy Sweeten, Treasurer, together with Steve Phillips, Controller, reported on financial activity for the Society and the CPE Foundation for the ten months ended March 31, 2008. The Society year-end projection was a net loss of $110,000 as compared to a budgeted loss of $61,499. A projected $300,000 loss in investment income contributed significantly to the variance. The unrestricted fund balance is 74% of operating expenses, or $4,148,761. The CPE Foundation is projected to end the year with $286,000 net revenue as compared to the budgeted amount of $265,641 net revenue. The unrestricted fund balance for CPE is 69% of operating expenses, or $2,447,857. VII. COORDINATING OFFICERS’ REPORTS Committee updates were provided by Jean Lein for the Peer Assistance Foundation and Jeff Gregg for the Professional Standards Committee. VIII. AICPA/PCPS ISSUES Chairman Smith introduced Steve Winters, Director, Specialized Communities & Firm Practice Management, AICPA, Durham, NC. Mr. Winters overviewed the 4 member sections he manages (Private Companies Practice Session (PCPS), Forensic & Valuation Services, Personal Financial Planning and Information Technology) and discussed the various issues that the AICPA and PCPS are working on. The PCPS mission is to help make practicing CPAs and their firms successful through education and advocacy. Mr. Winters answered questions after his presentation. DRAFT OF MINUTES JOINT 2007-08/2008-09 EXECUTIVE BOARD MEETING APRIL 25-26, 2008 THE GROVE PARK INN; ASHEVILLE, NC PAGE 8 IX. EXECUTIVE SESSION Guests and TSCPA staff were excused from the meeting while the Executive Board met in executive session to receive a report from the Compensation Committee. X. The meeting was recessed at 12:00 Noon. XI. The meeting was reconvened on Saturday, April 26, at 8:30 am. XII. STRATEGIC PLAN UPDATE AND APPROVAL Mr. Goodman and staff liaison for the Strategic Planning Committee, Steve Jones, reviewed the new Plan objectives which resulted from the Strategic Planning Retreat in September. The Board of Directors discussed the objectives at round table discussions in January at the Midyear Board Meeting and the Strategic Planning Committee fine-tuned the Plan at their meeting in February. The following motion was made by Ed Lette and seconded: Motion: To approve the Strategic Plan and present it to the members at the 2008 Annual Meeting of Members in June. - Motion Approved XIII. REVIEW AND APPROVAL OF 2008-09 SOCIETY AND CPE BUDGETS Treasurer-elect, Jeff Gregg, reviewed the 2008 forecasts for the Society and the CPE Foundation and compared them to the 2009 budgets for each. The Society budget for 2009 is a deficit of $199,273, as compared to the 2008 forecast of a $110,000 deficit. A significant projected loss in investment income contributed to the variance. Jerry Love commented that the Society budget does not include a contribution to the AICPA “Future Accounting Doctoral Student Program” that Bill Ezzell discussed in his presentation the previous day. He made the following motion, which was seconded: DRAFT OF MINUTES JOINT 2007-08/2008-09 EXECUTIVE BOARD MEETING APRIL 25-26, 2008 THE GROVE PARK INN; ASHEVILLE, NC PAGE 9 Motion: That the Texas Society of CPAs participate in the AICPA Future Accounting Doctoral Student Program with a contribution of $5,000 from Society funds for the next five years for a total of $25,000. After discussion, Jean Lein made a friendly amendment to double the recommended contribution to $10,000 for the next five years for a total of $50,000. With Pennsylvania being the only state CPA society thus far to make a commitment to the program, several EB members felt that the TSCPA should be a leader and set an example for other large state CPA societies and that $5,000 was not a significant enough amount. Mr. Love accepted the friendly amendment and it was accepted by the seconder. It was noted that the motion should provide for a budgeted amount each year that the Board of Directors would approve at the June meeting. The motion was restated as follows: MOTION: That the Texas Society of CPAs will provide a $10,000 contribution to the AICPA Future Accounting Doctoral Student Program in the 2008- 09 budget with an announced intent to resubmit $10,000 for the Program every year for the next succeeding four years. After further discussion about a possible negative impact that the proposal may have on some TSCPA members, Mr. Goodman offered the following friendly amendment to the motion: To reduce the chair’s contingency of $25,000 currently in the budget to $15,000. Mr. Love accepted the amendment. The restated motion is as follows: Motion: To modify the 2008-09 budget by transferring $10,000 of the chair’s contingency to a budgeted expenditure of $10,000 as a contribution to the AICPA’s Future Accounting Doctoral Student Program with an announced intent to resubmit $10,000 for the Program every year for the next succeeding four years. DRAFT OF MINUTES JOINT 2007-08/2008-09 EXECUTIVE BOARD MEETING APRIL 25-26, 2008 THE GROVE PARK INN; ASHEVILLE, NC PAGE 10 After further discussion regarding the amount to be contributed ($5,000 vs. $10,000), Mr. Love took a straw poll of the members. A majority of the members were in favor of the contribution and at the higher amount. The question was called and approved. The motion was voted on. - Motion Approved A suggestion was made for the Investment Committee to do an analysis of the TSCPA investment portfolio for the past 5 years to present to the Board of Directors. Mr. Gregg reviewed the 2008-09 budget for the CPE Foundation. Net revenue is budgeted at $96,186 as compared to the 2008 forecast of $286,000. A reduction in educational programs and course materials contributed to the variance. The following motion was made by the Finance Committee: Motion: To approve the 2008-09 budgets for the Texas Society of CPAs and the CPE Foundation. - Motion Approved XIV. R&L REPORT Bob Owen reported on the following: The presiding officer and member of the Texas State Board of Public Accountancy (TSBPA), Coalter Baker, resigned for personal reasons, and Governor Perry appointed David Duree (Permian Basin) as the successor presiding officer and Steve Peña as a replacement for Mr. Baker as a TSBPA Board member; The PAC challenge for chapters ends in May. The Austin Chapter leads the large chapters at 68%, with the Fort Worth Chapter at 64% and the Houston Chapter at 60%. Among the small chapters, Abilene is at 85% with Brazos Valley slightly behind at 75%. Mr. Owen encouraged everyone to participate in the PAC and asked them to encourage their chapters to participate. PAC contributions are down from last year. As in the past, Mr. Owen asked the incoming Executive DRAFT OF MINUTES JOINT 2007-08/2008-09 EXECUTIVE BOARD MEETING APRIL 25-26, 2008 THE GROVE PARK INN; ASHEVILLE, NC PAGE 11 Board members to contribute 100% to the PAC; In the general election primaries, the TSCPA PAC endorsed two candidates –Senator Williams from Southeast Texas (R) and Representative Flores from the Brazos Valley (D). During the primary run-offs, the PAC endorsed candidate Martha Tyroch from Temple. Although she did not win the race, the CPA for the winning candidate has agreed to be a key person for TSCPA. The PAC Committee will be meeting soon to determine whether they will make endorsements in the general elections and to review recommended contributions; and The TSCPA State Taxation Committee continues to have a good working relationship with the Comptroller and has been influential in helping to bring about the recent changes to the margins tax including a filing extension without penalties. Penny Dear was instrumental in helping to obtain the extension by sending the Comptroller a detailed e-mail explaining what CPAs must do for the margins tax that would be detrimental to their businesses. Legislative Advisory Committee (LAC) Activity. Penny Dear reported that Jeff Eaton, chair of the committee, has appointed a subcommittee to study the pros and cons of the issue of Administrative Law Hearing (LAH) decisions becoming final and appealable to State District Court. At the January, 2008, EB meeting, Mr. Eaton reported on the November 30, 2007, LAC meeting requested by the EB to review and discuss a proposal by Randy Sweeten that TSCPA consider legislation to: 1) allow CPAs to be permitted a de novo appeal to state court of any disciplinary action taken by the TSBPA; or 2) require the TSBPA to recognize proposals for decision (PFD) by an LAH with the SOAH as final rulings. The subcommittee members include the following: Leroy Bolt, chair, David Deison, Jeff Gregg, Gary McIntosh, and Diane Smith. The first meeting is scheduled for July 2. A report will be presented at the August EB meeting. The LAC meets again in October. Mr. Smith noted that if the subcommittee tries to recommend a change regarding the SOAH decisions, it affects not only the Accountancy Act but regulatory boards and committees across the state. The subcommittee must consider their actions carefully because they are taking on a very large mission if their goal is to obtain a modification to the process. XV. COORDINATING OFFICER REPORTS Committee updates were provided by Tracy Stewart for External Relations and Dora Dyson for Membership. DRAFT OF MINUTES JOINT 2007-08/2008-09 EXECUTIVE BOARD MEETING APRIL 25-26, 2008 THE GROVE PARK INN; ASHEVILLE, NC PAGE 12 E-Mentoring Task Force. Jerry Love presented a prototype of an e- mentoring program that the task force is working on directed at students, young professionals and newly certified CPAs. Once the verbiage has been finalized, the program will be tested by an identified group of people. When the program is finalized, it will be communicated and explained to the entire membership and they will be encouraged to become a mentor. Comments and/or suggestions should be e-mailed to Mr. Love. Large Chapter Meeting. In Fred Timmons’ absence, Mr. Smith presented the Large Chapter Meeting report. The large chapters are recommending that the TSCPA initiate an additional dues payment option permitting a member to choose to have his/her membership dues paid by pro rata withdrawals from the member’s checking account or credit card over the course of a year. The TSCPA staff prepared an analysis of automated monthly dues billing via credit card or checking account. A lengthy discussion ensued about the issues for consideration in evaluating the proposal (including TSCPA and chapter Bylaw revisions). One consideration was to allow dues to be paid by an ACH bank draft with no transaction costs. A straw poll indicated that a majority of the members are in favor of allowing membership dues paid by an ACH bank draft but not credit cards. Mr. Goodman stated that he would like to ask the Finance Committee to discuss the issue during their next conference call. If need be, a task force may be created to further research the issue. Mr. Smith reported on another issue raised at the Large Chapter Meeting. TSCPA has a deal with Becker, a CPA exam review provider, for a $250 student discount. If a firm pays the fee, it is a $500 discount. Mr. Love stated that Becker is giving a $700 discount to CPA Associates firms if they pay the fee directly to Becker. He can try to re-negotiate with Becker if the TSCPA can guarantee a certain number of firms who will sign up with them for the discount. However the previous attempt to negotiate the same discount for TSCPA firms as CPA Associate firms was unsuccessful. Mr. Love will communicate with Jesse Dominguez, Austin Chapter president, and then contact John Sharbaugh and Janet Overton. XVI. CEO/EXECUTIVE DIRECTOR REPORT John Sharbaugh reported on the following meetings and issues since the last EB meeting: He attended an AICPA Board meeting in early February where Bill DRAFT OF MINUTES JOINT 2007-08/2008-09 EXECUTIVE BOARD MEETING APRIL 25-26, 2008 THE GROVE PARK INN; ASHEVILLE, NC PAGE 13 Ezzell reported on the Ph.D. faculty shortage. He attended the meeting as immediate past chair of the AICPA Society Executives Association and his service in that organization is coming to an end after many years; He is serving on a national mobility task force that consists of four state CPA society executives, representatives from the National Association for State Boards of Accountancy, the AICPA, and the Accountants Coalition (made up of the largest accounting firms). The task force was created a few years ago to focus on and bring momentum to the mobility initiative around the country. Twenty-three states thus far have passed legislation on mobility and there may be thirty by year-end; He made a presentation jointly with Jim Smith at SMU in Dallas on March 24 to accounting majors. Mr. Smith gave a passionate speech about the accounting profession; He serves on the Board of the Texas Society of Association Executives and had a meeting at the end of March in Austin. He enjoys the opportunity to share ideas with members of other associations which helps him in his role at the TSCPA; A survey was conducted by St. Edwards University regarding ethical dilemmas faced by CPA practitioners. They are going to develop an article for Today’s CPA about the survey and hope to continue it on an ongoing basis; The dues billing has gone out electronically to TSCPA members and by snail mail to those who do not have an e-mail address. A second mailing will be sent on May 15. A third mailing is sent in July and a “drop letter” is mailed to members in September who are delinquent with their dues giving them 30 days to pay their dues before being dropped from membership; A member satisfaction survey is planned for late July/early August. The survey was done in 2001 and 2004 and although it was anticipated to do a survey every 3 years, the 2007 survey was postponed to 2008 to allow more time for members to get involved with the Center for Corporate Financial Planning (CCFL) and incorporate questions about it on the survey. The contract with CCFL will end in November 2008, and input from the survey will help with the decision of whether to continue with the partnership or not. The survey results will be presented to the EB; On the technology front, TSCPA upgraded its software to Office 2007. There have been numerous issues and frustration transitioning to the new software; The plan to have a new software package (“SharePoint”) to replace DRAFT OF MINUTES JOINT 2007-08/2008-09 EXECUTIVE BOARD MEETING APRIL 25-26, 2008 THE GROVE PARK INN; ASHEVILLE, NC PAGE 14 the TSCPA’s information Web site “DocuShare” has been delayed until the problems associated with Office 2007 have been resolved; There are new Peer Review standards that will become effective in January, 2009 and the Peer Review Department is gearing up to deal with them. Peer Review Department staff are also dealing with an AICPA technology issue. The AICPA has been trying to implement a program to have more accessibility to peer review reports due to pressure from state and federal regulators. TSCPA and the TSBPA agreed to work with AICPA on the software capability which has been very time-consuming. Another new software program the AICPA is working on (“Prism”) will allow state CPA societies to better administer peer review programs. Their intent was to have the software ready prior to the new peer review standards being issued; however, they are not able to meet their deadline which has created much angst among the state CPA societies. The new deadline is January, 2010; and A third Web cast is scheduled for May 7 with Mr. Sharbaugh and Mr. Smith. The first two Web casts were extremely successful with positive results. David Duree, TSBPA presiding officer, has agreed to participate in the Web cast and a short video of Congressman Mike Conaway will be shown about current issues in Washington, D.C. On May 5, another Web cast will be shown for a small cost regarding international financial reporting standards. XVII. CHAIRMAN’S CLOSING COMMENTS As this was Mr. Smith’s last meeting as chairman of TSCPA, he thanked all of his Executive Board members who served with him over the past year and remarked that they made it a very special year for him. For those EB members coming onboard in June, he stated that he looks forward to working with them and getting to know them better. XVIII. ADJOURNMENT There being no further business, the meeting was adjourned at 12:15 pm. MOTIONS APPROVED 1. Approval of the Consent Agenda. 2. Approval of the Strategic Plan. 3. Approval of the TSCPA and CPE Foundation budgets for 2008-2009. 4. Approval to modify the 2008-09 budget by transferring $10,000 of the DRAFT OF MINUTES JOINT 2007-08/2008-09 EXECUTIVE BOARD MEETING APRIL 25-26, 2008 THE GROVE PARK INN; ASHEVILLE, NC PAGE 15 chair’s contingency to a budgeted expenditure of $10,000 as a contribution to the AICPA’s Future Accounting Doctoral Student Program with an announced intent to resubmit $10,000 for the Program every year for the next succeeding four years.
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