MARYLAND .us



STATE OF MARYLAND

BOARD OF PUBLIC ACCOUNTANCY

MINUTES

DATE: March 3, 2009

LOCATION: 500 North Calvert Street

Baltimore, Maryland 21202

Third Floor Conference Room

MEMBERS

IN ATTENDANCE H. Terry Hancock

Tim Murphy

Raymond C. Speciale

Ella Pierce

Marjorie Root

MEMBERS ABSENT:

Thomas Chambers

Muhammad A. Khan

DLLR OFFICIALS/STAFF: Dennis L. Gring, Executive Director

Linda L. Rhew, Administrative Officer

Matthew Lawrence, Counsel

Norbert Fenwick, CPA Consultant

OTHERS PRESENT: Sandy Steinwedel, MSA

Mary Beth Halpren, MACPA Tom Hood, MACPA

The February 3, 2009 meeting of the Maryland Board of Public Accountancy was called to order by Mr. Hancock due to the absence of Chairman Thomas Chambers at 9:00 AM.

Upon a motion (I) by Mr. Murphy, and seconded by Ms. Pierce, the minutes of the February 3, 2009 meeting was approved unanimously.

REPORTS

Executive Director’s Report

Mr. Gring reported that the Board has been receiving results from the January-February 2009 CPA Examination period. So far, 37 candidates have passed the examination this quarter. The remainder of the exam results for this quarter is expected by the end of March.

Mr. Gring announced that the peer review reporting module for the on-line CPA firm renewal application was activated on March 2, 2009. The anticipated completion date for the peer review module for individual renewals is early April.

Mr. Gring reviewed the Board’s project list with the Board. The task list included progress reports on pending legislation and regulations. And other projects initiated by the Board.

CPA Board Minutes

March 3, 2009

Page 2

Education Report

Mr. Speciale reported that 3 regular reciprocal applications and four transfer of grades applications were approved for the period February 2, 2009 through March 3, 2009. During this period, one transfer of grades application and 2 reciprocal applications were denied.

Reciprocal Denials

Modupeola Adenike Adebowale – was denied for failing to meet the minimum of 150 semester hours to qualify for a license due to lacking 60 semester hours of collegiate hours.

Sebastian K. Jockey – was denied due to lacking a 3 semester credit course in ethics and a 3 credit semester course in Group II Business Subjects.

Transfer of Grades Denials

Lateefat Gbemisola Alli - Lacked three semester hour course in management, and did not complete the Professional Ethics Course.

Mr. Speciale advised the Board that the Education Task Force to discuss the 120/150 hour requirement study will be meeting with state educators on March 14, 2009 at the Smith Business School at the University of Maryland, College Park. Additionally, the Task Force will be meeting with student groups on April 7, 2009 after the regular business meeting of the Board.

Upon a motion (II) by Ms. Pierce, and seconded by Ms. Root, the Board unanimously approved the Education Report.

Experience Committee Report

Ms. Pierce presented the Experience Committee Report. Thirty-four (34) Maryland applicants and 16 reciprocal (4 in 10) applicants were approved during the period February 3, 2009 through March 3, 2009.

Upon a motion (III) by Mr. Murphy, and seconded by Mr. Speciale, the Experience Committee Report was unanimously approved.

Continuing Education Committee

Mr. Hancock advised that the public comment period on the proposed CPE regulations ends on March 9, 2009. The Board is scheduled to take final action on these regulations at its April 7, 2009 meeting. He also reported that continuing education legislation (HB 69 and SB 128), to repeal the limitation on home study and credits as an instructor, is proceeding through the Legislature. HB 69 passed the House of Delegates and is now before the Senate. SB 128 passed the Senate and is now before the House of Delegates.

CPA Board Minutes

March 3, 2009

Page 3

Communications Committee Report

Ms. Root advised the Board that she will work with Mr. Gring and the new Information Outreach Coordinator to determine the publication schedule for the Board’s quarterly e-newsletters. Upon a motion (IV) by Mr. Speciale, and seconded by Ms. Pierce, the Communication Committee Report was unanimously approved.

Old Business

Mr. Gring reviewed the Board’s project list with the Board. The task list included progress reports on pending legislation and regulations, and other projects initiated by the Board.

New Business

Mr. Gring presented the new schedule of CPA Examination fees that will become effective in August 2009. The new fees are attributable exclusively to the $0.95 per hour in Prometric seat time fees.

Exam Length Exam Section Current Proposed +Change

4.5 hours Auditing and Attestation $249 $254 $ 5

2.5 hours Business Environment and Concepts $198 $201 $ 3

4.0 hours Financial Accounting & Reporting $237 $241 $ 4

3.0 hours Regulation $211 $214 $ 3

Upon a motion (V) by Mr. Speciale, and seconded by Mr. Murphy, the Board approved the proposed new fee schedule for publication in the Maryland Register.

Mr. Speciale advised the Board that Mr. Gring and he had discussed applying the proposed requirement for transfer of grades applicants, who apply for a license four or more years after passing the Uniform CPA Examination, to obtain 80 hours of continuing professional education (CPE) to include Maryland candidates who apply four or more years after passing the Examination. Mr. Hancock asked Mr. Lawrence to prepare suggested regulatory language for the Board for the April 7, 2009 meeting.

Correspondence

Mr. Gring briefly discussed a letter from Mr. Carl Olson, Chairman of the Fund for Stockholders Rights, an organization located in California, concerning the Big Four audit firms. Mr. Olson’s letter was referred to the Board by Sarah Bloom Raskin, Commissioner of Financial Regulation. In essence, Mr. Olson has launched a campaign to encourage boards of accountancy to take a more active approach toward violations of accountancy laws. He is requesting that the Boards of Accountancy devote more resources to regulating and disciplining national accounting firms.

The Board agreed to respond to Mr. Olson that the Board would welcome any evidence that a Maryland licensed CPA or a CPA branch office located in Maryland where a permit has been issued was involved in activity that would warrant disciplinary action. The Board asked Mr. Lawrence to prepare the response to Mr. Olson.

CPA Board Minutes

March 3, 2009

Page 4

Executive Session

Upon a motion (VI) by Mr. Murphy, and seconded by Ms. Root, and approved for the Board to go into Executive Session at 9:35 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 9:50 AM.

Mr. Murphy reported that the Board received 7 complaints during the period February 3, 2009 through March 3, 2009. Four were closed: CPAS 09-0017, CPAS 09-0026, CPAS 09-0027, CPAS 09-0029.

Upon a motion (VII) by Ms. Pierce, and seconded by Mr. Speciale, the Board approved the

Complaint Committee Report.

Upon a motion (VIII) by Mr. Murphy, and seconded by Mr. Speciale, the Board approved the extension of time for a candidate to complete the CPA exam until May 31, 2009 due to medical reasons.

Upon a motion (IX) by Mr. Murphy, and seconded by Ms. Pierce, the Board approved the education and experience qualifications of a transfer of grades applicant, but denied the application due to affirmative answers to conduct questions.

Upon a motion (X) by Mr. Murphy, and seconded by Mr. Speciale, the Board approved the renewal of a licensee.

NEXT MEETING

Tuesday, April 7, 2009, 500 North Calvert Street, Third Floor, 9:00 AM

Upon a motion (XIII) by Ms. Pierce, and seconded by Ms. Root, the meeting adjourned at 10:00 AM.

___ ___ With corrections ______ Without corrections

________________________________________ ____________________ Chairman Date

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