STATE OF MARYLAND
BOARD OF PUBLIC ACCOUNTANCY
MINUTES
DATE: April 7, 2009
LOCATION: 500 North Calvert Street
Baltimore, Maryland 21202
Third Floor Conference Room
MEMBERS
IN ATTENDANCE Thomas Chambers
Tim Murphy
Raymond C. Speciale
Ella Pierce
Marjorie Root
MEMBERS ABSENT: H. Terry Hancock
Muhammad A. Khan
DLLR OFFICIALS/STAFF: Dennis L. Gring, Executive Director
Linda L. Rhew, Administrative Officer
Matthew Lawrence, Counsel
Norbert Fenwick, CPA Consultant
Harry Loleas, Deputy Commissioner
OTHERS PRESENT: Sandy Steinwedel, MSA
Tom Hood. MACPA
Mary Beth Halpren, MACPA Shirley Buchanan, MSA
Bobby Buchanan, MSA
Richard Fink, Towson University
Josh Smith, McDaniel College
The March 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 9:05 AM.
Upon a motion (I) by Mr. Murphy, and seconded by Ms. Pierce, the minutes of the March 3, 2009 meeting was approved unanimously.
REPORTS
Chairman’s Report
Chairman Chambers briefly discussed the 120/150 hour education task force deliberations and also noted that two more states have passed mobility legislation, Kansas and Wyoming.
CPA Board Minutes
April 7, 2009
Page 2
Executive Director’s Report
Personnel
Mr. Gring introduced Ms. Shannon Davis who has been hired as outreach coordinator for the special fund programs, including the Board of Public Accountancy. Ms. Davis is working hard to bring the Board’s electronic newsletter on line by the end of April.
2009 Legislative Action
In his 2009 legislative report, Mr. Gring advised the Board that HB 1440, which authorizes the Board to assess a reinstatement fee for expired firm permits, has passed the House. The Senate hearing on the bill is scheduled for April 8. He also reported that SB 204, which changes in the peer review provisions of the law to incorporate the 2009 AICPA peer review standards, passed the Senate. A hearing was hearing was held o this bill in the House Economic Matters Committee on March 31.
Mr. Gring also reported that HB 69/SB 128, removing the limit on the number of CPE that can be earned through self-study, passed both houses of the General Assembly on April 6, 2009 and will become effective on October 1, 2009.
CPA Examination
Mr. Gring reported that the five-year contract for the administration of the Uniform CPA Examination in Maryland is scheduled for review by the Board of Public Works on April 15. If approved, the contract term will be May1, 2009 through April 30, 2014.
The First Quarter 2009 examination window examination scores have been reported to the Board. Eighty-seven candidates successfully completed the Uniform CPA Exam so far in 2009.
SECTION / ADMIN / PASS / % PASS / HIGH / LOW / MEDIANAUD / 172 / 92 / 0.535 / 98 / 16 / 71.0
BEC / 199 / 99 / 0.497 / 92 / 21 / 66.5
FARE / 140 / 66 / 0.471 / 98 / 15 / 65.5
REG / 168 / 87 / 0.518 / 98 / 9 / 70.5
TOTAL / 679 / 344 / 0.507
87 / TOTAL PASSING EXAM THIS QUARTER
Accountancy Licensing Database
Within the next several months, the Board will be participating in NASBA’s Accountancy License Database ALD. Counsel is drafting an agreement for NASBA’s use of the licensing information about the Board’s licensees.
Eighteen states/jurisdictions currently participate in the ALD.
CPA Board Minutes
April 7, 2009
Page 3
NASBA Executive Director’s Conference
Mr. Gring attended the NASBA Executive Director’s Conference March 15-18, 2009 in Jacksonville, FL. He reported that the major topics discussed during the conference included: the effect of the economy on state board budgets and impact on licensing and regulation; the efforts to adopt international accounting standards; international administration of the Uniform CPA Examination; inclusion questions on international accounting standards on the CPA exam as early as 2011; cooperation in enforcement efforts between state boards and federal government agencies, and peer review compliance assurance.
Education Report
Mr. Speciale reported that six regular reciprocal applications and two transfer of grades applications were approved for the period March 3, 2009 through April 6, 2009. During this period, 3 reciprocal applications were denied.
Reciprocal Denials
Ayalew K. Haile – was denied for due to lacking 3 semester hours in professional ethics to qualify for a license.
William Bryan Schwartz – was denied due to an incomplete application.
Stuart S. Smith - was denied due to an incomplete application
Upon a motion (II) by Ms. Root, and seconded by Mr. Murphy, the Board unanimously approved the Education Report.
Experience Committee Report
Ms. Pierce presented the Experience Committee Report. Thirty-one (31) Maryland applicants and 5 reciprocal (4 in 10) applicants were approved during the period March 3, 2009 through April 6, 2009. There were two (4 in 10) application denials:
Samir Sultan Ali – denied for incomplete application.
Barbara J. Farinelli – denied for incomplete application.
Upon a motion (III) by Mr. Speciale, and seconded by Ms. Root, the Experience Committee Report was unanimously approved.
Communications Committee Report
Ms. Root welcomed Ms. Davis and said she looked forward to the April issue of the Board’s E- newsletter.
Old Business
The Board took final action on proposed regulations that were published in the January 31, 2009 Maryland Register. Mr. Gring reported that the Board did not receive any comments on
CPA Board Minutes
April 7, 2009
Page 4
these regulations. Upon a motion (IV) by Mr. Speciale and seconded by Ms. Pierce the Board unanimously took final action to adopt the following regulations:
(1) 09.24.02Continuing Education – requirement for four (4) hours of CPE per license period.
(2) 09.24.02Continuing Education – clarify calculation of CPE for services as teacher; qualifications as acceptable CPE; reorganize groups of CPE programs.
(3) 09.24.04Firm Permits and Ownership – amend to include participation by affiliated entities.
(4) 09.24.05Examinations - the addition of computer science/systems and quantitative methods to Group II – Business Courses.
(5) 09.24.07Notification of Intent to Practice – repeal of chapter.
New Business
Mr. Gring addressed several issues that merit the Board’s consideration for legislation in 2010. He advised the Board that in a review of complaint issues with the complaint committee and AAG Kris King, it was determined that actions by the PCAOB and other similar agencies that are private companies created by an act of the U.S. Congress/Federal government is not addressed under the statute as grounds for disciplinary action by the Board. In addition, disciplinary action against firms is limited to a reprimand, suspension or revocation. The Board does not have the authority to assess a civil penalty. The Board does not have the flexibility to sanction a firm by civil penalty in instances where a civil penalty is the appropriate sanction. Mr. Lawrence advised the Board that draft language for legislation to address these issues will be distributed for the Board’s review at the May 5, 2009 meeting.
Executive Session
Upon a motion (V) by Mr. Murphy, and seconded by Mr. Speciale, and approved for the Board to go into Executive Session at 10:40 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 11:25 AM.
Complaint Committee Report
Mr. Murphy reported the Board received 6 complaints during the period March 3, 2009 through April 6, 2009. Eleven complaints were closed: CPAS 08-0006, CPAS 08-0038, CPAS 09-0008, CPAS 09-0023, CPAS 09-0024, CPAS 09-0031, CPAS 09-0032, CPAS 09-0033, CPAS 09-0034, CPAS 09-0036 and CPAS 09-0037. Three complaints were referred to Pre-Charge Review.
Upon a motion (VI) by Mr. Speciale, and seconded by Ms. Root, the Board approved the
Complaint Committee Report.
CPA Board Minutes
April 7, 2009
Page 5
Upon a motion (VII) by Mr. Murphy, and seconded by Ms. Root, the Board denied a request by a CPA examination candidate for accommodations under the Americans With Disabilities Act, until it receives a completed request form signed by a current practicing physician.
Upon a motion (VIII) by Mr. Speciale, and seconded by Mr. Murphy, the Board approved the rescheduling of an examination section for a CPA examination candidate due to medical reasons
NEXT MEETING
Tuesday, May 5, 2009, 500 North Calvert Street, Third Floor, 9:00 AM
Upon a motion (IX) by Ms. Pierce, and seconded by Ms. Root, the meeting adjourned at 11:30 AM.
______With corrections ______Without corrections
______Chairman Date