DATE: April 7, 2009

LOCATION: 500 North Calvert Street

Baltimore, Maryland 21202

Third Floor Conference Room


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.


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


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.

AUD / 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

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


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