NEVADA STATE BOARD OF ACCOUNTANCY Minutes May 12, 2004

Transcription

1 NEVADA STATE BOARD OF ACCOUNTANCY Minutes May 12, 2004 An open meeting of the Nevada State Board of Accountancy was called to order at 9:00 A.M. by President Bonnie Houldsworth, on Wednesday, May 12, 2004 at 4455 S Pecos Rd, Suite A, Las Vegas Nevada. Board Members Present: Bonnie M. Houldsworth Harry O. Parsons Bruce W. Gamett Sharon J. McNair Charles A. Morrison Kathy L. Zeller Board Members Absent: Raja Mourey Board Staff Present: Viki A. Windfeldt, Executive Director Todd Russell, Counsel Leslie C. Walsh, Board Coordinator Agenda Item 1: Approval of March 17, 2004 Board Meeting Minutes Motion was made, seconded and carried to approve the minutes of the March 17, 2004 board meeting. Agenda Item 2: Grievance Report and Grievance Matters. Note: The Board may convene in closed session to consider the character, alleged misconduct, professional competence or physical or mental health for any of the grievances filed with the board. Motion was made, seconded and carried to go into closed session to discuss grievance matters. Upon resumption of the open session motion was made, seconded and carried to close complaint matter S based on complaint being withdrawn. Liaison Bruce Gamett abstained from the vote. Motion was made, seconded and carried in complaint matter N-03-9, Leon Jaferian to accept David Machen, CPA as the pre-release reviewer for Mr. Jaferian. Complaint matter closed subject to staff monitoring of provisions. Liaison Bonnie Houldsworth abstained from the vote. Board member Charles Morrison abstained from the vote. Motion was made, seconded and carried to close complaint matter S-04-2 based on compliance. Motion was made, seconded and carried to close complaint matter S-04-4 based on licensee acting in the capacity of a U.S. court appointed trustee.

2 Agenda Item 2 (Cont.) Motion was made, seconded and carried to close complaint matter N-04-1 based on lack of reasonable cause to proceed. Liaison Harry Parsons abstained from the vote. Motion was made, seconded and carried to close complaint matter N-04-5 based on compliance. Motion was made, seconded and carried to close complaint matter S-04-5 based on matter being a legal dispute and complainant not the client of the licensee. Motion was made, seconded and carried to close the following non-licensee complaint matters based on compliance: SS-04-2 SS-04-5 SS-04-6 NN-04-2 Jeff Casey Nanci Savage Danillo Sevilla Keith Polen Motion was made, seconded and carried to close the following non-licensee complaint matters in connection with the yellow page listings: Advantage Income Tax DLC Business Service Noel C. Murray Advantage Tax Service Foster & Associates Samson Equities ALD Enterprise Inc. Gerard Works Sara Griffers Alfonso Morales & Associates Gloria Joseph Scott Fields All Business Bookkeeping Service Gloria Kaplan Sterling Business Services Ashworth & Benedict Holly Armstrong TM&D Enterprises Base Line Inc. Jeff Jones TML Management Corporation Bushnell & Associates Kelly Vickers Teresa Thayer Connie Schellerup Larry Risse Profess. Corp Thomas Bara Zamucen & Close Agenda Item 3: Report of Counsel Todd Russell indicated to the board that David Turner would work with Senator Townsend to introduce the new language in the next legislative session. Agenda Item 4: Report of Executive Director Discussion of the Following Issues: A. Child Support Language CPA not in compliance Motion was made, seconded and carried to file a formal complaint against John D. Chartier based on falsifying his application and renewal form in connection with child support compliance. B. Highlights of Recent Regulatory Developments Report to NASBA The board directed the Executive Director to complete documents requested by NASBA of the Highlights of Recent Regulatory Developments. Once completed, Ms. Windfeldt was asked to them to the board members for comments prior to submission.

3 Agenda Item 4 (Cont.) C. Qualifications of Non-Licensee Owner AICPA Rules of Professional Conduct The Executive Director brought to the boards attention the AICPA Rules of Professional Conduct council resolution concerning rule 505 in connection with non-licensee ownership. This section requires non-licensees to obtain a bachelors degree and by 2010 meet the 150-hour education requirement. The board discussed the issue and directed staff to draft exclusion language under NAC where the rules are referenced. D. Exposure Draft Uniform Accountancy Act The board reviewed the NASBAs exposure draft for the Uniform Accountancy Act. The exposure draft contained rules for (1) licensees reporting convictions, judgments and administrative proceedings to the board; (2) record retention for attest engagements; (3) submission of peer review reports to the board; and (4) practice privilege permits. The board directed staff to include the licensees reporting language within our regulation changes. E. Computerized CPA Examination Update of the issues. The Executive Director summarized the issues and gave a status report of the Computerized CPA Examination. F. The Executive Director discussed the issue of assessing continuing education penalties to individuals who have been identified as having a shortage in connection with the CPE audit. The board discussed the issue of individuals falsifying their renewal information and determined the board will review the report and determine if formal complaints should be issued. It was also determined that penalties should be assessed for obtaining hours outside the year required to correct the shortage. Motion was made, seconded and carried to assess a penalty of $250 for a shortage of lower than 4 hours and $750 for over 4 hours. Agenda Item 5: CPA Certification Applications/Issues Motion was made, seconded and carried to approve the applications for CPA Certification for the following individuals: Eugene Allara Mark Bagaason Dawn Beavers Tracy Bolton Melodie Boyer Lisa Chen Linda Elias Stanley Evans Stephen Ewell Thomas Garrett Sandra Harvey Jonnye Jund Steven Krell Michael Kryger Rosemary Lato K Alan Lonbom Hyejin Min John Mix Paul Parodi Michael Quartieri Shannon Selitsch Christine Vear James Welch Ronald Willhite Gregory Wilson Ronald Chandler Michael Spindler Daniel Zittnan Mary Jane Schirber

4 Motion was made, seconded and carried to deny the application for CPA Certification for Wayne Salem based on Mr. Salem s not meeting Nevada s requirements for examination and experience.

5 Agenda Item 5 (Cont.) Motion was made, seconded and carried to deny the application for CPA Certification for Alice Teevens based on Ms. Teevens not completing the 2-year experience requirement. Motion was made, seconded and carried to approve the application for CPA Certification for Lori Ware-Taylor based on the experience recommendation of John Rhodes as Individual Reviewer. Agenda Item 6: Approval of Temporary Licensing Permits: Motion was made, seconded and carried to ratify the following temporary permits: A. Guido J. Ferrer B. Richard Rathman C. Roland Brimley D. Mark Gilroy E. James Welch F. John Eapen Agenda Item 7: Request for Change of CPA Status: William Ernst came forward to discuss the possibilities of his obtaining retired status. It was noted that Mr. Ernst was on the 2004 not paid list and has since paid his renewal and late fees however is short the required 32 hours of CPE. Mr. Ernst summarized his past health issues as well as his current employment activities. The board discussed the issues and informed Mr. Ernst they would be unable to approve Retired Status at this time based on his current status. However, motion was made, seconded and carried to approve an extension of time to June 30, 2004 to complete the required continuing education, submit attorney s fees of $300 and waive the $750 CPE penalties based on medical difficulties. Mr. Ernst was advised to apply for retired status prior to December Motion was made, seconded and carried to approve the request of Paula Steepin and Orin Olden for Inactive Status. Motion was made, seconded and carried to approve the request of H. Frank Woodbury for Retired Status as of December 31, Motion was made, seconded and carried to approve the request of LaVonne Duhon and Melissa Meredith to return to Active Status. Agenda Item 8: Approval of Finances A. Review of income & expense The board reviewed the Income & Expense statements for the month of March and April B. Bills paid since last board meeting Motion was made, seconded and carried to approve the bills paid for March 2004 by check numbers 6158 through 6200 totaling $33,426.64, and for April 2004 by check numbers 6201 through 6227 totaling $29,

6 Agenda Item 9: Approval of Fictitious Name: A. National Taxman LLC (Reconsideration) 10:00 AM Christopher DiLorenzo came forward to discuss his firm name of National Taxman LLC that was previously denied at the boards January and March 2004 board meetings. The denial was based on the board believing that the name was misleading. Mr. DiLorenzo expressed his opinion to the board of their previous denial and summarized his position. Motion was made, seconded and carried to again deny the use of National Taxman LLC as a fictitious name. The board determined the word national was misleading to the public as provided in NAC B. Sterling Business Services Motion was made, seconded and carried to approve the use of Sterling Business Services as a fictitious name. Agenda Item 10: Board discussion and determination of proposed language changes to include peer review under chapter 628, Nevada Administrative Code. The board reviewed the information provided concerning the requirement of peer review for individuals that conduct financial audits with the exception of agreed upon procedures. After further discussion regarding the boards direction for peer requirement, a motion was made, seconded and carried to direct staff to develop peer review language within the practice enhancement section of the regulations. Agenda Item 11: Request Board approval of Contract for Legal Services Motion was made, seconded and carried to approve the Contract for Legal Services with the firm Allison Mackenzie Russell Pavlakis Wright and Fagan. Agenda Item 12: Request Board Member and Staff approval to attend NASBA s Regional Conference, June 16 18, 2004 in La Jolla CA. Motion was made, seconded and carried to approve board member and staff attendance and related expenses at NASBA s regional conference to be held June 16 18, 2004 in La Jolla, CA Agenda Item 13: Recommendation of Hearing Officer to revoke the CPA Certificates of the following individuals due to non-payment of licensure fees and non-compliance with CPE requirements: Todd Russell summarized for the Board the recommendation of the Hearing Officer, Harry Parsons regarding the revocations for violation of 2003 CPE requirements and non-payment of 2004 license fees. Motion was made, seconded and carried to approve the Hearing Officer s recommendation to revoke the CPA Certificates for the following individuals:

7 Pamela Cooper Vahag Kachaturian Arthur Riber Evan G. Stevens Hearing Officer Harry Parsons abstained from the vote. Agenda Item 14: Request Dismissal of Formal Complaints Motion was made, seconded and carried to dismiss the formal complaint issued against the following individuals based on compliance: Robert Anderson Debra George Louis Musso Jackie Royle Thomas Sutton Jethro Barlow Pierce Clifton Margaret Debevec Michael Hirsch Ida Hin Louie Ralph Jorgensen Michael Masegian Mark Miller Norman Richardson Debra Schmitt Irving Steinberg David R. Williams Motion was made, seconded and carried to dismiss the formal complaint issued against the following individuals based on the voluntary surrender of their CPA certificates: Kurt W. Davis, CPA Certificate 2548 William Schumann, CPA Certificate 3411R Motion was made, seconded and carried to dismiss the formal complaint against William Ernst based on payment of 2004 fees. This is subject to receipt of Continuing Education by June 30, 2004 and payment of attorney s fees and costs in the amount of $300. Motion was made, seconded and carried to dismiss the formal complaint against Loren Goldtooth upon receipt of Continuing Education and payment of license renewal and late fees by May 17, Proceed with a formal complaint if Mr. Goldtooth does not comply. Agenda Item 15: Request board dismissal and consideration in connection with formal complaints filed against the following individuals: Motion was made, seconded and carried to dismiss the formal complaint issued against William Conlon for non-payment of renewal fees and deny Mr. Conlon s request for waiver of the attorney s fees in connection with the complaint. The denial was based on lack of evidence indicating reasonable cause. Motion was made, seconded and carried to approve the request of David Steffey, for consideration of an extension of time to June 15, 2004 to provide fees of $1,290 and continuing education in connection with the formal complaint issued based on evidence of personal hardship. Agenda Item 16: Election of Board Officers Election of Officers for the Nevada State Board of Accountancy was held. Nominations were opened for President. Harry Parsons was nominated. There being no other

8 nominations, a motion was made, seconded and carried that the nominations be closed and the record reflect Harry Parsons as President of the Board for a one-year term from July 1, 2004 June 30, 2005.

9 Agenda Item 16 (Cont.) Nominations were opened for Secretary/Treasurer. Sharon McNair was nominated. There being no other nominations, a motion was made, seconded and carried that the nominations be closed and the record reflect Sharon McNair as Secretary/Treasurer of the Board for a one-year term from July 1, 2004 June 30, Agenda Item 17: Review of Personnel Performance and Salary Issues Motion was made, seconded and carried to go into a closed personnel session. Upon resumption of the open session, a motion was made, seconded and carried to approve the following salaries for the fiscal year beginning July 1, 2004: Viki A. Windfeldt, Executive Director $69,000 Leslie C. Walsh, Board Coordinator $39,400 Agenda Item 18: Report of President Bonnie Houldsworth expressed her thanks to the board for the prior year she has served as President. Agenda Item 19: Public Comment No items were discussed under New Business/Public Comment.