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ARIZONA STATE BOARD OF ACCOUNTANCY OPEN SESSION MINUTES

November 7, 2016

Members of the Arizona State Board of Accountancy (Board) held a meeting at the Accountancy Board Office in Suite 165, 100 N. 15th Avenue, Phoenix, Arizona 85007. Executive Sessions were held from 9:41 a.m. to 9:53 a.m., from 10:43 a.m. to 10:56 a.m., from 11:31 a.m. to 11:45 a.m., from 1:23 a.m. to 1:56 p.m., and from 3:14 p.m. to 3:26 p.m.

BOARD MEMBERS: Layne Reid Simmons, CPA ................................................................................ President Douglas N. Kimball ............................................................................................. Secretary

LeRoy M. Gaintner, CPA .................................................................................... Treasurer Giselle C. Alexander, CPA ................................................................................... Member Gary L. Freed ....................................................................................................... Member William C. Heimerdinger, CPA ............................................................................. Member Julie S. Klewer, CPA ............................................................................................. Member Participated telephonically STAFF PRESENT: Monica L. Petersen .............................................................................. Executive Director Valli Goss ................................................ Assistant Director, Regulation and Compliance Jacki Hancock ......................................... Assistant Director, Registration and Operations John Oyas ........................................................................... Program Project Specialist 2 Christopher Rasmussen ...................................................... Program Project Specialist 2 ASSISTANT ATTORNEY GENERALS: Scott Donald, Esq.................................................................... Assistant Attorney General Marc Harris, Esq...................................................................... Assistant Attorney General GUESTS PRESENT AND/ORPARTICIPATING:

Adela E. Jiménez, CPA, CGMA ...................................................COO and CFO, ASCPA David Freeland ....................... Arizona Association of Accounting and Tax Professionals John C. Todd, II, CPA .............................. Chairperson, Law Review Advisory Committee Vicky Rios, CPA ...................................................... Chairperson, Certification Committee Debra Hunter, CPA .......................................................................................... Registrant Greg Robinson, Esq. …………………………………………………………………...Attorney Robert Semple, CPA ......................................................................................... Registrant PJ Pelliccio, CPA .............................................................................................. Registrant Lisa Gervase, Esq. ............................................................................................... Attorney

ARIZONA STATE BOARD

OF ACCOUNTANCY

100 North 15th Avenue, Suite 165

Phoenix, Arizona 85007

Phone (602) 364-0804

Fax (602) 364-0903

www.azaccountancy.gov

http://www.azaccountancy.gov/

ARIZONA STATE BOARD OF ACCOUNTANCY OPEN SESSION MINUTES November 7, 2016

D. Jay Ryan, Esq.................................................................................................. Attorney Mo Zhang ............................................................................................................ Applicant Eric Klein, CPA .................................................................................................. Registrant Nathaniel Scheer, Esq. ........................................................................................ Attorney Julie Cissne ..................................................................................... Member of the Public

The meeting was called to order at 8:19 a.m. by Layne R. Simmons, Board President. The following order of business was then considered: OPEN SESSION CALL TO THE PUBLIC

Adela Jiménez of the Arizona Society of Certified Public Accountants (ASCPA) stated that she would like to know more about the Board’s letter, dated October 24, 2016, relating to firm registration, so that she can respond to questions from members of the ASCPA regarding the letter. David Freeland of the Arizona Association of Accounting and Tax Professionals (AAATP) was present, thanked the Board for allowing him to participate, and requested if he could discuss with the Board agenda item XV.A – Educational Enhancement Reviews. Eric Klein, Registrant, stated that he was present to provide a statement regarding agenda item IX.A.1. - File No. 2017.026. Greg Robinson, attorney for Registrant Debra Hunter, stated that he would be available for any inquiries regarding agenda item XI.A.1. - File No. 2016.084; Hunter, Debra. Julie Cissne stated that she was present for the Board meeting for agenda item X.A.5.

DISCUSS, AMEND AND APPROVE MINUTES Gary L. Freed, LeRoy M. Gaintner, and William C. Heimerdinger recommended technical and conforming changes to the Open Session minutes from the September 26, 2016 meeting. LeRoy M. Gaintner inquired with Scott Donald, Assistant Attorney General, regarding approval of minutes for agenda items if members had left the room and were not present when the agenda items were discussed. Mr. Donald provided information on the subject. A motion was made by Douglas N. Kimball, seconded by Gary L. Freed to approve the September 26, 2016 Open Session minutes, as amended. The following members were not present for the discussion of the following items of the September 26, 2016 agenda:

- Layne R. Simmons: Agenda Item IX.E.1 File No. 2013.031; Semple, Brian Agenda Item IX.E.2 File No. 2013.032, Semple, Robert


Agenda Item IX.E.3 File No. 2015.020, Semple, Marchal & Cooper, LLP Agenda Item IX.E.4 File No. 2013.021, Pelliccio, PJ

- LeRoy M. Gaintner:

Agenda Item IX.E.1 File No. 2013.031; Semple, Brian Agenda Item IX.E.2 File No. 2013.032, Semple, Robert Agenda Item IX.E.3 File No. 2015.020, Semple, Marchal & Cooper, LLP Agenda Item IX.E.4 File No. 2013.021, Pelliccio, PJ Agenda Item XII.O and all subsequent discussions after the item

- Giselle Alexander:

Agenda Item IX.E.1 File No. 2013.031; Semple, Brian Agenda Item IX.E.2 File No. 2013.032, Semple, Robert Agenda Item IX.E.3 File No. 2015.020, Semple, Marchal & Cooper, LLP Agenda Item IX.E.4 File No. 2013.021, Pelliccio, PJ

- William C. Heimerdinger:

Agenda Item IX.G.2 File No. 2017.010; Charvoz, Charles Agenda Item IX.G.3 File No. 2017.014; Muratore, Charles

The motion passed 6 – 1. Gary L. Freed voted nay. After brief discussion, a motion was made by Douglas N. Kimball, seconded by William C. Heimerdinger and passed 6 - 1 to approve the September 26, 2016 Executive Session minutes, as drafted. Gary L. Freed voted nay. Layne R. Simmons, LeRoy M. Gaintner and Giselle C. Alexander noted that they were not present during the discussion of the following items of the September 26, 2016 agenda:

Agenda Item IX.E.1 File No. 2013.031; Semple, Brian Agenda Item IX.E.2 File No. 2013.032, Semple, Robert Agenda Item IX.E.3 File No. 2015.020, Semple, Marchal & Cooper, LLP Agenda Item IX.E.4 File No. 2013.021, Pelliccio, PJ

DECLARATION OF CONFLICTS OF INTEREST

William C. Heimerdinger declared a conflict on the following agenda items: Agenda Item XV.O.1 Allison, Rebecca L. 17970-E Agenda Item XV.S. Tadesse, Belaynesh 8286-E

LeRoy M. Gaintner declared a conflict on the following agenda items:

Agenda Item XV.I.1 File No. 2013.032; Semple, Robert Agenda Item XV.I.3 File No. 2015.020; Semple, Marchal & Cooper, LLP


Layne R. Simmons declared a conflict on the following agenda items: Agenda Item XV.I.1 File No. 2013.032; Semple, Robert Agenda Item XV.I.3 File No. 2015.020; Semple, Marchal & Cooper, LLP

Gary L. Freed declared a conflict on the following agenda item:

Agenda Item XV.I.2 File No. 2015.110; Estes, Charles

Giselle C. Alexander declared a conflict on the following agenda items: Agenda Item XV.I.1 File No. 2013.032; Semple, Robert Agenda Item XV.I.3 File No. 2015.020; Semple, Marchal & Cooper, LLP

Giselle C. Alexander additionally noted that she serves on a council with Attorney Greg Robinson.

CONSENT AGENDA

William C. Heimerdinger declared a conflict of interest with the following consent agenda (V) items: M. Recommendation of the Peer Review Oversight Advisory Committee for Approval

of the Following Firms: 20. KPMG L.L.P. 968-B

N. Recommendation of the CPE Advisory Committee for Compliance of the Following Registrants Regarding CPE Audit:

1. Abeles, Kristina Leigh 10963-E

A motion was made by LeRoy M. Gaintner, seconded by Douglas N. Kimball, to approve consent agenda items V.M.20 and V.N.1. The motion passed 6 – 0. William C. Heimerdinger was conflicted and recused himself from the vote. LeRoy M. Gaintner declared a conflict of interest with the following consent agenda (V) items: G. Recommendation of the Certification Committee for Approval of Certification by

Examination: 8. Tremp, Carrie R.

A motion was made by Douglas N. Kimball, seconded by William C. Heimerdinger, to approve consent agenda item V.G.8. The motion passed 6 – 0.

LeRoy M. Gaintner was conflicted and recused himself from the vote.

Gary L. Freed declared a conflict of interest with the following consent agenda (V) items: N. Recommendation of the CPE Advisory Committee for Compliance of the Following

Registrants Regarding CPE Audit: 3. Dobrusin, David J. 14978-R


7. O'Farrell, Laura Lynn 12357-E

A motion was made by LeRoy M. Gaintner, seconded by Douglas N. Kimball, to approve consent agenda items V.N.3 and V.N.7. The motion passed 6 – 0. Gary L. Freed declared a conflict and recused himself from the vote. Julie S. Klewer declared a conflict of interest with the following consent agenda (V) items:

M. Recommendation of the Peer Review Oversight Advisory Committee for Approval of the Following Firms:

1. Addison, C. Wesley, P.C. 2149-C 15. HBL CPAS, PC 155-C 27. Phillips, Jennifer J., CPA, PLLC 3258-L

A motion was made by LeRoy M. Gaintner, seconded by Douglas N. Kimball, to approve consent agenda item V.M.1, V.M.15 and V.M.27. The motion passed 6 – 0. Julie S. Klewer declared a conflict and recused herself from the vote. A motion was made by Douglas N. Kimball, seconded by William C. Heimerdinger, to approve the remainder of the consent agenda. The motion unanimously passed 7 – 0.

A. Recommended for Registration of Firms for the Following Applicants: 1. Amy Spencer, CPA, P.C.

Partner: Amy Spencer 16742-E 2. CPA Accounting Solutions LLC

Partner: Michael Lepore 16526-R 3. Diamond J Accounting, LLC

Partner: Katie L. Thomas 15058-E 4. Foster Financial CPA, PLC

Partner: Nick T. Foster 16643-E 5. Haymore & Forsberg, LLC

Partner: Spencer C. Forsberg 18182-E 6. Sean Drolet, CPA

Partner: Sean Drolet 18012-R 7. Twealth, LLC

Partner: Jon R. Johnston 5124-E

B. Recommended for Firm Name Change 1. Michael D. Adams, PC

From: Michael Adams Consulting, PC Partner: Michael Duane Adams 4415-E

C. Recommended for Firm Cancellation – Do Not Wish to Renew:

1. Accounting & Business Information Svs 4650-S 2. Bunge, Janette A., CPA, PLLC 2464-L


3. Clouse, S. Keith, CPA 5751-S 4. Dennis, Schmich & Co., LTD. 102-C 5. JPH, CPA, P.C. 954-C 6. Marion, L. Sue, CPA 4034-S 7. Neese, L.J., CPA LLC 3326-L 8. Quinn, John T., PLLC 3139-L 9. Ulman, Ronald, CPA 4138-S 10. Ward, Cynthia Ann, CPA 4682-S

D. Recommended for Cancellation of Certificate per Registrant’s Request Not to

Renew: 1. Daniel J. Korthals 17635-R 2. Debbie Hawthorne 12018-E 3. George F. Schlagenhaft 10298-E 4. Glen A. Milkus 12877-R 5. Jonathan K. Mirmelli 10987-E 6. Joseph M. Albers 14900-E 7. Scott A. Hamilton 14374-E 8. Shelby Theresa Smith 16925-E 9. Suzanne M. Wilson 14188-R

E. Recommended for Reissuance of Certificate Because of Name Change: 1. Issued as: Amy Dye 16544-E ; New Name: Amy Windisch 2. Issued as: James Paul Larsen 18286-R ; New Name: James P. Larsen 3. Issued as: Julian Martinez 17098-E ; New Name: Julian C. Martinez 4. Issued as: Kimberly J. Hones 15805-R ; New Name: Kimberly J. Lucas 5. Issued as: Sabrina Sarli 15789-E ; New Name: Sabrina Perkins

F. Recommendation of the Certification Committee for Approval of Candidates for the

Uniform CPA Examination: 1. Block, Brianna Elizabeth 2. Byrne, Allisyn Keyser 3. Chheda, Rushabh Ramesh 4. Clasen, Jeffrey Steven 5. Davidson, Katherine Anne 6. Delizio, Braedon Dougan 7. Dimartile, Theresa Ann 8. Dunn, Nicole Marie 9. Gualtieri, Tiffany Nicole 10. Gupta, Shweta 11. Haja, Ayisha Sharmi 12. Han, Yuyang 13. Hughbanks, Mallory M. 14. Huston, Boris Held 15. Ingram, Lora Catherine 16. Jain, Anchal

17. Jain, Yash Rajendra 18. Joshi, Nandan Shrihari 19. Kasar, Dinesh Ramaji 20. Kaushall, Rajesh 21. Kerth, Abigail Marie 22. Khanna, Rishi 23. Kohler, Ammon Ernest 24. Kumar Ravi, Pradeep 25. Liang, Yidan 26. Long, Nathaniel Joseph 27. Lucas, Derrik Michael 28. Lucena, Megan Elizabeth 29. McClendon, Angelica

Monique 30. Meenatchi Sundaram,

Aparna


31. Moloney, Patricia Anne 32. Morwani, Cheena 33. Nagesh, Amrutha 34. Navani, Samir 35. Newcombe, Courtney Anne 36. Nguyen, Ann 37. Patterson, Cole Preston 38. Priya, Keerthana 39. Rai, Shilpa 40. Ramasamy, Ram Nagappan 41. Ramirez, Rosa M. 42. Ramkumar, Pooja 43. Rana, Prachee 44. Reyna, Josh Michael 45. Romo, Heather Shirley 46. Rowe, Daniel Richard 47. Sagvekar, Amod

Chandrakant 48. Sahoo, Sridhar 49. Sanwaria, Ankita 50. Saraogi, Jyoti Subhash 51. Shah, Rushabh Pareshbhai

52. Sharma, Shuchi 53. Shepherd, Ashley Brooke 54. Shope, Savannah Marie 55. Shorty, Jolene Olive 56. Shroff, Aayush 57. Singh, Jaskaran 58. Smith, Joshua S. 59. Stenson, Adam Wylie 60. Teiman, Jeffrey David 61. Thangavel Karthigai Raj,

Poorna Chandrika 62. Trivedi, Harshil Pradipbhai 63. Verma, Sakshi 64. Wahl, Jonpaul 65. Wakde, Mihir Satish 66. Wang, Aitong 67. Wang, Wei 68. Xiong X. Toyed, Malee Moua 69. Yang, Yihe 70. Zhang, Luxi 71. Zheng, Yu

G. Recommendation of the Certification Committee for Approval of Certification by

Examination: 1. Agashe, Avanti 2. Dixon, Bennet 3. Fortune, Scott 4. Packer, Steven Ross 5. Richmond, Jedidiah Joel

6. Soto, Jose Luis C 7. Spraggins, Andrew C. 8. Voted on Separately 9. Wee, Tia 10. Wixom, Beth A

H. Recommendation of the Certification Committee for Approval of Certification by

Grade Transfer: 1. Evans, Glen C. 2. Karani, Chintan

Vasantkumar 3. Kenny, Stephen 4. Kroeger, Morgan N.

5. Mandhania, Snehalata 6. Ugwuozor, Chukwuemeka

Peter 7. Zheng, Daniel

I. Recommendation of the Certification Committee for Approval of Certification by

Reciprocity: 1. Datta, Uday

J. Recommendation of the Certification Committee for Approval of Certification by

Reciprocity based on Substantial Equivalency:


1. Chen-Fisher, Leslie 2. Funk, Aaron F. 3. LaBrie, Julie 4. Marquardt, Timothy A.

5. Schwartz, Terry J. 6. Weinmeister, Jason 7. Williams, Katherine Nicole

K. Recommended Approval of Retired Status for the Following Registrants: 1. Ahl, Carl David 2083-E 2. Alexander, Sandra C. 4416-E 3. Bichanich, Richard A. 8673-E 4. Boswell, Gail K. 14457-R 5. Boyer, Lynn D. 9455-E 6. Bunge, Janette A. 8737-E 7. Chu, Hilbert Kwok-Ho 8249-E 8. Clouse, S. Keith 3159-E 9. Driskill, Jesse K. 7882-E 10. Duy, Douglas Michael 6235-

E 11. Easley, Jane M. 3354-E 12. Edwards, Clifford Eugene

2444-E 13. Elliott, Sabina Kornelia 1304-

E 14. Gee, Freddie 8091-E 15. Greer, Richard Ralph 400-R 16. Guilbeau, Judy Pratt 4885-E 17. Kelley, Sally J. 11451-E 18. Lowenstein, Matthew C.

6826-E

19. MacPhee, Kimberly 7359-E 20. Maurseth, Leslie M. 1738-E 21. Maxwell, Douglas B. 15518-

R 22. Mciver, Gary R. 2453-E 23. Miller, Marjo Nancy 2494-E 24. Newberg, Pauline A. 4236-E 25. Peachin, David F. 1777-R 26. Perl, Craig B. 1911-E 27. Porter, Horace 4215-E 28. Reak, David Richard 8701-E 29. Roy, David T. 7726-E 30. Staniscia, Peter Robert

8126-E 31. Stooks, Wallace Bryant 814-

E 32. Tiano, Michael Anthony

2229-E 33. Wallace, Peter Woodbridge

4130-E 34. Weller, Cheryl E. 2155-E 35. Zeibig, Rodney Paul 3232-R

L. Recommended for Reactivation of Certificate from Inactive Status:

1. Winter, Anne Margaret 8442-E

M. Recommendation of the Peer Review Oversight Advisory Committee for Approval of the Following Firms: 1. Voted on Separately 2. Alt Key, PLLC, The 3109-L 3. Aspire Financial, LLC 2938-L 4. Ball & McGraw, P.C. 1088-C 5. Companik, Joseph E., CPA, P.C. 2479-C 6. Devolites, Eve, Company, CPA 2765-C 7. Edwards, Largay, Mihaylo & CO., PLC 2317-L 8. Fessinger, Hal J., CPA PLLC 2780-L 9. Fester & Chapman, P.C. 344-C 10. Flynn, John R., CPA, P.C. 959-C 11. Frome & Company PLC 2787-L


12. Frost, PLLC 3478-L 13. Haubert, J. Michale, CPA, P.C. 1089-C 14. Haymore, Steven L., CPA PC 826-C 15. Voted on Separately 16. Hoey CPA, PLLC 2634-L 17. Hundman, John M., CPA 5798-S 18. Johnson Lawdahl, PLLC 3481-L 19. Kienitz, Douglas P., CPA, P.C. 2402-C 20. Voted on Separately 21. Kramer Public Accounting Group, PC 1227-C 22. Lattimer, P.C. 839-C 23. Law & Reed, CPA'S, P.C. 962-C 24. Leo, Donald R. & Company, LTD. 206-C 25. Maseloff, Harry A., CPA, P.C. 222-C 26. Patel, Neil P., CPA, P.C. 2354-C 27. Voted on Separately 28. Porter & Porter, P.C. 285-C 29. Preston CPA, P.C. 834-C 30. Price Kong & Co., CPA'S, P.A. 599-C 31. Romek, Sanders & Company, P.C. 701-C 32. Simon, Howard S., CPA, P.C. 2443-C 33. WD PC 1180-C

N. Recommendation of the CPE Advisory Committee for Compliance of the Following Registrants Regarding CPE Audit: 1. Voted on Separately 2. Bednarik, Walter Anthony

4017-R 3. Voted on Separately 4. Holmes, D. Diane 5183-E 5. Jankes, Ann K. 5048-E 6. McClanahan, Marjorie T. 7224-

7. Voted on Separately 8. Pope, Kerry A. 11608-E 9. Priniski, Michael J. 8933-E 10. Stoecker, Claudia 8707-E 11. Vetter, Scott F. 13872-E 12. Whitman, Donald W. 8306-R

O. Recommendation of the CPE Advisory Committee for Compliance Regarding

Request for Reinstatement from Expired Status: 1. Burns, L. Leann 9303-E 2. Oxer, Stuart Scott 9169-E

P. Recommendation of the CPE Advisory Committee for Pre-Approval or Approval of

CPE Coursework Related to Disciplinary Order and/or Compliance and/or Partial-Compliance Regarding CPE-Related Documentation Submitted as Part of a CPE Disciplinary Order Review: 1. Becker, Cheryl A. 11027-E 2. McCormick, Marlene Denise 9405-E 3. Stern, Jeffrey L. 3548-E


Q. Termination of Decision and Order

1. File No. 2017.012; Hansen, Leigh COMMITTEE RECOMMENDATIONS – INVESTIGATION FILES/INITIAL ANALYSIS FILES

File No. 2016.084; Hunter, Debra The Board, Staff, and the Assistant Attorney General (AAG) introduced themselves to the Registrant and her attorney. Debra Hunter provided a brief introduction of herself and told the Board that she is available for any questions that it may have. A motion was made by Gary L. Freed, seconded by William C. Heimerdinger, to close the file due to no violations of professional standards. The motion unanimously passed 7 – 0.

ADVISORY COMMITTEE UPDATE

Vicki L. Rios, Certification Advisory Committee Chairperson – Update Regarding the Classification of Accounting Ethics as a “Related” Course Vicki L. Rios spoke to the Board regarding the statutes and rules the Certification Advisory Committee considers when classifying accounting ethics as a related course. Further, Ms. Rios provided instances and reasons why some ethics courses have not been counted as accounting credits and referred to A.R.S § 32-705 as a basis for counting ethics as a related course.

ITEMS FOR REVIEW, DISCUSSION AND POSSIBLE ACTION INCLUDING DISCIPLINARY ACTION

Application for Certification by Exam/Grade Transfer, Recommended Denial by Certification Committee Birtcher, Justin B. Layne R. Simmons asked Vicki L. Rios for further clarification of the certification matter. Ms. Rios provided a summary and background of Mr. Birtcher’s application and highlighted that the application was still deficient with three credit hours of upper level accounting because, although he took a class with an accounting prefix, the class description notes that it is a finance class. A discussion ensued amongst the members regarding the matter. A motion was made by Gary L. Freed, seconded by Douglas N. Kimball, that the Board accept the Certification Advisory Committee's recommendation for denial of the applicant’s application for certification, based on being three credits short of the required accounting hours. LeRoy M. Gaintner raised the subject of whether the Board may want to consider an exemption for the applicant’s unique circumstance. The motion passed 5 – 2.


Giselle C. Alexander and LeRoy M. Gaintner voted nay. Zhang, Mo Lisa Gervase, applicant’s attorney, spoke for the applicant and provided additional information and a summary of the applicant’s work experience. Layne R. Simmons noted the Board’s certification processes. A motion was made by Douglas N. Kimball, seconded by LeRoy M. Gaintner, to remand the applicant’s application for certification to the Certification Advisory Committee for further inquiry. The motion passed 7 – 0.


Compliance/Non-Compliance with D&O, and Additional Information for the Board’s Consideration File Nos. 2015.074; Renberg, Mark and 2015.094; Renberg, Mark Mr. Renberg stated that he has provided the Board with an affidavit that proves that he has taken care of the provisions enumerated in his order. Valli Goss provided a background and summary regarding the Registrant’s compliance with the Order. A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger, that the Board rescind its September 26, 2016 motion which directed the AAG to file a complaint and notice of hearing for revocation, and to terminate the Consent Order on File Nos. 2015.074 and 2015.094. The motion passed 5 – 2. Giselle C. Alexander and Gary L. Freed voted nay.

INITIAL ANALYSIS

File No. 2017.026 Eric Klein provided a statement to the Board that summarized what transpired during the revocation of his certificate in California. He also stated that he retained an attorney in California. A discussion amongst the Board and the Registrant ensued to clarify and investigate the matter of the Registrant’s address of record. Layne R. Simmons noted that the Board may need to go into executive session.

EXECUTIVE SESSION

A motion was made by LeRoy M. Gaintner, seconded by Giselle C. Alexander, to go into executive session at 9:41 a.m. to obtain legal advice from the AAG regarding agenda item IX.A.1., pursuant to A.R.S. § 38-431.03(A)(3). The motion passed 6 – 0. Gary L. Freed abstained. After consideration in executive session, the Board reconvened in open session at 9:53 a.m.


OPEN SESSION

INITIAL ANALYSIS File No. 2017.026 The Board recessed from 9:53 a.m. – 10:01 a.m. Layne R. Simmons explained to the Registrant that the matter will be deferred to a later time in the meeting in order to provide the AAG enough time to research and provide the Board with legal advice regarding the matter.


Respondent’s Request for Rehearing and Possible Action Regarding Injunctive Relief File No. 2015.099; White, Tiffany File No. 2015.100; White, Tiffany File No. 2016.042; White, Tiffany File No. 2016.043; White, Tiffany File No. 2016.075; White, Tiffany File No. 2016.076; White, Tiffany File No. 2016.077; White, Tiffany File No. 2016.105; White, Tiffany, CPA, PLC Staff and Marc Harris, AAG, independent counsel for this matter, clarified to the Board why the aforementioned files were on the Board’s agenda today. Staff stated that there was a letter that was received by the Staff from Tiffany White that was deemed a request for rehearing. Mr. Harris provided further information to the Board with a summary and background of the matter. Ms. White was not present and an attorney did not appear on her behalf. A motion was made by Douglas N. Kimball, seconded by LeRoy M. Gaintner, to accept and adopt AAG Michael Raine’s Response, which asked the Board to deny the request for rehearing. The motion passed 7 – 0. Marc Harris clarified to the Board that the reason to deny the Respondent a rehearing was pursuant to A.A.C. R4-1-114(C). A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger, to direct the AAG to pursue injunctive relief after the denial of rehearing is sent to the Respondent. The motion passed unanimously 7 – 0.

Response/Counteroffers/Non-Response to Offered Decision and Order (By Consent) File No. 2013.032; Semple, Robert File No. 2015.020; Semple, Marchal & Cooper, LLP Layne R. Simmons was conflicted and Douglas N. Kimball took leadership of the meeting regarding these matters. Lisa Gervase and D. Jay Ryan were present and provided a statement to the Board. Further, Ms. Gervase provided the Board with written statements by


bankruptcy attorneys regarding bankruptcy court processes. Robert Semple was also present and made an oral statement to the Board. Mr. Kimball noted several options the Board may wish to consider.

EXECUTIVE SESSION

A motion was made by Douglas N. Kimball, seconded by Gary L. Freed, to go into executive session at 10:43 a.m. to obtain legal advice from the AAG regarding agenda items XV.I.1. and XV.I.3., pursuant to A.R.S. § 38-431.03(A)(3). The motion passed 4 – 0. Layne R. Simmons, LeRoy M. Gaintner, and Giselle C. Alexander were conflicted and recused themselves from the vote. They were not present during this executive session. After consideration in executive session, the Board reconvened in open session at 10:56 a.m.

OPEN SESSION ITEMS FOR REVIEW, DISCUSSION AND POSSIBLE ACTION INCLUDING DISCIPLINARY ACTION

Response/Counteroffers/Non-Response to Offered Decision and Order (By Consent) File No. 2013.032; Semple, Robert File No. 2015.020; Semple, Marchal & Cooper, LLP A motion was made by Douglas N. Kimball, seconded by William C. Heimerdinger, to direct the AAG to file a Complaint and Notice of Hearing at the Office of the Administrative Hearings against the firm and the Registrant regarding File Nos. 2013.032 and 2015.020. The motion passed 4 – 0. Layne R. Simmons, LeRoy M. Gaintner, and Giselle C. Alexander were conflicted and recused themselves from the votes. Lisa Gervase noted that she would work with the AAG to pick hearing dates.

COMMITTEE RECOMMENDATIONS – INVESTIGATION FILES/INITIAL ANALYSIS FILES

File No. 2016.066; Bingaman, Richard File No. 2016.067; Bingaman, Richard E., CPA, PLLC D. Jay Ryan, the Registrant’s attorney, was present and provided a statement to the Board. Gary L. Freed stated that he agrees with the Accounting and Auditing Standards Committee’s recommendation to offer a Decision and Order (By Consent). A motion was made by Gary L. Freed, seconded by LeRoy M. Gaintner, to accept the Committee’s recommendation to offer the Registrant and the Firm on File Nos. 2016.066 and 2016.067 the Decision and Order (By Consent) and to add to section 12 of the Order reflects $200 of fees and cost and that it be paid within 90 days of the effective date of the Order. The motion passed 6 – 1.


William C. Heimerdinger voted nay.


Response/Counteroffers/Non-Response to Offered Decision and Order (By Consent) File No. 2015.110; Estes, Charles

Gary Freed was conflicted and was not present for the discussion. Nathaniel Scheer, the Registrant’s attorney, provided a statement to the Board on behalf of Mr. Estes. A discussion amongst Board and Staff ensued regarding crafting language that would be mutually agreeable between the Board and the Registrant. Layne R. Simmons clarified with Mr. Scheer that Mr. Estes agrees with the proposed sanctions, other than the reimbursement amount, and that Mr. Estes’ concern is about certain language in the proposed Consent Order. Further discussion amongst the Board, Staff and Mr. Scheer ensued regarding the Registrant’s position.

EXECUTIVE SESSION

A motion was made by LeRoy M. Gaintner, seconded by Giselle C. Alexander, to go into executive session at 11:31 a.m. to obtain legal advice from the AAG regarding agenda item XV.I.3 pursuant to A.R.S. § 38-431.03(A)(3). The motion passed 6 – 0. Gary L. Freed was conflicted and recused himself from the vote. He was not present during this executive session. After consideration in executive session, the Board reconvened in open session at 11:45 a.m.

OPEN SESSION ITEMS FOR REVIEW, DISCUSSION AND POSSIBLE ACTION INCLUDING DISCIPLINARY ACTION

Response/Counteroffers/Non-Response to Offered Decision and Order (By Consent) File No. 2015.110; Estes, Charles A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger, to direct the AAG to negotiate with the Registrant’s attorney regarding the terms of the Decision and Order (By Consent) and for it then to be presented back to the Board for consideration. The motion passed 6 – 0. Gary L. Freed was conflicted and recused himself from the vote.


INITIAL ANALYSIS File No. 2017.026 AAG Scott Donald provided the Board with clarification regarding reciprocity and stated that the Board may want to refrain from offering an interim order. Further, the AAG provided that the Board may decide to open an investigation file to gather more information regarding the matter. A motion was made by LeRoy M. Gaintner, seconded by Giselle C. Alexander, to open an investigation file. The motion passed 7 – 0. Staff provided the Registrant information regarding the investigative process. Staff asked for clarification from the Board regarding the processes on handling the investigation. The Board provided guidance to Staff that the matter be assigned to an investigatory committee.

COMMITTEE RECOMMENDATIONS – COMPLAINT/INITIAL ANALYSIS FILES

File No. 2017.024 Julie Cissne made a statement to the Board regarding the aforementioned file. A discussion amongst the Board and Ms. Cissne ensued regarding the matter.

File Nos. 2016.171 and 2017.034 File No. 2017.005 File No. 2017.024 File No. 2017.025 A motion was made by Gary L. Freed, seconded by William C. Heimerdinger, to accept the Tax Committee’s recommendation to close the aforementioned files due to no violations of professional standards. The motion passed unanimously.


File Nos. 2016.069; Vakula, Steven and 2016.164; IRS X IT Strategies File Nos. 2016.070; Vakula, Steven and 2016.165; IRS X IT Strategies File Nos. 2016.108; Vakula, Steven and 2016.109; IRS X IT Strategies Staff provided a brief background of the matter and the Committee’s recommendation. LeRoy M. Gaintner noted that some of the CPE course titles were strange. A motion was made by LeRoy M. Gaintner, seconded by Layne R. Simmons, to refer the Registrant’s most recent CPE reporting to the CPE Committee for a CPE audit. The motion passed 7 – 0.

ADVISORY COMMITTEE UPDATE

John C. Todd, Law Review Advisory Committee Chairperson – Update Regarding Policy Positions that the Committee has Recommended Regarding the Topic of Firm Registration John C. Todd provided an update to the Board regarding policy positions that the Committee had recommended regarding the topic of firm registration. Mr. Todd stated that the Committee voted to recommend a policy to the Board that any CPA that is performing any service that would be subject to an AICPA peer review should be required to have a peer


review, and he provided that this recommendation came about because it is anticipated that the term “firm” would be redefined. With this direction, firms that were not registered with the AICPA because they purposely did so to avoid the peer review process would be excluded. Mr. Todd asked the Board for feedback regarding the idea. Layne R. Simmons stated that the Board does not have any disagreements with it. A discussion amongst the Board and Staff ensued to clarify the matter. John C. Todd also provided the Board with a recommendation from the Committee for a policy statement, which states that any firm excluding sole practitioners that have a principal place of business in this state that want to use the CPA designation in its name must be owned by 51 percent or more by CPAs. Monica L. Petersen provided the Board a preview of the context of the motions and the discussion that ensued at the Committee meeting. Further, a discussion amongst the Board and Staff ensued regarding the proposed and current rule and regulations and how to craft the new rules to further clarify the matters at hand. A motion was made by Gary L. Freed, seconded by Giselle C. Alexander, that it would be the policy of the Board, going forward, to direct the Committee to develop proposed rules and statutes that identify that CPAs that practice in the form of firms that are 51 percent or more owned by CPAs and provide attest services or compilations must register as a firm. Further, that associations of CPAs, where there are two or more CPAs practicing in conjunction and are providing CPA services, whether they have the name CPA or not in the firm name, must be registered as a CPA firm (if they have 51 percent or more ownership with CPAs.) Further, that the Committee develop language for potential carve outs for wealth management and law firms. The motion passed 7 – 0. The Board recessed from 12:58 p.m. – 1:22 p.m.

ASSISTANT ATTORNEY GENERAL’S REPORT Executive Session

A motion was made by Gary L. Freed, seconded by Douglas N. Kimball, to go into executive session at 1:23 p.m. to obtain legal advice from the AAG regarding agenda item VI, pursuant to A.R.S. § 38-431.03(A)(3). The motion passed unanimously. After consideration in executive session, the Board reconvened in open session at 1:56 p.m.

Open Session LEADERSHIP REPORT

Executive Director Update Budget Update Prior to the meeting, Monica L. Petersen provided the Board with a written outline and summary of the Executive Director Update, which included the budget update. Ms. Petersen


stated that she would be happy to answer any inquiries the Board may have. No questions were provided by the Board at the time. Agency Operations Update Monica L. Petersen stated that the update is included in the written summary of the Executive Director Update. No inquiries were provided by the Board at the time.


HB 2613 – Arizona Department of Administration (ADOA) Non-Health Regulatory Board Licensing Study Monica L. Petersen provided a background and summary of the matter. Ms. Petersen also provided the Board a draft outline for the Board’s response to the HB 2613 Consolidation Study, and highlighted notable details from the draft outline.

LEADERSHIP REPORT

Assistant Director – Regulation and Compliance Update Valli Goss provided the Board with a summary of the Staff’s internal dialogue regarding CPE pre-approval provisions and pre-issuance peer review provisions in Decisions and Orders (By Consent). Ms. Goss noted that the Board may want to consider removing some of the provisions from standard templates and instead include them on a case-by-case. Ms. Goss also provided the Board with feedback from the Accounting and Auditing Advisory Committee regarding the provisions. A discussion amongst the Board and Staff ensued regarding the current provisions and possible changes. A motion was made by Gary L. Freed, seconded by Layne R. Simmons, to direct the Committees to recommend, when they prepare draft Decisions and Orders (By Consent) for the Board’s consideration, whether CPE should be pre-approved. The motion passed 7 – 0. A discussion amongst the Board, Staff, and AAG ensued to further clarify the processes whereby the CPE Committee makes recommendations regarding CPE to the Board. Valli Goss inquired, regarding Decisions and Orders (By Consent) containing pre-issuance peer review provisions, if the Board wants to continue to include template language which requires Registrants to give a copy of their Decision and Order (By Consent) to the peer reviewer. Gary L. Freed stated that the peer reviewers should be told what the weaknesses are in order to know what to look for when making the peer reviews. Monica L. Petersen provided input on the subject. A discussion ensured amongst Board members and Staff. A motion was made by Layne R. Simmons, seconded by LeRoy M. Gaintner, that the pre-issuance peer review provision should continue to include the requirement that a copy of the Decision and Order (By Consent) be provided to the peer reviewer. The motion passed 7 – 0.


Monica L. Petersen noted that the Board may also want to delete template language which disallows CPE if the Registrant has not submitted a request for CPE pre-approval at least 90 days in advance. A motion was made by William C. Heimerdinger, seconded by Douglas N. Kimball, to delete the template language which disallows CPE if the Registrant has not submitted a request for CPE pre-approval at least 90 days in advance. The motion passed 7 – 0. Monica L. Petersen also raised the subject of live/classroom CPE requirements in templates, and recommended to the Board that if the Board wants the CPE to be in a live/classroom setting, it should be part of the motion and not a standard provision in the Decision and Order (By Consent) template. A motion was made by William C. Heimerdinger, seconded by LeRoy M. Gaintner, to delete the standard live/classroom requirement for template Decisions and Orders (By Consent). The motion passed 7 – 0.

Systems Manager Update Monica L. Petersen provided the Board an update regarding Staff’s computer refresh. Additionally, Ms. Petersen noted that there is also an update on the Board’s website, and pointed out changes to the calendar.

INITIAL ANALYSIS

File No. 2017.048 Staff provided a brief background and summary of the file. A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger, to take no action and close the compliance file. The motion passed 7 – 0.

COMMITTEE RECOMMENDATIONS – COMPLAINT/INITIAL ANALYSIS FILES

File No. 2017.030 File No. 2017.031 A motion was made by Gary L. Freed, seconded by William C. Heimerdinger, to accept the Accounting and Auditing Advisory Committee’s recommendation to close File Nos. 2017.030 and 2017.031 due to no violations of professional standards. The motion passed 7 – 0. File No. 2017.027 A motion was made by Gary L. Freed, seconded by William C. Heimerdinger, to accept the Accounting and Auditing Advisory Committee’s recommendation to open an investigation file for File No. 2017.027. The motion passed 7 – 0. File Nos. 2016.162 and 2016.163


A motion was made by Gary L. Freed, seconded by Douglas N. Kimball, to accept the Tax Committee’s recommendation to open investigation files for File Nos. 2016.162 and 2016.163. The motion passed 7 – 0.


File No. 2016.026; Watson, CPA, PC File No. 2017.047; Watson, Matthew Valli Goss suggested amendments to the draft Decision and Order (By Consent) following the Board’s earlier motions regarding template provisions. A motion was made by Gary L. Freed, seconded by Layne R. Simmons, that the Board accept the Accounting and Auditing Advisory Committee’s recommendation to offer the Registrant and the Firm on File Nos. 2016.026 and 2017.047 a D&O for a practice restriction, minimum of 40 hours of live, in-person CPE in the area of audits, pre-issuance peer review for the first three audit engagements performed by Registrant and Registrant Firm, and the reimbursement of Board Fees and Costs in the amount of $200.00 within 90 days of the effective date of the D&O. The motion passed 7 – 0. File Nos. 2016.143; Peer, Christopher and 2016.144; Peer, Christopher, CPA, PC A motion was made by Gary L. Freed, seconded by LeRoy M. Gaintner, to accept the Tax Committee’s recommendation to issue to the Registrant and the Firm on File Nos. 2016.143 and 2016.144 an Administrative Letter of Concern, as amended at the Committee’s October 6, 2016 meeting. The motion passed 7 – 0.

COMMITTEE RECOMMENDATIONS – PEER REVIEW

File No. 2016.158; Bear, Teresa, CPA Staff provided the Board a brief summary regarding the background of the file. LeRoy M. Gaintner noted that minutes from the Peer Review Oversight Advisory Committee were provided for the Board’s review. A motion was made by LeRoy M. Gaintner, seconded by Douglas N. Kimball, to issue the Administrative Letter of Concern as drafted. The motion passed 7 – 0. File No. 2017.076; Allis, John, III, CPA, P.C. A motion was made by Gary L. Freed, seconded by Giselle C. Alexander, to accept the Peer Review Oversight Advisory Committee’s recommendation to issue an order for peer review. The motion passed 7 – 0. LeRoy M. Gaintner noted his concern and stated that he wished there were other options for the Board to pursue. File No. 2017.077; Betts, Larry B., CPA PC A motion was made by Gary L. Freed, seconded by LeRoy M. Gaintner, to accept the Peer Review Oversight Advisory Committee’s recommendation to issue an order for peer review. The motion passed 6 – 0.


William C. Heimerdinger was not present for the vote. File No. 2017.078; Elsen, Joanne M., CPA, PC A motion was made by Gary L. Freed, seconded by LeRoy M. Gaintner, to accept the Peer Review Oversight Advisory Committee’s recommendation to issue an order for peer review. The motion passed 6 – 0. William C. Heimerdinger was not present for the vote.

ALLEGED UNLAWFUL USE OF DESIGNATION

File No. 2017.050 A motion was made by Gary L. Freed, seconded by Douglas N. Kimball, to accept the Respondent’s response and close the compliance file due to lack of evidence to support filing an unlawful use of the CPA designation injunction. The motion passed 6 – 0. William C. Heimerdinger was not present for the vote.

REVIEW AND DISCUSSION OF COMPLAINT AGING REPORT

LeRoy M. Gaintner noted the extensive detail in the aging report regarding the Board’s compliance matters. Monica L. Petersen explained to the Board the multi-purpose functions of the aging report.


Educational Enhancement Reviews (EERs) and Applicable Statutes and Rules Monica L. provided a brief background and summary regarding the matter and why it was on the Board’s agenda. The Board ultimately took no action on the agenda item. Settlement Offer and/or Open an Investigation File File Nos. 2015.082; Godbehere, Donald and 2016.008; Godbehere, Donald File No. 2017.079 Staff provided the Board with a summary of the matter. A motion was made by Gary L. Freed, seconded by Douglas N. Kimball, that the Board vote to open an investigation file for File No. 2017.079 and to approve the Decision and Order (By Consent) for revocation for the individual certificate and firm registration, which the Registrant had signed. The motion passed 6 – 0. William C. Heimerdinger was not present for the vote. Board’s September 26, 2016 Motion to Direct the Assistant Attorney General to File an Injunction and Board’s September 26, 2016 Motion to Direct the Assistant Attorney General to File a Complaint and Notice of Hearing File Nos. 2016.044; Wengert, Trace and 2016.045; Wengert, Trace, CPA, PLLC


File Nos. 2016.044; Wengert, Trace and 2017.045; Wengert, Trace, CPA File Nos. 2017.059 and 2017.060

Executive Session

A motion was made by Gary L. Freed, seconded by Douglas N. Kimball, to go into executive session at 3:14 p.m. to obtain legal advice from the AAG regarding agenda item XV.E and XV.F, pursuant to A.R.S. § 38-431.03(A)(3). The motion passed 6 – 0. William C. Heimerdinger was not present for the vote. After consideration in executive session, the Board reconvened in open session at 3:26 p.m.

Open Session ITEMS FOR REVIEW, DISCUSSION AND POSSIBLE ACTION INCLUDING DISCIPLINARY ACTION

Board’s September 26, 2016 Motion to Direct the Assistant Attorney General to File an Injunction and Board’s September 26, 2016 Motion to Direct the Assistant Attorney General to File a Complaint and Notice of Hearing File Nos. 2016.044; Wengert, Trace and 2016.045; Wengert, Trace, CPA, PLLC File Nos. 2016.044; Wengert, Trace and 2017.045; Wengert, Trace, CPA File Nos. 2017.059 and 2017.060 A motion was made by LeRoy M. Gaintner, seconded by Douglas N. Kimball, to defer action at this time and to instruct Staff to continue to monitor the matter. The motion passed 7 – 0. Board to Review and Consider Possible Disciplinary Action and/or Open an Investigation File File No. 2017.008 Staff provided a summary of the file to the Board and how it originated. Staff noted the Board’s motion on September 26, 2016 to grant the Registrant’s request for an exemption of the remaining 64 hours of CPE in the form of a Decision and Order (By Consent) to include voluntary relinquishment of his certificate effective December 31, 2016, at the Registrant’s request. A motion was made by Gary L. Freed, seconded by Layne R. Simmons, to open the investigation file. The motion passed 7 – 0. Gary L. Freed explained that he did not include the Decision and Order (By Consent) in the motion as he is opposed to the premise. A motion was made by LeRoy M. Gaintner, seconded by William C. Heimerdinger, to offer the Decision and Order (By Consent) as drafted to the Registrant. The motion passed 4 – 3. Gary L. Freed, Giselle C. Alexander, and Julie S. Klewer voted nay.


File No. 2017.029 LeRoy M. Gaintner inquired with Staff as to what accounting services the Registrant’s unregistered LLC firm provides. Gary L. Freed noted that the accounting services the unregistered firm provides are listed on its Facebook page. A motion was made by Gary L. Freed, seconded by Douglas N. Kimball, that the Board open the investigation file, and offer an amended Decision and Order (By Consent) for suspension, with the following amendments to the Board’s September 26, 2016 motion: an additional eight hours of CPE in ethics; the addition of a violation pursuant to A.R.S. § 32-731, as the Registrant owns an unregistered LLC firm that is engaged in the practice of accounting; and the addition of a requirement that if the Registrant’s suspension is terminated, the Registrant must immediately register his LLC firm. The motion passed 7 – 0.

Response/Counteroffers/Non-Response to Offered Decision and Order (By Consent)

File No. 2017.016; MSN, CPA, PC A motion was made by Gary L. Freed, seconded by William C. Heimerdinger, to rescind the July 11, 2016 motion to offer the Registrant a Decision and Order (By Consent) for revocation, because the firm qualification issue under A.R.S. § 32-742(A) has now been cured by the partner-in-charge’s renewal of his individual certificate, and to offer the Registrant a revised Decision and Order (By Consent) pursuant to A.R.S. § 32-742(B)(1)(permitting disciplinary action against firm because of the suspension or revocation of a partner’s certificate) and A.R.S. § 32- 741(A)(6)(violation of any of the provisions of the chapter)(as incorporated by A.R.S. 32-742(B)) for an administrative penalty of $100.00 per week for each week the Registrant was in violation of firm qualification requirements under A.R.S. § 32-731(a)(1), which totals $500.00. The motion passed 7 – 0.

File No. 2017.018; Remote Accounting, PLC Staff provided the Board with a brief background regarding the matter. A motion was made by Gary L. Freed, seconded by Douglas N. Kimball, to rescind the July 11, 2016 motion to offer the Registrant a Decision and Order (By Consent) for revocation, because the firm qualification issue under A.R.S. § 32-742(A) has now been cured by the partner-in-charge’s renewal of his individual certificate, and to offer the Registrant a revised Decision and Order (By Consent) pursuant to A.R.S. § 32-742(B)(1)(permitting disciplinary action against firm because of the suspension or revocation of a partner’s certificate) and A.R.S. § 32- 741(A)(6)(violation of any of the provisions of the chapter)(as incorporated by A.R.S. 32-742(B)) for an administrative penalty of $100.00 per week for each week the Registrant was in violation of firm qualification requirements under A.R.S. § 32-731(a)(1), which totals $1,500.00. The motion passed 7 – 0. File No. 2017.033; Heywood, Roger, PLC Staff provided the Board with a brief background regarding the matter and why it was before the Board again.


A motion was made by Gary L. Freed, seconded by Douglas N. Kimball, to direct the AAG to file a complaint and notice of hearing for revocation of the firm’s registration pursuant to A.R.S. § 32-742(A) for failure to meet the firm qualification requirements in A.R.S. § 32-731(A)(1), which requires at least one partner to be a CPA in good standing, and pursuant to A.A.C. R4-1-455.03(F) and A.R.S. § 32-741(A)(15) for failing to respond in writing or furnish information in a timely manner to the Board. The motion passed 7 – 0.

Application to Sit for the Uniform CPA Examination, Recommended Denial by Certification Committee Tumati, Srihari Layne R. Simmons provided a summary of the matter. A motion was made by Gary L. Freed, seconded by Douglas N. Kimball, to accept the Certification Committee’s recommendation to deny the applicant’s application. The motion passed 7 – 0.

Request for Inactive Status and/or Disability Fee WaiverAschenbrenner, Alice M. 6165-E Chen, Wendy P. 14953-R Cherry, Karen E. 11499-E Devlin, James Charles 8012-E Fullerton, Sandra Ann 6838-E Henry, Robert Anthony 2447-E Johnson, Laurence Ernest 2790-E McAllister, Elizabeth A. 8862-R Morrow, Brian Roy 15022-E

Pellman, Reno M. 13712-E Ragsdale, Linda K. 14387-E Samuels, David George 1403-E Sanaghan, Lorelei 11137-E Schultz, David G. 16200-R Stevens, Aaron A. 16378-E Ulman, Ronald J. 11494-R Walsh, Chantelle 12478-E Waran, Sam 1155

A motion was made by LeRoy M. Gaintner, seconded by Giselle C. Alexander, to approve the request for inactive status for the abovementioned Registrants. The motion passed 7 – 0.

Cocoma, Anne Elizabeth 7422-E A motion was made by LeRoy M. Gaintner, seconded by Gary L. Freed, to approve the Registrant’s request for inactive status due to good cause, but to deny the request for fee waiver. The motion passed 7 - 0.

Morrow, Brian Roy 15022-E A motion was made by Douglas N. Kimball, seconded by LeRoy M. Gaintner, to approve the Registrant’s request for inactive status. The motion passed 7 – 0. Norton, Jeanne L. 12222-E A motion was made by Gary L. Freed, seconded by William C. Heimerdinger, to approve the Registrant’s request for inactive status. The motion passed 7 – 0. Renken, Keith William 541-E


Discussion ensued amongst the Board regarding the Registrant’s current employment and involvement with an audit committee of a company. Staff then clarified that the work that the Board is concerned about is all performed in California. A motion was made by Layne R. Simmons, seconded by William C. Heimerdinger, to approve the Registrant’s request for inactive status. The motion passed 7 – 0. Tomas, Jessica 13604-E Discussion ensued amongst the Board to clarify the nature of the Registrant’s work in relation to working with databases and consultation. Monica L. Petersen mentioned to the Board the definition of consulting services under A.R.S. § 32-701(8). A motion was made by LeRoy M. Gaintner, seconded by Giselle C. Alexander, to approve the Registrant’s request for inactive status. The motion passed 6 – 1. Gary L. Freed voted nay. Request for Retired Status and/or Disability Fee Waiver Townsend, Theresa L. 8667-R A motion was made by LeRoy M. Gaintner, seconded by Douglas N. Kimball, to approve the Registrant’s request for retired status, but to deny the request for a disability fee waiver. The motion passed 7 – 0. Ward, Cynthia Ann 8997-E A motion was made by LeRoy M. Gaintner, seconded by Douglas N. Kimball, to approve the Registrant’s request for retired status. The motion passed 7 – 0. Request for NTS Extension Dugar, Niraj Lahai, Sia Nyama A motion was made by Gary L. Freed, seconded by William C. Heimerdinger, to approve the Registrant’s requests due to good cause. The motion passed 7 – 0. Request for a CPE Waiver /Extension/Exemption and/or Fee Waiver Allison, Rebecca L. 17970-E A motion was made by Douglas N. Kimball, seconded by Gary L. Freed, to approve the Registrant’s request for an extension for 31 days due to good cause. The motion passed 6 – 0. William C. Heimerdinger was conflicted and recused himself from the vote. Carlson, Eric J. 10827-E A motion was made by Gary L. Freed, seconded by Douglas N. Kimball, to deny the CPE extension request for failure to show good cause and further that the Board offer a Decision and Order (By Consent) for suspension for one year with possible early termination upon


completion of CPE, and if not accepted within 30 days, for the Board to proceed with a formal hearing. The motion passed 7 – 0. Kyger, Melinda A. 17154-R William C. Heimerdinger inquired if relocation is good cause for granting a request for a CPE extension. A discussion amongst the Board ensued. A motion was made by Gary L. Freed, seconded by Giselle C. Alexander, to approve the Registrant’s request for a CPE extension. The motion passed 6 – 1. William C. Heimerdinger voted nay. Ribble, Sandra C. 12834-E Discussion amongst the Board and Staff ensued regarding the matter. Julie S. Klewer requested that Staff modify the staff feedback sheet. A motion was made by Douglas N. Kimball, seconded by Layne R. Simmons, to deny the Registrant’s requests for a disability fee waiver, exemption of four CPE hours, and CPE extension, and further to offer a Decision and Order (By Consent) for suspension for one year, to allow for early termination upon completion of CPE, and if not accepted within 30 days, for the Board to proceed with a formal hearing. The motion passed 7 – 0. Shelton-Divito, Mary Jo 4658-E A motion was made by Gary L. Freed, seconded by William C. Heimerdinger, to approve the Registrant’s CPE extension for good cause. The extension is granted for 120 days, or thru January 31 2017, due to the extent and timing of her medical conditions and circumstances. The motion passed 7 – 0. Compliance/Non-Compliance with CPE Requirements Holzhauer, Robert E. 9433-R LeRoy M. Gaintner noted that the Board may be willing to give the Registrant the benefit of the doubt. A motion was made by William C. Heimerdinger, seconded by Gary L. Freed, to accept the four hours of CPE at issue and find the Registrant compliant. The motion passed 7 – 0. Olson, D. Sam 6150-E Discussion ensued amongst the Board regarding the Registrant’s non-compliance with CPE requirements. A motion was made by Gary L. Freed, seconded by William C. Heimerdinger, that the Registrant be offered a D&O for suspension for one year for non-compliance with CPE requirements, with possible early termination upon completion of the required CPE or if the Registrant can produce evidence of attendance; and, if not accepted by the Registrant within 30 days, for the Board to proceed with a formal hearing. The motion passed 7 – 0.


Application for Reinstatement from Expired Status, Recommendation for Non-Compliance by the CPE Advisory Committee Daie, Teresa Paul 7977-E A motion was made by Gary L. Freed, seconded by William C. Heimerdinger, that the Board reject the CPE Advisory Committee's recommendation that the applicant be found to be non-compliant with CPE requirements, and that the application for reinstatement be approved. The motion passed 7 – 0. Compliance/Non-Compliance with CPE Requirements and Potential False and Misleading Statements to the Board Hughes, Timothy F. 6518-E A motion was made by Gary L. Freed, seconded by Douglas N. Kimball, to offer a Decision and Order (By Consent) for suspension for one year for non-compliance with CPE requirements, with no possibility of early termination, and if not accepted within 30 days, to proceed to hearing. Mr. Kimball further moved to impose an administrative penalty of $1,000.00 for making false statements. The motion failed 2 – 5. Layne R. Simmons, LeRoy M. Gaintner, William C. Heimerdinger, Julie S. Klewer, and Giselle C. Alexander voted nay.

Julie S. Klewer inquired into the basis regarding the Registrant’s alleged dishonesty, and stated that the Board needed more proof. Discussion amongst the Board ensued regarding additional investigation, and regarding possible consequences to the Registrant if the allegations of dishonesty are true. A motion was made by Layne R. Simmons, seconded by Julie S. Klewer, to invite the Registrant for an investigative interview. The motion passed 7 – 0. A motion was made by Layne R. Simmons, seconded by Douglas N. Kimball, to open an investigative file. The motion passed 7 – 0. CPE Audit Extension Request or Failure to Timely Respond Tadesse, Belaynesh 8286-E Discussion amongst the Board ensued regarding the matter. A motion was made by Douglas N. Kimball, seconded by Layne R. Simmons, to deny the Registrant’s CPE audit extension request and to offer a Decision and Order (By Consent) for an administrative penalty in the amount of $100.00 for late filing. The motion passed 5 – 1. LeRoy M. Gaintner voted nay and William C. Heimerdinger recused himself from the vote due to a conflict of interest. Failure to Respond and/or Failure to Timely Respond Myers & Myers, CPA, P.C. 2239-C Rego, Dorothy A., PLLC 2918-L


A motion was made by Gary L. Freed, seconded by Douglas N. Kimball, that the Board direct the AAG to file Complaints and Notices of Hearing for revocation for failure to respond against each of the two Registrants. The motion passed 7 – 0. Issues from and Regarding the American Institute of Certified Public Accountants (AICPA) Peer Review Update No discussion ensued and no action was taken.

SUMMARY OF CURRENT EVENTS

Gary L. Freed provided the Board with a summary of what he learned from the NASBA Conference regarding new CPE standards, nano-learning, and that new standards will require Registrants to take at least 20 hours of CPE in each renewal year.

IDENTIFICATION OF FUTURE MEETING AGENDA ITEMS

Annual evaluation for the Executive Director and the timing of the evaluation.

Timing and submission of supplemental packets to the Board. ADJOURNMENT

A motion was made by William C. Heimerdinger, seconded by Douglas N. Kimball, to adjourn the meeting. The motion passed 7 – 0. The meeting adjourned at 4:35 p.m.

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