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ARIZONA STATE BOARD OF ACCOUNTANCY OPEN SESSION MINUTES

December 5, 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 8:31 a.m. to 8:57 a.m., from 11:10 a.m. to 11:14 a.m., and from 11:22 a.m. to 11:26 a.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 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 GUESTS PRESENT AND/ORPARTICIPATING:

Adela E. Jiménez, CPA, CGMA ...................................................COO and CFO, ASCPA David Freeland ....................... Arizona Association of Accounting and Tax Professionals Mo Zhang ............................................................................................................ Applicant

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 MEETING AGENDA December 5, 2016

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

There were no members of the public who addressed the Board at this time.

DISCUSS, AMEND AND APPROVE MINUTES Scott Donald provided the Board members an update regarding the correct protocol to approve open session and executive session minutes. LeRoy M. Gaintner, Julie S. Klewer, William C. Heimerdinger, and Gary L. Freed provided recommended changes to the November 7, 2016 Open Session Board minutes. A motion was made by Gary L. Freed, seconded by Julie S. Klewer and passed unanimously to approve the November 7, 2016 Open Session Board minutes, as amended. William C. Heimerdinger and LeRoy M. Gaintner provided recommended changes to the November 7, 2016 Executive Session minutes. A motion was made by Gary L. Freed, seconded by Julie S. Klewer and passed unanimously to approve the November 7, 2016 Executive Session Board minutes, as amended.

DECLARATION OF CONFLICTS OF INTEREST Gary L. Freed declared a conflict of interest on the following agenda items:

Agenda Item X.D.1 – File No. 2015.110; Estes, Charles Agenda Item X.H.8 – Krushinsky, Kristen N. 13243-E

Giselle C. Alexander declared a conflict of interest on the following agenda item:

Agenda Item X.H.12 – Palmer, Brandt R. 15891-E CONSENT AGENDA

William C. Heimerdinger declared a conflict of interest on the following consent agenda (V) items:

Agenda Item V.G.3 – Baldwin, Jason C. Agenda Item V.G.19 – O’Brien, Emily S.

A motion was made by LeRoy M. Gaintner, seconded by Douglas N. Kimball and passed 6 – 0 – 1, to approve consent agenda items V.G.3 and 19. William C. Heimerdinger was conflicted and recused himself from the vote. Layne R. Simmons declared a conflict of interest on the following consent agenda (V) items:

Agenda Item V.C.138 – Young, Eric Seth, CPA 5304-S


A motion was made by LeRoy M. Gaintner, seconded by Douglas N. Kimball and passed 6 – 0 – 1, to approve consent agenda item V.C.138.

Layne R. Simmons was conflicted and recused himself from the vote.

A motion was made by Douglas N. Kimball, seconded by William C. Heimerdinger and passed unanimously, to approve the remainder of the consent agenda.

A. Recommended for Registration of Firms for the Following Applicants: 1. Accounting Made Simple, PLLC

Partner: Tanya Stogsdill-Lees 16840-R 2. Business Entrepreneur Consulting LLC

Partner: Barry Eisenstat 8434-R 3. David F. Rogers, CPA, PLLC

Partner: David F. Rogers 14108-E 4. Debra L. Daniels, CPA, PLLC

Partner: Debra L. Daniels 9139-E 5. Hopkins Tameron Hostal PLLC

Partner: David J. Hopkins 3804-R 6. J. Brad Jenner, CPA, PC

Partner: J. Brad Jenner 5671-E 7. James C. Darling, CPA, P.C.

Partner: James Chester Darling 5106-E 8. Julian C. Martinez, CPA, PLLC

Partner: Julian Martinez 17098-E 9. Quick & Associates, PC

Partner: Keith D. Boerum 16366-E 10. Robert V. Ramirez CPA PLLC

Partner: Robert V. Ramirez 9078-E

B. Recommended for Firm Name Change:

1. Comish and Armus CPAS, LLC From: Comish & Horowitz CPAS, LLC 3511-L Partner: Joseph Blake Comish 17690-R

2. CPA Financial Advantage, P.C. From: Brown, Bench, Wright & Mcleod, P.C. 243-C Partner: Kathleen M. Bench 8234-E

3. Saguaro Accounting PLLC From: Saguaro Accounting & Bookkeeping PLLC 3215-L Partner: Donald P. Fredrickson 16235-E

4. Shaffer & Danker, CPA’s, PC From: Frederick C. Shaffer, CPA, P.C. 702-C Partner: Frederick Charles Shaffer 3098-R


C. Recommended for Firm Cancellation – Do Not Wish to Renew: 1. Abbasi, Rida, CPA 6208-S 2. Allen, Douglas M., CPA 5164-S 3. Ambelang, Peter, CPA 4136-S 4. Armus, Jonathan B., P.C. 2267-C 5. Ashcraft, Joan M., CPA 4271-S 6. Azrieli, Renee N., CPA 5651-S 7. Banda, Aaron M., CPA 4293-S 8. Bender, Alvin H., CPA 4927-S 9. Bentley Company 4639-S 10. Blair, Gary Scott, CPA 5208-S 11. Blatter, Sheldon Mark, CPA 4204-S 12. Bradshaw Mountain Tax Services 6197-S 13. Briner, Jerome A., CPA 5612-S 14. Bronstein, Stanley F., Attorney at Law, CPA 5569-S 15. Brooker, Ronald Peter, CPA 5385-S 16. Brown, Laurel F., CPA 4506-S 17. Brown, Melanie J., CPA 5683-S 18. Burdick, Timothy B., CPA 4813-S 19. Burton, Diane, CPA 4329-S 20. Butler, Sharon Elizabeth, CPA 6026-S 21. Camm, John F., CPA 5474-S 22. Carone, Delores A., CPA 4332-S 23. Carter, Shannon R., CPA 5597-S 24. Chan, Pamela L., CPA 5949-S 25. Chedester, Yelena, CPA 5465-S 26. Clark, Donald E., C.P.A. 4624-S 27. Coppock, Samuel H., CPA 5501-S 28. Course, Cynthia L., CPA 4419-S 29. Coviello, Salvatore C., CPA 5723-S 30. Daniels, Gary T., CPA 5663-S 31. Dawson, Virginia C., CPA 4687-S 32. Dickson, James D., CPA 4343-S 33. Dillmore, Betty E., CPA 4488-S 34. Donovan, Ruth S, CPA 5884-S 35. Doyle, Dallas Wayne, CPA 5215-S 36. Feldman, Mark David, CPA 4715-S 37. Fix, Grazyna, CPA 4580-S 38. Foshe, Denise K., CPA 6059-S 39. Garrett, Kenneth P., CPA 4525-S 40. Gates, Scott A., CPA 5699-S 41. Gfeller, Richard W., CPA 6033-S 42. Gold, Alan, CPA 5097-S 43. Golusin, Albert, CPA 5272-S 44. Gonzalez, Rosann P., CPA 5461-S 45. Graham, Ruth E., CPA 5686-S


46. Hampton, Marla, CPA 6161-S 47. Hann, Paula 4896-S 48. Hardy, Earl M., CPA 4769-S 49. Harmer, George, CPA 4295-S 50. Hays, Tisha, CPA 5982-S 51. Hearn, Rene, CPA 6140-S 52. Helle, M. Katie, CPA 6235-S 53. Herndon, Rick A., CPA, Pfs, Cfp 5107-S 54. Hodges Jr., William J., CPA 4676-S 55. Holt, Angelique Lee, CPA 5404-S 56. Hoyt, Rochelle, CPA 5199-S 57. Jablonski, Joseph J., CPA 6034-S 58. Jenkins, Beverly A., CPA 4152-S 59. JLS Consulting 4213-S 60. Johnson, Desiree A., CPA 4288-S 61. Johnson, Marsha, CPA 4160-S 62. Johnson, Roger L., CPA 4480-S 63. Kearney, Richard, CPA 5796-S 64. Kipp, Dale E., CPA 4595-S 65. Kitchel, Jon D., CPA 4646-S 66. Klamrzynski, Mark J., CPA 4176-S 67. Kushinsky, Al, CPA 5738-S 68. L.K. Accounting and Consulting 6040-S 69. LaCross, Suzanne M., CPA 6131-S 70. Lahowetz, Katherine C., CPA 6023-S 71. Lawes, Sandra, Accounting & Tax Service 4477-S 72. Lay, Christine M., CPA 5835-S 73. Liberti, Michael J., CPA 5600-S 74. Limparis, Stephen W., CPA 4434-S 75. Litwin, Jeffrey S., CPA 6221-S 76. Lunseth, Elizabeth Walker, CPA 4043-S 77. Makela, Elizabeth L., CPA 4075-S 78. Managed Results CPA 4417-S 79. May, John B., CPA 6128-S 80. McClain, Jeffrey C., CPA 4674-S 81. McLaughlin, Deborah Sleight, CPA 5941-S 82. Moran, Kimberly A., CPA 4495-S 83. Murphy, Arnold H., CPA 4589-S 84. Nehrmeyer, Roy Leonard, CPA 4258-S 85. Noel, Kevin D., CPA 4044-S 86. O'Loughlin, Amy, CPA 5573-S 87. Opstad, Laura L., CPA 4399-S 88. Organized Piggy 6164-S 89. Paull, Rob, CPA 4287-S 90. Penner, Michael M., CPA 5676-S 91. Perkins, Sandra K., CPA 4700-S


92. Peterson, Josiane F., CPA 4440-S 93. Pettyjohn, Larry O., CPA 5016-S 94. Pock, David J., CPA 6149-S 95. Polly, Debra J., CPA 4481-S 96. Puzio, Michael, CPA 4737-S 97. Qualls, Wendy D., CPA 5607-S 98. Quidera, Juanita, CPA 4021-S 99. Ransil, Carrie, CPA 5937-S 100. Rappaport, Stephen I., CPA 4592-S 101. Rauchfuss, Charlotte O., CPA 4946-S 102. Reilly, Mark A., CPA 5243-S 103. Rios, Vicki L., CPA 4180-S 104. Roberson, Gordon, CPA 4621-S 105. Roberts, Michael, CPA 6086-S 106. Rogers, Dennis J., CPA 5028-S 107. Rosenfield, Richard, CPA 5634-S 108. Ruben, Joel L., CPA 6132-S 109. Saba, Mark, CPA 5295-S 110. Saunders, Elizabeth R., CPA 4076-S 111. Scheiner, Steven M., CPA, P.C. 997-C 112. Seufert, C. Elizabeth, CPA 4561-S 113. Smith, Julie A., CPA 6076-S 114. Smith, Lisa M., CPA 5056-S 115. Smith, Stephen L., CPA 4854-S 116. Snyder, Kevin E., CPA 5631-S 117. Standal, Debra L., CPA 4762-S 118. Stephan, Nancy R. O., CPA 6111-S 119. Stern, Jeffrey L., CPA 5411-S 120. Stevens, Michelle M., CPA 5712-S 121. Stogsdill-Lees, Tanya 6094-S 122. Studinger, Robert W., CPA 4087-S 123. Sumner, Louise W., CPA 4089-S 124. Thesling, Gary Albert Von, CPA 4347-S 125. Tocco, Bailey, CPA 5952-S 126. Tolman, Ronald C., CPA 5246-S 127. Trujillo, Arthur, CPA 4599-S 128. Vandenberg, Mary E., CPA 4583-S 129. Vega, Lora, CPA 4582-S 130. Vicario, Lawrence A., CPA 4992-S 131. Walker, Janet A., CPA 5960-S 132. Walker, Matthew, CPA 4229-S 133. Watson, Diana S., CPA 4403-S 134. Weatherly, Melissa R., CPA 4111-S 135. Whitney, Kent Ralph Nelson, CPA 5692-S 136. Wickham, Linda G., CPA 4466-S 137. Young, Donita R., CPA 4887-S


138. Voted on Separately

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

Renew: 1. Amanda R. Lockhart 16342-E 2. Dale E. Kipp 3784-E 3. Jeffrey C. McClain 3426-R 4. Jerome A. Briner 4401-R 5. John William Peel 12427-E 6. Robert T. Singleton, Jr. 4936-R

E. Recommended for Reissuance of Certificate Because of Name Change:

1. Issued as: Cayla Shearer 16307-E ; New Name: Cayla S. Anderson 2. Issued as: Julie Lyon 18045-E ; New Name: Julie Snell 3. Issued as: Laura O'Farrell 12357-E ; New Name: Laura Brunstetter 4. Issued as: Samantha Kohan 16286-E ; New Name: Samantha Pugliese 5. Issued as: Stephanie A. Tosseth 12453-E ; New Name: Stephanie A. Stout

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

Uniform CPA Examination: 1. Anderson, Kyle David 2. Aranda, Alexandra 3. Ayres, Benjamin Frank

Ramos 4. Bajaj, Sonakshi 5. Banks, Curtis Sidney 6. Barnard, Alex Lance 7. Barthelme, Johnathan

Edward 8. Bateman, Jeanette Berry 9. Benson, Katelyn Eyre 10. Bhatt, Abhishek Ashok 11. Boor, Karon Leann 12. Bramble, Zachary James 13. Brooks, Stephanie Lynn 14. Chadha, Mehak 15. Chapman, Buchanan Cole 16. Chavez, Luis Angel 17. Colaric, Jacob Stuart 18. Dokania, Krishna Kumar 19. Dong, Yifei 20. Dudeja, Divya 21. Escalante, Luis Daniel 22. Franco, Neil Edwin 23. Garcia, Andrea Sylvia

24. Goodman, Dillon Pierce 25. Gray, Elizabeth Ann 26. Hardy, Misty Paige 27. Jain, Abhishek 28. Jain, Shweta 29. Jogipeta, Divya 30. Khurana, Amol 31. Kothari, Sujeeth 32. Long, Megan Susanne 33. Looker, Joseph Anthony 34. Lopez, Nicholas John 35. Lowell, Erik Michael 36. Manganiello, Stacyann

Elisabeth 37. Minarcik, Allison Caroline 38. Muddagouny, Apoorva 39. Oman, Paul David 40. Onate, Jessica Danielle 41. Ontiveros, Mark Easton 42. Priyanka, Mary 43. Ridley, Cara Christine 44. Rocchio, Charlotte

Elizabeth 45. Rodriguez, Roberto Nelson 46. Roial, Narcisa L.


47. Selwyn, Susanne Christine 48. Sharma, Pavan Kumar 49. Shi, Tianying 50. Singh, Laxman 51. Singhal, Ankan 52. Sotelo, Liliana 53. Speciale, Emma

Evangeline

54. Sullivan, Kevin Cramer 55. Thanneer, Parineetha 56. Titty, Nitin Thomas 57. Villanueva, Michelle Marie 58. Virani, Neha 59. Wu, Kathy Hua

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

Examination: 1. Akinyemi, Alfred

Olumayokun 2. Anders, Scott Wesley 3. Voted on Separately 4. Bangalore Gopalarao,

Vasanth Kumar 5. Cone, Derek D. 6. de Kelaita, Bel R. 7. Deiner, Charles J. 8. Hamilton, Lacy 9. Iddings, Brandon M. 10. Iffrig, Aaron 11. Kim, Jisun 12. Kowske, Katelynne

13. Kramer, David E. 14. Kuster, Susan 15. Liddicoat, Gary 16. Matney, Jeffrey A. 17. McHugh, James M. 18. Miller, Jacob 19. Voted on Separately 20. Pant, Sailesh R. 21. Sharp, Joseph M. 22. Smith, Neal 23. Szymborski, Kristen L. 24. Talreja, Jatin 25. Zhang, Mo

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

Grade Transfer: 1. Valeja, Neha

I. Recommendation of the Certification Committee for Approval of Certification by Reciprocity: 1. Gelber, Terry H. 2. Sandberg, Janet L.

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

Reciprocity Based on Substantial Equivalency: 1. Abbott, Lyle Andrew 2. Hale, Dawson B. 3. Renberg, Paul Craig 4. Sinko, Bradley M.

5. Suardi, Cesare 6. Tully, Susan Cameron 7. Welsh, Cheryl L. 8. Zerner, Jonah

K. Recommended Approval of Retired Status for the Following Registrants:

1. Caisse, Eugene 16865-R 2. Clarke, D. Jeanne 2559-E

3. Cremer, William Henry 1423-E


4. Dow, John Kevin 1781-R 5. Doyle, Dallas Wayne 1014-

E 6. Durney, Randy Louis 4554-

E 7. Gibson, Lawrence H. 8810-

E 8. Gonzalez, Rosann P.

10677-R 9. Grant, Amy Jo 10166-R 10. Hocken, Jill A. 8473-E 11. Hurlbert, Paula Kay 5915-R 12. Keagy, Richard L. 7335-R 13. Kellogg, Kevin Allen 3900-E 14. Lodwick, Gary A. 2737-E 15. Mezzatesta, Antonio J.

5194-E

16. Moran, Timothy John 3935-E

17. O'Hare, John E. 2224-E 18. Plack, Diane E. 7232-E 19. Rubinstein, Harold J. 4716-

R 20. Schwartz, Mark Jonathan

1282-E 21. Scovill, Gretchen L. 7241-E 22. Silc, Richard E. 12118-R 23. Sleezer, James M. 8277-E 24. Springli, Robert M. 5560-E 25. Szabo, Susan Elizabeth

5004-E 26. Troyer, Karen L. 5075-E

L. Recommended for Reactivation of Certificate from Inactive Status:

1. Greening, Jennifer 14618-E

M. Recommendation of the Peer Review Oversight Advisory Committee for Approval of the Following Firms in Compliance with Peer Review Requirements: 1. Linford, Ronald G., CPA 4345-S

N. Termination of Decision and Order: 1. File No. 2017.011; Little, Donna 2. File No. 2017.013; Rosenfield, Richard 3. File No. 2017.066; Lopez, Bryon

ASSISTANT ATTORNEY GENERAL’S REPORT

The agenda item was called and Gary L. Freed inquired as to whether it be appropriate to go into executive for this item.

EXECUTIVE SESSION

A motion was made by Gary L. Freed, seconded by William C. Heimerdinger and passed unanimously to go into executive session at 8:31 a.m. to obtain legal advice from the AAG regarding litigation matters, pursuant to A.R.S. § 38-431.03(A)(3). After consideration in executive session, the Board reconvened in open session at 8:57 a.m.

OPEN SESSION LEADERSHIP REPORT

ARIZONA STATE BOARD OF ACCOUNTANCY OPEN SESSION MINUTES December 5, 2016

Executive Director Update Budget Update Agency Operations Update Monica L. Petersen provided the Board members with an update of the budget and the agency’s operations, noting in particular the current recruitment efforts for the Program Project Specialist 2 position within the area of Registration and Operations and noted that temporary staff have assisted the agency with reducing a filing backlog. Ms. Petersen also noted the upcoming request for proposal for investigative reviewers, the modified contract language that is being implemented in the request for proposal, and tactical solutions that have been recently rolled out for the sole practitioner renewal forms. Gary L. Freed inquired with Monica L. Petersen regarding certain items on the budget and the variance of revenue. Ms. Petersen shared with the Board the differing renewals that occur every month and a reduced number of retired status requests. Assistant Director of Regulation and Compliance Update Status of Firm Registration Rulemaking Regarding R4-1-455.03(D)(1) Application of Tiffany White for Reinstatement Valli Goss informed the Board of the recent submission of the rulemaking package to the Secretary of State’s Office and the process it will go through. Additionally, Ms. Goss provided the Board an update regarding the reinstatement application submitted by Tiffany White. Monica L. Petersen shared with the Board the reinstatement process. Systems Manager Update Richard Sietz was present and provided the Board with an update regarding recent website updates, technology upgrades, the status of the Accountancy Regulatory Management System, and the status of security.

INITIAL ANALYSIS File No. 2017.080 Layne R. Simmons provided a summary of the matter. LeRoy M. Gaintner stated that he does not see a basis for investigating this matter further. Gary L. Freed recommended that the Board Staff (Staff) send a letter to the Registrant inquiring further into the matter and whether it may affect clients in the State of Arizona. A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer and passed 6 – 1 to take no action and close the compliance file. Gary L. Freed opposed the motion.

REVIEW AND DISCUSSION OF COMPLAINT AGING REPORT Gary L. Freed inquired if the aging report is becoming larger. Monica L. Petersen provided a historical perspective of the aging report and how it is used.


ITEMS FOR REVIEW, DISCUSSION AND POSSIBLE ACTION INCLUDING DISCIPLINARY ACTION

Termination of Order File No. 2016.017; McCormick, Marlene John Oyas provided the Board with a summary regarding the file. Monica L. Petersen informed the Board that the matter would have a delayed effective date as the Decision and Order (By Consent) requires that the suspension be in place for one year. A motion was made by Gary L. Freed, seconded by Julie S. Klewer and passed unanimously to terminate the Decision and Order (By Consent) effective December 10, 2016, as long as there are no issues identified in the interim, since the Registrant has complied with the terms of the Decision and Order (By Consent) and since the one-year suspension ends on December 10, 2016. Status of Compliance Files Following Revocation of Respondent’s Certificate and Respondent Firm’s Registration File No. 2016.085; White, Tiffany File No. 2016.110; White, Tiffany File No. 2016.111; White, Tiffany, CPA, PLC File No. 2016.117; White, Tiffany File No. 2016.118; White, Tiffany, CPA, PLC File No. 2016.150; White, Tiffany, CPA, PLC File No. 2016.160 File No. 2016.161 File No. 2016.172 File No. 2016.173 File No. 2016.174 File No. 2016.175 File No. 2016.176 File No. 2016.177 LeRoy M. Gaintner shared his observations on these matters and provided language that he thought would be appropriate to include in closure letters to the complainants. A motion was made by Gary L. Freed, seconded by Julie S. Klewer and passed unanimously to close File Nos. 2016.085, 2016.110, 2016.111, 2016.117, 2016.118, 2016.150, 2016.160, 2016.161, 2016.172, 2016.173, 2016.174, 2016.175, 2016.176, and 2016.177 since Ms. White and her firm’s registration have been revoked, resulting in the Board having no disciplinary jurisdiction over Ms. White and her firm; and, therefore, the Board cannot proceed to the Office of Administrative Hearings regarding the remaining files. Furthermore, that the Board forward these complaints to the Attorney General’s Office and to direct Staff to send the respective complainants closure letters, that would also explain that if it comes to their attention that Ms. White and her firm continue to use the CPA designation, that the complainants may so advise the Board so that that these files may be reopened for investigation into possible unlawful use of the CPA designation.


Litigation Status and Settlement Discussions Regarding Disciplinary Action File No. 2015.058; Schlottman, Keith; Schlottman CPA’s PLC Christopher Rasmussen and Monica L. Petersen provided a status update of the matter to the Board. Discussion ensued amongst Board members and Staff regarding the reinstatement process, and advantages and disadvantages of certain discipline for Mr. Schlottman and Schlottman CPA’s PLC. A motion was made by Layne R. Simmons, seconded by LeRoy M. Gaintner and passed unanimously to offer the Registrant and Registrant firm a Decision and Order (By Consent) for voluntary relinquishment of the Registrant’s certificate and the Registrant firm’s registration, and as part of that condition, that the Board waives the 150-hour requirement if the Registrant decides to reapply for his CPA certificate; and, that the Registrant will also be subject to pre-issuance review of his first three reports, if the Registrant decides to do any attestation work in the future; and, an administrative penalty of $2,000. The Board recessed from 9:58 a.m. to 10:07 a.m. File No. 2016.139; Briggs, Dean Christopher Rasmussen provided a summary of the matter to the Board. After discussion regarding any applicable administrative penalties for violations of Board statutes and rules, a motion was made by Gary L. Freed, seconded by Douglas N. Kimball and passed unanimously to offer the Registrant a Decision and Order (By Consent) for voluntary relinquishment of the Registrant’s certificate in lieu of proceeding to the Office of Administrative Hearings, for reinstatement to be conditioned upon providing the missing documentation for the hours claimed on the June 26, 2014 renewal form or by submitting additional CPE to cure the deficiency. Further, to direct the Assistant Attorney General to hold off on filing a complaint and notice of hearing pending the Registrant’s signature on the Decision and Order (By Consent), but that if the Registrant does not sign and return the Decision and Order (By Consent) within 30 days of the offer, that the Assistant Attorney General is directed to file complaint and notice of hearing for revocation for failure to respond to and failing to meet CPE rules. Further, that the Registrant pay an administrative penalty of $2,000 for failure to timely respond and $500 for failure to complete CPE audit. Response/Counteroffers/Non-Response to Offered Decision and Order (By Consent) File No. 2015.110; Estes, Charles Gary L. Freed declared a conflict of interest and did not participate. Layne R. Simmons provided a summary of the matter to his fellow Board members. LeRoy M. Gaintner noted that the Registrant passed away. A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer and passed 6 – 0 – 1 to close the compliance file and to not move forward with collection of costs and fees. Gary L. Freed was conflicted and recused himself from the vote.


File No. 2016.127; Scott, Kenneth Christopher Rasmussen provided a summary of the file to the Board. Brief discussion ensued among Board members and Staff as to whether investigators have ever been switched out from a compliance file and common responses that are received from Registrants regarding investigators. A motion was made by Gary L. Freed, seconded by Douglas N. Kimball and passed unanimously that, as the Board does not see any apparent basis for reopening and reassigning the matter to a different investigator, the Board requests input from the investigator regarding the disputed findings of fact; and, furthermore, to direct Staff to send the Registrant’s Attorney’s dissent to the investigator and that the investigator be requested to provide a supplemental report containing the investigator’s position and analysis regarding the dissent, and that the supplemental report come back to the Board for its review and consideration. File No. 2017.065; Shembekar, Renuka Gary L. Freed noted a concern regarding the Registrant’s dissent. Monica L. Petersen shared why the matter would not go to the Office of Administrative Hearings with the underlying cause having been remedied. LeRoy M. Gaintner noted that the Registrant’s CPE deficiency does not appear to be intentional, that the matter was quickly remedied, and that the Registrant quickly responded. Discussion ensued amongst the Board members and Staff regarding ethics CPE requirements and the possibility of an administrative penalty to address on the record the Registrant’s non-compliance with CPE. A motion was made by Gary L. Freed, seconded by LeRoy M. Gaintner and passed unanimously to offer the Registrant a Decision and Order (By Consent) for an administrative penalty of $100 for failure of a CPE audit and in consideration of the Registrant’s mitigating circumstances. File no. 2017.070; Siegler, Lawrence A motion was made by Gary L. Freed, seconded by Julie S. Klewer and passed unanimously to remand the matter back to the CPE Committee to see if the Registrant provided adequate evidence of compliance with CPE requirements. File No. 2017.071; Stevens, Glenn A motion was made by Gary L. Freed, seconded by Julie S. Klewer and passed unanimously to remand the matter back to the CPE Committee to see if the Registrant provided adequate evidence of compliance with CPE requirements. File No. 2017.075; Heath, Holly A motion was made by Gary L. Freed, seconded by LeRoy M. Gaintner and passed unanimously to remand the matter back to the CPE Committee to see if the Registrant provided adequate evidence of compliance with CPE and to offer a Decision and Order (By Consent) for an administrative penalty of $100.


Application to Sit for the Uniform CPA Examination, Recommended Denial by Certification Committee Li, Jiejun A motion was made by Gary L. Freed, seconded by Douglas N. Kimball and passed unanimously to accept the Certification Advisory Committee’s recommendation for denial, due to failure to meet the requirements of 24 semester hours of non-duplicative accounting courses, and that the Board withhold approval until a three-unit upper or lower division accounting course is completed. Littlefield, Daniel Curtis A motion was made by Gary L. Freed, seconded by Douglas N. Kimball and passed unanimously to accept the Certification Advisory Committee’s recommendation for denial, due to failure to meet the requirements of 24 semester hours of non-duplicative accounting courses, and that the Board withhold approval until a three-unit upper or lower division accounting course is completed. Application for Certification by Grade Transfer Charlesbois, Cole Jacki Hancock provided a summary of the matter to the Board and described why this matter was before the Board. Discussion ensued amongst Board members and Staff regarding the specifics of the certification matter, including applicable credit hours and prerequisites. A motion was made by Julie S. Klewer, seconded by Douglas N. Kimball and passed unanimously to go on record as having reviewed the syllabus for the accounting course as previously-requested by the Certification Advisory Committee; and, having determined that it is an upper division course, that the Board approves the applicant’s application. Request for Active Status and Disability Fee Waiver Dai, Lan 9581-E Lerner, Nelson Alan 4045-E Layne R. Simmons provided a summary of the matters to the Board. A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer and passed unanimously that for Dai, Lan 9581-E and Lerner, Nelson Alan 4045-E and based on Staff’s review of the medical documentation provided, that the Board approve the respective Registrants’ request for a disability fee waiver, which the Board is permitted to do under its statutes and rules. Request for Inactive Status Banks, Laura 10375-E Carnahan, John 11212-R Goad, Melissa Coleman 9919-R Hoby, Lori L. 13170-R Johnson, Deanna D. 11257-E


Kuscsik, Andrew 10639-E Martella, Marla S. 13384-E Monaco, David L. 9817-E Ryanita, Alvia 16304-E Shaban, Burlenti 12926-E Zak, Clayton James 7144-E A motion was made by Layne R. Simmons, seconded by Douglas N. Kimball and passed unanimously to approve the requests for inactive status of the aforementioned Registrants. Krushinsky, Kristen N. 13243-E Gary L. Freed declared a conflict of interest and did not participate. A motion was made by Douglas N. Kimball, seconded by Julie S. Klewer and passed 6 – 0 – 1 to approve the request for inactive status. Gary L. Freed was conflicted and recused himself from the vote. Palmer, Brandt R. 15891-E Giselle C. Alexander declared a conflict of interest and did not participate. A motion was made by Douglas N. Kimball, seconded by Julie S. Klewer and passed 6 – 0 – 1 to approve the request for inactive status. Giselle C. Alexander was conflicted and recused herself from the vote. Dawson, Virginia C. 10626-E Gary L. Freed reiterated his concern for the Board to remain consistent in their decisions and summarized the background of the Registrant. Julie S. Klewer mentioned A.R.S. § 32-730.01(A) and how it relates to compensation received by Registrants. A motion was made by Douglas N. Kimball, seconded by Julie S. Klewer and passed unanimously to approve the Registrant’s request for inactive status. Dharmarajan, Preeti 15760-E Discussion ensued amongst the Board members and Staff regarding the Registrant’s employment background, specific responsibilities of his position, and how it relates to his request for inactive status. A motion was made by Gary L. Freed, seconded by LeRoy M. Gaintner and passed unanimously to direct Staff to request further information from the Registrant to determine whether the analysis of financial information is a primary responsibility that has some company-wide relationship or is a minor relationship within the company, through the form of a published job description. Request for Retired Status


Valadez, David Ramirez 6206-E A motion was made by Gary L. Freed, seconded by Julie S. Klewer and passed unanimously to approve the request for retired status, as allowed under the Board’s statutes and rules. Reconsideration of Board’s 11/7/2016 Motion Regarding Request for a CPE Extension/Exemption Ribble, Sandra C. 12834-E Monica L. Petersen provided a summary of the matter to the Board and why it is before the Board again.

EXECUTIVE SESSION

A motion was made by Julie S. Klewer, seconded by LeRoy M. Gaintner and passed unanimously to go into executive session at 11:10 a.m. to discuss confidential information and obtain legal advice, pursuant to A.R.S. § 38-431.03(A)(2) and (3). After consideration in executive session, the Board reconvened in open session at 11:14 a.m.

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

Reconsideration of Board’s 11/7/2016 Motion Regarding Request for a CPE Extension/Exemption Ribble, Sandra C. 12834-E After brief discussion, a motion was made by Julie S. Klewer, seconded by Douglas N. Kimball and passed unanimously to grant the Registrant’s request for a CPE exemption for the at-issue renewal period, and to rescind the November 7, 2016 motion denying the request for a CPE exemption. Request for a CPE Extension/Exemption Chio, Ivy 18064-R After brief discussion, a motion was made by LeRoy M. Gaintner, seconded by Gary L. Freed and passed unanimously to deny the request for a CPE exemption for not qualifying for good cause. Lucas, Kimberly J. 15805-R A motion was made by Gary L. Freed, seconded by Julie S. Klewer and passed unanimously to approve the Registrant’s request for a CPE extension for 39 hours through December 31, 2016, for good cause, pursuant to A.R.S. § 32-730(C). Pickering, Becky 17032-E


Jacki Hancock noted that the Registrant was requesting an exemption and not an extension. A brief discussion occurred amongst the Board members and Staff regarding how requests for extensions and exemptions are submitted.

EXECUTIVE SESSION

A motion was made by Gary L. Freed, seconded by Giselle C. Alexander and passed unanimously to go into executive session at 11:22 a.m. to discuss confidential information and obtain legal advice, pursuant to A.R.S. § 38-431.03(A)(2) and (3). After consideration in executive session, the Board reconvened in open session at 11:26 a.m.

ITEMS FOR REVIEW, DISCUSSION AND POSSIBLE ACTION INCLUDING DISCIPLINARY ACTION

Request for a CPE Extension/Exemption Pickering, Becky 17032-E A motion was made by Julie S. Klewer, seconded by Giselle C. Alexander and passed unanimously to approve the Registrant’s request for a CPE exemption request in this case, for good cause. Trujillo, Loretta Marie 6547-E Jacki Hancock provided a summary of the matter, explaining that the Registrant had felt that she could include the CPE into the renewal submission, but was unable to provide a physical copy due to her recently moving. A motion was made by Gary L. Freed, seconded by William C. Heimerdinger and passed unanimously to approve the extension request and to assess no administrative penalty, for good cause. Failure to Respond and/or Failure to Timely Respond Hoey CPA, PLLC 2634-L A motion was made by Layne R. Simmons, seconded by Julie S. Klewer and passed unanimously to offer a Decision and Order (By Consent) for an administrative penalty of $200 for an untimely response. Non-Profit Accounting Services, L.L.C. 2110-L Valli Goss provided a summary on the matter and informed the Board that the partner-in-charge of this firm was recently offered a Decision and Order (By Consent) for voluntary relinquishment of his certificate. A motion was made by Gary L. Freed, seconded by Julie S. Klewer and passed unanimously to offer the firm, Non-Profit Accounting Services, LLC, a Decision and Order (By Consent) for voluntary relinquishment of the firm registration, pursuant to A.R.S. § 32-731(A)(1) and Arizona Administrative Code (A.A.C.) R4-1-455.03, and to assess no administrative penalty.


Furthermore, if the Registrant does not consent to the Decision and Order (By Consent), then the matter would go before the Board for further consideration. Request from the Public for the Board to Consider Revising Rules for Auditor Transition Gary L. Freed noted that the Board had received a request from a member of the public requesting the Board to consider revising the rules for auditor transitions. Discussion ensued amongst the Board members and Staff regarding the underlying background of the request and the inadvisability of creating auditor transition rules for Arizona which differ from national standards. Julie S. Klewer noted that the compliance file, out of which this request arose, was recommended unanimously by the Accounting and Auditing Advisory Committee to be closed, due to no violations of professional standards. Monica L. Petersen noted several options that the Board may consider. A motion was made by LeRoy M. Gaintner, seconded by Julie S. Klewer and passed 6 – 1 to let the record reflect that the Board considered this matter, and noting that the Accounting and Auditing Advisory Committee’s motion to unanimously recommend closure, the Board took no action on this matter. Gary L. Freed opposed the motion. Proposed Board Rule Revisions Relating to Peer Review Valli Goss provided a summary of the matter to the Board and highlighted the recommended language changes from the Peer Review Oversight Advisory Committee and the recommended language changes from Staff. LeRoy M. Gaintner discussed whether specific language could be altered on A.A.C. R4-1-454(B)(2)(c), so as to indicate that the Registrant would need to “complete” the peer review within a year of the Decision and Order’s effective date, and not just “undergo.” Monica L. Petersen concurred with LeRoy M. Gaintner’s observation. Discussion ensued amongst Board members and Staff regarding further references that could be implemented in the A.A.C R4-1-454(B). Julie S. Klewer identified proposed subsection 5 in the proposed rulemaking package and questioned how it relates to, or may be possibly consolidated into, A.A.C. R4-1-454(B)(2). Discussion ensued amongst the Board members and Staff regarding the consolidation of proposed R4-1-454(B)(5) into R4-1-454(B)(2). A motion was made by William C. Heimerdinger, seconded by Julie S. Klewer and passed unanimously to approve the proposed version of A.A.C. R4-1-454, as amended. Matters from and Regarding the National Association of State Boards of Accountancy (NASBA) Request for Data Access


LeRoy M. Gaintner questioned if there were any legal concerns for permitting NASBA to access the data. Scott Donald stated that there were no concerns, as the information being provided is available through public records. A motion was made by LeRoy M. Gaintner, seconded by Douglas N. Kimball and passed unanimously to approve the data access request from NASBA. Review, Discussion and Possible Action Regarding the Distribution of Board Materials LeRoy M. Gaintner stated that he wanted to highlight the previous size of the supplemental file packet. Monica L. Petersen explained the purpose of the supplemental file packet and the reason why the file size was larger than the usual for the November Board meeting. Discussion ensued amongst the Board members and Staff regarding the supplemental file packet and the purpose it serves in the Board’s responsibility of being an independent reviewer. Scott Donald concurred and stated that it was important that the Board receive a supplemental file packet for its review. Christopher Rasmussen remarked on the administrative process to develop the supplemental file packet. Executive Director Performance Evaluation Gary L. Freed stated that he asked to place this agenda item on this month’s Board agenda to start planning the evaluation process. Layne R. Simmons inquired with Board members as to whether they were okay with the evaluation form as it is. Monica L. Petersen proceeded to generally summarize the process, when comments would be provided, and when comments would be consolidated for presentation to the Executive Director. Mr. Simmons stated that in January, the Board would discuss the comments and consolidate them into a single evaluation; in February, the Board would review the consolidated evaluation; and in March, the Board would present its evaluation to the Executive Director. Layne R. Simmons requested that Monica L. Petersen distribute the evaluation form to the Board members for their input.

SUMMARY OF CURRENT EVENTS No items were discussed at this time. IDENTIFICATION OF FUTURE MEETING AGENDA ITEMS

Executive Director Performance Evaluation, as noted above. Gary L. Freed asked if the Board could receive an update next Board meeting on the HB 2613 – Arizona Department of Administration Non-Health Regulatory Board Licensing Study response. Monica L. Petersen stated that she would provide the draft response to Board members via email, so that they may individually provide feedback to her.

ADJOURNMENT A motion was made by Gary L. Freed, seconded by Douglas N. Kimball and passed unanimously to adjourn the meeting at 12:17 p.m.

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