Everything you wanted to know about CPA SEA & State CPAabout CPA-SEA & State CPA

Societies But were afraid to ask

Tom Hood CPA CITP - PresidentTom Hood, CPA.CITP - PresidentBetsy Adrian – President-elect

CPA – SEACPA State Executives Association

CPA-SEA is the network

CPACPA--SEASEACPACPA SEASEA Our PurposeOur Purpose

“to assist our members to achieve“to assist our members to achieve to assist our members to achieve to assist our members to achieve operational excellence in the operational excellence in the management of their organizations management of their organizations and provide a forum for networking and provide a forum for networking p gp g& communication to enable & communication to enable members to choose informed members to choose informed courses of action on professional courses of action on professional issues facing CPAs”issues facing CPAs”

Our Values:Our Values: LeadershipLeadership IntegrityIntegrity CollaborationCollaboration ExplorationExploration

CPACPA--SEA LeadershipSEA LeadershipCPACPA SEA LeadershipSEA Leadership

Tom Hood Tom Hood -- MDMD Betsy Adrian Betsy Adrian -- MNMN

Erin Hardwick Erin Hardwick -- SCSC Dennis Tomorsky Dennis Tomorsky -- WIWIyy

Kathy Anderson Kathy Anderson -- FLFL Rich JonesRich Jones WAWA

Loretta Doon Loretta Doon -- CACA Deb RileyDeb Riley -- VTVT Rich Jones Rich Jones -- WAWA

Laura Coome Laura Coome -- SDSD Deb Riley Deb Riley -- VTVT Ralph Thomas Ralph Thomas -- NJNJ

CPA- SEA 2007-2008

COLLABORATIONMEETINGS

COMUNICATION RELATIONSHIPS

CPA/SEA ASSISTS ITS MEMBERS TO ACHIEVE EXCELLENCE IN THE

MANAGEMENT OF THEIR ORGANIZATIONS AND PROVIDES A

FORUM FOR NETWORKING AND COMMUNICATION TO ENABLE MEMBERS

TO CHOOSE INFORMED COURSES OFBOARD CULTURE

5 SEA L d hi D

TO CHOOSE INFORMED COURSES OF ACTION ON PROFESSIONAL ISSUES

AFFECTING CPAs

BOARDACTION

CULTURE

6. AICPA Relations

2. Strategic relationships3. Mobility – Leg/Reg Advocacy

4. Peer Review5. SEA Leadership Dev.

B O L D S T E P S

g p1. Emerging Issues

5

CORE VALUES

COLLABORATIONINTEGRITY

EXPLORATIONLEADERSHIP

Mega-trends1 R l ti &

Economic Meltdown

1. Regulations & Standards

2. Globalization– More Government– Less Leverage

2. Globalization3. Workforce4. Technology

/Credit Crunch

What the world would miss if weWhat the world would miss if we were gone?

We keep the CPA Profession p ith the• We keep the CPA Profession up with the rapidly changing environment

• We are bridge builders taking care of• We are bridge builders – taking care of the CPA Profession’s infrastructure

• We are the leadership development• We are the leadership development pipeline for the CPA Profession

• We protect the CPA reputation & imageWe protect the CPA reputation & image• We are the connectors of the Profession

– connecting to key resourcesconnecting to key resources

Keeping up with the CPA Profession

the basic physical and organizational structures needed for the operation of a

i t t isociety or enterprise

State CPA Societies built and maintain the critical infrastructure for the CPA profession – the laws & regulations which grant the rightsthe CPA profession – the laws & regulations which grant the rights

to practice Certified Public Accountancy

CPA-SEA supports that through our network of State CPA society executives and the AICPA and our critical relationships

Meet Bill… Managing PartnerMeet Bill… Managing Partner• Bill’s firm files tax returns in 9 states + Maryland• Last year he would have• Last year he would have required additional state licenses in all states (except OH, VA, MO, WI) • He would have had to register all of his tax CPAs and staff as a tax advisor (est$250 apiece)$250 apiece)• He would have to report to two state boards with different CPE requirements

H ld h h d tWhat would this cost you? • He would have had to charge & collect sales taxes on his accounting & tax services

What would this cost you?

services

CPA Mobility Legislative Activity 2009

WA

MTVT

ME

ORID

MT ND

SDWY

MN

WI

MINY

ME

NH

MA

RICT

CA

NVUT

COKS

NE IA

MO

IL IN

KY VAWV

OHPA

RINJ

DE

MD

CT

DC

AZ

NMOK AR

MS AL GA

TNSC

NCDC

AK

HI

TX LA

FL

GU

PR

V

Legislation Introduced - 8Mobility Enacted Only for OtherMobility States -2 (GA PA)

AICPA March 2009

Mobility Enacted - 37

2009 -2010 Anticipated LegislativeActivity

V

No Formal Activity

What is under the CPA Profession?

Federal Laws & Regulations – SEC, DOL, Treasury, GAO, PCAOB

CPA Profession Standards – AICPA & FASB GASB FASAB IASB IFAC& FASB, GASB, FASAB, IASB, IFAC

State CPA Statutes

police power of the states to protect their citizens vs commerce clause

Another View

SEC S IASB

Public Company Private Company Int’l Company

Financial SECFASB

FASB IASBIFRS

FinancialReporting

PCAOB AICPAASB

IAASBAttest PerformanceStandards

AICPA AICPA IFACCode of Conduct

PEEC PEECIFAC

CPAState Oversight & Enforcement of CPA License

CPALicensure

Peer Review Your firm licensePeer Review - Your firm license depends on it

US Treasury

MD ComptrollerMD Comptroller

MD Comptroller

CAQCAQ

Courtesy of the Maryland Association of CPAs – 2008 edition Drawing by Carol Kirwan, CPA

The Obama CabinetThe year of the REGULATORThe year of the REGULATOR

Timothy Geithner,Secretary of the

Treasury

Mary Schapiro,SEC Chief

Paul Volcker,Chair, Economic Recovery

Advisory Boardy y

Gar GenslerGary Gensler,Chair, Commodity Futures

Trading Commission

Ben Bernanke,Chair, Federal Reserve Board

Sheila Bair,Chair, FDIC

First PCAOB now FAOB?First PCAOB now FAOB?

New 5 member oversight board d b C M h 6thproposed by Congress – March 6th,

2009

Leadership Pipeline

Ernie Almonte – AICPA Chair came from Rhode Island as pastErnie Almonte AICPA Chair came from Rhode Island as past president – most AICPA Chairs, Board members, and Council members had their start in State CPA Societies

Pipeline - Good Newsp20% avg increase in

Graduates & enrollments!

Increases in CPA pipeline involved a multi-year collaboration on student recruitment between State CPA Societies & AICPA

Promoting the CPA Career –Maryland example

Tomorrows New/Young Tomorrows CPA.org

gProfessionals

NetworkMACPA

Most state societies have similar programs to onboard students into the Profession

Four Generations in the WorkplaceFour Generations in the WorkplaceIssue: Generational Differences

• Matures – 1909-45• Boomers – 1946-64• Gen X – 1965-80• Millennials - 1981 +

up (Y2K, Netgen, Echo-boom, Gen Y)Y)

Which one are you?Which one are you?

Biggest Issue Facing NYPNsBiggest Issue Facing NYPNs• Bridging the Gap between college & real world• Under Developed Skill Sets• Under-Developed Skill Sets

– Leadership & Communication– Time Management & OrganizationTime Management & Organization– Analytical Skills– Technical Skills

• Work-Life Balance• Limited Networking Opportunities• Intimidation• CPA Exam

Lack of a Voice in Profession• Lack of a Voice in Profession

What you can do to promote the a you ca do o p o o e eCPA?

• Understand the “new” CPA Exam• Encourage MACPA candidate

b himembership• Use CPA Exam tracking tool to track

employees progressemployees progress• Support the swearing-in ceremony

C t / i f fi / lt• Create / reinforce firm/company culture that celebrates CPAs

Meet the New Young ProfessionalsRemember when you were ‘made’ to be aRemember when you were made’ to be a member of your State Society & AICPA?

According to the William E. Smith study of Association value: Benefits to the professionals and their employers include higher morale, increased employer loyalty, networking, professional development, leadershipnetworking, professional development, leadership experience, professional community and big-picture thinking.

Protecting the CPA Image & g gReputation• Remember Enron & WorldCom?

Public Relations and Image protection are both a major focus and great example of State CPA Societies and the AICPAState CPA Societies and the AICPA working together for the benefit of the entire CPA Professionentire CPA Profession

Perceptions of CPAs Largely Perceptions of CPAs Largely Consistent Across All AudiencesConsistent Across All AudiencesConsistent Across All AudiencesConsistent Across All Audiences

BDMs Large Biz BDMs Sm-Med Biz Investors CPAs YPs

1 Has integrity Competent Competent Has integrity Competent

Rank

2 Competent Has integrity Has integrity Competent Has integrity

3Able to synthesize

information from multiple sources

Objective Objective ObjectiveAble to synthesize

information from multiple sources

4 ObjectiveAble to synthesize

information from multiple sources

Able to synthesize information from multiple

sources

Able to synthesize information from multiple

sourcesAble to see the big picture

5 Focused on client needs Focused on client needs Focused on client needs Focused on client needs Objective

6 Able to identify potential problems before they happen

Able to identify potential problems before they happen

Able to identify potential problems before they happen Able to see the big picture Focused on client needs

7 Technologically adept Technologically adept Technologically adept Demonstrates leadership Able to identify potential problems before they happen

8 Communicates effectively Able to see the big picture Able to see the big picture Able to identify potential problems before they happen Demonstrates leadershipproblems before they happen

9 Able to see the big picture Communicates effectively Communicates effectively Technologically adept Technologically adept

10 Demonstrates leadership Demonstrates leadership Creative and innovative Communicates effectively Communicates effectively

11 Creative and innovative Creative and innovative Demonstrates leadership Creative and innovative Creative and innovative

Image is better than pre-Enron highs

Financial Literacy

www.feedthepig.orgwww.360financialliteracy.org

C t t RConnectors to Resources

Seven Keys to Success in CPA Firm Management

1. Leadership 2 Technology2. Technology 3. Learning Organization 4 M k ti d4. Marketing and Business Development

A G Pl W k5. A Great Place to Work 6. Client Service and Satisfaction 7. Strategy Execution

Firm Opportunities in these turbulent times

• Talent acquisition• Succession planning• Succession planning• Strengthen value-added relationship with

clients (cash flow financing & costclients (cash flow, financing & cost control)

• International / XBRLInternational / XBRL• Governance• Young Professionals – reverse mentoringYoung Professionals reverse mentoring

Competencies NeededAnother example of the power of the AICPA & State CPA Societies working together the CPA Vision identified theseSocieties working together – the CPA Vision identified these critical competencies for 2011 – years before Deloitte

• Change M t

• Communication & L d hiManagement

• Strategic Ability• Critical Thinking

Leadership• Strategic & Critical

Thinking• Critical Thinking• Business

Perspective

Thinking• Focus on the Customer,

Client, and Market

• Organizational AgilityD li ith

• Interpretation of Converging Information

• Technologically adept• Dealing with Ambiguity

• Technologically adept

CriticalTurningTurning

Point

Courtesy of the Business Learning Institute © 2000

Connect – Protect - Achieve!“Association membersAssociation members

earn, on average, $10,000 more per year than non-

members”And

“are 19% more likely to say they are “very-

satisfied” with their jobssatisfied with their jobs than non-members”

Where the Winners Meet Study by the William E. Smith Institute for

Association Research

Tom Hood, CPA.CITPCEO

Maryland Association of CPAs

Betsy AdrianPresident

Minnesota Society of CPAsMaryland Association of CPAsBusiness Learning Institute

(443) 632-2301E-mail tom@macpa.org

Minnesota Society of CPAs

(952) 831-2707E-mail badrian@mncpa.org