1. example, we provide this
service for users of the
Forest Products
Accounting (FPA) system.
It’s an annual fee in
addition to the cost of the
software license. It also
includes backup support,
updates, and system
maintenance from our
partner Automated
Accounting Systems.
Unlike Time and
Materials, it’s based on a
flat, annual fee, and
entitles users of FPA
unlimited access to help
desk and remote support,
as well as updates to FPA
and resolution of any
system issues that may
arise.
I’m in favor of this type of
IT software service
(Continued on page 2)
IT (information technology)
service model… sounds kind
of geeky.
You’re right, of course. IT
Service is the short geek
speak answer when you ask
yourself, “How will I take
care of and have proper
support for my computers,
software, networking,
printers, mobile devices and
the people using them?”
To understand IT Service,
you have to understand the
three common service
models IT companies
employ to provide IT Service.
They are: Time and
Materials, Specialized
Software Support, and
Managed IT Services.
At Hemard & Company, we
offer all three, but clearly
concentrate on Specialized
Software Support and
Managed IT Services. We’re
moving away from the old
Time and Materials model.
I’ll explain why as we go
along in the discussion.
Time and Materials is pretty
self-explanatory. In the
computer consulting
business, it’s called “break-
fix.” In short, you pay an
hourly rate for a computer
consultant or technician to
“fix” your problem when
something “breaks.”
The IT service provider may be
hired to fix for a very short-term
project, like removing a virus.
On the other a hand, it may be a
large and complex project like a
computer network upgrade.
Sometimes larger companies
will hire break-fix services
because their current IT staff is
overloaded and only requires
help on occasion.
There is one major problem with
Time and Materials. The more
problems you have, the more we
have to charge to fix them.
There is no incentive for us to
spend time and money being
proactive (although we often do)
to prevent problems because
we can only engage with you
after something has broken.
Specialized Software Support is
support for a particular software
system in the form of a help
desk or remote support. For
Hemard & Company
December 2015—January 2016
Client Connection
Inside this issue:
Which IT Service Model...? 1
News and Commentary 1
Skinny 2
Washington?… Really? 2
Cybercrime in Perspective 3
Thoughts For The New Year 6
Books I’ve Read Recently 6
From the desk of Victor E Hemard Jr, President
News And Commentary:
Obamacare Penalizes
Employers Who Try To
Help Employees
“Small Businesses Threatened with
$36,500 IRS Fines For Helping
Employees with Health Costs.”
-Grace-Marie Turner, Forbes
Magazine, June 30, 2015
This penalty, effective July 1, 2015,
is extracted from employers who
help their employees with the costs
of their health insurance plan or by
reimbursing employees for health
care costs.
“The penalty applies whether the
reimbursement is considered a
before-tax or after-tax contribution.
It’s the biggest penalty no one is
talking about,” said Kevin Kuhlman,
policy director for the National
Association of Independent
Business (NAIB).
This penalty is enough to destroy
most small businesses. In other
words, the IRS is punishing
(Continued on page 4)
Merry Christmas, Girls! (See Pages 3 and 5)

2. “Man, why are you so skinny?”
-Mike Blapert, classmate from 7th grade
as we were waiting in line for the diving
board at SPLASH pool, Chalmette,
Louisiana, June 1965
Well, I didn’t really have an answer for that
one. I was always a skinny kid. All I could
do was shrug my shoulders. I ate plenty…
but to no avail. Even a steady diet of milk
shakes couldn’t get me bulked up.
My friend Charlie Lyons who lived a block
away tried doing three milk shakes a day
to gain weight. He was like me. He burned
it all off. After his experience, I gave up on
the milk shake diet, too.
If you were a skinny kid growing up, you
probably took a little ribbing from friends
and older kids in the neighborhood. Even
in the 60s, it was politically incorrect to
call someone fat, but you could rag on a
skinny person all day. I learned to live with
it.
If you’re a skinny kid out there, let this
story be a source of comfort and
encouragement. It gets better.
I remember a turning point when I was
eight or nine years old. There was a girl I
knew as a kid named Sidney Ann Frantz.
She was from New Orleans and was very
street smart. She was pretty, too. Even an
eight year-old knows a pretty girl when he
sees one. She was my age but way more
mature.
She visited our neighbors on occasion and
would give me a hard time about being
skinny. Well, one time she had a friend
with her and she wanted to impress her so
she said, “Watch, I’ll bet you I can make
this skinny kid cry!”
She reached back and sucker punched
me right in the stomach. Even though I
lost my breath, I just stood there and
stared her in the eye. I didn’t say anything.
My expression said, “Is that all you got?” It
hurt like hell, but I decided to take a
stand. She just walked away… puzzled.
(Continued on page 4)
because it puts you, the
client, and us, the IT
service provider
(consultant) on the same
side of the issue. If you
are well trained in FPA
and the system is running
correctly, we don’t have to
spend time and money
out of the fixed annual fee
to correct problems and
answer support calls every
day.
You’re happy… and I’m
happy.
The only shortcoming of
Specialized Software
Support is it doesn’t cover
computer network
management or the
business continuity
system. What is the
proper way to address
those issues?
The answer, of course, is
the third service model,
Managed IT Services.
Managed IT Services
simply means the IT
consultant or services
company takes the role of
your “IT department.” We
install and support all the
devices and PCs
(Continued from page 1) connected to your server or
servers. As part of
Managed IT Services, we
also offer phone, remote
control, and on-site
support; antivirus; security;
business continuity; and a
host of other services.
These services monitor
and maintain the health,
speed, performance, and
security of your computer
network.
Managed IT Services are
typically based on a flat fee
per month. The monthly
fee depends on the
number and type of
devices you have on the
network. It’s a monthly
amount you can put in the
budget. If things run well
and you’re happy… I’m
happy.
In summary, we’re making
an effort to get away from
the old Time and Materials
model because, under that
model, we’re working
toward different goals. If
you have problems, we get
more work and charge
more.
On the other hand, if you
have a specialized
software application, such
as FPA, we’ll do our best to
train and inform you of
system changes. We’ll also
educate you when you call
in for support. That way, we
have fewer support calls in
the future and spend less
of your annual system
maintenance money
supporting you. We both
benefit.
If you don’t have your own
IT department or want to
augment your current staff,
Managed IT Services will
benefit you greatly. We
employ specialized tools to
monitor and maintain your
network. We even offer
business continuity
(backup and recovery)
services for a flat fee per
month.
Again, under Managed IT
Services, we both benefit.
We want your computer
network up and running
efficiently. We want your
network to be secure. We
want your network backed
up and ready to recover
quickly, regardless of the
magnitude of the disaster.
We want you to be
productive, secure, and
happy.
When you’re happy… I’m
happy.
Page 2
Client Connection
Skinny
Do You Want Washington to Work… Really?
“Thanks for making
government work.” -Obama
to House Speaker Paul
Ryan, December 17, 2015
Washington not working is
what the founding fathers
intended. They realized
central command and
control of the country
consumes power and
spends money quickly.
This is why there are three
branches of government. If
you remember from high
school Civics class, three
branches mean separation
of powers as well as
checks and balances.
It was designed to make
sure runaway government
spending wouldn’t happen.
Checks and balances are
supposed to cause
gridlock… a dirty word in
Washington.
There’s actually not enough
gridlock. Want proof? How
about a national debt of
$19 trillion.

3. Just in case you weren’t aware of it,
criminals, corporations, and organized
crime are all plotting against you… and they
are using technology and the Internet as
their tools.
The Internet is the modern-day equivalent
of the wild, wild west. It’s free, but freedom
always carries a price and a responsibility
to protect yourself. There is a dark side out
there. In this day and time, everyone is
connected in some way and everyone is
vulnerable.
Ignorance is no excuse when it comes to
cybersecurity. You have to take it upon
yourself to become an educated user of
technology. No antivirus program or firewall
can protect you completely. You have to be
aware of the danger and use good
judgment.
We hear of many high profile web sites
being hacked on a daily basis. Target,
Home Depot, and TJ Maxx are just some
examples. The problem is much larger than
that, however. Technology and the web are
expanding at a breakneck pace. It’s getting
more difficult to stay secure.
Software is running the world. The newest
technology depends completely on
software. A car used to be metal, plastic,
wires, and rubber. It’s all that and more
now. A car is 300 computer chips guided
by software. In 2016, we’re driving a Unix
(operating system) box down the highway.
An elevator is now a computer we ride in,
taking us up and down to selected floors
in the building. A jet airplane is a flying
computer with a variety of sophisticated
controllers to stay on the flight path and
land safely.
You see my point. Computers are running
practically everything.
With all this computerization, there is one
reality that is often overlooked. Simply
stated, if it’s computerized, it can be
hacked. There are no hack-proof
machines.
According to Marc Goodman, author of
the book, Future Crimes, we’ll be adding
as many as 200 billion of these hackable
devices out in the world by the year 2020.
Goodman says the Internet will grow in
size from what is now a golf ball to the
size of the Sun.
We’re actually still in the early stages of
the Internet, relative to where we’ll be in a
few years. We really can’t imagine the
tidal wave of technology coming our way.
For the most part, it’s all good and for
the advancement of mankind. There’s a
dark side to this technology wave that
must be dealt with, however.
People often leave it up to the police or
the government to protect them against
threats. This is wrong minded. You have
a responsibility to yourself, your
business, and your family to stay
informed and protected. This is more
important than ever in cyberspace.
We may live in a safe part of town with
low crime. When it comes to the
Internet, however, it’s every man for
himself. We shouldn’t confuse our
relative physical safety at work and at
home with all the crime facing us on our
computer monitors.
Criminals are out there waiting for you to
slip up. Firewalls, anti-virus, and anti-
malware will help you stay protected.
Most importantly, however, knowledge
of current threats and awareness when
using e-mail and the Internet will go a
long way to keeping the bad guys in their
place.
Page 3
Cybercrime In Perspective
Time Well Wasted: Christmas
How was your Christmas?
We had a blessed Christmas with
family in from all over the country.
In this photo, left to right, there is
Nancy and me; then, my daughter
Laura and husband Greg from
Charleston.
Next, my daughter Kristin,
husband Drew, and grand-
daughter Juliet from Cleveland;
followed by my son Brandon, wife
Stephanie, and granddaughter
Clara from Dallas.
Finally, my sister Sandra and
cousin Ricky from Slidell and my
mother-in-law Dess and brother-in
-law John from Shreveport. Christmas At Our Home In Texarkana

4. Sydney Ann was not a bad
person. I think she felt
badly about it and even
worse when I didn’t tell
anyone else about it (until
now). We became friends
the next time she visited
our neighbors. I guess I
earned her respect the
hard way.
It was at that point I
decided to stop being a
victim of my skinniness.
The next fall I started
playing sports. All of a
sudden, it was an
advantage to be fast and
agile, whether it was on
the football field,
basketball court, baseball
diamond, or the track.
I learned to embrace my
skinniness. In high school,
I was too light for football,
but I ran track. I played in
the band. I was an avid
hunter and fisherman. I
learned to be thankful for
the gifts I had and not
dwell on the negativity
that occasionally
(Continued from page 2) surrounded my skinniness.
I could walk in the woods
and marshes or paddle a
pirogue all day. Sometimes
I had to drag the pirogue
behind me over the marsh.
No problem. I not only
stayed light, I got stronger.
I then studied the martial
arts starting at age 17 and
learned a lot about
quickness, strength, and
leverage. I put my
skinniness aside and
became confident.
My dad was skinny most of
his life, so he offered some
fatherly advice. He always
said, “Eat to live, don’t live
to eat.” He also said, “One
day you’ll be glad you’re not
too big.”
He was right, of course.
When I entered college at
LSU, I was just a skinny kid
from Chalmette. After I
graduated, I moved to
Texas, had a good job, and
had a little money in the
bank. All of a sudden I was
thin. Imagine that.
Funny how something that
was once a liability became
an asset, even though I
hadn’t gained or lost a
single pound over those
several years. How you look
at yourself has an effect on
how other people look at
you.
I really don’t mind being
called skinny now. I
encourage and embrace it.
Go for it.
Just recently, at the
Louisiana Forestry
Association meeting this
year, a classmate of mine
from LSU commented on
my skinniness and asked
me if I had been sick. I said,
“No, I’m doing great. I’ve
always been thin.”
I was as truthful as I could
be. To clarify further,
though, I’ve always been
thin, but for a few years, I
thought I was just skinny…
until I got a little tough love
from Sydney Ann.
Page 4
Client Connection
Skinny (continued)
News and Commentary: Obamacare
Penalized Employers (cont.)
businesses for helping their employees
buy insurance.
Kulman of NAIB further explains,
“Reimbursing employees for the cost of
insurance or medical services is a way
for small businesses to help their
workers without the administrative
headaches of setting up a costly group
plan.”
So much for driving down the costs of
healthcare.
This IRS penalty is 18 times greater than
the $2,000 employer-mandate penalty
under Obamacare if you, as an
employer, fail to provide qualifying
health insurance for your employees. To
restate this, the penalty of $36,500 per
year per employee for helping an
employee with his insurance is much
harsher than the $2,000 you have to
pay if you don’t try to insure them at all.
If you have less than 50 employees, you
don’t have to insure them or pay the
$2,000 fine. The new penalty of
$36,500 for helping your employees,
however, has no minimum for the
number of employees. Huh?
Makes perfect sense, right?
Wrong.
I thought the goal of Obamacare was to
make sure everyone was insured. How’s
that working out?
What happened to, “If you like your plan
you can keep your plan.” That was a flat
out lie.
The penalty of $100 per day per
employee by the IRS was never part of
Obamacare when it was signed into law.
The IRS just created the penalty. That’s
another problem with Obamacare… it’s
open ended.
The Secretary of Health and Human
Services can invent regulations. The IRS
can invent new tax penalties. This is just
(Continued from page 1)
(Continued on page 6)
If you’ve been following my
daughter Kristin’s path
over the last few years,
you know its been a long
road to reach the highest
level of medical
professional standing. This
is, of course, board
certification in her
specialty, pediatrics.
She recently sat for her
board exams in October
and was notified of her
success in November.
Her journey is well
documented in the June
2012 issue of Client
Connection
(www.hemard.com/
CC2012-06).
In short, her path was not
the easiest. She always
had an interest in being a
doctor. As we all know,
however, wishing and
talking about being a
doctor is not the same as
getting there.
We’re very proud of Kristin
and it has been a special
journey for us as a family.
From her undergraduate
years at Vanderbilt, to
Boston, to Syracuse
University in Florence, to
medical school at UT Health
Science Center in
San Antonio, to Baylor’s
Texas Children’s Hospital in
Houston for her residency,
to Cleveland, Ohio, where
she is practicing medicine.
Her education started after
she graduated from high
school in 1999. It’s 2016
now, so that’s almost half
her life preparing to be a
board certified pediatrician.
Wow.
Way to go, Kristin!

5. More Time Well Wasted: Christmas Memories
In October, my granddaughter Clara had her first birthday party in Dallas. Our son Brandon and wife Stephanie had a good family
gathering to celebrate. The theme was “Clara’s County Fair.” There was a special One Year cake for Clara and plenty of fair food for
the guests, including bar-b-que, corn dogs, candy apples, strawberry and rhubarb pie… you name it. There were also many games to
play: ring toss, swing, a photo booth, a hay ride, and the (rocker) pony ride.
Clara’s cousin Juliet, now 16 months, came in from Cleveland and the Hemard, Bernhard, and Horansky families were there to
Page 5
December 2015—January 2016

6. beef at the White House?”
Life is good in Washington, D.C.
Meanwhile, Obamacare sucks for
everyone else.
The government created
mandates requiring us to buy
certain types of health insurance
policies. The cost keeps going up
but we have to buy anyway.
Then, a good employer steps in
to help its employees cover some
of the costs of insurance. You
know, it used to be a good
thing... the right thing to do. Now
it’s a crime.
Obamacare doesn’t let you keep
one of many changes they’ve
made on the fly. With a weak
Republican-controlled House
and Senate, these rules and
regulations go unchallenged.
This particular provision was
never voted on by anyone in
Congress.
I can just hear my
representative, “Oh, it’s just
small business, not a lot of big
donors there. What’s next on
the social calendar? Nancy
Pelosi’s having a cocktail party
for Speaker Paul Ryan? Kobe
(Continued from page 4)
Page 6
December 2015—January 2016
your plan. It doesn’t reduce the
costs of healthcare or health
insurance. It certainly doesn’t
“fix” what used to be the best
healthcare system in the world.
The Affordable Care Act (ACA),
Obamacare, doesn’t live up to its
lies and empty promises. It is
going broke. Its numbers do not
add up.
Obamacare is a mean and
destructive law that has to go.
It’s not just unpopular, it is, in a
word, unaffordable.
4601 Woodstock Ln
Texarkana, TX 75503
Phone: 903-832-5819
Fax: 903-831-5730
E-mail: ask@hemard.com
Web: www.hemard.com
Mission and Purpose
To provide systems for
effective management of
natural resource
companies. This is done
with a complete system of
implementation,
management, and security
of these systems.
Excellence is accomplished
by using the best of breed
technology, hands-on
training, and user-friendly
support.
Who We Serve
Our clients include wood
dealerships, consulting
forestry firms, chip mills,
sawmills, timber investment
management organizations,
and oil field service
companies.
Primary Offerings
Forest Products Accounting
FPA Oilfield Accounting
Network Protection and
Management
Backup and Business
Continuity
FPA Supplemental Training
FPA Failover Service
Social Media
Look for us on Facebook,
Twitter, and Linked-In for
News and Updates
News And Commentary: Obamacare Penalizes Employers (continued)
Ashley Bell by Dean Koontz
After reading Dean Koontz’s
The City, I was ready to start
his latest novel released on
December 8. You won’t want
to put this one down, either.
I love strong women. Bibi
Blair, the main character of
the story, fits the bill perfectly.
She is, by any definition, a
heroine.
Ashley Bell has many twists
and surprises but is easy to read.
In the beginning, a doctor tells
Bibi she has one year to live. She
replies, “We’ll see.” You’ve got to
love that.
She later has a sudden recovery,
baffling today’s medical science.
A mysterious woman then
convinces Bibi she escaped death
so she could save someone else.
That person is Ashley Bell.
The big unanswered questions for
Bibi are: Who is Ashley Bell?
Save her from what? Or Whom?
Her ambition to find and save
Ashley Bell apparently stirs up a
hornet’s nest of trouble. She is
on the run from things mystical
and of this world, including a cult
leader who has vile ambitions.
Courage and honor play a huge
role in Bibi Blair’s attempt to
save Ashley Bell. This is another
outstanding novel from the pen
of Dean Koontz.
If we didn’t have a chance to
talk during Christmas week this
year, I hope you had a Merry
Christmas and a Happy New
Year.
I was planning to get an issue
of Client Connection out before
Christmas, but with all the on
site work we wanted to
accomplish before Christmas
week, it wasn’t going to
happen.
I believe this December-January
issue is better, particularly if
you like the Time Well Wasted
articles. It’s hard to publish
Christmas photos before
Christmas. Not everyone in the
family had a Christmas photo to
submit.
I often feel like George Bailey
from the movie “It’s A Wonderful
Life” during the holidays. Then,
just like George, I have to stop
and realize all I have to be
thankful for.
I owe a debt of gratitude to my
God, my parents, my wife, my
children, my grandchildren, and
my family. I’m also thankful for
you, my valued clients,
particularly those of you who
have trusted my advice for many
years and have implemented
solutions to make your offices
operate safer and more
efficiently.
I wish you all the very best for the
coming year in your faith, your
family, and your health.
And yes, George Bailey, just like
you, I’m the richest man in town.