The Maryland Association of CPAs briefed managing partners on legislative updates, key trends affecting CPA firms, and advocacy efforts for 2011-2012. Key topics included the importance of maintaining high professional standards, recent legislative successes, and emerging trends outlined in the CPA Horizons 2025 project. The agenda also emphasized the need for member support in various initiatives and the focus on addressing challenges such as an aging workforce and global competition.

1. Maryland
Association
of
CPAs
Managing
Partner
Briefing
May,
23,
2012
Welcome
–
Allen
DeLeon
–
Chairman
of
the
Board
Tom
Hood,
CPA.CITP
-­‐
CEO
/
Executive
Director
Outcomes:
• Update
on
important
legislative
/
regulatory
changes
that
affect
CPA
firms
• Development
of
priorities
from
managing
partners
• How
you
can
help
us
continue
our
success
• Share
the
latest
in
trends
facing
CPA
firms
(CPA
Horizons
2025)
Today’s
Agenda
• Setting
context
–
background
on
legislative
/
regulatory
environment
(infrastructure)
• Update
on
past
and
present
advocacy
efforts
and
results
• What’s
next
–
our
2011
-­‐
2012
Legislative
Agenda
• How
you
can
help
us
make
a
major
difference
• Trends
facing
CPA
firms
the
latest
from
AICPA/PCPS
&
CPA
Horizons
2025
Projec
Setting
Context
&
Update
on
Past
&
Present
Advocacy
Efforts
&
Results
The
Five
C’s
Change
Complexity
Compliance
Convergence
Competition

2. Maryland
Association
of
CPAs
Managing
Partner
Briefing
May,
23,
2012
The
CPA
Profession
continues
to
be
in
a
rapid
state
of
change
Infrastructure
–
the
pipes
under
your
firm’s
practice
1. Professional
Standards
2. Federal
Legislation
&
Regulation
3. State
Legislation
&
Regulation
4. State
Board
of
Accountancy
–
Legislation,
Regulation,
Examination,
Licensing,
Enforcement
Infrastructure
-­‐
Update
1. Professional
Standards
–
decision
expected
5-­‐24-­‐12
Private
Company
Financial
Standards
–
MACPA
Task
Force
whitepaper
FASB-­‐IASB
Convergence
becomes
Condorsement
2. Federal
Legislation
&
Regulation
Successes
Sarbanes-­‐Oxley
Act
of
2002
Dodd-­‐Frank
–
Consumer
Financial
Protection
Act
of
2010
a) Prevented
Congress
takeover
of
FASB
b) Exempted
CPAs
from
registration
as
Financial
Planners
c) Prevented
Specter
Aiding
&
Abetting
amendment
FTC
“red
flags”
–
exempted
CPA
firms
Healthcare
&
1099’s
–
instrumental
in
repeal
Tax
Strategy
Patents
(stopped
enforcement
–
e.g.
Roth
IRA
Conversion)
IRS
Notices
up
700%
DATA
Act
of
2011
(Digital
Accountability
&
Transparency
Act
&
XBRL)
Workforce
Mobility
(passed
House)

3. Maryland
Association
of
CPAs
Managing
Partner
Briefing
May,
23,
2012
3.
MACPA’s
State
Legislative
Agenda
–
a) 2011
5
for
5
+
2
3!
i) Passed
State
Board
120/150
CPA
Exam
legislation
–
effective
10/01/11
ii) Passed
“Safe
Harbor”
legislation
for
Compilations
(Reviews
restricted
to
CPAs)
iii) Stopped
Debt
Counselor
registration
($250
per
CPA)
iv) Stopped
sales
Tax
on
Accounting
&
Tax
services
v) Stopped
efforts
to
liberalize
tort
laws
(lawsuit
abuse)
vi) Plus
Two
Three!
(1) Opposed
combined
reporting
due
to
complexity
&
time
to
implement
(2) Opposed
Cemetery
Bill
to
stop
requirement
for
audited
financials
(3) Obtained
Attorney
General
Opinion
allowing
use
of
Social
Security
#’s
for
Maryland
Tax
Preparation
(Clarification
of
Maryland
SS
Privacy
Act)
b) 2012
4
for
4
i) Stopped
Sales
Tax
on
Services
ii) Stopped
e-­‐filing
tax
in
Governor’s
BRFA
Bill
iii) Stopped
Combined
Reporting
iv) Passed
e-­‐filing
of
credits
4.
State
Board
of
Accountancy
–
Legislation,
Regulation,
Examination,
Licensing,
Enforcement
• CPA
Exam
applicants
at
record
levels
–
long
delays
90
–
120
days
• Mobility
legislation
–
Maryland
license
accepted
in
48
states
(NY
just
signed
into
law
&
DC
in
for
Mayor
signature)
• CPE
Regulations
o Revised
in
2009
under
leadership
of
Terry
Hancock
o CPE
enforcement
–
biggest
issue
is
four
(4)
hour
ethics
requirement
• Peer
Review
oversight
committee

4. Maryland
Association
of
CPAs
Managing
Partner
Briefing
May,
23,
2012
• Appointments
to
Board
oRay
Speciale
–
Educator
member
of
Board
(left
MACPA
Board)
oLiz
Gantnier
–
Stegman
(PCAOB
&
AICPA
Instructor)
oTim
Murphy
–
Southern
Maryland
oMac
Claxton
–
PG
County
(MACPA/MSA
member)
oLosing
Terry
Hancock
–
(Clifton
Gunderson)
State
Board
Chairman
oArt
Flach
(Grant
Thornton)
is
our
next
selection
for
2013
What’s
next
–
our
2012
-­‐
2013
Legislative
Agenda
• Lots
of
tax
legislation
• Election
year
(Governor
&
major
part
of
188
legislators)
• Expected
$1.1
billion
state
deficit
• Changes
in
DLLR
and
State
Board
of
Accountancy
appointments
How
you
can
help
us
make
a
major
difference
1. Support
of
membership
–
100%
membership
initiative
2. Support
of
Swearing-­‐in
Ceremony
(prior
&
future)
–
Fall,
2012
3. Support
of
CPA
Day
in
Annapolis
–
January
16th,
2013
4. Support
of
PAC
(contributions
allowed
up
to
$4,000
per
firm
The
“new”
math
Additional
Economic
Impact
on
Firms
Sales
tax
on
services
Federal
CFPA
registration
$
250
Partner
Revenue
$1,000,000
MD
Tax
Preparation
100
X
6%
$60,000
per
partner
MD
Debt
Counseling
150
$6,000
per
employee
Mobility
(2
States)
500
Liability
(Tort
reform)
Total
Savings
per
CPA
/
year
$1,000
Increase
in
professional
liability
insurance
Increase
in
lawsuits,
claims
&
settlements
What
do
you
think
about
our
results?
Our
priorities?

5. Maryland
Association
of
CPAs
Managing
Partner
Briefing
May,
23,
2012
Share
the
latest
in
trends
facing
CPA
firms
Top
trends
to
watch
and
the
time
to
address
is
now
(CPA
Horizons
2025)
1. Aging
population,
loss
of
wisdom,
knowledge
transfer
2. Global
rules
&
standards
–IFRS
–
complexity
3. Information
overload,
complexity
(Need
for
critical
thinking
&
filter)
4. Information
Security,
Privacy
&
Data
Protection
5. Global
Competition,
Rise
of
the
Rest
6. Work-­‐Life
Balance
7. Diversity
–
Cultural
Fusion
–
Beiging
of
America
8. Changing
Communication
(decline
of
face-­‐to-­‐face)
9. Increased
Globalization
10. US
Deficit
11. Education
AICPA
/
PCPS
Top
trends
for
firms
>
21
1. Partner
Accountability
/
Firm
Unity
2. Bringing
in
New
Clients
3. Retention
of
Existing
Clients
4. Fee
Pressure
/
Pricing
of
Services
5. Succession
Planning
Resources
for
Major
Firms:
CPA
Horizons
2025
–
future
research
and
trend
analysis
http://www.aicpa.org/research/cpahorizons2025/pages/cpahorizons2025.aspx
MACPA’s
Business
Learning
Institute:
Conduct
a
future
firm
to
align
and
inspire
your
partners
and
create
firm
unity
http://www.bizlearning.net/live/i2afutureforums
Strategic
Planning
http://www.bizlearning.net/live/i2astrategicplanning
Customized
Learning
aligned
with
your
firm
strategy,
Comprehensive
Insurance
(Liability
&
Health),
curriculum
development
with
our
in-­‐house
nationally
recognized
customized
learning
consultants
–
Contact
Pam
Devine
p
443-­‐632-­‐2321
e
pam@macpa.org
or