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Launch - Alabama Society of CPAs

ALABAMA CPA MAGAZINE I APRIL 2012andLaunchBusiness andIndustry Issue


Should BIG CPAs be Involved in theAlabama Society?Gadsden member Gerald Pentecost answers a resounding “Yes!”For the past 4 years, I was the directorof finance for an Alabama internet serviceprovider. Prior to that, I had practicedas a public accountant for many yearsand was heavily involved in our professionalorganizations. I served as a chapterpresident for the ASCPAand also on the ASCPAboard of directors. Oddlyenough, I found thatthe cultural and professionalshifts associatedwith a move to a privateGerald Pentecostindustry job had a profoundeffect on my focusin giving back to my profession. There was astrong tendency to fade away from my professionaldesignations and involvement. Itis a very difficult thing to define but I foundmyself forgetting to pay dues, strugglingat the last minute to get CPE completed,missing ASCPA chapter meetings, and justgenerally not thinking about what my hardearnedprofessional designation meant tome. When my local chapter came to me lastyear and asked me to serve as the ASCPAboard of directors representative again, Iagreed. My professional credentials havealways been close to my heart. And I valueddeeply my association with the AICPAand ASCPA. It was a way that I could giveback to a profession that has been so goodto me. Within the first few board meetings,the subject of providing more support toCPAs serving in business, industry, and governmentwas brought up as an initiative. Ihad a very passionate reaction becauseI wanted other CPAs working in BIG tobecome reenergized and recommittedto the ASCPA, just as I had.We, as accountants, talk about numbersand we find quantitative explanationsfor everything we do. But let me speakfor just a minute about the psychologicalaspects of the culture shift I experienced.When you are a public accountant, thecentral core of your career is gaining recognitionin the public eye. You work veryhard to build up a professional reputationBUSINESS INDUSTRY GOVERNMENTso that you are well known for your commitmentto quality, integrity, and objectivity.Professional credentials give you thecredibility that you use as the foundationfor your practice. You want to keep clientscoming in the door. It’s just natural to focuson that. However, when you leavepublic accounting, your client changesand your focus changes. All of a sudden,you have a new client, your ONLYclient - the organization that you workfor. Do they value your CPA credentialsand professional involvement on the inside?There is no doubt that they do, althoughthe appreciation that they havefor it may not be as clear. CPAs workingwithin an organization are called upon todevelop their management skills, humanresource acumen, and knowledge of informationtechnology. Audits and taxes area thing of the past. Your “client” is wantingmuch more than just a good professionalreputation. They are looking for asolid team member that brings solutionsin a multitude of areas. And, if your bosshas expectations like mine did, he is lookingto cut back on the fees he pays [thecompany’s] CPA firm. So he is constantlyasking you what you can do in the way oftax planning and preparation, financial projections,and other traditional CPA firm services.It can be quite a challenge, in today’smarketplace, to serve as both a trustedtax and accounting advisor as well as ahuman resource expert, computer whiz,and effective manager. At the end of theday, this whirlwind of activities leaves youthinned out and feeling distanced from thevery profession that put you there. And, ifyou are the only CPA in your organization,you might feel isolated and separated fromyour professional colleagues and friends -an additional stress.This article is more than just a little storyabout a guy who went from public to privateaccounting. It is a call to action. I ask thatall CPAs in business, industry, and governmentrecommit yourselves to involvementin the ASCPA. The ASCPA needs us andour group is a sleeping giant. Just imaginehow much your input would be valuedas a contributor to the ASCPA’s initiativesto foster education of our students, to affectlegislation that concerns us, and to increasethe knowledge and value of the CPAbrand in Alabama. Not to mention the waythat you could help shape an organizationthat is committed to assisting our membersin the very multifaceted marketplace thatCPAs are thriving in. The Society leadershipis doing a great job and I believe theytruly want to hear what you have to say. Iwould even go a step further; the ASCPAwants to serve you and support you ingaining the same credibility that publicaccountants enjoy, as a leader in yourorganization and industry. The ASCPAwants to help you to define the role and thevalue of the CPA in business, industry, andgovernment and to help you get the toolsthat you need to be a shining success as afinancial professional. The Society wants togive you a way to interact with other CPAs,share ideas, and gain knowledge of the financialworld around you. It’s going to takeyour input, your involvement, and your supportto do it.Rememberwhat yourprofessionhas meantto you, getinvolved, andspeak up!The ALABAMA CPA MAGAZINE 3


TAX PAYer RIGhTSAlabama Taxpayers’ Bill of Rights II – Our Next Logical StepBy Thomas Zoebelein, CPAHouse Bill 105, the Alabama Taxpayers’Bill of Rights II (TBOR II), is expectedto come before the House for a vote inthe next two weeks. Afterwardst will go on tothe Senate. TBOR II is the next logical step insecuring taxpayers’ rights to fair administrationof the tax laws of Alabama. Under present law,taxpayers can take their disputed tax assessmentto either the Alabama Law Division (ALD)or Alabama circuit courts. The administrativelaw judge serving for the ALD is employed bythe Alabama Department of Revenue (ADOR),which creates at least a perception of the lackof independence from the ADOR. TBOR II,if passed, will separate the appeals functionfrom the umbrella of the ADOR and place iteither in a new stand-alone agency or underthe Office of the Attorney General. Alabamais now in the shrinking minority of states thatlacks an independent tax appeal tribunal.TBOR II establishes the Alabama Tax AppealsCommission (ATAC), which would havethe expanded authority to hear cases involvingself-administered local tax assessments, inaddition to the traditional assessment involvingthe ADOR. ATAC will also have the authority tosend certain cases to the ADOR’s TaxpayerAdvocate for resolution. There is a caveat thatallows local jurisdictions with self-administeredtaxes to opt out of the ATAC system once ayear, in which case the appeal would be heardby the local hearing or appeals officer.Chief ALJ Bill Thompson would serve asthe initial Chief Judge of ATAC. The next judgewould be appointed by the governor, with theadvice and consent of the Senate. The ap-pointee would be selected from a list of threecandidates recommended by the nominatingcommittee. The members of the nominatingcommittee could include appointees from theAlabama State Bar, ADOR Commissioner ofRevenue, the Alabama League of Municipalities,the Alabama Association of County Commissionsand the Alabama Circuit Judges Association.A candidate for an ATAC judgeshipmust be a member in good standing with theAlabama Bar, a US citizen, and a resident ofAlabama. Up to two additional judges couldbe appointed to ATAC to meet increased demandfrom local tax appeals. The term of eachATAC judgeship is eight years, and the termwill automatically renew unless a petition forrecall is filed by the governor, attorney generalor the Judicial Inquiry Commission.ATAC will have jurisdiction over most stateand local tax disputes. The statutory exceptionswill be property taxes, insurance taxesand any local taxes levied by self-administeredjurisdictions that have opted out of ATAC. Aself- administered local jurisdiction will be requiredto make an affirmative election to optout of ATAC.TBOR II also makes the following pro-taxpayerchanges to the existing procedures:• Extends the period a taxpayer can appealboth a preliminary and final assessment from30 days to 60 days.• Removes the $50 penalty for a late-filed individualreturn where no additional tax or refundwas due.• Conforms Alabama income tax provisionsto incorporate the expanded federal innocentspouse defenses for Alabama spouses.• Clarifies that taxpayers may enter into installmentagreements with both the ADOR and aself-administered jurisdiction.• Increases the period for requesting a refundof Alabama Income Tax withheld on W-2 incomewhere tax was shown to be over-paidby one year. Presently the taxpayer is limitedto two years from the original filing due date ofthe Alabama Income Tax Return; with the ad-Continued on page 164 The ALABAMA CPA MAGAZINE


DoING IT BeTTerThe 6 Biggest Trends in Sustainability ReportingBy Ann GoodmanAt the GreenBiz Forum in New York Cityin mid-January, Ernst & Young offereda preview of fall 2011 survey results ofsustainability programs and reporting trendsat leading companies in 24 sectors. Of themore than 270 respondents, 85 percent arebased in the U.S.The session, led by E&Y assurance andsustainability as well as climate change practiceexperts, highlighted six trends:1. A rise in sustainability reporting.2. An increase in the CFO's sustainability role.3. The emergence of employees as a key sustainabilitystakeholder force.4. Strong reporting on greenhouse gas emissionsand mounting reporting on water use– despite regulatory uncertainty.5. Growing concern about access to raw materials(including so-called conflict minerals)as a business supply chain issue.6. Special attention to outside rankings andratings on the part of corporate executive.What the Trends MeanFor those who follow business sustainability,what's striking about the survey results maybe less the trends identified than the reasonsfor them – and what they spell for companiesin the years ahead.Interviews after the session with ChristopherWalker, Americas Market Leader, andAdam Carrel, Senior Manager, both of E&Y'sClimate Change and Sustainability Servicesgroup, offered the following insights:1. More ReportingSustainability reporting is on the rise, with76 percent of survey respondents already issuingsuch reports, and 93 percent expectedto do so in the next five years.Yet, despite a welcome increase in reporting,the tools used to gather the informationare "suboptimal," with spreadsheets such asExcel widely used in the U.S. as the primarydata collection source, supplemented byemail and even telephone calls (which preventthird-party verification and/or assurance).That weakness among U.S.-based companiescontrasts with more mature reportingmarkets, such as Australia, where data collectionarchitecture is often more robust, largelybecause of regulations [already in place] orthose pending. Explains Walker: "In order toverify information, companies need to show areliable, accurate information trail."Another problem: Sustainability reporting,which aims to capture environmental and socialtrends, is intrinsically more qualitative thantraditional financial reporting, based on numbersand longstanding accounting rules.While some environmental information isrelatively easy to capture in numbers (for instance,amount of energy used, or relatedcalculations on GHG [greenhouse gas] emissions),social impact of company programsis harder to capture quantitatively. And, while"the school of social impact assessment hasadvanced, with a proliferation of benchmarksacross industries, it's not used as much," saysCarrel."There's no standout model for ethicalbehavior," he continues, so auditors and consumerswill likely have to "tolerate a higher levelof subjectivity," partly because sustainabilityis a broad and evolving field.2. Growing CFO InvolvementOne in six CFOs is now actively engagedin sustainability, with over half "somewhat" involved.The rise likely reflects "an increase in uptakeof sustainability data from capital markets,including major investors and banks,along with greater pressures from internal employees,"explains Carrel.However, while the CFO's role is growing,"it still isn't as aligned with sustainability as itshould be," says Walker. He notes that themajor focus is on efficiencies in areas like energycosts and savings, which are more easilyquantifiable. Still, he believes greater CFOalignment will come, as quantitative sustainabilitydata becomes more reliable.3. Employee as StakeholderAmong the most noteworthy trends is therise in employee engagement as a key reasonfor company sustainability reporting -- as wellas employee involvement in sustainability programs,and even initiation of such programs,including increasingly popular green teams.Indeed, the survey found employees wereranked as the second most important stakeholdergroup (after customers) for a company'ssustainability programs and reportingefforts. Shareholders trailed employees byseven percentage points and policy makersby nine percentage points. Use of social media-likecompany intranets makes employeeto-managementand employee-to-employeecommunication easier and can help build andsustain employee momentum in sustainabilityprograms.Particularly as younger generations enterthe workforce, employee pressure on companiesto show positive sustainability performancecan now start as early as the interviewstage. “And as younger employees advancein their careers and begin to set the businessagenda, they're likely to become an evenstronger sustainability force”, notes Carrel.4. GHG ReportingDespite regulatory uncertainty, threequartersof companies surveyed now reporton greenhouse gas (GHG) emissions, and 92percent are expected to do so in the next fiveyears. What's more, 62 percent of companiesnow report water use, an indication of growingawareness of changing weather patterns,droughts and pollution. The continuing interestin GHG reporting, even in the face of obstacles– including the global financial crisis; atbest mixed outcomes of international climatetalks; and lack of regulatory drivers in the U.S.– is at least partly due to new and more widelyaccepted "roadmaps for reporting via voluntaryinitiatives," like the Carbon DisclosureProject (CDP), says Walker, former U.S. headof The Climate Group and a lawyer by training.Plus, capturing data on emissions andwater is a relatively straightforward, quantitativeprocess.5. Risk of Strategic MaterialsOne newer concern to companies is thegrowing risk of using so-called strategic rawmaterials throughout the supply chain in themanufacture of key products. The most glaringissue recently has been the use of socalledconflict minerals (those often sourcedin conflict-prone parts of the world) in microprocessors.While such commodities are criticalfor devices, such as cell phones, that thedeveloped world considers essential, they arealso a potential social risk for companies thatsource them in sensitive geo-political places,says Carrel. Notably, in the past, such "invisibleingredients to business success haven'tbeen described in terms of balance sheetrisks," Walker adds.6. Ratings and RankingsFinally, the survey shows that rankingson sustainability lists and ratings in sustainabilityindices – particularly those of concernContinued on page 15The ALABAMA CPA MAGAZINE 5


MEMBERS IN MOTIONPromotions and New PositionsSmith, Dukes & Buckalew, LLP recentlyannounced the promotionsof Leah Ladner to manager,Laurie Lightcap to supervisor,and Ryan Zoghby to senior accountant.Ladner practices in thefirm’s audit division, and servesclients in a variety of industries,including manufacturing, localgovernments and governmentalagencies, non-profit organizationsand employee benefit plans. Leahreceived her bachelor’s degreefrom Louisiana State University.Lightcap and Zoghby practicein the firm’s tax departmentand provide tax consulting andcompliance services to individuals,partnerships, corporations, privatefoundations and other non-profitorganizations. Lightcap receivedher Bachelor’s degree from theUniversity of South Alabama.Zoghby received his Bachelor’sdegree and Master’s degree inTaxation from the University of Alabama.”Barfield Murphy Shank & Smith ispleased to welcome new employeesto their accounting firm.Hollie Johnson was hired asa manager. Johnson has workedin public accounting since 1998providing auditing and consultingservices to not-for-profit organizationsand governmental entities.She was graduated from AuburnUniversity and from UAB with aMAcc.John Schenk was hired as asenior accountant. He previouslyworked at an international publicaccounting firm and in the internalaudit department of propertyand casualty insurance company.Schenk was also graduated fromAuburn University.Leah LadnerLaurieLightcapRyan ZoghbyHollie JohnsonJohn SchenkHartmann, Blackmon & Kilgoreannounced that Melissa Thomasbecame an equity shareholder Melissain the firm on January 1. As Directorof Tax Services, Ms. Thomas oversees the firm'sThomastax planning and preparation services, which togetherrepresent a significant portion of HBK's practice. Herareas of specialization include strategic tax planningfor flow-through entities, litigation support servicesand tax compliance for non-profit organizations. Shehas a master of tax accounting from the University ofAlabama.Awards and New DesignationsBill Kleinschrodt, a senioraccountant with Wilkins MillerHieronymus, has successfullyearned designation of CertifiedValuation Analyst (CVA).Sarah Malcom, a forensicanalyst with Forensic/StrategicSolutions, is teaching fraudexamination in the Departmentof Accounting and Finance atthe University of Alabama atBirmingham (UAB). She joinedForensic/Strategic Solutionsafter receiving an MBA at UAB,where she previously obtaineda BS in accounting and criminalBillKleinschrodtSarah Malcomjustice. She also completed an academic concentrationin forensic accounting and IT auditing,during which she conducted thesis researchto determine the extent of occupational fraud inthe state of Alabama. Her manuscript was publishedin part by Fraud Magazine, a publicationof the Association of Certified Fraud Examiners.Malcolm was a recipient of the ASCPA EducationalFoundation scholarship.Community NewsSmith, Dukes & Buckalew has joined the BDOSeidman Alliance, a nationwide association of independently-ownedlocal and regional accounting,consulting and service firms with similar client servicegoals. As an independent member of the BDOSeidman Alliance, Smith, Dukes & Buckalew canexpand the services offered to clients by drawing onthe resources of BDO USA, LLP, one of the nation’sleading professional services firms, and other Alli-ance members. BDO USA serves clients through 40offices and more than 400 independent Alliance firmlocations nationwide. As an independent MemberFirm of BDO International Limited, BDO serves multinationalclients through a global network of 1,082 officesin 119 countries.The board of directors of the BusinessCouncil of Alabama haselected Carl T. Jamison, shareholderat JamisonMoneyFarmer,as first vice-chairman of the organization.In his capacity as firstvice chairman, Jamison has alsobeen elected the chairman ofCarl JamisonProgressPAC, the BCA's politicalaction committee. This is a one-year, volunteer, uncompensatedposition, which began January 1.As first vice-chairman, Jamison will play a keyrole in carrying out the mission of the BCA: to improveAlabama's business climate. He will workclosely with the chairman of the BCA as well as theother officers. Jamison will serve as chairman of theBCA in 2013.Jamison is a third-generation shareholder in thefirm, joining JMF in 1981 after completing his accountingdegree at the University of Alabama. Hebecame a shareholder in 1987.TaylorChandler, llC of Montgomery has mergedwith Davis & Lawless of Albany, Georgia. The newentity will operate as TaylorChandler and maintainboth offices. The firm has 30 professionals who willoffer core accounting and tax preparation in additionto other consulting and business advisory services.Jackson Thornton Technologies has beenawarded IBM’s highest partnership level identification,IBM Premier Partner. The designation is reservedfor the top 10% of IBM Business Partnerswho have achieved high standards in technical expertiseand customer satisfaction.JamisonMoneyFarmer Supports“Paint the Town Red for Fuller” for Children’s HospitalFuller Goldsmith is 8 years old, the son of JMF shareholderScott Goldsmith. He was diagnosed with AcuteLymphocytic Leukemia (ALL) in 2007. After his diagnosis,the Goldsmiths established a fund to support Children'sHospital and the many other children who, like Fuller, arehelped by their caring hands.“Paint the Town Red for Fuller” was a display of red bowson trees at the JMF parking lot, purchased for a donation of$10 each, to raise funds for Children’s Hospital."I was excited about the response from our staff forFuller's bows", said Stacie Kirkland, CPA at the firm andorganizer of this event. "We have purchased 205 bows intotal. That is $2,050 to Children's Hospital from our staffalone. We hope many others will join us throughout thestate in supporting the premier medial facility for Alabama’schildren."6 The ALABAMA CPA MAGAZINE


ANNual MeeTING CoNNeCTIon93rd Annual MeetingThe biggest day onthe asCPA calendar.Professional golfer Hubert Green withExceptional Foundation participants in 2011.Charity GolfTournamentis on its way!Join Alabama Young CPAs at the RobertTrent Jones Oxmoor Valley courses onJune 6, 2012 for a full day of networking,lunch, meeting sponsors and, oh yes, GOLFING!Thanks to the generous support of PAN-GEATWO and its president, Jody Jones, thetournament has netted more than $120,000in the last four years. The funds are sharedequally between The Exceptional Foundationand the Society’s Educational Foundation.The Exceptional Foundation of Homewoodprovides social growth and recreational opportunitiesto improve the quality of life fortheir clients. The ASCPA Educational Foundationoffers scholarships to fourth and fifthyear accounting students at 23 accreditedaccounting programs in Alabama. This yearthe Foundation will also award four Diversityin Accounting scholarships and two FinancialHardship scholarships. Your support results inchanged lives through two quite different avenues!Registrations for both teams and sponsorshipsare available on the ASCPA website,www.ascpa.org. Want to know how sponsorshipcan benefit your organization? Ask ITACSolutions, Platinum Sponsor in 2011 and2012, or Advantage Payroll, Gold Sponsor forthe last four years. They know that networkingwith CPAs improves their bottom lines!For more information call Amanda Freemanat the ASCPA, 334.386.5751, afreeman@ascpa.orgor Kelley Campbell at PANGEATWO,205.444.0080, kcampbell@pangeatwo.com.7:00 am - 8:00 amChair’s Breakfast / Trade Show opens8:00 am - 12:00 pmSession AAccounting and Auditing UpdateJames D. Martin, CPASession BTax Planning for the High Net WorthIndividual, COD Tax Planning and Hot SCorporation TopicsCraig M. Stephens, Esq., Donald E. Johnson, Esq.,Bradley J. Sklar, Esq.12:00 pm – 1:30 pmLuncheon and Annual Business MeetingGreg Anton, CPA, AICPA ChairPresentation of Awards and Installation ofOfficers1:30 pm – 5:00 pmSession CIFRS and Private Company StandardsUpdateDr. Hubert D. Glover, CRISC, CIA, CMA, CPASession DTechnology You Should Know, TechnologyYou Can Use, Document CollaborationLaura Rogers – SharePoint 911Gadgets and Apps, ASCPA IT Task ForceThe Benefits of VirtualizationMark Carter – Mark L. Carter & AssociatesSession EYoung CPAs – Investments for the YoungProfessionalJohn Ray, Merrill LynchPlease visit with vendors during breakfast, and at the 10:00 and 3:00 pm breaks. Don’t forgetto drop your business cards for door prize give-aways! Door prizes will be drawn at the 3:00 pmbreak.Annual Meeting fee is $160 for early birds, $185 standard fee.Go to the ASCPA website to register, www.ascpa.orgThe ALABAMA CPA MAGAZINE 7


Creatinga NewWorldwideDesignationto Meet theChallengesof GlobalBusinessA Q&AwithBarry C. Melancon,cpa, cgmaandCharles Tilley,fcma, cgmaAnew designation, the Chartered Global ManagementAccountant (CGMA), was launched around the world onJanuary 31, 2012 through a joint venture of the AmericanInstitute of CPAs (AICPA) and the Chartered Institute of ManagementAccountants (CIMA). The CGMA is a new global designation thatrecognizes CPAs working in a range of management accountingroles in businesses, industries and governments worldwide. Thosewith the new designation play a critical role in helping organizationsof all sizes achieve sustainable business success. Managementaccountants, in today’s ever-more complex business environment,have greatly expanded their roles as business partners and musthave the ability to synthesize and interpret a wide range of nonfinancialand financial information. The CGMA signals to employersthat the designee has built upon core financial expertise andbusiness acumen and is committed to continually developing hisor her management accounting competencies.CGMA designation-holders have access to a new resource-richwebsite, www.cgma.org, featuring a global online community ofpeers, thought leadership papers, practical business tools, CGMAMagazine and Newsletter and other resources to help them stayup-to-date on important professional issues, drive critical businessdecisions at their organizations and chart the best course to meettheir professional objectives.AICPA President and CEO Barry Melancon, CPA, CGMA andCIMA chief executive Charles Tilley, FCMA, CGMA—a formerLondon partner of KPMG and Group Finance Director ofinvestment banks Hambros PLC and Granville Baird—discuss thenew designation, its development and the role of managementaccountants in the following interview.Why have the AICPA and CIMA created the CGMA designation?[Barry C. Melancon]: Combining the AICPA’s expertisewith CIMA’s more than 90 years of management accountingleadership is an effective way to create value for our members.For our 140,000-plus members who work in business, industry andgovernment, the CGMA will complement their U.S. CPA and willelevate their value to their employers. The CGMA is poised to bethe global designation for management accounting, and this jointventure with CIMA further enhances the position of the U.S. CPAas a worldwide leader.[Charles Tilley]: We are here to help people and organizationsbe successful by creating a global standard for managementaccountants. At the same time we’re bringing our resourcestogether—our intellectual property and our people―and I’m quiteconvinced that one plus one will equal more than two. Whatwe’re doing is we’re bringing together two large communities ofpeople—CIMA’S 183,000 members and students and the AICPA’scollective 370,000 membership—together, we are over half a millionprofessionals focused upon driving successful organizations.AICPA members are particularly interested in the AICPA’sadvocacy efforts. Can you talk about how advocacy playsinto the AICPA-CIMA joint venture?[Melancon]: The AICPA and the state CPA societies have beenextraordinarily effective in influencing legislation on both the stateand federal levels. We want to extend our impact even further.8TheTheALABAMAALABAMACPACPAMAGAZINEMAGAZINE


Increasingly, international rule-makers and regulators have anindirect impact on the U.S. This was most recently evidencedby the PCAOB’s concept release which, if adopted, wouldmandate auditor rotation. That issue was also raised last yearby the European Commission. In such areas and so muchmore, the U.S. CPA will benefit by the joint venture leveragingAICPA’s and CIMA’s combined global footprint to advocate forand on behalf of the U.S. CPA anywhere in the world as well askey public interest issues. Through the combined voice of theworld’s two leading accountancy organizations, we will have avery important voice on the global stage to proactively addressthe critical issues for our profession and the public.What would you say to both CIMA members and CPAs inmanagement accounting about why they should pursuethe CGMA designation?[Tilley]: When you have the CGMA designation, you are tellingyour employer and others that you understand the language ofbusiness from multiple perspectives and know how to connectthe dots like no other financial professional. For those of uselsewhere in the accounting world, we know that as a U.S. CPAyou will have committed to developing and maintaining yourskills, your ethical standards and your integrity. The CGMA willexpand these to include the additional and specialized skillsand standards you need in business, industry and governmentand will show that you are an experienced business partner whocan help drive organizational success.[Melancon]: We envision the CGMA as a new type ofdesignation that remains focused on a constantly changing world.Demographers tell us that young professionals, particularly indeveloped economies, will have multiple careers and differentopportunities in their lives. For some it will be physical relocationand for others changes in job classification. For our youngprofessionals now in business, industry or government, or whostart their career in public practice, this is a designation that willevolve with them throughout their professional lives, creatingvalue for members and their employers and, ultimately, creatingvalue for the people who use the services CGMAs provide. ForCPAs in business and industry who for years have asked foradditional support in underscoring their value and contributionin the business world, this designation and its associatedresources is a long-sought solution.How will businesses benefit from the CGMA?[Tilley]: These days, it doesn’t matter if yours is the smallestorganization in the world, you can still be selling anywhere else inthe world through the Internet. As a result, global standards andprinciples are really important. Through CGMA, we’re offeringglobal recognition of a standard of management accounting,a standard of our members’ skills and expertise. A number ofCIMA case studies make it clear that this is what employerswant. For example, Shell wants a global standard so that whenthey move their management accountants around the world,they know those people have the same skills and standards.The CGMA proposition includes a virtual network where peoplecan share problems and issues. The best people to answer yourproblems are people who have done the same thing and havemanaged to crack that particular problem.[Melancon]: The role of the management accountant isfrequently underestimated; it is much more than a simpleaccounting commodity. Management accountants can be foundat every level of an organization and are at the center of a forwardlookingdiscipline combining both accounting and businessexpertise. The CGMA is a single designation that benefits largeand small, public and private employers across the globe.Business owners and decision makers will confidently recognizethe CPA-CGMA designation-holder as a highly skilled businessstrategist, who can be trusted to guide critical business decisionsand drive strong and sustainable performance anywhere in theworld.What is your vision of the future and what does successlook like?[Melancon]: We say the CPA is the trusted business advisorand 50 percent of the CPA population works in business, industryand government. Some of them are in the C-suite, but even ifthey’re not, a very important aspect of their skill set is being atthe decision-making table. We see a group of people who bringtrusted information and thinking into that process. The future isyou—the trusted business strategist—being recognized for yourability to critically look at opportunities, to think differently andbroadly, and bringing the discipline, ethics, commitment andcompetencies to that decision-making table.[Tilley]: Success means widespread recognition of the valueof management accounting. So many organizations have madepoor decisions, mainly through a lack of information, analysis orproper thought. Management accounting ensures that externaland internal data are complete and properly analyzed; ensuringthat management and the boards can make decisions based upona complete set of information. We envision more organizations,both in the private and in the public sector, recognizing the valueof management accounting, what it brings to the quality of theirdecision-making and of their governance and oversight. As abenefit of the CGMA, the world will have better-run organizationsin both the private and the public sector.The CGMA is available to qualifying AICPA members. Membersof the [your state CPA society] who are also members of theAICPA can save $50 off the annual CGMA registration fee. Formore information about the CGMA, visit www.cgma.org.TheTheALABAMAALABAMACPACPAMAGAZINEMAGAZINE 9


Chapter ROUNDUPThis Deserves a Big Hand.Tax Hotlines top 1200 calls!It’s the most visible outreach program of the ASCPA’s calendar – Tax Hotlines atthree television stations around the state. The ASCPA owes a huge thank you tostaff at WBRC (Birmingham), WSFA (Montgomery) and WKRG (Mobile) formaking members welcome and for their excellent promotion of the events.But it is the volunteers themselves, fielding the third call from someonewith a family member in prison (thank you, Buzz Coons), who were thereal heroes of the night. Thanks to Beth Arnett and Lamar Reeves foracting as site coordinators.BIRMINGHAMKate FlukerMark UnderhillTom ZoebeleinBuzz CoonsSteve EmersonDelphine FordBill TrudeauBeth Arnett**MOBILERonnie SmithJohn BedsoleGina McKellarTim AdamsKathryn BradleyJason TaylorLaurie LightcapRyan ZoghbyMark HieronymusLamar Reeves**MONTGOMERYKelly ReynoldsCrystal SmithPat ScottRebecca GrahamWill JonesRobert MillerWillis TeelRichard YoungerCallis CagleCliff JacksonNikki Darley10 The ALABAMA CPA MAGAZINE


FoRTune FoRWARDPaying It ForwardWhy We Support the Fortune Forward CampaignBy Ned Sheffield, CPAManaging Principal, Jackson ThorntonJackson Thornton is pleased to contributethe inaugural article in this serieswritten by lead contributors in theFortune Forward campaign. For us, the decisionto participate in the campaign cameafter much discussion - and even more reflection- on where we’ve been and wherewe’re going as a Firm and as a profession.You’ve often heard that things are onlyas good as the sum of their parts. In ourcase, we believe our most important andcrucial “parts” are our people. For 93years, Jackson Thornton has continuedto build on the idea that hiring and retainingthe best and the brightest makes morethan just good business sense. It’s goodfor the communities in which we practiceand it’s good for the profession.Our people are the key to our growth,plain and simple. Finding people with theright combination of intellect, personality,integrity and common sense is no smalltask for any CPA firm – large or small. Wetruly appreciate the contributions our employeesmake and do not take lightly thevalue our clients place on their relationshipswith their Jackson Thornton CPAs.A very important component of JacksonThornton’s success through the years hasbeen the ability to attract top graduatesfrom a variety of Alabama colleges anduniversities. We continue to be impressedwith the caliber of the accounting studentswe meet. From our standpoint, anythingwe can do to continue to encourage youngpeople to pursue degrees in accountingand facilitate the education of worthy accountingstudents is money well spent.“As a recipient of a Jackson Thorntonscholarship, I gained more than just financialsupport during my graduate schoolstudies. Having the support of JacksonThornton during that time also gave meadditional confidence in my chosen careerpath and the motivation to push through.I am very grateful for the opportunity thatwas given to me and for their continuedsupport throughout my college career,”said Ryan Holubik, recipient of a Firmscholarship and Troy University MBA graduate.Holubik accepted a staff accountantposition with Jackson Thornton in 2011and recently passed her CPA exam.Our participation in Fortune Forward isnot only good for the Firm – it’s good forthe profession. Jackson Thornton is approachingour 100th year as an AlabamabasedCPA firm. We feel it is our responsibilityto play a part in helping the ASCPAEducational Foundation positively impactthe future of the profession of accountancy.The challenges facing our young CPAsare more complicated than ever – both financiallyand professionally. Anything thatwe can do to help pay it forward is just theright thing to do.______Jackson Thornton is one of six organizationswhich made a $50,000 pledge to the 2011Fortune Forward capital campaign. Theircontribution resulted in a named scholarship,the ASCPA Educational Foundation/Jackson Thornton Scholarship, which willbe awarded to an Auburn University studentfor the 2012/2013 academic year. TheBoard of trustees of the Educational Foundationis grateful for the vision and commitmentof the contributors.Don’t take a chance with your payroll...There’s no need to withAdvantage on your side!We offer a great serviceat an affordable price.Call TODAY!In MemoRIAMOTIS Ray LeeTuscaloosa, AlabamaAugust 24, 1937 – December 27, 2011Certificate #676Visit www.advantageal.com or call (205) 870-0605The ALABAMA CPA MAGAZINE 11


2012 ASCPA Women’s SuMMITChocolate, shoes and motivation?Sounds like heaven ••••If it’s Spring, it must be time for theASCPA’s annual Women’s Summit. In itsfourth year, the conference offers a fullday of CPE wrapped like a Godiva confection.And chocolate is definitely a topic ofconversation this year, with the return of DeniseRyan of Fire Star discussing Motivationby Chocolate. Ryan will keep you engagedwith her dynamic style and interactive presentation.During the noon luncheon, the Womento Watch Awards will be announced. TheASCPA is proud to be one of fifteen statesnationwide who participates in this AICPAprogram recognizing outstanding womenCPAs. Last year’s honorees were Karen(Arthur) Moore of Pearce Bevill Leesburg& Moore as Emerging Leader and MarleneMcCain of Warren Averett as ExperiencedLeader. The Women’s Summit is actuallyMs. McCain’s brainchild, begun during hertenure as Alabama Society chair.Following the luncheon (and some shoppingin the Galleria) Genevia Gee Fulbright,CPA asks the question “Why Do I Need aPersonal Business Plan?”. The Durham,North Carolina-based entrepreneur willchallenge you to get off the hamster wheeland reach beyond yourself both personallyand professionally. She has more than 20years’ experience providing financial servicesand is currently vice-president and COOof Fulbright and Fulbright, CPAs.Concluding the day’s program is theHonorable Sue Bell Cobb, former ChiefJustice of the Alabama Supreme Court.Ms. Cobb retired from the Court in August2011, and will send attendees out the doorwith some thoughts about realizing your fullpotential, about reaching beyond everydayconcerns and giving back, and about maintainingperspective when pulled in many differentdirections.Join with your CPA sisters and treatyourself to a day like none other in the Society’scalendar. There will be door prizes,amazing vendors and a chance to truly relaxand network. The Summit is supported byMerrill Lynch (Gold Sponsor), Becker ProfessionalReview (Silver Sponsor) and L. Kianoff& Associates (Bronze Sponsor).The conference fee is $165 when you takeadvantage of the early bird discount and registerby April 30th. Registration is availableon the ASCPA website, www.ascpa.org.ASCPA Clusters at Gulf ShoresSeriously fun continuing education.1. Initial Discovery2. Preliminary Data Review3. Income Protection Analysis4. Income Protection Audit Report5. The Prudent Choice6. The Reliable RelationshipClick on Continuing Professional Education/Conferences/Women’s Summit. Bring afriend, a colleague, or the whole office!It’s the unofficial start of CPE for our members, the annual trek to beautiful Gulf Shores.With the advent of cluster classes, offering two days of 8 hour seminars and two daysof 4 hours each morning and afternoon, Gulf Shores now offers the most flexibility of anyofferings. The setting is inspiring and the discussion leaders among the ASCPA’s best.Check on specific topics and fees on the website, www.ascpa.org.Live Free.Live Secure.Live Happy.12 The ALABAMA CPA MAGAZINE


We Welcome NEW CPAsMary Rachel Aaron, VancePurnima Agrawal, MobileKarlie Marie Alfano, HuntsvilleChristina Kay Allen West Point, GAJames Gardner Bell, BirminghamJasmine Michelle Bolden, HooverSara Helen Boohaker, BirminghamMari Joyel Brill, MadisonPhilip Mark Calagaz, VestaviaAshley Brock Caldwell, BirminghamMichelle Nicole Carter, HooverJoel Mark Cash, BirminghamJames Lee Cason, III, SterrettBrianne Crowe Colburn, MontevalloThomas Floyd Collins, Jr., FayetteTyler Van Cooper Valley, HeadAmanda Leigh Crawford, EnterpriseLeland Patrick Cummings, GardendaleStephen Matthew Cutter, HuntsvilleIan E. Davey, BirminghamJennifer Lynn Davis, Tampa, FLtiffany Lynn Ergle, BirminghamAmy Marie Gibson, BirminghamCaitlin F. Glass, HelenaSarah Guthrie Hadzor, HomewoodThomas George Hallin, MadisonJennifer Lynn Hand, AlabasterSimonia Harris, BirminghamShaun Anthony Hays, BirminghamHope Hickman, FairhopeBancroft Brooks Hieronymous, MobileJames Paul Higdon, RainsvilleHarry Baker Hodgers, HomewoodPaul Andrew Holden, Santa Rosa Beach, FLJordan Michael Johnson, TuscaloosaCrystal Centria Jones, MontgomeryStaci Yannielli Kelley, DeatsvilleRobert Harrison Kimbrough III, OxfordAngela Marie King, ArabDavid Kent Krupicka, BirminghamMelissa Dawn Lafrenier, TheodoreGordon Clayton Lehman, MobileLauren Horn Leon, AuburnJohn Michael Machen, TrussvilleLeeann McKenzie May, DaphneCarter Woodrow McLean, BirminghamHaley Brooks Miles, TuscaloosaJoshua Scott Peden, AtmoreKarli Ila Reinemer, Ft. RuckerSarah Elizabeth Robinson, NorthportNickalena Rose, GenevaAdam James Salvador, Panama City, FLLeah Lindsey Satcher, BirminghamMeredith Claire Scott, HomewoodChristopher Ray Smith, BirminghamCasey Michelle Snider Denson, BirminghamMatthew Jordan Stringer, Spanish FortMaxwell David, BirminghamJames Robewrt Thomas, AthensTHRIVES LOCALLY::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::We’re committed to helping thecommunity and everyone wholives here achieve more than ever.That’s why we’re proud to supportthe Alabama Society of CPAs.Visit us online at pnc.com::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::Graham Richard Travers, AshvilleBenjamin Michael Treadwell, HooverStefani Kay Tyler, Mount OlivePaula Luzzelle Waldo, MobileJacob Grant Williams, HooverClaude Hampton Willis, BirminghamEric Randolph Windsor, Jr., PinsonJames William Winshon III, MobileAbner Benjamin Young, Opp©2012 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC.ACHIEVEMENT is a registered mark of The PNC Financial Services Group, Inc. COMMSERV AD JUN 2010 011The ALABAMA CPA MAGAZINE 13


C P E C a l e N D A R 2 0 1 2Field of early Bird *Registration Non-MemberNo. Date(s) Study Title Location Member Fee Fee Add-On065 8/3/12 AA Annual Auditing Update Mobile-PM $155 180 $50066 8/3/12 Tax Key Individual Tax Planning Strategies: Reviewing the 1040 Tax Return Mobile-PM $155 180 $50067* 8/2/12 Tax 49 Tax-Cutting Moves for Individuals Montgomery $250 $275 $50068 8/2/12 Other Technology Update for CPAs Montgomery $250 $275 $50069 8/3/12 Other Technology Update for CPAs Tuscaloosa $250 $275 $50070 8/3/12 Tax Make Money for Your Clients: Surgent McCoy’s Top Business Tax Planning Strategies Tuscaloosa $250 $275 $50071 8/6/11 Other Income Taxes for A&A People Who Hate Income Taxes Montgomery $250 $275 $50072* 8/6/12 Tax Private Foundations - Planning for Family Philanthropy Montgomery $250 $275 $50073 8/7/12 AA Accounting and Auditing Update for the Real World Birmingham $179 $204 $50074 8/7/12 AA Advanced Issues in Compilation, Review and Accounting Services Dothan-AM $155 180 $50075 8/7/12 Tax Tax Planning for Small Business Dothan-AM $155 180 $50076 8/7/12 AA Identifying and Communicating Internal Control Deficiencies Under SAS 115 Dothan-PM $155 180 $50077 8/7/12 Tax Individual Income Tax Update Dothan-PM $155 180 $50078 8/8/12 AA Accounting and Auditing Update Dothan-AM $155 180 $50079 8/8/12 Tax Partnership and LLC Taxation: Complex Concepts Facing Practitioners Dothan-AM $155 180 $50080 8/8/12 AA Annual Update for State and Local Governments and Not-for-Profits Dothan-PM $155 180 $50081 8/8/12 Tax Cutting Your Clients’ Tax Bill: 25 Tax-Smart Strategies for Practitioners Dothan-PM $155 180 $50(*) Asterisk indicates 8 hr AICPA seminar; take advantage of a $30 discount applied to the ASCPA fee if you are an AICPA member • ASCPA 4hr Clusters or CPE Value Seminars do not receive $30 discount.*Registration fee of $25 applies 10 calendar days before each event date. • New Courses are in BOLD typeNEW REGISTRATION FORMS AND ENTIRE CPE SCHEDULE AVAILABLE ON THE WEBSITE - WWW.ASCPA.ORG • Birmingham CPE Classes held at Pelham Civic ComplexThe 6 Biggest Trends inSustainability ReportingContinued from page 5to investors – are of growing concern to executives.As sustainability performance becomes1) a greater shareholder concern (in aseparate report, E&Y noted a rise in so-calledESG – environment, social, governance – demandsamong shareholders, 2) a benchmarkfor employee attraction and retention, and 3) ageneral staple of the corporate vocabulary, it'sperhaps unsurprising that companies increasinglyvalue such investor-related reputationalreferees as the Dow Jones Sustainability Indexor the CDP.Coming Consumer ReferendumWhat the survey doesn't explicitly revealbut may likely to emerge as the sustainabilitysleeping giant is a "consumer awakening" saysCarrel.The business challenge of the future willcome once consumers begin more actively incorporatingsustainability knowledge into buyingpractices.He adds that consumers will likely promptchange in companies across industries – notjust manufacturers, but also the service sector– that include practices "currently hardwired intothe supply chain that just won't fly anymore."____Ann Goodman, Ph.D., an experton business and sustainability,as an executive, socialentrepreneur, communicator,commentator and educator,is president of Telesys, a strategicsustainability consultingfirm based in New York City.Mail form to :ASCPAP.O. Box 242987Montgomery, AL 36124-2987REGISTRANT INFORMATIONCourseDateASCPA Continuing Professional Education Registration FormFax form to :Sherry Russ334.834.7310Scan/email to: sruss@ascpa.orgLast Name First Name M.I.Firm / EmployerAddressCity State ZipBusiness PhoneEmail Address (for registration confirmation)Register online at:www.ascpa.org*CPAs who are members of the ASCPA may register at the member rate. CPAs who are not a member of the ASCPA or other StateSociety may register at the Non-Member rate. Please include the appropriate discount(s) when registering for events.CPAs who are members of the AICPA may deduct $30 from AICPA seminars ONLY (8 hrs classes). (These are identified in the CPESchedule online or in the ASCPA newsletter).Check: I have enclosed a check payable to ASCPA in the amount of $ ___________I authorize the ASCPA to charge $ __________ to my credit card. Credit Card:  MC  Visa  Discover  AMEXCard Number Month Year Expiration Date________________________________________Print Cardholder’s NameAddress of cardholderCourse TitleBusiness FaxCheck if information has recently changed and needs to be updated in your member recordAre you a member of the AICPA? Yes No Member Number: ____________________ (Required for discount; subject to verification)How did you hear about this class? Email Newsletter Website Postcard/Special Mailing Other________________________________________________Cardholder’s SignatureCity, State, Zip of cardholderThe ALABAMA CPA MAGAZINE 15CourseNumberCourse FeeASCPA Non-Member MemberAICPA Discount*see note (whereapplicable)Total:ASCPA Member NumberState Certificate NumberPlease visit www.ascpa.org toview all registration policies,including information aboutcancellations and refunds.Please attach a description ofspecial requests or contact us at(334) 386-5764.VegetarianADA RequestBook Fee($20 percourse)Subtotal*Electronic course materials are included in the registration fee and will be emailed at least two weeks before the course date.You can choose to purchase a paper copy of the course materials for an additional fee of $20 per course.I acknowledge that I will receive course materials electronically (included in course fee).I would like to purchase my manual for $20 per class1/26/12


APRIL 2012The Alabama Society of CertifiedPublic Accountants1041 Longfield CourtP.O. Box 242987Montgomery, AL 36124Presorted StdUS PostagePAIDPermit No. 131Montgomery, ALAddress Service RequestedAlabama Taxpayers’ Bill ofRights II – Our Next Logical StepContinued from page 4dition of one year Alabama Law will conformto federal standard of three years.• Automatically nullifies any preliminary assessmentoutstanding more than five years forboth state and local jurisdictions, unless a finalassessment is entered by October 1, 2012.Taxpayers would also have the option to appealto ATAC any preliminary assessment thatis outstanding for three or more years.• Allows taxpayers to request an expeditedrevenue ruling by paying a fee of $3,000, requiringthe ADOR to issue a ruling within 30days or refund the filing fee.HB 105 is the culmination of years of hardwork by members of the business community,the Alabama State Bar, local government organizationsand members of the Alabama Societyof CPAs. Alabama has a rare opportunity,with the make-up of the present legislature,to pass TBOR II.I am making this a call to action to ourmembership: let your representatives knowthat the Alabama Society of CPAs is in supportof TBOR II and that its 6600 membersappreciate their assistance in passing HB 105.––––Tom Zoebelein is a self-described “tax geek”. Heserves as a tax manager at Pearce, Bevill, Leesburg,Moore P.C. where his principle area of practiceis tax research and planning for the firm’s clients,as well as providing tax audit support. He hasover 40 years’ experience, including twenty-eightyears in private industry heading the tax functionfor several of the largest privately-held Alabamacompanies. He has served on national tax committeesfor the timber and paper industries, AmericanMining Congress, National Coal Association, andAmerican Textile Manufacturers Association. Hehas authored several articles on taxation for TuscaloosaBusiness Ink and the Birmingham BusinessJournal. This article marks the first of a quarterlyseries on tax for the Alabama CPA Magazine andTuesday Bulletin.We’re all in this together.2012/13 dues notices go out via email in mid-April.Join us for another year of greateducation programs, advocacy,networking opportunities, andprofessional development.Pay online or mail your payment.www.ascpa.orgIs your cell phone number inthe ASCPA database? We willbegin sending text alerts fromthe Alabama Society soon.

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